Exhibit 10.1


 


FORM OF SUBSCRIPTION AGREEMENT


 


This SUBSCRIPTION AGREEMENT
(this “Subscription Agreement”) is entered into on November 14, 2021, by and between Waldencast Acquisition Corp.,
a Cayman Islands exempted company limited by shares (“Issuer”),
and the undersigned subscriber (the “Investor”).


 


WHEREAS, this Subscription
Agreement is being entered into in connection with (i) the Agreement and Plan of Merger, dated as of the date hereof (as may be amended,
supplemented or otherwise modified from time to time, the “Obagi Transaction
Agreement”), by and among Issuer, Obagi Merger Sub, Inc., a Cayman Islands exempted company limited by shares and an
indirect wholly owned subsidiary of Issuer (“Obagi Merger Sub”), and Obagi Global Holdings Limited, a Cayman Islands
exempted company limited by shares (“Obagi”), pursuant to which, among other things, Obagi Merger Sub will merge with
and into Obagi, with Obagi as the surviving company in the merger and, after giving effect to such merger, thereby becoming an indirect
wholly owned subsidiary of Issuer, on the terms and subject to the conditions therein (the “Obagi Transaction”)
and (ii) the Equity Purchase Agreement, dated as of the date hereof (as may be amended, supplemented or otherwise modified from time to
time, the “Milk Transaction Agreement”
and together with the Obagi Transaction Agreement, the “Transaction Agreements”), by and among Issuer, Obagi Holdco
1 Limited, a limited company incorporated under the laws of Jersey (“Holdco Purchaser”), Waldencast Partners LP, a
Cayman Islands exempted limited partnership (“Waldencast LP” and together with the Holdco Purchaser, the “Purchasers”),
Milk Makeup LLC, a Delaware limited liability company (“Milk”), and the members of Milk listed on Appendix A
to the Milk Transaction Agreement and signatories thereto and Shareholder Representative Services LLC, a Colorado limited liability company,
solely in its capacity as representative, agent and attorney-in-fact of the members, pursuant to which, among other things, the Purchasers
agree to acquire, and the equityholders of Milk agree to sell, 100% of the equity interests of Milk, on the terms and subject to the conditions
therein (the “Milk Transaction”
and together with the Obagi Transaction, the “Transaction”;


 


WHEREAS, prior to the closing
of the Transaction (and as more fully described in each of the respective Transaction Agreements), Issuer will migrate and domesticate
by way of continuance as a Jersey public limited company and deregister in the Cayman Islands, in accordance with Part 18C of the Companies
(Jersey) Law 1991, as amended (“Jersey Companies Law”), and Part XII of Companies Act (As Revised) of the Cayman Islands
(the “Cayman Act”), respectively (the “Domestication”);


 


WHEREAS, in connection with
the Transaction, Issuer is seeking commitments from interested investors to purchase, following the Domestication and prior to or substantially
concurrently with the closing of the Transaction, ordinary fully paid shares of the Issuer, par value $0.0001 each per share (the “Shares”),
in a private placement (the “PIPE Investment”) for a purchase price of $10.00 each per share (the “Per Share
Subscription Price”);


 


WHEREAS, the aggregate purchase
price to be paid by the Investor for the subscribed Shares (as set forth on the signature page hereto) is referred to herein as the “Subscription
Amount”; and


 


WHEREAS, substantially concurrently
with the execution of this Subscription Agreement and the Transaction Agreements, the Issuer is entering into separate subscription agreements
(collectively, the “Other Subscription Agreements”) with certain investors (other than the Investor)(the “Other
Investors”).


 


NOW, THEREFORE, in consideration
of the foregoing and the mutual representations, warranties and covenants, and subject to the conditions, set forth herein, and intending
to be legally bound hereby, each of the Investor and Issuer acknowledges and agrees as follows:


 


1. Subscription.
The Investor hereby irrevocably subscribes for and agrees to purchase from Issuer, and Issuer hereby agrees to issue and sell to the Investor,
the number of Shares set forth on the signature page of this Subscription Agreement on the terms and subject to the conditions provided
for herein. The Investor acknowledges and agrees that, as a result of the Domestication, the Shares that will be issued pursuant hereto
shall be ordinary fully paid shares in the capital of a Jersey public limited company (and not shares in a Cayman Islands exempted company).


 




     


     


    

 


2. Closing.
The closing of the sale of the Shares contemplated hereby (the “Closing”)
shall occur following the Domestication on a closing date (the “Closing
Date”) specified in the Closing Notice (as defined below), and the Closing shall be conditioned upon the prior or substantially
concurrent consummation of the Transaction (the closing date of the Transaction, the “Transaction Closing Date”). Upon
delivery of written notice from (or on behalf of) Issuer to the Investor (the “Closing
Notice”), that Issuer reasonably expects all conditions to the closing of the Transaction to be satisfied or waived on
an expected Transaction Closing Date that is not less than five (5) business days from the date on which the Closing Notice is delivered
to the Investor and containing the wire instructions for delivery of the Subscription Amount to the Issuer, the Investor shall deliver
the Subscription Amount three (3) business days prior to the expected closing date specified in the Closing Notice (or such other date
agreed to in writing by Issuer), by wire transfer of U. S. dollars in immediately available funds to the account(s) specified by Issuer
in the Closing Notice. On the Closing Date, Issuer shall issue the Shares to the Investor and subsequently cause the Shares to be registered
in book entry form in the name of the Investor (or his, her or its nominee in accordance with his, her or its delivery instructions) on
Issuer’s share register. For purposes of this Subscription Agreement, “business day” shall mean any day, other than
a Saturday, a Sunday or other day on which commercial banks in New York, New York, governmental authorities in the Cayman Islands or commercial
banks in Jersey, are authorized or required by law to close. Prior to or at the Closing Date, the Investor shall deliver to Issuer a duly
completed and executed Internal Revenue Service Form W-9 or appropriate Form W-8. In the event the Transaction Closing Date does not occur
within three (3) business days after the expected closing date specified in the Closing Notice, the Subscription Amount will promptly
(but not later than two (2) business days thereafter) be returned to the Investor by wire transfer of U.S. dollars in immediately available
funds to the account specified by the Investor, and any book-entries for the Shares shall be deemed repurchased and cancelled; provided
that, unless this Subscription Agreement has been terminated pursuant to Section 9 hereof, such return of funds shall not terminate
this Subscription Agreement and the Investor shall remain obligated (i) to redeliver funds to Issuer following Issuer’s delivery
to the Investor of a new Closing Notice and (ii) to consummate the Closing immediately prior to or substantially concurrently with the
consummation of the Transaction.


 


3. Closing
Conditions. The obligation of the parties hereto to consummate the purchase and sale of the Shares pursuant to this Subscription Agreement
is subject to the following conditions:


 


(a) there
shall not be in force any injunction or order issued by any governmental authority enjoining or prohibiting the issuance and sale of the
Shares under this Subscription Agreement;


 


(b) all
conditions precedent to the closing of the Transaction as set forth in each of the Transaction Agreements shall have been satisfied or
waived by the party who is the beneficiary of such condition(s) in such Transaction Agreement (for the avoidance of doubt, a waiver of
the following conditions precedent in any Transaction Agreement shall not be a condition to the Investors obligations hereunder (A) those
conditions that by their nature may only be satisfied at the closing of the Transaction, but subject to the satisfaction or waiver of
such conditions as of the Closing and (B) the condition pursuant to Section 9.3(c) of each Transaction Agreement); 


 


(c) solely
with respect to the Investor’s obligation to close, the Specified Representations (as defined below) made by Issuer in this Subscription
Agreement shall be true and correct as of the Closing Date (other than those representations and warranties expressly made as of an earlier
date, which shall be true and correct as of such date) except for inaccuracies or the failure of such representations and warranties to
be true and correct that (without giving effect to any limitation as to “materiality” or “Issuer Material Adverse Effect”
(as defined below) or another similar materiality qualification set forth herein), individually or in the aggregate, would not reasonably
be expected to have an Issuer Material Adverse Effect. As used herein, “Specified Representations” means those set forth in
Section 5 other than Section 5(e);


 


(d) solely
with respect to Issuer’s obligation to close, the representations and warranties made by the Investor
in this Subscription Agreement shall be true and correct as of the Closing Date (other than those representations and warranties expressly
made as of an earlier date, which shall be true and correct as of such date) except for inaccuracies
or the failure of such representations and warranties to be true and correct that (without giving effect to any limitation as to “materiality”
or “Investor Material Adverse Effect” (as defined below) or another similar materiality qualification set forth herein), individually
or in the aggregate, would not reasonably be expected to have an Investor Material Adverse Effect; and


 


(e) solely
with respect to Issuer’s obligation to close, the Investor shall have wired the Subscription Amount in accordance with Section 2
of this Subscription Agreement and otherwise performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Subscription Agreement to be performed, satisfied or complied with by he, she or it at or prior to the
Closing Date.


