Document:

Exhibit 10.2

 

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

CARDINAL VENTURE HOLDINGS LLC

 

THIS AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT, dated as of _______, 2020 (this “Agreement”), of Cardinal Venture Holdings
LLC, a Delaware limited liability company (the “Company”),
is made and entered into by and among Khurram P. Sheikh (the “Managing
Member”), and each person set forth on the signature pages hereto (including 3AM LLC, a Delaware limited liability
company, as the “Initial Member”, and together with the Initial Member, along with any new members who may subsequently
be properly admitted after the date hereof, as the “Non-Managing Members”
and, collectively with the Managing Member, the “Members” and each individually, a “Member”).

 

RECITALS

 

WHEREAS, the Company
was formed as a limited liability company pursuant to and in accordance with the Delaware Limited Liability Company Act, 6 Del.
C. § 18-101, et seq., as amended (the “Act”),
on July 20, 2020, by the filing of the Company’s Certificate of Formation with the office of the Secretary of State of the
State of Delaware;

 

WHEREAS, the Members
intend that the purpose of the Company be to conduct any business, enterprise or activity permitted by or under the Act, including,
but not limited to, owning certain interests in KINS Capital, LLC, a Delaware limited liability company (the “Sponsor”)
as sponsor entity to KINS Technology Group Inc., a Delaware corporation (the “SPAC”), which was incorporated
for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business
combination with one or more businesses (a “Business Combination”);

 

WHEREAS, the Company
and the Sponsor intend that the SPAC will pursue an initial public offering (the “Public Offering”) of its units,
with each unit consisting of one share of Class A common stock of the SPAC, $0.0001 par value (“Class A Common Stock”),
and a fraction of one warrant, with each whole warrant exercisable for one share of Class A Common Stock;

 

WHEREAS, the Sponsor
(a) purchased 5,750,000 shares of Class B common stock of the SPAC, $0.0001 par value (the “Founder Shares”),
for an aggregate purchase price of $25,000, pursuant to that certain subscription agreement, dated as of July 27, 2020, between
the SPAC and the Company and (b) issued Class A Units that provide for distribution of the Founder Shares and/or any other assets
not attributable to the Private Placement Warrants to holders of such Class A Units;

 

WHEREAS, in connection
with the Public Offering, (a) the Sponsor will purchase certain warrants of the SPAC (the “Private Placement Warrants”),
each Private Placement Warrant exercisable to purchase one share of Class A Common Stock of the SPAC and (b) the SPAC will issue
Class B Units of the SPAC to its members that provide for the distribution of the Private Placement Warrants to the holders of
such Class B Units of the SPAC;

 

     

    	 

    

 

WHEREAS, (a) the Company
loaned the Sponsor an aggregate of up to $300,000 pursuant to a promissory note (the “Sponsor Promissory Note”)
and (b) the Sponsor loaned the SPAC certain amounts not to exceed $300,000 pursuant to a promissory note dated as of July 27, 2020;
and

 

WHEREAS, the Members
desire to enter into this Agreement to amend and restate in its entirety, the Company’s original Limited Liability Company
Agreement, dated as of July 25, 2020 (the “Original LLC Agreement”).

 

NOW, THEREFORE, in
consideration of the mutual representations, warranties, covenants and agreements contained herein, the parties hereto hereby agree
as follows:

 

ARTICLE
I

GENERAL PROVISIONS

 

Section 1.1 Formation.
The Company was originally formed as a Delaware limited liability company on July 20, 2020, pursuant to the provisions of the
Act. A certificate of formation for the Company as described in Section 18-101 of the Act (the “Certificate of Formation”)
has been filed in the Office of the Secretary of State of the State of Delaware in conformity with the Act. Deborah Reusch has
been and currently is designated as an “authorized person,” within the meaning of the Act, solely for purposes of
filing the Certificate of Formation. The Managing Member is authorized to and shall cause to be executed and filed, if necessary,
any certificates and documents as may be necessary or appropriate from time to time to comply with all requirements for the continued
existence and operation of a limited liability company in the State of Delaware and all other jurisdictions where the Company
may desire to conduct its business. This Agreement replaces and supersedes all prior agreements governing the Company’s
organization and ownership, including the Original LLC Agreement.

 

Section 1.2 Name
of the Company. The name of the limited liability company is “Cardinal Venture Holdings LLC”.

 

Section 1.3 Effective
Date. This Agreement shall be effective as of the date hereof.

 

Section 1.4 Principal
Place of Business of the Company. The principal place of business of the Company shall be located at 75 Broadway, San Francisco,
CA 94111, or at such other place as may be designated from time to time by the Managing Member. The Company may maintain such
other places of business as the Managing Member may deem advisable from time to time. The Company shall keep its books and records
at its principal office or at such other place in the United States as may from time to time be designated by the Managing Member.
The Managing Member shall give prompt notice to each Member of any change in the location of the Company’s principal office
or the location of its books and records.

 

Section 1.5 Title
to Company Property. Title to all assets owned by the Company, whether tangible or intangible, shall be held by the Company
as an entity and no Member, individually, shall have any ownership of any such asset. The Company may hold any of its assets in
its own name or in the name of a nominee, which nominee may be one or more individuals, corporations, partnerships, trusts or
other entities.

 

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Section 1.6 Purposes
of the Company. The purposes of the Company are to conduct any business, enterprise or activity permitted by or under the
Act, including, but not limited to, the ownership of certain interests in the Sponsor (and indirectly, in the SPAC), and all activities
related or incidental to any of the foregoing, but not in contravention of any of the provisions of this Agreement.

 

Section 1.7 Registered
Office. The address of the registered office of the Company in the State of Delaware is c/o Corporation Service Company, 251
Little Falls Drive, Wilmington, Delaware 19808.

 

Section 1.8 Registered
Agent. The name and address of the registered agent of the Company for service of process of the Company in the State of Delaware
is c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, Delaware 19808.

 

Section 1.9 Term.
The Company shall continue until terminated or dissolved under the provisions of this Agreement or pursuant to law.

 

ARTICLE
II

MANAGEMENT AND OPERATION

 

Section 2.1 Management
of the Company.

 

(a) Subject
to such matters which are expressly reserved hereunder or under the Act to the Members for decision, the business and affairs of
the Company shall be managed and controlled solely and exclusively by the Managing Member, who shall have all of the rights that
may be possessed by a manager pursuant to the Act and such rights and powers as are otherwise conferred by law or are necessary,
advisable or convenient for the management of the business and affairs of the Company. In the event that Khurram P. Sheikh shall
cease to be able to manage the business and affairs of the Company due to death, disability, or incapacity, the Initial Member
shall be deemed to be the Managing Member; provided, that in the event the Khurram P. Sheikh is subsequently able to manage the
business and affairs of the Company, the Initial Member shall cease to be Managing Member and Khurram P. Sheikh shall be deemed
Managing Member.

 

(b) Without
limiting the generality of Section 2.1(a), the Managing Member shall have the authority, on behalf and in the name of the
Company, to take any action or make any decisions on behalf of the Company hereunder, to carry out any and all of the purposes
of the Company set forth in Section 1.6, and to perform all acts and enter into and perform all contracts and other
undertakings that it may deem necessary or advisable or incidental thereto, including having the Company enter into contracts with
and perform, and otherwise engage in transactions with the Managing Member’s affiliates.

 

(c) Without
limiting the generality of Section 2.1(a) or Section 2.1(b), the Managing Member shall have the authority, on behalf
and in the name of the Company, to cause the Sponsor to establish a pool of (i) Private Placement Warrants initially in the amount
of 300,000 Private Placement Warrants, (ii) Founder Shares initially in the amount of 300,000 Founder Shares, or (iii) such other
amounts as determined by the Managing Member, to be granted to consultants, advisors or other service providers to the SPAC.

 

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Section 2.2 Expenses
and Services of the Members. During the existence of the Company, the Managing Member shall devote such time and effort to
the Company’s business as may be necessary to promote the interests of the Company and the mutual interests of the Members.
The Managing Member shall charge the Company and be reimbursed for all expenses (including, without limitation, legal and accounting
fees, management fees and travel expenses) incurred by the Managing Member in connection with the Company’s business, and
may allocate to the Company on any basis selected by the Managing Member in good faith which is consistent with good accounting
practices, a portion of any and all expenses incurred for the mutual benefit of the Company and the other operations, businesses
or affairs of the Managing Member or its affiliates. Each Member may have other business interests and may engage in any other
activities in addition to those relating to the Company, including similar ventures, and neither the Company nor any Member shall
by virtue of this Agreement have any right, title or interest in or to such independent ventures.

