EXHIBIT 10.1


 


EXECUTION COPY


 







 


PREFERRED STOCK PURCHASE AGREEMENT


 







 


among


 


RLJ ACQUISITION INC.


 


and


 


THE HOLDERS OF PREFERRED STOCK OF IMAGE
ENTERTAINMENT, INC.


 


Dated as of April 2, 2012


 



    	 



    	 



    

 


TABLE OF CONTENTS


 


	 	 	 	 	Page
	 	 	 	 	 
	Article I             DEFINITIONS	 	1
	 	 	 	 	 
	SECTION 1.01.	 	Certain Defined Terms	 	1
	 	 	 	 	 
	SECTION 1.02.	 	Definitions	 	3
	 	 	 	 	 
	SECTION 1.03.	 	Interpretation and Rules of Construction	 	3
	 	 	 	 	 
	Article II           PURCHASE AND SALE	 	4
	 	 	 	 	 
	SECTION 2.01.	 	Purchase and Sale of the Shares	 	4
	 	 	 	 	 
	SECTION 2.02.	 	Purchase Price	 	4
	 	 	 	 	 
	SECTION 2.03.	 	Closing	 	4
	 	 	 	 	 
	SECTION 2.04.	 	Closing Deliveries by the Seller	 	4
	 	 	 	 	 
	SECTION 2.05.	 	Closing Deliveries by the Purchaser	 	5
	 	 	 	 	 
	Article III          REPRESENTATIONS AND WARRANTIES OF EACH OF THE SELLERS	 	5
	 	 	 	 	 
	SECTION 3.01.	 	Organization, Authority and Qualification of the Seller	 	5
	 	 	 	 	 
	SECTION 3.02.	 	Ownership of Shares	 	5
	 	 	 	 	 
	SECTION 3.03.	 	No Conflict	 	6
	 	 	 	 	 
	SECTION 3.04.	 	Governmental Consents and Approvals	 	6
	 	 	 	 	 
	SECTION 3.05.	 	Litigation	 	6
	 	 	 	 	 
	SECTION 3.06.	 	Investment and Governmental Compliance Representations	 	6
	 	 	 	 	 
	SECTION 3.07.	 	Brokers	 	7
	 	 	 	 	 
	Article IV          representations
    and warranties of the purchaser	 	7
	 	 	 	 	 
	SECTION 4.01.	 	Organization and Authority of the Purchaser	 	7
	 	 	 	 	 
	SECTION 4.02.	 	No Conflict	 	8
	 	 	 	 	 
	SECTION 4.03.	 	Governmental Consents and Approvals	 	8
	 	 	 	 	 
	SECTION 4.04.	 	Purchaser Trust Fund	 	8
	 	 	 	 	 
	SECTION 4.05.	 	Litigation	 	9
	 	 	 	 	 
	SECTION 4.06.	 	Brokers	 	9
	 	 	 	 	 
	Article V          additional
    agreements	 	9
	 	 	 	 	 
	SECTION 5.01.	 	No Sale or Transfer of Preferred Stock	 	9
	 	 	 	 	 
	SECTION 5.02.	 	Notifications	 	9
	 	 	 	 	 
	SECTION 5.03.	 	Further Action	 	9


 



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	SECTION 5.04.	 	Claims Against the Trust Fund	 	9
	 	 	 	 	 
	SECTION 5.05.	 	Merger Agreement	 	10
	 	 	 	 	 
	SECTION 5.06.	 	Waiver of Dividends; Acknowledgment of Cancellation	 	10
	 	 	 	 	 
	SECTION 5.07.	 	Registration Rights	 	10
	 	 	 	 	 
	SECTION 5.08.	 	Integrated Exchange	 	10
	 	 	 	 	 
	Article VI          CONDITIONS TO CLOSING	 	11
	 	 	 	 	 
	SECTION 6.01.	 	Conditions to Obligations of the Sellers	 	11
	 	 	 	 	 
	SECTION 6.02.	 	Conditions to Obligations of the Purchaser	 	11
	 	 	 	 	 
	Article VII         INDEMNIFICATION	 	12
	 	 	 	 	 
	SECTION 7.01.	 	Survival of Representations and Warranties	 	12
	 	 	 	 	 
	SECTION 7.02.	 	Indemnification by the Sellers	 	12
	 	 	 	 	 
	SECTION 7.03.	 	Indemnification by the Purchaser	 	12
	 	 	 	 	 
	SECTION 7.04.	 	Limits on Indemnification	 	13
	 	 	 	 	 
	Article VIII        TERMINATION, AMENDMENT AND WAIVER	 	13
	 	 	 	 	 
	SECTION 8.01.	 	Termination	 	13
	 	 	 	 	 
	SECTION 8.02.	 	Effect of Termination	 	13
	 	 	 	 	 
	Article IX           GENERAL PROVISIONS	 	14
	 	 	 	 	 
	SECTION 9.01.	 	Expenses	 	14
	 	 	 	 	 
	SECTION 9.02.	 	Notices	 	14
	 	 	 	 	 
	SECTION 9.03.	 	Public Announcements	 	14
	 	 	 	 	 
	SECTION 9.04.	 	Severability	 	15
	 	 	 	 	 
	SECTION 9.05.	 	Entire Agreement	 	15
	 	 	 	 	 
	SECTION 9.06.	 	Assignment	 	15
	 	 	 	 	 
	SECTION 9.07.	 	Amendment	 	15
	 	 	 	 	 
	SECTION 9.08.	 	Waiver	 	15
	 	 	 	 	 
	SECTION 9.09.	 	No Third Party Beneficiaries	 	15
	 	 	 	 	 
	SECTION 9.10.	 	Governing Law	 	16
	 	 	 	 	 
	SECTION 9.11.	 	Waiver of Jury Trial	 	16
	 	 	 	 	 
	SECTION 9.12.	 	Counterparts	 	16


 



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EXHIBITS


 


		Exhibit A	Form of Unsecured Subordinated Promissory Note



 


SCHEDULES


 


		Schedule A	List of Sellers and Shares of Preferred Stock



 


		Schedule B	Determination of Cash and Promissory Note Amounts



 



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PREFERRED STOCK PURCHASE
AGREEMENT (this “Agreement”), dated as of April 2, 2012, among RLJ Acquisition, Inc. a Nevada corporation (the
“Purchaser”), and the holders of Preferred Stock of Image Entertainment, Inc. listed in Schedule A hereto
(each a “Seller” and, collectively, the “Sellers”).


 


WHEREAS, the Sellers
own all of the issued and outstanding shares of Series B Cumulative Preferred Stock, $0.0001 par value per share (the “Preferred
Stock”), of Image Entertainment, Inc., a Delaware corporation (the “Company”), with the number of
shares of Preferred Stock owned by each Seller (the “Shares”) set forth opposite such Seller’s name on
Schedule A; and


 


WHEREAS, each of the
Sellers wishes to sell to the Purchaser, and the Purchaser wishes to purchase from each of the Sellers, all of the Shares, all
upon the terms and subject to the conditions set forth herein.


 


WHEREAS, for federal
income tax purposes, the transactions contemplated by this Agreement, together with the transactions contemplated by the Merger
Agreement, are intended to qualify as an integrated exchange governed by the provisions of Section 351 of the United States
Internal Revenue Code of 1986, as amended (the “Code”).


 


NOW, THEREFORE, in
consideration of the promises and the mutual agreements and covenants hereinafter set forth, and intending to be legally bound,
the Sellers and the Purchaser hereby agree as follows:


 


Article
I


 


DEFINITIONS


 


SECTION
1.01.         Certain Defined Terms. For purposes of this Agreement:


 


“Action”
means any claim, action, suit, arbitration, inquiry, proceeding or investigation by or before any Governmental Authority.


 


“Affiliate”
means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified Person.


 


“Business
Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law to
be closed in The City of New York.


 


“control”
(including the terms “controlled by” and “under common control with”), with respect to the
relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative
or executor, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership
of voting securities, as trustee, personal representative or executor, by contract, credit arrangement or otherwise.


 


“Encumbrance”
means any security interest, pledge, hypothecation, mortgage, lien, violation, charge, lease, license, encumbrance, adverse claim,
reversion, reverter, preferential arrangement, restrictive covenant, condition or restriction of any kind, including any restriction
on the use, voting, transfer, receipt of income or other exercise of any attributes of ownership.


 



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“Government
Lists” means: (a) the two lists maintained by the United States Department of Commerce (Denied Persons and Entities);
(b) the list maintained by the United States Department of Treasury (Specially Designated National and Blocked Persons); (c) the
two lists maintained by the United States Department of State (Terrorist Organizations and Debarred Parties); and (d) any
other lists of terrorists, terrorist organizations or narcotics traffickers maintained pursuant to any of the rules and regulations
of the Office of Foreign Assets Control, the U.S. Department of the Treasury, or by any other Governmental Authority.


 


“Governmental
Authority” means any federal, national, supranational, state, provincial, local or other government, governmental, regulatory
or administrative authority, agency or commission or any court, tribunal, or judicial or arbitral body.


 


“Governmental
Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any
Governmental Authority.


 


“HSR Act”
means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder.


 


“Indemnified
Party” means a Purchaser Indemnified Party or a Seller Indemnified Party, as the case may be.


 


“Indemnifying
Party” means the Sellers pursuant to Section 7.02 and the Purchaser pursuant to Section 7.03, as the case may
be.


 


“Law”
means any federal, national, supranational, state, provincial, local or similar statute, law, ordinance, regulation, rule, code,
order, requirement or rule of law (including common law).


 


“Merger Agreement”
means the Agreement and Plan of Merger, dated as of April 2, 2012, between the Purchaser and the Company.


 


“Person”
means any individual, partnership, firm, corporation, limited liability company, association, trust, unincorporated organization
or other entity, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended.


 


“Promissory
Note” means an unsecured subordinated promissory note of RLJ Entertainment, Inc. substantially in the form of Exhibit A.


 


“Purchase
Price Bank Accounts” means bank accounts in the United States to be designated by each of the Sellers in a written notice
to the Purchaser at least five Business Days before the Closing.


 



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“Purchaser
Trust Agreement” means the Investment Management Trust Agreement between Parent and Continental Stock Transfer &
Trust Company, dated as of February 22, 2011.