 




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4. Further
Assurances. At or prior to the Closing, the parties hereto shall execute and deliver such additional documents and take such additional
actions as the parties reasonably may deem to be practical and necessary in order to consummate the subscription as contemplated by this
Subscription Agreement.


 


5. Issuer
Representations and Warranties. Issuer represents and warrants to the Investor, as of the date hereof, that (provided that no representation
or warranty by Issuer shall apply to any statement or information in the SEC Reports (as defined below) that relates to the topics referenced
in the SEC Guidance (as defined below), nor shall any correction, amendment or restatement of Issuer’s financial statements due
wholly or in part to the SEC Guidance or any other accounting matters, nor any other effects that relate to or arise out of, or are in
connection with or in response to, any of the foregoing or any changes in accounting or disclosure related thereto, be deemed to be a
breach of any representation or warranty by Issuer):


 


(a) As
of the date hereof and prior to the Domestication, Issuer is an exempted company limited by shares duly incorporated, validly existing
and in good standing under the laws of the Cayman Islands (to the extent such concept exists in such jurisdiction). Issuer has all power
(corporate or otherwise) and authority to own, lease and operate its properties and conduct its business as presently conducted and to
enter into, deliver and perform its obligations under this Subscription Agreement. As of the Closing Date, following the Domestication,
Issuer will be duly incorporated, validly existing as a company and in good standing under Jersey Companies Law (to the extent such concept
exists in such jurisdiction), with all power (corporate or otherwise) and authority to own, lease and operate its properties and conduct
its business as presently conducted and to enter into, deliver and perform its obligations under this Subscription Agreement.


 


(b) As
of the Closing Date, the Shares will be duly authorized and, when issued and delivered to the Investor against full payment therefor in
accordance with the terms of this Subscription Agreement, the Shares will be validly authorized and issued, fully paid and non-assessable,
and will not have been issued in violation of or subject to any preemptive or similar rights created under Issuer’s organizational
documents (as in effect at such time of issuance) or under the Jersey Companies Law.


 


(c) This
Subscription Agreement has been duly authorized, executed and delivered by Issuer and, assuming that this Subscription Agreement constitutes
the valid and binding agreement of the Investor, this Subscription Agreement is enforceable against Issuer in accordance with its terms,
except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other laws relating to or affecting the rights of creditors generally, or (ii) principles of equity, whether considered at law or
equity.


 


(d) Assuming
the accuracy of the Investor’s representations and warranties in Section 6, the issuance and sale by Issuer of the Shares
pursuant to this Subscription Agreement will not (i) conflict with or result in a breach or violation of any of the terms or provisions
of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property
or assets of Issuer or any of its subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, lease,
license or other agreement or instrument to which Issuer or any of its subsidiaries is a party or by which Issuer or any of its subsidiaries
is bound or to which any of the property or assets of Issuer is subject that would reasonably be expected to have a material adverse effect
on the ability of Issuer to consummate the issuance and sale of the Shares (an “Issuer Material
Adverse Effect”); (ii) result in any violation of the provisions of the organizational documents of Issuer; or (iii) result
in any violation of any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign,
having jurisdiction over Issuer or any of its properties that would reasonably be expected to have an Issuer Material Adverse Effect.


 


(e) As
of their respective filing dates, or, if amended, as of the date of such amendment, which shall be deemed to supersede such original filing,
all reports filed by Issuer with the U.S. Securities and Exchange Commission (the “SEC”, and the reports, the “SEC
Reports”) complied in all material respects with the applicable requirements of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and the rules and regulations of the SEC promulgated thereunder as of the date of such filing
(as amended, as applicable). None of the SEC Reports filed under the Exchange Act included, when filed or, if amended, as of the date
of such amendment, which shall be deemed to supersede such original filing, any untrue statement of a material fact or omitted to state
a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided, that the Issuer makes no such representation or warranty with respect to any registration statement or any proxy statement/prospectus
to be filed by the Issuer with respect to the Transaction or any other information relating to Obagi, Milk or any of their respective
affiliates included in any SEC Report or filed as an exhibit thereto. There are no material outstanding or unresolved comments in comment
letters received by Issuer from the SEC with respect to any of the SEC Reports. Notwithstanding the foregoing, this representation and
warranty shall not apply to any statement or information in the SEC Reports that relates to changes to historical accounting policies
of Issuer in connection with any order, directive, guideline, comment or recommendation from the SEC that is applicable to Issuer or the
Issuer’s auditor or accountant (collectively, the “SEC Guidance”), nor shall any correction, amendment or restatement
of Issuer’s financial statements due to the SEC Guidance result in a breach of any representation or warranty by Issuer.


 




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(f) Assuming
the accuracy of the Investor’s representations and warranties set forth in Section 6 of this Subscription Agreement, Issuer is not
required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court
or other federal, state, local or other governmental authority, self-regulatory organization or other person in connection with the issuance
of the Shares pursuant to this Subscription Agreement, other than (i)  filings with the SEC, (ii) in connection with or as a result
of the SEC Guidance, (iii) filings required by applicable state securities laws, (iv) the filings required in accordance with Section 13
of this Subscription Agreement; (v) those required by Nasdaq Stock Market LLC (“Nasdaq”), as applicable, including
with respect to obtaining approval of Issuer’s stockholders, and (vi) the failure of which would not be reasonably be expected
to have, individually or in the aggregate, an Issuer Material Adverse Effect.


 


(g) As
of the date hereof, the authorized share capital of Issuer consists of 500,000,000 Class A ordinary shares, par value $0.0001 per share
(“Class A Shares”), 50,000,000
Class B ordinary shares, par value $0.0001 per share (“Class
B Shares”), and 5,000,000 preference shares, par value $0.0001 per share (“Preferred
Shares”). As of the date hereof: (i) 34,500,000 Class A Shares (including those underlying Issuer’s units), 8,625,000
Class B Shares and no Preferred Shares were issued and outstanding; and (ii) 17,433,333 warrants, each exercisable to purchase one (1)
Class A Share at $11.50 per share (“Warrants”),
were issued and outstanding, including 11,500,000 public warrants (including those underlying Issuer’s units) and 5,933,333
private placement warrants. No Warrants are exercisable on or prior to the Closing.


 


(h) The
Issuer is in compliance with all applicable laws, except where such non-compliance would not reasonably be expected to have an Issuer
Material Adverse Effect. As of the date hereof, Issuer has not received any written communication from a governmental authority that alleges
that Issuer is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default or
violation would not reasonably be expected to have, individually or in the aggregate, an Issuer Material Adverse Effect. For the avoidance
of doubt, this representation and warranty shall not apply to the extent any of the foregoing matters or communications arise from or
relate to the SEC Guidance and, in such case, such matters or communications shall not constitute a breach of any representation or warranty
by Issuer.


 


(i) Assuming
the accuracy of the Investor’s representations and warranties set forth in Section 6 of this Subscription Agreement, no registration
under the Securities Act of 1933, as amended (the “Securities Act”), is required for the offer and sale of the Shares
by Issuer to the Investor.


 


(j) Neither
Issuer nor any person acting on its behalf has offered or sold the Shares by any form of general solicitation or general advertising in
violation of the Securities Act.


 


(k) As
of the date hereof, the issued and outstanding Class A Shares of Issuer are registered pursuant to Section 12(b) of the Exchange Act and
are listed for trading on Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s common stock
is then listed. There is no suit, action, proceeding or investigation pending or, to the knowledge of Issuer, threatened against Issuer
by Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s common stock is then listed or the
SEC with respect to any intention by such entity to deregister the Shares or prohibit or terminate the listing of the Shares on Nasdaq
or such other applicable stock exchange on which Issuer’s or its successor’s common stock is then listed, excluding, for the
purposes of clarity, the customary ongoing review by Nasdaq or such other applicable stock exchange on which Issuer’s or its successor’s
common stock is then listed in connection with the Transaction, Issuer has taken no action that is designed to terminate the registration
of its Class A Shares under the Exchange Act.


 


(l) Concurrently
with the execution and delivery of this Agreement, Issuer is entering into the Other Subscription Agreements providing for the sale of
an aggregate of 10,500,000 Shares for an aggregate purchase price of $105,000,000 (including the Shares purchased and sold under this
Subscription Agreement). The Other Subscription Agreements reflect the same purchase price and other terms with respect to the purchase
of the Shares that are no more favorable to such Other Purchasers than the terms of this Subscription Agreement and they shall not be
amended after the date hereof to provide for terms with respect to the purchase of the Shares that are more favorable to such Other Investors
than the terms of this Subscription Agreement, unless such terms are also offered to the Investor.


 




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(m) Issuer
is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Shares.