 

Section 2.3 Officers.
Without limiting the foregoing, the Managing Member shall have the power and authority to appoint and terminate officers of the
Company (the “Officers”) and retain and terminate employees, agents, administrators, service providers, vendors
and consultants of the Company and to delegate such duties to any such Officers, employees, agents, administrators, service providers,
vendors and consultants as the Managing Member deems appropriate, including the power, acting individually or jointly, to represent
and bind the Company in all matters, in accordance with the scope of their respective duties. Each Officer shall hold office until
his or her successor is duly elected or appointed and qualified, or until his or her earlier death, resignation or removal.

 

Section 2.4 Liability
of Any Member.

 

(a) No
Member will be bound by, or be personally liable for, the expenses, liabilities or obligations of the Company.

 

(b) None
of the Members or any of their respective affiliates, members, directors, officers, employees, agents or advisors (collectively,
the “Related Parties”) shall be personally liable for the return of capital or any contributions of any other
Member, such return to be made solely from Company assets; nor shall any Member or any of their respective Related Parties be liable
to the Company or to any other Member for any negative or debit balances in such other Member’s Capital Account (as defined
below). None of the Members or any of their Related Parties shall be liable or responsible in damages or otherwise to any other
Member for acts performed in good faith within the scope of this Agreement.

 

(c) To
the fullest extent provided by law, each Member and each of their respective Related Parties (collectively, the Indemnified
Parties” and each, an “Indemnified Party”) shall be indemnified and held harmless by the Company (but
not by any Member) from and against any and all claims, demands, liabilities, costs, damages and causes of action of any nature
whatsoever (including, without limitation, reasonable attorneys’ fees or other expenses incurred in connection with settlement
or any legal proceeding, but excluding income taxes payable by such person as a result of such Indemnified Party’s ownership
of an interest in the Company) arising out of actions taken, or not taken, by such Indemnified Party relating to the management
of Company affairs or arising due to the very nature of them being a Member or a Related Party thereof, except where any Indemnified
Party has committed actual fraud, gross negligence or willful misconduct. Indemnifications hereunder shall be made from assets
of the Company and no Indemnified Party shall be personally liable to any Indemnified Party under this Agreement. The Company shall
also indemnify and hold harmless each Indemnified Party and their respective legal representatives from and against those losses,
costs or expenses (including reasonable attorney’s fees) resulting from the negligence, dishonesty or bad faith of any agent
of any Indemnified Party; provided that such agent was selected, engaged or retained by the Indemnified Party. The Company
may, in the discretion of the Managing Member, advance to any Indemnified Party reasonable attorneys’ fees and other costs
and expenses incurred in connection with the defense of any action or proceeding which arises out of such conduct or alleged conduct;
provided that such Indemnified Party agrees to reimburse the Company to the extent that it is finally determined that it,
he or she was not entitled to indemnification in respect thereof. The indemnification rights contained in this Section 2.4
shall be cumulative of, and in addition to, any and all rights, remedies and recourse to which an Indemnified Party may be entitled,
whether pursuant to the provisions of this Agreement, at law or in equity.

 

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Section 2.5 Powers
of the Non-Managing Members. The Non-Managing Members shall have no right to, and shall not, take part in the management or
control of the Company’s business and affairs or act for or bind the Company, except with respect to such matters which
are expressly reserved hereunder or under the Act to such Members. Except as otherwise provided in this Agreement, the Non-Managing
Members shall not take part in or interfere in any manner with the conduct or control of the business of the Company nor have
the right to vote on any matter relating to the Company, its business or affairs.

 

Section 2.6 Actions
by the Members; Meetings. A meeting of the Members may be called at any time by the Managing Member or the Initial Member.
For any meeting of Members, the presence in person or by proxy of (a) the Managing Member and (b) Members (including the Managing
Member) representing at least 51% of the Class A Units (as defined below) (a “Member
Majority”) at the time of the action taken constitutes a quorum for the transaction of business and, except as
otherwise provided in this Agreement, the vote of the Members constituting a Member Majority shall be required to approve any
matter submitted to a vote of such Members. Any action required or permitted to be taken at any meeting of the Members may be
taken without a meeting if Members representing a Member Majority consent thereto in writing, and the writing or writings are
filed with the minutes of the proceedings of the Members. In no instance where action is authorized by written consent shall a
meeting of Members need to be called or notice be given.

 

Section 2.7 Other
Business Interests. Each Member recognizes that each of the other Members or their respective affiliates and Related Parties
(collectively, “Covered Persons” and, each a “Covered Person”) have or may have other business
interests, activities and investments, some of which may be in conflict or competition with the business of the Company, and that
the Covered Persons are entitled to carry on such other business interests, activities and investments. Any Covered Person may
engage in or possess an interest in any other business ventures of any nature or description, independently or with others, similar
or dissimilar to the business of the Company, and neither the Company nor any Member shall have any rights by virtue of this Agreement
or the relationship created hereby in or to any other ventures or activities engaged in by any Covered Person or to the income
or proceeds derived therefrom, and the pursuit of such ventures or activities by any Covered Person shall not be deemed wrongful
or improper, even if the same are competitive with the business activities of the Company. No Covered Person shall be obligated
to present any particular investment opportunity to the Company even if such opportunity is of a character which, if presented
to the Company, could be taken by the Company, and any Covered Person shall have the right to take for its own account (individually
or as a partner, member or fiduciary) or to recommend to others any such particular investment opportunity. Each Covered Person
may have other business interests and may engage in any other activities in addition to those relating to the Company, including
similar ventures, and neither the Company nor any Member shall by virtue of this Agreement have any right, title or interest in
or to such independent ventures.

 

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ARTICLE
III

UNITS; Members; CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS

 

Section 3.1 Units

 

(a) All
interests of the Members in distributions and other amounts specified in this Agreement, as well as the rights of the Members to
vote on, consent to, or approve any matter related to the Company, shall be denominated in units of membership interests in the
Company (each a “Unit” and collectively, the “Units”), and the relative rights, privileges, preferences
and obligations of the Members with respect to Units shall be determined under this Agreement and the Act to the extent provided
herein and therein. From and after the date hereof, the Company shall have two classes of Units entitled “Class A Units”
and “Class B Units”. The Company may issue Class A Units or Class B Units, at the election of the Managing Member,
in exchange for the contribution of cash, real estate, partnership interests, stock, notes or other assets or consideration.

 

(b) Each
Class A Unit shall represent a right to receive any distributions made by the Sponsor on account of the Class A Interests of the
Sponsor (including pursuant to Section 4.2(b) of the Sponsor LLC Agreement).

 

(c) Each
Class B Unit shall represent a right to receive any distributions made by the Sponsor on account of the Class B Interests of the
Sponsor (including pursuant to Section 4.2(c) or Section 4.2(d) of the Sponsor LLC Agreement).

 

(d) Except
as otherwise expressly provided in this Agreement, holders of Class A Units and Class B Units shall be entitled to vote the Units
on all matters as to which the vote or consent of the Members is required.

 

(e) A
Member's "Class A Unit Percentage" shall be the total number of Class A Units held by such Member, divided by
the total number of outstanding Class A Units.

 

(f) A
Member’s “Class B Unit Percentage” shall be the total number of Class B Units held by such Member, divided
by the total number of outstanding Class A Units.

 

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Section 3.2 Members.
The Members listed on the member allocation schedule (the "Members' Schedule") maintained by the Managing Member
shall constitute the Members as of the date of this Agreement. Each Member shall have the right to request a copy of the Members'
Schedule but understands and agrees that the Managing Member may redact ownership information regarding any individual Member.

 

Section 3.3 Additional
Members. Subject to Section 10.12, one or more additional Members may be admitted to the Company from time to time,
on such terms as the Managing Member shall determine. Upon and by becoming a Member of the Company, such additional Member agrees
to, and agrees to be bound by, the terms and provisions of this Agreement. Upon admission of a Member to the Company, the Members'
Schedule shall be amended to (a) include the name, address, Capital Contribution (as defined below), Class A Units and Class B
Units and date of admission of such new Member in the Company and (b) adjust the Class A Units and Class B Units, as applicable,
of the other Members accordingly.

 

Section 3.4 Capital Contributions.

 

(a) Each
Member has, on or prior to the date hereof, made a Capital Contribution to the Company opposite such Member’s name under
“TOTAL CONTRIBUTION” on the Members' Schedule (“Total Contribution”).

 

(b) Each
Member shall be deemed to have contributed a portion of its Total Contribution to the Company opposite such Member’s name
under “CLASS A CONTRIBUTION” on the Members' Schedule (“Class A Capital Contribution”), and, based
on such Class A Contribution, each Member has received such Member’s Class A Units as set forth opposite such Member’s
name on the Members' Schedule, as of the date hereof.

