Document:

EX-4.4

 Exhibit 4.4 

FORM OF WARRANT AGREEMENT 

THIS WARRANT AGREEMENT, dated as of [    ], 2021 (as amended, supplemented or otherwise modified from time to time, this
“Agreement”), is by and between Waverley Capital Acquisition Corp. 1, a Cayman Islands exempted company (the “Company”), and Continental Stock Transfer & Trust Company, a New York limited
purpose trust company, as warrant agent (in such capacity, the “Warrant Agent”). 
 WHEREAS, the Company is engaged
in an initial public offering (the “Offering”) of units of the Company’s equity securities, each such unit comprised of one Class A ordinary share of the Company, par value $0.0001 per share (“Ordinary
Shares”), and one-fourth of one redeemable Public Warrant (as defined below) (the “Units”) and, in connection therewith, has determined to issue and deliver up to 8,625,000
redeemable warrants (including up to 1,125,000 redeemable warrants subject to the Over-Allotment Option (as defined below)) to public investors in the Offering (the “Public Warrants”); 

WHEREAS, it is proposed that the Company enter into that certain Private Placement Warrants Purchase Agreement with WCAC1 Sponsor LLC, a
Delaware limited liability company (the “Sponsor”), pursuant to which the Sponsor will purchase an aggregate of 6,000,000 warrants (or up to 6,600,000 warrants if the underwriters in the Offering exercise their Over-Allotment
Option in full) simultaneously with the closing of the Offering (and the closing of the Over-Allotment Option, if applicable), bearing the legend set forth in Exhibit B hereto (the “Private Placement Warrants”) at a
purchase price of $1.50 per Private Placement Warrant; 
 WHEREAS, in order to finance the Company’s transaction costs in connection
with an intended initial merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination, involving the Company and one or more businesses (a “Business Combination”), the Sponsor or
an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan to the Company funds as the Company may require, of which up to $2,000,000 of such loans may be convertible into up to an
additional 1,333,333 Private Placement Warrants at a price of $1.50 per warrant (the “Working Capital Warrants” and, together with the Public Warrants and the Private Placement Warrants, the
“Warrants”); 
 WHEREAS, the Company has filed with the U.S. Securities and Exchange Commission (the
“Commission”) a registration statement on Form S-1, File No. 333-[    ] and a prospectus (the
“Prospectus”), for the registration, under the Securities Act of 1933, as amended (the “Securities Act”), of the Units, the Public Warrants and the Ordinary Shares included in the Units; 

WHEREAS, each whole Warrant entitles the holder thereof to purchase one Ordinary Share for $11.50 per whole share, subject to adjustment as
described herein. Only whole Warrants are exercisable, and a holder of the Public Warrants will not be able to exercise any fraction of a Warrant; 

 WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing to so act, in connection with the issuance, registration, transfer, exchange, redemption and exercise of the Warrants; 

WHEREAS, the Company desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised,
and the respective rights, limitation of rights and immunities of the Company, the Warrant Agent and the holders of the Warrants; and 

WHEREAS, all acts and things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and
countersigned by or on behalf of the Warrant Agent (if a physical certificate is issued), as provided herein, the valid, binding and legal obligations of the Company, and to authorize the execution and delivery of this Agreement. 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows: 

1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and
the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this Agreement. 

2. Warrants. 
 2.1.
Form of Warrant. Each Warrant shall initially be issued in registered form only. 
 2.2. Effect of Countersignature. If a
physical certificate is issued, unless and until countersigned by the Warrant Agent pursuant to this Agreement, a certificated Warrant shall be invalid and of no effect and may not be exercised by the holder thereof. 

2.3. Registration. 

2.3.1. Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”) for the registration
of original issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants in book-entry form, the Warrant Agent shall issue and register the Warrants in the names of the respective holders thereof in such
denominations and otherwise in accordance with instructions delivered to the Warrant Agent by the Company. Ownership of beneficial interests in the Public Warrants shall be shown on, and the transfer of such ownership shall be effected through,
records maintained by institutions that have accounts with The Depository Trust Company (the “Depositary”) (such institution, with respect to a Warrant in its account, a “Participant”). 

If the Depositary subsequently ceases to make its book-entry settlement system available for the Public Warrants, the Company may instruct the
Warrant Agent regarding making other arrangements for book-entry settlement. In the event that the Public Warrants are not eligible for, or it is no longer necessary to have the Public Warrants available in, book-entry form, the Warrant Agent shall
provide written instructions to the Depositary to deliver to the Warrant Agent for cancellation each book-entry Public Warrant, and the Company shall instruct the Warrant Agent to deliver to the Depositary definitive certificates in physical form
evidencing such Warrants (“Definitive Warrant Certificates”) which shall be in the form attached hereto as Exhibit A. 

  
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 Physical certificates, if issued, shall be signed by, or bear the facsimile signature of,
the Chairman of the Board, Chief Executive Officer, President, Chief Financial Officer, Chief Operating Officer, General Counsel, Secretary or other principal officer of the Company. In the event the person whose facsimile signature has been placed
upon any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance. 

2.3.2. Registered Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may
deem and treat the person in whose name such Warrant is registered in the Warrant Register (the “Registered Holder”) as the absolute owner of such Warrant and of each Warrant represented thereby, for the purpose of any
exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. 

2.4. Detachability of Warrants. The Ordinary Shares and Public Warrants comprising the Units shall begin separate trading on the
fifty-second (52nd) day following the date of the Prospectus or, if such fifty-second (52nd) day is not on a day, other than a Saturday, Sunday
or federal holiday, on which banks in New York City are generally open for normal business (a “Business Day”), then on the immediately succeeding Business Day following such date, or earlier (the “Detachment
Date”) with the consent of Evercore Group L.L.C. and Morgan Stanley & Co. LLC, but in no event shall the Ordinary Shares and the Public Warrants comprising the Units be separately traded until (A) the Company has filed
(i) a Current Report on Form 8-K with the Commission containing an audited balance sheet reflecting the receipt by the Company of the gross proceeds of the Offering, including the proceeds then received
by the Company from the exercise by the underwriters of their right to purchase additional Units in the Offering (the “Over-Allotment Option”), if the Over-Allotment Option is exercised prior to the filing of the Current
Report on Form 8-K and (ii) a second or amended Current Report on Form 8-K to provide updated financial information to reflect the exercise of the
underwriters’ Over-Allotment Option, if the Over-Allotment Option is exercised following the initial filing of such Current Report on Form 8-K, and (B) the Company issues a press release announcing
when such separate trading shall begin. 
 2.5. Fractional Warrants. The Company shall not issue fractional Warrants other than as
part of the Units, each of which is comprised of one Ordinary Share and one-fourth of one whole Public Warrant. If, upon the detachment of Public Warrants from the Units or otherwise, a holder of Warrants
would be entitled to receive a fractional Warrant, the Company shall round down to the nearest whole number the number of Warrants to be issued to such holder. 

2.6. Private Placement Warrants and Working Capital Warrants. The Private Placement Warrants and the Working Capital Warrants shall be
identical to the Public Warrants, except that, so long as they are held by the Sponsor or any of its Permitted Transferees (as defined below) the Private Placement Warrants and the Working Capital Warrants (i) may be exercised for cash or on a
“cashless basis” pursuant to subsection 3.3.1(c), (ii) may not be transferred, assigned or sold until thirty (30) days after the completion by the Company of an initial Business Combination, including the Ordinary Shares
issuable upon exercise of the Private Placement Warrants or the Working 

  
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Capital Warrants, and (iii) shall not be redeemable by the Company, including pursuant to Section 6.1; provided, however, that, in the case of clause
(ii), the Private Placement Warrants and the Working Capital Warrants and any Ordinary Shares issued upon exercise of the Private Placement Warrants and the Working Capital Warrants may be transferred by the holders thereof: 

(a) to the Company’s officers or directors, any affiliates or family members of any of the Company’s officers or
directors, any direct or indirect members or partners of the Sponsor or their respective affiliates, any affiliates of the Sponsor, any funds and accounts managed or advised by Waverley Capital, L.P. and its affiliates, and to direct or indirect
members or partners of such funds and accounts or any affiliates thereof, any employees of such affiliates or any funds or accounts advised by the Sponsor or its affiliates; 

(b) in the case of an individual, by gift to a member of one of the individual’s immediate family or to a trust, the
beneficiary of which is a member of the individual’s immediate family, an affiliate of such person or to a charitable organization; 

(c) in the case of an individual, by virtue of laws of descent and distribution upon death of the individual; 

(d) in the case of an individual, pursuant to a qualified domestic relations order; 

(e) by private transfers or by other transfers made in connection with the consummation of the Business Combination at prices
no greater than the price at which the Private Placement Warrants or Ordinary Shares, as applicable, were originally purchased; 

(f) by virtue of the Sponsor’s organizational documents upon liquidation or dissolution of the Sponsor; 

(g) to the Company for no value for cancellation in connection with the consummation of the Business Combination; 

(h) in the event of the Company’s liquidation prior to the completion of the Business Combination; or 

(i) in the event of the Company’s completion of a liquidation, merger, share exchange or other similar transaction which
results in all of the public shareholders having the right to exchange their Ordinary Shares for cash, securities or other property subsequent to the completion of the Business Combination; 

provided, however, that, in the case of clauses (1) through (6), these permitted transferees (the “Permitted
Transferees”) must enter into a written agreement with the Company agreeing to be bound by the transfer restrictions in this Agreement. 

  
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 3. Terms and Exercise of Warrants. 

3.1. Warrant Price. Each whole Warrant shall entitle the Registered Holder thereof, subject to the provisions of such Warrant and this
Agreement, to purchase from the Company the number of Ordinary Shares stated therein, at the price of $11.50 per share, subject to the adjustments provided in Section 4 and in the last sentence of this
Section 3.1. The term “Warrant Price” as used in this Agreement shall mean the price per share (including in cash or by payment of Warrants pursuant to a “cashless exercise,” to the extent
permitted hereunder) described in the prior sentence at which Ordinary Shares may be purchased at the time a Warrant is exercised. The Company in its sole discretion may lower the Warrant Price at any time prior to the Expiration Date (as defined
below) for a period of not less than fifteen (15) Business Days (unless otherwise required by the Commission, any national securities exchange on which the Warrants are listed or applicable law); provided, however, that the
Company shall provide at least three (3) Business Days’ prior written notice of such reduction to Registered Holders of the Warrants; provided, further, that any such reduction shall be identical among all of the Warrants.

 3.2. Duration of Warrants. A Warrant may be exercised only during the period (the “Exercise Period”) (A)
commencing on the date that is thirty (30) days after the first date on which the Company completes a Business Combination and (B) terminating at the earliest to occur of (x) 5:00 p.m., New York City time, on the date that is five
(5) years after the date on which the Company completes its initial Business Combination, (y) the liquidation of the Company in accordance with the Company’s amended and restated memorandum and articles of association (as amended,
supplemented or otherwise modified from time to time, the “Amended and Restated Memorandum and Articles of Association”), if the Company fails to complete a Business Combination, and (z) other than with respect to the
Private Placement Warrants and the Working Capital Warrants then held by the Sponsor or its Permitted Transferees, 5:00 p.m., New York city time, on the Redemption Date (as defined below) as provided in Section 6.3 (the
“Expiration Date”); provided, however, that the exercise of any Warrant shall be subject to the satisfaction of any applicable conditions, as set forth in subsection 3.3.2, with respect to an
effective registration statement or a valid exemption therefrom being available. Except with respect to the right to receive the Redemption Price (as defined below) (other than with respect to a Private Placement Warrant or a Working Capital Warrant
then held by the Sponsor or its Permitted Transferees) in the event of a redemption (as set forth in Section 6), each Warrant (other than a Private Placement Warrant or a Working Capital Warrant then held by the Sponsor or
its Permitted Transferees in the event of a redemption) not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this Agreement shall cease at 5:00 p.m., New York City, time
on the Expiration Date. The Company in its sole discretion may extend the duration of the Warrants by delaying the Expiration Date; provided, however, that the Company shall provide at least twenty (20) days prior written notice
of any such extension to Registered Holders of the Warrants; provided, further, that any such extension shall be identical in duration among all the Warrants. 

3.3. Exercise of Warrants. 

3.3.1. Payment. Subject to the provisions of the Warrant and this Agreement, a Warrant may be exercised by the Registered Holder
thereof by delivering to the Warrant Agent at its corporate trust department (i) the Definitive Warrant Certificate evidencing the Warrants to be 

  
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exercised or, in the case of a Warrant represented by a book-entry, the Warrants to be exercised (the “Book-Entry Warrants”) on the records of the Depositary to an account
of the Warrant Agent at the Depositary designated for such purposes in writing by the Warrant Agent to the Depositary from time to time, (ii) an election to purchase (“Election to Purchase”) any Ordinary Shares pursuant
to the exercise of a Warrant, properly completed and executed by the Registered Holder on the reverse of the Definitive Warrant Certificate or, in the case of a Book-Entry Warrant, properly delivered by the Participant in accordance with the
Depositary’s procedures, and (iii) the payment in full of the Warrant Price for each Ordinary Share as to which the Warrant is exercised and any and all applicable taxes due in connection with the exercise of the Warrant, the exchange of
the Warrant for the Ordinary Shares and the issuance of such Ordinary Shares, as follows: 
 (a) in lawful money of the
United States, in good certified check or good bank draft payable to the order of the Warrant Agent; 
 (b) in the event of a
redemption pursuant to Section 6.1 hereof in which the Company elects to require holders of the Warrants to exercise such warrants on a “cashless basis,” by surrendering the Warrants for that number of
Class A ordinary shares equal to the lesser of (A) the quotient obtained by dividing (x) the product of the number of Class A ordinary shares underlying the warrants, multiplied by the excess of the Fair Market Value (as defined
in this subsection 3.3.1(b)) of our Class A ordinary shares over the exercise price of the warrants by (y) the Fair Market Value and (B) 0.361 per warrant. Solely for purposes of this subsection 3.3.1(b), the “Fair
Market Value” shall mean the average reported closing price of the Ordinary Shares for the ten (10) trading days ending on the third (3rd) trading day prior to the date on which notice of exercise of the Private Placement Warrant
or Working Capital Warrant is sent to the Warrant Agent; 
 (c) with respect to any Private Placement Warrant or Working
Capital Warrant, so long as such Private Placement Warrant or Working Capital Warrant is held by the Sponsor or a Permitted Transferee, by surrendering the Warrants for that number of Ordinary Shares equal to the quotient obtained by dividing
(x) the product of the number of Ordinary Shares underlying the Warrants, multiplied by the excess of the “Sponsor Fair Market Value” (as defined in this subsection 3.3.1(c)) less the Warrant Price by (y) the
Sponsor Fair Market Value. Solely for purposes of this subsection 3.3.1(c), the “Sponsor Fair Market Value” shall mean the average reported closing price of the Ordinary Shares for the ten (10) trading days ending
on the third (3rd) trading day prior to the date on which notice of exercise of the Private Placement Warrant or Working Capital Warrant is sent to the Warrant Agent; 

(d) as provided in Section 6.2 with respect to a Make-Whole Exercise; or 

(e) as provided in Section 7.4. 

3.3.2. Issuance of Ordinary Shares on Exercise. As soon as practicable after the exercise of any Warrant and the clearance of the funds
in payment of the Warrant Price (if payment is pursuant to subsection 3.3.1(a)), the Company shall issue to the Registered Holder of such Warrant a book-entry position or certificate, as applicable, for the number of Ordinary Shares to

  
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which he, she or it is entitled, registered in such name or names as may be directed by him, her or it on the register of members of the Company and, if such Warrant shall not have been exercised
in full, a new book-entry position or countersigned Warrant, as applicable, for the number of Ordinary Shares as to which such Warrant shall not have been exercised. Notwithstanding the foregoing, the Company shall not be obligated to deliver any
Ordinary Shares pursuant to the exercise of a Warrant and shall have no obligation to settle such Warrant exercise unless a registration statement under the Securities Act with respect to the Ordinary Shares underlying the Public Warrants is then
effective and a prospectus relating thereto is current, subject to the Company’s satisfying its obligations under Section 7.4 or a valid exemption from registration is available. No Warrant shall be exercisable and the
Company shall not be obligated to issue Ordinary Shares upon exercise of a Warrant unless the Ordinary Shares issuable upon such Warrant exercise have been registered, qualified or deemed to be exempt from registration or qualification under the
securities laws of the state of residence of the Registered Holder of the Warrants. Subject to Section 4.6, a Registered Holder of Warrants may exercise its Warrants only for a whole number of Ordinary Shares. The Company
may require holders of Public Warrants to settle the Warrant on a “cashless basis” pursuant to Section 7.4. If, by reason of any exercise of Warrants on a “cashless basis,” the holder of any Warrant
would be entitled, upon the exercise of such Warrant, to receive a fractional interest in an Ordinary Share, the Company shall round down to the nearest whole number the number of Ordinary Shares to be issued to such holder. 

3.3.3. Valid Issuance. All Ordinary Shares issued upon the proper exercise of a Warrant in conformity with this Agreement shall be
validly issued, fully paid and nonassessable. 
 3.3.4. Date of Issuance. Each person in whose name any book-entry position or
certificate, as applicable, for Ordinary Shares is issued and who is registered in the register of members of the Company shall for all purposes be deemed to have become the holder of record of such Ordinary Shares on the date on which the Warrant,
or book-entry position representing such Warrant, was surrendered and payment of the Warrant Price was made, irrespective of the date of delivery of such certificate in the case of a certificated Warrant, except that, if the date of such surrender
and payment is a date when the register of members of the Company or book-entry system of the Warrant Agent are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on
which the share transfer books or book-entry system are open. 
 3.3.5. Maximum Percentage. A holder of a Warrant may notify the
Company in writing in the event it elects to be subject to the provisions contained in this subsection 3.3.5; provided, however, that no holder of a Warrant shall be subject to this subsection 3.3.5 unless he, she or it
makes such election. If the election is made by a holder, the Warrant Agent shall not effect the exercise of the holder’s Warrant, and such holder shall not have the right to exercise such Warrant, to the extent that after giving effect to such
exercise, such person (together with such person’s affiliates), to the Warrant Agent’s actual knowledge, would beneficially own in excess of 9.8% (or such other amount as a holder may specify) (the “Maximum
Percentage”) of the Ordinary Shares outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of Ordinary Shares beneficially owned by such person and its affiliates shall
include the number of Ordinary Shares issuable upon exercise of the Warrant with respect to which the determination of such sentence is being made, but shall exclude Ordinary Shares that would be issuable upon (x) exercise of the remaining,
unexercised portion of the 

  
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Warrant beneficially owned by such person and its affiliates and (y) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially
owned by such person and its affiliates (including, without limitation, any convertible notes or convertible preferred shares or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set
forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For
purposes of the Warrant, in determining the number of outstanding Ordinary Shares, the holder may rely on the number of outstanding Ordinary Shares as reflected in (1) the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the Commission as the case may be,
(2) a more recent public announcement by the Company or (3) any other notice by the Company or Continental Stock Transfer & Trust Company, as transfer agent (in such capacity, the “Transfer Agent”), setting
forth the number of Ordinary Shares outstanding. For any reason at any time, upon the written request of the holder of the Warrant, the Company shall, within two (2) Business Days, confirm orally and in writing to such holder the number of
Ordinary Shares then outstanding. In any case, the number of issued and outstanding Ordinary Shares shall be determined after giving effect to the conversion or exercise of equity securities of the Company by the holder and its affiliates since the
date as of which such number of issued and outstanding Ordinary Shares was reported. By written notice to the Company, the holder of a Warrant may from time to time increase or decrease the Maximum Percentage applicable to such holder to any other
percentage specified in such notice; provided, however, that any such increase shall not be effective until the sixty-first (61st) day after such notice is delivered to the Company. 

4. Adjustments. 
 4.1.
Capitalizations. 
 4.1.1. Sub-Divisions. If after the date hereof, and subject to the
provisions of Section 4.6 below, the number of issued and outstanding Ordinary Shares is increased by a capitalization or share dividend of Ordinary Shares, or by a sub-division of
Ordinary Shares or other similar event, then, on the effective date of such share capitalization, sub-division or similar event, the number of Ordinary Shares issuable on exercise of each Warrant shall be
increased in proportion to such increase in the issued and outstanding Ordinary Shares. A rights offering made to all or substantially all holders of Ordinary Shares entitling holders to purchase Ordinary Shares at a price less than the
“Historical Fair Market Value” (as defined below) shall be deemed a capitalization of a number of Ordinary Shares equal to the product of (i) the number of Ordinary Shares actually sold in such rights offering (or issuable under any
other equity securities sold in such rights offering that are convertible into or exercisable for the Ordinary Shares) multiplied by (ii) one (1) minus the quotient of (x) the price per Ordinary Share paid in such rights offering
divided by (y) the Historical Fair Market Value. For purposes of this subsection 4.1.1, (i) if the rights offering is for securities convertible into or exercisable for Ordinary Shares, in determining the price payable for Ordinary
Shares, there shall be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) “Historical Fair Market Value” means the volume weighted
average price of the Ordinary Shares during the ten (10) trading day period ending on the trading day prior to the first date on which the Ordinary Shares trade on the applicable exchange or in the applicable market, regular way, without the
right to receive such rights. No Ordinary Shares shall be issued at less than their par value. 

  
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 4.1.2. Extraordinary Dividends. If the Company, at any time while the Warrants are
outstanding and unexpired, pays a dividend or makes a distribution in cash, securities or other assets to all or substantially all of the holders of the Ordinary Shares on account of such Ordinary Shares (or other securities into which the Warrants
are convertible), other than (a) as described in subsection 4.1.1 above, (b) Ordinary Cash Dividends (as defined below), (c) to satisfy the redemption rights of the holders of the Ordinary Shares in connection with a
proposed initial Business Combination, (d) to satisfy the redemption rights of the holders of the Ordinary Shares in connection with a shareholder vote to amend the Amended and Restated Memorandum and Articles of Association (i) to modify
the substance or timing of the Company’s obligation to provide holders of Ordinary Shares the right to have their shares redeemed in connection with the Company’s initial Business Combination or to redeem 100% of the Company’s public
shares if it does not complete its initial Business Combination within the time period required by the Amended and Restated Memorandum and Articles of Association, or (ii) with respect to any other provision relating to the rights of holders of
Ordinary Shares or (e) in connection with the redemption of public shares upon the failure of the Company to complete its initial Business Combination and any subsequent distribution of its assets upon its liquidation (any such non-excluded event being referred to herein as an “Extraordinary Dividend”), then the Warrant Price shall be decreased, effective immediately after the effective date of such Extraordinary
Dividend, by the amount of cash and/or the fair market value (as determined by the Company’s board of directors (the “Board”) in good faith) of any securities or other assets paid on each Ordinary Share in respect of
such Extraordinary Dividend. For purposes of this subsection 4.1.2, “Ordinary Cash Dividends” means any cash dividend or cash distribution which, when combined on a per share basis, with the per share amounts of all
other cash dividends and cash distributions paid on the Ordinary Shares during the 365-day period ending on the date of declaration of such dividend or distribution to the extent it does not exceed $0.50
(which amount shall be adjusted to appropriately reflect any of the events referred to in other subsections of this Section 4 and excluding cash dividends or cash distributions that resulted in an adjustment to the Warrant
Price or to the number of Ordinary Shares issuable on exercise of each Warrant). 
 4.2. Aggregation of Shares. If after the date
hereof, and subject to the provisions of Section 4.6, the number of issued and outstanding Ordinary Shares is decreased by a consolidation, combination, reverse share sub-division or
reclassification of Ordinary Shares or other similar event, then, on the effective date of such consolidation, combination, reverse share sub-division, reclassification or similar event, the number of Ordinary
Shares issuable on exercise of each Warrant shall be decreased in proportion to such decrease in issued and outstanding Ordinary Shares. 

4.3. Adjustments in Exercise Price. Whenever the number of Ordinary Shares purchasable upon the exercise of the Warrants is adjusted,
as provided in subsection 4.1.1 or Section 4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price immediately prior to such adjustment by a fraction (x) the
numerator of which shall be the number of Ordinary Shares purchasable upon the exercise of the Warrants immediately prior to such adjustment, and (y) the denominator of which shall be the number of Ordinary Shares so purchasable immediately
thereafter. 

