# EDGAR Filing Document

**Accession Number:** 0001878897
**File Stem:** 0001878897-25-000067
**Filing Date:** 2025-11
**Character Count:** 462135
**Document Hash:** 243ace760d9e9712496e208110702fe1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001878897-25-000067.hdr.sgml**: 20251105

**ACCESSION NUMBER**: 0001878897-25-000067

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 83

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251105

**DATE AS OF CHANGE**: 20251105

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Douglas Elliman Inc.
- **CENTRAL INDEX KEY:** 0001878897
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE AGENTS & MANAGERS (FOR OTHERS) [6531]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 872176850
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41054
- **FILM NUMBER:** 251454901

**BUSINESS ADDRESS:**
- **STREET 1:** 4400 BISCAYNE BLVD
- **STREET 2:** FLOOR 10
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33137
- **BUSINESS PHONE:** 3055798000

**MAIL ADDRESS:**
- **STREET 1:** 4400 BISCAYNE BLVD
- **STREET 2:** FLOOR 10
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33137

?xml version='1.0' encoding='ASCII'? doug-20250930

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934** 

**For The Quarterly Period Ended September 30, 2025** 

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE** 

**SECURITIES EXCHANGE ACT OF 1934**

**DOUGLAS ELLIMAN INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **1-41054** | **87-2176850** |
| (State or other jurisdiction of incorporation | Commission File Number | (I.R.S. Employer Identification No.) |
| incorporation or organization) | | |

---

**4400 Biscayne Boulevard**

**Miami, Florida 33137** 

**305-579-8000** 

(Address, including zip code and telephone number, including area code,

of the principal executive offices)

**Securities Registered Pursuant to 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class:** | **Trading** | **Name of each exchange** |
| | **Symbol(s)** | **on which registered:** |
| **Common stock, par value $0.01 per share** | DOUG | New York Stock Exchange |

---

&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

⌧ Yes □ No

&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

⌧ Yes □ No

&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

☐ Large accelerated filer ⌧ Accelerated filer ☐ Non-accelerated filer ⌧ Smaller reporting company ☐ Emerging Growth Company

&nbsp;&nbsp;&nbsp;&nbsp;If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ⌧ No

&nbsp;&nbsp;&nbsp;&nbsp;At October 29, 2025, Douglas Elliman Inc. had 88,818,970 shares of common stock outstanding.

------

**DOUGLAS ELLIMAN INC.**

**FORM 10-Q**

**<u>**TABLE OF CONTENTS**</u>**

---

| | |
|:---|:---|
| | <u>Page</u> |
| **<u>PART I. FINANCIAL INFORMATION</u>** |  |
| Item 1. Douglas Elliman Inc. Condensed Consolidated Financial Statements (Unaudited): |  |
| Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 | <u>[2](#i4ad6bb7b8a9447298f81b08fe5b751bd_10)</u> |
| Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 | <u>[3](#i4ad6bb7b8a9447298f81b08fe5b751bd_13)</u> |
| Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 | <u>[4](#i4ad6bb7b8a9447298f81b08fe5b751bd_19)</u> |
| Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 | <u>[6](#i4ad6bb7b8a9447298f81b08fe5b751bd_25)</u> |
| Notes to Condensed Consolidated Financial Statements | <u>[7](#i4ad6bb7b8a9447298f81b08fe5b751bd_28)</u> |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | <u>[26](#i4ad6bb7b8a9447298f81b08fe5b751bd_76)</u> |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk | <u>[36](#i4ad6bb7b8a9447298f81b08fe5b751bd_106)</u> |
| Item 4. Controls and Procedures | <u>[36](#i4ad6bb7b8a9447298f81b08fe5b751bd_109)</u> |
| **<u>PART II. OTHER INFORMATION</u>** |  |
| Item 1. Legal Proceedings | <u>[37](#i4ad6bb7b8a9447298f81b08fe5b751bd_115)</u> |
| Item 1A. Risk Factors | <u>[37](#i4ad6bb7b8a9447298f81b08fe5b751bd_118)</u> |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | <u>[37](#i4ad6bb7b8a9447298f81b08fe5b751bd_121)</u> |
| Item 5. Other Information | <u>[37](#i4ad6bb7b8a9447298f81b08fe5b751bd_127)</u> |
| Item 6. Exhibits | <u>[38](#i4ad6bb7b8a9447298f81b08fe5b751bd_130)</u> |
| **SIGNATURE** | <u>[39](#i4ad6bb7b8a9447298f81b08fe5b751bd_133)</u> |