 

(c) Each
Member shall be deemed to have contributed a portion of its Total Contribution to the Company opposite such Member’s name
under “CLASS B CONTRIBUTION” on the Members' Schedule (“Class B Capital Contribution”), and, based
on such Class B Contribution, each Member has received such Member’s Class B Units as set forth opposite such Member’s
name on the Members' Schedule, as of the date hereof.

 

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(d) Upon
any determination by the Managing Member that the SPAC requires additional funds (such amount then required, “Additional
Working Capital Requirement”), including without limitation, additional funds to cover the purchase of additional Private
Placement Warrants upon the exercise in whole or in part of the over-allotment option by the underwriters of the Public Offering,
the Managing Member shall make an additional Capital Contribution to the Company, in cash (this election, the “Managing
Members’ Election”); provided, that, the Managing Member may, but is not obligated to offer the opportunity
to the fund the Additional Working Capital Requirement to the other Members in accordance with their respective Class B Unit Percentage.
To the extent that the Managing Member elects (another Member is permitted) to make additional Capital Contributions to fund the
over-allotment option by the underwriters of the Public Offering, such Member will be allocated a portion of Class A Units pro
rata to its Capital Contribution. The Members shall be required to update the Members' Schedule from time to time as necessary
to accurately reflect the information therein, including but not limited to (i) any additional Capital Contribution made by the
Members as contemplated in this Section 3.4(d) or (ii) to reflect the provisions of Section 3.4; provided
that if the Members do not update the Members' Schedule in accordance with this Agreement, such Schedule shall notwithstanding
be deemed to be updated in accordance with the terms of this Agreement. Any amendment or revision to the Members' Schedule made
in accordance with this Agreement shall not be deemed an amendment to this Agreement. Any reference in this Agreement to Members'
Schedule shall be deemed to be a reference to Members' Schedule as amended and in effect from time to time.

 

(e) Other
than as provided in Sections 3.4(a), (b), (c), and (d), no Member shall have any obligation to make
a Capital Contribution to the Company for any reason unless all Members approve the time, amount and manner of such Capital Contributions.

 

(f) “Capital
Contribution” shall mean the total amount of cash, including required Capital Contributions and additional Capital Contributions,
and the Gross Asset Value (as defined in Appendix A) of any other assets, contributed to the Company by a Member, net of
liabilities assumed or to which the assets are subject.

 

Section 3.5 Capital
Accounts. A separate capital account (“Capital
Account”) shall be maintained for each Member in accordance with Sections 704(b) and 704(c) of the Internal Revenue
Code of 1986, as amended from time to time, or any corresponding provision or provisions of prior or succeeding law (the “Code”)
and Sections 1.704-1(b) and 1.704-2 of the regulations promulgated under the Code (the “Treasury
Regulations”). The Capital Account of each Member: (i) shall be increased by: (A) the amount of cash and the
Gross Asset Value of other property (net of liabilities that the Company assumes or takes such property subject to) contributed
by such Member to the Company, and (B) the amount of Net Profits allocated to such Member (and any items of income or gain specially
allocated to such Member) pursuant to Appendix
A; and (ii) shall be decreased by: (A) the amount of Net Losses allocated to such Member (and any items of loss or
deduction specially allocated to such Member) pursuant to Appendix
A, (B) the amount of cash distributed or deemed distributed to such Member, and (C) the Gross Asset Value of property
other than cash distributed to such Member (net of liabilities that the Member assumes or takes such property subject to). The
Capital Account of each Member shall be adjusted to reflect any adjustment to the Gross Asset Value of the Company’s assets
attributable to the application of Sections 734 or 743 of the Code to the extent required pursuant to Treasury Regulations Section
1.704-1(b)(2)(iv)(m).

 

ARTICLE
IV

ALLOCATIONS AND DISTRIBUTIONS

 

Section 4.1 Allocations.
All items of income, gain, loss, deduction and credit shall be allocated to each Member in accordance with Appendix A.

 

Section 4.2 Distributions.

 

(a) No
Member shall have the right to withdraw capital or demand or receive distributions or other returns of any amount in its Capital
Account, except as expressly provided in this Section 4.2.

 

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(b) Subject
to Section 4.2(e), upon (i) the determination of the Managing Member at the time of the consummation of the Business Combination
or at any time thereafter or (ii) following the expiration of any lock-up on the Class A Common Stock or Private Placement Warrants
at the request of a majority of the Members, any amounts distributed on account of the Class A Interests shall be distributed to
the Members in accordance with each Member’s then respective Class A Unit Percentage.

 

(c) Subject
to Section 4.2(e), upon (i) the determination of the Managing Member at the time of the consummation of the Business Combination
or at any time thereafter or (ii) following the expiration of any lock-up on the Class A Common Stock or Private Placement Warrants
at the request of a majority of the Members, any amounts distributed on account of the Class B Interests shall be distributed to
the Members in accordance with each Member’s then respective Class B Unit Percentage.

 

(d) Subject
to Section 4.2(e), upon the sale or other disposition by the Company of any Private Placement Warrants (which shall not
include the exercise of Private Placement Warrants) or any shares of Class A Common Stock (or other securities) received upon exercise
of any Private Placement Warrants, any net proceeds shall be distributed to the Members in accordance with each Member’s
then respective Class B Interests.

 

(e) The
Company shall not be required to make a distribution to a Member pursuant to this Section 4.2 if (i) the amount of such
distribution would exceed the balance in such Member’s Capital Account, or (ii) such distribution would violate the Act or
other applicable law.

 

ARTICLE
V

Records, reports, VALUATIONS and bank accounts

 

Section 5.1 Books
and Records. The Managing Member shall keep true and complete records and books of account with respect to the operations
of the Company.

 

Section 5.2 Accounting
Basis and Fiscal Year. The Company shall operate on a calendar year basis and shall use such method of accounting and make
any elections as shall be determined by the Managing Member; provided, however, that any elections in respect of
taxes shall be made in accordance with Article VI.

 

Section 5.3 Reports.
After the end of each fiscal year, the Managing Member shall cause to be prepared and transmitted, as promptly as reasonably possible,
such information as may be needed to enable each Member to file any required federal income tax return, any required state income
tax return and any other reporting or filing requirements imposed by any governmental agency or authority. The Managing Member
may cause the books and records of the Company to be reviewed or audited, and the Managing Member shall deliver the results of
any such review or audit to the Members promptly after the completion thereof. The cost of any such review or audit, and the cost
of the preparation of all such financial reports, shall be paid by the Company.

 

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Section 5.4 Valuation.
Except as otherwise provided by, or in conflict with, Article VI or Appendix A, the Managing Member shall be entitled
to determine the value (in its sole discretion) of any assets of the Company as may be required or the Managing Member otherwise
determines is desirable.

 

Section 5.5 Bank
Accounts. The Managing Member, on behalf of the Company, may open and maintain a separate bank account or accounts in which
may be deposited all of the capital and any other funds of the Company. All withdrawals from the Company’s account shall
be made upon checks or instructions signed by either an authorized Officer or the Managing Member.

 

ARTICLE
VI

TAX MATTERS

 

Section 6.1 Partnership
Representative; Tax Proceedings; Partnership Audit Procedures.

 

(a) The
Managing Member is hereby designated as (or may appoint) the “partnership representative”, as that term is defined
in Section 6223 of the Code (the “Partnership Representative”) and, to the extent applicable, may appoint a
“designated individual” to act on behalf of the Partnership Representative (the “Designated Individual”)
in accordance with the applicable Treasury Regulations. All references to the Partnership Representative in this Agreement shall
include the Designated Individual acting on behalf of the Partnership Representative, if any.

 

(b) The
Partnership Representative shall be authorized to represent the Company (at the Company’s expense) in connection with all
examinations of the Company’s affairs by tax authorities, including resulting administrative and judicial proceedings (any
such examination, a “Tax Proceeding”); provided that the Partnership Representative shall keep the Members
promptly informed of any such Tax Proceeding, shall consult the Members regarding any such Tax Proceeding, the Members shall be
entitled to attend any meetings or conferences with the Internal Revenue Service (with counsel of its own choosing and at such
Member’s expense) relating to the Company or the U.S. federal income tax treatment of any items relating to the Company and
the Partnership Representative shall not settle or compromise any Tax Proceeding without the consent of the Members, such consent
not to be unreasonably withheld, conditioned or delayed. Each Member agrees that any action taken by the Partnership Representative
in connection with audits of the Company shall be binding upon such Members. No Member shall file a notice with a taxing authority
under Section 6222(b) of the Code (or analogous provision of foreign, state or local law) in connection with such Member’s
intention to treat an item on such Member’s income tax return in a manner that is inconsistent with the treatment of such
item on the Company’s income tax return, unless otherwise required by applicable law.