  
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 4.4. Raising of the Capital in Connection with the Initial Business Combination. If
(x) the Company issues additional Ordinary Shares or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per
Ordinary Share (with such issue price or effective issue price to be determined in good faith by the Board and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Class B ordinary shares, par
value $0.0001 per share, of the Company (the “Class B Ordinary Shares”) held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued
Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the Company’s initial Business Combination on the date of the
consummation of the Company’s initial Business Combination (net of redemptions), and (z) the volume-weighted average trading price of Ordinary Shares during the twenty (20) trading day period starting on the trading day after the day
on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the Warrant Price shall be adjusted (to the nearest cent) to be equal to 115% of the higher of the
Market Value and the Newly Issued Price, the $18.00 per share redemption trigger price described in Section 6.1 and Section 6.2 shall be adjusted (to the nearest cent) to be equal to 180% of the
higher of the Market Value and the Newly Issued Price and the $10.00 per share redemption trigger price described in Section 6.2 shall be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the
Newly Issued Price. 
 4.5. Replacement of Securities upon Reorganization, etc. In case of any reclassification or reorganization of
the issued and outstanding Ordinary Shares (other than a change under Section 4.1 or Section 4.2 or that solely affects the par value of such Ordinary Shares), or in the case of any merger or
consolidation of the Company with or into another corporation (other than a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the issued and outstanding
Ordinary Shares), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the holders
of the Warrants shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the Ordinary Shares of the Company immediately theretofore purchasable and receivable
upon the exercise of the rights represented thereby, the kind and amount of Ordinary Shares or stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a
dissolution following any such sale or transfer, that the holder of the Warrants would have received if such holder had exercised his, her or its Warrant(s) immediately prior to such event (the “Alternative Issuance”);
provided, however, that (i) if the holders of the Ordinary Shares were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon such consolidation or merger, then the
kind and amount of securities, cash or other assets constituting the Alternative Issuance for which each Warrant shall become exercisable shall be deemed to be the weighted average of the kind and amount received per share by the holders of the
Ordinary Shares in such consolidation or merger that affirmatively make such election, and (ii) if a tender, exchange or redemption offer shall have been made to and accepted by the holders of the Ordinary Shares (other than a tender, exchange
or redemption offer made by the Company in connection with redemption rights held by shareholders of the Company as provided for in the Amended and Restated Memorandum and Articles of Association or as a result of the repurchase of Ordinary Shares
by the Company if a 

  
 10 

 
proposed initial Business Combination is presented to the shareholders of the Company for approval) under circumstances in which, upon completion of such tender or exchange offer, the maker
thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part, and together with any affiliate or associate of such maker
(within the meaning of Rule 12b-2 under the Exchange Act) and any members of any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the issued and outstanding Ordinary Shares, the holder of a Warrant shall be entitled to receive as the Alternative Issuance, the highest amount of cash, securities or
other property to which such holder would actually have been entitled as a shareholder if such Warrant holder had exercised the Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the Ordinary Shares held
by such holder had been purchased pursuant to such tender or exchange offer, subject to adjustments (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in this
Section 4; provided, further, that, if less than 70% of the consideration receivable by the holders of the Ordinary Shares in the applicable event is payable in the form of ordinary shares in the successor
entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to be so listed for trading or quoted
immediately following such event, and if the Registered Holder properly exercises the Warrant within thirty (30) days following the public disclosure of the consummation of such applicable event by the Company pursuant to a Current Report on
Form 8-K filed with the Commission, the Warrant Price shall be reduced by an amount (in dollars) equal to the difference of (i) the Warrant Price in effect prior to such reduction minus (ii) (A) the
Per Share Consideration (as defined below) (but in no event less than zero) minus (B) the Black-Scholes Warrant Value (as defined below). The “Black-Scholes Warrant Value” means the value of a Warrant immediately prior
to the consummation of the applicable event based on the Black-Scholes Warrant Model for a Capped American Call on Bloomberg Financial Markets (assuming zero dividends) (“Bloomberg”). For purposes of calculating such amount,
(i) Section 6 of this Agreement shall be taken into account, (ii) the price of each Ordinary Share shall be the volume weighted average price of the Ordinary Shares during the ten (10) trading day period
ending on the trading day prior to the effective date of the applicable event, (iii) the assumed volatility shall be the ninety (90) day volatility obtained from the HVT function on Bloomberg determined as of the trading day immediately
prior to the day of the announcement of the applicable event and (iv) the assumed risk-free interest rate shall correspond to the U.S. Treasury rate for a period equal to the remaining term of the Warrant. “Per Share
Consideration” means (i) if the consideration paid to holders of the Ordinary Shares consists exclusively of cash, the amount of such cash per Ordinary Share, and (ii) in all other cases, the volume weighted average price of
the Ordinary Shares during the ten (10) trading day period ending on the trading day prior to the effective date of the applicable event. If any reclassification or reorganization also results in a change in Ordinary Shares covered by
subsection 4.1.1, then such adjustment shall be made pursuant to subsection 4.1.1 or Sections 4.2, 4.3 and this Section 4.4. The provisions of this Section 4.4 shall
similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers. In no event shall the Warrant Price be reduced to less than the par value per share issuable upon exercise of such Warrant. 

4.6. Notices of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise of a
Warrant, the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from such 

  
 11 

 
adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based; provided, however, that no adjustment to the number of Ordinary Shares issuable upon exercise of a Warrant shall be required until cumulative adjustments amount to 1% or more of the
number of Ordinary Shares issuable upon exercise of a Warrant as last adjusted; provided, further, that any such adjustments that are not made are carried forward and taken into account in any subsequent adjustment. Notwithstanding the foregoing,
all such carried forward adjustments shall be made (i) in connection with any subsequent adjustment that (taken together with such carried forward adjustments) would result in a change of at least 1% in the number of Ordinary Shares issuable
upon exercise of a Warrant and (ii) on the exercise date of any Warrant. Upon the occurrence of any event specified in Sections 4.1, 4.2, 4.3, 4.4 or 4.5 in connection with which any adjustment is made to
the Warrant Price or the number of Ordinary Shares issuable upon exercise of a Warrant, the Company shall give written notice of the occurrence of such event to each holder of a Warrant, at the last address set forth for such holder in the Warrant
Register, of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event. 

4.7. No Fractional Shares. Notwithstanding any provision contained in this Agreement to the contrary, the Company shall not issue
fractional shares upon the exercise of Warrants. If, by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional
interest in a share, the Company shall, upon such exercise, round down to the nearest whole number the number of Ordinary Shares to be issued to such holder. 

4.8. Form of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this
Section 4, and Warrants issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants initially issued pursuant to this Agreement; provided, however,
that the Company may at any time in its sole discretion make any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter issued or countersigned, whether in
exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so changed. 
 4.9. Other Events. In case any
event shall occur affecting the Company as to which none of the provisions of the preceding subsections of this Section 4 are strictly applicable, but which would require an adjustment to the terms of the Warrants in order
to (i) avoid an adverse impact on the Warrants and (ii) effectuate the intent and purpose of this Section 4, then, in each such case, the Company shall appoint a firm of independent public accountants, investment
banking or other appraisal firm of recognized national standing, which shall give its opinion as to whether or not any adjustment to the rights represented by the Warrants is necessary to effectuate the intent and purpose of this
Section 4 and, if they determine that an adjustment is necessary, the terms of such adjustment; provided, however, that under no circumstances shall the Warrants be adjusted pursuant to this Section 4.9
(i) as a result of any issuance of securities in connection with a Business Combination or (ii) solely as a result of an adjustment to the conversion ratio of the Company’s Class B Ordinary Shares, into Ordinary Shares. The Company
shall adjust the terms of the Warrants in a manner that is consistent with any adjustment recommended in such opinion. 

  
 12 

 4.10. No Adjustment. For the avoidance of doubt, no adjustment shall be made to the
terms of the Warrants solely as a result of an adjustment to the conversion ratio of the Class B Ordinary Shares into Ordinary Shares or the conversion of the shares of Class B Ordinary Shares into Ordinary Shares, in each case, pursuant
to the Amended and Restated Memorandum and Articles of Association. 
 5. Transfer and Exchange of Warrants. 

5.1. Registration of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant upon the
Warrant Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. In the case of certificated Warrants, the Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time upon request.

 5.2. Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request for
exchange or transfer, and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the Registered Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants;
provided, however, that, except as otherwise provided herein or with respect to any Book-Entry Warrant, each Book-Entry Warrant may be transferred only in whole and only to the Depositary, to another nominee of the Depositary, to a
successor depository or to a nominee of a successor depository; provided, further, that, in the event that a Warrant surrendered for transfer bears a restrictive legend (as in the case of the Private Placement Warrants), the Warrant
Agent shall not cancel such Warrant and issue new Warrants in exchange therefor until the Warrant Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether the new Warrants must also bear
a restrictive legend. 
 5.3. Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or
exchange which shall result in the issuance of a warrant certificate or book-entry position for one-fourth of a warrant, except as part of the Units. 

5.4. Service Charges. No service charge shall be made for any exchange or registration of transfer of Warrants. 

5.5. Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with
the terms of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company, whenever required by the Warrant Agent, shall supply the Warrant Agent with Warrants duly
executed on behalf of the Company for such purpose. 
 5.6. Transfer of Warrants. Prior to the Detachment Date, the Public Warrants
may be transferred or exchanged only together with the Unit in which such Warrant is included, and only for the purpose of effecting, or in conjunction with, a transfer or exchange of such Unit. Furthermore, each transfer of a Unit on the register
relating to such Units shall operate also to transfer the Warrants included in such Unit. Notwithstanding the foregoing, the provisions of this Section 5.6 shall have no effect on any transfer of Warrants on and after the
Detachment Date. 

  
 13 

 6. Redemption. 

6.1. Redemption of Warrants for Cash. Subject to Section 6.5, not less than all of the outstanding Warrants
may be redeemed, at the option of the Company, at any time during the Exercise Period, at the office of the Warrant Agent, upon notice to the Registered Holders of the Warrants, as described in Section 6.3 below, at a
Redemption Price of $0.01 per Warrant; provided, however, that (i) the last reported sale price of the Ordinary Shares equals or exceeds $18.00 per share (subject to adjustment in compliance with
Section 4) for any twenty (20) trading days within a thirty (30)-trading day period ending on the third trading day prior to the date on which notice of such redemption is sent and (ii) there is an effective
registration statement covering the issuance of the Ordinary Shares issuable upon exercise of the Warrants, and a current prospectus relating thereto, available throughout the thirty (30)-day Redemption Period
(as defined in Section 6.3 below) or the Company has elected to require the exercise of the Warrants on a “cashless basis” pursuant to Section 3.3.1 and such cashless exercise is exempt
from registration under the Securities Act. 
 6.2. Redemption of Warrants for $0.10 or for Ordinary Shares. Subject to
Section 6.5, not less than all of the outstanding Warrants may be redeemed, at the option of the Company, at any time during the Exercise Period, at the office of the Warrant Agent, upon notice to the Registered Holders of
the Warrants, as described in Section 6.3 below, at a Redemption Price of $0.10 per Warrant; provided, however, that (i) the last reported sale price of the Ordinary Shares equals or exceeds $10.00 per
share (subject to adjustment in compliance with Section 4) on the trading day prior to the date on which notice of redemption is sent. During the thirty (30)-day Redemption Period in
connection with a redemption pursuant to this Section 6.2, Registered Holders of the Warrants may elect to exercise their Warrants on a “cashless basis” pursuant to subsection 3.3.1 and receive a
number of Ordinary Shares determined by reference to the table below, based on the Redemption Date (calculated for purposes of the table as the period to expiration of the Warrants) and the “Redemption Fair Market Value” (a
“Make-Whole Exercise”). Solely for purposes of this Section 6.2, the “Redemption Fair Market Value” shall mean the volume weighted average price of the Ordinary Shares for the
ten (10) trading days ending on the third trading day prior to the date on which notice of redemption pursuant to this Section 6.2 is sent to the Registered Holders. In connection with any redemption pursuant to this
Section 6.2, the Company shall provide the Registered Holders with the Redemption Fair Market Value no later than one (1) Business Day after the ten (10) trading day period described above ends. 

 

																																					
	 	  	Redemption Fair Market Value of Ordinary Shares	 
	 Redemption Date
 (period
to expiration of warrants)
	  	£10.00	 	  	11.00	 	  	12.00	 	  	13.00	 	  	14.00	 	  	15.00	 	  	16.00	 	  	17.00	 	  	318.00	 
										
	 60 months
	  	 	0.261	 	  	 	0.280	 	  	 	0.297	 	  	 	0.311	 	  	 	0.324	 	  	 	0.337	 	  	 	0.348	 	  	 	0.358	 	  	 	0.361	 
										
	 57 months
	  	 	0.257	 	  	 	0.277	 	  	 	0.294	 	  	 	0.310	 	  	 	0.324	 	  	 	0.337	 	  	 	0.348	 	  	 	0.358	 	  	 	0.361	 
										
	 54 months
	  	 	0.252	 	  	 	0.272	 	  	 	0.291	 	  	 	0.307	 	  	 	0.322	 	  	 	0.335	 	  	 	0.347	 	  	 	0.357	 	  	 	0.361	 
										
	 51 months
	  	 	0.246	 	  	 	0.268	 	  	 	0.287	 	  	 	0.304	 	  	 	0.320	 	  	 	0.333	 	  	 	0.346	 	  	 	0.357	 	  	 	0.361	 

  
 14 

																																					
	 	  	Redemption Fair Market Value of Ordinary Shares	 
	 Redemption Date
 (period
to expiration of warrants)
	  	£10.00	 	  	11.00	 	  	12.00	 	  	13.00	 	  	14.00	 	  	15.00	 	  	16.00	 	  	17.00	 	  	318.00	 
										
	 48 months
	  	 	0.241	 	  	 	0.263	 	  	 	0.283	 	  	 	0.301	 	  	 	0.317	 	  	 	0.332	 	  	 	0.344	 	  	 	0.356	 	  	 	0.361	 
										
	 45 months
	  	 	0.235	 	  	 	0.258	 	  	 	0.279	 	  	 	0.298	 	  	 	0.315	 	  	 	0.330	 	  	 	0.343	 	  	 	0.356	 	  	 	0.361	 
										
	 42 months
	  	 	0.228	 	  	 	0.252	 	  	 	0.274	 	  	 	0.294	 	  	 	0.312	 	  	 	0.328	 	  	 	0.342	 	  	 	0.355	 	  	 	0.361	 
										
	 39 months
	  	 	0.221	 	  	 	0.246	 	  	 	0.269	 	  	 	0.290	 	  	 	0.309	 	  	 	0.325	 	  	 	0.340	 	  	 	0.354	 	  	 	0.361	 
										
	 36 months
	  	 	0.213	 	  	 	0.239	 	  	 	0.263	 	  	 	0.285	 	  	 	0.305	 	  	 	0.323	 	  	 	0.339	 	  	 	0.353	 	  	 	0.361	 
										
	 33 months
	  	 	0.205	 	  	 	0.232	 	  	 	0.257	 	  	 	0.280	 	  	 	0.301	 	  	 	0.320	 	  	 	0.337	 	  	 	0.352	 	  	 	0.361	 
										
	 30 months
	  	 	0.196	 	  	 	0.224	 	  	 	0.250	 	  	 	0.274	 	  	 	0.297	 	  	 	0.316	 	  	 	0.335	 	  	 	0.351	 	  	 	0.361	 
										
	 27 months
	  	 	0.185	 	  	 	0.214	 	  	 	0.242	 	  	 	0.268	 	  	 	0.291	 	  	 	0.313	 	  	 	0.332	 	  	 	0.350	 	  	 	0.361	 
										
	 24 months
	  	 	0.173	 	  	 	0.204	 	  	 	0.233	 	  	 	0.260	 	  	 	0.285	 	  	 	0.308	 	  	 	0.329	 	  	 	0.348	 	  	 	0.361	 
										
	 21 months
	  	 	0.161	 	  	 	0.193	 	  	 	0.223	 	  	 	0.252	 	  	 	0.279	 	  	 	0.304	 	  	 	0.326	 	  	 	0.347	 	  	 	0.361	 
										
	 18 months
	  	 	0.146	 	  	 	0.179	 	  	 	0.211	 	  	 	0.242	 	  	 	0.271	 	  	 	0.298	 	  	 	0.322	 	  	 	0.345	 	  	 	0.361	 
										
	 15 months
	  	 	0.130	 	  	 	0.164	 	  	 	0.197	 	  	 	0.230	 	  	 	0.262	 	  	 	0.291	 	  	 	0.317	 	  	 	0.342	 	  	 	0.361	 
										
	 12 months
	  	 	0.111	 	  	 	0.146	 	  	 	0.181	 	  	 	0.216	 	  	 	0.250	 	  	 	0.282	 	  	 	0.312	 	  	 	0.339	 	  	 	0.361	 
										
	 9 months
	  	 	0.090	 	  	 	0.125	 	  	 	0.162	 	  	 	0.199	 	  	 	0.237	 	  	 	0.272	 	  	 	0.305	 	  	 	0.336	 	  	 	0.361	 
										
	 6 months
	  	 	0.065	 	  	 	0.099	 	  	 	0.137	 	  	 	0.178	 	  	 	0.219	 	  	 	0.259	 	  	 	0.296	 	  	 	0.331	 	  	 	0.361	 
										
	 3 months
	  	 	0.034	 	  	 	0.065	 	  	 	0.104	 	  	 	0.150	 	  	 	0.197	 	  	 	0.243	 	  	 	0.286	 	  	 	0.326	 	  	 	0.361	 
										
	 0 months
	  	 	—  	 	  	 	—  	 	  	 	0.042	 	  	 	0.115	 	  	 	0.179	 	  	 	0.233	 	  	 	0.281	 	  	 	0.323	 	  	 	0.361	 

 The exact Redemption Fair Market Value and Redemption Date may not be set forth in the table above, in which
case, if the Redemption Fair Market Value is between two values in the table or the Redemption Date is between two redemption dates in the table, the number of Ordinary Shares to be issued for each Warrant exercised in a Make-Whole Exercise shall be
determined by a straight-line interpolation between the number of shares set forth for the higher and lower Redemption Fair Market Values and the earlier and later redemption dates, as applicable, based on a
365- or 366-day year, as applicable. 
 The share prices set
forth in the column headings of the table above shall be adjusted as of any date on which the number of shares issuable upon exercise of a Warrant or the Exercise Price is adjusted pursuant to Section 4. If the number of
shares issuable upon exercise of a Warrant is adjusted pursuant to Section 4, the adjusted share prices in the column headings shall equal the share prices immediately prior to such adjustment, multiplied by a fraction, the
numerator of which is the exercise price of a Warrant after such adjustment and the denominator of which is the exercise price of a Warrant immediately prior to such adjustment. The number of shares in the table above shall be adjusted by
multiplying such share amounts by a fraction, the numerator of which is the number of shares deliverable upon exercise of a warrant immediately prior to such adjustment and the denominator of which is the number of shares deliverable upon the
exercise of a warrant as so adjusted. If the Exercise Price of a warrant is adjusted, (i) in the case of an adjustment pursuant to Section 4.4, the adjusted share prices in the column headings shall equal

  
 15 

 
the share prices immediately prior to such adjustment multiplied by a fraction, the numerator of which is the higher of the Market Value and the Newly Issued Price and the denominator of which is
$10.00 and (ii) in the case of an adjustment pursuant to Section 4.1.2, the adjusted share prices in the column headings shall equal the share prices immediately prior to such adjustment less the decrease in the
Exercise Price pursuant to such Exercise Price adjustment. In no event shall the number of shares issued in connection with a Make-Whole Exercise exceed 0.361 Ordinary Shares per Warrant (subject to adjustment). 

6.3. Date Fixed for, and Notice of, Redemption; Redemption Price. In the event that the Company elects to redeem the Warrants pursuant
to Sections 6.1 or 6.2, the Company shall fix a date for the redemption (the “Redemption Date”). Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not less than thirty
(30) days prior to the Redemption Date (the “30-day Redemption Period”) to the Registered Holders of the Warrants to be redeemed at their last addresses as they shall appear on the
registration books. Any notice mailed in the manner herein provided shall be conclusively presumed to have been duly given whether or not the Registered Holder received such notice. As used in this Agreement, “Redemption
Price” shall mean the price per Warrant at which any Warrants are redeemed pursuant to Sections 6.1 or 6.2. 

6.4. Exercise After Notice of Redemption. The Warrants may be exercised, for cash (or on a “cashless basis” in accordance
with Section 6.2) at any time after notice of redemption shall have been given by the Company pursuant to Section 6.3 and prior to the Redemption Date. On and after the Redemption Date, the record
holder of the Warrants shall have no further rights except to receive, upon surrender of the Warrants, the Redemption Price. 
 6.5.
Exclusion of Private Placement Warrants. The Company agrees that the redemption rights provided in Section 6.1 and Section 6.2 shall not apply to the Private Placement Warrants or the
Working Capital Warrants if at the time of the redemption such Private Placement Warrants or Working Capital Warrants continue to be held by the Sponsor or its Permitted Transferees. However, once such Private Placement Warrants or Working Capital
Warrants are transferred (other than to Permitted Transferees in accordance with Section 2.6), the Company may redeem the Private Placement Warrants and Working Capital Warrants pursuant to
Section 6.1 or 6.2, provided that the criteria for redemption are met, including the opportunity of the holder of such Private Placement Warrants or Working Capital Warrants to exercise the Private Placement Warrants
or Working Capital Warrants, as applicable, prior to redemption pursuant to Section 6.4. Private Placement Warrants and Working Capital Warrants that are transferred to persons other than Permitted Transferees shall upon
such transfer cease to be Private Placement Warrants or Working Capital Warrants, as the case may be, and shall become Public Warrants under this Agreement, including for purposes of Section 9.8. 

7. Other Provisions Relating to Rights of Holders of Warrants. 

7.1. No Rights as Shareholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of a shareholder of the
Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights to vote or to consent or to receive notice as shareholders in respect of the meetings of shareholders or the appointment
of directors of the Company or any other matter. 

  
 16 

 7.2. Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen,
mutilated or destroyed, the Company and the Warrant Agent may on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of
like denomination, tenor and date as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed
Warrant shall be at any time enforceable by anyone. 
 7.3. Reservation of Ordinary Shares. The Company shall at all times reserve
and keep available a number of its authorized but unissued Ordinary Shares that shall be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement. 

7.4. Registration of Ordinary Shares; Cashless Exercise at Company’s Option. 

7.4.1. Registration of the Ordinary Shares. The Company agrees that as soon as practicable, but in no event later than twenty
(20) Business Days after the closing of its initial Business Combination, it shall use its commercially reasonable efforts to file with the Commission a post-effective amendment to the Registration Statement, or a new registration statement,
registering, under the Securities Act, the issuance of the Ordinary Shares issuable upon exercise of the Warrants. The Company shall use its commercially reasonable efforts to cause the same to become effective within sixty (60) Business Days
following the closing of its initial Business Combination and to maintain the effectiveness of such post-effective amendment or registration statement, and a current prospectus relating thereto, until the expiration or redemption of the Warrants in
accordance with the provisions of this Agreement. If any such post-effective amendment or registration statement has not been declared effective by the sixtieth (60th) Business Day following the
closing of the Business Combination, holders of the Warrants shall have the right, during the period beginning on the sixty-first (61st) Business Day after the closing of the Business Combination
and ending upon such post-effective amendment or registration statement being declared effective by the Commission, and during any other period when the Company shall fail to have maintained an effective registration statement covering the issuance
of the Ordinary Shares issuable upon exercise of the Warrants, to exercise such Warrants on a “cashless basis,” by exchanging the Warrants (in accordance with Section 3(a)(9) of the Securities Act or another exemption) for that number
of Ordinary Shares equal to the lesser of (A) the quotient obtained by dividing (x) the product of the number of Ordinary Shares underlying the Warrants, multiplied by the excess of the “Fair Market Value” (as defined below) less
the Warrant Price by (y) the Fair Market Value and (B) 0.361 per Warrant. Solely for purposes of this subsection 7.4.1, “Fair Market Value” shall mean the volume weighted average price of the Ordinary Shares as
reported during the ten (10) trading day period ending on the trading day prior to the date that notice of exercise is received by the Warrant Agent from the holder of such Warrants or its securities broker or intermediary. The date that notice
of “cashless exercise” is received by the Warrant Agent shall be conclusively determined by the Warrant Agent. In connection with the “cashless exercise” of a Public Warrant, the Company shall, upon request, provide the Warrant
Agent with an opinion of counsel for the Company (which shall be an outside law firm with securities law experience) stating that (i) the exercise of the Warrants on a “cashless basis” in accordance with this subsection 7.4.1
is not required to be registered under the Securities Act and (ii) the Ordinary Shares issued upon such exercise shall be freely tradable under United States federal securities laws by anyone who is not an affiliate (as such term is defined in
Rule 144 under the Securities Act) of the 

  
 17 

 
Company and, accordingly, shall not be required to bear a restrictive legend. Except as provided in subsection 7.4.2, for the avoidance of doubt, unless and until all of the Warrants have
been exercised or have expired, the Company shall continue to be obligated to comply with its registration obligations under the first three sentences of this subsection 7.4.1. 