 


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


 


SECTION
1.02.         Definitions. The following terms have the meanings set
forth in the Sections set forth below:


 


	Definition	 	Location
	 	 	 
	“Agreement”	 	Preamble
	“Closing”	 	2.03
	"Code"	 	Recitals
	“Company”	 	Recitals
	“Loss”	 	7.02
	“Preferred Stock”	 	Recitals
	“Purchaser”	 	Preamble
	“Purchase Price”	 	2.02
	“Purchaser Indemnified Party”	 	7.02
	“Registered Sellers”	 	5.07
	“Registration Rights Agreement”	 	6.01
	“Seller”	 	Preamble
	“Seller Indemnified Party”	 	7.03
	“Shares”	 	Recitals
	“Trust Fund”	 	4.04


 


SECTION
1.03.         Interpretation and Rules of Construction. In this
Agreement, except to the extent otherwise provided or that the context otherwise requires:


 


(a)          when
a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference is to an Article or Section of,
or an Exhibit or Schedule to, this Agreement unless otherwise indicated;


 


(b)          the
table of contents and headings for this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation
of this Agreement;


 


(c)          whenever
the words “include,” “includes” or “including” are used in this Agreement, they are deemed
to be followed by the words “without limitation”;


 


(d)          the
words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement,
refer to this Agreement as a whole and not to any particular provision of this Agreement;


 


(e)          all
terms defined in this Agreement have the defined meanings when used in any certificate or other document made or delivered pursuant
hereto, unless otherwise defined therein;


 



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(f)          the
definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms;


 


(g)          references
to a Person are also to its successors and permitted assigns; and


 


(h)          the
use of “or” is not intended to be exclusive unless expressly indicated otherwise.


 


Article
II


 


PURCHASE
AND SALE


 


SECTION
2.01.         Purchase and Sale of the Shares. Upon the terms and
subject to the conditions of this Agreement, at the Closing, each Seller shall sell to the Purchaser the Shares set forth opposite
such Seller’s name on Schedule A, and the Purchaser shall purchase all of the Shares from the Sellers. The acquisition by
the Purchaser of the Shares shall also include the acquisition of the right to receive all accrued and unpaid dividends on the
Shares.


 


SECTION
2.02.         Purchase Price. The aggregate purchase price for
all of the Shares shall be $22,600,000 (the “Purchase Price”). The Sellers specified on Schedule A with
an “*” next to their names shall receive an aggregate of $600,000 in cash for their Shares, to be allocated among
such Sellers pro rata based upon the number of Shares sold by each such Seller. The remaining $22,000,000 of the Purchase Price
shall be payable in cash and Promissory Notes to those Sellers listed on Schedule A that do not have an “*”
next to their names, and the amount of cash and aggregate principal amount of Promissory Notes shall be determined in accordance
with Schedule B. Such remaining amount of the Purchase Price shall be allocated among such Sellers pro rata based upon
the number of Shares being sold by each such Seller. Not less than three (3) Business Days prior to Closing, the Purchaser
shall deliver to such Sellers written notice specifying the amount of cash and the principal amount of the Promissory Notes which
shall be payable at Closing and showing the calculation thereof pursuant to Schedule B.


 


SECTION
2.03.         Closing. Upon the terms and subject to the conditions
of this Agreement, the sale and purchase of the Shares contemplated by this Agreement shall take place at a closing (the “Closing”)
to be held at the offices of Greenberg Traurig, LLP, 200 Park Avenue, New York, New York 10166, substantially simultaneously with,
but immediately prior to, the consummation of the transactions contemplated by the Merger Agreement or at such other place or
at such other time or on such other date as the Sellers and the Purchaser may mutually agree upon in writing.


 


SECTION
2.04.         Closing Deliveries by the Seller. At the Closing,
each Seller shall deliver or cause to be delivered to the Purchaser:


 


(a)          stock
certificates evidencing the Shares being sold by such Seller, duly endorsed in blank, or accompanied by stock powers duly executed
in blank and with all required stock transfer tax stamps affixed; and


 


(b)          a
receipt for the Purchase Price received by such Seller.


 



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SECTION
2.05.         Closing Deliveries by the Purchaser. At the Closing,
the Purchaser shall deliver to the Sellers:


 


(a)          the
cash portion of Purchase Price by wire transfer in immediately available funds to the Purchase Price Bank Accounts; and


 


(b)          if
applicable, duly executed Promissory Notes to the order of each Seller receiving Promissory Notes in connection with the transactions
contemplated hereby in principal amount equal to the portion of the Purchase Price payable in Promissory Notes.


 


Article
III


 


REPRESENTATIONS
AND WARRANTIES


OF
EACH OF THE SELLERS


 


Each Seller, as to
itself only, hereby represents and warrants to the Purchaser as follows:


 


SECTION
3.01.         Organization, Authority and Qualification of the Seller.
(a)  To the extent the Seller is a corporation or other organization, the Seller is a corporation or other organization
duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization
and has the requisite corporate or organizational power and authority to enter into this Agreement, to carry out its obligations
hereunder and to consummate the transactions contemplated hereby. To the extent the Seller is a corporation or other organization,
the Seller is duly licensed or qualified to do business and is in good standing in each jurisdiction which the properties owned
or leased by it or the operation of its business makes such licensing or qualification necessary, except to the extent that the
failure to be so licensed, qualified or in good standing would not adversely affect the ability of the Seller to carry out its
obligations under, and to consummate the transactions contemplated by, this Agreement. To the extent the Seller is a corporation
or other organization, the execution and delivery of this Agreement by the Seller, the performance by the Seller of its obligations
hereunder and the consummation by the Seller of the transactions contemplated hereby have been duly authorized by all requisite
action on the part of the Seller.


 


(b)          This
Agreement has been duly executed and delivered by the Seller, and (assuming due authorization, execution and delivery by other
parties hereto) this Agreement constitutes a legal, valid and binding obligation of the Seller, enforceable against the Seller
in accordance with its terms.


 


SECTION
3.02.         Ownership of Shares. The Shares being sold by the
Seller have been validly issued, are fully paid and nonassessable and were not issued in violation of any preemptive rights There
are no options, warrants, convertible securities or other rights, agreements, arrangements or commitments relating to the Shares
or obligating the Seller sell or otherwise Encumber any shares of Preferred Stock. The Shares listed opposite the Seller’s
name on Schedule A constitute all of the shares of Preferred Stock owned, beneficially and of record, by the Seller. The
Seller holds good, valid and marketable title to all of such Shares, free and clear of all Encumbrances.


 



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SECTION
3.03.         No Conflict. The execution, delivery and performance
of this Agreement by the Seller do not and will not (a) to the extent the Seller is a corporation or other organization,
violate, conflict with or result in the breach of the certificate of incorporation or bylaws (or similar organizational documents)
of the Seller, (b) conflict with or violate any Law or Governmental Order applicable to the Seller or (c) conflict with,
result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become
a default) under, require any consent under, or give to others any rights of termination, acceleration or cancellation of, any
note, bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement
to which the Seller is a party, except, in the case of clauses (b) and (c), as would not materially and adversely affect
the ability of the Seller to carry out its obligations under, and to consummate the transactions contemplated by, this Agreement.


 


SECTION
3.04.         Governmental Consents and Approvals. The execution,
delivery and performance of this Agreement by the Seller do not and will not require any consent, approval, authorization or other
order of, action by, filing with or notification to, any Governmental Authority except where failure to obtain such consent,
approval, authorization or action, or to make such filing or notification, would not prevent or materially delay the consummation
by the Seller of the transactions contemplated by this Agreement.


 


SECTION
3.05.         Litigation. As of the date hereof there is no Action
by or against the Seller pending, or to the knowledge of the Seller threatened, that would affect the legality, validity or enforceability
of this Agreement or the consummation of the transactions contemplated hereby.


 


SECTION
3.06.        Investment and Governmental Compliance Representations.
If the Seller is receiving Promissory Notes from the Company in connection with the transactions contemplated by this Agreement:


 


(a)          The
Seller is acquiring its Promissory Note for the Seller’s own account for investment purposes only and not with a view to
or for the resale, distribution, subdivision or fractionalization thereof. The Seller understands that (i) the Promissory
Notes have not been registered under the Securities Act by reason of a specific exemption from the registration provisions of the
Securities Act which depends upon, among other things, the bona fide nature of the investment intent expressed herein and (ii) the
Promissory Notes will bear a legend to such effect.


 


(b)          By
reason of its business or financial experience, the Seller has the capacity to protect its own interest in connection with the
transactions contemplated hereby, is able to evaluate and bear the risks of an investment in the Purchaser, and time can afford
a complete loss of such investment.


 


(c)          The
Seller is aware of the Purchaser’s business affairs and financial condition and has acquired sufficient information about
the Purchaser and the transactions contemplated by the Merger Agreement to reach an informed and knowledgeable decision to acquire
an interest in the Purchaser. During the negotiation of the transactions contemplated hereby, the Seller and its representatives
have been afforded full and free access to corporate books, financial statements, records, contracts, documents, and other information
concerning the Purchaser and the transactions contemplated by the Merger Agreement, have been afforded an opportunity to ask such
questions of the Purchaser’s officers and employees concerning the Company’s business, operations, financial condition,
assets, liabilities and other relevant matters and they have deemed necessary or desirable, and have been given all such information
as has been requested, in order to evaluate the merits and risks of the investment contemplated herein.


 



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(d)          The
Seller acknowledges that the Promissory Notes have not been registered under the Securities Act, or any state securities laws,
inasmuch as they are being acquired in a transaction not involving a public offering and, under such laws and subject to the transfer
restrictions set forth herein, may not be resold or transferred by the Seller without appropriate registration or the availability
of an exemption from such requirements. In this connection, the Seller represents that it is familiar with Securities and Exchange
Commission Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Securities
Act.


 


(e)          The
Seller is subject to the Laws of the United States of America and is in full compliance with all Laws relating to bribery, corruption,
fraud, money laundering, the Foreign Corrupt Practices Act and the Patriot Act.


 


(f)          No
individual who owns, controls, or has the power to vote more than five percent (5%) of the equity interests of the Seller,
or otherwise controls or has the power to control the Seller appears on any Government Lists, (ii) none of the Seller’s
officers, directors, partners or managers appears on any Government Lists, and (iii) the Seller does not transact business
on behalf of, or for the direct or indirect benefit of, any Person named on any Government Lists.