 

(c) The
Partnership Representative shall be authorized to, in its sole discretion, (i) make any election under Sections 6221 through 6241
of the Code and any successor statutes thereto or the Treasury Regulations promulgated thereunder (the “Partnership Audit
Procedures”), (ii) apportion any taxes (and related interest, penalties, claims, liabilities and expenses) imposed on
the Company pursuant to the Partnership Audit Procedures among the Members and (iii) withhold any such amounts from any distributions
made to any such Member in a manner consistent with Section 6.2.

 

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(d) All
expenses incurred by the Partnership Representative acting on behalf of the Company shall be borne by the Company.

 

Section 6.2 Withholding.
Notwithstanding any other provision of this Agreement, the Company may withhold and pay over to the Internal Revenue Service (or
any other relevant taxing authority (including any state and local taxing authority)) such amounts as the Company is required
to withhold or pay over, pursuant to the Code or any other applicable law, on account of a Member's distributive share of the
Company's items of gross income, income, gain or gross sale or disposition proceeds, as well as any imputed underpayment (within
the meaning of Section 6225 Code) and any similar amount attributable to such Member's interest in the Company. The amount of
any taxes withheld or paid over by the Company, and any other Investor-Related Taxes (as defined below) borne by the Company,
with respect to a Member's distributive share of the Company's gross income, income, gain or gross sale or disposition proceeds,
shall be deemed to have been distributed or paid to such Member, reducing the amount otherwise distributable to such Member pursuant
to this Agreement and reducing, without duplication, the balance in the Capital Account of such Member. If the amount of such
taxes is greater than any such distributable amounts, then such Member and any successor to such Member's interest in the Company
shall pay the amount of such excess to the Company, as a contribution to the capital of the Company. If the Company becomes subject
to any such tax (including interest, penalties and additions to tax) relating to amounts attributable to a Member that has subsequently
withdrawn from the Company, such withdrawn Member shall promptly pay such amount to the Company following receipt of notice thereof
from the Company. "Investor-Related Tax" means any tax withheld from the Company or paid over by the Company,
directly or indirectly, with respect to or on behalf of a Member or direct or indirect beneficial owner thereof, and interest,
penalties and/or any additional amounts with respect thereto, including without limitation, (i) a tax that is determined based
on the status, action or inaction (including the failure of a Member or direct or indirect beneficial owner thereof to provide
information to eliminate or reduce withholding or other taxes) of a Member or direct or indirect beneficial owner thereof, or
(ii) an "imputed underpayment" within the meaning of Section 6225 of the Code and any other similar tax, attributable
to a Member or direct or indirect beneficial owner thereof, as determined by the Managing Member in its sole discretion.

 

Section 6.3 Tax Returns
and Records. The Managing Member shall cause to be prepared and filed all necessary federal, state and local tax returns for
the Company. As promptly as reasonably possible following the end of each taxable year, the Company shall furnish to each Member
the Company’s Internal Revenue Service Form 1065 and a Schedule K-1 with respect to such Member.

 

Section 6.4 Tax Classification.
It is the intention of the Members that the Company be treated as a partnership for U.S. federal income tax purposes (and any
analogous provision of foreign, state or local tax law) and each Member be treated as a partner thereof.

 

    11

    	 

    

 

Section 6.5 Taxable
Year. The taxable year of the Company shall end on December 31 of each year, unless a different taxable year shall be required
by Section 706 of the Code.

 

Section 6.6 Resolution.
Except as otherwise provided in this Agreement, with respect to any disagreement or dispute among the Members relating to taxes,
the Members shall cooperate in good faith to resolve such disagreement or dispute, and if the Members are not able to resolve
such disagreement or dispute, the Managing Member, acting reasonably and in good faith, shall be entitled to determine the resolution
of such disagreement or dispute, which determination shall be final and binding on all Members.

 

Section 6.7 Tax Elections.
The Managing Member shall have the authority, in its sole discretion, to make all Company elections relating to taxes or tax matters
of the Company, including, without limitation, any elections under the Code and Treasury Regulations.

 

Section 6.8 Other
Tax Matters. Notwithstanding any other provisions hereof, all other tax matters shall be governed by Appendix A to
this Agreement.

 

ARTICLE
VII

ADDITIONAL MEMBERS; TRANSFER; WITHDRAWAL

 

Section 7.1 Restriction
on Withdrawal and Transfer.

 

(a) No
Member may voluntarily withdraw from the Company or , except as expressly provided for in Section 7.2 below, sell, transfer,
assign, pledge, hypothecate, exchange or otherwise dispose of (a “Transfer”) all or any portion of its Class
A Units or Class B Units, except with the prior written consent of the Managing Member.

 

(b) In
the event of a Transfer by the Managing Member of all or any of its interest in the Company pursuant to Section 7.1(a),
the Non-Managing Members shall have the right to Transfer a corresponding pro rata amount of their respective interests in the
Company based on the Percentage Interests of the Managing Member and the Non-Managing Members immediately prior to such Transfer
by the Managing Member.

 

(c) Any
attempted Transfer of all or a portion of a Member’s interest in the Company without the prior written consent of the Managing
Member, or in violation of Section 7.1(b), shall be void.

 

Section 7.2 Permitted Transfers.
Notwithstanding Section 7.1(a), Transfers of Class A Units or Class B Units by any Member are permitted to such Member’s
affiliates, immediate family, or to a trust, the primary beneficiary(ies) of which is a member of the Member’s immediate
family; provided that such recipient shall be required to become a Member of the Company pursuant to Section 3.3.

 

    12

    	 

    

 

ARTICLE
VIII

TERMINATION; DISSOLUTION; LIQUIDATION

 

Section 8.1 Events
of Dissolution. The Company shall be dissolved upon any of the following:

 

(a) by
the election of the Managing Member; provided that upon such dissolution, the Managing Member, in its sole discretion, at
such times as it may elect, may distribute all or any portion of the Company’s interests to each Member on a pro rata basis
corresponding to each such Member’s Class A Unit Percentage and Class B Unit Percentage, as applicable, at such times of
distribution, the Company’s interests to be fully distributed in such manner by the third anniversary of the dissolution;

 

(b) the
bankruptcy, resignation, expulsion or dissolution of the Managing Member; or

 

(c) the
occurrence of any other event specified under the laws of the State of Delaware as one effecting dissolution.

 

Dissolution of the
Company shall be effective on the day on which the event occurs giving rise to the dissolution, but the Company shall not terminate
until the assets of the Company shall have been liquidated (if applicable) and distributed as provided herein. Notwithstanding
the dissolution of the Company, prior to the termination of the Company the business of the Company and the rights and obligations
of the Members, as such, shall continue to be governed by this Agreement. Except as expressly set forth in this Section 8.1, no
other event, including the retirement, withdrawal, insolvency, liquidation, dissolution, insanity, resignation, expulsion, bankruptcy,
death, incapacity or adjudication of incompetency of a Member, shall cause a dissolution of the Company or cause the existence
of the Company to terminate.

 

Section 8.2 Winding
Up of Affairs. Upon the dissolution of the Company, the Managing Member shall proceed diligently to wind up the affairs of
the Company and to either distribute in kind or liquidate the assets of the Company. If any assets of the Company are to be distributed
in kind, such assets shall be distributed on the basis of their fair market value as of the date of distribution. After setting
aside such reserves as the Managing Member deems reasonably necessary to meet any contingent or unforeseen liabilities or obligations
of the Company, the Managing Member shall distribute the assets of the Company in the following order of priority:

 

(a) first,
to the payment of the debts and liabilities of the Company, including, without limitation, the payment of expenses of liquidation;
and

 

(b) second,
to each Member in the same manner as if all of the distributable cash were then distributed in accordance with the provisions of
Section 4.2.

 

Section 8.3 Cancellation
of Certificate. Upon the completion of the winding up of the Company and the distribution of the Company’s assets, the
Company shall be terminated and the Managing Member shall cause the Company to execute and file a Certificate of Cancellation
in accordance with the Act.

 

    13

    	 

    

 

ARTICLE
IX

Representations and Warranties

 

Section 9.1 Representations
and Warranties of Members. By execution and delivery of this Agreement, as applicable, each of the Members, whether admitted
as of the date hereof or hereafter pursuant to Section 7.2, represents and warrants to the Company and acknowledges
as follows:

 

(a) the
execution, delivery and performance of this Agreement have been duly authorized by such Member and does not require such Member
to obtain any consent or approval that has not been obtained and do not contravene or result in a default in any material respect
under any provision of any law or regulation applicable to such Member or other governing documents or any agreement or instrument
to which such Member is a party or by which such Member is bound;

 

(b) this
Agreement is valid, binding and enforceable against such Member in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium, and other similar laws of general applicability relating to or affecting creditors’
rights or general equity principles (regardless of whether considered at law or in equity);

 

(c) the
interests in the Company have not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
or the securities laws of any other jurisdiction, are issued in reliance upon federal and state exemptions for transactions not
involving a public offering, this Agreement contains certain transfer restrictions applicable to Class A Units and Class B Units,
and the Class A Units and Class B Units cannot be disposed of unless in a transaction registered, or exempted from or not subject
to, registration under the Securities Act;

 

(d) such
Member’s interests are being acquired for its own account solely for investment and not with a view to resale or distribution
thereof; and

 

(e) such
Member has such knowledge and experience in financial and business matters and is capable of evaluating the merits and risks of
an investment in the Company and making an informed decision with respect thereto.