 


6. Investor
Representations and Warranties. The Investor represents and warrants to Issuer, as of the date hereof, that:


 


(a) If
the Investor is a U.S. person (as defined in Regulation S under the Securities Act of 1933, as amended (the “Securities Act”)),
the Investor (i) is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) or an “accredited
investor” (within the meaning of Rule 501(a) under the Securities Act), in each case satisfying the applicable requirements set
forth on Schedule A, (ii) is acquiring the Shares only for his, her or its own account and not for the account of others, or if
the Investor is subscribing for the Shares as a fiduciary or agent for one or more investor accounts, the Investor has full investment
discretion with respect to each such account, and the full power and authority to make the acknowledgements, representations and agreements
herein on behalf of each owner of each such account, and (iii) is not acquiring the Shares with a view to, or for offer or sale in connection
with, any distribution thereof in violation of the Securities Act (and shall provide the requested information on Schedule A).
The Investor is not an entity formed for the specific purpose of acquiring the Shares. If the Investor is not a U.S. person (as defined
in Regulation S), the Investor is not within the United States and is not being issued the Shares for the account or benefit of a U.S.
person. The Investor further acknowledges that he, she or it is aware that the sale to it is being made in reliance on a private placement
exemption from registration under the Securities Act and is acquiring the Shares for his, her or its own account or for an account over
which it exercises sole discretion for another qualified institutional buyer or accredited investor.


 


(b) The
Investor acknowledges and agrees that the Shares are being offered in a transaction not involving any public offering within the meaning
of the Securities Act, that the Shares have not been registered under the Securities Act and that Issuer is not required to register the
Shares except as set forth in Section 8 of this Subscription Agreement. The Investor acknowledges and agrees that the Shares
may not be offered, resold, transferred, pledged or otherwise disposed of by the Investor absent an effective registration statement under
the Securities Act except (i) to Issuer or a subsidiary thereof, (ii) to non-U.S. persons pursuant to offers and sales that
occur outside the United States within the meaning of Regulation S under the Securities Act, or (iii) pursuant to another applicable
exemption from the registration requirements of the Securities Act, and, in each case, in accordance with any applicable securities laws
of the states of the United States and other applicable jurisdictions, and that any certificates or book entries representing the Shares
shall contain a restrictive legend to such effect. The Investor acknowledges and agrees that the Shares will be subject to these securities
law transfer restrictions and, as a result of these transfer restrictions, the Investor may not be able to readily offer, resell, transfer,
pledge or otherwise dispose of the Shares and may be required to bear the financial risk of an investment in the Shares for an indefinite
period of time. The Investor acknowledges and agrees that the Shares will not immediately be eligible for offer, resale, transfer, pledge
or disposition pursuant to Rule 144 promulgated under the Securities Act, and that the provisions of Rule 144(i) under the Securities
Act will apply to the Shares. The Investor acknowledges and agrees that he, she or it has been advised to consult legal, tax and accounting
advisors prior to making any offer, resale, transfer, pledge or disposition of any of the Shares.


 


(c) Assuming
the accuracy of Issuer’s representations and warranties in Section 5, the consummation
of the transactions contemplated pursuant to this Subscription Agreement, including the Transaction, will not (i) conflict
with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation
or imposition of any lien, charge or encumbrance upon any of the property or assets of the Investor or any of its subsidiaries (if Investor
is not an individual) pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement
or instrument to which the Investor or any of its subsidiaries is a party or by which the Investor or any of its subsidiaries is bound
or to which any of the property or assets of the Investor is subject that would reasonably be expected to have a material adverse effect
on the ability of the Investor to enter into and timely perform Investor’s obligations under this Subscription Agreement (an “Investor
Material Adverse Effect”); (ii) result
in any violation of the provisions of the organizational documents of the Investor; or (iii) result in any violation of any statute
or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over
the Investor or any of its properties that would reasonably be expected to have an Investor Material Adverse Effect.


 




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(d) The
Investor acknowledges and agrees that the book-entry position representing the Shares will bear or reflect, as applicable, a legend substantially
similar to the following (provided that such legend shall be subject to removal in accordance with Section 8(e) hereof):


 


“THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE ISSUER THAT THESE SECURITIES
MAY NOT BE OFFERED, RESOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF BY THE HOLDER ABSENT AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT EXCEPT (I) TO THE ISSUER OR A SUBSIDIARY THEREOF, (II) TO NON-U.S. PERSONS PURSUANT TO OFFERS AND SALES THAT OCCUR
OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (III) PURSUANT TO ANOTHER APPLICABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, AND IN EACH CASE IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF THE STATES
OF THE UNITED STATES AND THE APPLICABLE LAWS OF ANY OTHER JURISDICTION AND, IN THE CASE OF CLAUSE (III), IF SO REQUESTED BY THE ISSUER,
UNLESS THE ISSUER RECEIVES AN OPINION OF COUNSEL FROM THE HOLDER IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER THAT REGISTRATION IS
NOT REQUIRED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS.”


 


(e) The
Investor acknowledges and agrees that the Investor is purchasing the Shares from Issuer. The Investor further acknowledges that there
have been no representations, warranties, covenants and agreements made to the Investor by or on behalf of Issuer, Obagi, Milk, any of
their respective affiliates or any control persons, officers, directors, employees, agents or representatives of any of the foregoing
or any other person or entity, expressly or by implication, other than those representations, warranties, covenants and agreements of
Issuer expressly set forth in Section 5 of this Subscription Agreement.


 


(f) The
Investor acknowledges and agrees that the Investor has received, reviewed and understood the offering materials made available to it in
connection with the Transaction and such information as the Investor deems necessary in order to make an investment decision with respect
to the Shares, including, with respect to Issuer, such information regarding the Transaction and the respective business of Obagi, Milk
and their respective subsidiaries. Without limiting the generality of the foregoing, the Investor acknowledges that he, she or it has
reviewed Issuer’s filings with the SEC. The Investor acknowledges and agrees that the Investor and the Investor’s professional
advisor(s), if any, have had the full opportunity to ask such questions, receive such answers from Obagi and Milk directly and obtain
such information as the Investor and such Investor’s professional advisor(s), if any, have deemed necessary to make an investment
decision with respect to the Shares. The Investor has conducted and completed his, her or its own independent due diligence with respect
to the Transaction. Based on such information as such Investor has deemed appropriate, such Investor has independently made his, her or
its own analysis and decision to enter into the Transaction. Except for the representations, warranties and agreements of Issuer expressly
set forth in the Subscription Agreement, the Investor is relying exclusively on his, her or its own sources of information, investment
analysis and due diligence (including professional advice he, she or it may deem appropriate) with respect to the Transaction, the Shares
and the business, condition (financial and otherwise), management, operations, properties and prospects of Obagi or Milk, respectively,
including but not limited to all business, legal, regulatory, accounting, credit and tax matters.


 




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(g) The
Investor became aware of this offering of the Shares solely by means of direct contact between the Investor and Issuer, Obagi, Milk or
a representative of Issuer, Obagi or Milk, and the Shares were offered to the Investor solely by direct contact between the Investor and
Issuer, Obagi, Milk or a representative of Issuer, Obagi or Milk. The Investor did not become aware of this offering of the Shares, nor
were the Shares offered to the Investor, by any other means. The Investor acknowledges that the Shares (i) were not offered to the
Investor by any form of general solicitation or general advertising and (ii) are not being offered to the Investor in a manner involving
a public offering under, or in a distribution in violation of, the Securities Act, or any state securities laws. The Investor acknowledges
that he, she or it is not relying upon, and has not relied upon, any statement, representation or warranty made by any person, firm or
corporation (including, without limitation, Issuer, Obagi, Milk, any of their respective affiliates or any control persons, officers,
directors, employees, agents or representatives of any of the foregoing), other than the representations and warranties of Issuer contained
in Section 5 of this Subscription Agreement, in making his, her or its investment or decision to invest in Issuer.


 


(h) The
Investor acknowledges that it is aware that there are substantial risks incident to the purchase and ownership of the Shares, including
those set forth in Issuer’s filings with the SEC. The Investor has such knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of an investment in the Shares, and, without limiting the representations and warranties
of the Issuer in Section 5, the Investor has sought such accounting, legal and tax advice as the Investor has considered necessary to
make an informed investment decision. The Investor acknowledges that the Investor shall be responsible for any of the Investor’s
tax liabilities that may arise as a result of the transactions contemplated by this Subscription Agreement, and that none of the Issuer,
Obagi or Milk has provided any tax advice or any other representation or guarantee regarding the tax consequences of the transactions
contemplated by this Subscription Agreement.