 


(g)          No
Affiliate of the Seller is named on any Government Lists.


 


(h)          The
Seller is an “Accredited Investor” as such term is defined in Regulation D promulgated under the Securities Act.


 


SECTION
3.07.         Brokers. No broker, finder or investment banker is
entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this
Agreement based upon arrangements made by or on behalf of the Seller.


 


Article
IV


 


representations
and warranties


of
the purchaser


 


The Purchaser hereby
represents and warrants to the Sellers as follows:


 


SECTION
4.01.         Organization and Authority of the Purchaser. The
Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation
and has all necessary corporate power and authority to enter into this Agreement, to carry out its obligations hereunder and to
consummate the transactions contemplated hereby. The Purchaser is duly licensed or qualified to do business and is in good standing
in each jurisdiction which the properties owned or leased by it or the operation of its business makes such licensing or qualification
necessary, except to the extent that the failure to be so licensed, qualified or in good standing would not adversely affect the
ability of Purchaser to carry out its obligations under, and to consummate the transactions contemplated by, this Agreement. The
execution and delivery by the Purchaser of this Agreement, the performance by the Purchaser of its obligations hereunder and the
consummation by the Purchaser of the transactions contemplated hereby have been duly authorized by all requisite corporate action
on the part of the Purchaser. This Agreement has been duly executed and delivered by the Purchaser, and (assuming due authorization,
execution and delivery by the Sellers) this Agreement constitutes a legal, valid and binding obligation of the Purchaser, enforceable
against the Purchaser in accordance with its terms.


 



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SECTION
4.02.         No Conflict. Assuming compliance with the premerger
notification and waiting period requirements of the HSR Act, if any, the execution, delivery and performance by the Purchaser
of this Agreement do not and will not (a) violate, conflict with or result in the breach of any provision of the certificate
of incorporation or bylaws of the Purchaser, (b) conflict with or violate any Law or Governmental Order applicable to the
Purchaser or its respective assets, properties or businesses or (c) conflict with, result in any breach of, constitute a
default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent
under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, any note,
bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement
to which the Purchaser is a party, except, in the case of clauses (b) and (c), as would not materially and adversely affect
the ability of the Purchaser to carry out its obligations under, and to consummate the transactions contemplated by, this Agreement.


 


SECTION
4.03.         Governmental Consents and Approvals. The execution,
delivery and performance by the Purchaser of this Agreement do not and will not require any consent, approval, authorization or
other order of, action by, filing with, or notification to, any Governmental Authority, except (a) the premerger notification
and waiting period requirements of the HSR Act or (b) where failure to obtain such consent, approval, authorization or action,
or to make such filing or notification, would not prevent or materially delay the consummation by the Purchaser of the transactions
contemplated by this Agreement.


 


SECTION
4.04.         Purchaser Trust Fund. Provided the conditions to
the obligation to consummate the transactions contemplated by this Agreement and by the Merger Agreement and the related transactions
contemplated hereby and thereby are satisfied or waived as provided in this Agreement or in the Merger Agreement, the Purchaser
Trust Agreement provides that the trust monies shall be released to and available for use by the Purchaser effective as of the
Image Entertainment Effective Time (as defined in the Merger Agreement). As of the date hereof, the Purchaser has no knowledge
of any claim, circumstance or event that is reasonably likely to restrict or otherwise impair the release of such monies other
than: (a) claims of the Purchaser’s underwriters with respect to its initial public offering for deferred compensation;
(b) claims for accounting fees related to the transactions contemplated by this Agreement and the Merger Agreement; (c) claims
of stockholders of the Purchaser who properly effect redemption of their shares for a portion of the monies held in the trust
account (the “Trust Fund”) established pursuant to the Purchaser Trust Agreement; and (d) claims for advisory
and related fees by mergers and acquisition advisors currently retained by the Purchaser or who may be retained by the Purchaser
prior to the stockholders meeting of the Purchaser called to approve the transactions contemplated by the Merger Agreement.


 



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SECTION
4.05.         Litigation. As of the date hereof, no Action by or
against the Purchaser is pending, or to the knowledge of the Purchaser threatened, which would affect the legality, validity or
enforceability of this Agreement or the consummation of the transactions contemplated hereby or thereby.


 


SECTION
4.06.         Brokers. Except for Lazard Middle Market LLC, no
broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with
the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Purchaser.


 


Article
V


 


additional
agreements


 


SECTION
5.01.         No Sale or Transfer of Preferred Stock. Each Seller
covenants and agrees that, between the date hereof and the Closing, such Seller shall not sell, assign, transfer, convey, dispose
of or otherwise subject to an Encumbrance any Shares. In addition, each Seller covenants and agrees that, except with the prior
written consent of the Purchaser, such Seller shall not purchase or otherwise acquire any shares of Preferred Stock.


 


SECTION
5.02.         Notifications. Until the Closing, each party hereto
shall promptly notify the other party in writing of any fact, change, condition, circumstance or occurrence or nonoccurrence of
any event of which it is aware that will or is reasonably likely to result in any of the conditions set forth in Article VI
of this Agreement becoming incapable of being satisfied; provided, however, that the delivery of any notice pursuant to this Section 5.02
shall not limit or otherwise affect the remedies available hereunder to the party receiving such notice.


 


SECTION
5.03.         Further Action. The parties hereto shall use all
reasonable efforts to take, or cause to be taken, all appropriate action, to do or cause to be done all things necessary, proper
or advisable under applicable Law, and to execute and deliver such documents and other papers, as may be required to carry out
the provisions of this Agreement and consummate and make effective the transactions contemplated by this Agreement.


 


SECTION
5.04.         Claims Against the Trust Fund. (a) Each Seller understands
that, except for a portion of the interest earned on the amounts held in the Trust Fund, the Purchaser may disburse monies from
the Trust Fund only: (i) to its public stockholders who exercise their redemption rights or in the event of the dissolution
and liquidation of the Purchaser, (ii) to the Purchaser (less the Purchaser’s deferred underwriting compensation only)
after the Purchaser consummates a business combination (as described in the Prospectus of the Purchaser) or (iii) as consideration
to the sellers of a target business with which the Purchaser completes a business combination.


 



    	9



    	 



    

 


(b)          Each
Seller agrees that, notwithstanding any other provision contained in this Agreement, such Seller does not now have, and shall not
at any time prior to the Closing have, any claim to, or make any claim against, the Trust Fund, regardless of whether such claim
arises as a result of, in connection with or relating in any way to, the business relationship between the Seller on the one hand,
and the Purchaser on the other hand, this Agreement, or any other agreement or any other matter, and regardless of whether such
claim arises based on contract, tort, equity or any other theory of legal liability (any and all such claims are collectively referred
to in this Section 5.04(b) as the “Claims”). Notwithstanding any other provision contained in this Agreement,
each Seller hereby irrevocably waives any Claim it may have, now or in the future (in each case, however, prior to the consummation
of a business combination), and will not seek recourse against the Trust Fund for any reason whatsoever in respect thereof. In
the event that such Seller commences any action or proceeding based upon, in connection with, relating to or arising out of any
matter relating to the Purchaser, which proceeding seeks, in whole or in part, relief against the Trust Fund or the public stockholders
of the Purchaser, whether in the form of money damages or injunctive relief, the Purchaser shall be entitled to recover from such
Seller the associated legal fees and costs in connection with any such action, in the event the Purchaser prevails in such action
or proceeding.


 


SECTION
5.05.         Merger Agreement. The Purchaser shall not waive Section 7.02(l)
of the Merger Agreement without the prior written consent of the Sellers holding at least seventy percent (70%) of the issued
and outstanding shares of Preferred Stock, which consent shall not be unreasonably withheld, conditioned or delayed.


 


SECTION
5.06.         Waiver of Dividends; Acknowledgment of Cancellation.
Each Seller acknowledges and agrees that any accrued unpaid dividends on the issued and outstanding shares of the Preferred Stock,
whether or not declared, as of the Closing are hereby waived, and that no such dividends shall be paid.  Each of Purchaser
and each Seller further acknowledges and agrees that upon completion of the transactions contemplated by this Agreement, the Preferred
Stock will be cancelled and cease to be outstanding. 


 


SECTION
5.07.         Registration Rights.
Purchaser and the Sellers hereby acknowledge and agree that the Sellers identified as Registered Sellers on Schedule A hereto (the
“Registered Sellers”) shall be entitled to demand registration on Form S-3 of the Holdings Common Stock received by
such Sellers in the Image Merger (as such terms are defined in the Merger Agreement). Such registration rights shall be available
to the Registered Sellers no more than two times commencing nine months after the Closing and otherwise pursuant to the terms of
a registration rights agreement to be entered into by Purchaser and the Registered Sellers at Closing; provided that Holdings (as
such term is defined in the Merger Agreement) shall be obligated to file a Form S-3 registration statement with the Securities
and Exchange Commission in connection with a demand by the Registered Sellers only if Holdings shall be eligible to use Form S-3
at such time.


 


SECTION
5.08.         Integrated Exchange.
(a)  The transactions contemplated by this Agreement, together with the transactions contemplated by the Merger Agreement,
are intended to be treated as an integrated exchange governed by the provisions of Section 351 of the Code. From and after
the date of this Agreement and until the later of the Image Effective Time or the RLJ Effective Time (each as defined in the Merger
Agreement), each party hereto shall use its reasonable efforts to cause the transactions contemplated by this Agreement, together
with the transactions contemplated by the Merger Agreement, to qualify, and will not knowingly take any action, cause any action
to be taken, fail to take any action or cause any action to fail to be taken which action or failure to act could prevent the transactions
contemplated by this Agreement, together with the transactions contemplated by the Merger Agreement, from qualifying, as an integrated
exchange governed by the provisions of Section 351 of the Code.


