Document:

Exhibit
10.1

 

SHARED
SERVICES AGREEMENT

 

THIS
SHARED SERVICES AGREEMENT (this “Agreement”) is made as of March 31, 2020 (the “Effective
Date”) by and between 1347 Property Insurance Holdings, Inc., a Delaware corporation (the “Company”),
and Fundamental Global Management, LLC, a Delaware limited liability company (the “FGM”). Each party
hereto shall be referred to as, individually, a “Party” and, collectively with each other Party, the
“Parties.”

 

WHEREAS,
the Company desires to engage FGM to provide the Services described herein, and FGM wishes to be engaged to provide such Services,
on the terms and subject to the conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements contained herein, and of
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally
bound hereby, the Parties hereto agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Section
1.1 Defined Terms. Except as otherwise noted, for all purposes of this Agreement, the following terms shall have the respective
meanings set forth in this Section 1.1, which meanings shall apply equally to the singular and plural forms of the terms so defined:

 

“Affiliate”
means, with respect to any Person, (i) any Person directly or indirectly controlling, controlled by or under common control with
such Person or (ii) any officer, director, general partner, managing member, manager or trustee of such Person. For purposes of
this definition, the terms “controlling,” “controlled by” or “under common control with” shall
mean, with respect to any Persons, the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, or the power to elect
at least 50% of the directors, general partners, managers or Persons exercising similar authority with respect to such Person.

 

“Agreement”
has the meaning set forth in the preamble of this Agreement.

 

“Automatic
Renewal Term” has the meaning set forth in Section 2.2 hereof.

 

“Board”
means, with respect to the Company, the Board of Directors of the Company, or any committee thereof that has been duly authorized
by the Board of Directors to make a decision on, or bind the Company, as to the matter in question.

 

“Business
Day” means any day other than a Saturday, a Sunday or a day on which banks in The City of New York are required,
permitted or authorized, by applicable law or executive order, to be closed for regular banking business.

 

“Direct
Expenses” has the meaning set forth in Section 7.2(a) hereof.

 

    	 

    	 

    

 

“Effective
Date” has the meaning set forth in the preamble of this Agreement.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Federal
Securities Laws” means, collectively, the Securities Act, the Exchange Act and the rules and regulations promulgated
thereunder.

 

“FGM”
has the meaning set forth in the preamble of this Agreement.

 

“Fiscal
Quarter” means the Company’s fiscal quarter for purposes of its reporting obligations under the Exchange Act.

 

“GAAP”
means generally accepted accounting principles in effect in the United States, consistently applied.

 

“Governing
Documents” means the Certificate of Incorporation and Bylaws of the Company, each as may be amended, revised, supplemented
or otherwise modified from time to time.

 

“Indebtedness”
means, with respect to any Person, (i) any liability for borrowed money, or under any reimbursement obligation relating to a letter
of credit, (ii) all indebtedness (including bond, note, debenture, purchase money obligation or similar instrument) for the acquisition
of any businesses, properties or assets of any kind (other than property, including inventory, and services purchased, trade payables,
other expenses accruals and deferred compensation items arising in the Ordinary Course of Business), (iii) all obligations under
leases that have been or should be, in accordance with GAAP, recorded as capital leases, (iv) any liabilities of others described
in the preceding clauses (i) to (iii) (inclusive) that such Person has guaranteed or that is otherwise its legal liability, and
(v) (without duplication) any amendment, supplement, modification, deferral, renewal, extension or refunding of any liability
of the types referred to in clauses (i) through (iv) above.

 

“Indemnitee”
has the meaning set forth in Section 9.1 hereof.

 

“Independent
Director” means a director who (i)(a) is not an officer or employee of the Company, or an officer, director or employee
of any of the Subsidiaries of the Company or their Subsidiaries, and (b) was not appointed as a director pursuant to the terms
of this Agreement, and (ii) satisfies the independence requirements under the Exchange Act and the rules and regulations of the
principal securities exchange on which the Company’s shares are traded.

 

“Initial
Term” has the meaning set forth in Section 2.2 hereof.

 

“Investment
Advisers Act” means the Investment Advisers Act of 1940, as amended.

 

“Investment
Company Act” means the Investment Company Act of 1940, as amended.

 

“Losses”
has the meaning set forth in Section 9.1 hereof.

 

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“Ordinary
Course of Business” means, with respect to any Person, an action taken by such Person if such action is (i) taken
in the normal day-to-day business or operations of such Person and (ii) which is not required to be specifically authorized or
approved by the board of directors of such Person.

 

“Party”
and “Parties” have the meaning set forth in the preamble of this Agreement.

 

“Person”
means an individual, a partnership, a joint venture, a corporation, an association, a joint stock company, a limited liability
company, a trust, an estate, a nominee, an unincorporated organization or a government or any department or agency or political
subdivision thereof.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Services”
has the meaning set forth in Section 3.1(a) hereof.

 

“Subsidiary”
means, with respect to the Company, any other Person in which the Company, directly or indirectly through one or more
Affiliates or otherwise, beneficially owns at least fifty percent (50%) of either the ownership interest (determined by equity
or economic interests) in, or the voting control of, such other Person.

 

“Termination
Fee” means, as of the date of termination, an amount equal to the sum of the aggregate Shared Services Fee paid
to FGM for the two Fiscal Quarters immediately preceding the date of termination.

 

“Wind-Down
Costs” has the meaning set forth in Section 8.4(c) hereof.

 

In
addition, the words “herein,” “hereof’ and “hereunder” and other words of similar import refer
to this Agreement as a whole and not to any particular Article, Section or other subdivision, and the words “includes”
or “including” shall be deemed to mean “includes” or “including without limitation.”

 

ARTICLE
II

ENGAGEMENT
OF FGM; TERM

 

Section
2.1 Engagement. The Company hereby engages FGM to perform the Services as set forth in Section 3.1 hereof, and FGM hereby
accepts such engagement, on the terms and subject to the conditions set forth herein.

 

Section
2.2 Term. This Agreement is effective as of the Effective Date and shall continue in operation, unless terminated in accordance
with the terms hereof, until the third (3rd) anniversary of the Effective Date (the “Initial Term”).
After the Initial Term, this Agreement shall be deemed renewed automatically each year for an additional one-year period (an “Automatic
Renewal Term”) unless terminated in accordance with the terms hereof.

 

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ARTICLE
III

OBLIGATIONS
OF THE PARTIES

 

Section
3.1 Obligations of FGM.

 

(a)
Subject to the oversight and supervision of the Board and the terms and conditions of this Agreement, FGM shall during the term
of this Agreement (including any Automatic Renewal Term) (i) perform the services as set forth in Schedule A hereto (collectively,
the “Services”) and (ii) comply with the provisions of the Governing Documents, as amended from time
to time, and the operational objectives and business plans of the Company in existence from time to time. The Company has, as
of the Effective Date, provided FGM with the Governing Documents, internal policies and all stated operational objectives and
business plans of the Company (and the Subsidiaries, as applicable) approved by the Board, and thereafter shall promptly provide
FGM with all amendments to the Governing Documents, internal policies and all stated operational objectives and business plans
of the Company (and the Subsidiaries, as applicable) approved by the Board and any other available information reasonably requested
by FGM in order to perform the Services.

 

(b)
In connection with the performance of its obligations under this Agreement, FGM shall be required to obtain authorization and
approval of the Company’s Board in accordance with the Company’s internal policies regarding action requiring Board
approval, as otherwise required by the Board (or any applicable committee thereof) or the Company’s officers, or as otherwise
required by applicable law.

 

(c)
In connection with the performance of the Services under this Agreement, FGM shall use reasonable efforts to comply with the Company’s
internal compliance policies and procedures.

 

(d)
In connection with the performance of its obligations under this Agreement, FGM is not permitted to, and nothing in this Agreement
shall require FGM to, engage in any activities that would cause it to become an “investment adviser” as defined in
Section 202(a)(11) of the Investment Advisers Act, or any successor provision thereto.

 

(e)
While FGM is providing the Services under this Agreement, FGM shall also be permitted to provide services, including services
similar to the Services covered hereby, to any other Persons, including any Affiliates of FGM, but FGM shall not render any services
to any other Person on behalf of the Company or the Subsidiaries except as may be directed by the Board. This Agreement and FGM’s
obligation to provide the Services under this Agreement shall not create an exclusive relationship between FGM and its Affiliates,
on the one hand, and the Company and the Subsidiaries, on the other.

 

Section
3.2 Obligations of the Company

 

(a)
The Company shall, and shall cause the Subsidiaries to, do all things reasonably necessary as requested by FGM consistent with
the terms of this Agreement to enable FGM to fulfill its obligations under this Agreement.

 

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(b)
The Company shall take reasonable steps to (i) direct its officers and employees to act in accordance with the terms of this Agreement
and the reasonable directions of FGM in fulfilling FGM’s obligations hereunder and allowing FGM to exercise its powers and
rights hereunder and (ii) provide to FGM all access, information and reports (including monthly management reports and all other
relevant reports), which FGM may reasonably require on such dates as FGM may reasonably require.

 

(c)
Without the prior written consent of FGM, the Company shall not amend any provision of the Governing Documents that adversely
affects the rights of FGM hereunder.

 

(d)
The Company agrees that, in connection with the performance by FGM of its obligations hereunder, FGM may recommend to the Company,
and may engage in, transactions with any of FGM’s Affiliates; provided, that any such transactions between the Company
and any of FGM’s Affiliates shall be subject to the authorization and approval of the Independent Directors.

 

(e)
The Company shall take any and all actions necessary to ensure that it does not engage in any activities that would cause the
Company to become an “investment company” as defined in Section 3(a)(1) of the Investment Company Act, or any successor
provision thereto, subject to any grace periods set forth therein.

 

Section
3.3 Other Activities and Competition.

 

(a)
Except to the extent otherwise agreed between FGM and the Company in writing, FGM, its members (including any natural persons)
and any of its Affiliates, agents, representatives or employees may engage in or possess an interest in other investments, business
ventures or entities of any nature or description, independently or with others, similar or dissimilar to, or that compete with,
the business of the Company or the Subsidiaries, and may provide advice and other assistance to any such investment, business
venture or entity, and the Company shall have no rights by virtue of this Agreement in and to such investments, business ventures
or entities or the income or profits derived therefrom, and the pursuit of any such investment or venture, even if competitive
with the business of the Company or the Subsidiaries, shall not be deemed wrongful or improper. None of FGM, its members or any
of its Affiliates, agents, representatives or employees shall be obligated to present any particular investment or business opportunity
to the Company even if such opportunity is of a character that, if presented to the Company, could be taken by the Company or
its Subsidiaries, and FGM, its members or any of its Affiliates, agents, representatives or employees shall have the right to
take for its own account (individually or as a partner or fiduciary) or to recommend to others any such particular investment
or business opportunity. While information and recommendations supplied to the Company and the Subsidiaries shall, in FGM’s
reasonable and good faith judgment, be appropriate under the circumstances and in light of the policies of the Company and the
Subsidiaries, such information and recommendations may be different in certain material respects from the information and recommendations
supplied by FGM or any Affiliate of FGM to others.

 

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(b)
The Company acknowledges and agrees that (i) personnel and members of FGM and its Affiliates may work on other projects and matters,
and that conflicts may arise with respect to the allocation of personnel and (ii) there may be circumstances where FGM and/or
its personnel and members acquire knowledge of a corporate opportunity of the Company or the Subsidiaries and FGM, its personnel,
members and/or its Affiliates, and such corporate opportunity may be pursued by FGM, its personnel, members and/or its Affiliates
or shared with other parties (in lieu of the Company or the Subsidiaries).

 

Section
3.4 Change of Services.

 

(a)
The Company and FGM shall have the right at any time during the term of this Agreement (including any Automatic Renewal Term)
to jointly agree to change the Services provided by FGM.

 

(b)
Any change in the Services shall be authorized in writing and evidenced by an amendment to this Agreement, as provided in Section
12.9 hereof. Unless otherwise agreed in writing, the provisions of this Agreement shall apply to all changes in the Services.

 

ARTICLE
IV

POWERS
OF FGM

 

Section
4.1 Powers of FGM.

 

(a)
FGM shall, subject to the oversight and supervision of the Board and the terms and conditions of this Agreement, have the power
and obligation to perform the Services for and on behalf of the Company, with all such powers as may reasonably be incident to
such responsibilities. FGM shall also perform such other duties and may exercise such other powers as from time to time may be
assigned to FGM by the Board.

 

(b)
Notwithstanding anything to the contrary set forth herein and except as such authority is provided to FGM by the Board or a committee
thereof, FGM shall have no power to enter into any contract for or on behalf of the Company or otherwise subject it to any obligation,
such power to be the sole right and obligation of the Company, acting through its Board and/or the officers of the Company.

 

(c)
Subject to Section 4.2 and for purposes other than to delegate its duties and powers to perform the Services hereunder, FGM shall
have the power to engage agents, consultants, contractors and advisors (including accounting, financial, tax and legal advisors)
that it deems necessary or desirable in connection with the performance of its obligations hereunder, which costs therefor shall
be subject to reimbursement or direct payment by the Company in accordance with Section 7.2 hereof. For the avoidance of doubt,
FGM may not engage investment advisers on behalf of the Company or the Subsidiaries unless such authority is provided to FGM by
the Board or a committee thereof.

 

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Section
4.2 Delegation. FGM may delegate or appoint one or more other Persons, which may or may not be Affiliates of FGM, as its agent,
to perform any or all of the Services hereunder; provided, however, that, if such agent is not an Affiliate of FGM, those
Services shall not be critical to the ability of FGM to satisfy its obligations hereunder, as determined in the sole discretion
of FGM; provided, further, that, in each case, FGM shall not be relieved of any of its obligations or duties owed to the
Company or the Subsidiaries hereunder as a result of such delegation. FGM shall be permitted to share information of the Company
and the Subsidiaries with its appointed agents subject to appropriate confidentiality arrangements. For the avoidance of doubt,
any reference to FGM herein shall include its delegates or appointees pursuant to this Section 4.2.

 

ARTICLE
V

INSPECTION
OF RECORDS

 

Section
5.1 Books and Records of the Company. At reasonable times and on reasonable notice, FGM and any Person authorized by FGM shall
have access to, and the right to inspect, for any reasonable purpose, during the term of this Agreement (including any Automatic
Renewal Term) and for a period of three (3) years after termination hereof, the books, records and data stored in computers and
all documentation of the Company and the Subsidiaries pertaining to all Services performed by FGM or the Shared Services Fee,
Direct Expenses to be paid by the Company to FGM, in each case, hereunder. There shall be no cost or expense charged by any Party
to another Party pursuant to the exercise of rights under this Section 5.1.

 

ARTICLE
VI

REPRESENTATIONS
OF THE COMPANY

AND
FGM AS TO AUTHORITY

 

Section
6.1 Representations as to Authority. Each Party represents to the other that it is duly authorized with full power and authority
to execute, deliver and perform its obligations and duties under this Agreement. The Company represents that the engagement of
FGM has been duly authorized by the Board and is in accordance with the Governing Documents of the Company.