 

ARTICLE
X

MISCELLANEOUS

 

Section 10.1 Successors
and Assigns. This Agreement shall inure to the benefit of, and shall be binding upon, the successors and permitted assigns
of the Members. Notwithstanding anything to the contrary herein (other than in connection with the dissolution of the Company
pursuant to Section 8.1), the legal representative(s) of a Member shall succeed as assignee to such Member’s Class
A Units and/or Class B Units, if applicable, upon such Member’s death, disability, incapacity, adjudication of incompetency,
termination, bankruptcy, insolvency or dissolution, but shall not be admitted as a substitute Member without the consent of the
Managing Member, in its sole discretion.

 

Section 10.2 No Waiver.
The failure of any Member to seek redress for violation, or to insist on strict performance, of any covenant or condition of this
Agreement shall not prevent a subsequent act which would have constituted a violation from having the effect of an original violation.

 

    14

    	 

    

 

Section 10.3 Notices.
All notices and other communications hereunder shall be in writing and shall be given by personal delivery, mailed by registered
or certified mail or air courier service, or sent by facsimile or electronic mail, and addressed: if to the Company, at its principal
office and, if to a Member, to such Member at its last known address as disclosed on the records of the Company. Notices shall
be deemed to have been given as of the date delivered, facsimiled or mailed electronically, or if physically mailed, the third
day after mailing. The Company and any Member may change its address(es) for notices by delivering or mailing as aforesaid, a
notice to the Company and the Members stating the change and setting forth the changed address(es).

 

Section 10.4 Severability.
In case any provision in this Agreement shall be deemed to be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions hereof shall not in any way be affected or impaired hereby.

 

Section 10.5 Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall
constitute one instrument.

 

Section 10.6 Headings,
Etc. The headings in this Agreement are inserted for convenience of reference only and shall not affect the
interpretation of this Agreement.

 

Section 10.7 No Right
to Partition. The Members, on behalf of themselves and their stockholders, successors and assigns, if any, hereby specifically
renounce, waive and forfeit all rights, whether arising under contract or statute or by operation of law, to seek, bring or maintain
any action in any court of law or equity for partition of the Company or any asset of the Company, or any interest which is considered
to be Company property, regardless of the manner in which title to such property may be held.

 

Section 10.8 No Third
Party Rights. This Agreement is intended solely for the benefit of the parties hereto and is not intended to confer any benefits
upon, or create any rights in favor of, any person other than the parties hereto.

 

Section 10.9 Confidentiality.
A Member or an affiliate of a Member receiving Confidential Information (as defined below) shall keep completely confidential,
shall not publish or otherwise disclose and shall not use directly or indirectly for any purpose any Confidential Information;
provided that the foregoing shall not apply to any such information that is required to be disclosed by law or the order
or regulations of any governmental authority or to establish or enforce any rights under this Agreement. Notwithstanding the foregoing,
a Member may disclose Confidential Information to (i) another Member, (ii) an affiliate of a Member, or (iii) any
Related Party of such Member or any of its affiliates; provided that each such person receiving Confidential Information
is bound (on terms no less restrictive than those set forth in this Section 10.9) to maintain the confidentiality of such Confidential
Information. “Confidential Information” means (i) this Agreement, all information, data, agreements, letters,
documents, reports and records, which are oral or in writing, containing confidential information concerning the Company, its
affiliates or assets which is delivered or made available by the Company, a Member, or their respective representatives or affiliates
to a Member or a Member’s affiliates after the date hereof on a confidential basis; provided that Confidential Information
does not include (x) information which is obtained by such Member after the date hereof from a source other than the Company,
a Member, or their respective representatives or affiliates, (y) information which is or becomes generally available to the public
other than as a result of a disclosure by a Member in violation of this Section 10.9, or (z) information developed independently
by a Member without reference to or use of the Confidential Information.

 

    15

    	 

    

 

Section 10.10 Governing
Law; Forum Selection; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with, the laws
of the State of Delaware. EACH OF THE MEMBERS HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY STATE COURT IN
THE STATE OF DELAWARE OR ANY U.S. FEDERAL COURT SITTING IN THE STATE OF DELAWARE IN RESPECT OF ANY AND ALL SUITS, CLAIMS, DISPUTES,
CHALLENGES, ACTIONS OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE RIGHTS OF ANY MEMBER UNDER THIS AGREEMENT,
AND THE PERFORMANCE OF THE OBLIGATIONS IMPOSED BY THIS AGREEMENT (“CLAIMS”), AND IRREVOCABLY ACCEPTS FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF THE VENUE OF ANY SUCH CLAIM BROUGHT IN ANY SUCH COURT AND ANY CLAIM BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM. THE PARTIES WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE OR OTHER CLAIM IN CONNECTION WITH THIS
AGREEMENT.

 

Section 10.11 No
Reliance. Each Member is a sophisticated buyer with respect to its interest in the Company and has adequate information concerning
the business to make an informed decision regarding its investment in the Company and has independently and without reliance upon
any other Member and based on such information as such Member has deemed appropriate, made its own Company analysis and decision
to enter into this Agreement. Each Member acknowledges (i) that it has been provided an opportunity to obtain copies of such documents
and the information as it has deemed appropriate in making its own evaluation of the Company’s business and its decision
to enter into this Agreement and (ii) that information which may be pertinent to such Member’s decision to invest in the
Company is available to such Member and can be obtained from the public files. Each Member shall continue to make its own analyses
and decisions with respect to its interest in the Company without reliance upon any other Member, subject to the other Members
fulfilling their express obligations under this Agreement.

 

Section 10.12 Amendment.
Other than changes, modifications or amendments specifically authorized herein, no change, modification or amendment of this Agreement
shall be valid or binding unless such change, modification or amendment shall be in writing and duly executed by Member Majority;
provided that any amendment hereto or waiver hereof that has a material negative effect on the economic interests of a
Member without similarly affecting the interests of all other Members shall require the consent of such Member so affected.

 

Section 10.13 Entire
Agreement. This Agreement constitutes the full and complete agreement of the parties hereto with respect to the subject matter
hereof and supersedes all prior agreements, whether written or oral, between the parties with respect to the subject matter hereof.

 

[Signature Page Follows]

 

    16

    	 

    

 

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

 

	 	KHURRAM P. SHEIKH 
	 	 	
	 	  
	 	 	 
	 	Inpixon	
	 	 	 
	 	By: 	        
	 	Name:	
	 	Title:	
	 	 	 
	 	[●]	
	 	 	 
	 	By: 	
	 	Name:	
	 	Title:	
	 	 	 
	 	[●]	
	 	 	 
	 	By: 	
	 	Name:	
	 	Title:	

 

[Signature Page to Operating Agreement]

 

    A-1

    	 

    

 

APPENDIX A

 

PROFITS, LOSSES, TAX AND OTHER ALLOCATIONS

 

1. Certain
Definitions. The following terms have the definitions indicated below whenever used in this Appendix or the Agreement with
initial capital letters:

 

1.1 Adjusted
Capital Account Deficit: With respect to any Member, the deficit balance, if any, in such Member’s Capital Account as
of the end of the relevant period, after giving effect to the following adjustments:

 

(A) Credit
to such Capital Account any amounts which such Member is obligated to restore to the Company pursuant to Treasury Regulations Section
1.704-1(b)(2)(ii)(c) and the penultimate sentences of Treasury Regulations Section 1.704-2(g)(1) and Treasury Regulations Section
1.704-2(i)(5); and

 

(B) Debit
to such Capital Account the items described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (d)(5), and (d)(6).

 

The foregoing definition
of Adjusted Capital Account Deficit is intended to comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d)
and shall be interpreted consistently therewith.