 


(i) Alone,
based on his, her or its own independent review or with such professional advice as it deems appropriate, the Investor has adequately
analyzed and fully considered the risks of an investment in the Shares and determined that the Shares (i) are fully consistent with his,
her or its financial needs, objectives and condition, (ii) comply and are fully consistent with all investment policies, guidelines and
other restrictions applicable to it, (iii) have been duly authorized and approved by all necessary action, (iv) do not and will not violate
or constitute a default under its charter, by-laws or other constituent document or under any law, rule, regulation, agreement or other
obligation by which it is bound and (v) are a fit, proper and suitable investment for it. The Investor is able to bear the economic risk
of a total loss of the Investor’s investment in Issuer. The Investor acknowledges specifically that a possibility of total loss
exists.


 


(j) In
making his, her or its decision to purchase the Shares, the Investor has relied solely upon independent investigations made by the Investor
and the representations and warranties in Section 5. Without limiting the generality of the foregoing, the Investor has not relied
on any statements or other information provided by or on behalf of Issuer (other than those representations, warranties, covenants and
agreements of Issuer expressly set forth in Section 5 of this Subscription Agreement), or any of his, her or its respective affiliates
or any control persons, officers, directors, employees, agents or representatives of any of the foregoing concerning Issuer, Obagi, Milk,
the Transaction, the Transaction Agreements, this Subscription Agreement or the transactions contemplated hereby or thereby, the Shares
or the offer and sale of the Shares.


 


(k) The
Investor acknowledges and agrees that no federal or state agency has passed upon or endorsed the merits of the offering of the Shares
or made any findings or determination as to the fairness of this investment.


 


(l) The
Investor, if not a natural person, has been duly formed or incorporated and is validly existing and is in good standing under the laws
of its jurisdiction of formation or incorporation (to the extent such concept exists in such jurisdiction), with power and authority to
enter into, deliver and perform its obligations under this Subscription Agreement.


 




    7


     


    

 


(m) The
execution, delivery and performance by the Investor of this Subscription Agreement are within the powers of the Investor, have been duly
authorized and will not constitute or result in a breach or default under or conflict with any order, ruling or regulation of any court
or other tribunal or of any governmental commission or agency, or any agreement or other undertaking, to which the Investor is a party
or by which the Investor is bound, and, if the Investor is not a natural person, will not violate any provisions of the Investor’s
organizational documents, including, without limitation, its incorporation or formation papers, bylaws, indenture of trust or partnership
or operating agreement, as may be applicable. The signature of the Investor on this Subscription Agreement is genuine, and the signatory,
if the Investor is a natural person, has legal competence and capacity to execute the same or, if the Investor is not a natural person,
the signatory has been duly authorized to execute the same, and, assuming that this Subscription Agreement constitutes the valid and binding
agreement of Issuer, this Subscription Agreement constitutes a legal, valid and binding obligation of the Investor, enforceable against
the Investor in accordance with its terms except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles
of equity, whether considered at law or equity.


 


(n) Neither
the Investor nor, if the Investor is not a natural person, any of its officers, directors, managers, managing members, general partners
or any other person acting in a similar capacity or carrying out a similar function, is, or for the past five (5) years has been, (i)
a person, government, or governmental entity that is the target of economic or financial sanctions requirements, or trade embargoes imposed,
administered, or enforced by the U.S. government (including the U.S. Department of the Treasury’s Office of Foreign Assets Control
or the U.S. Department of State), the United Nations, the European Union or any individual European Union member state, the United Kingdom,
or other governmental authority (collectively, “Sanctions”), to the extent applicable, including (A) a person
listed on any list of sanctioned persons maintained by the U.S. Treasury Department’s Office of Foreign Assets Control, the U.S.
Department of State, the United Nations, the European Union or any individual European Union member state, the United Kingdom, or other
governmental authority, to the extent applicable; (B) a person organized, incorporated, established, located, or resident in Cuba,
Iran, North Korea, Syria, the Crimea region of Ukraine, or any other country or territory embargoed or subject to comprehensive Sanctions;
(C) any person directly or indirectly owned or controlled by any person or persons described in the foregoing clauses (A) and (B); (ii) a
Designated National, as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515; or (iii) a non-U.S. shell bank or providing
banking services indirectly to a non-U.S. shell bank (together with (i) and (ii), a “Prohibited
Investor”). The Investor represents that if it is a financial institution subject to the Bank Secrecy Act (31 U.S.C.
Section 5311 et seq.) (the “BSA”),
as amended by the USA PATRIOT Act of 2001 (the “PATRIOT
Act”), and its implementing regulations (collectively, the “BSA/PATRIOT
Act”), that the Investor maintains policies and procedures reasonably designed to comply with applicable obligations
under the BSA/PATRIOT Act. The Investor also represents that it maintains policies and procedures reasonably designed to ensure compliance
with applicable Sanctions, and that for the past five years, the Investor has been in compliance with applicable Sanctions and the BSA/PATRIOT
Act, as applicable. The Investor further represents that he, she or it has no knowledge or reason to know that the funds held by the Investor
and used to purchase the Shares were illegally derived or obtained, directly or indirectly, from a Prohibited Investor, in violation of
Sanctions or the BSA/PATRIOT Act. The Investor further represents that for the past five years, the Investor has not (1) received written
or other notice of any actual, alleged or apparent violation of applicable Sanctions or the BSA/PATRIOT Act, as applicable, (2) been a
party to or the subject of any pending (or to the Investor’s knowledge, threatened) civil, criminal or administrative actions, suits,
demands, investigations, proceedings, settlements or enforcement actions by or before any governmental authority relating to any actual,
alleged or apparent violations of applicable Sanctions or the BSA/PATRIOT Act, as applicable, or (3) made any voluntary disclosure to
any governmental authority with respect to any actual, alleged or apparent violation of applicable Sanctions of the BSA/PATRIOT Act, as
applicable.


 


(o) If
the Investor is or is acting on behalf of (i) an employee benefit plan that is subject to Title I of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”),
(ii) a plan, an individual retirement account or other arrangement that is subject to Section 4975 of the Internal Revenue Code
of 1986, as amended (the “Code”),
(iii) an entity whose underlying assets are considered to include “plan assets” of any such plan, account or arrangement
described in clauses (i) and (ii) (each, an “ERISA
Plan”), or (iv) an employee benefit plan that is a governmental plan (as defined in Section 3(32) of ERISA),
a church plan (as defined in Section 3(33) of ERISA), a non-U.S. plan (as described in Section 4(b)(4) of ERISA) or other plan
that is not subject to the foregoing clauses (i), (ii) or (iii) but may be subject to provisions under any other federal, state,
local, non-U.S. or other laws or regulations that are similar to such provisions of ERISA or the Code (collectively, “Similar
Laws,” and together with ERISA Plans, “Plans”), the Investor represents and warrants that (A) he, she
or it has not relied on Issuer or any of its affiliates for investment advice or has otherwise acted as the Plan’s fiduciary, with
respect to his, her or its decision to acquire and hold the Shares, and none of the parties to the Transaction is or shall at any time
be the Plan’s fiduciary with respect to any decision in connection with the Investor’s investment in the Shares; and (B) his,
her or its purchase of the Shares will not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975
of the Code, or any applicable Similar Law.


 




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(p) The
Investor has or has commitments to have and, when required to deliver payment to Issuer pursuant to Section 2 above, will
have, sufficient funds to pay the Subscription Amount and consummate the purchase and sale of the Shares pursuant to this Subscription
Agreement.


 


(q) The
Investor acknowledges that any restatement, revision or other modification of the SEC Reports relating to or arising from the SEC Guidance
shall be deemed not material for purposes of this Agreement.


 


7. No
Hedging. The Investor hereby agrees that neither her, she or it, his, her or its controlled affiliates, nor any person or entity acting
on his, her or its or his, her or its controlled affiliates’ behalf or pursuant to any understanding with it, shall execute any
short sales (as such term is defined in Regulation SHO under the Exchange Act, 17 CFR 242.200) or engage in other hedging transactions
of any kind with respect to the Shares during the period from the date of this Subscription Agreement through the Closing (or such earlier
termination of this Subscription Agreement). Nothing in this Section 7 shall prohibit any other investment portfolios of Investor
that have no knowledge of this Subscription Agreement or of the Investor’s participation in this transaction and have not been informed
by the Investor of the Transaction (including Investor’s controlled affiliates and/or affiliates) from entering into any short sales
or engaging in other hedging transactions.