7.4.2. Cashless Exercise at Company’s Option. If the Ordinary Shares are at the time of any exercise of a Public Warrant not
listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise
Public Warrants to exercise such Public Warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act as described in subsection 7.4.1 and (i) in the event the Company so elects, the Company shall
not be required to file or maintain in effect a registration statement for the registration, under the Securities Act, of the Class A Shares issuable upon exercise of the Warrants, notwithstanding anything in this Agreement to the contrary or
(ii) if the Company does not so elect, the Company agrees to use its commercially reasonable efforts to register or qualify for sale the Class A Shares issuable upon exercise of the Public Warrants under the blue sky laws of the state of
residence of the exercising Public Warrant holder to the extent an exemption is not available. 
 8. Concerning the Warrant Agent and
Other Matters. 
 8.1. Payment of Taxes. The Company shall from time to time promptly pay all taxes and charges that may be
imposed upon the Company or the Warrant Agent in respect of the issuance or delivery of Ordinary Shares upon the exercise of the Warrants, but the Company shall not be obligated to pay any transfer taxes in respect of the Warrants or such Ordinary
Shares. 
 8.2. Resignation, Consolidation, or Merger of Warrant Agent. 

8.2.1. Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and
be discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company
shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after it has been notified in writing of such resignation or incapacity by
the Warrant Agent or by the holder of a Warrant (who shall, with such notice, submit his, her or its Warrant for inspection by the Company), then the holder of any Warrant may apply to the Supreme Court of the State of New York for the County of New
York for the appointment of a successor Warrant Agent at the Company’s cost. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a corporation or other entity organized and existing under the laws of the
State of New York, in good standing and having its principal office in the United States of America, and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authority. After
appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties and obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any
further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an 

  
 18 

 
instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the
Company shall make, execute, acknowledge and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties and obligations.

 8.2.2. Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice
thereof to the predecessor Warrant Agent and the Transfer Agent for the Ordinary Shares not later than the effective date of any such appointment. 

8.2.3. Merger or Consolidation of Warrant Agent. Any entity into which the Warrant Agent may be merged or with which it may be
consolidated or any entity resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor Warrant Agent under this Agreement without any further act. 

8.3. Fees and Expenses of Warrant Agent. 

8.3.1. Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent
hereunder and shall, pursuant to its obligations under this Agreement, reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of its duties hereunder. 

8.3.2. Further Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed,
acknowledged and delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant Agent for the carrying out or performing of the provisions of this Agreement. 

8.4. Liability of Warrant Agent. 

8.4.1. Reliance on Company Statement. Whenever in the performance of its duties under this Agreement, the Warrant Agent shall deem it
necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed
to be conclusively proved and established by a statement signed by the Chief Executive Officer, the President, the Chief Financial Officer, Chief Operating Officer, the General Counsel, the Secretary or the Chairman of the Board of the Company and
delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions of this Agreement. 

8.4.2. Indemnity. The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct, fraud or bad
faith. The Company agrees to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, out-of-pocket costs and reasonable
outside counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement, except as a result of the Warrant Agent’s gross negligence, willful misconduct, fraud or bad faith. 

  
 19 

 8.4.3. Exclusions. The Warrant Agent shall have no responsibility with respect to the
validity of this Agreement or with respect to the validity or execution of any Warrant (except its countersignature thereof). The Warrant Agent shall not be responsible for any breach by the Company of any covenant or condition contained in this
Agreement or in any Warrant. The Warrant Agent shall not be responsible to make any adjustments required under the provisions of Section 4 or responsible for the manner, method, or amount of any such adjustment or the
ascertaining of the existence of facts that would require any such adjustment; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Ordinary Shares to be issued pursuant to
this Agreement or any Warrant or as to whether any Ordinary Shares shall, when issued, be valid and fully paid and nonassessable. 
 8.5.
Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the terms and conditions herein set forth and among other things, shall account promptly to the Company with
respect to Warrants exercised and concurrently account for, and pay to the Company, all monies received by the Warrant Agent for the purchase of Ordinary Shares through the exercise of the Warrants. 

8.6. Waiver. The Warrant Agent has no right of set-off or any other right, title, interest or
claim of any kind (“Claim”) in, or to any distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof, by and between the Company and Continental Stock
Transfer & Trust Company as trustee thereunder) and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever. The Warrant Agent hereby waives any and all
Claims against the Trust Account and any and all rights to seek access to the Trust Account. 
 9. Miscellaneous Provisions. 

9.1. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall
bind and inure to the benefit of their respective successors and assigns. 
 9.2. Notices. Any notice, statement or demand authorized
by this Agreement to be given or made by the Warrant Agent or by the holder of any Warrant to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service
within five (5) days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Company with the Warrant Agent), as follows: 

Waverley Capital Acquisition Corp. 1 

535 Ramona Street, Suite #8 

Palo Alto, CA 94301 
 Attention:
Daniel V. Leff, Chief Executive Officer 

  
 20 

 with a copy to: 

Paul, Weiss, Rifkind, Wharton & Garrison LLP 

1285 Avenue of the Americas 

New York, New York 10019 

Attention: Raphael M. Russo 

Any notice, statement or demand authorized by this Agreement to be given or made by the holder of any Warrant or by the Company to or on the
Warrant Agent shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) days after deposit of such notice, postage prepaid, addressed (until another
address is filed in writing by the Warrant Agent with the Company), as follows: 
 Continental Stock Transfer & Trust Company 

One State Street, 30th Floor 

New York, New York 10004 

Attention: Compliance Department 

in each case, with a copy to: 

J.P. Morgan Securities LLC 
 383
Madison Avenue 
 New York, New York 10179 

Attn: Equity Syndicate Desk 

9.3. Applicable Law and Exclusive Forum. The validity, interpretation, and performance of this Agreement and of the Warrants shall be
governed in all respects by the laws of the State of New York. Subject to applicable law, the Company hereby agrees that any action, proceeding or claim against it arising out of or relating in any way to this Agreement shall be brought and enforced
in the courts of the City of New York, County of New York, State of New York or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive forum for any
such action, proceeding or claim. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Notwithstanding the foregoing, the provisions of this paragraph will not apply to suits
brought to enforce (i) any liability or duty created by the Exchange Act or the rules and regulations thereunder for which Section 27 of the Exchange Act creates exclusive federal jurisdiction, (ii) with respect to suits brought in
federal district courts of the United States, any duty or liability created by the Securities Act or the rules and regulations thereunder for which Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts or
(iii) any other claim for which the federal district courts of the United States of America are the sole and exclusive forum. 
 Any
person or entity purchasing or otherwise acquiring any interest in the Warrants shall be deemed to have notice of and to have consented to the forum provisions in this Section 9. If any action, the subject matter of which
is within the scope of the forum provisions above, is filed in a court other than a court located within the City of New York, County of New York, State of New York or the United States District Court for the Southern District of New York (a
“foreign action”) 

  
 21 

 
in the name of any warrant holder, such warrant holder shall be deemed to have consented to: (x) the personal jurisdiction of the state and federal courts located within the State of New
York or the United States District Court for the Southern District of New York in connection with any action brought in any such court to enforce the forum provisions (an “enforcement action”), and (y) having service of
process made upon such warrant holder in any such enforcement action by service upon such warrant holder’s counsel in the foreign action as agent for such warrant holder. 

9.4. Persons Having Rights under this Agreement. Nothing in this Agreement shall be construed to confer upon, or give to, any person,
corporation or other entity other than the parties hereto and the Registered Holders of the Warrants any right, remedy, or claim under or by reason of this Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All
covenants, conditions, stipulations, promises and agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors and assigns and of the Registered Holders of the Warrants. 

9.5. Examination of the Warrant Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the
Warrant Agent in the United States of America, for inspection by the Registered Holder of any Warrant. The Warrant Agent may require any such holder to submit such holder’s Warrant for inspection by the Warrant Agent. 

9.6. Counterparts. This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

9.7. Effect of Headings. The section headings herein are for convenience only and are not part of this Agreement and shall not affect
the interpretation thereof. 
 9.8. Amendments. This Agreement may be amended by the parties hereto without the consent of any
Registered Holder (i) for the purpose of (x) curing any ambiguity or to correct any mistake or defective provision contained herein, including to conform the provisions hereof to the description of the terms of the Warrants and this
Agreement set forth in the Prospectus, (y) amending the definition of “Ordinary Cash Dividend” as contemplated by and in accordance with the second sentence of subsection 4.1.2 or (z) adding or changing any
provisions with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties deem shall not adversely affect the rights of the Registered Holders under this Agreement and
(ii) to provide for the delivery of Alternative Issuance pursuant to Section 4.5. All other modifications or amendments, including any modification or amendment to increase the Warrant Price or shorten the Exercise
Period and any amendment to the terms of only the Private Placement Warrants, shall require the vote or written consent of the Registered Holders of 50% of the then-outstanding Public Warrants and, solely with respect to any amendment to the terms
of the Private Placement Warrants or Working Capital Warrants or any provision of this Agreement with respect to the Private Placement Warrants or Working Capital Warrants, 50% of the then-outstanding Private Placement Warrants and Working Capital
Warrants. Notwithstanding the foregoing, the Company may lower the Warrant Price or extend the duration of the Exercise Period pursuant to Sections 3.1 and 3.2, respectively, without the consent of the Registered Holders. 

  
 22 

 9.9. Severability. This Agreement shall be deemed severable, and the invalidity or
unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties
hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable. 

[Signature Page Follows] 

  
 23 

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

					
	CONTINENTAL STOCK TRANSFER & TRUST COMPANY,
	as Warrant Agent
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	WAVERLEY CAPITAL ACQUISITION CORP. 1
		
	By:	 	  

		 	Name:	 	Daniel V. Leff
		 	Title:	 	Chief Executive Officer

  
 [Signature Page to
Warrant Agreement—Waverley Capital Acquisition Corp. 1] 

 EXHIBIT A 

SPECIMEN WARRANT CERTIFICATE 

[FACE] 
  

			
	NUMBER W–[                    ]	  	CUSIP [                    ]

 Warrants 

THIS WARRANT SHALL BE VOID IF NOT EXERCISED PRIOR TO 

THE EXPIRATION OF THE EXERCISE PERIOD PROVIDED FOR 

IN THE WARRANT AGREEMENT DESCRIBED BELOW 

WAVERLEY CAPITAL ACQUISITION CORP. 1 

Incorporated Under the Laws of the Cayman Islands 

Warrant Certificate 

THIS WARRANT CERTIFICATE CERTIFIES THAT
[                    ], or registered assigns, is the registered holder of
[                    ] warrant(s) evidenced hereby (the “Warrants” and, each, a “Warrant”) to
purchase Class A ordinary shares, $0.0001 par value per share (“Ordinary Shares”), of Waverley Capital Acquisition Corp. 1, a Cayman Islands exempted company (the “Company”). Each whole Warrant
entitles the holder, upon exercise during the period set forth in the Warrant Agreement referred to below, to receive from the Company that number of fully paid and non-assessable Ordinary Shares as set forth
below, at the exercise price (the “Exercise Price”) as determined pursuant to the Warrant Agreement, payable in lawful money of the United States of America (or through “cashless exercise” as provided for in the
Warrant Agreement) upon surrender of this Warrant Certificate and payment of the Exercise Price at the office or agency of the Warrant Agent referred to below, subject to the conditions set forth herein and in the Warrant Agreement. Capitalized
terms used but not defined in this Warrant Certificate shall have the respective meanings given to them in the Warrant Agreement. 
 Each
whole Warrant is initially exercisable for one fully paid and non-assessable Ordinary Share. Fractional shares shall not be issued upon exercise of any Warrant. If, upon the exercise of the Warrants, a holder
would be entitled to receive a fractional interest in an Ordinary Share, the Company shall, upon exercise, round down to the nearest whole number the number of Ordinary Shares to be issued to the holder of the Warrants. The number of Ordinary Shares
issuable upon exercise of the Warrants is subject to adjustment upon the occurrence of certain events as set forth in the Warrant Agreement. 

The initial Exercise Price per one Ordinary Share for any Warrant is equal to $11.50 per share. The Exercise Price is subject to adjustment
upon the occurrence of certain events as set forth in the Warrant Agreement. 
 Subject to the conditions set forth in the Warrant
Agreement, the Warrants may be exercised only during the Exercise Period and to the extent not exercised by the end of the Exercise Period, the Warrants shall become void. The Warrants may be redeemed, subject to certain conditions, as set forth in
the Warrant Agreement. 

  
 A-1 

 Reference is hereby made to the provisions of this Warrant Certificate set forth on the
reverse hereof and such further provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This
Warrant Certificate shall not be valid unless countersigned by the Warrant Agent. 
 This Warrant Certificate shall be governed by, and
construed in accordance with, the internal laws of the State of New York. 
 * * * * * 

  
 A-2 

 
					
	WAVERLEY CAPITAL ACQUISITION CORP. 1
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	CONTINENTAL STOCK TRANSFER & TRUST COMPANY,
	as Warrant Agent
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  
 A-3 

 [REVERSE] 

The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of Warrants entitling the holder on exercise to receive
[                    ] Ordinary Shares and are issued or to be issued pursuant to the Warrant Agreement, dated as of
[                    ], 2021 (as amended, supplemented or otherwise modified from time to time, the “Warrant Agreement”),
duly executed and delivered by the Company to Continental Stock Transfer & Trust Company, a New York limited purpose trust company, as warrant agent (the “Warrant Agent”), which Warrant Agreement is hereby
incorporated by reference in and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Warrant Agent, the Company and the holders (the
words “holders” or “holder” meaning the Registered Holders or Registered Holder, respectively) of the Warrants. A copy of the Warrant Agreement may be obtained by the holder hereof upon written request
to the Company. Capitalized terms used but not defined in this Warrant Certificate shall have the respective meanings given to them in the Warrant Agreement. 

Warrants may be exercised at any time during the Exercise Period set forth in the Warrant Agreement. The holder of the Warrants evidenced by
this Warrant Certificate may exercise them by surrendering this Warrant Certificate, with the form of Election to Purchase set forth hereon properly completed and executed, together with payment of the Exercise Price as specified in the Warrant
Agreement (or through “cashless exercise” as provided for in the Warrant Agreement) at the principal corporate trust office of the Warrant Agent. In the event that upon any exercise of Warrants evidenced hereby the number of Warrants
exercised shall be less than the total number of Warrants evidenced hereby, there shall be issued to the holder hereof or his, her or its assignee, a new Warrant Certificate evidencing the number of Warrants not exercised. 

Notwithstanding anything else in this Warrant Certificate or the Warrant Agreement, no Warrant may be exercised unless at the time of exercise
(i) a registration statement covering the Ordinary Shares to be issued upon exercise is effective under the Securities Act and (ii) a prospectus thereunder relating to the Ordinary Shares is current, except through “cashless
exercise” as provided for in the Warrant Agreement. 
 The Warrant Agreement provides that, upon the occurrence of certain events, the
number of Ordinary Shares issuable upon exercise of the Warrants set forth on the face hereof may, subject to certain conditions, be adjusted. If, upon exercise of a Warrant, the holder thereof would be entitled to receive a fractional interest in
an Ordinary Share, the Company shall, upon exercise, round down to the nearest whole number of Ordinary Shares to be issued to the holder of the Warrant. 

This Warrant Certificate, when surrendered at the principal corporate trust office of the Warrant Agent by the Registered Holder thereof in
person or by legal representative or attorney duly authorized in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate or
Warrant Certificates of like tenor evidencing in the aggregate a like number of Warrants. 

  
 A-4 

 Upon due presentation for registration of transfer of this Warrant Certificate at the office
of the Warrant Agent, a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this Warrant Certificate, subject to the limitations
provided in the Warrant Agreement, without charge except for any tax or other governmental charge imposed in connection therewith. 
 The
Company and the Warrant Agent may deem and treat the Registered Holder(s) hereof as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise
hereof and any distribution to the holder(s) hereof and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. Neither the Warrants nor this Warrant Certificate entitles any holder
hereof to any rights of a shareholder of the Company. 

  
 A-5 

 ELECTION TO PURCHASE 

(To Be Executed Upon Exercise of Warrant) 

The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, to receive
[                    ] Ordinary Shares and herewith tenders payment for such Ordinary Shares to the order of Waverley Capital Acquisition Corp. 1
(the “Company”) in the amount of $[            ] in accordance with the terms hereof. The undersigned requests that the register of members of the Company be updated
to reflect the issuance of such Ordinary Shares and a certificate for such Ordinary Shares be registered in the name of [                    ], whose
address is [                    ], and that such Ordinary Shares be delivered to
[                    ], whose address is
[                    ]. If said number of Ordinary Shares is less than all of the Ordinary Shares purchasable hereunder, the undersigned requests
that a new Warrant Certificate representing the remaining balance of such Ordinary Shares be registered in the name of [                    ], whose
address is [                    ] and that such Warrant Certificate be delivered to
[                    ], whose address is
[                    ]. 
 In the event
that the Warrant has been called for redemption by the Company pursuant to Section 6.2 of the Warrant Agreement and a holder thereof elects to exercise its Warrant pursuant to a Make-Whole Exercise, the number of Ordinary Shares that this
Warrant is exercisable for shall be determined in accordance with subsection 3.3.1(c) or Section 6.2 of the Warrant Agreement, as applicable. 

In the event that the Warrant is a Private Placement Warrant that is to be exercised on a “cashless” basis pursuant to subsection
3.3.1(c) of the Warrant Agreement, the number of Ordinary Shares that this Warrant is exercisable for shall be determined in accordance with subsection 3.3.1(c) of the Warrant Agreement. 

In the event that the Warrant is to be exercised on a “cashless” basis pursuant to Section 7.4 of the Warrant Agreement, the
number of Ordinary Shares that this Warrant is exercisable for shall be determined in accordance with Section 7.4 of the Warrant Agreement. 

In the event that the Warrant may be exercised, to the extent allowed by the Warrant Agreement, through cashless exercise, (i) the number
of Ordinary Shares that this Warrant is exercisable for shall be determined in accordance with the relevant section of the Warrant Agreement which allows for such cashless exercise and (ii) the holder hereof shall complete the following: The
undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, through the cashless exercise provisions of the Warrant Agreement, to receive Ordinary Shares. If said number of Ordinary Shares is less than all
of the Ordinary Shares purchasable hereunder (after giving effect to the cashless exercise), the undersigned requests that a new Warrant Certificate representing the remaining balance of such Ordinary Shares be registered in the name of
[                    ], whose address is
[                    ] and that such Warrant Certificate be delivered to
[                    ], whose address is
[                    ]. 
 [Signature
Page Follows] 

  
 A-6 

 Date:
[                    ], 20[    ] 
  

	
	(Signature)
	
	(Address)
	
	(Tax Identification Number)

  

	
	Signature(s) Guaranteed:
	
	  

	
	 THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT
UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15 UNDER THE SECURITIES

EXCHANGE ACT OF 1934, AS AMENDED (OR ANY SUCCESSOR RULE).

  
 A-7 

 EXHIBIT B 

PRIVATE PLACEMENT WARRANTS LEGEND 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. IN ADDITION, SUBJECT TO
ANY ADDITIONAL LIMITATIONS ON TRANSFER DESCRIBED IN THE LETTER AGREEMENT BY AND AMONG WAVERLEY CAPITAL ACQUISITION CORP. 1 (THE “COMPANY”), WCAC1 SPONSOR LLC AND THE OTHER PARTIES THERETO, THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY NOT BE SOLD OR TRANSFERRED PRIOR TO THE DATE THAT IS THIRTY (30) DAYS AFTER THE DATE UPON WHICH THE COMPANY COMPLETES ITS INITIAL BUSINESS COMBINATION (AS DEFINED IN SECTION 3 OF THE WARRANT AGREEMENT REFERRED TO HEREIN) EXCEPT
TO A PERMITTED TRANSFEREE (AS DEFINED IN SECTION 2 OF THE WARRANT AGREEMENT REFERRED TO HEREIN) WHO AGREES IN WRITING WITH THE COMPANY TO BE SUBJECT TO SUCH TRANSFER PROVISIONS. 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND CLASS A ORDINARY SHARES OF THE COMPANY ISSUED UPON EXERCISE OF SUCH SECURITIES SHALL BE
ENTITLED TO REGISTRATION RIGHTS UNDER A REGISTRATION AND SHAREHOLDER RIGHTS AGREEMENT TO BE EXECUTED BY THE COMPANY. 
 NO.
[            ] WARRANT 

  
 B-1Exhibit 10.1

 

OPERATING
AGREEMENT

 

OF

 

NOBILITY
HEALTHCARE, LLC

 

 

 

a
kANSAS lIMITED lIABILITY COMPANY

 

 

 

Dated:
June 1, 2021

 

 

 

 

 

 

 

 

 

 

THE
UNITS OF MEMBER INTEREST IN THIS COMPANY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES
LAWS, AND MAY NOT BE TRANSFERRED IN THE ABSENCE OF REGISTRATION PURSUANT TO THE APPLICABLE SECURITIES LAWS OR AN EXEMPTION THEREFROM.
THE UNITS OF MEMBER INTEREST IN THIS COMPANY ARE ALSO SUBJECT TO RESTRICTIONS UPON TRANSFER SET FORTH IN THIS AGREEMENT, AND MAY ONLY
BE TRANSFERRED OR ENCUMBERED IN ACCORDANCE WITH THIS AGREEMENT.