 

ARTICLE
VII

SHARED
SERVICES FEE; DIRECT EXPENSES

 

Section
7.1 Shared Services Fee. Subject to the terms and conditions set forth in this Section 7.1, for the term of this Agreement,
including any Automatic Renewal Term, the Company shall pay FGM a shared services fee for the Services provided under this Agreement
equal to $456,250 for each Fiscal Quarter (or $1,825,000 on an annual basis) (the “Shared Services Fee”)
within 10 days following the beginning of each Fiscal Quarter.

 

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Section
7.2 Reimbursement of Expenses.

 

(a)
Subject in all respects to the Company’s Expenditure and Contract Authorization Matrix, as reviewed and approved by the
Board from time to time (the “Authority Matrix”), the Company shall reimburse FGM for the following
amounts that are actually incurred by FGM during the term of this Agreement in connection with the performance of the Services
(collectively, the “Direct Expenses”) or timely pay said Direct Expenses directly upon prior agreement
of the Company:

 

(i)
costs of legal, tax, accounting, consulting, auditing, administrative and other similar services rendered for the Company and
the Subsidiaries by providers retained by FGM;

 

(ii)
the cost of liability insurance to indemnify the Company’s directors and officers;

 

(iii)
costs associated with the establishment and maintenance of any of the Company’s or any Subsidiary’s credit or other
indebtedness of the Company or any Subsidiary (including commitment fees, accounting fees, legal fees, closing and other similar
costs) or any of the Company’s or any Subsidiary’s securities offerings;

 

(iv)
expenses connected with communications to holders of the Company’s or any Subsidiary’s securities and other bookkeeping
and clerical work necessary in maintaining relations with holders of such securities and in complying with the continuous reporting
and other requirements of governmental bodies or agencies, including all costs of preparing and filing required reports with the
Securities and Exchange Commission, the costs payable by the Company to any transfer agent and registrar in connection with the
listing and/or trading of the Company’s stock on any exchange, the fees payable by the Company to any such exchange in connection
with its listing, costs of preparing, printing and mailing the Company’s annual report to its stockholders and proxy materials
with respect to any meeting of the Company’s stockholders;

 

(v)
costs associated with any computer software or hardware, electronic equipment or purchased information technology services from
third party vendors that is used by the Company and/or the Subsidiaries;

 

(vi)
expenses incurred by managers, officers, personnel and agents of FGM for travel on the Company’s or any Subsidiary’s
behalf and other out-of-pocket expenses incurred by managers, officers, personnel and agents of FGM while providing the Services;

 

(vii)
the costs of maintaining compliance with all U.S. federal, state and local rules and regulations or those of any other regulatory
agency;

 

(viii)
license fees;

 

(ix)
all insurance costs incurred in connection with the operation of the Company’s and the Subsidiaries’ business, including
for the costs attributable to the insurance that FGM elects to carry or incur for itself and its personnel related to the provision
of Services;

 

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(x)
expenses relating to any office(s) or office facilities, including, but not limited to disaster backup recovery sites and facilities,
maintained for the Company and the Subsidiaries separate from the office or offices of FGM;

 

(xi)
expenses connected with the payments of interest, dividends or distributions in cash or any other form authorized or caused to
be made by the Board to or on account of holders of the Company’s or any Subsidiary’s securities, including in connection
with any dividend reinvestment plan;

 

(xii)
any judgment or settlement of pending or threatened proceedings (whether civil, criminal or otherwise) against the Company or
any of the Subsidiaries, or against any trustee, director, partner, member or officer of the Company or of any of the Subsidiaries
in his, her or its capacity as such for which the Company or any of the Subsidiaries is required to indemnify such Person by any
court or governmental agency; and

 

(xiii)
all other expenses actually incurred by FGM which are reasonably necessary for, or incurred in connection with, the performance
by FGM of its duties and functions under this Agreement.

 

In
the event any Direct Expenses are not within the limitations set forth in the Authority Matrix, the reimbursement of any such
Direct Expenses shall be subject to the prior approval of the Company’s Compensation Committee.

 

(b)
Prior to the Effective Date, FGM has provided the Compensation Committee with complete records regarding the Direct Expenses incurred
on behalf of the Company for the period from January 1, 2020 to, but excluding, the Effective Date (the “Pre-Effective
Date Direct Expenses”). Within ten Business Days following the Effective Date, the Company shall pay FGM an amount
equal to the Pre-Effective Date Direct Expenses.

 

(c)
Any Direct Expenses reimbursement required to be made in accordance with this Section 7.2 shall be made promptly (an in any event
within thirty (30) days) after the approval of the Compensation Committee, if required, and the delivery of supporting documentation,
in U.S. dollars by wire transfer in immediately available funds to an account or accounts designated by FGM from time to time.
FGM shall maintain cumulative books and records with respect to the details of any calculations made pursuant to this Section
7.2, which records shall be available for inspection and reproduction at any time upon request by the Board or the Compensation
Committee, including pursuant to the reviews provided for in Section 7.2(d).

 

(d)
Except as otherwise provided for in this Section 7.2, all reimbursements made pursuant to this Section 7.2 shall, at least annually,
be reviewed by the Company’s Compensation Committee in connection with the preparation of the Company’s quarterly
and year-end consolidated financial statements. If the Company’s Compensation Committee identifies any discrepancy in such
reimbursements, then the Company’s Compensation Committee, on behalf of the Company, and FGM shall mutually resolve such
discrepancy.

 

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(e)
Nothing herein shall obligate FGM to advance any Direct Expenses on behalf of the Company.

 

ARTICLE
VIII

TERMINATION

 

Section
8.1 Termination by FGM. FGM may resign and terminate this Agreement at any time with 120 days’ prior written notice
to the Company of FGM’s intention to terminate this Agreement, which right shall not be contingent upon the finding of a
replacement service provider. However, if FGM resigns, until the date upon which the resignation becomes effective, FGM shall,
upon request of the Board, use reasonable efforts to assist the Board to find a replacement service provider.

 

Section
8.2 Termination by the Company.

 

(a)
The Company’s Board may terminate this Agreement and FGM’s appointment only at the end of the Initial Term or at the
end of any Automatic Renewal Term with 120 days’ prior written notice if, at any time, the Independent Directors of the
Company’s Board unanimously vote to terminate this Agreement. For the avoidance of doubt, the Initial Term or subsequent
Automatic Renewal Terms will automatically renew at the end of Initial Term or each such Automatic Renewal Term (as applicable)
unless the Agreement is terminated as described in this Section 8.2(a) or Section 8.1.

 

(b)
The Company’s Board, by unanimous vote of its Independent Directors, may terminate this Agreement and FGM’s appointment
with immediate effect by written notice if, at any time:

 

(i)
(x) FGM materially breached the terms of this Agreement and such breach continued unremedied for sixty (60) days after FGM receives
written notice from the Company setting forth the terms of such breach or (y) FGM (A) acted with gross negligence, willful misconduct,
or bad faith in performing its duties and obligations under this Agreement or (B) engaged in fraudulent or dishonest acts in connection
with the business or operations of the Company; or

 

(ii)
FGM has been convicted of a felony under federal or state law.

 

Section
8.3 Directions. After a written notice of termination has been given under this Article VIII, the Company may direct FGM to
undertake any actions reasonably necessary to transfer any aspect of the ownership or control of the assets of the Company to
the Company or to any nominee of the Company and to do all other things reasonably necessary to bring the appointment of FGM to
an end, and FGM shall comply with all such reasonable directions. In addition, FGM shall, at the Company’s expense, deliver
to any new service provider or the Company any books or records held by FGM under this Agreement and shall execute and deliver
such instruments and do such things as may reasonably be required to permit new management of the Company to effectively assume
its responsibilities.

 

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Section
8.4 Payments Upon Termination.

 

(a)
Notwithstanding anything in this Agreement to the contrary, upon any termination of this Agreement pursuant to this Article VIII,
the Company shall pay FGM any Direct Expenses reimbursable to FGM pursuant to Section 7.2 hereof. Following the date of termination,
FGM shall have no obligation to fund any Direct Expenses of the Company. All payments made pursuant to this Section 8.4(a) shall
be made in accordance with Article VII hereof.

 

(b)
Upon termination of this Agreement pursuant to the events set forth in Section 8.2(a), the Company shall pay the Termination Fee
to FGM concurrently with such termination. Any payments made pursuant to this Section 8.4(b) shall be made in U.S. dollars by
wire transfer in immediately available funds to an account or accounts designated by FGM from time to time.

 

(c)
In addition, upon termination of this Agreement for any reason pursuant to this Article VIII, the Company shall pay FGM an amount
concurrently with such termination equal to the Company’s pro rata share of Wind-Down Costs (as reasonably determined by
FGM). For purposes of this Agreement, “Wind-Down Costs” shall be equal to the actual costs incurred
by FGM and its Affiliates to wind-down the Services being provided to the Company immediately prior to the termination date, which
costs may include, without limitation, employee severance payments, lease payments (offset by any ability to sublease leased space),
and other costs associated with winding down the Services. Any payments made pursuant to this Section 8.4(c) shall be made
in U.S. dollars by wire transfer in immediately available funds to an account or accounts designated by FGM from time to time.

 

ARTICLE
IX

INDEMNITY

 

Section
9.1 Indemnity. The Company agrees that FGM, including any officer, director, member, partner, principal, employee, agent or
other Affiliate of FGM (each hereinafter referred to as an “Indemnitee”) shall not have any liability,
responsibility or accountability whatsoever in damages or otherwise to the shareholders of Company or to Company (including its
Affiliates) for any debt, obligation, or liability of, or loss suffered by Company or its Affiliates that arises out of any act
or omission performed or omitted by such Indemnitee, except to the extent of acts or omissions that constitute fraud, gross negligence,
bad faith, willful misconduct or a knowing violation of law by such Indemnitee, in each case as finally determined by a court
of competent jurisdiction. Each Indemnitee shall be indemnified by Company, and Company hereby agrees to defend, indemnify, pay,
protect and hold harmless the Indemnitee (on the demand of and to the satisfaction of such Indemnitee), to the fullest amount
available or permitted under law, from and against any and all liabilities, obligations, losses, damages, actions, judgments,
suits, proceedings, costs, expenses and disbursements of any kind or nature (collectively, “Losses”)
arising by reason of the fact that such Indemnitee is or was providing Services to Company (including its Affiliates) or is or
was serving as a director, officer or other representative of Company or a Subsidiary at the request of Company except to the
extent of acts or omissions that constitute fraud, gross negligence, bad faith, willful misconduct or a knowing violation of law
by such Indemnitee, in each case as finally determined by a court of competent jurisdiction. The foregoing indemnification includes,
without limitation, all reasonable legal fees, costs and expenses of defense, appeal and settlement of any and all suits, actions
or proceedings instituted against such Indemnitee or Company (including its Affiliates) and all costs of investigation in connection
therewith that may be imposed on, incurred by or asserted against the Indemnitee or Company (including its Affiliates) in any
way relating to or arising out of, or alleged to relate to or arise out of, any action or inaction on the part of Company (including
its Affiliates), or on the part of the Indemnitee, except to the extent of acts or omissions that constitute fraud, gross negligence,
bad faith, willful misconduct or a knowing violation of law by such Indemnitee, in each case as finally determined by a court
of competent jurisdiction. If any action, suit or proceeding shall be brought, filed, served, or be pending against Company (including
its Affiliates) or the Indemnitee relating to or arising out of, or alleged to relate to or arise out of, any action or inaction
on either of their parts, the Indemnitee shall have the right to employ, at the sole expense of Company, separate counsel of its
choice in such action, suit or proceeding.

 

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The
rights of any Indemnitee referred to above shall be in addition to any rights that such Indemnitee shall otherwise have at law
or in equity.

 

Any
expenses (including reasonable attorneys’ fees) incurred by any Indemnitee in defending or otherwise in connection with
any action, suit or proceeding shall be paid by Company in advance of the final disposition of such matter if such Indemnitee
expressly agrees to repay in full all such amounts if such Indemnitee shall ultimately be determined not to be entitled to indemnification
under Section 9.1 hereof.

 

Without
the prior written consent of the Company, no Indemnitee shall settle, compromise or consent to the entry of any judgment in, or
otherwise seek to terminate any, claim, action, proceeding or investigation in respect of which indemnification could be sought
hereunder unless (a) such Indemnitee indemnifies the Company from any liabilities arising out of such claim, action, proceeding
or investigation, (b) such settlement, compromise or consent includes an unconditional release of the Company and Indemnitee from
all liability arising out of such claim, action, proceeding or investigation and (c) the parties involved agree that the terms
of such settlement, compromise or consent shall remain confidential.

 

Section
9.2 Insurance. The Company agrees that it shall maintain reasonably adequate insurance in support of the indemnity obligation
set forth in this Article IX.

 

ARTICLE
X

LIMITATION
OF LIABILITY OF FGM

 

Section
10.1 Limitation of Liability. FGM shall not be liable for, and Company shall not take, or permit to be taken, any action against
FGM to hold FGM liable for, any error of judgment or mistake of law or for any loss suffered by the Company or the Subsidiaries
in connection with the performance of FGM’s duties under this Agreement, except for a loss resulting from gross negligence,
bad faith, willful misconduct, or fraud or knowing violation of law on the part of FGM in the performance of its duties and obligations
under this Agreement, in each case as finally determined by a court of competent jurisdiction.

 

    	 	12	 

    	 

    

 

Section
10.2 Reliance of FGM. FGM may take and may act and rely upon:

 

(a)
the opinion or advice of legal counsel, which may be in-house counsel to the Company or FGM, any U.S.-based law firm, or other
legal counsel reasonably acceptable to the Board, in relation to the interpretation of this Agreement or any other document (whether
statutory or otherwise) or generally in connection with the Company;

 

(b)
advice, opinions, statements or information from bankers, accountants, auditors, valuation consultants and other Persons consulted
by FGM who have been reasonably selected by FGM in good faith; and

 

(c)
any other document or other information provided to FGM in connection with the Company or the Subsidiaries upon which it is reasonable
for FGM to rely. FGM shall not be liable for anything done, suffered or omitted by it in good faith in reliance upon such opinion,
advice, statement, information or document.

 

ARTICLE
XI

LEGAL
ACTIONS

 

Section
11.1 Third Party Claims.

 

(a)
FGM shall notify the Company promptly of any claim made by any third party in relation to the assets of the Company and shall
send to the Company any notice, claim, summons or writ served on FGM concerning the Company.

 

(b)
FGM shall not, without the prior written consent of the Board, purport to accept or admit any claims or liabilities of which it
receives notification pursuant to Section 11.1(a) hereof on behalf of the Company or make any settlement or compromise with any
third party in respect of the Company.

 

ARTICLE
XII

MISCELLANEOUS

 

Section
12.1 Obligation of Good Faith; No Fiduciary Duties. FGM shall perform its duties under this Agreement in good faith and for
the benefit of the Company. The relationship of FGM to the Company is as an independent contractor and nothing in this Agreement
shall be construed to impose on FGM an express or implied fiduciary duty. Neither FGM nor any of its officers or employees shall
have any authority to act for, represent, bind or obligate the Company (including without limitation entering into engagement
letters or other contractual arrangements with third parties to provide resources or services to the Company) except as specifically
provided herein or except in their capacity as an officer or director of the Company.

 

    	 	13	 

    	 

    

 

Section
12.2 Binding Effect. This Agreement shall be binding upon, shall inure to the benefit of and be enforceable by the Parties
hereto and their respective successors and permitted assigns.