 


8. Registration
Rights.


 


(a) Issuer
agrees that, within sixty (60) calendar days following the Closing Date (such deadline, the “Filing Deadline”), Issuer
will submit to or file with the SEC a registration statement for a shelf registration on Form S-1 or Form S-3 (if Issuer is then eligible
to use a Form S-3 shelf registration) or other appropriate form (the “Registration
Statement”), in each case, covering the resale of the Shares acquired by the Investor pursuant to this Subscription Agreement
which are eligible for registration (determined as of three (3) business days prior to such submission or filing) (the “Registrable
Shares”) and Issuer shall use its commercially reasonable efforts to have the Registration Statement declared effective as soon
as practicable after the filing thereof, but no later than the earlier of (i) the 90th calendar day following the filing date thereof
if the SEC notifies Issuer that he, she or it will “review” the Registration Statement and (ii) the 10th business day
after the date Issuer is notified (orally or in writing, whichever is earlier) by the SEC that the Registration Statement will not be
“reviewed” or will not be subject to further review (such earlier date, the “Effectiveness
Deadline”); provided, however, that if such day falls on a Saturday, Sunday or other day that the SEC is
closed for business, the Effectiveness Deadline shall be extended to the next Business Day on which the SEC is open for business; provided
further, that Issuer’s obligations to include the Registrable Shares in the Registration Statement are contingent upon the Investor
furnishing in writing to Issuer such information regarding the Investor or his, her or its permitted assigns, the securities of Issuer
held by the Investor and the intended method of disposition of the Registrable Shares (which shall be limited to non-underwritten public
offerings) as shall be reasonably requested by Issuer to effect the registration of the Registrable Shares, and the Investor shall execute
such documents in connection with such registration as Issuer may reasonably request that are customary of a selling stockholder in similar
situations, including providing that Issuer shall be entitled to postpone and suspend the effectiveness or use of the Registration Statement,
if applicable, during any customary blackout or similar period or as permitted hereunder; provided that the Investor shall not
in connection with the foregoing be required to execute any lock-up or similar agreement or otherwise be subject to any contractual restriction
on the ability to transfer the Registrable Shares. Notwithstanding the foregoing, if the SEC prevents Issuer from including any or all
of the shares proposed to be registered under a Registration Statement due to limitations on the use of Rule 415 under the Securities
Act for the resale of the Shares pursuant to this Section 8 by the applicable stockholders or otherwise, such Registration Statement shall
register for resale such number of Shares which is equal to the maximum number of Shares as is permitted to be registered by the SEC.
In such event, the number of Shares to be registered for each selling stockholder named in such Registration Statement shall be reduced
pro rata among all such selling stockholders. In the event Issuer amends the Registration Statement in accordance with the foregoing,
Issuer will use its commercially reasonable efforts to promptly file with the SEC one or more registration statements to register the
resale of those Registrable Shares that were not registered on the initial Registration Statement, as so amended. In no event shall the
Investor be identified as a statutory underwriter in the Registration Statement unless requested by the SEC; provided, that if the SEC
requests that the Investor be identified as a statutory underwriter in the Registration Statement, the Investor will have an opportunity
to withdraw the Investor’s Shares from the Registration Statement.


 




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(b) For
as long as the Investor holds Shares, Issuer will use commercially reasonable efforts to file all reports for so long as the condition
in Rule 144(c)(1) (or Rule 144(i)(2), if applicable) under the Securities Act is required to be satisfied, and provide all customary and
reasonable cooperation, necessary to enable the undersigned to resell the Shares pursuant to Rule 144 under the Securities Act (in each
case, when Rule 144 under the Securities Act becomes available to the Investor). Any failure by Issuer to file the Registration Statement
by the Filing Deadline or to effect such Registration Statement by the Effectiveness Deadline shall not otherwise relieve Issuer of its
obligations to file or effect the Registration Statement as set forth above in this Section 8. In the case of the registration,
qualification, exemption or compliance effected by Issuer pursuant to this Subscription Agreement, Issuer shall, upon reasonable request,
respond to the Investor as to the status of such registration, qualification, exemption and compliance. For purposes of this Section 8,
“Registrable Shares” shall include, as of the date of determination, the subscribed Shares and any other equity security issued
or issuable with respect to the subscribed Shares by way of stock split, dividend, distribution, recapitalization, merger, exchange, replacement
or similar event, and “Investor” shall include any affiliate of the Investor to which the rights under this Section 8 have
been duly assigned pursuant to this Subscription Agreement.


 


(c) At
its expense Issuer shall:


 


(i) except
for such times as Issuer is permitted hereunder to suspend the use of the prospectus forming part of a Registration Statement, use its
commercially reasonable efforts to keep such registration, and any qualification, exemption or compliance under state securities laws
which Issuer determines to obtain, continuously effective with respect to the Investor, and to keep the applicable Registration Statement
or any subsequent shelf registration statement free of any material misstatements or omissions, until the earlier of the following: (A) the
date the Investor ceases to hold any Registrable Shares, (B) the date all Registrable Shares held by the Investor may be sold without
restriction under Rule 144 under the Securities Act, including without limitation, any volume and manner of sale restrictions which may
be applicable to affiliates under Rule 144 under the Securities Act and without the requirement for Issuer to be in compliance with the
current public information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) under the Securities Act, and (C) two
(2) years from the date of effectiveness of the Registration Statement. The period of time during which Issuer is required hereunder to
keep a Registration Statement effective is referred to herein as the “Registration
Period”;


 


(ii) during
the Registration Period, advise the Investor, as expeditiously as possible:


 


(1) when
a Registration Statement or any amendment thereto has been filed with the SEC;


 


(2) after
it shall receive notice or obtain knowledge thereof, of the issuance by the SEC of any stop order suspending the effectiveness of any
Registration Statement or the initiation of any proceedings for such purpose;


 


(3) of
the receipt by Issuer of any notification with respect to the suspension of the qualification of the Registrable Shares included therein
for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and


 


(4) subject
to the provisions in this Subscription Agreement, of the occurrence of any event that requires the making of any changes in any Registration
Statement or prospectus so that, as of such date, the statements therein are not misleading and do not omit to state a material fact required
to be stated therein or necessary to make the statements therein (in the case of a prospectus, in light of the circumstances under which
they were made) not misleading.


 


Notwithstanding anything to the contrary set forth
herein, Issuer shall not, when so advising the Investor of the events described in Section 8(c)(ii), provide the Investor with any material,
nonpublic information regarding Issuer other than to the extent that providing notice to the Investor of the occurrence of the events
listed in (1) through (4) above constitutes material, nonpublic information regarding Issuer;


 


(iii) during
the Registration Period, use its commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of
any Registration Statement as soon as reasonably practicable;


 




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(iv) during
the Registration Period, upon the occurrence of any event contemplated in Section 8(c)(ii)(4) above, except for such times
as Issuer is permitted hereunder to suspend, and has suspended, the use of a prospectus forming part of a Registration Statement, Issuer
shall use its commercially reasonable efforts to as soon as reasonably practicable prepare a post-effective amendment to such Registration
Statement or a supplement to the related prospectus, or file any other required document so that, as thereafter delivered to purchasers
of the Registrable Shares included therein, such prospectus will not include any untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;


 


(v) during
the Registration Period, use its commercially reasonable efforts to cause all Registrable Shares to be listed on each securities exchange
or market, if any, on which the shares of Class A common stock issued by Issuer have been listed;


 


(vi) during
the Registration Period, if requested by the Investor, use its commercially reasonable efforts to allow the Investor to review disclosure
regarding the Investor in the Registration Statement; and


 


(vii) during
the Registration Period, otherwise, in good faith, cooperate reasonably with, and take such customary actions as may reasonably be requested
by the Investor, consistent with the terms of this Subscription Agreement, in connection with the registration of the Registrable Shares.


 


(d) Notwithstanding
anything to the contrary in this Subscription Agreement, Issuer shall be entitled to delay the filing or effectiveness of, or suspend
the use of, the Registration Statement if it determines (i) that in order for the Registration Statement not to contain a material misstatement
or omission, (x) an amendment thereto would be needed to include information that would at that time not otherwise be required in a current,
quarterly, or annual report under the Exchange Act, (y) the negotiation or consummation of a transaction by Issuer or its subsidiaries
is pending or an event has occurred, which negotiation, consummation or event Issuer’s board of directors reasonably believes would
require additional disclosure by Issuer in the Registration Statement of material information that Issuer has a bona fide business purpose
for keeping confidential and the non-disclosure of which in the Registration Statement would be expected, in the reasonable determination
of Issuer’s board of directors to cause the Registration Statement to fail to comply with applicable disclosure requirements, or
(z) in the good faith judgment of the majority of the members of Issuer’s board of directors, such filing or effectiveness or use
of such Registration Statement, would be seriously detrimental to Obagi or Milk and the majority of the members of Issuer’s board
of directors concludes as a result that it is essential to defer such filing, or (ii) to delay the filing or initial effectiveness of,
or suspend use of, a Registration Statement and such delay or suspension arises out of, or is a result of, or is related to or is in connection
with the SEC Guidance or other accounting matters, or any related disclosure or other matters (each such circumstance, a “Suspension
Event”); provided, however, that Issuer may not delay or suspend the Registration Statement on more than
three (3) occasions or for more than ninety (90) consecutive calendar days, or more than one hundred twenty (120) total calendar
days in each case during any twelve-month period. Upon receipt of any written notice from Issuer of the happening of any Suspension Event
during the period that the Registration Statement is effective or if as a result of a Suspension Event the Registration Statement or related
prospectus contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary
to make the statements therein (in light of the circumstances under which they were made, in the case of the prospectus) not misleading,
the Investor agrees that (i) he, she or it will immediately discontinue offers and sales of the Registrable Shares under the Registration
Statement (excluding, for the avoidance of doubt, sales conducted pursuant to Rule 144 under the Securities Act) until the Investor receives
copies of a supplemental or amended prospectus (which Issuer agrees to promptly prepare) that corrects the misstatement(s) or omission(s)
referred to above and receives notice that any post-effective amendment has become effective or unless otherwise notified by Issuer that
he, she or it may resume such offers and sales and (ii) he, she or it will maintain the confidentiality of any information included
in such written notice delivered by Issuer unless otherwise required by law or subpoena. If so directed by Issuer, the Investor will deliver
to Issuer or, in the Investor’s sole discretion destroy, all copies of the prospectus covering the Registrable Shares in the Investor’s
possession; provided, however, that this obligation to deliver or destroy all copies of the prospectus covering
the Registrable Shares shall not apply (A) to the extent the Investor is required to retain a copy of such prospectus (1) in
order to comply with applicable legal, regulatory, self-regulatory or professional requirements or (2) in accordance with a bona
fide pre-existing document retention policy or (B) to copies stored electronically on archival servers as a result of automatic data
back-up.