 

    	 

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE
    1	DEFINITIONS
    AND RULES OF INTERPRETATION	1
	 	 	 
	1.1	Definitions	1
	1.2	Other
    Definitions	5
	1.3	Interpretation	5
	 	 	 
	ARTICLE
    2	FORMATION
    AND ORGANIZATION	5
	 	 	 
	2.1	Formation	5
	2.2	Company
    Name	6
	2.3	Purpose
    and Character of Business	6
	2.4	Term	6
	2.5	Registered
    Office and Registered Agent	6
	2.6	Initial
    Filings	6
	2.7	Priority	6
	2.8	No
    Partnership or Joint Venture	6
	 	 	 
	ARTICLE
    3 	MEMBERS	6
	 	 	 
	3.1	Existing
    Members	6
	3.2	Admission
    of New Members	7
	3.3	Withdrawal
    of Members	7
	3.4	Information
    Rights of Members	8
	3.5	Limits
    Upon Authority of Members	8
	3.6	Limited
    Liability	8
	3.7	Indemnity	8
	 	 	 
	ARTICLE
    4 	MEMBER
    INTERESTS, UNITS & PERCENTAGE INTERESTS	8
	 	 	 
	4.1	Units	8
	4.2	Additional
    Units	9
	4.3	Preemptive
    Rights	9
	4.4	Redemptions
    and Company Acquired Units	9
	4.5	Percentage
    Interests	9
	4.6	Certificates	9
	 	 	 
	ARTICLE
    5 	VOTING
    RIGHTS OF MEMBERS	10
	 	 	 
	5.1	Voting
    Rights of Members	10
	5.2	Non-Voting
    Units	10
	5.3	Conversion
    of Voting Units to Non-Voting Units	10
	5.4	Conversion
    of Non-Voting Units to Voting Units	11
	5.5	Meetings
    of Members	11
	 	 	 
	ARTICLE
    6 	CAPITAL
    AND MEMBER LOANS	12
	 	 	
	6.1	Capital
    Accounts	12

 

    	i

     

    

 

	6.2	Capital
    Contributions by Existing Members	12
	6.3	Additional
    Capital Contnributions	12
	6.4	Miscellaneous	12
	6.5	Member
    Loans	12
	 	 	 
	ARTICLE
    7 	ACCOUNTING
    AND TAX MATTERS	12
	 	 	 
	7.1	Fiscal
    Year: Accounting Method	12
	7.2	Tax
    Status	12
	7.3	Tax
    Allocations	13
	7.4	Tax
    Returns	13
	7.5	Bank
    Accounts	13
	7.6	Books
    and Records	13
	 	 	 
	ARTICLE
    8 	DISTRIBUTIONS	13
	 	 	 
	8.1	Distributable
    Cash	13
	8.2	Tax
    Distribution	14
	8.3	Non-Dissolution
    Distributions	14
	8.4	Miscellaneous	14
	8.5	Dissolution
    Distributions	14
	 	 	 
	ARTICLE
    9	MANAGEMENT	14
	 	 	
	9.1	Manager
    Managed	14
	9.2	Authority
    of Manager	15
	9.3	Term	16
	9.4	Compensation
    of Managers	18
	9.5	Performance
    of Duties; Liability of Managers	18
	9.6	Limited
    Liability	19
	9.7	Officers	19
	9.8	Indemnity	19
	 	 	 
	ARTICLE
    10	TRANSFERS
    OF MEMBER INTERESTS	19
	 	 	 
	10.1	Transfer
    Notice	19
	10.2	Restrictions
    on Lien Transfers	19
	10.3	Restrictions
    on Other Transfers	20
	10.4	Permitted
    Transfers	21
	10.5	Company’s
    Right to Redeem	23
	10.6	Effect
    of Transfer	23
	10.7	Authorization
    to Implement - Power of Attorney	23
	 	 	 
	ARTICLE
    11	COVENANTS
    AND PROHIBITED ACTIONS	23
	 	 	
	11.1	Other
    Business Ventures or Opportunities	23
	11.2	Contracts
    with Members or Others	24
	11.3	Trade
    Secrets, Confidential Information, Competition	24
	11.4	Business
    Property	25
	11.5	Actions
    Requiring a Super Majority Vote	25

 

    	ii

     

    

 

	ARTICLE
    12	DISSOLUTION	27
	 	 	
	12.1	Dissolution
    Events 	27
	12.2	Wind
    Up	27
	12.3	Order
    of Payment of Liabilities and Dissolution Distributions	27
	12.4	Limitation
    to Dissolution Distributions	27
	12.5	No
    Action for Dissolution	28
	 	 	 
	ARTICLE
    13	CERTAIN
    ACKNOWLEDGMENTS AND DISCLOSURES	28
	 	 	 
	13.1	Member
    Acknowledgments and Representations	28
	13.2	Drafting
    Counsel	28
	13.3	Tax
    Consequences	28
	13.4	Reasonable
    Terms	28
	 	 	 
	ARTICLE
    14	MISCELLANEOUS
    MATTERS	28
	 	 	 
	14.1	Further
    Assurances	28
	14.2	Waiver
    of Default	29
	14.3	Discretion
    in Providing Consent	29
	14.4	Amendments
    to Agreement	29
	14.5	Notices	30
	14.6	No
    Third Party Rights	30
	14.7	Severability	30
	14.8	Survivial	30
	14.9	Binding
    Agreement	30
	14.10	Signatures	30
	14.11	Exhibits	30
	14.12	No
    Right to Employment	30
	14.13	Governing
    Law; Forum	30
	14.14	Entire
    Agreement	31
	 	 	 
	MEMBER
    ROSTER EXHIBIT A	34
	MEMBER
    UNITS EXHIBIT B	35
	TAX
    COMPLIANCE EXHIBIT C	36
	MEMBER
    CAPITAL EXHIBIT D	40

 

    	iii

     

    

 

EXHIBIT
10.1

 

OPERATING
AGREEMENT

OF

NOBILITY
HEALTHCARE OPERATING AGREEMENT, LLC

 

This
Operating Agreement of Nobility Healthcare, LLC (this “Agreement”) is made and entered into as of June 1, 2021 (the
“Effective Date”) by and among Member Nobility, LLC (collectively, for itself and its parents, subsidiaries, and Affiliates,
“Nobility”), Digital Ally, Inc. (collectively, for itself and its parents, subsidiaries, and Affiliates, “Digital
Ally”), and any other Persons whose signatures appear on the signature page hereof, each of whom is executing this Agreement
as a Member of the Company, and all of whom constitute all of the Members of the Company, and is joined in by Nobility Healthcare, LLC,
a Kansas limited liability company (the “Company”), for the purpose of covenants made in this Agreement by or for
the benefit of the Company.

 

WHEREAS,
the Company was organized on the Effective Date as a limited liability company in accordance with the Kansas Revised Limited Liability
Company Act, as amended from time to time; and

 

WHEREAS,
the Members desire to enter into this Agreement to govern the organization and operation of the Company and the scope and conduct of
its business and affairs;

 

NOW,
THEREFORE, in consideration of the premises and the mutual agreements contained herein, the parties agree as follows:

 

ARTICLE
1

DEFINITIONS
AND RULES OF INTERPRETATION

 

1.1.
Definitions. For the purpose of this Agreement, the following terms shall have the following meanings, unless the context otherwise
requires:

 

	 	(a)	“Act”
    means the Kansas Revised Limited Liability Company Act referenced in K.S.A. § 17-7662, as amended or replaced from time to time.
	 	 	 
	 	(b)	“Adjusted
    Capital Contributions” means a Member’s total Capital Contributions less the cumulative Distributions made to the Members
    pursuant to this Agreement. At the point at which the Member Digital Ally receives Recoupment, its Adjusted Capital Contributions
    shall be zero.
	 	 	 
	 	(c)	“Affiliate”
    of a subject Person means any other Person (i) who directly or indirectly controls, is controlled by, or is under common control
    with the subject Person; (ii) who owns or controls ten percent (10%) or more of the subject Person’s outstanding voting securities
    or equity interests; (iii) of whom the subject Person owns or controls ten percent (10%) or more of the outstanding voting securities
    or equity interests; (iv) who is a director, manager, partner, or trustee of the subject Person; (v) of whom the subject Person is
    a director, manager, partner, or trustee; or (vi) who is a Family Member of the subject Person.
	 	 	 
	 	(d)	“Agreement”
    means this Operating Agreement of Nobility Healthcare, LLC as amended or restated from time to time.

 

    	1 

     

    

 

	 	(e)	“Applicable
    Federal Rate” means the minimum rate established pursuant to Sections 483 and 1274 of the Code necessary to avoid any imputed
    interest or original issue discount being attributed.
	 	 	 
	 	(f)	“Articles
    of Organization” means the Articles of Organization of the Company filed with the State of Kansas, as amended or restated
    from time to time.
	 	 	 
	 	(g)	“Assignee”
    means a Person who has acquired Units in the manner described in Section 10.6. An Assignee shall have the status of an assignee
    as described in K.S.A. 17-76,112 of the Act. Without limiting the foregoing, an Assignee shall be entitled to receive Tax Allocations
    and distributions under this Agreement as if the Assignee were a Member. Otherwise, an Assignee shall not be a Member and shall have
    no rights of a Member, including no right to participate in the management of the Company and no right to vote on, consent to, or
    approve any matter.
	 	 	 
	 	(h)	“Authorized
    Units” means Units that have been authorized in accordance with this Agreement for issuance to Members. Authorized Units
    shall consist of both Issued Units and Non-Issued Units.
	 	 	 
	 	(i)	“Business
    Property” means the Properties, and all property, holdings, investments, assets and interests (whether real or personal,
    tangible or intangible, present or future, domestic or international) now or hereafter owned or held by the Company.
	 	 	 
	 	(j)	“Capital
    Contribution” means the cash or cash equivalent contributed to the capital of the Company by each Member, but shall not
    include Member Loans.
	 	 	 
	 	(k)	“Code”
    means the Internal Revenue Code of 1986, as amended from time to time, the provisions of succeeding law, and, to the extent applicable,
    the Treasury Regulations.
	 	 	 
	 	(l)	“Company”
    means Nobility Healthcare, LLC, a Kansas limited liability company.
	 	 	 
	 	(m)	“Disabled”
    means, with respect to Christian J. Hoffmann, III, that Christian J. Hoffmann, III becomes disabled by reason of physical or mental
    illness, infirmity, or incapacity of any kind and is unable to perform the business services to the Company reasonably expected of
    him by Member Digital Ally for a period of ninety (90) consecutive calendar days or for periods aggregating one hundred thirty-five
    (135) days, whether or not consecutive, in a three hundred sixty-five (365) day period. as a result of any physical or mental incapacity,
    illness or infirmity.
	 	 	 
	 	(n)	“Dissolution
    Distributions” means distributions made pursuant to Article 12.
	 	 	 
	 	(o)	“Distributions”
    means distributions of Net Cash from Operations, Net Sales Proceeds and Tax Distributions that the Company makes to the Members,
    pursuant to Article 8.
	 	 	 
	 	(p)	“Entity”
    means a Person that is a corporation, a limited liability company, or any form of partnership.
	 	 	 
	 	(q)	“Issued
    Units” means the issued and outstanding Units, whether Voting or Non-Voting.
	 	 	 
	 	(r)	“Majority
    Vote” on a particular matter means the affirmative vote of more than fifty percent (50%) of the Units entitled to vote
    on that particular matter.

 

    	2 

     

    

 

	 	(s)	“Member”
    means an existing Member identified in Section 3.1 and any other Person admitted as a Member in accordance with Section
    3.2. “Members” collectively refers to all Members.
	 	 	 
	 	(t)	“Member
    Entitled to Vote” means a Member who holds one or more Units that are entitled to vote, regardless of whether the Member
    also holds one or more Non-Voting Units. “Members Entitled to Vote” collectively refers to all Members Entitled
    to Vote.
	 	 	 
	 	(u)	“Member
    Interest” means all rights of the Member owning such Member Interest to share in the profits and losses of the Company
    and distributions from the Company, together with all rights, duties and obligations of such Member arising under this Agreement
    or the Act. A Member Interest shall be personal property for all purposes.
	 	 	 
	 	(v)	“Net
    Cash from Operations” means all cash funds (other than Capital Contributions) received by the Company, without reduction
    for any non-cash charges, but less cash funds used to pay current operating expenses, including fees and reimbursements payable to
    the Manager as provided herein, and to pay or establish reasonable reserves for future expenses, Tax Reserves, debt payments, capital
    improvements and replacements as determined by the Manager. Net Cash from Operations shall be increased by the reduction of any reserve
    previously established.
	 	 	 
	 	(w)	“Net
    Sales Proceeds” means the net cash proceeds from all sales and other dispositions of the Business Property or portions
    thereof outside of the ordinary course of the Company’s business less any portion thereof used to establish reserves, including
    but not limited to Tax Reserves, all as is reasonably determined by the Manager, which reserves may be established to pay any Company
    expenses or obligations as reasonably determined by the Manager. “Net Sales Proceeds” shall include all principal and
    interest payments with respect to any note or other obligation received by the Company in connection with sales and other dispositions
    (other than in the ordinary course of business) of Property. At such point as the Manager determines that the unused balance of any
    such reserves previously retained out of funds that would otherwise have been Net Sales Proceeds is no longer necessary, the same
    shall thereupon be deemed Net Sales Proceeds.
	 	 	 
	 	(x)	“Non-Issued
    Units” means Units that have been authorized for future issuance in accordance with this Agreement (i.e., in options, warrants,
    offerings, Member resolutions, or other agreements with the Company), but which have not been issued by the Company to the recipient.
	 	 	 
	 	(y)	“Permitted
    New Member” refers to a permitted transferee that is admitted as a new Member as contemplated by Section 10.4.
	 	 	 
	 	(z)	“Person”
    includes individuals, partnerships, corporations, limited liability companies, trusts, and all other forms of entities.
	 	 	 
	 	(aa)	“Preferred
    Return” means, at any date of determination and with respect to the Member Digital Ally, an amount equal to a ten percent
    (10%) per annum cumulative, non-compounded rate of return which shall be calculated on the Adjusted Capital Contribution balances,
    as adjusted from time to time, of the Member Digital Ally. The Preferred Return will not commence on the Adjusted Capital Contributions
    of the Member Digital Ally until the Manager utilizes them in the business of the Company and provides Notice to the Member Digital
    Ally of the same.

 

    	3 

     

    

 

	 	(bb)	“Profits
    Interest” shall have the meaning given such term by Rev. Proc. 93-27, 1993-2 C.B. 343, as supplemented by Rev. Proc. 2001-43,
    2001-34 I.R.B. 191 (August 20, 2001).
	 	 	 
	 	(cc)	“Recoupment”
    shall mean any point or points at which Distributions to the Member Digital Ally under Article 8, “Distributions,” equal the aggregate Capital Contributions as of the time of the Distribution made by the Digital Member such that its
    Adjusted Capital Contributions are zero.
	 	 	 
	 	(dd)	“Subsidiaries”
    means each limited liability company formed by the Company for purposes of owning and holding one or more of the Properties.
	 	 	 
	 	(ee)	“Super
    Majority Vote” on a particular matter means the affirmative vote of at least seventy-five percent (75%) of the Units entitled
    to vote on that particular matter.
	 	 	 
	 	(ff)	“Transfer”
    means any voluntary or involuntary (whether by operation of law or otherwise) sale, assignment, barter, exchange, alienation, pledge,
    encumbrance, hypothecation, gift, donation, bequest, devise, redemption or other direct or indirect disposition of the whole or any
    part of a Member Interest. A “Lien Transfer” means a Transfer under which a creditor of a Member is granted or
    obtains a lien, security interest, charging order, or encumbrance upon the whole or any part of a Member Interest, whether voluntary
    or involuntary; provided, however, that the phrase “Lien Transfer” shall not mean (i) a sale of the whole or any part
    of a Member Interest that is disguised as a Lien Transfer; or (ii) the sale of the whole or part of a Member Interest that results
    from the exercise by the creditor of rights, if any, to dispose or to cause the disposition of the whole or part of the Member Interest
    that was encumbered as a result of a Lien Transfer.
	 	 	 
	 	(gg)	“Treasury
    Regulations” means the regulations currently in force as final or temporary that have been issued by the United States
    of America Department of Treasury pursuant to its authority under the Code.
	 	 	 
	 	(hh)	“Unapproved
    Transfer” means any Transfer designated or contemplated by this Agreement as being an Unapproved Transfer including in
    Section 10.2, Section 10.3, or Section 10.7.
	 	 	 
	 	(ii)	“Voting
    Units” means all Issued Units other than Non-Voting Units.

 

    	4 

     

    

 

1.2.
Other Definitions. In addition to the terms defined in Section 1.1, the following terms or phrases are defined or described
in the following Sections of this Agreement:

 

	Term
    or Phrase	Provision
	Approved
    Transfer	Section
    10.3
	Capital
    Account 	Section
    6.1
	Cash
    Purchase Price	Section
    10.3
	Conversion
    Date	Subsection
    5.3(b)
	Conversion
    Events	Section
    5.3
	Conversion
    Notice	Subsection
    5.3(a)
	Converted
    Member 	Section
    5.3
	Discriminatory
    Amendment	Subsection
    14.4(c)
	Dissolution
    Events	Section
    12.1
	Dissolution
    Proceeds	Section
    12.3
	Distributable
    Cash	Section
    8.1
	Effective
    Date	Recitals
	Electing
    Members	Subsection
    10.3(b)
	Entity
    Events	Subsection
    11.3(c)
	Exercise
    Notice	Subsection
    10.3(a)
	Formation
    Date	Section
    2.1
	Grantor	Subsections
    10.3(a)
	Impacted
    Member	Subsection
    14.4(c)
	Liquidator	Section
12.2
	Manager	Section
    9.1
	Manager’s
    Affiliates	Section
    9.3
	Member
    Loans	Section
    6.5
	Non-Voting
    Units	Section
    5.2
	Operating
    Reserve	Section
    8.1
	Other
    Members	Subsection
    10.3(b)
	Percentage
    Interest	Section
    4.5
	Permitted
    Transfer	Section
    10.4
	Principal
    Owner	Subsection
    10.4(e)
	Proposed
    Transfer Notice	Section
    10.3
	Redemption
    Price	Subsection
    10.5(a)
	Settlor	Subsection
    10.4(c)
	Subject
    Units	Subsection
    10.3(a)
	Tax
    Allocations	Section
    7.3
	Tax
    Distribution	Section
    8.2
	Tax
    Reserve	Section
    8.2
	Transfer
    Notice	Section
    10.1
	Units	Section
    4.1
	Voting
    Owner	Subsection
    4.7(b)
	Withdrawal
    Date	Section
    3.3
	Withdrawing
    Member	Section
    3.3

 

1.3.
Interpretation. Any pronoun used in this Agreement shall include the corresponding masculine, feminine and neutered forms. The
words “include” and “including” shall be deemed to be followed by the phrase “without limitation.”
The words “herein,” “hereof,” “hereto,” “hereunder,” and similar terms shall refer to
this Agreement, unless the context otherwise requires. The references to Exhibits, Sections, Subsections or Articles are references to
the Exhibits, Sections, Subsections or Articles of this Agreement unless the context otherwise requires. This Agreement shall be deemed
drafted equally by all parties, and no construction, presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provision of this Agreement.

 

ARTICLE
2

FORMATION
AND ORGANIZATION

 

2.1
Formation. The Company was formed pursuant to the Act as a limited liability company effective as of May 24, 2021 (the “Formation
Date”). The parties executing this Agreement as Members and all Persons admitted as Members pursuant to this Agreement agree
to associate as Members in and of the Company subject to the terms and conditions of this Agreement.

 

    	5 

     

    

 

2.2.
Company Name. The name of the Company is Nobility Healthcare, LLC. This name and any variants thereof shall be an exclusive asset
of the Company. The business of the Company shall be conducted under that name, or under the trade name “Nobility RCM,” or
under any other name as the Manager or a Majority Vote of the Members may determine from time to time.

 

2.3.
Purpose and Character of Business. The Company is organized for profit. The purpose and nature of its business shall be any lawful
activity for which a limited liability company may be organized under the Act, including, directly or indirectly, by and through Subsidiaries
(as defined below), to purchase, hold, operate, maintain, manage, and otherwise deal with revenue cycle management companies servicing
medical providers and the healthcare industry, i.e., medical billing companies, and other service entities from time to time (each, an
“RCM Company”) and to refinance outstanding debt incurred in connection with previous acquisitions. The RCM Companies
are collectively referred to as the “Properties”. The Company shall possess and may exercise all powers and privileges
that are necessary or convenient to the conduct of its business and purposes. The Company shall be empowered to transact and engage in
business in all states, territories and countries.

 

2.4.
Term. The term of the Company shall commence on the Formation Date and shall continue thereafter perpetually until the Company
is dissolved in accordance with this Agreement, the Articles of Organization, or the Act.

 

2.5.
Registered Office and Registered Agent. The location of the registered office and the name of the registered agent of the Company
in the State of Kansas shall be as stated in the Articles of Organization or as thereafter determined from time to time by the Manager.

 

2.6
Company Office. The Company known place of business in Arizona shall be 7465 East Osborn Road, Arizona 85251, or such substituted
or additional office as may be designated by the Manager from time to time. The affairs of the Company shall be conducted under the Company
name, a Subsidiary’s name or such other name(s) as the Manager may determine in its sole and absolute discretion.

 

2.7.
Initial Filings. The Articles of Organization have been filed to constitute the Company as a valid limited liability company in
the State of Kansas under the Act. The appropriate Manager or officer of the Company shall register, or cause the registration of, the
Company to transact business in such other jurisdictions as may be determined by the Manager.

 

2.8.
Priority. The rights and obligations of the Members and the business and affairs of the Company shall be governed first by the
mandatory provisions of the Act, second by the Articles of Organization, third by this Agreement, and fourth by the optional provisions
of the Act. In the event of any conflict among the foregoing, the conflict shall be resolved in the order of priority set forth in the
preceding sentence.

 

2.8.
No Partnership or Joint Venture. The Company is not a partnership or a joint venture between the Members. No Member shall be considered
a partner or joint venturer of any other Member for any purpose other than federal, state, and local tax purposes. This Agreement shall
not be construed to constitute or suggest otherwise.

 

ARTICLE
3

MEMBERS

 

3.1.
Existing Members. As of the Effective Date, the Members of the Company are the Persons set forth on Member Roster Exhibit A.

 

    	6 

     

    

 

3.2.
Admission of New Members. No Person shall be admitted as a new Member of the Company unless (a) the admission, and all terms and
conditions thereof, are approved by a Super Majority Vote; (b) the new Member executes a binding instrument agreeing to be bound by this
Agreement; (c) the new Member executes such other documents as are reasonably considered necessary or advisable by the Manager to complete
the admission of the new Member; and (d) it is determined to the satisfaction of the Company that the addition of the Person as a new
Member will not violate any applicable securities laws. This Section shall not apply to new Members admitted in conjunction with a Permitted
Transfer under Section 10.4. The admission of a new Member in violation of this Agreement is prohibited and is null and void ab
initio.

 

3.3.
Withdrawal of Members. Except as provided in this Agreement, no Member may withdraw from or resign as a Member of the Company
unless (a) the withdrawal and the terms thereof are approved by a Super Majority Vote of the non-withdrawing Members; and (b) the entire
Member Interest of the withdrawing Member (the “Withdrawing Member”) is purchased and redeemed by the Company in exchange
for a payment to be made by the Company to the Withdrawing Member in such amount and under such terms as are approved by the Withdrawing
Member and a Super Majority Vote of the non-withdrawing Members. The date of the withdrawal (the “Withdrawal Date”)
shall be a date set and approved by the Withdrawing Member and a Super Majority Vote of the non-withdrawing Members. If the Withdrawing
Member (or an Affiliate of such Member) is a Manager, then the Withdrawing Member (or the Affiliate) shall resign as a Manager effective
upon the Withdrawal Date.

 

	 	(a)
    	Unapproved
    Withdrawals. If a Member withdraws or resigns as a Member of the Company in breach of this Agreement, then the Member shall be
    automatically and immediately, and without any further action by the Company or the Members, converted to and hold the status of
    an Assignee with respect to such Person’s Member Interest. Upon such conversion, the Company shall have the right (but not
    the obligation) to redeem the Member Interest of such Person in exchange for a cash payment; provided such redemption right is exercised
    within ninety (90) days after the Company learns of the Member’s withdrawal or resignation by written notice of exercise delivered
    by or on behalf of the Company to such Member. The cash payment shall be in an amount equal to the lesser of (i) one-half
    of the price paid by such Person to acquire such Person’s Units; or (ii) one-half of the fair market value of such Units. The
    cash payment shall be remitted in accordance with the payment terms set forth in Subsection 3.3(b). The Company, in its sole
    discretion, may elect to avoid the calculation in Subsection (ii) and pay the amount under Subsection (i).
	 	 	 
	 	(b)	Redemption
    Payment Terms. The Company shall pay ten percent (10%) of the cash payment contemplated by Subsection 3.3(a) at the closing
    of the redemption contemplated by Subsection 3.3(a). The Company shall pay the balance of such cash payment, together with
    interest thereon at the Applicable Federal Rate, in sixty (60) equal monthly installments of principal and interest. The Company
    may prepay such balance and any accrued interest thereon in whole or in part at any time without penalty. The payee shall provide
    the Company with thirty (30) days’ written notice and opportunity to cure with respect to any failure of the Company to make
    any payment. The payee shall have no right to accelerate the balance upon default in payment. The redemption contemplated by Subsection
    3.3(a) shall be completed within thirty (30) days after the Company exercises its redemption right.