 

Section
12.3 Compliance. FGM shall (and must ensure that each of its officers, agents and employees) be in material compliance with
any applicable law, including the Federal Securities Laws and the securities laws of any applicable jurisdiction and the Nasdaq
Stock Market (or any successors thereto) rules and regulations, in each case, as in effect from time to time, to the extent that
it concerns the functions of FGM under this Agreement.

 

Section
12.4 Effect of Termination. This Agreement shall be effective as of the Effective Date and shall continue in full force and
effect during the Initial Term and any Automatic Renewal Term thereafter until termination hereof in accordance with Article VIII.
The obligations of the Company set forth in Articles VIII and IX and Sections 7.2, 10.1, 12.5, 12.9 and 12.17 hereof shall survive
such termination of this Agreement, subject to applicable law.

 

Section
12.5 Notices. Any notice or other communication required or permitted under this Agreement shall be deemed to have been duly
given (i) five (5) Business Days following deposit in the mails if sent by registered or certified mail, postage prepaid, (ii)
when sent, if sent by facsimile transmission, if receipt thereof is confirmed by telephone, (iii) when delivered, if delivered
personally to the intended recipient, (iv) when receipt is electronically acknowledged, if sent by electronic mail, and (v) two
(2) Business Days following deposit with a nationally recognized overnight courier service, in each case addressed as follows:

 

If
to the Company, to:

 

1347
Property Insurance Holdings, Inc.

970
Lake Carillon Dr., Suite 314

Saint
Petersburg, FL 33716

Attn:

 

If
to FGM, to:

 

Fundamental
Global Management, LLC

4201
Congress Street, Suite 140

Charlotte,
North Carolina 28209

Attn:

 

or
to such other address, email or facsimile number as any such Party may, from time to time, designate in writing to all other Parties
hereto, and any such communication shall be deemed to be given, made or served as of the date so delivered or, in the case of
any communication delivered by mail, as of the date so received.

 

    	 	14	 

    	 

    

 

Section
12.6 Headings. The headings in this Agreement are included for convenience of reference only and in no way define or delimit
any of the provisions hereof or otherwise affect their construction or effect.

 

Section
12.7 Applicable Law. This Agreement, the legal relations between and among the Parties and the adjudication and the enforcement
thereof shall be governed by and interpreted and construed in accordance with the laws of the State of Delaware, without regard
to the conflicts of law provisions thereof to the extent such principles or rules would require or permit the application of the
laws of another jurisdiction.

 

Section
12.8 Arbitration; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)
Except for injunctive or other equitable relief or as otherwise provided in this Agreement, any and all legal action or proceeding
brought with respect to any of the obligations arising under or relating to this Agreement shall be resolved by binding arbitration
in Charlotte, North Carolina, before three (3) arbitrators independent of the parties and selected in accordance with, and the
arbitration shall be administered by JAMS pursuant to, JAMS’ Comprehensive Arbitration Rules and Procedures excluding its
optional Arbitration Appeal procedures. All arbitration proceedings will be closed to the public and confidential, and all records
relating thereto will be permanently sealed, except as necessary to obtain court confirmation of the judgment of the arbitrator,
and except as necessary to give effect to res judicata and collateral estoppel, in which case, all filings with any court shall
be sealed to the extent permissible by the court. Nothing in this Section 12.8(a) is intended to, or shall, preclude a party to
the arbitration from communicating with, or making disclosures to his, her, or its lawyers, tax advisors, auditors and insurers,
as necessary and appropriate or from making such other disclosures as may be required by any applicable law. To the maximum extent
permitted by Law, the decision of the arbitrator shall be final and binding and not be subject to appeal. If a party against whom
the arbitrator renders an award fails to abide by such award, the other party may seek to enforce such award in any court of competent
jurisdiction.

 

(b)
Except as provided in Section 12.8(a), each of the Parties submits to the exclusive jurisdiction of the Court of Chancery of the
State of Delaware, provided that if jurisdiction is not then available in the Court of Chancery of the State of Delaware, then
any such legal action or proceeding may be brought in any federal court located in the State of Delaware and each of the Parties
hereby irrevocably submits to and accepts with regard to any such action or proceeding, for itself and in respect of its property,
generally and unconditionally, the exclusive jurisdiction of the aforesaid courts. Each Party hereby further irrevocably waives
any claim that any such courts lack jurisdiction over such Party, and agrees not to plead or claim, in any legal action or proceeding
with respect to this Agreement or the transactions contemplated hereby brought in any of the aforesaid courts, that any such court
lacks jurisdiction over such Party. Each Party irrevocably consents to the service of process in any such action or proceeding
by the mailing of copies thereof by registered or certified mail, postage prepaid, to such party, at its address for notices set
forth in Section 12.5 hereof; such service to become effective ten (10) days after such mailing. Each Party hereby irrevocably
waives any objection to such service of process and further irrevocably waives and agrees not to plead or claim in any action
or proceeding commenced hereunder or under any other documents contemplated hereby that service of process was in any way invalid
or ineffective. The foregoing shall not limit the rights of any Party to serve process in any other manner permitted by applicable
law. The foregoing consents to jurisdiction shall not constitute general consents to service of process in the State of Delaware
for any purpose except as provided above and shall not be deemed to confer rights on any Person other than the respective Parties.

 

    	 	15	 

    	 

    

 

(a)
Each of the Parties hereby waives any right it may have under the laws of any jurisdiction to commence by publication any legal
action or proceeding with respect this Agreement. To the fullest extent permitted by applicable law, each of the Parties hereby
irrevocably waives the objection which it may now or hereafter have to the laying of the venue of any suit, action or proceeding
arising out of or relating to this Agreement in any of the courts referred to in this Section 12.8 and hereby further irrevocably
waives and agrees not to plead or claim that any such court is not a convenient forum for any such suit, action or proceeding.

 

(b)
The Parties agree that any judgment obtained by any Party or its successors or assigns in any action, suit or proceeding referred
to above may, in the discretion of such Party (or its successors or assigns), be enforced in any jurisdiction, to the extent permitted
by applicable law.

 

(c)
The Parties agree that the remedy at law for any breach of this Agreement may be inadequate and that should any dispute arise
concerning any matter hereunder, this Agreement shall be enforceable in a court of equity by an injunction or a decree of specific
performance. Such remedies shall, however, be cumulative and nonexclusive, and shall be in addition to any other remedies which
the Parties may have.

 

(d)
Each Party hereby waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect
of any litigation as between the Parties directly or indirectly arising out of, under or in connection with this Agreement or
the transactions contemplated hereby or disputes relating hereto. Each Party (i) certifies that no representative, agent or attorney
of any other Party has represented, expressly or otherwise, that such other Party would not, in the event of litigation, seek
to enforce the foregoing waiver and (ii) acknowledges that it and the other Parties have been induced to enter into this Agreement
by, among other things, the mutual waivers and certifications in this Section 12.8.

 

Section
12.9 Amendment; Waivers. No term or condition of this Agreement may be amended, modified or waived without the prior written
consent of the Party against whom such amendment, modification or waiver will be enforced; provided, that any amendment
of Article VII shall not be effective as to any Party hereto unless, in addition to the above, it is approved by a unanimous vote
of the Independent Directors. Any waiver granted hereunder shall be deemed a specific waiver relating only to the specific event
giving rise to such waiver and not as a general waiver of any term or condition hereof.

 

Section
12.10 Remedies to Prevailing Party. If any action at law or equity is necessary to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs, and necessary disbursements in addition
to any other relief to which such party may be entitled.

 

    	 	16	 

    	 

    

 

Section
12.11 Severability. Each provision of this Agreement is intended to be severable from the others so that if, any provision
or term hereof is illegal, invalid or unenforceable for any reason whatsoever, such illegality, invalidity or unenforceability
shall not affect or impair the validity of the remaining provisions and terms hereof; provided, however, that the provisions
governing payment of the Shared Services Fee described in Article VII hereof are not severable.

 

Section
12.12 Benefits Only to Parties. Except with respect to Indemnitees as provided in Article IX, nothing expressed by or mentioned
in this Agreement is intended or shall be construed to give any Person other than the Parties and their respective successors
or permitted assigns, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein
contained, this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit
of the Parties and their respective successors and permitted assigns, and for the benefit of no other Person.

 

Section
12.13 Further Assurances. Each Party hereto shall take any and all such actions, and execute and deliver such further agreements,
consents, instruments and any other documents as may be necessary from time to time to give effect to the provisions and purposes
of this Agreement.

 

Section
12.14 No Strict Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In
the event any ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly
by all Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship
of any provision of this Agreement.

 

Section
12.15 Entire Agreement. This Agreement, including the Schedules attached hereto which are incorporated herein by reference,
constitutes the sole and entire agreement of the Parties with regards to the subject matter of this Agreement. Any written or
oral agreements, statements, promises, negotiations or representations not expressly set forth in this Agreement are of no force
and effect.

 

Section
12.16 Assignment. This Agreement shall not be assignable by either Party without the prior written consent of the other Party,
except by FGM to any Person with which FGM may merge or consolidate or to which FGM transfers substantially all of its assets,
or to an Affiliate of FGM, and then only in the event that such assignee assumes all of the obligations to the Company and the
Subsidiaries hereunder.

 

    	 	17	 

    	 

    

 

Section
12.17 Confidentiality.

 

(a)
FGM shall not, and FGM shall cause its Affiliates and their respective agents and representatives not to, at any time from and
after the date of this Agreement, directly or indirectly, disclose or use any confidential or proprietary information involving
or relating to (x) the Company, including any information contained in the books and records of the Company and (y) the Subsidiaries,
including any information contained in the books and records of any such Subsidiaries; provided, however, that disclosure
and use of any information shall be permitted (i) with the prior written consent of the Company, (ii) as, and solely to the extent,
necessary or required for the performance by FGM, any of its Affiliates or its delegates of any of their respective obligations
under this Agreement, (iii) as, and to the extent, necessary or required in the operation of the Company’s business or operations
in the Ordinary Course of Business, (iv) to the extent such information is generally available to, or known by, the public or
otherwise has entered the public domain (other than as a result of disclosure in violation of this Section 12.17 by FGM or any
of its Affiliates) or has been independently developed by FGM without any reliance on confidential information of the Company,
(v) as, and to the extent, necessary or required by any governmental order, applicable law or any governmental or regulatory authority,
subject to Section 12.17(c), and (vi) as, and to the extent, necessary or required or reasonably appropriate in connection with
the enforcement of any right or remedy relating to this Agreement or any other agreement between FGM and the Company or any of
the Subsidiaries.

 

(b)
For the avoidance of doubt, confidential information includes business plans, financial information, operational information,
strategic information, legal strategies or legal analysis, formulas, production processes, lists, names, research, marketing,
sales information and any other information similar to any of the foregoing or serving a purpose similar to any of the foregoing
with respect to the business or operations of the Company or any of the Subsidiaries. However, the Parties are not required to
mark or otherwise designate information as “confidential or proprietary information,” “confidential” or
“proprietary” in order to receive the benefits of this Section 12.17.

 

(c)
In the event that FGM is required by governmental order, applicable law or any governmental or regulatory authority to disclose
any confidential information of the Company or any of the Subsidiaries that is subject to the restrictions of this Section 12.17,
FGM shall (i) notify the Company or any of the Subsidiaries in writing as soon as possible, unless it is otherwise affirmatively
prohibited by such governmental order, applicable law or such governmental or regulatory authority from notifying the Company
or any such Subsidiaries, as the case may be, (ii) cooperate with the Company or any such Subsidiaries to preserve the confidentiality
of such confidential information consistent with the requirements of such governmental order, applicable law or such governmental
or regulatory authority and (iii) use its commercially reasonable efforts to limit any such disclosure to the minimum disclosure
necessary or required to comply with such governmental order, applicable law or such governmental or regulatory authority, in
each case, at the sole cost and expense of the Company.

 

(d)
Nothing in this Section 12.17 shall prohibit FGM from keeping or maintaining any copies of any records, documents or other information
that may contain information that is otherwise subject to the requirements of this Section 12.17, subject to its compliance with
this Section 12.17.

 

(e)
FGM shall be responsible for any breach or violation of the requirements of this Section 12.17 by any of its agents or representatives.

 

Section
12.18 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute but one and the same instrument.

 

    	 	18	 

    	 

    

 

IN
WITNESS WHEREOF, the Parties have executed this Shared Services Agreement as of the date first written above to be effective
as of the Effective Date.

 

	 	1347
    PROPERTY INSURANCE HOLDINGS, INC.
	 	 
	 	By:
    	/s/
    John S. Hill
	 	Name:
    	John
    S. Hill
	 	Title:
    	EVP,
    CFO & Secretary
	 	 	 
	 	Fundamental
    Global Management, LLC
	 	 
	 	By:	/s/
    Kyle Cerminara
	 	Name:
    	Kyle
    Cerminara
	 	Title:
    	Manager

 

    	 	19	 

    	 

    

 

Schedule
A

Services

 

Subject
to Article VII, FGM agrees and covenants that it shall perform the following services:

 

(a)
manage the Company’s and the Subsidiaries’ day-to-day business and operations, including assisting the Company and
the Subsidiaries in complying with all regulatory requirements applicable to the Company and the Subsidiaries in respect of the
Company’s and the Subsidiaries’ business activities;

 

(b)
evaluate the financial and operational performance of any of the Subsidiaries, including monitoring the business and operations
thereof, and the financial performance of any of the Company’s or the Subsidiaries’ other assets;

 

(c)
provide, as determined necessary by FGM and in accordance with the terms and conditions of this Agreement and the Governing Documents,
a management team to serve as executive officers of the Company and the Subsidiaries or as members of the Board (subject to applicable
regulatory requirements and the terms of this Agreement); and

 

(d)
subject to the other provisions of this Agreement, perform any other services for and on behalf of the Company and the Subsidiaries
to the extent that such services are consistent with those that are customarily performed by the executive officers and employees
of a publicly listed company.

 

The
foregoing Services shall include, but are not limited to, the following: (1) working with the Company’s CFO and other staff
to ensure that the Company and the Subsidiaries are establishing and maintaining books and records in accordance with customary
practice and GAAP; (2) recommend to the Board changes or other modifications in the capital structure of the Company or the Subsidiaries,
including repurchases; (3) recommend to the Board the engagement of or, if approval is not otherwise required hereunder, engage
agents, consultants or other third party service providers to the Company and the Subsidiaries, including accountants, lawyers
or experts, in each case, as may be needed by the Company or the Subsidiaries from time to time; (4) maintain the Company’s
and the Subsidiaries’ property and assets in the Ordinary Course of Business; (5) manage or oversee litigation, administrative
or regulatory proceedings, investigations or any other reviews of the Company’s and/or the Subsidiaries’ business
or operations that may arise in the Ordinary Course of Business or otherwise, subject to the approval of the Board to the extent
necessary in connection with the settlement, compromise, consent to the entry of an order or judgment or other agreement resolving
any of the foregoing; (6) establish and maintain appropriate insurance policies with respect to the Company’s and the Subsidiaries’
business and operations; (7) recommend to the Board the payment of dividends or other distributions on the equity interests of
the Company; and (8) working with the Company’s CFO to ensure timely calculation of taxes payable, and the filing of all
taxes return due, by the Companies and the Subsidiaries.