 

1.2 Gross
Asset Value: With respect to any asset of the Company, such asset’s adjusted basis for federal income tax purposes, except
as follows:

 

(A) The
initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of such asset
at the time of contribution as reasonably determined by the Managing Member;

 

(B) The
Gross Asset Values all Company assets may be adjusted in the discretion of the Managing Member to equal their respective gross
fair market values, as reasonably determined by the Managing Member, at the times specified in Treasury Regulations Section 1.704-1(b)(2)(iv)(f);

 

(C) Any
adjustments to the adjusted basis of any asset of the Company pursuant to Section 734 or Section 743 of the Code shall be taken
into account in determining such asset’s Gross Asset Value in a manner consistent with Treasury Regulations Section 1.704-1(b)(2)(iv)(m);

 

(D) The
Gross Asset Values of Company assets distributed to any Member shall be the adjusted to the gross fair market values of such assets
as reasonably determined by the Managing Member as of the date of distribution.

 

(E) If
the Gross Asset Value of an asset has been determined pursuant to clause (A), (B) or (C) of this definition, such Gross Asset Value
shall thereafter be adjusted in the same manner as would the asset’s adjusted basis for U.S. federal income tax purposes,
except that depreciation deductions shall be computed based on the asset’s Gross Asset Value as so determined, rather than
on its adjusted tax basis.

 

    A-2

    	 

    

 

1.3 Net
Profits and Net Losses: For any period the taxable income or loss, respectively, of the Company for such period, in each case
as determined for U.S. federal income tax purposes, but computed with the following adjustments:

 

(A) Items
of income, gain, loss and deduction (including, without limitation, gain or loss on the disposition of any Company asset and depreciation
or other cost recovery deduction or expense) shall be computed based upon the Gross Asset Value of the Company’s assets rather
than upon such assets’ adjusted bases for U.S. federal income tax purposes;

 

(B) Any
tax-exempt income received by the Company shall be deemed for these purposes only to be an item of gross income;

 

(C) Any
expenditure of the Company described in Section 705(a)(2)(B) of the Code (or treated as described therein pursuant to Treasury
Regulations under Section 704(b) of the Code) shall be treated as a deductible expense;

 

(D) There
shall be taken into account any separately stated items under Section 702(a) of the Code;

 

(E) If
the Gross Asset Value of any Company asset is adjusted pursuant to clauses (ii) or (iv) of the definition thereof, the amount of
such adjustment shall be taken into account in the period of adjustment as gain or loss from the disposition or deemed disposition
of such asset for purposes of computing Net Profits and Net Losses; and

 

(F) Items
of income, gain, loss, or deduction or credit allocated pursuant to Section 2.2 of this Appendix A shall not be taken
into account.

 

2. Allocations
of Profits and Losses.

 

2.1 General.
After the application of Section 2.2 of this Appendix A, Net Profits and Net Losses and items thereof for any
taxable year, or portion thereof, shall be allocated among the Members in a manner such that the Capital Account of each Member,
immediately after making such allocation, and after taking into account actual distributions made during such taxable year, or
portion thereof, is, as nearly as possible, equal (proportionately) to (i) the distributions that would be made to such Member
pursuant to Section 8.2 of the Agreement if the Company were dissolved, its affairs wound up and its assets sold for cash
equal to their Gross Asset Values, all Company liabilities, including the Company’s share of any liability of any entity
treated as a partnership for U.S. federal income tax purposes in which the Company is a partner, were satisfied (limited with respect
to each nonrecourse liability to the Gross Asset Values of the assets securing such liability) and the net assets of the Company
were distributed in accordance with Section 8.2 to the Members immediately after making such allocation, minus (ii) such
Member’s share of Company minimum gain and Member nonrecourse debt minimum gain determined pursuant to Treasury Regulations
Sections 1.704-2(g)(1) and 1.704-2(i)(5), computed immediately prior to the hypothetical sale of assets. Subject to the other provisions
of this Section 2, an allocation to a Member of a share of Net Profit or Net Loss shall be treated as an allocation of the
same share of each item of income, gain, loss or deduction that is taken into account in computing Net Profit or Net Loss.

 

    A-3

    	 

    

 

2.2 Regulatory
Allocations.

 

(A) Notwithstanding
any other provision of this Agreement, (i) “partner nonrecourse deductions” (as defined in Treasury Regulations Section
1.704 2(i)), if any, of the Company shall be allocated for each period to the Member that bears the economic risk of loss within
the meaning of Treasury Regulations Section 1.704-2(i), and (ii) “nonrecourse deductions” (as defined in Treasury Regulations
Section 1.704-2(b)) and “excess nonrecourse liabilities” (as defined in Treasury Regulations Section 1.752-3(a)), if
any, of the Company shall be allocated to the Members in proportion to their respective Interests.

 

(B) This
Agreement shall be deemed to include “qualified income offset,” “minimum gain chargeback” and “partner
nonrecourse debt minimum gain chargeback” provisions within the meaning of Treasury Regulations under Section 704(b) of the
Code. Accordingly, notwithstanding any other provision of this Agreement, items of gross income shall be allocated to the Members
on a priority basis to the extent and in the manner required by such provisions.

 

(C) To
the extent that Net Losses or items of loss or deduction otherwise allocable to a Member hereunder would cause such Member to have
an Adjusted Capital Account Deficit as of the end of the taxable year to which such Net Losses, or items of loss or deduction,
relate (after taking into account the allocation of all items of income and gain for such taxable period), such Net Losses, or
items of loss or deduction, shall not be allocated to such Member and instead shall be allocated to the Members in accordance with
Section 2.1 of this Appendix A as if such Member were not a Member.

 

(D) Any
allocations required to be made pursuant to Section 2.2(a) through Section 2.2(c) of this Appendix A (the “Regulatory
Allocations”) (other than allocations, the effects of which are likely to be offset in the future by other special allocations)
shall be taken into account, to the extent permitted by the Treasury Regulations, in computing subsequent allocations of income,
gain, loss or deduction pursuant to Section 2.1 of this Appendix A so that the net amount of any items so allocated and
all other items allocated to each Member shall, to the extent possible, be equal to the amount that would have been allocated to
each Member pursuant to Section 2.1 of this Appendix A had such Regulatory Allocations under this Section 2.2 of this Appendix
A not occurred.

 

2.3 Tax
Allocations.

 

(A) For
U.S. federal income tax purposes, except as otherwise provided in this Section 2.3, each item of income, gain, loss and deduction
shall be allocated among the Members in the same manner as its corresponding item of book income, gain, loss or deduction is allocated
pursuant to Section 2 of this Appendix A.

 

(B) In
accordance with Sections 704(b) and 704(c) of the Code and the Treasury Regulations thereunder, income, gain, loss and deduction
with respect to any Company asset contributed (or deemed contributed) to the capital of the Company shall, solely for U.S. federal
income tax purposes, be allocated among the Members so as to take into account any variation between the adjusted basis of such
Company asset for federal income tax purposes and its Gross Asset Value upon its contribution (or deemed contribution).

 

    A-4

    	 

    

 

(C) If
the Gross Asset Value of any Company asset is adjusted, subsequent allocations of taxable income, gain, loss and deduction with
respect to such Company asset shall take account of any variation between the adjusted basis of such Company asset for federal
income tax purposes and the Gross Asset Value of such Company asset in the manner prescribed under Code Sections 704(b) and 704(c)
and the Treasury Regulations thereunder. Any elections or decisions relating to such allocations shall be made by the Managing
Member.

 

(D) If
a Member acquires an interest, redeems all or a portion of its interest or transfers an interest during a taxable year, the Net
Profits or Net Losses (and other items referred to in Section 2.1 or 2.2 of this Appendix A) attributable to such interest
for such taxable year shall be allocated between the transferor and the transferee by closing the books of the Company as of the
date of the transfer, or by any other method permitted under Section 706 of the Code and the Treasury Regulations thereunder that
is selected by the Managing Member.

 

(E) The
provisions of this Section 2 (and other related provisions in the Agreement) pertaining to the allocation of items of Company income,
gain, loss, deductions, and credits shall be interpreted consistently with the Treasury Regulations, and to the extent unintentionally
inconsistent with such Treasury Regulations, shall be deemed to be modified to the extent necessary to make such provisions consistent
with the Treasury Regulations.

 

2.4 Miscellaneous.
All matters concerning valuations and the allocation of taxable income, deductions, credits and items of income and loss of
the Members, including taxes thereon, fees, items of income, deduction, gain, loss, credit or withholding for tax purposes, accounting
procedures or such other financial or tax items, not expressly provided for by the terms of the Agreement or this Appendix A,
shall be determined by the Managing Member in a manner consistent with the Treasury Regulations.