 




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The Investor may deliver written
notice (an “Opt-Out Notice”) to Issuer requesting that the Investor not receive notices from Issuer otherwise required
by this Section 8(d); provided, however, that the Investor may later revoke any such Opt-Out Notice in writing. Following receipt
of an Opt-Out Notice from the Investor (unless subsequently revoked), (i) Issuer shall not deliver any such notices to the Investor and
the Investor shall no longer be entitled to the rights associated with any such notice and (ii) each time prior to the Investor’s
intended use of an effective Registration Statement, the Investor will notify Issuer in writing at least two (2) business days in advance
of such intended use, and if a notice of a Suspension Event was previously delivered (or would have been delivered but for the provisions
of this Section 8(d)) and the related suspension period remains in effect, Issuer will so notify the Investor, within one (1) business
day of the Investor’s notification to Issuer, by delivering to the Investor a copy of such previous notice of Suspension Event,
and thereafter will provide the Investor with the related notice of the conclusion of such Suspension Event promptly following its availability.


 


(e) Indemnification.


 


(i) Issuer
agrees to indemnify, to the extent permitted by law, the Investor (to the extent the Investor is a seller under the Registration Statement),
its directors, officers, partners, managers, members, stockholders, agents, advisors, and each person or entity who controls the Investor
(within the meaning of the Securities Act), to the extent permitted by law, against all losses, claims, damages, liabilities and reasonable
and documented out of pocket expenses (including reasonable and documented outside attorneys’ fees of one (1) law firm) arising
from, in connection with, or relating to any untrue or alleged untrue statement of material fact contained in any Registration Statement,
prospectus included in any Registration Statement (“Prospectus”)
or preliminary Prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein (in the case of a Prospectus, in light of the circumstances under which
they were made) not misleading, except (A) insofar as the same are caused by or contained in any information or affidavit so furnished
in writing to Issuer by or on behalf of the Investor expressly for use therein, (B) in connection with any failure of such person to deliver
or cause to be delivered a prospectus made available by Issuer in a timely manner, (C) as a result of offers or sales effective by or
on behalf of any person by means of a “free writing prospectus” (as defined in Rule 405 under the Securities Act) that was
not authorized by Issuer or (D) in connection with any offers or sales effected by or on behalf of Investor in violation of Section 8(d)
hereof.


 


(ii) In
connection with any Registration Statement in which the Investor is participating, the Investor shall furnish (or cause to be furnished)
to Issuer in writing such information and affidavits as Issuer reasonably requests for use in connection with any such Registration Statement
or Prospectus and, to the extent permitted by law, shall indemnify Issuer, its directors, officers, agents, advisors and each person or
entity who controls Issuer (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses (including,
without limitation, reasonable and documented outside attorneys’ fees) resulting from any untrue or alleged untrue statement of
material fact contained or incorporated by reference in any Registration Statement, Prospectus or preliminary Prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of a Prospectus, in light of the circumstances under which they were made) not misleading, but only
to the extent that such untrue statement or omission is contained in (or not contained in, in the case of an omission) any information
or affidavit so furnished in writing by or on behalf of the Investor expressly for use therein; provided, however, that
the liability of the Investor shall be several and not joint with any other investor and shall be in proportion to and limited to the
net proceeds received by the Investor from the sale of Registrable Shares giving rise to such indemnification obligation.


 




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(iii) Any
person or entity entitled to indemnification herein shall (A) give prompt written notice to the indemnifying party of any claim with respect
to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any person’s or entity’s
right to indemnification hereunder to the extent such failure has not prejudiced the indemnifying party) and (B) unless in such indemnified
party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such
claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party.
If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party
without its consent (but such consent shall not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not
to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one (1) outside counsel for all parties
indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict
of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. No indemnifying
party shall, without the consent of the indemnified party, consent to the entry of any judgment or enter into any settlement which cannot
be settled in all respects by the payment of money (and such money is so paid by the indemnifying party pursuant to the terms of such
settlement) or which settlement includes a statement or admission of fault and culpability on the part of such indemnified party or which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect to such claim or litigation. 


 


(iv) The
indemnification provided for under this Subscription Agreement shall remain in full force and effect regardless of any investigation made
by or on behalf of the indemnified party or any officer, director or controlling person or entity of such indemnified party and shall
survive the transfer of securities. 


 


(v) If
the indemnification provided under this Section 8(e) from the indemnifying party is unavailable or insufficient to hold harmless
an indemnified party in respect of any losses, claims, damages, liabilities and expenses referred to herein, then the indemnifying party,
in lieu of indemnifying the indemnified party, shall contribute to the amount paid or payable by the indemnified party as a result of
such losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying
party and the indemnified party, as well as any other relevant equitable considerations; provided, however, that the liability
of the Investor shall be limited to the net proceeds received by the Investor from the sale of Registrable Shares giving rise to such
indemnification obligation. The relative fault of the indemnifying party and indemnified party shall be determined by reference to, among
other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact, was made by (or not made by, in the case of an omission), or relates to information supplied by (or
not supplied by, in the case of an omission), such indemnifying party or indemnified party, and the indemnifying party’s and indemnified
party’s relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or
payable by a party as a result of the losses or other liabilities referred to above shall be deemed to include, subject to the limitations
set forth in Sections 8(d)(i), (ii) and (iii) above, any legal or other fees, charges or expenses reasonably incurred
by such party in connection with any investigation or proceeding. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to this Section 8(e)(v) from any person or entity
who was not guilty of such fraudulent misrepresentation.


 




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(f) If
the Shares acquired hereunder are either eligible to be sold (i) pursuant to an effective Registration Statement or (ii) without restriction
under, and without Issuer being in compliance with the current public information requirements of Rule 144 under the Securities Act, then
at the Investor’s request, and subject to the Investor’s execution of customary representation letters, Issuer will reasonably
cooperate with Issuer’s transfer agent, such that any remaining restrictive legend set forth on such Shares will be removed in connection
with a sale of such shares.


 


9. Termination.
This Subscription Agreement shall terminate and be void and of no further force and effect, and all rights and obligations of the parties
hereunder shall terminate without any further liability on the part of any party in respect thereof: (x) upon the earliest to occur of
(i) such date and time as both Transaction Agreements are terminated in accordance with their respective terms, (ii)  the mutual
written agreement of each of the parties hereto to terminate this Subscription Agreement, and (iii) the Agreement End Date (as defined
in each of the Transaction Agreements, and, for the avoidance of doubt, giving effect to the permitted extension thereof as set forth
in the Transaction Agreements) if the Closing has not occurred by such date, or (y) if the conditions to Closing set forth in Section
3 of this Subscription Agreement are not satisfied or waived, or are not capable of being satisfied, on or prior to the Closing and,
as a result thereof, the transactions contemplated by this Subscription Agreement will not be or are not consummated at the Closing; provided
that nothing herein will relieve any party from liability for any willful breach hereof prior to the time of termination, and each party
will be entitled to any remedies at law or in equity to recover losses, liabilities or damages arising from any such willful breach. Issuer
shall notify the Investor of the termination of the Transaction Agreements promptly after the termination of such agreements. Upon the
termination of this Subscription Agreement in accordance with this Section 9, any monies paid by the Investor to Issuer in
connection herewith shall be promptly (and in any event within one (1) business day after such termination) returned to the Investor.