 

    	 	20Exhibit
10.2

 

 

 

FUNDAMENTAL
GLOBAL ASSET MANAGEMENT, LLC

 

LIMITED
LIABILITY COMPANY AGREEMENT

 

Dated
as of: March 31, 2020

 

 

 

INTERESTS
IN THE COMPANY MAY ONLY BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED SUBJECT TO THE LIMITATIONS AND RESTRICTIONS SET FORTH HEREIN
AND ONLY IN COMPLIANCE WITH ALL APPLICABLE SECURITIES LAWS.

 

    	 	 	 

     

    

 

FUNDAMENTAL
GLOBAL ASSET MANAGEMENT, LLC

LIMITED
LIABILITY COMPANY AGREEMENT

 

TABLE
OF CONTENTS

 

	ARTICLE
    I FORMATION OF THE COMPANY	1
	Section
    1.1.	Formation
    of the Company.	1
	Section
    1.2.	Name.	1
	Section
    1.3.	Business
    of the Company.	1
	Section
    1.4.	Location
    of Principal Place of Business.	1
	Section
    1.5.	Registered
    Agent.	2
	Section
    1.6.	Term.	2
	 	 	 
	ARTICLE
    II DEFINITIONS	2
	 	 
	ARTICLE
    III CAPITAL CONTRIBUTIONS	6
	Section
    3.1.	Capital
    Contributions. 	6
	Section
    3.2.	No
    Interest Paid on Capital Contribution(s).	7
	Section
    3.3.	Withdrawal
    and Return of Capital Contribution(s).	7
	Section
    3.4.	Form
    of Capital Contributions.	7
	 	 	 
	ARTICLE
    IV ALLOCATIONS	7
	Section
    4.1.	Allocation
    of Net Income and Net Loss.	7
	Section
    4.2.	Other
    Allocation Provisions.	8
	Section
    4.3.	Allocations
    for Income Tax Purposes.	8
	Section
    4.4.	Withholding.	9
	 	 	 
	ARTICLE
    V DISTRIBUTIONS	9
	Section
    5.1.	Distributions
    Generally.	9
	Section
    5.2.	Tax
    Distributions	10
	Section
    5.3.	Limitations
    on Distributions.	10
	Section
    5.4.	Reserves.	10
	 	 	 
	ARTICLE
    VI BOOKS OF ACCOUNT, RECORDS AND REPORTS; FISCAL YEAR	11
	Section
    6.1.	Books
    and Records.	11
	Section
    6.2.	Reports.	11
	Section
    6.3.	Fiscal
    Year.	11
	 	 	 
	ARTICLE
    VII POWERS, RIGHTS AND DUTIES OF THE MEMBERS	11
	Section
    7.1.	Limitations.	11
	Section
    7.2.	Liability.	11
	Section
    7.3.	Priority.	11
	 	 	 
	ARTICLE
    VIII POWERS, RIGHTS AND DUTIES OF THE BOARD	12
	Section
    8.1.	Authority	12
	Section
    8.2.	Appointment
    and Term of Managers	12
	Section
    8.3.	Meetings;
    Quorum; Voting	12
	Section
    8.4.	Officers,
    Agents and Employees; Committees of the Board	13
	Section
    8.5.	Company
    Funds	13
	Section
    8.6.	Other
    Activities; Transactions with Affiliates	14
	Section
    8.7.	Limits
    on the Power of the Board	15

 

    	 

     

    

 

	Section
    8.8.	Tax
    Audits.	16
	Section
    8.9.	Exculpation.	16
	Section
    8.10.	Indemnification
    of the Members.	17
	Section
    8.11.	Expenses	17
	 	 	 
	ARTICLE
    IX TRANSFERS OF INTERESTS BY MEMBERS	18
	Section
    9.1.	General.
    	18
	Section
    9.2.	Consequences
    of Transfers Generally.	18
	Section
    9.3.	Transferee
    to Succeed to Transferor’s Capital Account.	19
	Section
    9.4.	Right
    of First Refusal	19
	Section
    9.5.	Additional
    Filings.	19
	 	 	 
	ARTICLE
    X WITHDRAWAL OF MEMBERS; TERMINATION OF THE COMPANY; LIQUIDATION AND DISTRIBUTION OF ASSETS	19
	Section
    10.1.	Withdrawal
    or Removal of Members.	19
	Section
    10.2.	Dissolution
    of the Company.	19
	Section
    10.3.	Distribution
    in Liquidation.	20
	Section
    10.2.	Final
    Statement of Assets and Liabilities.	21
	Section
    10.3.	No
    Deficit Restoration Obligation.	21
	Section
    10.4.	Termination
    of the Company.	21
	 	 	 
	ARTICLE
    XI ADMISSION OF ADDITIONAL MEMBERS	21
	Section
    11.1.	Admission
    of Additional Members.	21
	 	 	 
	ARTICLE
    XII NOTICES AND VOTING	22
	Section
    12.1.	Notices.	22
	Section
    12.2.	Voting.	22
	 	 	 
	ARTICLE
    XIII AMENDMENT OF AGREEMENT	22
	Section
    13.1.	Amendments.	22
	Section
    13.2.	Amendment
    of Certificate.	22
	 	 	 
	ARTICLE
    XIV MISCELLANEOUS	22
	Section
    14.1.	Entire
    Agreement.	22
	Section
    14.2.	Applicable
    Law.	22
	Section
    14.3.	Effect.	23
	Section
    14.4.	Survival.	23
	Section
    14.5.	Pronouns
    and Number.	23
	Section
    14.6.	Captions.	23
	Section
    14.7.	Partial
    Enforceability.	23
	Section
    14.8.	Counterparts.	23
	Section
    14.9.	Construction	23
	Section
    14.10.	Waiver
    of Partition.	23
	Section
    14.11.	Submission
    to Jurisdiction	23
	Section
    14.12.	Waiver
    of Trial by Jury	24
	Section
    14.13.	Force
    Majeure	24
	Section
    14.14.	Further
    Assurances	24
	Section
    14.15.	No
    Third Party Beneficiaries.	24

 

	Schedule
    A 	-	Members;
    Percentage Interests

 

    	ii

     

    

 

FUNDAMENTAL
GLOBAL ASSET MANAGEMENT, LLC

 

lIMITED
LIABILITY COMPANY AGREEMENT

 

This
LIMITED LIABILITY COMPANY AGREEMENT (as amended, modified or supplemented from time to time, this “Agreement”)
of FUNDAMENTAL GLOBAL ASSET MANAGEMENT, LLC, a Delaware limited liability company (the “Company”), is made
this March 31, 2020, by and between 1347 Property Insurance Holdings, Inc., a Delaware corporation (“PIH”), and FGI
Funds Management, LLC, a Florida limited liability company (“FGI”). Capitalized terms not otherwise defined herein
shall have the meanings ascribed to them in Article II.

 

WHEREAS,
the Company was organized under the Act pursuant to a Certificate of Formation filed with the Secretary of State of the State
of Delaware on March 23, 2020 (the “Certificate”).

 

NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
I

FORMATION
OF THE COMPANY

 

Section
1.1. Formation of the Company. The Company was formed as a limited liability company under the Act by the filing of the
Certificate with the Office of the Secretary of State of the State of Delaware on March 23, 2020. The Company shall accomplish
all filing, recording, publishing and other acts necessary or appropriate for compliance with all requirements for operation of
the Company as a limited liability company under this Agreement and the Act and under all other laws of the State of Delaware
and such other jurisdictions in which the Board determines that the Company may conduct business. Each Person admitted to the
Company as a Member shall promptly execute all relevant certificates and other documents, as the Board shall request.

 

Section
1.2. Name. The name of the Company is “Fundamental Global Asset Management, LLC” as such name may be modified
from time to time by the Board following notice to all Members.

 

Section
1.3. Business of the Company. Subject to the limitations on the activities of the Company otherwise specified in this Agreement,
the business of the Company shall be the conduct of any business or activity that may be conducted by a limited liability company
organized pursuant to the Act, including without limitation (a) to sponsor, capitalize and provide strategic advice to Underlying
Managers in connection with the launch and/or growth of their asset management business and the investment products they sponsor
and (b) except as otherwise limited herein, to enter into, make and perform all contracts and other undertakings, and engage in
all activities and transactions incidental to or necessary or advisable to the carrying out of the foregoing objectives and purposes.
All property owned by the Company, real or personal, tangible or intangible, shall be deemed to be owned by the Company as an
entity, and no Member, individually, shall have any ownership of such property. PIH and FGI have formed and intend to operate
the Company as a joint venture to carry out the business of the Company.

 

Section
1.4. Location of Principal Place of Business. The location of the principal place of business of the Company shall be 4201
Congress Street, Suite 140, Charlotte, North Carolina 28209 or such other location as may be determined by the Board. In addition,
the Company may maintain such other offices as the Board may deem advisable at any other place or places within or without the
United States.

 

    	 	 	 

     

    

 

Section
1.5. Registered Agent. The registered agent for the Company shall be Corporation Service Company, 251 Little Falls Drive,
Wilmington, Delaware 19808 or such other registered agent as the Board may, from time to time upon written notice to the Members,
designate.

 

Section
1.6. Term. The term of the Company commenced upon the filing of the Certificate with the Secretary of State of the State
of Delaware, and the Company shall remain in existence until terminated in accordance with Article X.

 

ARTICLE
II

DEFINITIONS

 

“Accounting
Period” means, in the case of the initial Accounting Period, the period that begins on the date hereof and ends at the
close of business on the first Adjustment Date and, in the case of any subsequent Accounting Period, the period that begins at
the opening of business on the day immediately following an Adjustment Date and ends at the close of business on the immediately
following Adjustment Date or, in the event that the Company is terminated, such date of termination.

 

“Act”
means the Delaware Limited Liability Company Act, 6 Del. Code §18-101 et seq., as amended from time to time (or any succeeding
law).

 

“Additional
Member” has the meaning set forth in Section 11.1(a).

 

“Adjustment
Date” means (i) the last day of a Fiscal Year or (ii) any other date that the Board reasonably determines is necessary
or appropriate to be an Adjustment Date in order to accurately reflect the economic relationship of the Members.

 

“Affiliate”
means, with respect to a specified Person, any Person directly or indirectly Controlling, Controlled by or under common Control
with the specified Person.

 

“Board”
means the Board of Managers of the Company, formed pursuant to Section 8.2.

 

“Book
Value” means, with respect to any asset of the Company as of any date, such asset’s adjusted basis for Federal
income tax purposes as of such date, except as follows: (i) the initial Book Value of any Company asset contributed by a Member
to the Company shall be the fair value of such Company asset on the date of such contribution (i.e., its Contribution Value);
(ii) on the date immediately preceding the admission of an additional Member to the Company or otherwise in the Tax Matters Partner’s
reasonable discretion in accordance with Regulation §1.704-1(b)(2)(iv)(f), the Book Value of each asset of the Company may
be adjusted to equal its fair value (as determined by the Board) on such date; and (iii) if the Book Value of an asset has been
determined pursuant to clauses (i) or (ii) above, such Book Value shall thereafter be adjusted by the depreciation,
cost recovery and amortization attributable to such asset, assuming that the adjusted basis for Federal income tax purposes of
such asset was equal to its Book Value determined pursuant to the methodology described in Regulation §1.704-1(b)(2)(iv)(g)(3).

 

“Business
Day” means any day on which the NASDAQ is open for regular trading and on which commercial banks in North Carolina and
Florida are open for business.

 

    	 	2	 

     

    

 

“Capital
Account” means, with respect to each Member, the single and separate account established and maintained for such Member
on the books of the Company in compliance with Regulation §§ 1.704-1(b)(2)(iv) and 1.704-2, as amended. Subject to the
preceding sentence, each Member’s Capital Account shall initially equal the amount of cash initially contributed by such
Member to the Company. Throughout the term of the Company, each Member’s Capital Account will be (i) increased by (A) the
amount of income and gains of the Company allocated to such Member pursuant to Article IV and (B) the amount of any cash
or the Contribution Value of any property subsequently contributed by such Member to the Company and (ii) decreased by (A) the
amount of losses and deductions of the Company allocated to such Member pursuant to Article IV and (B) the amount of cash
and the Distribution Value of any other property distributed to such Member by the Company pursuant to Article V or Article
X.

 

“Capital
Call Notice” has the meaning set forth in Section 3.1(e).

 

“Capital
Contribution” means a contribution to the capital of the Company.

 

“Capital
Income” and “Capital Loss,” respectively, of the Company for any Accounting Period means the Net
Income or Net Loss for such Accounting Period that is attributable, in the reasonable determination of the Board, to amounts earned
or lost by the Company, as applicable, on capital provided by the Company to a Sponsored Fund on a pro rata basis (not
taking into account any Revenue Share Proceeds or any earnings related to any Revenue Share Proceeds that have not been withdrawn
by, or distributed to, the Company from a Sponsored Fund or an Underlying Manager) with other investors in such Sponsored Fund
based on the Company’s capital in such Sponsored Fund, together with any amounts earned on any Returned Capital while retained
by the Company (and reduced by any amounts lost on any Returned Capital while retained by the Company).

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time (or any succeeding law).

 

“Contribution
Value” means the fair value of any property (as determined by the Board) (net of liabilities secured by such property
that the Company is treated as assuming or taking subject to pursuant to the provisions of section 752 of the Code) contributed
or deemed contributed by a Member to the Company.

 

“Control”
means the possession, directly or indirectly, of the power to direct the management or policies of a Person, whether through ownership
or voting of Securities or other voting ownership interests, by contract or otherwise. “Controlled” or “Controlling”
shall have correlative meanings.

 

“Distribution
Value” means the fair value of a Company asset (as determined by the Board) distributed to a Member by the Company (net
of liabilities secured by such distributed asset that such Member is treated as assuming or taking subject to pursuant to the
provisions of section 752 of the Code).

 

“Fiscal
Year” has the meaning set forth in Section 6.3.

 

“Indemnified
Party” has the meaning set forth in Section 8.10(a).

 

“Interest”
means the entire ownership interest of a Member in the Company at any particular time, including without limitation such Member’s
interest in the capital, profits and losses of, and in any distributions from, the Company.

 

    	 	3	 

     

    

 

“Liquidator”
has the meaning set forth in Section 10.2(b).

 

“Manager”
means each Person appointed as a Manager pursuant to Section 8.2.

 

“Member”
means each Person listed as a Member on Schedule A hereto, each Person admitted as a substituted Member pursuant to Article
IX, each Person admitted as an Additional Member pursuant to Article XI and, with respect to those provisions of this
Agreement concerning a Member’s rights to receive a share of profits or other distributions as well as the return of a Member’s
Capital Contribution, any Transferee in respect of a Member’s Interest (except that a Transferee who is not admitted as
a substituted Member shall have only those rights specified by the Act that are consistent with the terms of this Agreement).