 

 

A-5Exhibit
10.2

 

PIERCE
CAPITAL INVESTING AGREEMENT

 

	LESSOR:	LESSEE:
	Pierce
    Capital Investing, LLC	NANO
    Magic LLC
	9885
    Milford Rd             Full Legal Name	31601
    Research Park DR.
	Holly,
    Ml 48442	Billing
    Address

	734-502-8342	Madison
    Heights	M1	49071
	 	City	State	Zip
	 	Jacque
    Soptick Accounting@nanomagic.com
	 	Send
    invoice to attention of 
	 	(800)
    883 - 6266
	 	Telephone

 

EQUIPMENT
INFORMATION: SEE ATTACHED EXHIBIT A

 

EQUIPMENT
LOCATION:

 

NUMBER
& AMOUNT OF LEASE PAYMENTS:

 

	36	 	Monthly	 	36	 	$1.972.31
	Term
    of Lease in Months	 	Payment
    Frequency	 	Number
    of Lease Payments	 	Lease
    Payment

 

1.
LEASE. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Equipment described above and on any attached
schedule (herein with all replacement parts, repairs, additions and accessories called “Equipment”) on the terms and
conditions set forth in this Lease and on any schedule hereto.

 

2.
TERM AND RENT. The term of this Lease shall commence at the time of Lessor’s acceptance of the Lease in writing. The
term shall thereafter continue until all obligations of the Lessee under the Lease shall have been fully performed. The first
Lease Payment will be applied on the date the Lease is accepted by Lessor or any later date designated by Lessor
(“Lease Commencement Date”). The second Lease Payment shall be due on the date designated in writing by the
Lessor (not later than 60 days from the Lease Commencement Date) and subsequent payments shall be due on the same day of each
successive month (or other time period as designated above) thereafter until the balance of the Lease Payments and any
additional Lease Payments or expenses chargeable to Lessee under this Lease shall have been paid in full. Lessee’s
obligation to pay such Lease Payments shall be absolute and unconditional and is not subject to any abatement, set-off,
defense or counterclaim for any reason whatsoever. All payments hereunder shall be made to Lessor at its address specified
above or such other place as Lessor, in writing, directs. If the term is extended, the word “term” as used herein
shall be deemed to refer to all extended terms. All provisions of this Lease shall apply during any extended term except as
may be otherwise specifically provided in this Lease, in a Schedule to this Lease, or in any subsequent written agreement of
the parties. The Lessee is obligated to pay to the Lessor any applicable sales tax on the lease payments as required by state
and local laws.

 

3.
TITLE, PERSONAL PROPERTY, TAXES AND LOCATION. The Furniture is, and shall at all times be and remain the sole and exclusive property
of Lessor, and Lessee, notwithstanding any trade-in or down payment made by Lessee or on its behalf and with respect to the Equipment,
shall have no right, title or interest therein or thereto, except as to the use thereof subject to the terms and conditions of
this Lease. The Equipment is, and at all times shall remain, personal property notwithstanding that the Equipment or any item
thereof may now be, or hereafter become in any manner affixed or attached to, or imbedded in, or permanently resting upon real
property or any improvement thereof or attached in any, manner to what is permanent. If requested by Lessor prior to or at any
time during the term hereof with respect to any item of Equipment, Lessee will obtain and deliver to Lessor waivers of interest
or liens in recordable form, satisfactory to Lessor, from all persons claiming any interest in the real property on which such
Equipment is installed or located. The Equipment shall be kept at the address designated in the Lease and shall not be removed
therefrom without the prior written consent of the Lessor. The Lessor shall withhold written consent to move the equipment greater
than seventy-five (75) miles from an existing Lessor’s office, due to the service commitments listed in this agreement.
The Lessee is required to reimburse the Lessor any Personal Property Taxes assessed to the Lessor on the Equipment leased by the
Lessee.

 

    	 1 of 7

     

    

 

4.
ASSIGNMENT. This Lease or the rights hereunder shall not be assigned, nor shall the Lessee sublease or lend the Equipment or submit
it to be used by anyone other than Lessee’s employees without the prior written consent of Lessor. Lessor may at any time
assign all or part of any interest in this Lease and in each item of Equipment and monies to become due to Lessor hereunder; and,
Lessor may grant security interest in the Equipment, subject to the Lessee’s rights therein. In such events, all the provisions
of this Lease for the benefit of Lessor shall insure to the benefit of and be exercised by or on behalf of such assignee, but
the assignee shall not be liable for or be required to perform any of Lessor’s obligations to Lessee. The Lessor may direct
that all Lease Payments due and to become due under this Lease and assigned by Lessor shall be paid directly to assignee, upon
notice of such assignment to Lessee. The right of the assignee to the payment of assigned Lease Payments and performance of all
Lessee’s obligations, and, to exercise any other of Lessor’s rights hereunder shall not be subject to any defense,
counterclaim or setoff which the Lessee may have assert against the Lessor, and the Lessee hereby agrees that it will not assert
any such defenses, set-offs, counterclaims and claims against the assignee.

 

5.
OWNERSHIP OF EQUIPMENT. Upon expiration of the Lease Term, assuming all payments due under the lease have been made, the equipment
listed on Exhibit A becomes the sole property of Nano Magic LLC.

 

6.
LOSS OR DAMAGE. Lessee hereby assumes and shall bear the entire risk of loss (including theft and requisition of use) or destruction
of or damage to the Equipment from any and every cause whatsoever, whether or not insured, until the Equipment is returned to
Lessor. NO such loss or damage shall relieve Lessee from any Obligation under this Lease, which shall continue in fill force and
effect. In event of damage to or loss or destruction of the Equipment (or any item thereon, Lessee shall promptly notify Lessor
in writing of such fact and shall, at the option of Lessor, (a) place the same in good repair, condition and working order, (b)
replace the Equipment with like equipment in good repair, condition and working order, acceptable to Lessor and transfer clear
title to such replacement equipment to Lessor, whereupon such equipment shall be subject to this Lease and be deemed the Equipment
for purposes hereof, or (c) pay to Lessor the total of all unpaid Lease Payments for the entire Lease Term plus the estimated
fair market value of the Equipment at the end of the originally scheduled Lease Term, whereupon this Lease shall terminate with
respect thereto. All proceeds of insurance received by Lessor as a result of such loss or damage shall, where applicable, be applied
toward the replacement or repair of the Equipment or the payment of the obligations of Lessee hereunder.

 

7.
INSURANCE. Lessee shall obtain, maintain and keep the Equipment insured against all risks of loss or damage from every cause whatsoever
in an amount not less than the actual cash value of the Equipment without deductible and without co-insurance. Lessor, its successors
or assigns, shall be the sole named loss payee with respect to insurance for damage to or loss of the Equipment and shall be named
as an additional insured on Lessee’s public liability insurance. Lessee shall pay all premiums for such insurance and shall
deliver to Lessor certificate of insurance or other evidence satisfactory to Lessor evidencing the insurance required thereby,
along, with proof satisfactory to Lessor, of the payment of the premium therefore, provided, however, that Lessor shall be under
no duty to ascertain the existence of or to examine such insurance policy or to advise Lessee in the event such insurance coverage
shall not comply with the requirement hereof. All insurance shall provide at least sixty (60) days advance written notice to Lessor
before any cancellation or material modification thereof. Lessee hereby irrevocably appoints Lessor as Lessee’s attorney-at-fact
to make claim for, receive payment of, and execute and endorse all documents, checks or drafts received in payment for loss or
damage under any such insurance policy. Unless Lessee is in default, Lessee may with the prior written approval of Lessor, settle
and adjust all such claims. Lessee agrees if Lessee shall fail to procure, maintain, and pay for such insurance, Lessor shall
have the right, but not the obligation to obtain such insurance on behalf of and at the expense of Lessee. In the event Lessor
does obtain such insurance, Lessee agrees to pay all costs thereof with the next Lease Payment.

 

8.
INDEMNITY. Lessee shall hold Lessor harmless from, and defend Lessor against any and all claims, actions, suits, proceedings costs,
expenses, damages, and liabilities, including attorney’s fees, arising out of, connected with, or resulting from the Equipment
or the Lease, including without limitation, the manufacture, selection, delivery, possession, use, operation or return of the
Equipment.