 

    	7 

     

    

 

3.4.
Information Rights of Members.

 

	 	(a)	Within
    ninety (90) days after the end of each fiscal year of the Company, the Company shall prepare and deliver to each Member internally
    prepared financial statements for such fiscal year, in a form and substance required by Member Digital Ally. These statements shall
    consist of a balance sheet and an income statement, and may include such other statements and information as determined by the Manager.
    Subject to the terms and conditions stated herein, each Member Entitled to Vote also shall have the right at reasonable times during
    business hours to conduct a reasonable inspection (or to have a professional representative conduct a reasonable inspection) of the
    Company’s books and records at the Company’s principal office; provided the inspection shall not interfere with the Company’s
    conduct of its business and affairs and repetitive requests shall be reasonable and made in good faith. In addition to regular audits
    by the auditors of a Member, Members also shall have the right to demand that the Company commission a special audit of the Company’s
    books if such audit is demanded by Members holding Percentage Interests in an aggregate amount equal to or greater than fifteen percent
    (15%); provided the costs of the audit shall be paid in advance by the Member or Members demanding the audit.
	 	 	 
	 	(b)	The
    Company shall have the right to object to the delivery of financial statements, the provision of information, and/or the inspection
    of books and records on the grounds that the Member, or its representative, is in a position to use such information to the Company’s
    competitive disadvantage. The Company also shall have the right (but not the obligation) to redact information, including from this
    Agreement, concerning the identity of Members and the identity of Persons holding rights to acquire Non-Issued Units, from the information
    provided by the Company to Members who hold only Non-Voting Units. This right to redact may be exercised by the Manager in its discretion.

 

3.5.
Limits Upon Authority of Members. No Member acting solely in the capacity of a Member is an agent of the Company or another Member,
nor can any Member in the capacity of a Member bind or act on behalf of the Company or another Member.

 

3.6.
Limited Liability. No Person who is properly acting as a Member of the Company shall be personally liable under any judgment of
a court, or in any other manner, for any debt, obligation, or liability of the Company, whether that liability or obligation arises in
contract, tort, or otherwise, solely by reason of being a Member. Unless the Member executes a written agreement to do so, the Member
shall not be bound to perform the obligations of the Company. The Members hereby adopt limited liability to the fullest extent stated
in the Act or provided by law. No Member, except as otherwise specifically provided in the Act, shall be obligated to pay any distribution
to or for the account of the Company or any creditor of the Company.

 

3.7.
Indemnity. The Company shall defend and indemnify each Member of and from any demands and claims asserted or brought by Persons
(other than the Company and other Members) against the Member in its capacity as a Member; provided, however, that the Company shall
not be required to indemnify any Member with respect to a judgment finding the Member liable for any intentional tort committed by the
Member.

 

ARTICLE
4

MEMBER
INTERESTS, UNITS, AND PERCENTAGE INTERESTS

 

4.1.
Units. Member Interests shall be divided into units (the “Units”) of ownership in the Company. As of the Effective
Date, the number of Authorized Units, the number of Issued Units and Non-Issued Units, the identity of the owners of Issued Units and
prospective owners of Non-Issued Units, the voting status of the Issued Units, any Approved Transfers, and the Percentage Interests held
by each Member are stated on Member Units Exhibit B.

 

    	8 

     

    

 

4.2.
Additional Units.

 

	 	(a)	Additional
    Authorized Units. The Company shall not authorize the issuance of any additional Units beyond the number of Authorized Units
    currently in effect unless the authorization of the additional Units (along with any terms and conditions to the issuance thereof)
    are approved by a Super Majority Vote.
	 	 	 
	 	(b)	Issuance
    of Additional Units. No new Units shall be issued to any Person unless the Manager approves of the issuance and the Person is
    a Member at the time of the issuance or is admitted as a new Member at the time of the issuance and the issuance is otherwise in
    accordance with Section 3.2.

 

4.3.
Preemptive Rights. With respect to the offering or issuance of additional Units in accordance with Section 4.2, each Member
Entitled to Vote shall have the preemptive right (but not the obligation) to participate pro-rata in the offering or issuance of such
Units in proportion to the respective Percentage Interests of such participating Members at the time of the offer or issuance; provided,
however, that such Members will not have any preemptive rights (i) with respect to Units issued to an employee of the Company or other
provider of services to the Company for or in connection with such services; or (ii) with respect to an offering or issuance of Units
if the offering or issuance was approved in accordance with this Section with a condition that there will be no preemptive rights. In
addition, any Member who is not an “Accredited Investors” (as defined in Rule 501(a) of Regulation D promulgated under the
Securities Act of 1933, as amended) shall not have a preemptive or other right to participate in an offering or issuance of Units by
the Company if such offering or issuance is being made only to Accredited Investors.

 

	 	(a)	Preemptive
    Rights Procedure. If an offering or issuance of additional Units is subject to preemptive rights under this Section, then the
    Company will give each Member Entitled to Vote written notice of its preemptive right. Each such Member will have twenty (20) calendar
    days after such notice to notify the Company that the Member will participate in the offering or issuance. If such Member fails to
    timely notify the Company of its participation, then the Member will have no preemptive right to participate in the offering or issuance.
    In implementing the offering or issuance, the Company and the Manager will rely upon, and will have the right to rely upon, the failure
    of such Member to notify the Company of its participation in the offering or issuance.

 

4.4.
Redemptions and Company Acquired Units. Unless otherwise determined by the Manager and a Majority Vote of the Members, all Units
or Member Interests acquired by the Company by redemption or otherwise shall be cancelled by the Company upon acquisition.

 

4.5.
Percentage Interests. The “Percentage Interest” of a Member means a fraction, expressed as a percentage, the
numerator of which is the total Issued Units held by the Member and the denominator of which is the total Issued Units. All transactions
causing changes in the Percentage Interests held by the Members shall be closed on the first day of a month. If a change in the Percentage
Interests occurs or is made on any other date of the month, the change shall be deemed to have been made on the first day of the month
in which the change in Percentage Interests occurred. As of the Effective Date, the Percentage Interests held by each Member are stated
on Member Units Exhibit B.

 

4.6.
Certificates. Unless otherwise determined by the Manager, Units will not be certificated. If certificates are issued, each certificate
shall bear a legend stating that the Units are not registered under any securities laws and further stating that the Units and Member
Interest evidenced thereby are subject to the restrictions on Transfer stated herein.

 

    	9 

     

    

 

ARTICLE
5

VOTING
RIGHTS OF MEMBERS

 

5.1.
Voting Rights of Members. Except as provided in this Article or in Article 9 with respect to the election of Managers,
a Member is entitled to vote on any matter that is reserved for a Member vote under this Agreement and each Voting Unit issued to and
held by a Member shall be entitled to one vote on each matter that is reserved under this Agreement for a Member vote. All votes by the
Members must be taken at a duly noticed meeting of the Members or through a duly executed consent provided in accordance with Subsection
5.5(b). A Majority Vote shall constitute a valid decision of the Members unless a different vote on a specific matter is required
by this Agreement or a mandatory provision of the Act.

 

5.2.
Non-Voting Units. Non-Voting Units (“Non-Voting Units”) shall not be entitled to any vote on any matter that
has been reserved under this Agreement for a Member vote, except as expressly provided in Section 14.4 with respect to Discriminatory
Amendments. In all other respects, except as expressly provided in this Agreement, Non-Voting Units are Units. The following Units shall
be Non-Voting Units: (i) Units acquired as Non-Voting Units by a Permitted New Member in accordance with Subsection 10.4(c), or
Subsection 10.4(d), (ii) Units that have been converted to Non-Voting Units in accordance with Section 5.3; and (iii) Units
that are authorized and issued by the Company as Non-Voting Units under Article 4 as a term or condition of their authorization
or issuance.

 

5.3.
Conversion of Voting Units to Non-Voting Units. All Voting Units held by a Member (the “Converted Member”)
will be converted to Non-Voting Units upon the occurrence of any of the following events (the “Conversion Events”):
(i) the filing of bankruptcy proceedings by or against the Member, unless the Manager and a Majority Vote of the Members determine, in
their sole discretion, that an involuntary bankruptcy proceeding filed against the Member likely will be dismissed; (ii) the appointment
of a receiver or liquidator of or for the Member or for all or any substantial part of the Member’s business or property; (iii)
an attachment, garnishment, levy, charging order (or any similar adverse creditor action) on or upon all or part of the Units or Member
Interest of the Member (or proceeds of such Member Interest) that is not vacated within thirty (30) calendar days, unless the Manager
and a Majority Vote of the Members determine, in their sole discretion, that the adverse creditor action is for an amount that is immaterial
to the value of the entire Member Interest or likely will be vacated; (iv) a Transfer resulting in the conversion of the Transferred
Voting Units to Non-Voting Units as contemplated by any of Subsections 10.4(c) and (d); (v) a determination by a court of competent
jurisdiction (or an arbitration panel with jurisdiction) that a Member has breached any of the covenants in Section 11.3; or (vi)
if the Member sends a Conversion Notice stating that the Member is voluntarily converting its Units to Non-Voting Units.

 

	 	(a)	Conversion
    Notice. Upon the occurrence of a Conversion Event, the Converted Member (or its legal successor or representative) shall provide
    written notice of the event (the “Conversion Notice”) to the Company and the other Members. Time shall be of the
    essence in providing the Conversion Notice. If another Member acquires knowledge of a Conversion Event, then such other Member shall
    promptly give notice thereof to the Company and all Members (including the Converted Member or its legal successor or representative),
    and such notice shall constitute a Conversion Notice from the Converted Member.

 

    	10 

     

    

 

	 	(b)	Implementation.
    Upon the occurrence of a Conversion Event, the Conversion Member’s Units shall immediately and automatically become Non-Voting
    Units on the Conversion Date without any further notice or action by the Company or the other Members. The date of conversion (the
    “Conversion Date”) shall be the day before the bankruptcy proceeding was commenced for the purpose of Subsection
    5.3(i); the day before the date of appointment for the purpose of Subsection 5.3(ii); the day which is thirty (30) calendar
    days after the adverse creditor action for the purpose of Subsection 5.3(iii); the date of the Transfer for the purpose of
    Subsection 5.3(iv); the date of the decision under Subsection 5.3(v); and the date stated in the Conversion Notice
    for the purpose of Subsection 5.3(vii).
	 	 	 
	 	(c)	Power
    of Attorney. Each Member hereby grants the Company the authority and an irrevocable power of attorney, which shall be deemed
    to be coupled with an interest, to implement the conversion of the voting status of such Member’s Units on the books and records
    of the Company.

 

5.4.
Conversion of Non-Voting Units to Voting Units. Non-Voting Units will be converted to Voting Units either (i) if the conversion
is approved by a Super Majority Vote; or (ii) if the Units were converted to Non-Voting Units under Subsections 5.3(i) through
5.3(iii) and the actions described in Subsections 5.3(i) through 5.3(iii) are reversed, dismissed or vacated to
the satisfaction of the Company.

 

5.5.
Meetings of Members. An annual meeting of the Members will not be held by the Company unless such meeting is called by the Manager
in its discretion. At an annual meeting, the Company shall report to the Members on the business and affairs of the Company, and the
Members shall transact such business as may be brought before the meeting. Special meetings of the Members, for any purpose, may be called
by the Manager or by any Member or group of Members holding a Percentage Interest equal to or greater than fifteen percent (15%). The
notice for a special meeting shall state the purpose of the meeting. The business transacted at the special meeting shall be limited
to such purpose. All meetings (annual or special) shall be held at the principal offices of the Company or another reasonable location
set by the Manager. Members shall be permitted to attend meetings (annual or special) by telephone.

 

	 	(a)	Notice
    of Meetings. Notice of a meeting of the Members shall state the place, date and hour of the meeting and, in the case of a special
    meeting, the purpose for which the special meeting is called. Notice shall be given to each Member not less than ten (10) nor more
    than sixty (60) days before the date of the meeting. Notice may be waived by a writing signed by the Member to be charged with the
    waiver. Furthermore, attendance of a Member at a meeting shall constitute a waiver of notice of such meeting, except when the Member
    attends for the express and exclusive purpose of objecting at the beginning of the meeting to the transaction of business on the
    grounds that the meeting was not lawfully called or convened.
	 	 	 
	 	(b)	Action
    by Consent. Any action which must or may be taken at a meeting of the Members may be taken without a meeting if a consent in
    writing, setting forth the actions so taken, is signed by Members holding the required number of Units or Percentage Interests to
    vote or act with respect to such action. A notice of a meeting of the Members is not required as a prerequisite to action by consent
    in accordance with this Subsection. After a written consent is reached and executed, the Company shall provide notice thereof within
    a reasonable time to all Members Entitled to Vote with respect to the action taken by such consent.
	 	 	 
	 	(c)	Proxies.
    Every Member Entitled to Vote shall have the right to do so either in person or by a written proxy; provided, however, that such
    Member may provide a proxy only to another Member or to a Family Member of such Member or to such other Person as is acceptable to
    the Manager. No proxy shall be valid after the expiration of one year after the date of the proxy.

 

    	11 

     

    

 

	 	(d)	Quorum.
    For votes requiring a quorum, Members holding the requisite number of Units or Percentage Interests to approve the matter subject
    to the vote shall constitute a quorum for the transaction of such business by the Members.

 

ARTICLE
6

CAPITAL
AND MEMBER LOANS

 

6.1.
Capital Accounts. The Company shall establish and maintain an individual Capital Account for each Member in accordance with Treasury
Regulations Section 1.704-1(b)(2)(iv) (the “Capital Account”). Each Capital Account will be credited with the Capital
Contributions made by the Members to the Company, and will be adjusted in accordance with the Treasury Regulations, this Agreement, and
Tax Compliance Exhibit C.

 

6.2.
Capital Contributions By Existing Members. Each Member has made Capital Contributions to the Company as of the Effective Date
in the amounts stated on Member Capital Exhibit D.

 

6.3.
Additional Capital Contributions. No Member shall be required to make a Capital Contribution to the Company without the prior
written consent of the Member; provided, however, that each Member understands that the Company may raise additional capital through
the offering and issuance of new Units in accordance with Article 4, and the offering and issuance of such new Units will result
in the dilution of the Percentage Interest held by a Member if the Member does not participate in the offering and issuance.

 

6.4.
Miscellaneous. No Member shall receive or be credited with any interest on a Capital Contribution or the balance of its Capital
Account. No Member shall be liable to the Company or another Member to restore any deficit Capital Account balance. Except as provided
in Article 8, no Member shall be entitled to receive any distributions from the Company prior to the dissolution of the Company.
Except as provided in this Agreement, no Member shall have priority over any other Member regarding the return of any Capital Contribution
and no Member shall be entitled to withdraw or reduce a Capital Contribution or to demand or require a return of any Capital Contribution.

 

6.5.
Member Loans. No loans shall be made by a Member to the Company unless the loan (a “Member Loan”), and all
terms and conditions thereof, are approved by the Manager and a Super Majority Vote of the Members. A Member Loan shall not be considered
a Capital Contribution.

 

ARTICLE
7

ACCOUNTING
AND TAX MATTERS

 

7.1.
Fiscal Year: Accounting Method. Unless changed by the Manager, the fiscal year and tax year for the Company shall end on December
31. The Manager shall determine the accounting methods to be used by the Company.

 

7.2.
Tax Status. Solely for the purpose of income taxes, the Company shall be classified as a partnership and will be subject to the
provisions of Subchapter K of Chapter 1 of Subtitle A of the Code; provided, however, that such classification shall not extend or be
construed as extending the purposes of the Company or to expand the obligations or liabilities of the Company or its Members. Nor shall
such classification create or be construed as creating a partnership or any joint venture relationship between the Members. The income
tax matters shall be handled in accordance with Tax Compliance Exhibit C.

 

    	12 

     

    

 

7.3.
Tax Allocations. The Company’s income, gains, losses, deductions, and credits and items thereof for each tax year (the “Tax
Allocations”) shall be allocated among all Members in proportion to their respective Percentage Interests. If the Percentage
Interests of the Members change during a tax year, then (a) the tax year shall be divided into accounting periods by reference to the
dates when the Percentage Interests were changed; (b) the Tax Allocations for the tax year shall be divided pro-rata among the accounting
periods in proportion to the number of days in the accounting period; and (c) the Tax Allocations for each accounting period shall be
allocated pro-rata among all Members in proportion to their respective Percentage Interests for the applicable accounting period.

 

7.4.
Tax Returns. The Company shall cause to be prepared and timely filed all federal, state and local income tax returns and other
returns or statements required by applicable law. In its discretion, the Manager may extend the filing deadlines to the fullest extent
permitted by applicable tax law. The Manager is hereby granted authority to execute tax returns on be behalf of the Company and, with
the consent of a majority of the Members, to delegate such authority to a Partnership Representative (“PR”) who shall
act as a liaison between the Company and the IRS, and, to the extent required by applicable
federal law, shall have the sole authority to bind the Company and the Members in a proceeding
brought under federal regulations. The PR shall serve in such capacity until such Person resigns or is replaced by the Manager,
provided, however, that the PR shall promptly notify the Members in writing regarding any events outside ordinary
tax matters. If for any reason the PR can no longer serve in that capacity, a new PR may be appointed by a Majority Vote. At least
twenty (20) days prior to the deadline (as extended) for the filing of the Company’s tax returns, the Company shall send or cause
to be sent to each Member the information needed by the Member to complete its federal, state, and local income tax returns.

 

7.5.
Bank Accounts. The Company shall maintain the funds of the Company in one or more separate bank accounts in the name of the Company,
and shall not permit the funds of the Company to be commingled with the funds of any other Person.

 

7.6.
Books and Records. The books and records of the Company shall reflect all transactions of the Company, and shall be appropriate
and adequate for the business of the Company. The Company shall maintain all records required by the Act.

 

ARTICLE
8

DISTRIBUTIONS

 

8.1.
Distributions of Net Cash from Operations.

 

(a)
The cash available for distribution on a particular date (the “Distributable Cash”) means Net Cash from
Operations held by the Company on the particular date, with the exception of (a) any cash held in an operating reserve for future
operating expenses of the Company (the “Operating Reserve”), (b) the cash held in the Tax Reserve, and (c) such
other cash reserves that are mandated by the Manager. The Operating Reserve shall be in an amount set by the Manager as a reasonable
estimate of the amount of cash that should be reserved to operate the Company. A Tax Distribution shall be deemed Distributable Cash
in the period when it is made. At any time that Member Digital Ally has a net operating loss, Member Digital Ally may require that
its portion of the Tax Reserve be distributed to it instead of retained.

 

(b).
Subject to the terms and conditions of this Agreement, the Manager shall, on a quarterly basis, or more frequently from time to time
as it may deem appropriate, determine the amount of Distributable Cash, if any, and distribute such amount in the following order of
priority: (i) to the Member Digital Ally in an amount equal to its Preferred Return; and then (ii) to the Members in proportions to
their respective Percentage Interests. If the Company has no Distributable Cash, then no distributions shall be made. Distributions
will be made only to Persons who are Members on the date of the distribution, and the amount of the distribution made to each Member
will be calculated on such date by reference to the Percentage Interests and other rights held by the Members on such date as shown
by the books and records of the Company.

 

    	13 

     

    

 

8.2
Net Sales Proceeds. The Manager shall, at any time and from time to time as it may deem appropriate, determine the amount
of Net Sales Proceeds available for distribution, if any, and cause the Company to distribute 100% of such amount to the Members in the
following order of priority:

 

	 	(i)	First,
    one hundred percent (100%) to the Member Digital Ally until it has received Distributions of Net Sales Proceeds in an amount equal
    to Recoupment plus any accrued Preferred Return not paid from previous Distributions; and
	 	 	 
	 	(ii)	Thereafter,
    to the Members in proportion to their respective Percentage Interests.

 

8.3.
Tax Distribution. During the course of each tax year, the Manager shall maintain a Tax Reserve in an amount between thirty-five
percent (35%) and forty-five percent (45%) of the estimated taxable income and gain (excluding guaranteed payments to Members) to be
allocated to the Members (the “Tax Reserve”). The funds held in the Tax Reserve for the year shall be distributed
to the Members (the “Tax Distribution”) in a timely manner to allow the tax (including estimated tax payments) attributable
to the income passed through the Company to the Members to be paid when due. The Tax Distribution shall be made pro-rata to all Members
in proportion to their respective Percentage Interests; provided, however, that if the Percentage Interests of the Members change during
a tax year, then (a) the tax year shall be divided into accounting periods by reference to the dates when the Percentage Interests were
changed; (b) the Tax Distribution shall be divided pro-rata among the accounting periods in proportion to the number of days in each
accounting period; and (c) the Tax Distribution for each accounting period shall be made pro-rata to the Members in proportion to their
respective Percentage Interests for the applicable accounting period.

 

8.4.
Miscellaneous. All distributions pursuant to this Article shall be in cash. Neither the Company nor the Manager shall incur any
liability for making distributions in accordance with this Article. The Company and the Manager shall have right to rely upon the records
of the Company in making distributions in accordance with this Article.

 

8.5.
Dissolution Distributions. If the Company is dissolved, the Dissolution Distributions upon dissolution will be governed by Article
12 instead of this Article 8.

 

ARTICLE
9

MANAGEMENT

 

9.1.
Manager Managed. Pursuant to the Act, the Company elects to be managed by managers and not by its Members. Unless otherwise agreed
by a Super Majority Vote, the Company shall have one (1) manager. A Manager need not be a Member or an Affiliate of a Member. Nobility,
LLC (“Nobility”) shall be the initial Manager. Only the Members Entitled to Vote shall have the right to elect a Person as
a Manager and in such election, if more than one manager is to be selected, the Members Entitled to Vote shall have the right to vote
their Voting Units cumulatively.

 

    	14 

     

    

 

9.2.
Authority of Manager. Except as limited by this Agreement, the Manager shall have full and complete authority, power and discretion
to manage the business, affairs, and property of the Company. Except as to matters requiring a vote of the Members as provided in this
Agreement, hereunder, the Manager, without the consent of any Member, shall have the following powers:

 

(a)
To acquire for investment, hold, maintain, operate, improve, develop, lease, sell, convey or dispose of the Properties, any interest
therein or appurtenant thereto, as well as any personal or mixed property which comprises the Properties, either directly or by and through
Subsidiaries;

 

(b)
To open bank accounts in the Company’s name or its Subsidiary’s name and manage such accounts; execute all documents and
do all things necessary to acquire the Properties; or to execute any other documents required in connection with the acquisition, maintenance,
operation or improvement of the Properties or reasonable or necessary in connection with the Company activities;

 

(c)
To employ or engage on behalf of the Company such other Persons, including Affiliates of the Manager, as in the Manager’s exclusive
discretion or judgment may be deemed advisable for the proper operation of the Company’s activities, upon such terms and for such
compensation as the Manager shall determine;

 

(d)
To Transfer any interest in any Property to a Subsidiary or otherwise;

 

(e)
To amend, and make all arrangements amending, this Agreement when necessary to reflect: a change in the name of the Company or the location
of the principal office of the Company; the disposal by a Member of his membership interest in the Company, in any manner permitted by
this Agreement, and any return of the Capital Contributions of a Member (or any part thereof) provided for by this Agreement; a change
of address of any Member; a Person becoming a Member of the Company as permitted by this Agreement; a change in any provisions of this
Agreement of the exercise by any Person of any right or rights hereunder not requiring the consent of such Member; and the exercise of
any right or rights under this Agreement requiring the consent or approval by the Members if the required consent or approval has been
given;

 

(f)
To make, execute, acknowledge and deliver such certificates, instruments and documents as may be required by, or may be appropriate under,
the laws of the State of Kansas or Arizona in connection with the use of the name of the Company by the Company;

 

(g)
To make, file or record with the appropriate public authority and, if required, publish the certificate, any amendments thereof, and
such other certificates, instruments and documents as may be required or appropriate in connection with the activities and affairs of
the Company, provided that such amendment, certificates or instruments shall not effect changes in this Agreement or the rights of the
Members under this Agreement, except as permitted by this Agreement;

 

(h)
To enter into such contracts and execute, acknowledge and deliver all instruments in connection therewith which the Manager deems necessary
to effectuate the powers set forth herein and to take all such action in connection therewith as the Manager deems necessary or appropriate;

 

(i)
To require in all Company contracts that the Manager shall not have any personal liability thereon but that the Person contracting with
the Company shall look solely to the Company and its assets for satisfaction;

 

    	15 

     

    

 

(j)
To establish and maintain reserves for such purposes and in such amounts as the Manager deems appropriate from time to time;

 

(k)
To pay, extend, renew, modify, adjust, submit to arbitration, prosecute, defend or compromise, upon such terms as the Manager may determine
and upon such evidence as the Manager may deem sufficient, any obligation, suit, liability, cause of action or claim, including taxes,
either in favor of or against the Company;

 

(l)
To reimburse the Manager or its Affiliates for expenses incurred in connection with the Company’s activities and to pay the compensation
to the Manager in accordance with this Agreement;

 

(m)
To offer and sell Units in the Company to investors directly pursuant to the terms and conditions of this Agreement;

 

(n)
To form one or more Subsidiaries in order to own, manage and hold one or more Properties and admit the Manager or an Affiliate of the
Manager as a member thereto;

 

(o)
To enter into and participate in joint ventures, partnerships and other organizations to deal with all or substantially all of the Properties
in any manner, upon the consent of a Majority Vote of the Members; and

 

(p)
In addition to the specific rights and powers herein granted, to engage in any activities necessary or incidental to the accomplishment
of any of the purposes and activities which the Company was formed to conduct and the Manager shall possess and may enjoy and exercise
all of the rights and powers of managers of limited liability companies as are more particularly provided by the Act, except to the extent
any of such rights may be limited or restricted by the express provisions of this Agreement

 

(q)
Manager shall give the Members reasonable notice of any management activities outside of the day-to-day management of the Company, to
the extent mutually agreed to between the Manager and the Members.