 

“Net
Income” and “Net Loss,” respectively, of the Company for any period means the income or loss of the
Company for such period as determined (a) in the case of any income, gain, loss, expense, appreciation or depreciation allocated
to the Company by an Underlying Manager or a Sponsored Fund, in the same manner as net income, net profits or net capital appreciation
and net expense, net loss or net capital depreciation are determined pursuant to the applicable governing documents of the Underlying
Manager or Sponsored Fund and (b) in the case of all other income or loss of the Company, in accordance with the method of accounting
followed by the Company for Federal income tax purposes, including, for all purposes, any income exempt from tax and any expenditures
of the Company which are described in Code section 705(a)(2)(B); provided, however, that in determining Net Income
and Net Loss and every item entering into the computation thereof, solely for the purpose of adjusting the Capital Accounts of
the Members (and not for tax purposes), (i) any income, gain, loss or deduction attributable to the disposition of any Company
asset shall be computed as if the adjusted basis of such Company asset on the date of such disposition equaled its Book Value
as of such date, (ii) if any Company asset is distributed in kind to a Member, the difference between its value and its Book Value
on the date of such distribution shall be treated as gain or loss to the Company and (iii) any depreciation, cost recovery and
amortization as to any Company asset shall be computed by assuming that the adjusted basis of such Company asset equaled its Book
Value determined under the methodology described in Regulation §1.704-1(b)(2)(iv)(g)(3); and provided, further,
that any item (computed with the adjustments in the preceding proviso) allocated under Section 4.2 shall be excluded from
the computation of Net Income and Net Loss.

 

“Partnership
Representative” has the meaning set forth in Section 8.8(b).

 

“Percentage
Interest” means, with respect to any Member, the percentage set forth opposite such Member’s name on Schedule
A hereto under the column headed “Percentage Interest”.

 

“Person”
means any individual, partnership, limited liability company, association, corporation, trust or other entity.

 

“Presumed
Applicable Tax Rate” means, with respect to any Fiscal Year and net income or capital gain recognized during such Fiscal
Year, the highest effective combined United States federal, state and local income tax rate applicable to net income or capital
gain recognized during such Fiscal Year by a natural person residing in North Carolina, taxable at the highest marginal United
States Federal income tax rate and the highest marginal North Carolina income tax rates, taking into account the nature of such
net income or capital gain and the holding period of the assets the disposition of which gave rise to the capital gain.

 

    	 	4	 

     

    

 

“Presumed
Tax Liability” for any Member for any Fiscal Year means an amount equal to the tax liability of such Member with respect
to net income and capital gain allocated to such Member with respect to such Fiscal Year assuming such income was taxable at the
Presumed Applicable Tax Rates associated with such income and giving effect to the deductions and capital losses allocated to
such Member during such Fiscal Year.

 

“Regulation”
means a Treasury Regulation promulgated under the Code.

 

“Returned
Capital” means amounts received by the Company that, in the reasonable determination of the Board, represent a return
of capital provided by the Company to a Sponsored Fund or earnings allocated to the Company on a pro rata basis (not taking into
account any Revenue Share Proceeds or any earnings related to any Revenue Share Proceeds that have not been withdrawn by, or distributed
to, the Company from a Sponsored Fund or an Underlying Manager) with other investors in such Sponsored Fund based on the Company’s
capital in such Sponsored Fund, together with any amounts earned on such received amounts while retained by the Company (and reduced
by any amounts lost on any such received amounts while retained by the Company).

 

“Revenue
Share Proceeds” means, with respect to an Underlying Manager, amounts paid or distributed to the Company by such Underlying
Manager and/or its Affiliates in connection with any profits or other “carried interest” in respect of the relevant
Sponsored Fund(s) (including any proceeds received from revenue shares or ownership interests in such Underlying Manager).

 

“Security”
or “Securities” means securities and other financial instruments of United States and foreign entities, including,
without limitation, capital stock; shares of beneficial interest; partnership interests and similar financial instruments; interests
in equipment (including, without limitation, ships, airplanes, containers, railcars and other leasable equipment), real estate
and real estate-related and other assets; royalties and interests in royalties; litigation claims; intellectual property; bonds,
notes and debentures (whether subordinated, convertible or otherwise); commodities; currencies; interest rate, currency, commodity,
equity and other derivative products, including, without limitation, (i) futures contracts, (ii) swaps, options, warrants, caps,
collars, floors and forward rate agreements, (iii) spot and forward currency transactions and (iv) agreements relating to or securing
such transactions; equipment lease certificates; equipment trust certificates; loans; accounts and notes receivable and payable
held by trade or other creditors; trade acceptances; contract and other claims; executory contracts; participations; mutual funds;
money market funds; obligations of the United States, any state thereof, foreign governments and instrumentalities of any of them;
commercial paper; certificates of deposit; bankers’ acceptances; trust receipts; and other obligations and instruments or
evidences of indebtedness of whatever kind or nature; in each case, of any Person, corporation, government or other entity whatsoever,
whether or not publicly traded or readily marketable.

 

“SF
Seed Capital” means the amount of capital required to be contributed, directly or indirectly through an Underlying Manager,
to a Sponsored Fund in connection with a Sponsored Fund Transaction.

 

“SF
Seed Capital Contribution” means, with respect to each Sponsored Fund and each Member, the Capital Contributions made
to the Company pursuant to Section 3.1(b) to fund the SF Seed Capital requirements of such Sponsored Fund.

 

“SF
Working Capital” means the amount of capital required to be contributed to the Company in connection with a Sponsored
Fund Transaction that does not constitute SF Seed Capital, which working capital may be used to acquire interests in an Underlying
Manager or to extend a working capital facility to an Underlying Manager in connection with such Sponsored Fund Transaction.

 

    	 	5	 

     

    

 

“SF
Working Capital Contribution” means, with respect to any Sponsored Fund Transaction and each Member, the Capital Contributions
made to the Company pursuant to Section 3.1(c) to fund the SF Working Capital requirements of the Underlying Manager in
connection with such Sponsored Fund Transaction.

 

“Sponsored
Fund” means, with respect to each Underlying Manager, each investment fund, investment vehicle, separately managed account
or similar arrangement sponsored by the Underlying Manager in respect of which the Company is, directly or indirectly, entitled
to Returned Capital and/or Revenue Share Proceeds.

 

“Sponsored
Fund Transaction” means a transaction pursuant to which the Company, directly or indirectly, provides SF Seed Capital,
SF Working Capital and/or strategic assistance to an Underlying Manager in connection with the launch of a Sponsored Fund and/or
launch and/or growth of the Underlying Manager’s business in exchange for Returned Capital and/or Revenue Share Proceeds.

 

“Tax
Matters Partner” has the meaning set forth in Section 8.8.

 

“Transfer,”
“Transferee” and “Transferor” have the respective meanings set forth in Section 9.1(a).

 

“Underlying
Manager” means an investment manager or adviser that has entered into a Sponsored Fund Transaction with the Company.

 

“Void
Transfer” has the meaning set forth in Section 9.1(a).

 

ARTICLE
III

CAPITAL
CONTRIBUTIONS

 

Section
3.1. Capital Contributions.

 

(a)
Operating Capital Contributions. Upon the determination by the Board that the Company requires additional capital other
than any SF Seed Capital or SF Working Capital, the Members shall contribute an amount equal to such additional capital requirement
in proportion to their Percentage Interests (“Operating Capital Contributions”).

 

(b)
SF Seed Capital Contributions. Upon the determination by the Board that the Company requires SF Seed Capital in respect
of a Sponsored Fund, unless otherwise agreed, PIH shall contribute an amount to the Company equal to 100% of such SF Seed Capital
requirement. To the extent that the Company is required to return any Returned Capital related to a Sponsored Fund pursuant to
the governing documents of such Sponsored Fund or related Underlying Manager, each Member shall return such Returned Capital in
the same proportions that they were distributed to such Member pursuant to Section 5.1(a).

 

(c)
SF Working Capital Contributions. Upon the determination by the Board that the Company requires SF Working Capital in respect
of a Sponsored Fund, unless otherwise agreed, PIH shall contribute an amount to the Company equal to 100% of such SF Working Capital
requirement.

 

    	 	6	 

     

    

 

(d)
Underlying Manager Clawback Amounts. To the extent that the Members have received distributions of Revenue Share Proceeds
pursuant to Section 5.1(b) that are attributable to a Sponsored Fund and the Company is obligated to return distributions,
indirectly through an Underlying Manager, to such Sponsored Fund with respect to a clawback obligation or other liability (including
any indemnification obligations in respect of such Sponsored Fund but not including any contribution obligations to fund investments
or expenses (other than, for the avoidance of doubt, any such other liabilities) of such Sponsored Fund in connection with any
SF Seed Capital Contribution requirements and, in each case, as required pursuant to the governing documentation of such Sponsored
Fund) in excess of any reserves maintained therefor by the Company pursuant to Section 5.4, the Members shall contribute
to the Company an amount equal to 100% of the amount required to be returned to such Sponsored Fund, but only in proportion to
the amount of distributions with respect to such Sponsored Fund previously received by such Members (i.e., severally, not jointly);
provided, that no Member shall be obligated to contribute an amount in excess of the aggregate amount of such distributions
with respect to such Sponsored Fund previously received by such Member (less any Presumed Tax Liability with respect to such distributions
and less any amounts previously contributed by such Member with respect to such Sponsored Fund pursuant to this Section 3.1(d)).

 

(e)
Capital Contributions shall be made from time to time no later than 12:00 noon (New York time) on the fifth Business Day following
written notice from the Company (a “Capital Call Notice”) of the amounts to be contributed by each Member and
the general purposes to which such contributions will be applied.

 

(f)
Except as specified in Section 3.1, no Member shall at any time be required, and no Member shall have any right, to make
any additional Capital Contributions, except as may be required by law or as otherwise specified in this Agreement.

 

Section
3.2. No Interest Paid on Capital Contribution(s). No Member shall be entitled to interest on or with respect to such Member’s
Capital Contribution(s).

 

Section
3.3. Withdrawal and Return of Capital Contribution(s). Except as provided in this Agreement, no Member shall be entitled
to withdraw any part of such Member’s Capital Contribution(s) or to receive any distributions from the Company.

 

Section
3.4. Form of Capital Contributions. All Capital Contributions shall be made in immediately available funds in U.S. dollars.

 

ARTICLE
IV

ALLOCATIONS

 

Section
4.1. Allocation of Net Income and Net Loss. The Members agree to treat the Company as a partnership and the Members as
partners for Federal income tax purposes. Except as provided in Section 4.2, the Company’s Net Income or Net Loss,
as the case may be, and each item of income, gain, loss and deduction entering into the computation thereof, for each Accounting
Period shall be allocated as follows:

 

(a)
Capital Income (Loss). Capital Income or Capital Loss, as the case may be, and each related item of income, gain, loss
and deduction, for each Accounting Period that is attributable to any Sponsored Fund shall be allocated to the Members in proportion
to their respective SF Seed Capital Contributions with respect to such Sponsored Fund at the beginning of such Accounting Period.

 

    	 	7	 

     

    

 

(b)
Other Net Income and Net Loss. Net Income or Net Loss, as the case may be, and each related item of income, gain, loss
and deduction (not including any Capital Income or Capital Loss or any items of income, gain, loss and deduction related thereto),
for any Fiscal Year shall be allocated among the Members in a manner such that the Capital Account of each Member, immediately
after giving effect to such allocation as increased by the amount of such Member’s share of partnership minimum gain (as
defined in Regulation § 1.704-2(g)(1) and (3)) and the amount of such Member’s share of partner nonrecourse debt minimum
gain (as defined in Regulation § 1.704-2(i)(5)), is, as nearly as possible, equal (proportionately) to the amount of distributions
that would be made to such Member during such Fiscal Year pursuant to Section 5.1, if at the end of such Fiscal Year (i)
the Company were dissolved and terminated, (ii) its affairs were wound up and each Company asset was sold for cash equal to its
Book Value, (iii) all Company liabilities were satisfied (limited with respect to each nonrecourse liability to the Book Value
of the assets securing such liability), and (iv) the net assets of the Company were distributed in accordance with Section
5.1 to the Members immediately after giving effect to such allocation. The Tax Matters Partner may, in its reasonable discretion,
make such other assumptions as it deems necessary or appropriate in order to effectuate the intended economic arrangement of the
Members.

 

Section
4.2. Other Allocation Provisions.

 

(a)
The allocations set forth in this Agreement are intended to comply with Code sections 704(b) and 704(c) and the Regulations promulgated
thereunder. If the Tax Matters Partner in its reasonable discretion determines that any allocations of items of Company income,
gain, loss, deduction, and credit pursuant to this Agreement do not satisfy the requirements of such provisions (including the
non-recourse deductions requirement of the Regulation §1.704-2(i), the minimum gain chargeback requirement of Regulation
§1.704-2(f), and the qualified income offset requirement of Regulation §1.704-1(b)(ii)(d)), then notwithstanding anything
to the contrary contained in this Agreement, such items of income, gain, loss, deduction or credit shall be allocated in such
manner as the Tax Matters Partner reasonably determines to be required by such provisions. To the extent that the Tax Matters
Partner reasonably determines that it would be permissible under Code sections 704(b) and (c) and the Regulations thereunder to
make allocations in a subsequent year to offset the effects of the allocations in the preceding sentence, the Tax Matters Partner
shall be permitted to do so. If a Member unexpectedly receives any adjustments, allocations or distributions described in Regulation
§1.704-1(b)(2)(ii)(d)(4), (5), or (6), and such Member has a Capital Account deficit, items of income and gain shall
be specially allocated to such Member in an amount and manner sufficient to eliminate such deficit as quickly as possible.

 

(b)
Except to the extent otherwise required by the Code and Regulations, if an Interest or part thereof is Transferred in any Fiscal
Year, the items of income, gain, loss, deduction and credit allocable to such Interest for such Fiscal Year shall be apportioned
between the transferor and the transferee in proportion to the number of days in such Fiscal Year the Interest is held by each
of them, except that, if they agree between themselves and so notify the Tax Matters Partner within 30 days after the transfer,
then at their option and expense, (i) all items or (ii) extraordinary items, including capital gains and losses, may be allocated
to the Person who held the Interest on the date such items were realized or incurred by the Company.

 

Section
4.3. Allocations for Income Tax Purposes. The income, gains, losses, deductions and credits of the Company for Federal,
state and local income tax purposes shall be allocated in the same manner as the corresponding items included in the computation
of Net Income and Net Loss were allocated pursuant to Sections 4.1 and 4.2; provided that solely for Federal, state
and local income and franchise tax purposes and not for book or Capital Account purposes, income, gain, loss and deduction with
respect to property properly carried on the Company’s books at a value other than its tax basis shall be allocated in accordance
with the requirements of Code section 704(c) and Regulation § 1.704-3. Notwithstanding the foregoing, the Tax Matters Partner
in its reasonable discretion shall make such allocations solely for tax purposes as may be needed to ensure that allocations are
in accordance with the interests of the Members, within the meaning of the Code and Regulations.

 

    	 	8	 

     

    

 

Section
4.4. Withholding. To the extent that the Company is required to withhold and pay over any amounts to any governmental authority
with respect to distributions or allocations to any Member, the amount withheld shall be treated as a distribution to that Member.
In the event of any claimed over-withholding, Members shall be limited to an action against the applicable jurisdiction and not
against the Company (unless the Company has not yet paid such amounts over to such jurisdiction). If any amount required to be
withheld was not, in fact, actually withheld from one or more distributions, the Company may (i) require such Member to reimburse
the Company for the corresponding withholding payments made by the Company or (ii) reduce any subsequent distributions to such
Member by the amount of such withholding payments, in each case plus reasonable interest. Each Member agrees to furnish the Company
with such documentation as shall reasonably be requested by the Company to assist it in determining the extent of, and in fulfilling,
its withholding obligations. Each Member will indemnify the Tax Matters Partner and the Company against any losses and liabilities
(including interest and penalties) related to any withholding obligations with respect to allocations or distributions made to
such Member by the Company. At the request of any Member, the Company will use commercially reasonable efforts to take such action
as is requested to minimize the amount that the Company is required to withhold with respect to such Member; provided,
that the foregoing shall not be deemed to prohibit the Company from making distributions.