---

------

**DOUGLAS ELLIMAN INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS** 

**(<u>Dollars in Thousands, Except Per Share Amounts</u>)**

**<u>Unaudited</u>**

---

| | | |
|:---|:---|:---|
| | **September 30,<br>2025** | **December 31,<br>2024** |
| ASSETS: |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $143003 | $135657 |
| &nbsp;&nbsp;&nbsp;Investment securities at fair value |  | 9804 |
| &nbsp;&nbsp;&nbsp;Receivables | 17753 | 19598 |
| &nbsp;&nbsp;&nbsp;Agent receivables, net | 7852 | 7871 |
| &nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents | 5421 | 4081 |
| &nbsp;&nbsp;&nbsp;Other current assets | 18896 | 19054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 192925 | 196065 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 32441 | 37700 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 87223 | 100491 |
| &nbsp;&nbsp;Long-term investments (includes $4,443 and $3,127 at fair value) | 10593 | 9527 |
| &nbsp;&nbsp;&nbsp;Contract assets, net | 44571 | 37123 |
| &nbsp;&nbsp;&nbsp;Goodwill | 32230 | 32230 |
| &nbsp;&nbsp;&nbsp;Other intangible assets, net | 71818 | 72307 |
| &nbsp;&nbsp;&nbsp;Equity-method investments | 2197 | 2020 |
| &nbsp;&nbsp;&nbsp;Other assets | 6604 | 6425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $480602 | $493888 |
| LIABILITIES AND STOCKHOLDERS' EQUITY: |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Current operating lease liabilities | $21407 | $21672 |
| &nbsp;&nbsp;&nbsp;Current portion of antitrust litigation settlement | 5000 |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | 3614 | 3056 |
| &nbsp;&nbsp;&nbsp;Income taxes payable, net | 11 |  |
| &nbsp;&nbsp;&nbsp;Commissions payable | 19639 | 20452 |
| &nbsp;&nbsp;&nbsp;Accrued salaries and benefits | 9485 | 8296 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 15867 | 18225 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 25579 | 20456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 100602 | 92157 |
| &nbsp;&nbsp;&nbsp;Notes payable and other obligations less current portion | 34683 | 32670 |
| &nbsp;&nbsp;&nbsp;Fair value of derivative embedded within convertible debt | 63413 | 30253 |
| &nbsp;&nbsp;&nbsp;Non-current operating lease liabilities | 86730 | 101935 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 74302 | 63765 |
| &nbsp;&nbsp;&nbsp;Antitrust litigation settlement | 5000 | 10000 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 1063 | 683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 365793 | 331463 |
| Commitments and contingencies (Note 8) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;Preferred stock, par value $0.01 per share, 10,000,000 shares authorized |  |  |
| &nbsp;&nbsp;Common stock, par value $0.01 per share, 250,000,000 shares authorized, 88,958,101 and 88,853,150 shares issued and outstanding | 890 | 889 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 291401 | 285167 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (177217) | (123868) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Douglas Elliman Inc. stockholders' equity | 115074 | 162188 |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | (265) | 237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 114809 | 162425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $480602 | $493888 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**DOUGLAS ELLIMAN INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(<u>Dollars in Thousands, Except Per Share Amounts</u>)**

**<u>Unaudited</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenues: |  |  |  |  |
| Commissions and other brokerage income | $250354 | $254074 | $749513 | $714652 |
| Property management | 9438 | 8960 | 29395 | 27701 |
| Other ancillary services | 3046 | 3282 | 8699 | 9953 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total revenues | 262838 | 266316 | 787607 | 752306 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Real estate agent commissions | 192771 | 199133 | 583890 | 564606 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 19711 | 19240 | 59519 | 62691 |
| &nbsp;&nbsp;&nbsp;Operations and support | 17575 | 18774 | 53078 | 55572 |
| &nbsp;&nbsp;&nbsp;General and administrative | 32220 | 28659 | 85722 | 80530 |
| &nbsp;&nbsp;&nbsp;Technology | 5964 | 6025 | 17265 | 17301 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 2183 | 1898 | 6302 | 5808 |
| &nbsp;&nbsp;&nbsp;Antitrust litigation settlement expense |  |  |  | 17750 |
| &nbsp;&nbsp;Impairment of fixed assets | 2275 |  | 2275 |  |
| &nbsp;&nbsp;&nbsp;Restructuring | 794 | 18 | 1092 | 616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating loss | (10655) | (7431) | (21536) | (52568) |
| Other income (expenses): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (1573) | (1461) | (4648) | (1475) |
| &nbsp;&nbsp;&nbsp;Interest income | 1366 | 1551 | 3986 | 3989 |
| &nbsp;&nbsp;&nbsp;Equity in (losses) earnings from equity-method investments | (23) | 62 | 178 | 49 |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative embedded within convertible debt | (15445) | (20166) | (33160) | (20166) |
| &nbsp;&nbsp;&nbsp;Investment and other gains (losses) | 1399 | (4) | 1340 | 625 |
| Loss before provision for income taxes | (24931) | (27449) | (53840) | (69546) |
| &nbsp;&nbsp;&nbsp;Income tax expense | 11 |  | 11 | 1368 |
| Net loss | (24942) | (27449) | (53851) | (70914) |
| Net loss attributed to non-controlling interest | 251 | 269 | 502 | 595 |
| Net loss attributed to Douglas Elliman Inc. | $(24691) | $(27180) | $(53349) | $(70319) |
| Per basic common share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss applicable to common shares attributed to Douglas Elliman Inc. | $(0.29) | $(0.33) | $(0.63) | $(0.84) |
| Per diluted common share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss applicable to common shares attributed to Douglas Elliman Inc. | $(0.29) | $(0.33) | $(0.63) | $(0.84) |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**DOUGLAS ELLIMAN INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**<u>(Dollars in Thousands, Except Share Amounts)</u>**