 

9.3
Limitation on Authority of Manager. The authority granted to the Manager is subject to each of following limits:

 

	 	(a)	Agreement.
    The Manager shall act in accordance with this Agreement, and shall not commit any act or omission that is in contravention of this
    Agreement, including undertaking any action that requires approval of the Members without obtaining such approval, including any
    of the actions set forth in Section 11.5. 
	 	 	 
	 	(b)	Consent.
    The Manager shall obtain the consent of a majority of the Members prior to making expenditures in excess of five hundred thousand
    dollars ($500,000.00).
	 	 	 
	 	(c)	Further
    Limits. The authority granted to the Manager under this Section 9.2 may be directed or limited by resolution adopted by
    a Super Majority Vote.

 

    	16 

     

    

 

9.4.
Term. The Manager shall hold the office of Manager and discharge the duties of the office until it is removed from the office
pursuant to this Article. During such term, the Manager shall devote reasonable time and effort to the business and affairs of the Company.
The Manager is not required to devote full time to the office. The Manager may resign upon ninety (90) days’ written notice, provided
however that if the Manager resigns without the approval of Member Digital Ally, __________________________________________________.

 

	 	(a)	Removal
    without Cause. A Manager may be removed as a Manager at will at any time, without cause, for any reason (or no reason at all)
    by a Super Majority Vote. Upon such removal, another Person shall be appointed as Manager in accordance with Section 9.1.
    
	 	 	 
	 	(b)	Removal
    for Cause. A Manager may be removed for Cause if the removal is approved by a Majority Vote. If any Member holding a Percentage
    Interest of ten percent (10%) or more objects to such removal for Cause, then the removal shall be delayed until a court of competent
    jurisdiction determines that the Manager is being removed for Cause. For the purpose of this Section, “Cause” shall mean
    (i) a breach of the Manager’s fiduciary duties; (ii) a material inability of the Manager to perform its duties as Manager;
    (iii) any act or omission by the Manager which is in material contravention of this Agreement; or (iv) gross negligence by the Manager
    in performance of his duties. In the event of removal of a Manager for Cause, another Person shall be appointed as Manager in accordance
    with Section 9.1. The Members hereby agree that any dispute over a removal for Cause shall be decided by Section 14.14 herein.
    
	 	 	 
	 	(c)
    	Discretionary
    Removal. Nobility may be removed as Manager
    by Member Digital Ally, or Member Digital Ally may further limit Nobility’s authority as Manager hereunder, each in Digital
    Ally’s sole discretion, in the event that Nobility’s Member, Christian J. Hoffmann, III, ceases to be a Member of Nobility,
    or becomes Disabled, or unable to actively perform the duties of Chief Financial Officer for Nobility.
	 	 	 
	 	(d)	Removal
    of Manager. Prior to such removal for Cause becoming effective, a Majority Vote of the Members shall first provide the Manager
    with written notice stating with specificity the nature of the cause of such desire to remove the Manager (the “Reasons
    for Removal”). The Manager shall have the opportunity to cure the Reasons for Removal outlined in such written notice within
    thirty (30) days from the Manager’s receipt of such notice. If after such thirty (30) day period, in the reasonable judgment
    of a Majority Vote of the Members, such Reasons for Removal have been cured, such written notice will be withdrawn. If, however,
    after such thirty (30) day period a Majority Vote of the Members determines that such Reasons for Removal have not been cured, then
    a determination as to whether the Manager may be removed for the Reasons for Removal outlined in such notice shall be determined
    pursuant to the “Dispute Resolution Procedures” set forth in Section 14.14; provided, however, that such Manager may
    waive application of such Dispute Resolution Procedures, accept such Majority Vote of the Members’ determination and agree
    to resign or withdraw as the Manager. If after such Dispute Resolution Procedures have been finally resolved and the arbitrator determines
    that such Manager should be removed, then such removal shall take effect forty-five (45) days after such Dispute Resolution Procedures
    have been finally concluded. Upon the removal of a Manager pursuant to Section 9.3(b), “Removal for Cause,” a substitute
    Manager may be elected pursuant to this Agreement. Except as otherwise provided in this Agreement (including, without limitation
    this Article 9), a Person who has been removed as Manager shall continue to be a Member for all other purposes of this Agreement.
    If after such Dispute Resolution Procedures have been finally resolved and the arbitrator determines that such Manager should not
    be removed, then such notice outlining the Reasons for Removal shall be withdrawn and the Manager shall continue as such. 

 

    	17 

     

    

 

 

	 	(e)	 Members
    and the Manager expressly understand that by signing this Agreement, which incorporates binding arbitration pursuant to Section 9.3,
    “Removal for Cause,” and Section 14.14 only, the Members and the Manager agree to waive court or jury trial with respect
    to this Section 9.3(d), “Removal of Manager,” and Section 14.14 only.
	 	 	 
	 	(f)	Guarantees.
    If the Manager, and/or Persons who is related to or affiliated with the Manager (“Manager’s Affiliates”),
    are guarantors on any Company loans, agreements, or obligations, to the fullest extent permitted by law, no removal of Manager, whether
    for Cause or without cause, shall be effective until and unless the Manager and/or Manager’s Affiliates are relieved of all
    such responsibilities as guarantors of the Company’s loans, agreements, and/or obligations. Upon the resignation of the Manager,
    the Company shall make all reasonable efforts to replace Manager and/or Manager’s Affiliates as guarantors of the Company’s
    loans, agreements, and/or obligations, and to the extent that Manager and/or Manager’s Affiliates cannot with reasonable effort
    be replaced as guarantors of the Company’s loans, agreements, and/or obligations, the Company shall defend, indemnify, and
    hold Manager and/or Manager’s Affiliates harmless from responsibility for, and the payment of, their guarantees of the Company’s
    loans, agreements, and/or obligations, including, at the request of the resigning Manager or Manager’s Affiliates, establishing
    bank accounts or other funding mechanisms to satisfy and offset such guarantee obligations. 
	 	 	 
	 	(g)	Vacancy.
    If the office of any Manager is vacant for a period of at least ninety (90) days, then the office of the Manager shall be abolished
    and all authority to manage the Company shall revert to the Members.

 

9.4.
Compensation of Manager . The Company shall pay the Manager a Management Fee for services rendered in managing the Company’s
business equal to twelve percent (12%) of the Net Cash from Operations, computed before deduction of the Management Fee. To the extent
that the Company cannot pay the Management Fee in any period, it will accrue and the Company will pay it out of future Net Cash from
Operations. The Company will pay the Management Fee on or before the fifteenth day (15th) of each month based upon the Net
Cash from Operations for the previous month. In addition, if the Distributions of Net Cash from Operations to the Investor Member in
a quarter equal an annualized return of fifteen percent (15%) on its Adjusted Capital Contributions, the Company will pay the Manager
a bonus of up to three percent (3%) of the Net Cash from Operations for that period, provided that after such payment, the annualized
return to Investor Member still equals at least

 

9.5
Expenses and Reimbursements. Subject to the consent of Member Digital Ally regarding expenses and reimbursements, the Company
will reimburse the Manager and its Affiliates for the actual cost of goods, materials and services of its own employees, consultants
and third parties used for or by the Company or its Subsidiaries. Such reimbursements to the Company and its Affiliates will include
the following: the formation of the Company; identifying, evaluating and negotiating the acquisition of each Property; provision of office
space or other similar facilities to the Company; payments they make to third parties on behalf of the Company and for any other amounts
they pay to the credit of a Company obligation; and services, such as operation of the business, accounting and other extraordinary services,
which would normally be performed directly for the Company by employees of the Company or independent parties, but which the Manager
and its Affiliates may provide. The Company’s costs for such services provided by the Manager and its Affiliates may be based upon
the compensation of the Persons involved plus an appropriate percentage of the overhead allocable to each Person (secretarial, utilities
and so forth), which would be converted into an hourly rate for the Persons involved, or on a project basis for the services of the individuals
where hourly billing would be inappropriate or not customary for such services. In the case of facilities, the Company’s cost will
be an amount paid for comparable facilities in the same geographic area as the facilities provided.

 

    	18 

     

    

 

9.6
Performance of Duties; Liability of Manager. The Manager shall not be liable to the Company or to any Member for any loss or damage
sustained by the Company or any Member unless the loss or damage shall have been the result of a knowing violation of law by the Manager,
fraud, deceit, reckless conduct, or intentional misconduct. In performing his or her duties, the Manager shall be entitled to rely on
information, opinions, reports, or statements, including financial statements and other financial data, of the following Persons or groups
unless the Manager has knowledge concerning the matter in question that would cause such reliance to be unwarranted: (a) one or more
officers, employees or other agents of the Company whom the Manager reasonably believes to be reliable and competent in the matters presented;
(b) any attorney, independent accountant, or other professional as to matters which the Manager reasonably believes to be within such
Person’s professional or expert competence; and (c) a committee upon which the Manager does not serve which committee the Manager
reasonably believes to be reliable and competent.

 

9.7.
Limited Liability. The Manager shall not be personally liable under any judgment of a court, or in any other manner, for any debt,
obligation, or liability of the Company, whether that liability or obligation arises in contract, tort, or otherwise, solely by reason
of being the Manager.

 

9.8.
Officers. The Manager shall have the authority to retain and appoint one or more individuals to serve as officers of the Company
with all of the duties and responsibilities ordinarily held by a Person filling such office for a corporation; provided, however, that
any such officer shall, at all times, be required serve at the pleasure of the Manager.

 

9.9.
Indemnity. The Company will defend, reimburse and indemnify and save and hold the Manager and its managers, members, employees,
consultants, agents and assigns harmless from any liability, loss or damage and any and all costs and expenses reasonably incurred by
them in connection with, or any action, suit or proceeding of whatever nature threatened or brought against them, or in which they may
be involved as parties or otherwise, by reason of any act performed or omitted to be performed by them in connection with the activities
of the Company, whether or not the Manager or other specified parties continue to be such at the time of incurring such costs and expenses,
including amounts paid or incurred by them in connection with reasonable settlements of any such claim, action, suit or proceeding, provided
such act or omission was done, in the good faith judgment of the Manager, in the best interests of the Company and did not constitute
fraud, gross negligence, or willful misconduct by such Persons.

 

ARTICLE
10

TRANSFERS
OF MEMBER INTERESTS

 

10.1.
Transfer Notice. The transferor and transferee of a Transfer shall provide written notice of the Transfer to the Company (the
“Transfer Notice”).

 

10.2.
Restrictions on Lien Transfers. No Member shall voluntarily grant any lien, security interest, or other encumbrance in or upon
its Units or Member Interest, or any portion thereof, unless such Lien Transfer is approved by a Majority Vote of the other Members;
provided, however, that no Lien Transfer shall grant the holder of the lien or encumbrance any right to vote any Units. If any Lien Transfer
results in the disposition of the whole or part of any Units or Member Interest, then (a) if such disposition is voluntarily made by
the Member, the disposition shall be subject to the restrictions set forth in Section 10.3; or (b) if such disposition is involuntary,
then the disposition will be an Unapproved Transfer for the purpose of Section 10.5.

 

    	19 

     

    

 

10.3.
Restrictions on Other Transfers. With the exception of Permitted Transfers, no Member shall cause, complete, or permit a Transfer
in whole or in part of its Units or Member Interest unless (a) the proposed Transfer is for a bona fide sale of Units for a lump sum
cash purchase price (the “Cash Purchase Price”); (b) the Transfer is approved by the Manager and a Majority Vote of
the Members other than the transferring Member; (c) the transferee is admitted as a new Member in accordance with Section 3.2
(which requires Member approval by Super Majority Vote); and (d) either the transferor or transferee pays the reasonable costs incurred
by the Company to implement the Transfer. The transferring Member shall provide written notice to the Company and all Members of the
proposed Transfer (the “Proposed Transfer Notice”). The Proposed Transfer Notice shall disclose full and complete
information concerning the proposed Transfer, including the Cash Purchase Price and all terms and conditions of the proposed transaction.
If a Transfer is approved under this Section (an “Approved Transfer”), the Transfer will be subject to the rights
of first refusal and the tag along rights described in Subsections 10.3(a), 10.3(b), and 10.3(c). Any Transfer in
violation of this Section will be an Unapproved Transfer for the purpose of Section 10.5. Except as provided in Subsection 10.2(a),
this Section shall not apply to Lien Transfers.

 

	 	(a)	Company’s
    Right of First Refusal. Each Member (“Grantor”) hereby grants the Company an option to acquire the Subject
    Units of Grantor in exchange for the Cash Purchase Price, in the event that Grantor seeks to Transfer the Subject Units and the approval
    of the Transfer is required and provided in accordance with this Section 10.3. The Company shall have thirty (30) calendar
    days after the Transfer is approved to exercise this option. If the option is not exercised within the thirty (30) day period, it
    will expire and become null and void. During the thirty (30) day period, Grantor shall not implement the Transfer. The Company shall
    not exercise this option unless the exercise is approved by a Majority Vote of the non-transferring Members. To exercise this option,
    the Company shall provide written notice thereof (the “Exercise Notice”) to the Grantor and all Members. If the
    option is exercised, Grantor shall Transfer the Subject Units to the Company, and the Company shall pay Grantor the Cash Purchase
    Price. The closing on the Transfer shall occur within ninety (90) calendar days after the Exercise Notice. For the purpose of this
    Subsection, the phrase “Subject Units” means the Units that are the subject of the proposed Transfer. 
	 	 	 
	 	(b)	Members’
    Right of First Refusal. Grantor hereby grants all other Members Entitled to Vote on the date of the Proposed Transfer Notice
    (the “Other Members”) an option to acquire the Subject Units of Grantor in exchange for the Cash Purchase Price,
    in the event that Grantor seeks to Transfer the Subject Units and the approval of the Transfer is required and provided in accordance
    with this Section 10.3. This option is subordinate to the option granted to the Company under Subsection 10.3(a), and
    shall become null and void (even if exercised) if the Company exercises its option under Subsection 10.3(a). Each Other Member
    shall have forty-five (45) calendar days after the Transfer is approved to exercise this option. If this option is not exercised
    within the forty-five (45) day period, it shall expire and become null and void. During this forty-five (45) day period, Grantor
    shall not implement the Transfer. To exercise its option, an Other Member shall provide written notice thereof (the “Exercise
    Notice”) to Grantor, the Company, and all other Members. If the option is exercised, Grantor shall Transfer the Subject
    Units to the exercising Member(s), and the exercising Members(s) shall pay Grantor the Cash Purchase Price. The closing on the Transfer
    shall occur within ninety (90) calendar days after the last Exercise Notice. If more than one Member elects to exercise this option
    (the “Electing Members”) then, unless they agree otherwise in writing, the Electing Members shall acquire a pro-rata
    share of the Subject Units in proportion to the Percentage Interests of the Electing Members. For the purpose of this Subsection,
    the phrase “Subject Units” means the Units that are the subject of the proposed Transfer.

 

    	20 

     

    

 

	 	(c)	Tag
    Along Rights. If a Transfer of a Member Interest, or any portion thereof, is approved under Section 10.3, and provided
    that the options granted in Subsection 10.3(a) and Subsection 10.3(b) are not exercised, the transferring Member shall
    give each non-transferring Member (who is a Member Entitled to Vote on the date of the Proposed Transfer Notice) the option to have
    a portion of the non-transferring Member’s Units substituted for the Units that are proposed to be Transferred by the transferring
    Member. The number of Units which may be substituted by the non-transferring Member shall be determined by multiplying the amount
    of the total Units which are to be transferred by a fraction, the numerator of which is the amount of Units owned by the non-transferring
    Member and the denominator of which is the amount of all outstanding Units of the Company. The non-transferring Member must exercise
    its option by providing written notice thereof (the “Exercise Notice”) to all Members within sixty (60) calendar
    days after the Transfer is approved. During this sixty (60) day period, Grantor shall not implement the Transfer. If the Exercise
    Notice is not provided within the sixty (60) day period, the option provided under this Subsection shall expire and become null and
    void. If the option is exercised, the transferring Member and the non-transferring Member shall reasonably cooperate to implement
    the Transfer. 

 

10.4.
Permitted Transfers. Subject to the terms and conditions stated in this Section, the following Transfers (each, a “Permitted
Transfer”) shall not be subject to the restrictions upon Transfer stated in Section 10.3 or the rights of first refusal
and tag along rights stated in Section 10.3.

 

	 	(a)	Transfers
    Pursuant to this Agreement. A Transfer of Units resulting from the proper exercise of a right to Transfer provided by this Agreement
    shall be a Permitted Transfer, including Transfers under Section 3.3, Subsection 10.3(a), Subsection 10.3(b),
    Subsection 10.3(c), and Section 10.5. 
	 	 	 
	 	(b)	Super
    Majority Vote. Subject to the conditions stated in this Subsection, a proposed Transfer of Units approved expressly as a Permitted
    Transfer by a Super Majority Vote (which vote includes the vote of the proposed transferor to the extent the Units proposed to be
    Transferred are Voting Units) shall be a Permitted Transfer. A Transfer pursuant to this Subsection is prohibited and shall be of
    no force and effect unless and until the transferee (or the transferee’s authorized representative) executes a binding instrument
    in form and substance acceptable to the Company agreeing (i) to be bound by all of the terms of this Agreement, including all restrictions
    set forth herein, and (ii) to pay the reasonable costs incurred by the Company in implementing the Transfer. 
	 	 	 
	 	(c)	Transfers
    upon Entity Event. Subject to the prohibition in Section 11.3(c), if the Member is a corporation or limited liability company,
    such Member may Transfer all or any part of its Member Interest in the Company to another entity that is such Member’s successor
    by virtue of the Member’s merger, consolidation, change in control, corporate reorganization,
    or similar transaction (“Successor”), provided, however, that any such permitted assign under this Subsection shall assume
    all obligations of the assigning member under this Agreement. A Transfer pursuant to this Subsection shall be a Permitted
    Transfer and the transferee shall be admitted as a Member of the Company without the approval or procedure required by Section
    3.2. If the Units Transferred to such Affiliate are Voting Units at the time of the Transfer, such Units shall remain Voting
    Units. If the Units Transferred to such Affiliate are Non-Voting Units at the time of the Transfer, such Units shall remain Non-Voting
    Units. A Transfer pursuant to this Subsection is nevertheless prohibited and shall be of no force and effect unless and until the
    Successor of the Member executes a binding instrument in form and substance acceptable to the Company agreeing (i) to be bound by
    all terms of this Agreement, including all restrictions set forth herein, and (ii) to pay the reasonable costs incurred by the Company
    in implementing the Transfer. 
	 	 	 

    	21 

     

    

 

 

	 	(d)
	Transfers
to an Affiliate of a Member. If the Member is a corporation or limited liability company, such Member may Transfer all or any part
of its Member Interest in the Company to an Affiliate of the Member, and such Transfer shall be a Permitted Transfer and the transferee
shall be admitted as a Member of the Company without the approval or procedure required by Section 3.2. If the Units Transferred
to such Affiliate are Voting Units at the time of the Transfer, such Units shall remain Voting Units. If the Units Transferred to such
Affiliate are Non-Voting Units at the time of the Transfer, such Units shall remain Non-Voting Units. A Transfer pursuant to this Subsection
is nevertheless prohibited and shall be of no force and effect unless and until the Affiliate of the Member executes a binding instrument
in form and substance acceptable to the Company agreeing (i) to be bound by all terms of this Agreement, including all restrictions set
forth herein, and (ii) to pay the reasonable costs incurred by the Company in implementing the Transfer.

 

10.5.
Company’s Right to Redeem. Subject to the provisions of this Section, the Company shall have the right (but not the obligation)
to redeem all Units that are the subject of an Unapproved Transfer. The Company may exercise this right at any time within three years
after the later of the date when the Company received a Transfer Notice for the Transfer or the date when the Company learns of the Unapproved
Transfer. To exercise this right, the Company shall provide written notice thereof (the “Exercise Notice”) to the
transferring Member and all other Members, and shall make a reasonable effort to provide reasonable notice to the transferee which, depending
upon the circumstances, may be provided by regular mail, hand delivery, publication, or other available means. The Company shall not
exercise this right until the exercise is approved by a Majority Vote of the non-transferring Members. The transferor shall have thirty
(30) calendar days after the Exercise Notice is sent to cure the Unapproved Transfer either by reversing the Transfer, or by obtaining
the approval of the Transfer by a Majority Vote of the Members other than the transferring Member; and approval of the admission of the
Transferee as Member in accordance with Section 3.2. If the Unapproved Transfer is not cured within the thirty (30) day period,
then the Company shall have the right to redeem the Units from the transferor and/or transferee in exchange for a payment to be made
by Company in the amount stated in Subsection 10.5(a) subject to the payment terms stated in Subsection 10.5(b).

 

	 	(a)	Redemption
    Price. The price payable by the Company for the redemption of the transferred Units (the “Redemption Price”)
    will be an amount equal to the lower of (i) one-half of the amount of the Capital Account of the transferring Member on the
    date of the Exercise Notice; or (ii) one-half of the fair market value of the Units redeemed by the Company as determined by an appraiser
    to be selected by the Company. In its sole discretion, the Company may elect to avoid the calculation in Subsection (ii) hereof and
    pay the amount under Subsection (i) hereof. 
	 	 	 
	 	(b)	Redemption
    Terms. The Company will pay the Redemption Price, together with interest thereon at the Applicable Federal Rate in sixty (60)
    equal monthly installments of principal and interest. The Company may prepay the Redemption Price and accrued interest, in whole
    or in part, without penalty. The payee shall provide the Company with thirty (30) days’ written notice and opportunity to cure
    with respect to any failure of the Company to make any payment. The payee shall have no right to accelerate the Redemption Price
    upon default in payment. The Closing Date on the redemption shall be the date that is ninety (90) calendar days after the Exercise
    Notice. The Company may tender the Redemption Price through an interpleader action in the event of any dispute among the transferor
    and transferee concerning the proper payee. The costs of such action shall be paid by transferor or transferee and may be deducted
    by the Company from the Redemption Price. 

 

    	22 

     

    

 

10.6.
Effect of Transfer. Unless the Transfer is an approved Lien Transfer, an Approved Transfer or a Permitted Transfer, the transferee
of a Transfer shall acquire no rights under this Agreement, including no right to receive distributions or Tax Allocations, and no right
to vote on or to approve any matter. If Units are acquired by a transferee as a result of an Approved Transfer or Permitted Transfer,
then the Units shall be subject to and governed by the terms and conditions of this Agreement, including all restrictions upon Transfer,
and the transferee may only Transfer the acquired Units in accordance with this Agreement.