 

ARTICLE
V

DISTRIBUTIONS

 

Section
5.1. Distributions Generally. Subject to Sections 5.2, 5.3 and 5.4, the Company shall make distributions
to the Members at such times and in such amounts as the Board shall determine, in its sole discretion, as follows:

 

(a)
Returned Capital. Returned Capital attributable to any Sponsored Fund shall be distributed to the Members in proportion
to their respective SF Seed Capital Contributions with respect to such Sponsored Fund.

 

(b)
Revenue Share Proceeds. Revenue Share Proceeds with respect to any Underlying Manager and the related Sponsored Fund Transaction
shall be distributed to the Members as follows:

 

(i)
first, 100% to each Member in proportion to its Operating Capital Contributions until such Member has received pursuant to this
Section 5.1(b)(i) cumulative distributions (taking into account all prior distributions made or deemed made to such Member
pursuant to this clause (i)) equal to its aggregate Operating Capital Contributions;

 

(ii)
second, 100% to each Member in proportion to its SF Working Capital Contributions with respect to such Underlying Manager and
Sponsored Fund Transaction until such Member has received pursuant to this Section 5.1(b)(ii) cumulative distributions
(taking into account all prior distributions made or deemed made to such Member pursuant to this clause (ii)) equal to its aggregate
SF Working Capital Contributions;

 

(iii)
third, 100% to each Member until it has received, without duplication, distributions pursuant to this Section 5.1(b)(iii)
equal to a five percent (5%) per annum cumulative return, compounded annually on the weighted daily average of the unreturned
amounts set forth in clause (ii) above; and

 

    	 	9	 

     

    

 

(iv)
thereafter, to the Members in proportion to their Percentage Interests.

 

In
the event that distributions are made in kind, each Member shall receive its pro rata share of such distribution in kind,
and such distribution shall be based on the amount such Member would have received if the asset being distributed were liquidated
for its Distribution Value, unless otherwise agreed between the Board and such Member.

 

Section
5.2. Tax Distributions. Subject to the limitations on distributions set forth herein (including Sections 5.3 and
5.4), the Company shall, to the extent of available cash, make tax distributions (“Tax Distributions”)
to each Member with respect to each Fiscal Year, in an aggregate amount equal to the sum of:

 

(a)
the excess of (i) the aggregate Presumed Tax Liability of such Member for such Fiscal Year attributable to Capital Income allocated
to such Member over (ii) the aggregate amount of distributions of Returned Capital to such Member during such Fiscal Year (not
including any Tax Distribution with respect to a prior Fiscal Year); and

 

(b)
the excess of (i) the aggregate Presumed Tax Liability of such Member for such Fiscal Year attributable to Net Income (other than
Capital Income) allocated to such Member over (ii) the aggregate amount of Revenue Share Proceeds distributed to such Member during
such Fiscal Year (not including any Tax Distribution with respect to a prior Fiscal Year).

 

Any
distributions pursuant to clause (a) shall be deemed to be advances of distributions to be made pursuant to Section
5.1(a) and any distributions pursuant to clause (b) shall be deemed to be advances of distributions to be made pursuant
to Section 5.1(b).

 

Section
5.3. Limitations on Distributions.

 

(a)
Notwithstanding anything herein to the contrary:

 

(i)
no distribution shall be made that would violate the Act or other applicable law; and

 

(ii)
no distribution shall be made that would violate the terms of any agreement or any other instrument to which the Company is a
party.

 

(b)
The Company shall make all such distributions as soon as such distributions are no longer prohibited by Section 5.3(a).

 

Section
5.4. Reserves. The Board may cause the Company to establish such reserves as the Board deems reasonably necessary for any
contingent or unforeseen Company liabilities (including any “clawback” obligation of the Company to recontribute profits
previously distributed from an Underlying Manager). For the avoidance of doubt, any reserves shall be applied on a pro rata
basis among the Members based on the amounts otherwise distributable to them. At the expiration of such period as shall be
deemed advisable by the Board, the balance remaining in any reserve account(s) shall be distributed to the Members who, in the
reasonable determination of the Board, would have received such amounts had they not been reserved in the first instance.

 

    	 	10	 

     

    

 

ARTICLE
VI

BOOKS
OF ACCOUNT, RECORDS

AND
REPORTS; FISCAL YEAR

 

Section
6.1. Books and Records. The Company shall keep proper and complete records and books of account in which shall be entered
fully and accurately all transactions and other matters relating to the Company’s business as are customarily entered into
records and books of account maintained by Persons engaged in businesses of a like character, including the Capital Account established
for each Member. The Company books and records shall be kept in accordance with generally accepted accounting principles in the
United States (or such other method as may be approved by the Board). The Company books and records shall at all times be maintained
at the principal office of the Company and shall be open during reasonable business hours to the inspection and examination of
the Members or their duly authorized representatives for any proper purpose relating to their status as Members at the sole cost
and expense of the inspecting or examining Member and upon reasonably advance notice. The Company shall maintain at its principal
office and make available to the Members or their duly authorized representatives a list of the names and addresses of all Members.

 

Section
6.2. Reports. The Company shall send to each Person who was a Member at any time during each Fiscal Year as soon as reasonably
practicable following the end of such Fiscal Year a report setting forth in sufficient detail such information as shall enable
such Person to prepare its federal income tax returns in accordance with the applicable laws, rules and regulations then prevailing.

 

Section
6.3. Fiscal Year. The fiscal year of the Company (the “Fiscal Year”) shall be the calendar year; provided
that the first Fiscal Year began on the date that the Certificate was filed with the Secretary of State of the State of Delaware,
and the last Fiscal Year shall end on the date on which the Company is terminated.

 

ARTICLE
VII

POWERS,
RIGHTS AND DUTIES OF THE MEMBERS

 

Section
7.1. Limitations. Except as expressly required by the Act or as expressly provided in this Agreement, the Members shall
not participate in the management or control of the Company’s business nor shall they transact any business for the Company,
nor shall they have the power to act for or bind the Company, or otherwise vote on any matter affecting the Company or its business,
said powers being vested solely and exclusively in the Board and the Persons, if any, to whom the Board delegates such powers
in accordance with the provisions of this Agreement.

 

Section
7.2. Liability. Subject to the provisions of the Act, no Member shall be liable for the repayment, satisfaction or discharge
of any liabilities of the Company except to the extent of the balance of its Capital Account.

 

Section
7.3. Priority. Except as otherwise set forth in this Agreement, no Member shall have priority over any other Member as
to Company property, allocations or distributions.

 

    	 	11	 

     

    

 

ARTICLE
VIII

POWERS,
RIGHTS AND DUTIES OF THE BOARD

 

Section
8.1. Authority. Subject to the limitations provided in this Agreement and except as specifically contemplated by this Agreement,
the Board shall have exclusive and complete authority and discretion to manage the operations and affairs of the Company and to
make all decisions regarding the business of the Company. Except as otherwise specifically provided herein, the Board shall have
all rights and powers in the management of the Company business to do any and all other acts and things necessary, proper, convenient
or advisable to effectuate the purposes of this Agreement. Each Person that is appointed as a Manager is hereby designated as
a “manager” of the Company for purposes of the Act. Any action taken by the Board collectively in accordance with
this Article VIII shall constitute the act of and serve to bind the Company. Except as set forth herein or unless expressly
authorized by the Board pursuant to Section 8.3, no action taken by any Manager individually shall constitute the act of
or serve to bind the Company. In dealing with the Board acting on behalf of the Company, no Person shall be required to inquire
into the authority of such Board to bind the Company. Persons dealing with the Company are entitled to rely conclusively on the
power and authority of the Board as set forth in this Agreement.

 

Section
8.2. Appointment and Term of Managers. The Board shall consist of four Managers. FGI and PIH shall each have the right
to appoint two of the four Managers (the “Managers”). The Board shall from time to time by majority vote elect
one or more Chairmen of the Board (each, a “Chairman of the Board”) who shall preside at all meetings of the
Board and shall have such other powers and duties as may be delegated to him or her by the Board. Each Manager shall hold office
from the time of his, her or its appointment until his, her or its resignation or removal. Any Member appointing a Manager may
at any time with or without cause remove any Manager appointed by it and may appoint a successor Manager by written notice to
the other Member. Any Manager may resign at any time upon written notice to the Company. Any such resignation shall take effect
at the time specified therein or, if the time be not specified, upon receipt thereof, and the acceptance of such resignation,
unless required by the terms thereof, shall not be necessary to make such resignation effective. Managers may receive compensation
for services to the Company in their capacities as Managers or otherwise in such manner and in such amounts as may be fixed from
time to time by the unanimous approval of the Members. Managers shall be reimbursed by the Company for any reasonable out-of-pocket
expenses incurred in connection with attending any meeting of the Board.

 

Section
8.3. Meetings; Quorum; Voting.

 

(a)
Meetings of the Board, regular or special, may be held at any place within or without the State of Delaware. Managers may participate
in a meeting of the Board by means of conference telephone or similar communications equipment by means of which all persons participating
in the meeting can hear each other, and participation in a meeting by such means shall constitute presence in person at such meeting.
The Board may fix times and places for regular meetings of the Board and no notice of such meetings need be given. A special meeting
of the Board shall be held whenever called by any Manager then in office, at such time and place as shall be specified in the
notice or waiver thereof. Notice of each special meeting and the purpose thereof shall be given by the person calling the meeting
to each Manager personally or by faxing and telephoning the same not later than three Business Days before the meeting.

 

(b)
Managers having the ability to approve a certain action pursuant to the voting requirements of Section 8.3(c) shall constitute
a quorum of the Board for the purposes of taking such action. Any action required or permitted to be taken at any meeting of the
Board may be taken without a meeting if Managers having the ability to approve a certain action pursuant to the voting requirements
of Section 8.3(c) to take such action on behalf of the Company consent thereto in writing; provided that any request for
such a written consent is simultaneously delivered to all Managers.

 

    	 	12	 

     

    

 

(c)
Except as otherwise expressly provided by this Agreement, any proposed vote, consent or action by the Board shall require the
favorable vote, consent or approval of a majority of the Managers.

 

(d)
Each Manager entitled to vote at a meeting of the Board may authorize another person or persons to act for him or her by proxy.
Each proxy shall be signed by the Manager giving such proxy.

 

Section
8.4. Officers, Agents and Employees; Committees of the Board.

 

(a)
Appointment and Term of Office. The Board may appoint, and may delegate power to appoint, such officers, agents and employees
as it may deem necessary or proper, who shall hold their offices or positions for such terms, have such authority and perform
such duties as may from time to time be determined by or pursuant to authorization of the Board. Except as may otherwise be prescribed
by the Board in a particular case, all such officers, agents and employees shall hold their offices at the pleasure of the Board
for an unlimited term and need not be reappointed annually or at any other periodic interval. Any action taken by an officer,
agent or employee of the Company pursuant to authorization of the Board shall constitute the act of and serve to bind the Company.
Persons dealing with the Company are entitled to rely conclusively on authority of such officers, agents or employees set forth
in the authorization of the Board.

 

(b)
Resignation and Removal. Any officer may resign at any time upon written notice to the Company. Unless otherwise agreed,
any officer, agent or employee of the Company may be removed by the Board with or without cause at any time.

 

(c)
Committees of the Board. The Board may from time to time designate one or more committees, each committee to consist of
one or more Managers of the Company. The Board may designate one or more Managers as alternate members of any committee, who may
replace any absent or disqualified member at any meeting of the committee. Any such committee, to the extent provided in the resolution
of the Board, shall have and may exercise all the powers and authority of the Board in the management of the business and affairs
of the Company and may take any action required or permitted to be taken by the Board under this Agreement; provided, that,
unless otherwise set forth in a board resolution, the Managers on such committee would have the ability to cause the Board to
take such action pursuant to the voting requirements of Section 8.3. Any such committee may adopt rules governing the method
of calling and time and place of holding its meetings. Managers that are not members of a specific committee of the Board shall
have the right to attend meetings of such committee but will have no right to vote on any matter presented at any such meeting.
Any or all members of any such committee may be removed, with or without cause, by resolution of the Board.

 

Section
8.5. Company Funds. Company funds shall be held in the name of the Company and shall not be commingled with those of any
other Person. Company funds shall be used only for the business of the Company.

 

    	 	13	 

     

    

 

Section
8.6. Other Activities; Transactions with Affiliates.

 

(a)
None of the Members, Managers or any of their respective Affiliates shall be required to manage the Company as its, his or her
sole and exclusive function. Except as set forth in Section 8.6(b), nothing contained in this Agreement shall be deemed
to preclude any Member or Manager or any shareholder, Affiliate, officer, director, member, employee or agent of any Member or
Manager from engaging in or pursuing, directly or indirectly, any interest in other business ventures of every kind, nature or
description, independently or with others, whether such ventures are competitive with the business of the Company or otherwise,
and, without limiting the foregoing but subject to Section 8.6(b), each Member, Manager and any shareholder, Affiliate,
officer, director, member, employee or agent of any Member or Manager shall be entitled to serve as the general partner (or the
equivalent) of or manage any other partnership, company or account of any kind whether or not such other partnership, company
or account engages in the same activities as the activities of the Company. Each Member authorizes, consents to and approves of
such present and future activities by such Persons. Neither the Company nor any Member shall have any right by virtue of this
Agreement or the Company relationship created hereby in or to other ventures or activities of the other Members or to the income
or proceeds derived therefrom.

 

(b)
Neither FGI nor any of its Affiliates shall participate in a transaction that would otherwise constitute a Sponsored Fund Transaction
(an “Opportunity”) other than through the Company, unless FGI has first presented the Opportunity to the Company
and either the Board or PIH has rejected the Opportunity. Notwithstanding the foregoing, if the Opportunity requires in excess
of $5 million in SF Seed Capital, FGI may offer amounts in excess of $5 million to a third party (including Affiliates or beneficial
owners of FGI); provided, that the terms offered to such third party are no more favorable than the terms offered to the
Company, unless the third party invests more capital in the Opportunity than the Company.

 

(c)
Nothing in this Agreement shall preclude the Company from contracting for the performance of services by or purchasing or leasing
any property from any Member or any Affiliate of a Member, provided that either (i) the transaction has been approved by the Members
and the compensation, price or rental therefor is competitive with the compensation, price or rental paid to other Persons in
the area engaged in the business of rendering comparable services or selling or leasing comparable property that could reasonably
be made available to the Company or (ii) the transaction is contemplated by this Agreement. Nothing herein contained shall be
construed as a guarantee by any such Member of the performance by any such Affiliate of its obligations under any contract between
any such Affiliate and the Company. Subject to the provisions of this Section 8.6 and Section 8.7, any Member and
any Affiliate of a Member may be employed or retained by the Company in any capacity. Except as provided in this Section 8.6
and in Section 8.7, the validity of any transaction, agreement or payment involving the Company and any Member or any
Affiliate of a Member otherwise permitted by this Agreement shall not be affected by reason of the relationship between any Member
and such Affiliate or the approval of such transaction, agreement or payment by the Members.