 



    	10



    	 



    

 


Article
VI


 


CONDITIONS
TO CLOSING


 


SECTION
6.01.         Conditions to Obligations of the Sellers. The obligations
of each of the Sellers to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or written
waiver, at or prior to the Closing, of each of the following conditions:


 


(a)          Representations,
Warranties and Covenants. (i) the representations and warranties of the Purchaser contained in this Agreement (A) that
are not qualified as to “materiality” shall be true and correct in all material respects as of the Closing and (B) that
are qualified as to “materiality” shall be true and correct as of the Closing, except to the extent such representations
and warranties are made as of another date, in which case such representations and warranties shall be true and correct in all
material respects or true and correct, as the case may be, as of such other date, and (ii) the covenants and agreements contained
in this Agreement to be complied with by the Purchaser on or before the Closing shall have been complied with in all material respects;
and


 


(b)          No
Order. No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Law or Governmental Order
(whether temporary, preliminary or permanent) that has the effect of making the transactions contemplated by this Agreement illegal
or otherwise restraining or prohibiting the consummation of such transactions.


 


(c)          Registration
Rights Agreement. The Registered Sellers shall have received a registration rights agreement in a form mutually agreed to by
the Registered Sellers and Purchaser (the “Registration Rights Agreement”), duly executed by Purchaser.


 


SECTION
6.02.         Conditions to Obligations of the Purchaser. The obligations
of the Purchaser to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or written
waiver, at or prior to the Closing, of each of the following conditions:


 


(a)          Representations,
Warranties and Covenants. (i) The representations and warranties of each of the Sellers contained in this Agreement (A) that
are not qualified as to “materiality” shall be true and correct in all material respects as of the Closing and (B) that
are qualified as to “materiality” shall be true and correct as of the Closing, other than such representations and
warranties that are made as of another date, in which case such representations and warranties shall be true and correct in all
material respects or true and correct, as the case may be, as of such other date, and (ii) the covenants and agreements contained
in this Agreement to be complied with by the Seller at or before the Closing shall have been complied with in all material respects;


 



    	11



    	 



    

 


(b)          Governmental
Approvals. Any waiting period (and any extension thereof) under the HSR Act applicable to the purchase of the Shares contemplated
by this Agreement shall have expired or shall have been terminated;


 


(c)          No
Order. No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Law or Governmental Order
(whether temporary, preliminary or permanent) that has the effect of making the transactions contemplated by this Agreement or
the Ancillary Agreements illegal or otherwise restraining or prohibiting the consummation of such transactions; and


 


(d)          Merger
Agreement. The Merger Agreement shall not have been terminated and all conditions to the consummation of the transactions contemplated
by the Merger Agreement (other than the consummation of the transactions contemplated by this Agreement) shall have been satisfied
(or to the extent legally permissible, waived) in accordance with the Merger Agreement, all on terms reasonably satisfactory to
the Purchaser.


 


(e)          Registration
Rights Agreement. Purchaser shall have received the Registration Rights Agreement, duly executed by each Registered Seller.


 


Article
VII


 


INDEMNIFICATION


 


SECTION
7.01.         Survival of Representations and Warranties. The representations
and warranties of the parties hereto contained in this Agreement shall survive the Closing indefinitely. All covenants and agreements
contained herein shall remain in full force and effect for a period of 12 months following the Closing, except for those covenants
and agreements that by their terms are to be performed in whole or in part after the Closing, which shall remain in full force
and effect for a period of 12 months following the date by which such covenant or agreement is required to be performed; provided,
however, that any claim made with reasonable specificity by the party seeking to be indemnified within the time periods
set forth in this Section 7.01 shall survive until such claim is finally and fully resolved.


 


SECTION
7.02.         Indemnification by the Sellers. The Purchaser and
its Affiliates, officers, directors, employees, agents, successors and assigns (each, a “Purchaser Indemnified Party”)
shall be indemnified and held harmless by each Seller (severally with respect to such Seller) for and against all losses, damages,
claims, costs and expenses, interest, awards, judgments and penalties (including reasonable attorneys’ and consultants’
fees and expenses) actually suffered or incurred by them (hereinafter, a “Loss”), arising out of or resulting
from: (i) the breach of any representation or warranty made by such Seller contained in this Agreement or (ii) the breach
of any covenant or agreement by such Seller contained in this Agreement.


 


SECTION
7.03.         Indemnification by the Purchaser. The Sellers and
their Affiliates, officers, directors, employees, agents, successors and assigns (each, a “Seller Indemnified Party”)
shall be indemnified and held harmless by the Purchaser for and against any and all Losses, arising out of or resulting from:
(i) the breach of any representation or warranty made by the Purchaser contained in this Agreement or (ii) the breach
of any covenant or agreement by the Purchaser contained in this Agreement.


 



    	12



    	 



    

 


SECTION
7.04.         Limits on Indemnification. Notwithstanding anything
to the contrary contained in this Agreement, no Seller Indemnifying Party shall be liable for any claim for indemnification pursuant
to Section 7.02 for an amount in excess of the Purchase Price received by such Seller and no Purchaser Indemnifying Party
shall be liable to any Seller for any claim for indemnification pursuant to Section 7.03 for amount in excess of the Purchase
Price paid to such Seller.


 


Article
VIII


 


TERMINATION,
AMENDMENT AND WAIVER


 


SECTION
8.01.         Termination. This Agreement may be terminated at
any time prior to the Closing:


 


(a)          by
either the Sellers or the Purchaser if the Closing shall not have occurred by November 22, 2012;


 


(b)          by
either the Purchaser or the Sellers in the event that any Governmental Order restraining, enjoining or otherwise prohibiting the
transactions contemplated by this Agreement shall have become final and nonappealable;


 


(c)          by
the Purchaser or Sellers if the Merger Agreement shall have been terminated for any reason;


 


(d)          by
the Sellers if the Purchaser shall have breached any of its representations, warranties, covenants or agreements contained in this
Agreement which would give rise to the failure of a condition set forth in Article VI, which breach cannot be or has not been
cured within 30 days after the giving of written notice by the Seller to the Purchaser specifying such breach;


 


(e)          by
the Purchaser if any of the Sellers shall have breached any of its representations, warranties, covenants or agreements contained
in this Agreement which would give rise to the failure of a condition set forth in Article VI, which breach cannot be or has
not been cured within 30 days after the giving of written notice by the Purchaser to the Seller specifying such breach; or


 


(f)          by
the mutual written consent of the Sellers and the Purchaser.


 


SECTION
8.02.         Effect of Termination. In the event of termination
of this Agreement as provided in Section 8.01, this Agreement shall forthwith become void and there shall be no liability
on the part of either party hereto except (a) as set forth in Article IX and (b) that nothing herein shall relieve
either party from liability for any breach of this Agreement occurring prior to such termination.


 



    	13



    	 



    

 


Article
IX


 


GENERAL
PROVISIONS


 


SECTION
9.01.         Expenses. Except as otherwise specified in this Agreement,
all costs and expenses, including, fees and disbursements of counsel, financial advisors and accountants, incurred in connection
with this Agreement and the transactions contemplated by this Agreement shall be borne by the party incurring such costs and expenses,
whether or not the Closing shall have occurred.


 


SECTION
9.02.         Notices. All notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or
made upon receipt) by delivery in person, by an internationally recognized overnight courier service, by facsimile or registered
or certified mail (postage prepaid, return receipt requested) to the respective parties hereto at the following addresses (or
at such other address for a party as shall be specified in a notice given in accordance with this Section 9.02):


 


(a)          if
to the Purchaser:


 


RLJ Acquisition, Inc.


3 Bethesda Metro Center, Suite 1000


Bethesda, Maryland 20814


Telecopy: (301) 280-7747


Telephone: (301) 280-7737


Attention: H. Van Sinclair


 


with a copy to:


 


Greenberg Traurig, LLP


200 Park Avenue


New York, NY 10166


Telecopy: (212) 801-6400


Telephone: (212) 801-9200 


Attention: Alan I. Annex, Esq.


 


(b)          if
to a Seller, at the addressed specified for notices under such Seller’s signature block.


 


SECTION
9.03.         Public Announcements. No Seller shall make, or cause
to be made, any press release or public announcement in respect of this Agreement or the transactions contemplated by this Agreement
or otherwise communicate with any news media without the prior written consent of the Purchaser unless otherwise required by Law.
The Purchaser shall be entitled to make such press releases, public announcements or other communications regarding this Agreement
and the transactions contemplated hereby in coordination with all public announcements, press releases or other communications
made in connection with the Merger Agreement and the transactions contemplated thereby.


 



    	14



    	 



    

 


SECTION
9.04.         Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other conditions and provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that
the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.


 


SECTION
9.05.         Entire Agreement. This Agreement constitutes the
entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and undertakings,
both written and oral, among the parties, or any of them, with respect to the subject matter hereof.


 


SECTION
9.06.         Assignment. This Agreement may not be assigned by
operation of law or otherwise by any Seller without the express written of the Purchaser or by the Purchaser without the express
written consent of the Sellers, except that the Purchaser may assign all or any of its rights and obligations to an Affiliate
of the Purchaser; provided, that no such assignment shall relieve the Purchaser of its obligations hereunder if such assignee
does not perform such obligations.


 


SECTION
9.07.         Amendment. This Agreement may not be amended or modified
except (a) by an instrument in writing signed by, or on behalf of, the Sellers and the Purchaser or (b) by a waiver
in accordance with Section 9.08.


 


SECTION
9.08.         Waiver. The Sellers, on the one hand, and the Purchaser,
on the other may (a) extend the time for the performance of any of the obligations or other acts of the other party, (b) waive
any inaccuracies in the representations and warranties of the other party contained herein or in any document delivered by the
other party pursuant hereto or (c) waive compliance with any of the agreements of the other party or conditions to such party’s
obligations contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed
by the party to be bound thereby. Any waiver of any term or condition shall not be construed as a waiver of any subsequent breach
or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this Agreement. The failure
of either party hereto to assert any of its rights hereunder shall not constitute a waiver of any of such rights.


 


SECTION
9.09.         No Third Party Beneficiaries. This Agreement shall
be binding upon and inure solely to the benefit of the parties hereto and their respective successors and permitted assigns and
nothing herein, express or implied (including the provisions of Article VII relating to indemnified parties), is intended
to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, including any
rights of employment for any specified period, under or by reason of this Agreement.