 


10. Trust
Account Waiver. The Investor acknowledges that Issuer is a blank check company with the powers and privileges to effect a merger,
asset acquisition, reorganization or similar business combination involving Issuer and one (1) or more businesses or assets. The Investor
further acknowledges that, as described in Issuer’s prospectus relating to its initial public offering dated March 15, 2021, available
at www.sec.gov, substantially all of Issuer’s assets consist of the cash proceeds of Issuer’s initial public offering and
private placement of its securities, and substantially all of those proceeds have been deposited in a trust account (the “Trust
Account”) for the benefit of Issuer, its public shareholders and the underwriter(s) of Issuer’s initial public
offering. Except with respect to interest earned on the funds held in the Trust Account that may be released to Issuer to pay its tax
obligations, if any, the cash in the Trust Account may be disbursed only for the purposes set forth in the February Prospectus. For and
in consideration of Issuer entering into this Subscription Agreement, the receipt and sufficiency of which are hereby acknowledged, the
Investor hereby irrevocably waives any and all right, title and interest, or any claim of any kind he, she or it has or may have in the
future, in or to any monies held in the Trust Account, and agrees not to seek recourse against the Trust Account as a result of, or arising
out of, this Subscription Agreement; provided, that nothing in this Section 10 shall be deemed to limit the Investor’s
right, title, interest or claim to the Trust Account by virtue of the Investor’s record or beneficial ownership of Class A common
stock of Issuer acquired by any means other than pursuant to this Subscription Agreement.


 


11. Miscellaneous.


 


(a) Without
the prior written consent of Issuer, neither this Subscription Agreement nor any rights that may accrue to the Investor hereunder (other
than the Shares acquired hereunder, if any) may be transferred or assigned, other than an assignment to any fund or account managed by
the same investment manager as the Investor or an affiliate thereof, subject to, if such transfer or assignment is prior to the Closing,
such transferee or assignee, as applicable, executing a joinder to this Subscription Agreement or a separate subscription agreement in
substantially the same form as this Subscription Agreement, including with respect to the Subscription Amount and other terms and conditions,
provided, that, in the case of any such transfer or assignment, the initial party to this Subscription Agreement shall remain bound
by his, her or its obligations under this Subscription Agreement in the event that the transferee or assignee, as applicable, does not
comply with his, her or its obligations to consummate the purchase of Shares contemplated hereby. Neither this Subscription Agreement
nor any rights that may accrue to Issuer hereunder or any of Issuer’s obligations may be transferred or assigned other than pursuant
to the Transaction.


 




    14


     


    

 


(b) Issuer
may request from the Investor such additional information as Issuer may deem necessary to evaluate the eligibility of the Investor to
acquire the Shares and in connection with the inclusion of the Shares in the Registration Statement, and the Investor shall provide such
information as may reasonably be requested, to the extent readily available and to the extent consistent with its internal policies and
procedures. The Investor acknowledges that Issuer may file a copy of this Subscription Agreement with the SEC as an exhibit to a current
or periodic report or a registration statement of Issuer.


 


(c) The
Investor acknowledges that Issuer will rely on the acknowledgments, understandings, agreements, covenants, representations and warranties
of the Investor contained in this Subscription Agreement. Prior to the Closing, the Investor agrees to promptly notify Issuer if any of
the acknowledgments, understandings, agreements, representations and warranties of the Investor set forth herein are no longer accurate.
The Investor acknowledges and agrees that each purchase by the Investor of Shares from Issuer will constitute a reaffirmation of the acknowledgments,
understandings, agreements, representations and warranties herein (as modified by any such notice) by the Investor as of the time of such
purchase.


 


(d) Issuer
and the Investor are each entitled to rely upon this Subscription Agreement and each is irrevocably authorized to produce this Subscription
Agreement or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters
covered hereby.


 


(e) This
Subscription Agreement may not be modified, waived or terminated (other than pursuant to the terms of Section 9 above) except
by an instrument in writing, signed by each of the parties hereto and, to the extent required by the applicable Transaction Agreement,
Obagi or Milk, as applicable. No failure or delay of either party in exercising any right or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce
such right or power, or any course of conduct, preclude any other or further exercise thereof or the exercise of any other right or power.
The rights and remedies of the parties and third party beneficiaries hereunder are cumulative and are not exclusive of any rights or remedies
that they would otherwise have hereunder.


 


(f) This
Subscription Agreement (including Schedule A hereto) constitutes the entire agreement, and supersedes all other prior agreements,
understandings, representations and warranties, both written and oral, among the parties, with respect to the subject matter hereof. Except
as set forth in Section 8(e) and Section 11(c) with respect to the persons referenced therein, this Subscription
Agreement shall not confer any rights or remedies upon any person other than the parties hereto, and their respective successor and assigns.


 


(g) Except
as otherwise provided herein, this Subscription Agreement shall be binding upon, and inure to the benefit of the parties hereto and their
heirs, executors, administrators, successors, legal representatives, and permitted assigns, and the agreements, representations, warranties,
covenants and acknowledgments contained herein shall be deemed to be made by, and be binding upon, such heirs, executors, administrators,
successors, legal representatives and permitted assigns.


 


(h) If
any provision of this Subscription Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, illegal or unenforceable,
the validity, legality or enforceability of the remaining provisions of this Subscription Agreement shall not in any way be affected or
impaired thereby and shall continue in full force and effect.


 


(i) Each
party shall pay all of its own costs and expenses incurred in anticipation of, relating to and in connection with the negotiation and
execution of this Subscription Agreement and the transactions contemplated hereby, whether or not such transactions are consummated.


 


(j) This
Subscription Agreement may be executed in one or more counterparts (including by electronic mail or in .pdf or by DocuSign or similar
electronic signature) and by different parties in separate counterparts, with the same effect as if all parties hereto had signed the
same document. All counterparts so executed and delivered shall be construed together and shall constitute one and the same agreement.


 




    15


     


    

 


(k) The
parties hereto acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Subscription
Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent breaches of this Subscription Agreement, without posting a bond or undertaking
and without proof of damages, to enforce specifically the terms and provisions of this Subscription Agreement, this being in addition
to any other remedy to which such party is entitled at law, in equity, in contract, in tort or otherwise.


 


(l) All
of the representations and warranties contained in this Subscription Agreement shall survive the Closing. All of the covenants and agreements
made by each party hereto in this Subscription Agreement shall survive the Closing until the expiration of any statute of limitations
pursuant to applicable law or in accordance with their respective terms, if a shorter period.


 


(m) THE
PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK,
THE SUPREME COURT OF THE STATE OF NEW YORK AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF NEW YORK SOLELY
IN RESPECT OF THE INTERPRETATION AND ENFORCEMENT OF THE PROVISIONS OF THIS SUBSCRIPTION AGREEMENT AND THE DOCUMENTS REFERRED TO IN THIS
SUBSCRIPTION AGREEMENT AND IN RESPECT OF THE TRANSACTIONS CONTEMPLATED HEREBY, AND HEREBY WAIVE, AND AGREE NOT TO ASSERT, AS A DEFENSE
IN ANY ACTION, SUIT OR PROCEEDING FOR INTERPRETATION OR ENFORCEMENT HEREOF OR ANY SUCH DOCUMENT THAT IS NOT SUBJECT THERETO OR THAT SUCH
ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN SAID COURTS OR THAT VENUE THEREOF MAY NOT BE APPROPRIATE OR THAT
THIS SUBSCRIPTION AGREEMENT OR ANY SUCH DOCUMENT MAY NOT BE ENFORCED IN OR BY SUCH COURTS, AND THE PARTIES HERETO IRREVOCABLY AGREE THAT
ALL CLAIMS WITH RESPECT TO SUCH ACTION, SUIT OR PROCEEDING SHALL BE HEARD AND DETERMINED BY SUCH A NEW YORK STATE OR FEDERAL COURT. THE
PARTIES HEREBY CONSENT TO AND GRANT ANY SUCH COURT JURISDICTION OVER THE PERSON OF SUCH PARTIES AND OVER THE SUBJECT MATTER OF SUCH DISPUTE
AND AGREE THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH SUCH ACTION, SUIT OR PROCEEDING IN THE MANNER PROVIDED IN SECTION
14 OF THIS SUBSCRIPTION AGREEMENT OR IN SUCH OTHER MANNER AS MAY BE PERMITTED BY LAW SHALL BE VALID AND SUFFICIENT SERVICE THEREOF. THIS
SUBSCRIPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD OTHERWISE REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER STATE.


 


(n) EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS SUBSCRIPTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES
ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
SUBSCRIPTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS SUBSCRIPTION AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I)
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER; (II) SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THE FOREGOING
WAIVER; (III) SUCH PARTY MAKES THE FOREGOING WAIVER VOLUNTARILY; AND (IV) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS SUBSCRIPTION
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS SECTION 11(n).