 

	 	(a)	Non-Member
    Unapproved Transfers. If, notwithstanding this Agreement, a court of competent jurisdiction (or an arbitrator with jurisdiction)
    determines that Units have been transferred to a Person who has not been admitted as a Member in accordance with this Agreement,
    then (i) the transferee shall hold the status of an Assignee under the Act with respect to the transferred Units; (ii) the Units
    acquired by the transferee shall be subject to all restrictions upon Transfer set forth in this Agreement; and (iii) the Transfer
    shall be an Unapproved Transfer for the purpose of Section 10.5. 
	 	 	 
	 	(b)	Involuntary
    Transfers. If a court of competent jurisdiction (or an arbitrator with jurisdiction) determines that the restrictions upon Transfer
    set forth in this Agreement are not enforceable with respect to an involuntary Transfer, then (i) the transferee of the involuntary
    Transfer shall hold the status of an Assignee under the Act with respect to the transferred Units; (ii) the Units acquired by the
    transferee shall be subject to all restrictions upon Transfer set forth in this Agreement; and (iii) the Transfer shall be an Unapproved
    Transfer for the purpose of Section 10.5. 

 

10.7.
Authorization to Implement - Power of Attorney. The parties hereby grant the Company the authority and an irrevocable power of
attorney, which shall be coupled with an interest, to implement all changes in Units and Member Interests that result from Transfers,
including the Transfer arising from exercise of the rights described in this Article.

 

ARTICLE
11

COVENANTS
AND PROHIBITED ACTIONS

 

11.1.
Other Business Ventures or Opportunities and Certain Transactions. The Manager shall devote to the Company such time as the Manager,
in its sole and absolute discretion, deems necessary to the proper conduct of the Company’s business and purposes. The Manager
and its Affiliates have an existing medical billing and revenue cycle management business and provide other services to the healthcare
industry, which they will continue to operate during the term of the Company. The Manager and its Affiliates shall at all times be free
to continue to engage generally in such activities and businesses, including but not limited to, the purchase and operation of RCM Companies,
provision of the foregoing services, even though such other activities and may compete or tend to compete with the Company, subject to
Section 11.4 below. Further, except as provided in Section 11.4(b) (Member Digital Ally’s Right of First Refusal), the Members,
Managers and their respective Affiliates shall not be obligated to present any investment or business opportunity or any other ventures
or personal or real properties, or opportunities in connection therewith that the Manager or its Affiliates may discover to the Company
or any Member, even if such opportunity is of a nature which, if presented to the Company or any Member, could or would be of interest
to the Company or the Member. Neither the Company nor the its Members shall have any right by virtue of this Agreement in or to such
other ventures, partnerships or entities or to the income or profits derived therefrom.

 

    	23 

     

    

 

 

11.2
Transactions with the Manager and Its Affiliates. The Company may purchase certain RCM Companies and/or RCM portfolios
from the Manager and/or its Affiliates after formation of the Company. The Manager will provide financials and information regarding
the proposed transactions for the approval of the Member Digital Ally prior to closing such transactions.

 

11.3.
Contracts with Members or Others. Except as otherwise provided in this Agreement, the Company may enter into agreements with one
or more Members or their Affiliates (including agreements to provide leasing, management, legal, accounting, financial, brokerage, development,
computer, or other services to the Company) if the agreement either (i) is on terms that are not less favorable than if the agreement
were not with the Member or the Member’s Affiliate; or (ii) is on such terms that are fair and reasonable under all the circumstances;
or (iii) is approved by the Manager; or (iv) is approved by a Majority Vote of disinterested Members. The validity of any such transaction
shall not be affected by reason of the relationship between such person and the Company or any of its Members or their Affiliates. The
Members or Affiliates that are parties to such agreements shall have the same right to enforce such agreements and to assert remedies
against the Company as a Person who is not a Member.

 

11.4.
Trade Secrets, Confidential Information, Competition. Each Member hereby agrees and, by accepting the position as Manager, Manager
hereby agrees, as follows:

 

	 	(a)	Trade
    Secrets, Confidential Information. Manager, for itself and its manager, members, officers, reps, agents, and the affiliates of
    each, agrees , and each Member, for itself and its manager, members, officers, reps, agents, and the affiliates of each, agrees,
    that he has received and may in the future receive information concerning the development and operation of the Company that is a
    trade secret of the Company. In addition, Manager agrees and each Member agrees that he has received and may in the future receive
    confidential information of the Company concerning the development and operation of the Company. Such confidential information has
    and will include information concerning product development, market strategies, computer software designs, existing and prospective
    customers, existing and prospective suppliers, existing and prospective competitors, existing and prospective investors, applicable
    technologies, exit strategies, revenues, profits, and past and future financial matters. Manager and each Member covenants that he
    (i) will maintain the Company’s trade secrets and confidential information in strict confidence; (ii) will disclose such trade
    secrets and confidential information only to employees and agents under his control who have a need to know such information; and
    (iii) will not use such trades secrets and confidential information in any way to the detriment of the Company. For the purpose of
    this Section, trade secrets and confidential information shall not include information in the public domain through no fault of the
    Member or the Manager, information already known by the Member or Manager prior to the disclosure, information that is a trade secret
    of the Manager or Member, or information that is required to be disclosed by law. 
	 	 	 
	 	(b)	Digital
    Ally’s Right of First Refusal for Company. During the term of this Agreement and subject to each of the subsections below,
    Member Nobility hereby grants to the Company and Member Digital Ally a right of first refusal as follows: (i) Nobility, collectively
    with its directors, officers, managers, agents and employees, who become aware of a corporate opportunity or opportunities primarily
    involving the acquisition, ownership, and operation of RCM Companies (“Opportunity”), will not enter into any
    agreement to purchase or invest in such Opportunity, or present such Opportunity to, or assist, any other Person to purchase or invest
    in such Opportunity (the “Right of First Refusal of Opportunities”), until Member Digital Ally notifies Nobility,
    within the time frame and manner specified below, whether or not Digital Ally desires to pursue such Opportunity for and on behalf
    of the Company; (ii) each Right of First Refusal of Opportunities granted by Nobility to Digital Ally hereunder shall expire ten
    (10) days from the date of the written notice sent by Nobility to Digital Ally of each Opportunity (“Notice of Opportunity
    Period”), and (iii) if Digital Ally exercises its Right of First Refusal of Opportunities, and if the Opportunity is not
    subject to a Letter of Intent within ninety (90) days following expiration of the Notice of Opportunity Period, the right of first
    refusal of such Opportunity shall expire and Nobility may present such Opportunity to other Persons, or accept such Opportunity on
    its own behalf. 

 

    	24 

     

    

 

 

	 	(c)	Entity
    Owners or Entity Managers. If a Member or Manager is an entity, then the Member or Manager will not cause or permit any of the
    following events (the “Entity Events”) to occur unless the Entity Event is approved by a Super Majority Vote:
    (i) the acquisition of an ownership interest in the entity by a competitor of the Company, or (ii) the acquisition of an ownership
    interest in the entity by any Person if such Person is in a position to use the confidential information or trade secrets of the
    Company to the direct detriment of the Company.
	 	 	 
	 	(d)	Remedies.
    Each Member and Manager agrees that the covenants made in this Section are reasonable given the circumstances. Manager agrees and
    understands that the Company has relied upon these covenants in accepting him as a Manager. Each Member agrees and understands that
    the Company has relied upon these covenants in admitting him as a Member. Each Member and Manager agrees that the Company may exercise
    all available rights (at law or in equity) for breach of the covenants provided in this Section. Each Member and Manager hereby waives
    all requirements that the Company post a bond in support of any equitable remedy. Furthermore, in addition to all remedies available
    at law or in equity, Manager agrees that a breach of the covenants stated in this Section shall constitute Cause for removal under
    Section 8.3, and each Member understands that a breach of the covenants in this Section will constitute a Conversion Event
    under Section 5.3.

 

11.4.
Business Property. Title to Business Property shall be held in the name of the Company. No Member shall have any ownership interest
in or rights to Business Property except indirectly by virtue of its ownership of a Member Interest. Business Property shall not be commingled
with the property of Manager or any Member, and shall not be used for any purpose other than a Company purpose. Business Property is
not and will not be suitable for partition. Accordingly, each Member irrevocably waives any and all rights it may have to maintain any
action for partition of Business Property.

 

11.5.
Actions Requiring a Super Majority Vote. Unless a different vote is required or permitted by this Agreement with respect to any
of the matters listed below, no action shall be taken by or on behalf of the Company (by a Member, Manager, officer of the Company, or
otherwise) on any the following matters (which, when accompanied by a reference to a Section of this Agreement, are qualified in their
entirety by reference to that Section), unless the action or matter is approved by a Super Majority Vote:

 

	 	(a)	New
    Member. A Super Majority Vote is required for the admission of a new Member, as provided in Section 3.2.
	 	 	 
	 	(b)	Withdrawal
    of a Member. A Super Majority Vote is required for a Member to withdraw as such from the Company, as provided in Section 3.3.
    

 

    	25 

     

    

 

	 	(c)	New
    Units. A Super Majority Vote is required for the authorization of additional Units beyond the number of Authorized Units currently
    in effect, as provided in Subsection 4.2(a).
	 	 	 
	 	(d)	Conversion
    of Non-Voting Units. A Super Majority Vote is required to convert Non-Voting Units to Voting Units, as provided in Section
    5.4.
	 	 	 
	 	(e)	Non-Dissolution
    Distributions. A Super Majority Vote is required for Member authorized non-dissolution distributions, as provided in Section
    8.3.
	 	 	 
	 	(f)	Directing
    or Limiting Manager Authority. A Super Majority Vote is required to direct or limit the authority of the Managers, as provided
    in Subsection 9.2(c).
	 	 	 
	 	(g)	Manager
    Removal Without Cause. A Super Majority Vote is required for removing a Manager without Cause, as provided in Subsection 9.3(c).
    
	 	 	 
	 	(h)	Certain
    Permitted Transfers. A Super Majority Vote is required to authorize certain Transfers of Units as Permitted Transfers, as provided
    in Subsection 10.4(b).
	 	 	 
	 	(i)	Approval
    of Entity Events. A Super Majority Vote is required to approve Entity Events, as provided in Subsection 11.3(c).
	 	 	 
	 	(j)	Dissolution.
    A Super Majority Vote is required to voluntarily dissolve the Company, as provided in Subsection 12.1(b).
	 	 	 
	 	(k)
    	Loans.
    A Super Majority Vote is required to authorize any borrowing or loan by the Company.
	 	 	 
	 	(l)	Agreement
    Amendments. A Super Majority Vote is required for certain amendments to this Agreement, as provided in Section 14.4. 
	 	 	 
	 	(m)	Certain
    Extraordinary Transactions. A Super Majority Vote shall be required for any of the following: (i) the undertaking of any business
    other than the Purpose and Character of Business set forth in Section 2.3; (ii) a change in the Company’s election to be classified
    as a partnership for income tax purposes; (iii) a change in the Company’s status from one in which the management of the Company
    is vested in Managers to one in which the management resides in Members; (iv) the possession of Business Property for any purpose
    other than the business of the Company; (v) a sale or other transfer of all or substantially all of the Company’s assets; and
    (vi) a merger or consolidation of the Company with another Person except for an Affiliate of the Company, for which approval of the
    Manager and the Members by Majority Vote shall be required. 
	 	 	 
	 	(n)	Other. A Super Majority Vote is required for any other action that requires approval by a Super Majority Vote under this Agreement.

                                                                               

    	26 

     

    

  

ARTICLE
12

DISSOLUTION

 

12.1. Dissolution
Events. No act, thing, occurrence, event, circumstance, or condition shall cause or result in the dissolution of the Company, except
that the Company shall dissolve upon the occurrence of any of the following events (the “Dissolution Events”):

 

		(a)	The
                                            entry of a decree of judicial dissolution pursuant to the Act;

 

		(b)	The approval of the dissolution by a Super Majority Vote;

                                                                                 

		(c)	The sale or other disposition of all or substantially all of the assets of the Company, and the receipt and distribution of all the proceeds therefrom; or

                                                                                 

		(d)	The
                                            merger or consolidation of the Company with or into another entity under circumstances where
                                            the Company is not the surviving entity.

 

12.2. Wind
Up. Upon the occurrence of a Dissolution Event, the Manager or a Person appointed by a Majority Vote in lieu of the Manager (the
“Liquidator”) shall wind up the affairs of the Company in accordance with the Act, and shall proceed with the liquidation
and termination of the Company as promptly as possible, but in an orderly and business-like manner so as not to involve undue sacrifice.
The Liquidator shall execute a Certificate of Dissolution in such form, if any, as shall be prescribed by the Kansas Secretary of State,
and shall also cause to be filed, in the office of and on a form prescribed by the Kansas Secretary of State, such other documents as
may be required under the Act upon the completion of the dissolution and winding up of the affairs of the Company.

 

12.3. Order
of Payment of Liabilities and Dissolution Distributions. The proceeds received upon the liquidation of the assets of the Company
(the “Dissolution Proceeds”) after payment of the expenses of liquidation shall be applied and distributed as follows
and in the following order of priority:

 

		(a)	First, the Dissolution Proceeds shall be used for the pro-rata payment of all known debts and liabilities of the Company, including the payment of properly approved debts, liabilities, and Member Loans owed to Members as creditors of the Company.

                                                                                 

		(b)	Second, the remaining Dissolution Proceeds, if any, shall be used for the establishment of a tax reserve, and may be used for the establishment of any other reserve that the Manager may deem reasonably necessary for any contingent, conditional or unasserted claims or obligations of the Company. Such reserve may be paid over by the Company to an escrow agent to be held for disbursement in payment of any of the aforementioned liabilities and, at the expiration of such period as shall be deemed advisable by the Manager, for distribution of the balance in the manner provided in this Article.

                                                                                 

		(c)	Finally,
                                            the balance, if any, shall be distributed to the Members in accordance with their positive
                                            Capital Account balances determined as follows: first, all Properties (other than cash or
                                            cash equivalents) shall be deemed to be sold for cash at their fair market value and the
                                            proceeds therefrom shall be deemed to be distributed to the Members in the manner provided
                                            in Section 8.1 and Section 8.2 and second, the Profits and Losses from such
                                            deemed sale shall be allocated to the Members pursuant to this Agreement.”

 

12.4. Limitation
to Dissolution Distributions. Upon dissolution, each Member shall be only be entitled to look to the assets of the Company for any
distributions upon liquidation or dissolution, and shall have no recourse against any other Member or Manager for the distributions or
return of capital.

 

    	27 

     

    

 

12.5. No
Action for Dissolution. Except as expressly permitted in this Agreement, a Member shall not take any voluntary action that causes
the dissolution of the Company. Furthermore, the Members acknowledge that irreparable damage would be done to the goodwill reputation
of the Company if any Member should bring an action in court to dissolve the Company under circumstances where dissolution is not required
or expressly permitted herein. The Members acknowledge that this Agreement provides for fair treatment of all parties, a management system
that is generally designed to avoid deadlock, and equitable payment in the event of dissolution or liquidation. Accordingly, except where
the Members have failed to liquidate the Company as required by this Article 12, each Member hereby waives and renounces its right
to initiate legal action to seek a decree of judicial dissolution of the Company on the grounds that the Company is suffering or is threatened
with irreparable injury because the Members or Managers are so deadlocked respecting the management of the affairs of the Company that
the requisite vote for action cannot be obtained.

 

ARTICLE
13

CERTAIN
ACKNOWLEDGMENTS AND DISCLOSURES

 

13.1.       Member
Acknowledgments and Representations. Each Member acknowledges, understands and represents to the Company the following:

 

		(a)	The Member has acquired his Units and the Member Interest represented thereby for his own investment and not with a view toward the subdivision, resale, distribution or fractionalization thereof. The Member has no contract, undertaking, arrangement or obligation with or to any Person to sell, transfer or otherwise dispose of the Units or the Member Interest represented thereby or any portion thereof and has no present intention to enter into any such contract, undertaking, agreement or arrangement.

                                                                                 

		(b)	The
                                            Member Interest and Units held by the Member have not been registered and may never be registered
                                            under any federal or state securities laws. The Member may be required by applicable securities
                                            laws to hold his Member Interest and Units indefinitely unless they are subsequently registered
                                            under applicable securities laws or are transferred pursuant to an exemption from such registration.
                                            In addition to applicable securities laws, the Member Interest and Units are subject to restrictions
                                            upon transfer stated in this Agreement.

 

13.2.       Tax
Consequences. Each Member hereby acknowledges (i) that the Company has made no warranties or representations to it with respect to
the income tax consequences to such Member of the execution and performance of this Agreement or of the other transactions contemplated
herein; (ii) that such Member is in no manner relying on the Company or its representatives for an assessment of such tax consequences;
(iii) that such Member has been strongly advised and encouraged to seek independent legal, tax and other professional counsel with regard
to the legal, tax, and other financial consequences to it of this Agreement and the transactions contemplated herein; and (iv) that such
Member has had reasonable and adequate opportunity to seek such independent legal, tax and other professional counsel. Without limiting
the generality of the foregoing, each Member specifically understands that it is such Member’s sole responsibility (and not the
responsibility of the Company) to determine the tax consequences of this Agreement and transactions contemplated herein.

 

13.3. Reasonable
Terms. Each Member acknowledges and agrees that the terms and provisions of this Agreement are reasonable under the circumstances,
which circumstances include the harm to the Company and the Members if such terms and provisions are not enforced.

 

ARTICLE
14

MISCELLANEOUS
MATTERS

 

14.1. Further
Assurances. The parties shall execute such other documents as may be reasonably required to implement the transactions stated herein.

 

    	28 

     

    

 

14.2. Waiver
of Default. No consent or waiver with respect to any breach or default of any provision of this Agreement shall constitute a waiver
of, agreement to, or acquiescence in any other breach or default by any party of the same provision or any other provision of this Agreement.
Failure or delay on the part of the Company or a Member to act or complain of any act shall not be deemed or constitute a waiver by the
Company or the Member of any rights hereunder.

 

14.3. Discretion
in Providing Consent. If a Member has the right herein to consent to or approve a transaction or matter, such consent or approval
may be withheld in the sole discretion of such Member for any reason or no reason at all, without any covenants of good faith or fair
dealing.

 

14.4. Amendments
to Agreement. This Agreement shall not be amended unless the amendment is in writing and is approved in accordance with this Section.
Except as provided in the Subsections 14.4(a) through 14.4(c), this Agreement may be amended by a written agreement that
is approved by a Majority Vote.

 

		(a)	Exhibits. The Manager is hereby granted administrative authority to amend the Member Roster Exhibit A, from time to time, to correct clerical errors or to reflect authorized changes concerning Members. The Manager is hereby granted administrative authority to amend the Member Units Exhibit B from time to time, to correct clerical errors or to reflect authorized changes concerning Units, Percentage Interests, voting rights, and Approved Transfers of Record. The Manager is hereby granted administrative authority to amend the Tax Compliance Exhibit C as and to the extent expressly permitted by the terms of said Exhibit. The Manager is hereby granted administrative authority to amend Member Capital Exhibit D to correct clerical errors or to reflect the Capital Contributions made by the Members to the Company in accordance with this Agreement.

                                                                                 

		(b)	Specific Agreement Provisions. Any provision of this Agreement that requires a vote or approval of the Members Entitled to Vote (or a particular group of Members Entitled to Vote) by a vote that is different than a Majority Vote may only be amended by the required Member vote as set forth in such provision. For example, if a particular provision of this Agreement calls for a Super Majority Vote, that provision can only be amended by a Super Majority Vote.

                                                                                 

		(c)	Discriminatory
                                            Amendments. A Discriminatory Amendment shall require the approval of all Members Entitled
                                            to Vote and the Impacted Member. A “Discriminatory Amendment” is an amendment
                                            to this Agreement (i) that is made in bad faith to materially discriminate against a Member
                                            (the “Impacted Member”) relative to similarly situated Members with respect
                                            to the Impacted Member’s then existing rights to Tax Allocations and to distributions,
                                            and (ii) that adversely and materially impacts the rights or obligation of the Impacted Member
                                            relative to similarly situated Members with respect to the Impacted Member’s then existing
                                            rights to Tax Allocations and distributions. For clarity, it is understood that this Subsection
                                            is intended to apply only in very limited circumstances when an amendment targets the Impacted
                                            Member in bad faith and attempts to adversely and materially change the then existing rights
                                            of that Member with respect Tax Allocations and/or distributions relative to similarly situated
                                            Members. This Subsection 14.4(b) shall not be amended unless the amendment is approved
                                            by all Members Entitled to Vote.

 

    	29 

     

    

 

14.5. Notices.
All notices required or permitted under this Agreement shall be given in writing by (i) personal delivery, or (ii) confirmed facsimile
transmission, or (iii) commercial overnight delivery, or (iv) certified or registered United States mail, postage prepaid, and shall
be deemed to have been given upon receipt if personally delivered or sent to a party by facsimile transmission, receipt confirmed, or
by commercial overnight delivery, and by the third day following deposit in the mail if given by certified or registered mail, postage
prepaid. Notices to the Company shall be addressed to Nobility Healthcare, LLC, c/o Digital Ally, Inc., 15612 College Blvd., Lenexa,
KS 66219 and to Nobility, LLC, 7465 East Osborn Road, Scottsdale, AZ 85251. Notices to a particular Member shall be to the address of
such Member as set forth on Member Roster Exhibit A. Each such Person may change its notice address by written notice to all parties
to this Agreement (other than the notifying party) by notice in accordance with the terms of this Section.

 

14.6. No
Third Party Rights. This Agreement is entered into among the Members for the exclusive benefit of the Company and its Members. This
Agreement is not intended for the benefit of any creditor of the Company or any other Person. No creditor or third party shall be entitled
to become a Member of the Company or to hold any rights under this Agreement. There are no third party beneficiaries to this Agreement.

 

14.7. Severability.
If any provision of this Agreement is held to be illegal or unenforceable to any extent, the legality and enforceability of the remainder
of this Agreement shall not be affected thereby, shall remain in full force and effect, and shall be enforced to the greatest extent
permitted by law.

 

14.8. Survival.
All provisions of this Agreement relating to limitation of liability, indemnification, any other provisions of this Agreement which by
their terms are intended to survive a termination or expiration of this Agreement and any other provisions hereof affecting the interpretation
of any provision of this Agreement that remains in effect shall survive the termination or expiration of this Agreement.

 

14.9. Binding
Agreement. The provisions of this Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective
heirs, personal representatives, permitted successors and permitted assigns.

 

14.10. Signatures.
This Agreement may be executed in several counterparts, all of which together shall constitute one agreement binding on all parties hereto,
notwithstanding that all the parties have not signed the same counterpart. A signature provided by facsimile transmission shall constitute
a valid signature for the purpose of this Agreement.

 

14.11. Exhibits.
The Exhibits to this Agreement are Member Roster Exhibit A; Member Units Exhibit B; Tax Compliance Exhibit C; and
Member Capital Exhibit D. All such Exhibits are incorporated by reference herein and are a part of this Agreement.

 

14.12. No
Right To Employment. This Agreement shall not confer upon any Member, Manager, or any Affiliate thereof, any right
to employment by the Company or continued employment as an employee of the Company. Nor shall this Agreement limit the right of the Company
to terminate the employment of any Member, Manager, or officer of the Company as an employee of the Company with or without cause, at
any time.

 

14.13. Governing Law. This Agreement shall be construed according to and governed by the laws
of the State of Arizona without regard to its conflicts of laws principles.

 

    	30 

     

    

 

14.14
Dispute Resolution; Arbitration.

 

		(a)	Dispute Resolution. If any controversy or claim, whether based on contract, tort, statute, or other legal or equitable theory (including any claim of fraud, misrepresentation, or fraudulent inducement), shall arise out of this Agreement, (a “Dispute”), the disputing Party will provide written notice to the other Party of the Dispute including details of such Dispute. The Parties will each designate one or more representatives to meet and use good faith efforts to attempt to resolve the Dispute before taking any other action. If the representatives are unable to resolve the Dispute within 30 days after the date of written notice of the Dispute from one Party to the other, then the Parties will escalate the dispute to the vice president level on each side and agree to continue to use good faith efforts to attempt to resolve the Dispute. If, despite those good-faith efforts, the Parties are unable to resolve the dispute within 60 days after the date of the written notice of Dispute, then either Party may submit the matter to arbitration as set forth in Subsection 14.14(b).