**<u>Unaudited</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | | |
| | | | **Additional Paid-In** | | **Non-<br>controlling** | |
| | **Common Stock** | **Common Stock** | **Additional Paid-In** | | **Non-<br>controlling** | |
| | **Shares** | **Amount** | **Capital** |<br>**Accumulated**<br>**Deficit** | **Interest** |<br><br>**Total** |
| Balance as of July 1, 2025 | 88723101 | $887 | $289242 | $(152526) | $(14) | $137589 |
| Net loss |  |  |  | (24691) | (251) | (24942) |
| Restricted stock grants | 250000 | 3 | (3) |  |  |  |
| Restricted stock grant cancelled | (15000) |  |  |  |  |  |
| Stock-based compensation |  |  | 2162 |  |  | 2162 |
| Balance as of September 30, 2025 | 88958101 | $890 | $291401 | $(177217) | $(265) | $114809 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | | |
| | | | **Additional Paid-In** | | **Non-<br>controlling** | |
| | **Common Stock** | **Common Stock** | **Additional Paid-In** | | **Non-<br>controlling** | |
| | **Shares** | **Amount** | **Capital** |<br>**Accumulated**<br>**Deficit** | **Interest** |<br><br>**Total** |
| Balance as of July 1, 2024 | 91714666 | $917 | $286685 | $(90691) | $597 | $197508 |
| Net loss |  |  |  | (27180) | (269) | (27449) |
| Restricted stock grants | 117950 | 1 | (1) |  |  |  |
| Stock-based compensation |  |  | 3887 |  |  | 3887 |
| Balance as of September 30, 2024 | 91832616 | $918 | $290571 | $(117871) | $328 | $173946 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**DOUGLAS ELLIMAN INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY** 

**(<u>Dollars in Thousands, Except Share Amounts</u>)**

**<u>Unaudited</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | | |
| | | | **Additional Paid-In** | | **Non-controlling** | |
| | **Common Stock** | **Common Stock** | **Additional Paid-In** | | **Non-controlling** | |
| | **Shares** | **Amount** | **Capital** |<br>**Accumulated**<br>**Deficit** | **Interest** |<br><br>**Total** |
| Balance as of January 1, 2025 | 88853150 | $889 | $285167 | $(123868) | $237 | $162425 |
| Net loss |  |  |  | (53349) | (502) | (53851) |
| Restricted stock grants | 559915 | 6 | (6) |  |  |  |
| Withholding of shares as payment of tax liabilities in connection with restricted stock vesting | (35590) | (1) | (85) |  |  | (86) |
| Restricted stock grant cancelled | (419374) | (4) | 4 |  |  |  |
| Stock-based compensation |  |  | 6321 |  |  | 6321 |
| Balance as of September 30, 2025 | 88958101 | $890 | $291401 | $(177217) | $(265) | $114809 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | **Douglas Elliman Inc. Stockholders' Equity** | | |
| | | | **Additional Paid-In** | | **Non-controlling** | |
| | **Common Stock** | **Common Stock** | **Additional Paid-In** | | **Non-controlling** | |
| | **Shares** | **Amount** | **Capital** |<br>**Accumulated**<br>**Deficit** | **Interest** |<br><br>**Total** |
| Balance as of January 1, 2024 | 87925412 | $879 | $279904 | $(47552) | $923 | $234154 |
| Net loss |  |  |  | (70319) | (595) | (70914) |
| Restricted stock grants | 4135750 | 41 | (41) |  |  |  |
| Withholding of shares as payment of tax liabilities in connection with restricted stock vesting | (9921) |  | (11) |  |  | (11) |
| Restricted stock grants cancelled | (218625) | (2) | 2 |  |  |  |
| Stock-based compensation |  |  | 10717 |  |  | 10717 |
| Balance as of September 30, 2024 | 91832616 | $918 | $290571 | $(117871) | $328 | $173946 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**DOUGLAS ELLIMAN INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(<u>Dollars in Thousands</u>)**

**<u>Unaudited</u>**

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** |
| | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(53851) | $(70914) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 6302 | 5808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock-based compensation expense | 6321 | 10717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of fixed assets | 2275 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of assets | 193 | 205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes |  | 977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gains on investment securities | (1257) | (625) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in earnings from equity-method investments | (178) | (49) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash interest expense | 2013 | 590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease expense | 14526 | 15727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative embedded within convertible debt | 33160 | 20166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 3726 | 4138 |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables | (1862) | (2417) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net | 11 | 5629 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets, net | (4733) | (2326) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating right-of-use assets and operating lease liabilities, net | (16728) | (17062) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 4867 | (2679) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets and liabilities | (3647) | 439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued salary and benefits | 1189 | (7411) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 8178 | 12100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Antitrust litigation settlement |  | 10000 |
| Net cash provided by (used in) operating activities | 505 | (16987) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sale or liquidation of long-term investments | 1611 | 2523 |
| &nbsp;&nbsp;&nbsp;Proceeds from sale or liquidation of short-term investments | 97677 |  |
| &nbsp;&nbsp;Purchase of short-term investments | (87873) |  |
| &nbsp;&nbsp;&nbsp;Purchase of long-term investments | (108) | (259) |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (3041) | (4273) |
| Net cash provided by (used in) investing activities | 8266 | (2009) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from debt issuance |  | 48750 |
| &nbsp;&nbsp;&nbsp;Deferred financing charges |  | (1997) |
| &nbsp;&nbsp;&nbsp;Withholding of shares as payment of payroll tax liabilities in connection with restricted stock vesting | (85) | (11) |
| Net cash (used in) provided by financing activities | (85) | 46742 |
| Net increase in cash, cash equivalents and restricted cash | 8686 | 27746 |
| Cash, cash equivalents and restricted cash, beginning of period | 142221 | 129517 |
| Cash, cash equivalents and restricted cash, end of period | $150907 | $157263 |
| Supplemental Disclosure of Cash Flow Information: |  |  |
| Interest payments | $1760 | $— |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