 




    16


     


    

 


12. Non-Reliance
and Exculpation. The Investor acknowledges that he, she or it is not relying upon, and has not relied upon, any statement, representation
or warranty made by any person, firm or corporation (including, without limitation, Issuer, Obagi or Milk, any of their respective affiliates
or any control persons, officers, directors, employees, partners, agents or representatives of any of the foregoing), other than the statements,
representations and warranties of Issuer expressly contained in Section 5 of this Subscription Agreement, in making his, her
or its investment or decision to invest in Issuer. The Investor acknowledges and agrees that none of (i) any other investor pursuant
to this Subscription Agreement or any other subscription agreement related to the private placement of the Shares (including the Investor’s
respective affiliates or any control persons, officers, directors, employees, partners, agents or representatives of any of the foregoing),
(ii) any other party to the Transaction Agreements (other than Issuer), or (iii) any affiliates, or any control persons, officers,
directors, employees, partners, agents or representatives of any of Issuer, Obagi, Milk or any other party to the applicable Transaction
Agreements (other than Issuer) shall be liable (including without limitation, for or with respect to any losses, claims, damages, obligations,
penalties, judgments, awards, liabilities, costs, expenses or disbursements incurred by the Investor, Obagi, Milk or any other person
or entity), whether in contract, tort or otherwise, or have any liability or obligation, to the Investor, any person claiming through
such Investor, or to any other investor, pursuant to this Subscription Agreement or any other subscription agreement related to the private
placement of the Shares, the negotiation hereof or thereof or the subject matter hereof or thereof, or the transactions contemplated hereby
or thereby, for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the purchase of the
Shares or the Transaction.


 


13. Press
Releases. Issuer shall, by 9:00 a.m., New York City time, on or before the first business day immediately following the date of this
Subscription Agreement, issue one (1) or more press releases or furnish or file with the SEC a Current Report on Form 8-K (collectively,
the “Disclosure Document”) disclosing, to the extent not previously publicly disclosed, the PIPE Investment, all material
terms of the Transaction and any other material, non-public information that Issuer has provided to the Investor at any time prior to
the filing of the Disclosure Document. From and after the disclosure of the Disclosure Document, to the knowledge of Issuer, the Investor
shall not be in possession of any material, non-public information received from Issuer or any of its officers, directors, employees,
agents or advisors. All press releases or other public communications relating to the transactions contemplated hereby between Issuer
and the Investor, and the method of the release for publication thereof, shall be subject to the prior approval of (i) Issuer, and (ii)
to the extent such press release or public communication references the Investor or his, her or its affiliates or investment advisers
by name, the Investor, which approval shall not be unreasonably withheld or conditioned; provided that neither Issuer nor the Investor
shall be required to obtain consent pursuant to this Section 13 to the extent any proposed release or statement is substantially
equivalent to the information that has previously been made public without breach of the obligation under this Section 13.
The restriction in this Section 13 shall not apply to the extent the public announcement is required by applicable securities
law, any governmental authority or stock exchange rule; provided, that in such an event, the applicable party shall use its commercially
reasonable efforts to consult with the other party in advance as to its form, content and timing.


 




    17


     


    

 


14. Notices.
All notices and other communications among the parties shall be in writing and shall be deemed to have been duly given (i) when delivered
in person, (ii) when delivered after posting in the United States mail having been sent registered or certified mail return receipt requested,
postage prepaid, (iii) when delivered by FedEx or other nationally recognized overnight delivery service, or (iv) when delivered by email
(in each case in this clause (iv), solely if receipt is confirmed, but excluding any automated reply, such as an out-of-office notification),
addressed as follows:




 


If to the Investor, to the address provided
on the Investor’s signature page hereto.


 


If to Issuer, to:


 


Waldencast Acquisition Corp.

10 Bank Street, Suite 560, White Plains, NY 10606


	 	Attention:  	Tassilo Festetics
	 	Email:	tassilo@waldencast.com



 


with copies to (which shall not constitute notice), to:


 


Skadden, Arps, Slate, Meagher & Flom LLP


One Manhattan West

New York, New York 10001


	 	Attention:  	Paul T. Schnell
	 	 	Gregg Noel
	 	 	Michael J. Schwartz
	 	 	Maxim Mayer-Cesiano
	 	Email: 	paul.schnell@skadden.com
	 	 	gregg.noel@skadden.com
	 	 	michael.schwartz@skadden.com 
	 	 	maxim.mayercesiano@skadden.com



 


or to such other address or addresses as the parties
may from time to time designate in writing. Copies delivered solely to outside counsel shall not constitute notice.


 


[SIGNATURE PAGES FOLLOW]


 




    18


     


    

 


IN WITNESS WHEREOF,
the Investor has executed or caused this Subscription Agreement to be executed by its duly authorized representative as of the date set
forth below.


 


	Name of Investor:	 	State/Country of Formation or Domicile:
	 	 	 
	By:	                      	 	 
	Name:	 	 	 
	Title:  	 	 	 
	 	 	 	 
	Name in which Shares are to be registered (if different):	 	Date: ________, 2021
	 	 	 
	Investor’s EIN:	 	 
	 	 	 
	Business Address-Street:	 	Mailing Address-Street (if different):
	 	 	 
	City, State, Zip:	 	City, State, Zip:
	 	 	 
	Attn:	 	 	Attn:	                  
	 	 	 	 	 
	Telephone No.:  	 	Telephone No.:  
	Facsimile No.:  	 	Facsimile No.:  
	 	 	 
	Number of Shares subscribed for:	 	 
	 	 	 
	Aggregate Subscription Amount: $	 	Price Per Share: $10.00



 


You must pay the Subscription
Amount by wire transfer of U. S. dollars in immediately available funds to the account specified by Issuer in the Closing Notice.


 


[Signature Page to Subscription Agreement]


 




     


     


    

 


IN WITNESS WHEREOF, Issuer has accepted this Subscription
Agreement as of the date set forth below.


 


	 	Waldencast Acquisition Corp.  
	 	 	 
	 	By:	 
	 	 	Name:  	           
	 	 	Title:	 


 


Date:        ,
2021


 


[Signature Page to Subscription Agreement]


 




     


     


    

 


SCHEDULE A


 


ELIGIBILITY REPRESENTATIONS
OF THE INVESTOR


 


	A.	QUALIFIED INSTITUTIONAL BUYER STATUS





	 	(Please check the applicable subparagraphs):


 


☐  We
are a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act (a “QIB”)).


 


	B.	ACCREDITED INVESTOR STATUS





	 	(Please check the applicable subparagraphs):


 


		1.	☐  We
are an “accredited investor” (within the meaning of Rule 501(a) under the Securities Act or an entity in which all of the
equity holders are accredited investors within the meaning of Rule 501(a) under the Securities Act), and have marked and initialed the
appropriate box on the following page indicating the provision under which we qualify as an “accredited investor.”


 


		2.	☐  We
are not a natural person.


 


Rule 501(a), under the Securities Act, in
relevant part, states that an “accredited investor” shall mean any person who comes within any of the below listed categories,
or who the issuer reasonably believes comes within any of the below listed categories, at the time of the sale of the securities to that
person. The Investor has indicated, by marking and initialing the appropriate box below, the provision(s) below which apply to the Investor
and under which the Investor accordingly qualifies as an “accredited investor.”


 


☐  Any
bank, registered broker or dealer, insurance company, registered investment company, business development company, or small business investment
company;


 


☐  Any
plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions
for the benefit of its employees, if such plan has total assets in excess of $5,000,000;


 


[Schedule A to Subscription Agreement]


 




     


     


    

 


 


☐  Any
employee benefit plan, within the meaning of the Employee Retirement Income Security Act of 1974, if a bank, insurance company, or registered
investment adviser makes the investment decisions, or if the plan has total assets in excess of $5,000,000;


 


☐  Any
organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, similar business trust, or partnership, not
formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;


 


☐ 
Any “family office,” as defined in rule 202(a)(11)(g)-1 under the Investment Advisers Act of 1940, as amended, with assets
under management in excess of $5,000,000, not formed to acquire the securities offered, and whose prospective investment is directed by
a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the
merits and risks of the prospective investment;


 


☐ 
Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000. For purposes of
calculating a natural person’s net worth: (a) the person’s primary residence shall not be included as an asset; (b) indebtedness
that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of
the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of
sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence,
the amount of such excess shall be included as a liability); and (c) indebtedness that is secured by the person’s primary residence
in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability;


 


☐ 
Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s
spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current
year;


 


☐  Any
trust with assets in excess of $5,000,000, not formed to acquire the securities offered, whose purchase is directed by a sophisticated
person; or


 


☐  Any
entity in which all of the equity owners are accredited investors meeting one or more of the above tests.


 


These pages should
be completed by the Investor


and constitutes
a part of the Subscription Agreement.


 


[Schedule A to Subscription Agreement]