 



    	15



    	 



    

 


SECTION
9.10.         Governing Law. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York. All Actions arising out of or relating to this Agreement
shall be heard and determined exclusively in any New York federal court sitting in the Borough of Manhattan of The City of New
York; provided, however, that if such federal court does not have jurisdiction over such Action, such Action shall be heard and
determined exclusively in any New York state court sitting in the Borough of Manhattan of The City of New York. Consistent with
the preceding sentence, the parties hereto hereby (a) submit to the exclusive jurisdiction of any federal or state court
sitting in the Borough of Manhattan of The City of New York for the purpose of any Action arising out of or relating to this Agreement
brought by any party hereto and (b) irrevocably waive, and agree not to assert by way of motion, defense, or otherwise, in
any such Action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property
is exempt or immune from attachment or execution, that the Action is brought in an inconvenient forum, that the venue of the Action
is improper, or that this Agreement or the transactions contemplated by this Agreement may not be enforced in or by any of the
above-named courts.


 


SECTION
9.11.         Waiver of Jury Trial. Each of the parties hereto
hereby waives to the fullest extent permitted by applicable law any right it may have to a trial by jury with respect to any litigation
directly or indirectly arising out of, under or in connection with this Agreement or the transactions contemplated by this Agreement.
Each of the parties hereto hereby (a) certifies that no representative, agent or attorney of the other party has represented,
expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and
(b) acknowledges that it has been induced to enter into this Agreement and the transactions contemplated by this Agreement,
as applicable, by, among other things, the mutual waivers and certifications in this Section 9.11.


 


SECTION
9.12.         Counterparts. This Agreement may be executed and
delivered (including by facsimile or portable document format (pdf) transmission) in one or more counterparts, and by the different
parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken
together shall constitute one and the same agreement.


 


[Signature Pages Follow]


 



    	16



    	 



    

 


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


 


	 	PURCHASER:
	 	 
	 	RLJ ACQUISITION, INC.
	 	 
	 	By:	/s/ H. Van Sinclair
	 	 	Name:  	H. Van Sinclair
	 	 	Title:	CEO


 


[Signatures continue on next page]


 


[Signature Page to Preferred Stock Purchase
Agreement]


 



    	 



    	 



    

 


	 	SELLERS:
	 	 
	 	JH PARTNERS EVERGREEN FUND, L.P.
	 	 
	 	By:	JH Evergreen Management, LLC
	 	Its:	General Partner
	 	 	 
	 	By:	/s/ R. Todd Forrest
	 	 	Name:  R. Todd Forrest
	 	 	Title:  Chief Financial Officer
	 	 
	 	c/o JH Partners, LLC
	 	451 Jackson Street
	 	San Francisco, CA 94111
	 	Telephone:  (415) 364-0300
	 	Facsimile:  (415) 364-0333
	 	 
	 	JH INVESTMENT PARTNERS III, L.P.
	 	 
	 	By:	JH Evergreen Management, LLC
	 	Its:	General Partner
	 	 	 
	 	By:	/s/ R. Todd Forrest
	 	 	Name:  R. Todd Forrest
	 	 	Title:  Chief Financial Officer
	 	 
	 	c/o JH Partners, LLC
	 	451 Jackson Street
	 	San Francisco, CA 94111
	 	Telephone:  (415) 364-0300
	 	Facsimile:  (415) 364-0333


 


[Signature Page to Preferred Stock Purchase
Agreement]


 



    	 



    	 



    

 


	 	JH INVESTMENT PARTNERS GP FUND III, LLC
	 	 
	 	By:	JH Evergreen Management, LLC
	 	Its:	Manager
	 	 	 
	 	By:	/s/ R. Todd Forrest
	 	 	Name:  R. Todd Forrest
	 	 	Title:  Chief Financial Officer
	 	 
	 	c/o JH Partners, LLC
	 	451 Jackson Street
	 	San Francisco, CA 94111
	 	Telephone:  (415) 364-0300
	 	Facsimile:  (415) 364-0333
	 	 
	 	JOHN AVAGLIANO
	 	 
	 	/s/ John Avagliano
	 	John Avagliano
	 	 
	 	Address:
	 	656 Daniel Court
	 	Wyckoff, NJ 07481
	 	Facsimile:______________
	 	 
	 	RAYMOND GAGNON
	 	 
	 	/s/ Raymond Gagnon
	 	Raymond Gagnon
	 	 
	 	Address:
	 	27 Gilmore Road
	 	North Easton, MA 02356
	 	Facsimile:______________


 


[Signature Page to Preferred Stock Purchase
Agreement]


 



    	 



    	 



    

 


	 	PRODUCERS SALES ORGANIZATION
	 	 
	 	By:	/s/ John W. Hyde
	 	 	Name:  John W. Hyde
	 	 	Title:  President
	 	 
	 	Address:
	 	46216 Dry Creek Drive
	 	Badger, CA 93603
	 	Facsimile:______________
	 	 
	 	DAVID B. BORIS
	 	 
	 	/s/ David B. Boris
	 	David B. Boris
	 	 
	 	Address:
	 	90 East End Avenue
	 	New York, NJ 10028
	 	Facsimile:______________
	 	 
	 	R. MICHAEL POWELL
	 	 
	 	/s/ R. Michael Powell
	 	R. Michael Powell
	 	 
	 	Address:
	 	29 Guinea Road
	 	Greenwich, CT 06830
	 	Facsimile:______________


 


[Signature Page to Preferred Stock Purchase
Agreement]


 



    	 



    	 



    

 


	 	JONATHAN MEYERS
	 	 
	 	/s/ Jonathan Meyers
	 	Jonathan Meyers
	 	 
	 	Address:
	 	315 East 69th Street
	 	New York, NY 10021
	 	Facsimile:______________
	 	 
	 	THEODORE S. GREEN
	 	 
	 	/s/ Theodore S. Green
	 	Theodore S. Green
	 	 
	 	Address:
	 	307 East 87th Street
	 	New York, NY 10128
	 	Facsimile:______________
	 	 
	 	TAYLOR RETTIG
	 	 
	 	/s/ Taylor Rettig
	 	Taylor Rettig
	 	 
	 	Address:
	 	c/o JH Partners, LLC
	 	451 Jackson Street
	 	San Francisco, CA 94111
	 	Telephone:  (415) 364-0300
	 	Facsimile:  (415) 364-0333


 


[Signature Page to Preferred Stock Purchase
Agreement]


 



    	 



    	 



    

 


SCHEDULE A


 


SELLERS AND PREFERRED STOCK


 


	Name of Seller	 	Number of Shares of Preferred
 Stock	 	Registered
 Seller
	JH Partners Evergreen Fund, LP	 	16,753.3880	 	Yes
	JH Investment Partners III, LP	 	1,998.3240	 	Yes
	JH Investment Partners GP Fund III, LLC	 	918.2880	 	Yes
	John Avagliano	 	400.0000	 	No
	Raymond Gagnon	 	50.0000	 	No
	Producers Sales Organization	 	850.0000	 	No
	David B. Boris*	 	392.0000	 	No
	R. Michael Powell*	 	179.0000	 	No
	Jonathan Meyers*	 	29.0000	 	No
	Theodore S. Green	 	1,000.0000	 	No
	Taylor Rettig	 	30.0000	 	No


 


		*	Indicates a Seller that is receiving only cash (and not
Promissory Notes).



 



    	Schedule A-1



    	 



    

 


SCHEDULE B


 


DETERMINATION OF CASH AND PRINCIPAL AMOUNT
OF PROMISSORY NOTES


 


The $22,000,000 of Purchase Price to those
Sellers specified on Schedule A without an “*” next to their names shall consist of $7,200,000 in cash (the
“Cash Portion”) and $14,800,000 in principal amount of Promissory Notes (the “Notes Portion”);
provided that (i) the Cash Portion shall be increased, and the Notes Portion decreased, by an amount equal to any additional vendor
financing delivered into the transactions contemplated by the Merger Agreement at Closing; and (ii) if immediately prior to Closing,
after giving effect to any redemptions or capital related transactions as may be necessary in order to consummate the transactions
contemplated by the Merger Agreement, the Purchaser has greater than $92 million in cash (excluding (a) any amounts drawn under
the SunTrust or senior line and (b) any cash held by the Purchaser outside of the Trust Fund immediately prior to Closing) (the
“Cash Amount”), then the Cash Portion shall be increased, dollar for dollar, in an amount equal to 50% of the
difference between the actual amount of cash (excluding (a) any amounts drawn under the SunTrust or other senior line and (b) any
cash held by the Purchaser outside of the Trust Fund immediately prior to Closing) and the Cash Amount; provided further,
that the Cash Portion shall not be more than $22,000,000 under any circumstances. The Notes Portion shall be reduced, dollar for
dollar, by an amount equal to any increase in the Cash Portion.


 


Notwithstanding the results of the foregoing
formulas, the Purchaser shall have the right, in its sole discretion, to increase the calculated Cash Portion (with a dollar for
dollar reduction in the Notes Portion) by any amounts.


 



    	Schedule B-1



    	 



    

 


EXHIBIT A


 


FORM OF UNSECURED SUBORDINATED PROMISSORY
NOTE


 


THE ISSUANCE AND SALE OF THIS PROMISSORY
NOTE AND ANY SHARES ISSUABLE HEREUNDER HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THIS PROMISSORY NOTE MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (i) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THIS PROMISSORY NOTE UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN
A FORM GENERALLY ACCEPTABLE TO LEGAL COUNSEL FOR THE BORROWER NAMED BELOW, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
(ii) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. IN ADDITION, THIS PROMISSORY NOTE MAY NOT BE NEGOTIATED, ASSIGNED
OR transferRed without the PRIOR written consent
of THE BORROWER. 


 


ALL
INDEBTEDNESS, LIABILITIES, AND OTHER OBLIGATIONS EVIDENCED BY THIS PROMISSORY NOTE ARE SUBORDINATED TO THE PRIOR PAYMENT IN FULL
OF “SENIOR DEBT” (AS DEFINED IN THAT CERTAIN DEBT SUBORDINATION AGREEMENT DATED AS OF THE DATE HEREOF (AS AMENDED,
RESTATED, SUPPLEMENTED, OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “SUBORDINATION AGREEMENT”) BY AND AMONG THE BORROWER,
THE HOLDER AND SUNTRUST BANK, AS ADMINISTRATIVE AGENT) PURSUANT TO, AND TO THE EXTENT PROVIDED IN, THE SUBORDINATION AGREEMENT,
THE TERMS AND PROVISIONS OF WHICH ARE INCORPORATED HEREIN AND BY THIS REFERENCE MADE A PART HEREOF. THE SUBORDINATION AGREEMENT
SHALL BE BINDING ON THE HOLDER’S SUCCESSORS AND ASSIGNS. THIS PROMISSORY NOTE MAY NOT BE MODIFIED, AMENDED, RESTATED, RENEWED,
SUPPLEMENTED, EXTENDED, OR OTHERWISE ALTERED IN ANY MANNER EXCEPT IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE SUBORDINATION
AGREEMENT. 