 **1. &nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;***(a)<u>Basis of Presentation</u>:***

Douglas Elliman Inc. ("Douglas Elliman" or the "Company") is engaged in the real estate services and property technology ("PropTech") investment business and is seeking to acquire or invest in additional real estate services businesses. The condensed consolidated financial statements of Douglas Elliman include the accounts of DER Holdings LLC and DOUG Ventures, LLC (f/k/a New Valley Ventures LLC) ("DOUG Ventures"), a directly and an indirectly wholly owned subsidiary of the Company, respectively. DER Holdings LLC owns Douglas Elliman Realty, LLC and Douglas Elliman of California, Inc., which are engaged in the residential real estate brokerage business with their subsidiaries. The operations of DOUG Ventures consist of minority investments in innovative and cutting-edge PropTech companies.

Certain references to "Douglas Elliman Realty" refer to the Company's residential real estate brokerage business, including the operations of Douglas Elliman Realty, LLC and Douglas Elliman of California Inc., unless otherwise specified.

The unaudited, interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and, in management's opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair statement of the results for the periods presented. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. References to U.S. GAAP issued by the Financial Accounting Standards Board ("FASB") are to the FASB Accounting Standards Codification, also referred to as the "Codification" or "ASC." These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission ("SEC"). The condensed consolidated results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the entire year.

In presenting the condensed consolidated financial statements, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;***(b) <u>Principles of Consolidation</u>:***

The condensed consolidated financial statements include the assets, liabilities, revenues, expenses and cash flows of DER Holdings LLC and DOUG Ventures, as well as all other entities, in which Douglas Elliman has a controlling financial interest. All intercompany balances and transactions have been eliminated in the condensed consolidated financial statements.

When evaluating an entity for consolidation, Douglas Elliman first determines whether an entity is within the scope of the guidance for consolidation of variable interest entities ("VIE") and if it is deemed to be a VIE. If the entity is considered to be a VIE, Douglas Elliman determines whether it would be considered the entity's primary beneficiary. Douglas Elliman consolidates those VIEs for which it has determined that it is the primary beneficiary. Additionally, Douglas Elliman will consolidate an entity that is not deemed a VIE upon a determination that it has a controlling financial interest. If Douglas Elliman determines that it does not have a controlling financial interest in an entity that is a VIE, it does not consolidate the entity. For entities where Douglas Elliman does not have a controlling financial interest, the investments in such entities are classified as available-for-sale securities or accounted for using the equity or cost method, as appropriate.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

&nbsp;&nbsp;&nbsp;&nbsp;***(c) <u>Estimates and Assumptions</u>:***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Significant estimates subject to material changes in the near term include impairment charges and valuation of intangible assets. Actual results could differ from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;***(d) <u>Loss Per Share ("EPS")</u>:***

The Company has restricted stock awards which will provide dividends at the same rate as paid on the common stock with respect to the shares underlying the restricted stock awards. These outstanding restricted stock awards represent participating securities under authoritative guidance. The participating securities holders do not participate in the Company's net losses. There were no outstanding non-participating securities during the three and nine months ended September 30, 2025 and 2024. The Company did not pay a cash dividend during the three and nine months ended September 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net loss attributed to Douglas Elliman Inc. | $(24691) | $(27180) | $(53349) | $(70319) |
| Income attributable to participating securities |  |  |  |  |
| Net loss available to common stockholders attributed to Douglas Elliman Inc. | $(24691) | $(27180) | $(53349) | $(70319) |

---

Basic EPS is computed by dividing net loss available to common stockholders attributed to Douglas Elliman Inc. by the weighted-average number of shares outstanding, which will include vested restricted stock.

Basic and diluted EPS were calculated using the following shares of common stock for the periods presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Weighted-average shares for basic and diluted EPS | 84574664 | 83532069 | 84477033 | 83401374 |

---

The following was outstanding during the three and nine months ended September 30, 2025 and 2024, but were not included in the computation of diluted EPS because the effect was anti-dilutive:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Weighted-average number of shares issuable upon conversion of debt | 33333333 | 33333333 | 33333333 | 33333333 |
| Weighted-average conversion price | $1.50 | $1.50 | $1.50 | $1.50 |

---

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

&nbsp;&nbsp;&nbsp;&nbsp;***(e) <u>Reconciliation of Cash, Cash Equivalents and Restricted Cash</u>:***

Restricted cash amounts in current assets and included in other assets represent cash and cash equivalents required to be deposited into escrow for amounts required for letters of credit related to office leases, and certain deposit requirements for banking arrangements. The restrictions related to the letters of credit will remain in place for the duration of the respective lease. The restrictions related to the banking arrangements will remain in place for the duration of the arrangement.