 

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9.
DEFAULT AND REMEDIES. Ifa petition in bankruptcy, arrangement, insolvency, or reorganization is filed by or against Lessee or
any guarantor of Lessee’s obligations hereunder, or if Lessee or any guarantor of Lessee’s obligations makes an assignment
for the benefit of creditors or if Lessee defaults in payment required under this Lease or under any other Lease agreement between
Lessor and Lessee, Lessee agrees Lessor may exercise any one or more of the following remedies: (a) To declare the entire unpaid
balance of Lease Payments for the unexpired term of the Lease immediately due and payable and to similarly accelerate the balances
due under any other Leases between Lessor and Lessee with notice of demand. (b) To sue for and recover all Lease Payments and
other monies due and to become due under the Lease, plus the estimated fair market value of the Equipment at the end of the originally
scheduled Lease Term, all of which shall be discounted to the date of default at six (6%) percent per annum, but only to the extent
permitted by law. _(c) To require Lessee to assemble all Equipment at Lessee’s expense, at a place reasonably designated
by Lessor. (d) To remove any physical obstructions for removal of the Equipment from the place where the Equipment is located
and take possession of any or all items of Equipment, without demand of notice, wherever same may be located, disconnecting and
separating all such Equipment from any other property, with or without any court order or pre-taking hearing or other process
of law, it being understood that facility of repossession in the event of default is a basis for the financial accommodation reflected
by this Lease. Lessee hereby waives any and all damages occasioned by such retaking. Lessee shall also be liable for and shall
pay to Lessor (i) all expense incurred by Lessor in connection with the enforcement of any Lessor’s remedies, including
all expenses of repossessing, storing, shipping, repairing and selling the Equipment, and (ii) Lessor’s reasonable attorneys’
fees. Lessee acknowledges that Lessor incurs substantial expense in training and retaining qualified personnel and maintaining
sufficient inventory or access to such in order to provide the level of service required hereunder for the continued maintenance
of the Equipment leased hereunder. Lessee further acknowledges that the Equipment leased hereunder rapidly becomes obsolete due
to the constant changing of such technology. Lessor and Lessee both acknowledge the difficulty in establishing a value for the
leased Equipment for any unexpired lease term should Lessee default under this Lease and owning to such difficulty both Lessor
and Lessee mutually agree and assent that the provisions of this paragraph represent an agreed measure of damages and such agreed
measure of damages for default are not to be deemed forfeiture or penalty.

 

Whenever
any payment or any other amounts due under this Lease which are not paid when due hereunder by Lessee such amounts not paid shall
bear interest at the lower of (i) two percent (2%) per month, or (ii) the highest interest rate allowed by law. Such amount shall
be payable in addition to all amounts payable by Lessee as a result of exercise of any of the remedies herein provided.

 

All
remedies of Lessor hereunder are cumulative, are in addition to any other remedies provided for by law, and may, to the extent
permitted by law, be exercised concurrently or separately. The exercise of any one remedy shall not be deemed to be an election
of such remedy or to preclude the exercise of any other remedy. No failure on the part of the Lessor to exercise and no delay
in exercising any right or remedy shall operate as a waiver thereof or modify the terms of this Lease. A waiver of default shall
not be a waiver of any other or subsequent default. Lessor’s recovery hereunder shall in no event exceed the maximum recovery
permitted by law.

 

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10.
UCC FILINGS. Lessee authorizes Lessor to file a financing statement with respect to the Equipment signed only by the Lessor
where permitted by the Uniform Commercial Code. Lessee hereby appoints Lessor as Lessee’s attorney-in-fact to execute
such financing statement on Lessee’s behalf and to do all acts or things which Lessor may deem necessary to protect
Lessor’s title and interest hereunder. Lessor and Lessee further agree that a carbon, photographic or other
reproduction of this Lease may be filed as a financing statement and shall be sufficient as a financing statement under the
Uniform Commercial Code. It is the intent of the parties that this is a true Lease, and the filing of a financing statement
under the Uniform Commercial Code shall not be construed as evidence that any security interest was intended to be created,
but only to give public notice of Lessor’s ownership of the Equipment. If this Lease shall be deemed at any time to be
one intended as security then Lessee hereby grants Lessor a security interest in the Equipment and the proceeds from the
sale, lease or other disposition of the Equipment.

 

11. WARRANTY OF BUSINESS PURPOSE. Lessee hereby warrants and represents that the Equipment will be used for business purposes and
not for personal, family or household purposes. Lessee acknowledges that Lessor has relied upon this representation in entering
into this Lease.

 

12.
AUTHORIZATION. Lessee represents and warrants to Lessor that Lessee has complete and unrestricted power to enter into this Lease;
that the persons executing this Lease have been duly authorized to execute the same on behalf of Lessee and that all information
supplied to Lessor by Lessee is true and correct.

 

13.
MISCELLANEOUS. All obligations of the Lessee, of more than one, shall be joint and several. All paragraph headings are inserted
for reference purposes only and shall not affect the interpretation or meaning of this Lease.

 

14.
NOTICF„ Written notices to be given hereunder shall be deemed to have been given when delivered personally or deposited
in the United States mails, postage prepaid addressed to such party at its address set forth above or at such other address as
such party may have subsequently provided in writing.

 

15.
CHOICE OF LAW. This Lease shall be binding and effective when accepted by Lessor at its corporate office in Livonia, Michigan,
shall be deemed to have been made in Livonia, Michigan, and, except for local filing requirements, shall be governed by and construed
in accordance with the laws of the state of Michigan. Lessee hereby consents to and agrees that personal jurisdiction over Lessee
and subject matter jurisdiction over the Equipment shall be with the courts of the state of Michigan or the Federal District Court
for Southeastern Michigan, solely at Lessor’s option, with respect to any provision of this Lease. Lessee also agrees to
waive its right to a trial by jury.

 

16.
ENTIRE AGREEMENT; NON-WAIVER; SEVERABILITY. This Lease contains the entire agreement and understanding between Lessee and
Lessor relating to the subject matter hereof. No agreements or understanding shall be binding on the parties hereto unless
set forth in writing and signed by the parties. Time is of the essence in this Lease. No waiver by Lessor of any breach or
default shall constitute a waiver of any additional or subsequent breach or default by Lessor nor shall it be a waiver of any
of Lessor’s rights. Any provision of this Lease which for any reason may be held unenforceable in any jurisdiction
shall, as to such jurisdiction be ineffective to the extent of such unenforceability without invalidating the remaining
provisions of this Lease, and any such unenforceability in any jurisdiction shall not render unenforceable such provisions in
any other jurisdiction.

 

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Facsimile
Signatures: You agree that a facsimile copy of this agreement bearing authorized signatures may be treated as an original.

 

Executed
this L day of August 20 29

 

	LESSOR:	LESSEE:
	 	 
	 	Nano
    Magic LLC
	Pierce
    Capital Investing, LLC	Legal
    Name of Lesseee
	 	 
	 	Tom
    J. Berman, CEO
	 	Name
    of Authorized Singer and Title (Print)
	 	 
	By:	       	By:	/s/
    Tom J. Berman
	 	 	 	Name
    of Authorized Singer and Title (Signature)

 

LESSOR:
Pierce Capital Investing, LLC 9885

	 	Milford
    Rd
	 	Holly,
    Ml 48442

 

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NON-APPROPRIATION
OF FUNDS ADDENDUM

 

(For
School and Government Funded Agencies)

 

This
Addendum will becqm part of that certain Equipment Rental Agreement #__________dated as of 8/11/20 (“Agreement”) between
Lessor and Nano Magic LLC (“Lessee”). All capitalized terms used in this Addendum w Ich are not defined herein shall
have the meanings given to such terms in the Agreement.

 

You
hereby represent and warrant to Us that as of the date of the Agreement, and throughout the Agreement Term: (a) the individual
who executed the Agreement had at the time of execution of the Agreement full power and authority to execute the Agreement; and
that all required procedures necessary to make the Agreement a legal and binding obligation of the Lessee have been followed;
(b) the Equipment is essential to the immediate performance of a governmental or proprietary function by You within the scope
of Your authority and shall be used during the Agreement Term only by You and only to perform such function; (c) that all payments
due and payable for the fiscal year are within the current budget and are within an available, unexhausted and unencumbered appropriation.

 

In
the event You are not granted funds in future fiscal years for the Equipment and subject to the Agreement or for equipment which
is functionally similar to the Equipment and operating funds are not otherwise available to You to pay the Rent and other payments
due under the Agreement, and there is no other legal procedure or available funds by or with which payments can by made to Us,
and the appropriation did not result from an act or omission by You, You shall have the right to return the Equipment in accordance
with the section in the Agreement titled, Return of Equipment and terminate the Agreement on the last day of the fiscal period
for which appropriations were received. At least thirty (30) days prior to the end of Your fiscal year, Your legal counsel shall
certify in writing that (a) funds have not been appropriated for the fiscal period; (b) such non-appropriation did not result
from any act or failure to act by You; and (c) You have exhausted all funds legally available for payment of Rent. If you terminate
this Agreement because of non-appropriation of funds, You may not purchase, lease or rent, during such fiscal period, equipment
performing functions similar to those performed by the Equipment for a period of twelve (12) months.

 

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Facsimile
Signatures: You agree that a facsimile copy of this agreement bearing authorized signatures may be treated as an original.

 

	LESSOR:	 	LESSEE:
	 	 	 	 	 
	By:	 	 	By:	/s/
    Tom J. Berman (on behalf of Nano Magic LLC)
	Printed
    Name:	 	 	Printed
    Name:	Tom
    J. Berman
	Title:	 	 	Title:	CEO
	 	 	 	 	 
	Date	 	 	Date	8/11/20

 

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