 


Principal
Amount:     $ [__]


 


Issuance
Date:        [__], 2012


 



    	Exhibit A-1



    	 



    

 


UNSECURED SUBORDINATED PROMISSORY
NOTE


 


FOR VALUE RECEIVED,
_______________ [NAME OF PUBLIC COMPANY PARENT], a Nevada corporation (the “Borrower”), hereby
promises to pay to [________________] (the “Holder”)
the aggregate principal amount of [_____________________] ($[_______]) (the “Principal Amount”), payable
on the first to occur of the date (the “Maturity Date”) that is (i) six years from the Issuance Date
set forth above (the “Issuance Date”) and (ii) one year from the original stated maturity date set forth
in that certain [CREDIT AGREEMENT], dated as of [__________], 2012, by and between the Borrower, the other borrowers and guarantors
party thereto, the Lenders party thereto and SunTrust Bank as Administrative Agent (the loans, indebtedness and other obligations
thereunder from time to time being hereafter collectively referred to as the “SunTrust Loan”, which term
includes any refinancings, renewals or replacements of the foregoing (including, without limitation, any refinancings, renewals
or replacements provided by different lenders or a different administrative agent)), and to pay interest (“Interest”)
on any outstanding Principal Amount at the rate of twelve percent (12%) per annum (the “Interest Rate”)
from the Issuance Date in accordance with the terms hereof; provided, however, that during the continuance of any
Event of Default under Section 3.1 below, the Interest Rate applicable hereunder shall be increased to fourteen percent (14%) per
annum. For avoidance of doubt, the Maturity Date shall not be extended solely by reason of any extension, replacement, renewal
or refinancing of the SunTrust Loan.


 


This Unsecured Subordinated
Promissory Note (this “Note”) is one of a series of notes (the “Notes”) issued
pursuant to the terms of that certain Preferred Stock Purchase Agreement dated as of [________], 2012 (the “Purchase
Agreement”) by and among the Borrower, the initial Holder and certain other investors signatory thereto (including
the initial Holder). Unless otherwise separately defined herein, all capitalized terms used in this Note shall have the respective
meanings ascribed thereto in the Purchase Agreement. The following terms shall, wherever used in this Note, have the following
meanings:


 


“Change of
Control” shall mean [to be defined]. [TO BE CONFORMED TO SUNTRUST DEFINITION]


 


“EBITDA”
shall mean, for the subject period, for the Borrower and its Subsidiaries on a consolidated basis, the sum of (a) Net Income (excluding
extraordinary gains and losses), plus (b) Interest Expense deducted in the calculation of such Net Income, plus (c)
all charges against such Net Income for federal, state and local taxes actually paid, plus (d) depreciation and amortization
expenses (other than production amortization) deducted in the calculation of such Net Income, plus (e) up to [$2,000,000]
per annum for any non-cash expense deducted in the calculation of such Net Income with respect to the issuance of stock options
to existing or new employees, plus (f) the amount of any and all transaction fees and other expenses deducted in the calculation
of such Net Income in respect of the negotiation and documentation of the SunTrust Loan, the Purchase Agreement and the transactions
contemplated thereby, up to a maximum of $3,100,000 in the aggregate, plus (g) any other add-backs included in the calculation
of EBITDA for purposes of the SunTrust Loan. [TO BE CONFORMED TO SUNTRUST DEFINITION]


 



    	Exhibit A-2



    	 



    

 


“Excess
Cash Flow” shall mean, for each fiscal year of the Borrower, an amount equal to (a) Net Income for such fiscal year,
plus (b) any Interest Expense deducted in the calculation of such Net Income to the extent paid other than in cash, plus
(c) all depreciation and amortization expenses (other than production amortization) deducted in the calculation of such Net Income,
plus (d) up to [$2,000,000] per annum for any non-cash expenses deducted in the calculation of such Net Income with
respect to the issuance of stock options to existing or new employees, minus (e) all principal payments or repurchases paid
or required to be paid in cash (other than payments under a revolving credit facility to the extent there is not an equivalent
permanent reduction in commitments thereunder) during such fiscal year in respect of Indebtedness, capitalized leases and/or purchase
money debt of the Borrower and its Subsidiaries, except to the extent paid out of the proceeds of refinancing of such obligations,
minus (f) all capital expenditures and other capitalized costs of the Borrower and its Subsidiaries during such fiscal year
to the extent paid in cash (other than cash proceeds of Indebtedness incurred for the financing thereof), minus (g) all
net proceeds of insurance, condemnation and other such recoveries received in such fiscal year but not yet required to be applied
as a mandatory prepayment of Indebtedness, minus (h) all amounts included in such Net Income with respect to the net income
of any foreign Subsidiaries except to the extent of cash dividends or distributions paid by such foreign Subsidiary to the Borrower
or any of its domestic Subsidiaries during the subject fiscal year. [TO BE CONFORMED TO SUNTRUST DEFINITION]


 


“GAAP”
shall mean generally accepted accounting principles in the United States of America, consistently applied, unless the context otherwise
requires, with respect to any financial terms contained herein, as then in effect with respect to the preparation of financial
statements.


 


“Holder’s
Allocable Share” shall mean, on each Interest Date, a fraction, the numerator of which shall be the outstanding Principal
Amount of this Note, and the denominator of which shall be the aggregate outstanding Principal Amounts of all of the Notes.


 


“Indebtedness”
shall mean (without duplication), with respect to the Borrower and its Subsidiaries on a consolidated basis, (a) all obligations
or liabilities, contingent or otherwise, for borrowed money, (b) any and all obligations represented by promissory notes, bonds,
debentures or the like, or on which interest charges are customarily paid, (c) any obligations (contingent or otherwise) as an
account party or applicant in respect of letters of credit and/or bankers’ acceptances, and (d) guarantees, endorsements
(other than for collection in the ordinary course of business) and other contingent obligations in respect of indebtedness of others;
provided, that Indebtedness shall not include capitalized lease obligations or purchase money debt.


 



    	Exhibit A-3



    	 



    

 


“Interest Expense”
shall mean, for the relevant period, interest expense (as determined in accordance with GAAP) and fees with respect to Indebtedness
of the Borrower and its Subsidiaries.


 


“Leverage Ratio”
shall mean, as of any measurement date, the ratio of (a) the outstanding principal balance of all Indebtedness as of such measurement
date, to (b) EBITDA for the twelve (12) months most recently ended as of such measurement date; provided, however,
that if, within such twelve (12) month period, the Borrower or any Subsidiary consummated a business acquisition and in connection
therewith incurred or assumed any Indebtedness, then the Borrower shall, for purposes of calculating the Leverage Ratio, be permitted
to add to EBITDA an amount not exceeding the EBITDA of the acquired business for the twelve (12) calendar months immediately prior
to the acquisition of such business (appropriately prorated to the extent that one or more months of operations of the acquired
business are already reflected or included in the base EBITDA of the Borrower).


 


“Market Price”
shall mean the volume-weighted average closing price of the common stock of the Borrower on the principal securities exchange on
which such shares are traded or listed for the twenty (20) consecutive trading days ended on the subject calculation date.


 


“Net Income”
shall mean the consolidated net income (or loss) of the Borrower and its Subsidiaries for the period in question, after giving
effect to deduction of or provision for all operating expenses, all taxes and reserves (including reserves for deferred taxes)
and all other proper deductions, all determined in accordance with GAAP.


 


“Requisite Holders”
shall mean the record holders of Notes (including Interest Notes) constituting a majority of the outstanding principal amount of
all Notes (including Interest Notes).


 


“Residual Excess
Cash Flow” shall mean (a) Excess Cash Flow for any fiscal year of the Borrower (as determined by delivery of the Borrower’s
audited year-end financial statements for such fiscal year), minus (b) the applicable Excess Cash Flow mandatory prepayment
[(not to exceed 75% of Excess Cash Flow)] required pursuant to the terms of the SunTrust Loan based upon such Excess Cash
Flow.


 


“Subsidiary”
or “Subsidiaries” shall mean the individual or collective reference to any corporation, limited liability company,
partnership or other entity of which (a) 50% or more of the outstanding shares of stock or other equity interests of each class
having ordinary voting power and/or rights to profits (other than stock having such power only by reason of the happening of a
contingency) is at the time owned by the Borrower, directly or indirectly through one or more Subsidiaries of the Borrower, or
(b) the Borrower or any direct or indirect Subsidiary of the Borrower is the general partner.


 


[NOTE: TO THE EXTENT
THAT UNRESTRICTED SUBSIDIARIES (SUCH AS AGATHA CHRISTIE LIMITED) ARE EXCLUDED FROM OR CARVED OUT OF THE DEFINITIONS (SUCH AS EBITDA,
EXCESS CASH FLOW, INDEBTEDNESS, INTEREST EXPENSE, NET INCOME AND SUBSIDIARIES) AND FINANCIAL COVENANTS IN THE SUNTRUST CREDIT AGREEMENT,
THEY WILL ALSO BE EXCLUDED FROM AND CARVED OUT OF THE CORRESPONDING DEFINITIONS AND COVENANTS IN THIS NOTE.]


 



    	Exhibit A-4



    	 



    

 


Article
I


 


GENERAL PROVISIONS


 


1.1         Payments
of Principal. On the Maturity Date, the Borrower shall pay to the Holder an amount in cash representing the outstanding Principal
Amount, together with all accrued and unpaid Interest on such Principal Amount. To the extent that less than the entire Principal
Amount is paid on or before the Maturity Date, then the proportion of the Principal Amount paid hereunder shall be not less than
the proportion of principal paid on the other Notes.