The components of "Cash, cash equivalents and restricted cash" in the condensed consolidated statements of cash flows were as follows:

---

| | | |
|:---|:---|:---|
| | **September 30,<br>2025** | **December 31,<br>2024** |
| Cash and cash equivalents | $143003 | $135657 |
| Restricted cash and cash equivalents in current assets | 5421 | 4081 |
| Restricted cash and cash equivalents included in other assets | 2483 | 2483 |
| &nbsp;&nbsp;Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $150907 | $142221 |

---

&nbsp;&nbsp;&nbsp;&nbsp;***(f) <u>Goodwill and Other Intangible Assets:</u>***

Goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment on an annual basis, as of October 1, or whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable. The Company follows *ASC 350, Intangibles – Goodwill and Other*, and subsequent updates including *ASU 2011-08, Testing Goodwill for Impairment* and *ASU 2017-14, Simplifying the Test for Goodwill Impairment*. The amendments permit entities to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes that it is more likely than not that a reporting unit's fair value is less than its carrying value or chooses to bypass the optional qualitative assessment, the Company then assesses recoverability by comparing the fair value of the reporting unit to its carrying amount; otherwise, no further impairment test would be required.

In the three months ended September 30, 2025, the Company performed a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment performed the Company concluded that it is not more likely than not that a reporting unit's fair value is less than its carrying value and determined no further impairment test would be required for September 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(g) <u>Related Party Transactions</u>:***

*Agreements with Vector Group Ltd. ("Vector Group").* The Company paid Vector Group $1,050 and $3,150 under the transition services agreement, dated December 21, 2021, by and between the Company and Vector Group (the "Transition Services Agreement") during the three and nine months ended September 30, 2024, respectively. Additionally, the Company paid Vector Group $235 and $1,830 under certain aircraft lease agreements entered into with affiliates of Vector Group (the "Aircraft Lease Agreements") during the three and nine months ended September 30, 2024, respectively. In October 2024 and December 2024, the Aircraft Lease Agreements and Transition Service Agreement, respectively, were terminated.

*Real estate commissions.* Real estate commissions include approximately $3,133 and $12,116 for the three and nine months ended September 30, 2025, respectively, and $308 and $2,325 for the three and nine months ended September 30, 2024, respectively, from projects where the Company has been engaged by certain developers as the sole broker or the co-broker for real estate development projects that Vector Group had previously invested in through its real estate venture investments.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

&nbsp;&nbsp;&nbsp;&nbsp;***(h) <u>Investment and Other Gains (Losses)</u>:***

Investment and other gains (losses) consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net unrealized losses on PropTech convertible trading debt securities | $— | $— | $(44) | $— |
| Net unrealized gains (losses) on long-term investments at fair value | 134 | (22) | (2) | 106 |
| Net gains on long-term investment securities without a readily determinable fair value that does not qualify for the NAV practical expedient | 1225 | 18 | 1303 | 519 |
| Other income | 40 |  | 83 |  |
| Investment and other gains (losses)  | $1399 | $(4) | $1340 | $625 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***<u>(i) Restructuring</u>:***

Employee severance and benefits expensed for the nine months ended September 30, 2025 relate entirely to the reduction in staff and are cash charges. The amount expensed for the nine months ended September 30, 2025 was $1,092 and was included in Restructuring expense in the Company's condensed consolidated statements of operations. The following table presents the changes in the employee severance and benefits liability under the Company's restructuring plan for the nine months ended September 30, 2025:

---

| | |
|:---|:---|
| | **Employee Severance and Benefits** |
| Severance liability balance at January 1, 2025 | $488 |
| Severance expense | 1092 |
| Severance payments | (546) |
| Severance liability at September 30, 2025 | $1034 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(j) <u>Other Comprehensive Income</u>:***

The Company does not have any activity that results in Other Comprehensive Income; therefore, no statement of Comprehensive Income is included in the condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;***(k) <u>Impairment of Fixed Assets</u>:***

The Company recorded an impairment charge of $2,275 for the three and nine months ended September 30, 2025 due to the abandonment of an agent onboarding application.

&nbsp;&nbsp;&nbsp;&nbsp;***(l) <u>Sale of Douglas Elliman Property Management</u>:***

On October 24, 2025 (the "Closing Date"), Douglas Elliman Realty, LLC ("DER") sold its subsidiary, Residential Management Group, LLC, which conducts business as Douglas Elliman Property Management ("DEPM"), for a base purchase price of $85,000, subject to adjustments for cash, indebtedness, transaction expenses and working capital amounts at closing (the "DEPM Sale"). The tax impact of the sale of DEPM will be treated as a discrete item in the fourth quarter of 2025. The DEPM Sale is governed by an agreement (the "Equity Purchase Agreement") that includes representations and warranties for a transaction of this type. DER provided standard seller representations and warranties including, but not limited to, representations and warranties as to valid title to the equity interests in DEPM, due formation, valid existence and good standing, and due authorization to execute the Equity Purchase Agreement and consummate the DEPM Sale. DEPM provided similar standard representations and warranties, as well as validity of material permits and compliance with applicable laws. The purchaser of DEPM provided standard buyer representations and warranties including, but not limited to, representations and warranties regarding due organization, valid existence and good standing, due authorization to execute the Equity Purchase Agreement and perform its obligations thereunder, solvency and investment intent in consummation of the DEPM Sale. The Purchaser has obtained a representations and warranties insurance policy with such coverage serving as the Purchaser's sole remedy with respect to any breach of representations and warranties by DEPM and DER, except for claims related to fraud and specific indemnities.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

The parties agreed to a five-year non-competition covenant applicable to DER in specified territories and a five-year non-solicitation covenant, in each case subject to exceptions. Pursuant to the non-competition covenant, DER has agreed not to own, manage, operate or control any entity engaged in the management of cooperative, condominium and rental apartment buildings in New York and Texas, as well as the other locations where the Purchaser and its affiliates provide services.