 

(d)
It is acknowledged and understood that FGI is a registered investment adviser engaged in the business of managing private investment
funds and that affiliates of FGI provide investment advisory and wealth management services to high net worth individuals, and
as a result, that situations may arise in which the interests of the Company, on the one hand, may conflict with the interests
of FGI and its Affiliates, on the other hand. No activity by FGI or any of its Affiliates in connection with managing private
investment funds (including with respect to the allocation of investment opportunities) shall be considered a violation of any
duty (including any fiduciary duty) that may be owed by FGI (or any of its designated Managers) to the Company or PIH. Without
limiting the generality of the foregoing, it is understood and agreed that it is intended that (1) Underlying Managers will engage
one or more Affiliates of FGI to provide trade execution and other fund management services and shall compensate such Affiliates
of FGI in a manner approved by the Board (including a majority of the Managers appointed by PIH), (2) Underlying Managers may
be “relying advisors” of FGI and (3) portfolio managers of Underlying Managers may be employees of an Affiliate of
FGI. In connection with any conflict of interest (including any affiliate transaction) that is not contemplated by this Agreement
and that involves a transaction between the Company or an Underlying Manager, on the one hand, and FGI or one of its Affiliates,
on the other hand, FGI may consult the Board with respect to any such conflict of interest. Provided that FGI fully discloses
all material facts related to such conflict, if the Board (including a majority of the Managers appointed by PIH) waives any such
conflict of interest or prescribes standards or procedures with which FGI and/or its Affiliates comply, then neither FGI (or any
of its designated Managers) shall have any liability to the Company or PIH for any actions giving rise to such conflict of interest.

 

    	 	14	 

     

    

 

Section
8.7. Limits on the Power of the Board. Anything in this Agreement to the contrary notwithstanding, no action shall be taken
by the Board, or by any Manager, officer, agent or employee of the Company, without the written consent or ratification of the
specific act by all of the Members, which would cause or permit the Company to:

 

(a)
enter into a Sponsored Fund Transaction, including agreeing to fund any SF Seed Capital and/or SF Working Capital requirements
in connection therewith;

 

(b)
start or acquire a new business (other than in connection with a Sponsored Fund Transaction approved in accordance Section
8.7(a));

 

(c)
admit a new Member to the Company other than in accordance with Article IX or require any Operating Capital Contributions by the
Members;

 

(d)
remove any Member from the Company;

 

(e)
make any fundamental corporate changes to the Company’s structure (including any recapitalization or other restructuring
thereof);

 

(f)
merge or consolidate with or into, or sell substantially all of its assets to, any other Person.

 

(g)
commence (or agree to settle) any legal action on behalf of the Company;

 

(h)
modify the accounting procedures or internal controls of the Company;

 

(i)
change the tax classification of the Company for U.S. tax purposes;

 

(j)
make any public statements about the Company;

 

(k)
make any material changes to the scope or nature of the Company’s business;

 

(l)
amend and restate any employment agreements or service contracts in respect of the Company;

 

(m)
acquire another business;

 

(n)
settle or compromise any audit or litigation relating to the Company’s tax matters;

 

(o)
enter into any agreement that is or purports to be binding upon any Member;

 

(p)
enter into any transactions or agreements with any Member or its Affiliates except as contemplated by this Agreement; and

 

(q)
amend this Agreement in accordance with Section 13.1.

 

    	 	15	 

     

    

 

Section
8.8. Tax Audits.

 

(a)
For purposes of this Agreement, the “Tax Matters Partner” shall be PIH as long as it remains a Member. The
Board shall have the authority to appoint a replacement or successor Tax Matters Partner. To the extent authorized or permitted
under applicable law, the Tax Matters Partner (with the consent of the Board) shall represent the Company and each Member in connection
with any audit or other tax proceeding relating to the Company’s affairs. The Tax Matters Partner shall notify the Members
and keep them reasonably informed in the event of any material audit or tax proceeding. Each Member agrees to cooperate with the
Tax Matters Partner and the Board and to do or refrain from doing any and all such things reasonably required by the Tax Matters
Partner or the Board to conduct such proceedings

 

(b)
For purposes of the Code provisions enacted under the Bipartisan Budget Act of 2015 (and any Regulations or administrative guidance
promulgated thereunder), the Tax Matters Partner (with the consent of the Board) is hereby authorized to (i) allocate any audit
adjustments or assessments among the Members (or former Members) as it reasonably determines to be appropriate and permitted under
such provisions; and (ii) make (or cause to be made) any election available to the Company under such provisions, including to
issue statements of adjustment (under Section 6226(a) of such provisions) reflecting such allocations to any person who was a
Member during the taxable year under audit. Any imputed underpayment amount allocated to a Member (or former Member) as a result
of such audit shall be treated as an amount deemed distributed to, and indemnifiable by, such Member, consistent with Section
4.4 hereof. The Tax Matters Partner shall act as the “Partnership Representative” for each taxable year
of the Company in accordance with Code section 6223(a). The Partnership Representative shall have the sole authority to participate
in any Federal income tax audit, or litigation stemming from an audit, of such taxable year. Subject to Section 8.7(n),
actions taken and decisions made by the Partnership Representative (with the consent of the Board) shall be binding upon the Company
and each Member. All reasonable expenses incurred by the Partnership Representative or the Board in connection with any tax audit,
investigation, settlement or review shall be borne by the Company. The provisions of this Section 8.8(b) shall survive
the termination of a Member’s Interest, this Agreement, and the Company, and shall remain binding on each Member for the
period of time necessary to resolve with the Internal Revenue Service all income tax matters relating to the Company and for Members
to satisfy their indemnification obligations, if any.

 

Section
8.9. Exculpation. No Manager, Member, officer, agent or employee of the Company nor any of their respective Affiliates
(other than the Company) shall be liable for the return of any portion of the Capital Contributions (or any return thereon) of
any Member. The return of such Capital Contributions (or any return thereon) shall be made solely from the Company’s assets.
No Manager, Member, officer, agent or employee of the Company shall be required to pay to the Company or to any Member any deficit
in the Capital Account of any Member upon dissolution of the Company or otherwise. No Member shall have the right to demand or
receive property other than cash in respect of its Interest. No Manager, Member, officer, agent or employee of the Company nor
any of their respective Affiliates shall be personally liable, responsible or accountable in damages or otherwise to the Company
or any Member for any claims, demands, costs, liabilities and expenses, including amounts paid in satisfaction of judgments, awards,
settlement, in compromise or as fines and penalties, and reasonable attorneys’ fees and other costs or expenses incurred
in connection with the defense of any actual or threatened action, proceeding or claim incurred (“Losses”)
as a result of any act or failure to act by such Person on behalf of the Company that such Person reasonably believed at the time
was in the best interests of the Company unless there has been a determination by a final decision on the merits by a court or
other body of competent jurisdiction that such Losses resulted from such Person’s bad faith, fraud, gross negligence, reckless
disregard or willful misconduct.

 

    	 	16	 

     

    

 

Section
8.10. Indemnification of the Members.

 

(a)
The Company shall indemnify and hold harmless the Managers, the Members, their Affiliates and their respective members, partners,
officers, directors, employees and agents (each, an “Indemnified Party”), from and against any Losses suffered
or sustained by an Indemnified Party, by reason of any acts, omissions or alleged acts or omissions arising out of such Indemnified
Party’s activities on behalf of the Company or in furtherance of the interests of the Company, except that the Company shall
not be responsible under this Section 8.10(a) to an Indemnified Party for any Losses to the extent such Losses have been
determined by a final decision on the merits by a court or other body of competent jurisdiction to have resulted from such Indemnified
Party’s bad faith, fraud, gross negligence, reckless disregard or willful misconduct. Notwithstanding the indemnification
provided in this Section 8.10, the Company may, but shall not be obligated to, carry such liability insurance for its Managers
and officers as the Board determines necessary or appropriate.

 

(b)
Expenses (including attorneys’ fees) incurred by an Indemnified Party in a civil or criminal action, suit or proceeding
shall be paid by the Company in advance of the final disposition of such action, suit or proceeding, as incurred; provided
that if an Indemnified Party is advanced such expenses and it is later determined that such Indemnified Party was not entitled
to indemnification with respect to such action, suit or proceeding, then such Indemnified Party shall reimburse the Company for
such advances; and provided, further, such expenses shall be advanced by the Company only upon the execution and
delivery by the Indemnified Party of a recourse promissory note, in a principal amount equal to the amount of the requested advance,
to the Company, having a payment date of 10 Business Days following the final disposition of the action, suit or proceeding with
respect to which such advance is being requested in order to secure the return following final disposition of the action, suit
or proceeding with respect to which such advance is being requested, of any amount which represents an advance of expenses for
which the Indemnified Party is not entitled to indemnification under this Section 8.10.

 

(c)
No Indemnified Party shall be entitled to any punitive, consequential, special, or exemplary damages.

 

(d)
All covered Losses shall be net of insurance recoveries from insurance policies of the Company to the extent that any proceeds
of such policies, less any costs, expenses or premiums incurred by the Company in connection therewith, are distributed by the
Company to an Indemnified Party.

 

Section
8.11. Expenses. The Company shall pay all expenses related to the operations of the Company. Each Member shall be entitled
to reimbursement (without interest) for any such documented expenses paid by such Member for or on behalf of the Company.

 

    	 	17	 

     

    

 

ARTICLE
IX

TRANSFERS
OF INTERESTS BY MEMBERS

 

Section
9.1. General.

 

(a)
No Member may sell, assign, pledge or in any manner dispose of, or create, or suffer the creation of, a security interest in or
any encumbrance on all or any portion of its Interest (any such act being referred to as a “Transfer,” any
Person who effects a Transfer being referred to as a “Transferor” and any Person to which a Transfer is effected
being referred to as a “Transferee”), without the prior written consent of the other Members, which consent
may be given or withheld in the other Members’ sole discretion and may include such terms and conditions as the other Members
may deem appropriate in its sole discretion; provided that a Member shall have the right to Transfer 100% of its Interest
to an Affiliate thereof without the consent of any other Member. In connection with any Transfer, the Transferor shall deliver
to the Company and the Board a fully executed copy of certain transfer documents relating to the Transfer, in form and substance
satisfactory to the Board, executed by both the Transferor and the Transferee, and the agreement in writing of the Transferee
to (i) be bound by any terms imposed upon such Transfer by the other Members and by the terms of this Agreement; and (ii) assume
all obligations of the Transferor under this Agreement relating to the Interest that is the subject of such Transfer. No Transfer
of an Interest shall be effective until such date as all requirements of this Article IX in respect thereof have been satisfied.
Any Transfer or purported Transfer not made in accordance with this Agreement (a “Void Transfer”) shall be
null and void and of no force or effect whatsoever. Any amounts otherwise distributable to a Member pursuant to Article V,
in respect of a direct or indirect interest in the Company that has been Transferred in violation of this Section 9.1(a),
may be withheld by the Company following the occurrence of a Void Transfer until the Void Transfer has been rescinded, whereupon
the amount withheld shall be distributed without interest to the Member that initially made such Void Transfer.

 

(b)
A Transferee shall be admitted to the Company as a substituted Member upon the request of the Transferor and the approval of the
Board. Unless a Transferee is admitted as a substituted Member pursuant to this Section 9.1(b), such Transferee shall have
none of the powers of a Member hereunder and shall only have such rights of an assignee under the Act as are consistent with the
other terms and provisions of this Agreement.

 

(c)
Upon the Transfer of the entire Interest of a Member and effective upon the admission of such Member’s Transferee(s) to
the Company pursuant to Section 9.1(b) above, the Transferor shall be deemed to have withdrawn from the Company as a Member.

 

(d)
The Company shall reflect each Transfer and admission authorized under this Article IX in the books and records of the
Company, including Schedule A hereto.

 

(e)
Notwithstanding anything in this Agreement to the contrary, no Member may Transfer an Interest if such Transfer would (i) violate
or cause the Company to violate any applicable Federal or state securities law, rule or regulation (or conflict with any applicable
exemption from registration under such securities law), (ii) cause the Company to be treated as an association taxable as a corporation
for Federal income tax purposes, (iii) cause the Company to fail to qualify for the safe harbor from “publicly traded partnership”
status set forth in Regulations §1.7704-1(h) or (iv) require the Company to register as an investment company under the Investment
Company Act of 1940, as amended. Any such purported Transfer shall be null and void and of no force or effect whatsoever.

 

Section
9.2. Consequences of Transfers Generally.

 

(a)
In the event of any Transfer permitted under this Article IX, the Transferor and the Interest that is the subject of such
Transfer shall remain subject to all of the terms and provisions of this Agreement, and the Transferee shall hold such Interest
subject to all unperformed obligations of the Transferor and shall agree in writing to the foregoing if requested to do so by
the Board. Any successor or Transferee hereunder shall be subject to and bound by all the terms and provisions of this Agreement
as if a Member originally a party to this Agreement.

 

    	 	18	 

     

    

 

(b)
Unless a Transferee becomes a substituted Member, such Transferee shall have no right to obtain or require any information concerning,
or any account of, Company transactions, or to inspect the Company’s books, or to vote on Company matters. Such a Transfer
shall entitle the Transferee only to receive the share of distributions, income and losses to which the transferring Member otherwise
would be entitled. Each Member agrees that such Member will, upon request of the Board, execute such certificates or other documents
and perform such other acts as the Board may deem necessary or advisable after a Transfer of all or a part of that Member’s
Interest (whether or not the Transferee becomes a substituted Member) to preserve the limited liability of the Members under the
laws of the jurisdictions in which the Company is doing business.

 

(c)
Neither the Transfer of an Interest nor the admission of a substituted Member shall be cause for dissolution of the Company.

 

Section
9.3. Transferee to Succeed to Transferor’s Capital Account. Any Transferee pursuant to the provisions of this Article
IX shall succeed to the Capital Account (or portion thereof) so Transferred to such Person.

 

Section
9.4. Right of First Refusal. In the event that any Member intends to Transfer all or a portion of its Interests to a third
party pursuant to Section 9.1, except for Transfers to such Member’s Affiliates, such Member shall, subject to any
additional notice period as may be required by the following sentence, first provide the Board with thirty (30) days’ written
notice setting forth the terms and conditions of such Transfer prior to making such offer. During such thirty (30) day period,
such Member shall provide the other Members with thirty (30) days’ written notice prior to making the Transfer (the “ROFR
Notice”). During such thirty (30) day period (the “ROFR Period”), such Members shall have the exclusive
right to negotiate the sale or transfer of all or any portion such Interests for their own account. If such sale or transfer of
Interests is not agreed within the ROFR Period, such Member may then offer and sell such Interests to a third party. Within two
(2) days after the expiration of the ROFR Period, the selling Member shall provide a notice to the Company and each Member setting
forth the final proposed amount of Interests to be sold to a third party after the exercise of rights by the Members pursuant
to this Section 9.4.

 

Section
9.5. Additional Filings. Upon acceptance of a Transferee for admission as a substituted Member under Section 9.1(b),
the Company shall cause to be executed, filed and recorded with the appropriate governmental agencies such documents (including
amendments to this Agreement, if necessary) as are required to accomplish such admission.