 


1.2         Interest;
Interest Date.


 


(a)          This
Note shall bear Interest at the Interest Rate. Interest on this Note shall commence accruing on the Issuance Date and shall be
computed on the basis of a 360-day year and shall be payable in arrears for each calendar year on [May 15] of the next calendar
year and on the Maturity Date (each, an “Interest Date”), with the first Interest Date being [May
15], 2013. Accrued Interest through the close of each calendar year shall be payable on the next Interest Date. On each Interest
Date, Interest shall be paid in cash (“Cash Interest”) at the rate of 5.4% per annum and the remainder
of the accrued Interest shall be paid in the form of additional Notes (“Interest Notes”) and/or, at the
Holder’s option (and provided that the Holder is then an “accredited investor” within the meaning of Regulation
D promulgated under the Securities Act of 1933, as amended), in the form of shares of common stock (“Shares”)
of the Borrower valued at the Market Price as of the close of the business day immediately before the date of the Borrower’s
notice described in the next sentence; provided, that, at the Borrower’s option, the cash portion of accrued Interest
payable on any Interest Date following the determination of Excess Cash Flow for any fiscal year of the Borrower may be increased
(and the aggregate amount of Interest Notes and Shares shall be decreased dollar-for-dollar) to an aggregate amount equal to the
lesser of (i) the Holder’s Allocable Share multiplied by 50% of the Residual Excess Cash Flow for such fiscal year, or (ii)
the total accrued Interest hereunder for such fiscal year; and further provided, that the proportion of accrued
Interest paid in cash hereunder on any Interest Date shall be not less than the proportion of accrued interest paid in cash on
the other Notes. The Borrower shall deliver a written notice to the Holder not less than ten (10) or more than twenty (20) days
prior to each Interest Date, stating (A) the amount of Interest that shall be paid as Cash Interest, (B) the amount of Interest
that shall be paid either in Interest Notes or in Shares, and (C) the Market Price applicable to any Shares which the Holder may
elect to receive in respect of the non-Cash Interest payable on the subject Interest Date. Absent a written direction to the Borrower
by the Holder, to the effect that the Holder wishes to receive all or any portion of the non-Cash Interest then payable hereunder
in the form of Shares, the Borrower may presume that the Holder wishes to receive Interest Notes in respect of any non-Cash Interest
then payable.


 



    	Exhibit A-5



    	 



    

 


(b)          On
each Interest Date, the Borrower shall (i) pay to the Holder, in cash by wire transfer of immediately available funds, the amount
of the Cash Interest payable on such Interest Date, and (ii) if applicable, issue (or cause to be issued) and deliver, to the address
of the Holder set forth in the Purchase Agreement or to such address as specified by the Holder in writing to the Borrower at least
two (2) business days prior to the applicable Interest Date, an Interest Note in the name of the Holder, and/or (to the extent
validly elected by the Holder) Shares valued at the Market Price, in an aggregate amount (as between such Interest Note and Shares)
equal to the amount of non-Cash Interest then payable hereunder.


 


(c)          To
the extent that the Holder shall elect to receive payment of any Interest in the form of Shares, such election shall constitute
the Holder’s representation and warranty to the Borrower that the Holder is an “accredited investor” who will
be acquiring such Shares for its own account for investment and not with a view to the resale or distribution thereof in violation
of any applicable securities laws, and such Holder’s acknowledgment that the Shares will constitute restricted securities
under federal and state securities laws which may not be transferred or sold in the absence of an effective registration or an
available exemption from registration; and the Holder shall, if so requested by the Borrower, specifically confirm such representations
and understandings, and provide to the Borrower the Holder’s current address and taxpayer identification number. Upon issuance
hereunder, any and all Shares issued hereunder will be duly authorized, validly issued, fully paid and nonassessable. The Borrower
shall at all times reserve a sufficient number of Shares to satisfy any and all issuance obligations hereunder.


 



    	Exhibit A-6



    	 



    

 


1.3           Prepayment.
All or any portion of the Principal Amount of this Note may be prepaid at any time and from time to time, without premium or penalty.


 


1.4           Borrower
Has Senior Indebtedness Outstanding; Borrower is Permitted to Issue Other Indebtedness; This Note is Subordinate to Senior Indebtedness.
The Borrower and its Subsidiaries currently have outstanding secured and unsecured indebtedness, including, without limitation,
the SunTrust Loan, that is senior in right of payment to the indebtedness evidenced by this Note (the “Senior Indebtedness”),
and subject to Section 2.4, the Borrower and its Subsidiaries shall be permitted in the future to issue and create secured and
unsecured indebtedness and security interests of any kind, including without limitation, indebtedness that is senior to or pari
passu with the Borrower’s obligations under this Note. The Holder expressly acknowledges that the indebtedness represented
by this Note is expressly subordinate to the prior payment in full of all Senior Indebtedness, and that no payment hereunder shall
be required, made, accepted or retained if such payment is not permitted under the terms of the Subordination Agreement or any
other subordination agreement required under Section 5.3 below. [The Subordination Agreement shall be on terms and conditions
not inconsistent with Exhibit A hereto.]


 


1.5           Transfer.
This Note shall not be negotiated, sold, assigned, transferred, conveyed, disposed of or subjected to any Encumbrance (in whole
or in part) by the Holder without the prior written consent of the Borrower.


 


1.6           Maximum
Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges
in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges
hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited to the Principal
Amount or shall be refunded to the Borrower.


 


1.7           Non-Business
Days. Whenever any payment or any action to be made shall be due on a Saturday, Sunday or a public holiday under the laws
of the State of New York, such payment shall be due or action taken on the next succeeding business day.


 


    	Exhibit A-7



    	 



    
 


Article
II


 


COVENANTS


 


So long as any amounts
remain unpaid under this Note, the Borrower shall comply with the following covenants, except to the extent waived with the consent
or agreement of the Requisite Holders:


 


2.1           Existence.
The Borrower shall, and shall cause each of its Subsidiaries to, keep in full force and effect its legal existence (provided that
the Borrower may, in its discretion from time to time, dissolve or dispose of one or more Subsidiaries).


 


2.2           Financial
Statements. Within one hundred twenty (120) calendar days after the end of each fiscal year of the Borrower, the Borrower
shall provide to the Holder the consolidated financial statements of the Borrower and its Subsidiaries (including balance sheet,
income statement, and statement of cash flows), prepared in accordance with GAAP and certified by the Borrower’s independence
certified public accounts; provided that such financial statements may be delivered by posting such financial statements
on a public database.


 


2.3           Senior
Default Notices. The Borrower shall provide to the Holder, promptly upon obtaining actual knowledge thereof, with notice of
any uncured or unwaived events of default under any Senior Indebtedness in an outstanding principal amount (individually or in
the aggregate) in excess of $5,000,000.


 


2.4           Limitation
on Indebtedness. The Borrower and its Subsidiaries shall not incur, and Senior Indebtedness shall not include, any Indebtedness
which, on a pro forma basis at the time such Indebtedness is incurred, assumed or committed, would cause the Leverage Ratio to
exceed 3.5 to 1.0; provided, however, that such limitation shall not be applicable to the SunTrust Loan (including
any increases thereto from time to time).


 


2.5           Compliance.
The Borrower shall at all times comply with its certificate or articles of incorporation, by-laws and other constituent documents,
and all material laws applicable to its business, except in any instance in which the failure to comply would not have or reasonably
be expected to have a material adverse effect on the Borrower or its business, operations, properties, assets or condition, financial
or otherwise.


 



    	Exhibit A-8



    	 



    

 


2.6           Affiliate
Transactions. Neither the Borrower nor any Subsidiary shall engage in any transaction with an Affiliate (other than transactions
between the Borrower and one or more Subsidiaries, or between Subsidiaries) involving aggregate payments in excess of $250,000,
unless (a) such transaction is on terms and conditions no less favorable to the Borrower or the subject Subsidiary than would
be available in an arms’-length transaction with a non-Affiliate, (b) such transaction is approved by the Requisite Holders
(which approval shall not be unreasonably withheld, delayed or conditioned), or (c) such transaction is otherwise permitted pursuant
to the terms of the SunTrust Loan.


 


2.7           Board
Observers. The Borrower shall permit up to two (2) representatives designated by the Requisite Holders (and the Requisite
Holders may, at their discretion, elect from time to time to have only one such representative or no such representative) to receive
written notice of all meetings of the Board of Directors of the Borrower (the “Board”), and of all action
proposed to be taken by the Board by written consent, at the same time as notice thereof is given to the Board, and the Company
shall permit such representatives to attend or participate (either in person or by conference telephone) in any and all such meetings
as non-voting observers; provided, however, that each such observer shall agree to hold in confidence all information
provided to the observer, in advance of a meeting, and all information discussed at a meeting at which the observer is in attendance;
and further provided, that the Borrower reserves the right, exercised in good faith, to withhold any information
from the observers and to exclude the observers from any meeting or portion thereof if and to the extent that (a) access to such
information or attendance at such meeting or portion thereof would adversely affect the attorney-client privilege between the
Borrower and its counsel, (b) access to such information or attendance at such meeting or portion thereof could reasonably be
expected to result in disclosure of trade secrets or a conflict of interest, (c) any holder(s) of Notes is the subject matter
under discussion, (d) same is necessary to discharge the directors’ fiduciary duty, or (e) same is otherwise advised by
the Borrower’s counsel in good faith and in the exercise of reasonable professional judgment. In addition, the Company will
provide to such observers all reports otherwise provided to members of the Board, subject to confidentiality restrictions as aforesaid
with respect to all material non-public information included in such reports. Except for observance of the provisions of this
Section 2.7, each such representative and the Holder shall owe no duty to the Borrower, its Subsidiaries or its shareholders by
reason of such observer rights.