DER and DEPM also entered into a trademark license agreement pursuant to which DER will continue to own all right, title and interest in and to certain trademarks and names of DER and DEPM, including the trademark and name "Douglas Elliman," as well as all logos used by DEPM as of the Closing Date. DEPM will have the right for five years to use certain trade names, marks and logos, which were being used as of October 24, 2025, in connection with certain commercial and real estate property management services as well as other ancillary services. In connection with the DEPM Sale, the Purchaser and DEPM have agreed to maintain a referral arrangement with the Company during the term of the trademark license to continue DEPM's long-standing business relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;***(m) <u>Subsequent Events</u>:***

The Company has evaluated subsequent events through November 5, 2025, the date the financial statements were issued and determined that the following events required disclosure:

*Sale of Douglas Elliman Property Management.* See Note 1(l), "Sale of Douglas Elliman Property Management" to the Company's condensed consolidated financial statements.

*Redemption and Repayment of 7.0% Senior Secured Convertible Note.* See Note 7, "Notes Payable and Other Obligations" to the Company's condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;***(n) <u>New Accounting Pronouncements</u>:***

*<u>ASUs</u> <u>to be adopted in future periods</u>:*

In December 2023, the FASB issued Accounting Standards Update ("ASU") *2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures*. The ASU requires that all public entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The ASU is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and will adopt the standard in the year ending December 31, 2025.

In November 2024, the FASB issued *ASU 2024-03, Income Statement (Topic 220) – Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses*. The ASU requires enhanced disclosures around disaggregation of certain income statement expense lines into specified categories. The new standard is effective on a prospective basis for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and anticipates adopting the standard in the year ending December 31, 2026.

In September 2025, the FASB issued *ASU 2025-06, Intangibles, Goodwill and Other, Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software*. ASU 2025-06 modernizes the accounting for internal-use software under ASC 350-40 by aligning it with current development practices, especially agile and iterative methods. ASU 2025-06 clarifies when to begin capitalizing costs, improves operability across different development approaches, and enhances disclosure requirements. ASU 2025-06 is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and anticipates adopting the standard in the year ending December 31, 2028.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

**2.**&nbsp;&nbsp;&nbsp;&nbsp;**<u>REVENUE RECOGNITION</u>**

**Disaggregation of Revenue**

In the following tables, revenue is disaggregated by major services line and primary geographical market:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| | **New York City** | **Northeast** | **Southeast** | **West** | **Total** |
| <u>Revenues</u>: |  |  |  |  |  |
| &nbsp;&nbsp;Commission and other brokerage income - existing home sales | $72556 | $58099 | $48427 | $47193 | $226275 |
| &nbsp;&nbsp;Commission and other brokerage income - development marketing | 9558 | 73 | 12948 | 1500 | 24079 |
| &nbsp;&nbsp;Property management revenue | 9287 | 151 |  |  | 9438 |
| &nbsp;&nbsp;Escrow and title fees | 90 | 8 |  | 2948 | 3046 |
| &nbsp;&nbsp;Total revenue | $91491 | $58331 | $61375 | $51641 | $262838 |
|  | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** |
|  | **New York City** | **Northeast** | **Southeast** | **West** | **Total** |
| <u>Revenues</u>: |  |  |  |  |  |
| &nbsp;&nbsp;Commission and other brokerage income - existing home sales | $77936 | $53281 | $54030 | $44270 | $229517 |
| &nbsp;&nbsp;Commission and other brokerage income - development marketing | 7332 | 120 | 16359 | 746 | 24557 |
| &nbsp;&nbsp;Property management revenue | 8773 | 187 |  |  | 8960 |
| &nbsp;&nbsp;Escrow and title fees | 19 | 9 |  | 3254 | 3282 |
| &nbsp;&nbsp;Total revenue | $94060 | $53597 | $70389 | $48270 | $266316 |
|  | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
|  | **New York City** | **Northeast** | **Southeast** | **West** | **Total** |
| <u>Revenues</u>: |  |  |  |  |  |
| &nbsp;&nbsp;Commission and other brokerage income - existing home sales | $209812 | $150883 | $190698 | $138644 | $690037 |
| &nbsp;&nbsp;Commission and other brokerage income - development marketing | 24563 | 336 | 30496 | 4081 | 59476 |
| &nbsp;&nbsp;Property management revenue | 28842 | 553 |  |  | 29395 |
| &nbsp;&nbsp;Escrow and title fees | 289 | 23 |  | 8387 | 8699 |
| &nbsp;&nbsp;Total revenue | $263506 | $151795 | $221194 | $151112 | $787607 |
|  | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** |
|  | **New York City** | **Northeast** | **Southeast** | **West** | **Total** |
| <u>Revenues</u>: |  |  |  |  |  |
| &nbsp;&nbsp;Commission and other brokerage income - existing home sales | $205962 | $138487 | $189742 | $138208 | $672399 |
| &nbsp;&nbsp;Commission and other brokerage income - development marketing | 18253 | 341 | 21281 | 2378 | 42253 |
| &nbsp;&nbsp;Property management revenue | 27127 | 574 |  |  | 27701 |
| &nbsp;&nbsp;Escrow and title fees | 440 | 266 | 19 | 9228 | 9953 |
| &nbsp;&nbsp;Total revenue | $251782 | $139668 | $211042 | $149814 | $752306 |