                                                                                 

		(b)	Arbitration. Any dispute arising out of or relating to this Agreement that is not resolved pursuant to the negotiation process in Section 14.14(a) will be resolved by binding arbitration administered by the American Arbitration Association (“AAA”) pursuant to the AAA’s Commercial Arbitration Rules then in effect, to the extent not otherwise inconsistent with this Agreement. Jurisdiction and venue in such arbitration shall be as follows: (i) if the claim is brought by Member Digital Ally, arbitration shall be conducted in Phoenix, Arizona, and (ii) if the claim is brought by Member Nobility, arbitration shall be conducted in Kansas City, Missouri, and the parties hereby irrevocably consent to this jurisdiction and venue provision as exclusive. The arbitration will be held before a single arbitrator mutually agreed to by the parties who is knowledgeable about the laws relating to limited liability company disputes and commercial transactions; provided, however, that if the parties cannot agree to an arbitrator, the arbitrator will be appointed in accordance with AAA rules. Other than as provided in Subsection 14.14(c), the arbitrator has no other power, however, to order discovery or depositions. The arbitrator’s decision and award are final and binding and may be entered in any court having jurisdiction. The parties agree that the arbitrator will only have the power and authority to make awards and issue orders as expressly permitted in this Agreement and will not, in any event, make any award that provides for indirect, incidental, special, exemplary consequential, punitive damages, or lost revenue or profits (regardless of the theory for recovery). Each party will bear its own attorneys’ fees associated with arbitration, and other costs and expenses will be borne as provided by the rules of the AAA. Neither a party, witness, nor the arbitrator may disclose the facts of the underlying dispute or the contents or results of any negotiation, mediation, or arbitration without the prior unanimous written consent of the parties, except as necessary (and then only to the extent required) to enforce or challenge a settlement agreement or arbitration award or to comply with legal, financial, or tax reporting rules, regulations, and requirements.

                                                                                 

		(c)	To
                                            the maximum extent possible, unless otherwise agreed to by the parties, the following terms
                                            shall apply to an arbitration hereunder: during the thirty (30) day period following appointment
                                            of the arbitrator, either party may serve on the other a request for limited numbers of documents
                                            directly related to the dispute. Such documents will be produced within seven (7) days of
                                            the request. Following the thirty (30) day period of document production, there will be a
                                            forty-five (45) day period during which limited depositions will be permissible. Neither
                                            party will take more than five (5) depositions, and no deposition will exceed three (3) hours
                                            of direct testimony. Disputes as to discovery or prehearing matters of a procedural nature
                                            will be promptly submitted to the arbitrator pursuant to telephone conference call or otherwise.
                                            The arbitrator will make every effort to render a ruling on such interim matters at the time
                                            of the hearing (or conference call) or within five (5) business days thereafter. Following
                                            the period of depositions, the arbitration hearing will promptly commence. The arbitrator
                                            will make every effort to commence the hearing within thirty (30) days of the conclusion
                                            of the deposition period and, in addition, will make every effort to conduct the hearing
                                            on consecutive business days to conclusion. A decision will be rendered, at the latest, within
                                            six (6) months of the date of arbitration and within thirty (30) days of the close of the
                                            arbitration hearing.

                                            

    	31 

     

    

 

14.15 Representation.
The parties hereby acknowledge that (a) Christian J. Hoffmann, III, General Counsel of the Manager (“Hoffmann”), has represented
the Nobility in connection with the preparation of this Agreement and all other agreements or documents contemplated herein; (b) each
of the Members has been advised to seek independent counsel in connection with such matters; (c) Hoffmann represents that Nobility and
its Affiliates and Digital Ally and its Affiliates in connection with various other matters; and (d) Hoffmann does not represent Member
Digital Ally (directly or indirectly) in the transactions contemplated by this Agreement. In the event of the payment of any of fees
by the Company, directly or indirectly, or by the Manager to Hoffmann in connection with this Agreement and transactions contemplated
by it, the same shall not alter or amend any of the relationships contemplated in this Subsection 14.15.

 

14.16. Entire
Agreement. This Agreement constitutes the entire agreement of the Members with respect to the organization and operation of the Company,
and shall supersede any prior or contemporaneous agreements, understandings, representations, negotiations, or communications between
the Members with respect to the organization and operation of the Company. Except as referenced herein, there are no other agreements
or understandings between the Members concerning the organization and operation of the Company. In executing this Agreement, the Members
are not relying upon any representation of the Company or any other Member other than representations set forth in this Agreement. The
Members agree that the following instruments will survive the execution of this Agreement: (a) any subscription agreement executed by
any existing or new Member; and (b) any duly authorized instruments executed by a new Member pursuant to Article 3 or Article
4.

 

INTENDING
TO BE LEGALLY BOUND, the Company and the Members have caused this Agreement to be duly executed as the operating agreement of the Company,
effective as of the Effective Date.

 

Signature
pages to follow

 

    	32 

     

    

 

	COMPANY:	NOBILITY
    HEALTHCARE, LLC
	 	 	 
	 	By:	
	 	Name:	 
	 	Title:	Manager
    of Managing Member
	 	 	 
	MEMBERS:	
	 	 	 
	 	By:	
	 	Name:	 
	 	Title:	 
	 	 	 
	 	DIGITAL
    ALLY HEALTHCARE, INC.
	 	 	 
	 	By:	
	 	Name:	 
	 	Title:	 
	MANAGER:	 	 

 

The
undersigned hereby accepts the office of Manager of Nobility Healthcare, LLC and agrees to be bound by the terms of the Operating Agreement
of Nobility Healthcare, LLC in its capacity as Manager.

 

	 	
	 	 	 
	 	By:	
	 	Name:	 
	 	Title:	 
	 	Date:	 

 

    	33 

     

    

 

MEMBER
ROSTER EXHIBIT A

 

This
Member Roster Exhibit A is a part of the Operating Agreement of Nobility Healthcare, LLC. The date of this Exhibit (the “Exhibit
Date”) is June 1, 2021. As of the Exhibit Date, the Members of the Company are the Persons set forth below.

 

	Member	Send
    Notices To: 

     

	Nobility
    DAH, LLC	7465
    East Osborn Road

    Scottsdale,
    AZ 85251

     

	Digital
    Ally Healthcare, Inc.

     

     
	Digital
    Ally, Inc.

    15612
    College Blvd.

    Lenexa,
    Kansas 66219

    ATTN:
Stanton E. Ross 

     

 

    	34 

     

    

 

MEMBER
UNITS EXHIBIT B

 

This
Member Units Exhibit B is a part of the Operating Agreement of Nobility Healthcare, LLC. The date of this Exhibit (the “Exhibit
Date”) is June 1, 2021.

 

1. Authorized
Units. As of the Exhibit Date, the number of Authorized Units is as follows:

 

	Unit
    Type	No.
Units 

	Authorized
    Units	100,000
	Issued
    Units	100,000
	Non-Issued
    Units	-0-

 

 2.  Issued Units. The Issued Units as of the Exhibit Date are the Units identified on the following Table.

 

	Member	No.
of Issued Units 
	Voting
    Status	Percentage
    Interest
	Nobility,
    LLC	49,000	Voting
    Units 	49%
	Digital
    Ally, Inc.	51,000	Voting
    Units	51%
	Total	100,000	 	100%
    

 

3. Non-Issued
Units. As of the Exhibit Date, there are no Non-Issued Units.

 

4. Approved
Transfers of Record. As of the Exhibit Date, there are no Approved Transfers of Record.

 

    	35 

     

    

 

TAX
COMPLIANCE EXHIBIT C

 

1. Definitions.
As used in this Tax Compliance Exhibit C, the following terms shall have the following meanings, unless otherwise indicated:

 

“Adjusted
Capital Account Deficit” means, with respect to any Member, the deficit balance, if any, in the Member’s Capital Account
as of the end of the relevant fiscal year, after giving effect to the following adjustments: (i) increased for any amounts such Member
is unconditionally obligated to restore and the amount of such Member’s share of Company Minimum Gain and Member Minimum Gain after
taking into account any changes during such year; and (ii) reduced by the items described in Treasury Regulation § 1.704-1(b)(2)(ii)(d)(4),
(5) and (6).

 

“Company
Minimum Gain” shall have the same meaning as partnership minimum gain set forth in Treasury Regulation § 1.704-2(d). Company
Minimum Gain shall be determined, first, by computing for each Nonrecourse Liability any gain which the Company would realize if the
Company disposed of the property subject to that liability for no consideration other than full satisfaction of such liability and, then,
aggregating the separately computed gains. For purposes of computing gain, the Company shall use the basis of such property that is used
for purposes of determining the amount of the Capital Accounts under Section 6.1. In any taxable year in which a Revaluation occurs,
the net increase or decrease in Company Minimum Gain for such taxable year shall be determined by: (1) calculating the net decrease or
increase in Company Minimum Gain using the current year’s book value and the prior year’s amount of Company Minimum Gain,
and (2) adding back any decrease in Company Minimum Gain arising solely from the Revaluation.

 

“Income”
and “Loss” mean, respectively, for each fiscal year or other period, an amount equal to the Company’s taxable income
or loss for such year or period, determined in accordance with Code § 703(a), except that for this purpose (i) all items of income,
gain, deduction or loss required to be separately stated by Code § 703(a)(i) shall be included in taxable income or loss; (ii) tax
exempt income shall be added to taxable income or loss; (iii) any expenditures described in Code § 705(a)(2)(B) (or treated as Code
§ 705(a)(2)(B) expenditures pursuant to Treasury Regulation § 1.704-l(b)(2)(iv)(i)) and not otherwise taken into account in
computing taxable income or loss shall be subtracted; and (iv) taxable income or loss shall be adjusted to reflect any item of income
or loss specifically under this Agreement.

 

“Member
Minimum Gain” shall have the same meaning as partner nonrecourse debt minimum gain as set forth in Treasury Regulation §
1.704-2(i)(3). With respect to each Member Nonrecourse Debt, Member Minimum Gain shall be determined by computing for each Member Nonrecourse
Debt any gain that the Company would realize if the Company disposed of the property subject to that liability for no consideration other
than full satisfaction of such liability. For purposes of computing gain, the Company shall use the basis of such property that is used
for purposes of determining the amount of the Capital Accounts under Section 6.1. In any taxable year in which a Revaluation occurs,
the net increase or decrease in Member Minimum Gain for such taxable year shall be determined by: (1) calculating the net decrease or
increase in Member Minimum Gain using the current year’s book value and the prior years’ amount of Member Minimum Gain, and
(2) adding back any decrease in Member Minimum Gain arising solely from the Revaluation.

 

“Member
Nonrecourse Debt” shall have the same meaning as partner nonrecourse debt set forth in Treasury Regulation § 1.704-2(b)(4).

 

“Member
Nonrecourse Deductions” shall have the same meaning as partner nonrecourse deductions set forth in Treasury Regulation §
1.704-2(i)(2). Generally, the amount of Member Nonrecourse Deductions with respect to a Member Nonrecourse Debt for a fiscal year equals
the net increase during the year in the amount of the Member Minimum Gain (determined in accordance with Treasury Regulation § 1.704-2(i))
reduced (but not below zero) by the aggregate distributions made during the year of proceeds of Member Nonrecourse Debt and allocable
to the increase in Member Minimum Gain determined according to the provisions of Treasury Regulation § 1.704-2(i).

 

    	36 

     

    

 

“Nonrecourse
Deductions” shall have the same meaning as nonrecourse deductions set forth in Treasury Regulation § 1.704-2(b)(1). Generally,
the amount of Nonrecourse Deductions for a fiscal year equals the net increase in the amount of Company Minimum Gain (determined in accordance
with Treasury Regulation § 1.704-2(d)) during such year reduced (but not below zero) by the aggregate distributions made during
the year of proceeds of a Nonrecourse Liability that are allocable to the increase in Company Minimum Gain, determined according to the
provisions of Treasury Regulation § 1.704-2(c) and (h).

 

“Nonrecourse
Liability” means a Company liability with respect to which no Member bears the economic risk of loss as determined under Treasury
Regulation § 1.752-l(a)(2).

 

“Revaluation”
means the occurrence of any event described in clause (x), (y) or (z) of Section 2 of this Exhibit in which the book basis of Business
Property is adjusted to its fair market value.

 

2. Capital
Accounts. Each Member’s Capital Account shall be (A) increased by (i) the amount of money contributed by such Member, (ii)
the fair market value of property contributed by such Member (net of liabilities secured by such contributed property that the Company
is considered to assume or take subject to under Code § 752), (iii) allocations to such Member of Company income and gain (or items
thereof), and (iv) to the extent not already netted out under clause (B)(ii) below, the amount of any Company liabilities assumed by
the Member or which are secured by any property distributed to such Member; and (B) decreased by (i) the amount of money distributed
to such Member, (ii) the fair market value of property distributed to such Member (net of liabilities secured by such distributed property
that such Member is considered to assume or take subject to under Code § 752), (iii) allocations to such Member of Company loss
and deductions (or items thereof), and (iv) to the extent not already netted out under clause (A)(ii) above, the amount of any liabilities
of the Member assumed by the Company or which are secured by any property contributed by such Member to the Company.

 

If
any Units or Member Interest is transferred in accordance with the terms of this Agreement, the transferee shall succeed to the Capital
Account of such transferor to the extent it relates to the transferred Units or Member Interest.

 

In
the event of (x) an additional capital contribution by a Member of more than a de minimis amount that results in a shift in Percentage
Interests, (y) the distribution by the Company to a Member of more than a de minimis amount of property as consideration for a Member
Interest or the distribution of property other than cash, or (z) the liquidation of the Company within the meaning of Treasury Regulation
§ 1.704-l(b)(2)(ii)(g), the book basis of the Business Property may be adjusted to fair market value and the capital accounts of
all the Members may, if determined by the Manager, be adjusted simultaneously to reflect the aggregate net adjustment to book basis as
if the Company recognized gain or loss equal to the amount of such aggregate net adjustment.

 

The
foregoing provisions of this Section 2 and the other provisions of this Agreement relating to the maintenance of capital accounts are
intended to comply with Treasury Regulation §§ 1.704-1(b) and 1.704-2, and shall be interpreted and applied in a manner consistent
with such Treasury Regulations. If it is determined by the Manager that it is prudent or advisable to modify the manner in which the
Capital Accounts, or any increases or decreases thereto, are computed in order to comply with such Treasury Regulations, the Manager
may cause such modification to be made provided that it is not likely to have a material effect on the amounts distributable to any Member
upon the dissolution of the Company.

 

    	37 

     

    

 

3. Special
Rules regarding Allocations of Tax Items. Notwithstanding the allocation provisions of this Agreement, the following special rules
shall apply in allocating net income and net loss of the Company:

 

(A) Section
704(c) and Revaluation Allocations. In accordance with Code Section 704(c) and the Treasury Regulations thereunder, income, gain,
loss and deduction with respect to any property contributed to the capital of the Company shall, solely for tax purposes, be allocated
among the Members so as to take account of any variation between the adjusted basis of such property to the Company for federal income
tax purposes and its fair market value at the time of contribution. In the event of a Revaluation, subsequent allocations of income,
gain, loss and deduction with respect to such property shall take account of any variation between the adjusted basis of such property
to the Company for federal income tax purposes and its fair market value immediately after the adjustment in the same manner as under
Code § 704(c) and the Treasury Regulations thereunder. Any elections or other decisions relating to such allocations shall be made
by the Manager in a manner that reasonably reflects the purpose and intention of this Agreement. Allocations pursuant to this Section
3(A) are solely for income tax purposes and shall not affect, or in any way be taken into account in computing, any Member’s
Capital Account or share of Income or Loss pursuant to any provision of this Agreement.

 

(B) Minimum
Gain Chargeback. Notwithstanding any other allocation provision of this Agreement, if there is a net decrease in Company Minimum
Gain during a Company taxable year, each Member shall be allocated items of income and gain for such year (and, if necessary, for subsequent
years) in an amount equal to that Member’s share of the net decrease in Company Minimum Gain during such year (the “Minimum
Gain Chargeback Requirement”). A Member’s share of the net decrease in Company Minimum Gain is the amount of the total
decrease multiplied by the Member’s percentage share of Company Minimum Gain at the end of the immediately preceding taxable year.
A Member is not subject to the Minimum Gain Chargeback Requirement to the extent: (i) the Member’s share of the net decrease in
Company Minimum Gain is caused by a guarantee, refinancing or other change in the debt instrument causing it to become partially or wholly
recourse debt or a Member Nonrecourse Debt, and the Member bears the economic risk of loss for the newly guaranteed, refinanced or otherwise
changed liability; (ii) the Member contributes capital to the Company that is used to repay the Nonrecourse Debt and the Member’s
share of the net decrease in Company Minimum Gain results from the repayment; or (iii) the Minimum Gain Chargeback Requirement would
cause a distortion and the Commissioner of the Internal Revenue Service waives such requirement.

 

A
Member’s share of Company Minimum Gain shall be computed in accordance with Treasury Regulation § 1.704-2(g) and as of the
end of any Company taxable year shall equal: (1) the sum of the Nonrecourse Deductions allocated to that Member up to that time and the
distributions made to that Member up to that time of proceeds of a Nonrecourse Liability allocable to an increase of Company Minimum
Gain, minus (2) the sum of that Member’s aggregate share of net decrease in Company Minimum Gain plus that Member’s aggregate
share of decreases resulting from revaluations of Business Property subject to Nonrecourse Liabilities. In addition, a Member’s
share of Company Minimum Gain shall be adjusted for the conversion of recourse and Member Nonrecourse Debts into Nonrecourse Debts in
accordance with Treasury Regulation § 1.704-2(g)(3). In computing the above, amounts allocated or distributed to the Member’s
predecessor in interest shall be taken into account.

 

(C) Member
Minimum Gain Chargeback. Notwithstanding the other allocation provisions of this Agreement other than Section 3(B) of this Tax Compliance
Exhibit, if there is a net decrease in Member Minimum Gain during a Company taxable year, each Member who has a share of the Member Minimum
Gain (determined under Treasury Regulation § 1.704-2(i)(5) as to the beginning of the year) shall be allocated items of income and
gain for such year (and, if necessary, for subsequent years) equal to that Member’s share of the net decrease in Member Minimum
Gain. In accordance with Treasury Regulation § 1.704-2(i)(4), a Member is not subject to this Member Minimum Gain Chargeback requirement
to the extent the net decrease in Member Minimum Gain arises because the liability ceases to be Member Nonrecourse Debt due to a conversion,
refinancing or other change in the debt instrument that causes it to be partially or wholly a nonrecourse debt. The amount that would
otherwise be subject to the Member Minimum Gain Chargeback requirement is added to the Member’s share of Company Minimum Gain.

 

    	38 

     

    

 

(D) Qualified
Income Offset. If any Member unexpectedly receives an adjustment, allocation or distribution described in Treasury Regulation §
1.704-1(b)(2)(ii)(d)(4), (5) or (6), which causes or increases such Member’s Adjusted Capital Account Deficit, items of Company
income and gain shall be specially allocated to such Member in an amount and manner sufficient to eliminate such Adjusted Capital Account
Deficit as quickly as possible, provided that an allocation under this Section 3(D) shall be made if and only to the extent such
Member would have an Adjusted Capital Account Deficit after all other allocations under Article 7 have been made.

 

(E) Nonrecourse
Deductions. Nonrecourse Deductions for any fiscal year or other period shall be allocated to the Members in proportion to their Percentage
Interests.

 

(F) Member
Nonrecourse Deductions. Any Member Nonrecourse Deduction shall be allocated to the Member who bears the risk of loss with respect
to the loan to which such Member Nonrecourse Deductions are attributable in accordance with Treasury Regulation § 1.704-2(i).

 

(G) Curative
Allocations. Any special allocations of items of income, gain, deduction or loss pursuant to Sections 3(B), (C), (D), (E), (F) and
(H) shall be taken into account in computing subsequent allocations of income and gain pursuant to this Agreement, so that the net amount
of any items so allocated and all other items allocated to each Member pursuant to this Agreement shall, to the extent possible, be equal
to the net amount that would have been allocated to each such Member pursuant to this Agreement if such adjustments, allocations or distributions
had not occurred.

 

(H) Loss
Allocation Limitation. Notwithstanding the other provisions of this Agreement, unless otherwise agreed to by the Manager, no Member
shall be allocated Loss in any taxable year which would cause or increase an Adjusted Capital Account Deficit as of the end of such taxable
year.

 

(I) Share
of Nonrecourse Liabilities. Solely for purposes of determining a Member’s proportionate share of the “excess nonrecourse
liabilities” of the Company within the meaning of Treasury Regulation § 1.752-3(a)(3), each Member’s interest in Company
profits is equal to its Percentage Interest.

 

(J) Compliance
with Regulations. The foregoing provisions of this Section 3 are intended to comply with Treasury Regulations §§ 1.704-1,
1.704-2 and 1.752-1 through 1.752-5, and shall be interpreted and applied in a manner consistent with such Treasury Regulations. If it
is determined by the Manager that it is prudent or advisable to amend this Tax Compliance Exhibit C in order comply with such
regulations, the Manager is empowered to amend or modify this Tax Compliance Exhibit C notwithstanding any other provision of
this Agreement to the contrary.

 

(K) General
Allocation Provisions. Except as otherwise provided in this Agreement, all items that are components of Income or Loss shall be divided
among the Members in the same proportions as they share such Income or Loss, as the case may be, for the year. For purposes of determining
the Income, Loss or any other items for any period, Income, Loss or any such other items shall be determined on a daily, monthly or other
basis, as determined by the Manager using any permissible method under Code § 706 and the Treasury Regulations thereunder.

 

    	39 

     

    

 

MEMBER
CAPITAL EXHIBIT D

 

This
Member Capital Exhibit D is a part of the Operating Agreement of Nobility Healthcare, LLC. The date of this Exhibit (the “Exhibit
Date”) is June 1, 2021.

 

The
Capital Contributions made by the Members to Company through the Exhibit Date are set forth below on the table below.

 

	Member	 	Source
    	 	Units	 	Issue

    Date
	 	Capital
Contribution 

	Nobility
    DAH, LLC	 	Original
    Issue	 	49,000	 	6/1/21	 	-0-
    
	Digital
    Ally Healthcare, Inc.	 	Original
    Issue	 	51,000	 	6/1/21	 	Initial
    capital

    $13,500,000.00*

 

	1.	Capital
                                            Accounts. The Capital Accounts of the Members as of the Exhibit Date are as set forth
                                            below:

 

 

	Member	 	Capital
                                            Account  

	Nobility
    DAH, LLC

     
	 	-0-
	Digital
    Ally, Inc.	 	To
    a maximum of

    $13,500,000.00*1

 

*Member
Digital Ally will make its Initial Capital Contribution in tranches as it exercises its Right of First Refusal of Opportunities as set
forth in Section 11.3(b), “Member Digital Ally’s Right of First Refusal.”

 

Upon
utilization of the Initial Capital of $13,500,000 in the Company’s business, the Manager will provide written notice of such fact
to Member Digital Ally and it will have the right to contribute a tranche of $5,000,000 (a “Capital Tranche”) of additional
capital to the Company for a period of thirty (30) days’ from the date of the notice. Upon contribution of such additional Capital
Tranche, Member Digital Ally’s Right of First Refusal of Opportunities will continue as set forth in Section 11.3(b), “Member
Digital Ally’s Right of First Refusal.” Member Digital Ally will make its contribution of the Capital Tranche in tranches
as it exercises its Right of First Refusal of Opportunities.

 

Upon
utilization of the first Capital Tranche, Member Digital Ally will have the right to contribute successive Capital Tranches to the Company
under the same terms and conditions as set forth in the preceding paragraph after written notice given by the Manager to Member Digital
Ally that the Company has utilized the previous Capital Tranche in its business.

 

    	40

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