 



    	Exhibit A-9



    	 



    

 


Article
III


 


EVENTS OF DEFAULT


 


3.1         Events
of Default. The occurrence of any of the following shall constitute an “Event of Default” hereunder:


 


(a)          any
default in the payment of any principal or Interest under this Note when the same shall be due and payable, and, with respect to
interest only, the continuance of any such non-payment (in whole or in part) for a period of five (5) calendar days; or


 


(b)          any
default in the due observance or performance of any of the covenants contained in Article II above; or


 


(c)          any
uncured or unwaived event of default (regardless of when such cure or waiver occurs) with respect to any Senior Indebtedness in
a principal amount (individually or in the aggregate) in excess of $5,000,000, if the effect thereof is to permit the holder to
accelerate the maturity of any such Senior Indebtedness or to cause such Senior Indebtedness to become due prior to the stated
maturity thereof; provided, that a waiver of an event of default under the SunTrust Loan which gave rise to an Event of
Default under this Section 3.1(c) (which waiver may be granted at any time in the discretion of the holders of the SunTrust Loan)
will automatically waive such Event of Default; or


 


(d)          if
the Borrower shall: (i) apply for or consent to the appointment of a receiver, trustee, custodian or liquidator of it or any of
its properties, (ii) admit in writing its inability to pay its debts as they mature, (iii) make a general assignment for the benefit
of creditors, (iv) be adjudicated a bankrupt or insolvent or be the subject of an order for relief under Title 11 of the United
States Code or any other insolvency law, or (v) file a voluntary petition in bankruptcy, or a petition or an answer seeking reorganization
or an arrangement with creditors or to take advantage of any insolvency law, or an answer admitting the material allegations of
a petition filed against it in any proceeding under any insolvency law, or (vi) take or permit to be taken any action in furtherance
of or for the purpose of effecting any of the foregoing; or


 



    	Exhibit A-10



    	 



    

 


(e)          if
any order, judgment or decree shall be entered, without the application, approval or consent of the Borrower, by any court of competent
jurisdiction, approving a petition seeking reorganization of the Borrower, or appointing a receiver, trustee, custodian or liquidator
of the Borrower, or of all or any substantial part of its assets, and such order, judgment or decree shall continue unstayed and
in effect for any period of sixty (60) days.


 


3.2         Remedies.
Upon the occurrence of any Event of Default and at all times thereafter during the continuance thereof, or in the event of any
Change of Control: (a) subject to the terms of the Subordination Agreement, at the option of the Requisite Holders exercised by
written notice to the Borrower (except in the case of Sections 3.1(d) and 3.1(e) above, the occurrence of which shall automatically
effect acceleration, regardless of any action or forbearance in respect of any prior or ongoing Event of Default which may be
inconsistent with such automatic acceleration), all obligations under this Note and/or any other Notes shall become immediately
due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, (b)
this Note shall bear interest at the default rate provided above, and (c) subject to the terms of the Subordination Agreement
and any limitations imposed by any subordination agreement required under Section 5.3 below, the Holder may file suit against
the Borrower on this Note.


 


Article
IV


 


UNSECURED NOTE


 


4.1         Unsecured
Note. This Note is an unsecured obligation of the Borrower.


 


Article
V


 


MISCELLANEOUS


 


5.1         Notices.
All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and
shall be deemed to have been duly given or made upon receipt) by delivery in person, by recognized overnight courier service,
by facsimile, or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties hereto
at the addresses set forth in the Purchase Agreement (or at such other address for a party as shall be specified in a notice given
in accordance with this Section 5.1):


 



    	Exhibit A-11



    	 



    

 


5.2           Severability.
If any term or other provision of this Note is determined to be invalid or unenforceable, all other provisions of this Note shall
nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby
is not affected in any manner materially adverse to the Borrower or the Holder. Upon such determination that any term or other
provision is invalid or unenforceable, the Borrower and the Holder shall negotiate in good faith to modify this Note so as to
effect the original intent of the Borrower and the Holder as closely as possible in a mutually acceptable manner in order that
the transactions contemplated hereby be carried out as originally contemplated to the fullest extent possible.


 


5.3           Entire
Agreement. This Note and the Purchase Agreement constitute the entire agreement of the Borrower and the Holder with respect
to the subject matter hereof and supersede all prior agreements and undertakings, both written and oral, among the Borrower and
the Holder, or any of them, with respect to the subject matter hereof; provided, however, that the Holder shall,
upon the request of any holder of Senior Indebtedness, execute and deliver in favor of such holder (or any agent acting on behalf
of such holders) a subordination agreement in customary form, not inconsistent with the terms set forth in Exhibit A hereto
and reasonably satisfactory to such holder or agent and the Holder.


 


5.4           Assignment.
This Note may not be assigned by operation of law or otherwise by the Holder, except to an affiliate of the Holder, without the
express written consent of the Borrower and the Requisite Holders. This Note may not be assigned by operation of law or otherwise
by the Borrower without the express written consent of the Holder, except that the Borrower may assign all or any of its rights
and obligations to an Affiliate of the Borrower; provided, that no such assignment shall relieve the Borrower of its obligations
hereunder if such assignee does not perform such obligations.


 


5.5           Amendment.
This Note may not be amended or modified except (a) by an instrument in writing signed by, or on behalf of, the Holder and the
Borrower, or (b) by a waiver in accordance with Section 5.6; provided, however, that no such amendment or modification
shall be effective unless it is permitted under or effected in accordance with the terms and conditions of the Subordination Agreement;
provided further, however, that no such amendment or modification shall be effective unless it is approved
in writing by the Requisite Holders.


 



    	Exhibit A-12



    	 



    

 


5.6           Waiver.
The Holder, on the one hand, and the Borrower, on the other, may (a) extend the time for the performance of any of the obligations
or other acts of the other party, or (b) amend or waive compliance with any of the agreements of the other party or conditions
to such party’s obligations contained herein; and, in addition, with respect to any waiver or amendment which does not uniquely
affect the Holder or affect the Holder in a manner disproportionate to the other holders of Notes, the Holder shall be bound by
any amendment or waiver consented to by the Requisite Holders. Except for any such amendment or waiver approved by the Requisite
Holder pursuant to a separate written agreement, any such extension or waiver shall be valid only if set forth in an instrument
in writing signed by the party to be bound thereby. Any waiver of any term or condition shall not be construed as a waiver of
any subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this
Note. The failure of either party hereto to assert any of its rights hereunder shall not constitute a waiver of any of such rights.


 


5.7           Governing
Law. This Note shall be governed by, and construed in accordance with, the laws of the State of New York.


 


5.8           Waiver
of Jury Trial. Each of the Borrower and the Holder hereby waives to the fullest extent permitted by applicable law any right
it may have to a trial by jury with respect to any litigation directly or indirectly arising out of, under or in connection with
this Note or the transactions contemplated by this Note. Each of the Borrower and the Holder hereby (a) certifies that no representative,
agent or attorney of the other party has represented, expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce the foregoing waiver and (b) acknowledges that it has been induced to enter into this Note and the
transactions contemplated by this Note, as applicable, by, among other things, the mutual waivers and certifications in this Section
5.8.


 


[The remainder of this
page is intentionally blank]


 



    	Exhibit A-13



    	 



    

 


IN WITNESS WHEREOF,
the Borrower has caused this Note to be signed in its name by an authorized officer as of the Issuance Date.


 


	 	[NAME OF PUBLIC COMPANY PARENT]
	 	 
	 	By:  	 
	 	 	Name:
	 	 	Title:


 



    	Exhibit A-14



    	 



    

 


EXHIBIT A


 


SUBORDINATION TERMS


 


1. Except as provided below, payment of
the Borrower’s obligations under the Note shall be subordinated to the prior payment in full of the SunTrust Loan and other
subject Senior Indebtedness, and the Holder shall turn over to the holder of the SunTrust Loan (the “Senior Creditor”)
any and all payments received or recovered on the Note.


2. Except as provided in item 8 below,
the Holder may not accelerate any obligations under the Note, commence any enforcement action on the Note, file or join in the
filing of any petition in bankruptcy, insolvency or receivership against the Borrower, or otherwise take action against the Borrower
upon or by reason of the Note.


3. Except as provided in item 8 below,
the Borrower may pay, and the Holder may receive and retain, regularly scheduled payments of Interest and, on the Maturity Date,
the outstanding Principal Amount, unless (a) at the time of such payment, there is a continuing event of default as defined in
the credit agreement respecting the SunTrust Loan, provided that (b) the exception in clause (a) shall not preclude the Holder
from filing a proof of claim for the full amount of the Note in any bankruptcy or insolvency proceeding relating to the Borrower
(provided that same does not dispute the subordination of the Note).1 The foregoing shall not restrict payments made
in the form of Interest Notes or Shares. Any non-permitted payments must be returned to the Borrower or the Senior Creditor on
demand.


4. The Holder may receive and retain any
prepayment made on the Note to the extent that such prepayment was made with the Senior Creditor’s written consent.


5. The Holder will agree not to accept
any guarantees or collateral for the Note obligations, or at any time challenge the validity, enforceability or priority of the
SunTrust Loan or the related liens or collateral.


6. In any bankruptcy or insolvency proceeding
relating to the Borrower, (a) there shall be no distributions permitted in respect of the Note (except subordinated reorganization
securities) until the SunTrust Loan is paid in full in cash, (b) the Holder shall not in any manner challenge the claims of the
Senior Creditor, the priority of the claims of the Senior Creditor or any liens of the Senior Creditor, and (c) customary bankruptcy
waivers (including in respect of use of cash collateral, DIP financing, and adequate protection for the Senior Creditor) will apply.


 








1 The Subordination
Agreement shall provide that the Senior Creditor may file a proof of claim on behalf of the Holder if the Holder does not file
a proof of claim within 30 days of the bar date.


 



    	Exhibit A-15



    	 



    

 


7. The Senior Creditor and the Borrower
may amend, extend and otherwise modify (including increases in lending amounts) the agreements relating to the SunTrust Loan, and
the Senior Creditor may grant waivers thereunder, at any time and from time to time without consultation with or consent or approval
by the Holder.


8. On the Maturity Date, the Holder may
(a) commence an enforcement action on the Note, file or join in the filing of any petition in bankruptcy, insolvency or receivership
against the Borrower, or otherwise take action against the Borrower upon or by reason of the Note and (b) receive and retain payments
constituting the outstanding Principal Amount and any other amounts owing to the Holder under the Note so long as (i) there is
no payment default in existence under the SunTrust Loan or (ii) there is no bankruptcy, insolvency or receivership proceeding relating
to the Borrower in existence.


9. The foregoing shall apply to any subordination
agreement requested in respect of other Senior Indebtedness, as if such senior indebtedness was the SunTrust Loan and the holder
of such Senior Indebtedness was the Senior Creditor; provided that item 7 shall be subject to Section 2.4 of the Note.


 


1 The Subordination Agreement
shall provide that the Senior Creditor may file a proof of claim on behalf of the Holder if the Holder does not file a proof of
claim within 30 days of the bar date.


 



    	Exhibit A-16