---

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

**Contract Balances**

The following table provides information about contract assets and contract liabilities from development marketing and commercial leasing contracts with customers:

---

| | | |
|:---|:---|:---|
| | **September 30,<br>2025** | **December 31,<br>2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, which are included in receivables | $2379 | $1789 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets, net, which are included in other current assets | 8220 | 10935 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets, net, which are in other assets | 44571 | 37123 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payables, which are included in commissions payable | 1737 | 1302 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities, which are in current liabilities | 15867 | 18225 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities, which are in other liabilities | 74302 | 63765 |

---

The Company recognized revenues of $9,615 and $20,460 for the three and nine months ended September 30, 2025, respectively, that were included in the contract liabilities balances at December 31, 2024. The Company recognized revenues of $8,293 and $12,508 for the three and nine months ended September 30, 2024, respectively, that were included in the contract liabilities balances at December 31, 2023.

**3.**&nbsp;&nbsp;&nbsp;&nbsp;**<u>CURRENT EXPECTED CREDIT LOSSES</u>**

*Real estate broker agent receivables:* Douglas Elliman Realty is exposed to credit losses for various amounts due from real estate agents, which are included in Agent receivables, net on the condensed consolidated balance sheets, net of an allowance for credit losses. The Company estimates its allowance for credit losses on receivables from agents based on an evaluation of aging of receivables from agents, agent sales in pipeline, any security, specific exposures, historical experience of collections from the individual agents, and current and expected future market trends. The Company estimated that the credit losses for these receivables were $4,835 and $4,783 at September 30, 2025 and December 31, 2024, respectively.

The following table summarizes changes in the allowance for credit losses for the nine months ended September 30, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **January 1,<br>2025** | **Current Period Provision** | | **Write-offs** | **Recoveries** | **September 30,<br>2025** |
| <u>Allowance for credit losses:</u> |  |  |  |  |  |  |
| Real estate broker agent receivables | $4783 | $3726 | **(1)** | $3674 | $— | $4835 |

---

_____________________________

<sup>(1)</sup> The current period provision for the real estate broker agent receivables is included in "General and administrative expenses" in the Company's condensed consolidated statements of operations.

The following table summarizes changes in the allowance for credit losses for the nine months ended September 30, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **January 1,<br>2024** | **Current Period Provision** | | **Write-offs** | **Recoveries** | **September 30,<br>2024** |
| <u>Allowance for credit losses:</u> |  |  |  |  |  |  |
| Real estate broker agent receivables | $5575 | $4138 | **(1)** | $4482 | $— | $5231 |

---

_____________________________

<sup>(1)</sup> The current period provision for the real estate broker agent receivables is included in "General and administrative expenses" in the Company's condensed consolidated statements of operations.

 

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

**4.**&nbsp;&nbsp;&nbsp;&nbsp;**<u>LEASES</u>**

The Company has operating leases for corporate and sales offices as well as equipment. The components of lease expense were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Operating lease cost | $7030 | $7255 | $21657 | $23515 |
| Short-term lease cost | 193 | 194 | 561 | 643 |
| Variable lease cost | 1012 | 1111 | 3257 | 3172 |
| Less: Sublease income | (101) | (30) | (133) | (117) |
| Total lease cost | $8134 | $8530 | $25342 | $27213 |

---

Supplemental cash flow information related to leases was as follows:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** |
| | **2025** | **2024** |
| <u>Cash paid for amounts included in measurement of lease liabilities:</u> |  |  |
| Operating cash flows from operating leases | $23856 | $24874 |
| <u>Right-of-use assets obtained in exchange for lease obligations:</u> |  |  |
| Operating leases | $1546 | $7579 |

---

Supplemental balance sheet information related to leases was as follows:

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| <u>Weighted average remaining lease term:</u> |  |  |
| Operating leases | 5.22 | 5.73 |
| <u>Weighted average discount rate:</u> |  |  |
| Operating leases | 8.66% | 8.58% |

---

 As of September 30, 2025, maturities of lease liabilities were as follows:

---

| | |
|:---|:---|
| | **Operating Leases** |
| Period Ending December 31: |  |
| Remainder of 2025 | $7742 |
| 2026 | 29538 |
| 2027 | 26300 |
| 2028 | 22855 |
| 2029 | 18465 |
| 2030 | 13480 |
| Thereafter | 19141 |
| &nbsp;&nbsp;&nbsp;Total lease payments | 137521 |
| &nbsp;&nbsp;&nbsp; Less imputed interest | (29384) |
| &nbsp;&nbsp;&nbsp;Total | $108137 |

---

As of September 30, 2025, the Company had a $2,020 undiscounted lease payment relating to a real estate lease that has not yet commenced. The operating lease will commence in the fourth quarter of 2025 with a lease term of approximately 10.3 years.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

**5.&nbsp;&nbsp;&nbsp;&nbsp;<u>LONG-TERM INVESTMENTS</u>** 

Long-term investments consisted of the following:

---

| | | |
|:---|:---|:---|
| | **September 30,<br>2025** | **December 31,<br>2024** |
| PropTech convertible trading debt securities | $1210 | $1254 |
| Long-term investment securities at fair value <sup>(1)</sup> | 3233 | 3127 |
| PropTech investments at cost | 6150 | 6400 |
| PropTech investments under equity method | 809 | 619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 11402 | 11400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less PropTech current convertible trading debt securities <sup>(2)</sup> |  | 1254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less PropTech investments accounted for under the equity method <sup>(3)</sup> | 809 | 619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term investments | $10593 | $9527 |

---

_____________________________

<sup>(1)</sup> These assets are measured at net asset value ("NAV") as a practical expedient under ASC 820.