 

ARTICLE
X

WITHDRAWAL
OF MEMBERS; TERMINATION OF THE COMPANY;

LIQUIDATION
AND DISTRIBUTION OF ASSETS

 

Section
10.1. Withdrawal or Removal of Members. Subject to the provisions of Article IX, no Member shall at any time retire
or withdraw from the Company. Any Member retiring or withdrawing in contravention of this Section 10.1 shall indemnify,
defend and hold harmless the Company and all other Members from and against any losses, expenses, judgments, fines, settlements
or damages suffered or incurred by the Company or any other Member arising out of or resulting from such retirement or withdrawal.
No transfer of all or a portion of a Member’s interest in accordance with Article IX shall constitute a retirement
or withdrawal within the meaning of this Section 10.1.

 

Section
10.2. Dissolution of the Company.

 

(a)
Except as expressly provided herein or as otherwise required by the Act, the Members shall have no power to dissolve the Company.
The Company shall be dissolved, wound up and terminated as provided herein upon the first to occur of the following:

 

(i)
the bankruptcy or dissolution of either Member;

 

    	 	19	 

     

    

 

(ii)
entry of a decree of judicial dissolution of the Company under Section 18-802 of the Act; or

 

(iii)
the determination to do so by either Member following 180 days’ prior written notice given to the other Member.

 

(b)
In the event of the dissolution of the Company, a liquidating agent or committee appointed by the Board (the “Liquidator”),
shall commence to wind up the affairs of the Company and to liquidate the Company’s assets. The Members shall continue to
share all income, losses and distributions of the Company during the period of liquidation in accordance with Articles IV
and V. The Liquidator shall have full right and discretion to determine the time, manner and terms of any sale or sales
of Company assets pursuant to such liquidation, giving due regard to the activity and condition of the relevant markets and general
financial and economic conditions.

 

(c)
The Liquidator shall have all of the rights and powers with respect to the assets and liabilities of the Company in connection
with the liquidation and termination of the Company that the Board would have with respect to such assets and liabilities during
the term of the Company, and the Liquidator is hereby expressly authorized and empowered to execute any and all documents that
the Liquidator considers to be necessary or advisable in order to effectuate the liquidation and termination of the Company and
the transfer of any assets belonging to the Company.

 

(d)
Notwithstanding the foregoing, if the Liquidator is not a Member, it shall not be deemed a Member and shall not have any of the
interests in the Company of a Member; and the Liquidator shall be compensated by the Company for its services to the Company at
normal, customary and competitive rates.

 

Section
10.3. Distribution in Liquidation.

 

(a)
The Liquidator shall, as soon as practicable following an event giving rise to the dissolution, winding up and termination of
the Company, wind up the affairs of the Company and sell and/or distribute the assets of the Company. The assets of the Company
shall be applied in the following order of priority:

 

(i)
first, to pay the costs and expenses of the dissolution, winding up and termination of the Company;

 

(ii)
second, to creditors of the Company (other than any Members in their capacity as Members but including any liabilities to the
Members for any expenses of the Company paid by the Members or their Affiliates, to the extent the Members are entitled to reimbursement
hereunder) in the order of priority provided by law;

 

(iii)
third, to establish reserves reasonably adequate to meet any and all contingent or unforeseen liabilities or obligations of the
Company; provided, however, that all or part of the balance of such reserves shall be distributed as hereinafter provided from
time to time as the Liquidator may deem appropriate in view of the satisfaction, elimination or reduction of such contingencies
and obligations and the reserves deemed prudent by the Liquidator to cover unforeseen liabilities;

 

    	 	20	 

     

    

 

(iv)
fourth, to the Members for loans, if any, made by them to the Company; and

 

(v)
fifth, to the Members in accordance with Section 5.1.

 

(b)
If the Liquidator determines that Company assets other than cash are to be distributed, then the fair value of such assets shall
be determined. Any such assets shall be retained or distributed by the Liquidator as follows:

 

(i)
The Liquidator shall retain assets belonging to the Company having a value (net of any associated liabilities) equal to the amount
by which the net proceeds of the Company’s assets are insufficient to satisfy the requirements of paragraphs (i),
(ii), (iii) and (iv) of Section 10.3(a); and

 

(i)
The remaining assets belonging to the Company shall be distributed to the Members in the manner specified in paragraph (v) of
Section 10.3(a).

 

The
Liquidator shall distribute to each Member its allocable share of each asset belonging to the Company that is distributed in kind
unless all Members otherwise agree. Any distributions in kind shall be subject to such conditions relating to the disposition
and management thereof as the Liquidator deems reasonable and equitable.

 

Section
10.1. Final Statement of Assets and Liabilities. Within a reasonable time following the completion of the liquidation of
the Company’s assets, the Liquidator shall deliver to each of the Members a statement, audited by the Company’s accountant,
which shall set forth the assets and liabilities of the Company as of the date of complete liquidation and the distributions due
or made to each Member’s from the Company pursuant to Section 10.3.

 

Section
10.2. No Deficit Restoration Obligation. Notwithstanding any other provision of this Agreement to the contrary, no Member
shall have any liability to restore any deficit in its Capital Account, whether upon liquidation of the Company or otherwise.
In addition, no allocation to any Member of any loss shall create any asset of or obligation to the Company, even if such allocation
creates or increases a deficit in such Member’s Capital Account; and no Member shall be obligated to pay the amount of any
such deficit to or for the account of the Company or any creditor of the Company. The obligations of any Member to make Capital
Contributions pursuant to Article III are for the exclusive benefit of the Company and not of any creditor of the Company.

 

Section
10.3. Termination of the Company. The Company shall terminate when all property owned by the Company shall have been disposed
of and the assets of the Company shall have been distributed as provided in Section 10.3. The Liquidator shall then execute
and cause to be filed a certificate of cancellation of the Company.

 

ARTICLE
XI

ADMISSION
OF ADDITIONAL MEMBERS

 

Section
11.1. Admission of Additional Members. One or more Persons may be admitted as additional Members (each, an “Additional
Member”), upon such terms as the Board shall determine in its sole discretion, only with the prior written approval
of all of the Members. Each Additional Member shall execute such documentation as may be requested by the Board pursuant to which
such Additional Member agrees to be bound by the terms and provisions of this Agreement. The Company shall reflect each admission
authorized under this Article XI by preparing an amendment to this Agreement, including Schedule A, dated as of
the date of such admission to reflect such admission.

 

    	 	21	 

     

    

 

ARTICLE
XII

NOTICES
AND VOTING

 

Section
12.1. Notices. All notices, demands or requests required or permitted under this Agreement must be in writing, and shall
be made by hand delivery, certified mail, Federal Express or a similarly reputable overnight courier service or other electronic
means to the address set forth on Schedule A hereto for the Member receiving such notice, demand or request, but any Member
may designate a different address by a notice similarly given to the Company and each other Member. Any such notice or communication
shall be deemed given: (a) when delivered by hand, if delivered on a Business Day; (b) the next Business Day after delivery by
hand if delivered by hand on a day that is not a Business Day; (c) four Business Days after being deposited in the United States
mail by certified mail; (d) on the next Business Day after being deposited for next day delivery with Federal Express or by a
similar reputable overnight courier service; (e) when receipt is confirmed, if faxed or delivered by other electronic means on
a Business Day; and (f) the next Business Day after the day on which receipt is confirmed, if faxed or delivered by other electronic
means on a day that is not a Business Day.

 

Section
12.2. Voting. Any action requiring the affirmative vote of the Members under this Agreement may, unless otherwise specified
herein, be taken by vote at a meeting or, in lieu thereof, by written consent of the Members holding the required Percentage Interests
for such affirmative vote.

 

ARTICLE
XIII

AMENDMENT
OF AGREEMENT

 

Section
13.1. Amendments. No amendments may be made to this Agreement except in writing executed by all of the Members.

 

Section
13.2. Amendment of Certificate. In the event that this Agreement is amended pursuant to this Article XIII, the Company
shall, to the extent that the Board deems necessary or advisable, amend the Certificate to reflect any such change.

 

ARTICLE
XIV

MISCELLANEOUS

 

Section
14.1. Entire Agreement. This Agreement (including the schedules and exhibits hereto) constitutes the entire agreement among
the Members with respect to the subject matter hereof. The foregoing supersede any prior agreements or understandings among the
Members with respect to the subject matter hereof, and the foregoing may not be modified or amended in any manner other than as
set forth herein.

 

Section
14.2. Applicable Law. This Agreement and the rights of the parties hereunder shall be governed by and interpreted in accordance
with the law of the State of Delaware, without regard to the conflicts of law provisions thereof.

 

    	 	22	 

     

    

 

Section
14.3. Effect. Except as herein otherwise specifically provided, this Agreement shall be binding upon and inure to the benefit
of the parties hereto, the Persons indemnified hereunder and their legal representatives, successors and permitted assigns.

 

Section
14.4. Survival. The indemnity and dispute resolution provisions hereof shall survive the termination of this Agreement
and the dissolution of the Company, as shall the obligation to settle accounts hereunder.

 

Section
14.5. Pronouns and Number. Wherever from the context it appears appropriate, each term stated in either the singular or
the plural shall include the singular and the plural, and pronouns stated in any of the masculine, feminine or neuter shall include
the masculine, feminine and neuter.

 

Section
14.6. Captions. Captions contained in this Agreement are inserted only as a matter of convenience and in no way define,
limit or extend the scope or intent of this Agreement or any provision hereof.

 

Section
14.7. Partial Enforceability. If any provision of this Agreement, or the application of such provision to any Person or
circumstance, shall be held invalid, the remainder of this Agreement, or the application of such provision to persons or circumstances
other than those to which it is held invalid, shall not be affected thereby.

 

Section
14.8. Counterparts. This Agreement may contain more than one counterpart of the signature page and this Agreement may be
executed by the affixing of the signatures of each of the Members to one of such counterpart signature pages. All of such counterpart
signatures pages shall be read as though one, and they shall have the same force and effect as though all of the signers had signed
a single signature page.

 

Section
14.9. Construction. The language in all parts of this Agreement shall be in all cases construed simply according to its
fair meaning and not strictly for or against any Person.

 

Section
14.10. Waiver of Partition. The Members hereby agree that the Company’s assets are not and will not be suitable for
partition. Accordingly, each of the Members hereby irrevocably waives any and all rights that such Member might otherwise have
to maintain any action for the partition of any of such assets.

 

Section
14.11. Submission to Jurisdiction.

 

(a)
Each of the Members hereby irrevocably acknowledges and consents that any legal action or proceeding brought with respect to any
of the obligations arising under or relating to this Agreement may be brought in the Court of Chancery of the State of Delaware,
provided that if jurisdiction is not then available in the Court of Chancery of the State of Delaware, then any such legal action
or proceeding may be brought in any federal court located in the State of Delaware and each of the Members hereby irrevocably
submits to and accepts with regard to any such action or proceeding, for itself and in respect of its property, generally and
unconditionally, the exclusive jurisdiction of the aforesaid courts. Each Member hereby further irrevocably waives any claim that
any such courts lack jurisdiction over such Member, and agrees not to plead or claim, in any legal action or proceeding with respect
to this Agreement or the transactions contemplated hereby brought in any of the aforesaid courts, that any such court lacks jurisdiction
over such Member. Each Member irrevocably consents to the service of process in any such action or proceeding by the mailing of
copies thereof by registered or certified mail, postage prepaid, to such Member, at its address for notices set forth in Section
12.1; such service to become effective ten (10) days after such mailing. Each Member hereby irrevocably waives any objection
to such service of process and further irrevocably waives and agrees not to plead or claim in any action or proceeding commenced
hereunder or under any other documents contemplated hereby that service of process was in any way invalid or ineffective. The
foregoing shall not limit the rights of any Member to serve process in any other manner permitted by applicable law. The foregoing
consents to jurisdiction shall not constitute general consents to service of process in the State of Delaware for any purpose
except as provided above and shall not be deemed to confer rights on any Person other than the respective Members.

 

    	 	23	 

     

    

 

(b)
Each of the Members hereby waives any right it may have under the laws of any jurisdiction to commence by publication any legal
action or proceeding with respect this Agreement. To the fullest extent permitted by applicable law, each of the Members hereby
irrevocably waives the objection which it may now or hereafter have to the laying of the venue of any suit, action or proceeding
arising out of or relating to this Agreement in any of the courts referred to in this Section 14.10 and hereby further
irrevocably waives and agrees not to plead or claim that any such court is not a convenient forum for any such suit, action or
proceeding.

 

(c)
The Members agree that any judgment obtained by any Member or its successors or assigns in any action, suit or proceeding referred
to above may, in the discretion of such Member (or its successors or assigns), be enforced in any jurisdiction, to the extent
permitted by applicable law.

 

(d)
The Members agree that the remedy at law for any breach of this Agreement may be inadequate and that should any dispute arise
concerning any matter hereunder, this Agreement shall be enforceable in a court of equity by an injunction or a decree of specific
performance. Such remedies shall, however, be cumulative and nonexclusive, and shall be in addition to any other remedies which
the Members may have.

 

Section
14.12. Waiver of Trial by Jury. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH MEMBER HEREBY IRREVOCABLY WAIVES ALL RIGHT
OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTER-CLAIM, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATTER
ARISING HEREUNDER.

 

Section
14.13. Force Majeure. No Member shall be liable for damages resulting from delayed or defective performance when such delays
arise out of causes beyond the control and without the fault or negligence of the offending Member. Such causes may include acts
of God or of the public enemy, acts of the United States in its sovereign capacity, fires, floods, power failure, disabling strikes,
epidemics, quarantine restrictions and freight embargoes.

 

Section
14.14. Further Assurances. Each Member shall execute such additional documents and perform such further acts as may be
reasonable and necessary to carry out the provisions of this Agreement.

 

Section
14.15. No Third Party Beneficiaries. The provisions of this Agreement are not intended to be for the benefit of any creditor
(other than a Member who is a creditor and then only in its capacity as a Member) or other Person (other than a Member (and only
in its capacity as a Member)) to whom any debts, liabilities or obligations are owed by (or who otherwise has any claim against)
the Company or any of the Members. Moreover, notwithstanding anything contained in this Agreement, no such creditor or other Person
shall obtain any rights under this Agreement or shall, by reason of this Agreement, make any claim in respect of any debt, liability
or obligation (or otherwise) against the Company or any Member.

 

[Signature
Page Follows]

 

    	 	24	 

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

	 	MEMBERS:
	 	 	 
	 	FGI FUNDS MANAGEMENT, LLC
	 	 	 
	 	By:	/s/
    Kyle Cerminara
	 	Name:	Kyle
    Cerminara
	 	Title:	Manager
	 	 	 
	 	1347 Property Insurance Holdings, Inc.
	 	 	 
	 	By:	/s/
    John S. Hill
	 	Name:	John
    S. Hill
	 	Title:	EVP,
    CFO & Secretary

 

[Signature
Page to the Limited Liability Company Agreement of

Fundamental
Global Asset Management, LLC]

 

    	 	 	 

     

    

 

Schedule
A

 

Members;
Percentage Interests

 

	Member	 	Percentage Interests	 
	 	 	 	 
	FGI Funds Management, LLC 
4201 Congress Street, Suite 140 
Charlotte, North Carolina 28209	 	 	50	%
	 	 	 	 	 
	1347 Property Insurance Holdings, Inc. 
970 Lake Carillon Dr., Suite 314 
Saint Petersburg, FL 33716	 	 	50	%

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