<sup>(2)</sup> These amounts are included in "Other current assets" on the condensed consolidated balance sheets.

<sup>(3)</sup> These amounts are included in "Equity-method investments" on the condensed consolidated balance sheets.

Net realized and unrealized gains (losses) on long-term investment securities were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net unrealized losses on PropTech convertible trading debt securities | $— | $— | $(44) | $— |
| Net unrealized gains (losses) on long-term investments at fair value | 134 | (22) | (2) | 106 |
| Net gains on long-term investment securities without a readily determinable fair value that does not qualify for the NAV practical expedient | 1225 | 18 | 1303 | 519 |
| Net realized and unrealized gains (losses) on long-term investment securities | $1359 | $(4) | $1257 | $625 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a) PropTech Convertible Trading Debt Securities:***

These securities are classified as trading debt securities and are accounted for at fair value. The remaining convertible note matures in February 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b) Long-Term Investment Securities at Fair Value:***

The following is a summary of net unrealized gains (losses) on long-term investment securities at fair value during the three and nine months ended September 30, 2025 and 2024, respectively:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net unrealized gains (losses) on long-term investments at fair value | $134 | $(22) | $(2) | $106 |

---

The Company has unfunded commitments of $480 related to long-term investment securities at fair value as of September 30, 2025.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(c) Equity Securities Without Readily Determinable Fair Values That Do Not Qualify for the NAV Practical Expedient***

Equity securities without readily determinable fair values that do not qualify for the NAV practical expedient consisted of investments in various limited liability companies as of September 30, 2025. The total carrying value of equity securities without readily determinable fair values that do not qualify for the NAV practical expedient was $6,150 as of September 30, 2025 and $6,400 as of December 31, 2024. The Company did not record an impairment expense for the nine months ended September 30, 2025.

The Company recorded an impairment expense of $489 for the nine months ended September 30, 2024. The impairment was included in "Investment and other gains (losses)" on the condensed consolidated statements of operations.

**6. <u>EQUITY METHOD INVESTMENTS</u>**

Equity method investments consisted of the following:

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Ancillary services ventures | $2197 | $2020 |

---

At September 30, 2025, the Company's ownership percentages in these investments ranged from 5.3% to 50.0%. Due to the Company's ability to exercise significant influence, but not control, related to these investments, the Company applies the equity method of accounting for these investments.

*VIE Consideration:*

The Company has determined that the Company is not the primary beneficiary of any of its equity method investments because it does not control the activities that most significantly impact the economic performance of each investment. The Company determined that the entities were VIEs but the Company was not the primary beneficiary. Therefore, the Company's equity method investments have been accounted for under the equity method of accounting.

*Maximum Exposure to Loss:*

The Company's maximum exposure to loss from its equity method investments consists of the net carrying value of the investments adjusted for any future capital commitments and/or guarantee arrangements. The maximum exposure to loss was $2,197 as of September 30, 2025.

**7.**&nbsp;&nbsp;&nbsp;&nbsp;**<u>NOTES PAYABLE AND OTHER OBLIGATIONS</u>**

Notes payable and other obligations consisted of:

---

| | | |
|:---|:---|:---|
| | **September 30,<br>2025** | **December 31, 2024** |
| Convertible Notes, net of unamortized discount of $15,317 and $17,330 | $34683 | $32670 |
| Aggregate carrying value | $34683 | $32670 |

---

\*The fair value of the derivative embedded within the 7.0% Convertible Notes ($63,413 at September 30, 2025 and $30,253 at December 31, 2024), is separately classified as a derivative liability in the condensed consolidated balance sheets.

***<u>7.0%</u> <u>Convertible Notes due 2029:</u>***

In connection with and upon consummation of the DEPM Sale, on October 24, 2025, the Company repaid and redeemed all of its 7% Convertible Notes due 2029 (the "Convertible Notes") for an aggregate payment of $95,000, including approximately $1,400 of accrued interest (the "Redemption"). The liens on the assets of the Company and the subsidiary guarantors were released upon Redemption. The Redemption was effected because the noteholders informed the Company that they were not willing to waive their contractual redemption rights with respect to the Convertible Notes but would agree to a redemption of the Convertible Notes in connection with the consummation of the DEPM Sale.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

***<u>Embedded Derivative on the Convertible Debt:</u>***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Convertible Notes | $578 | $487 | $1660 | $487 |
| Interest expense associated with embedded derivative | $578 | $487 | $1660 | $487 |

---

A summary of non-cash changes in fair value of derivative embedded within convertible debt is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Convertible Notes | $15445 | $20166 | $33160 | $20166 |
| Loss on changes in fair value of derivative embedded within convertible debt | $15445 | $20166 | $33160 | $20166 |

---

***<u>Fair</u> <u>V</u><u>alues of Notes Payable and Other Obligations:</u>***

The estimated fair value of the Company's notes payable is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Carrying<br>Value** | **Fair<br>Value** | **Carrying<br>Value** | **Fair<br>Value** |
| Notes payable | $34683 | $41123 | $32670 | $41002 |
| Notes payable and other obligations | $34683 | $41123 | $32670 | $41002 |

---

Notes payable and other obligations are recorded on the condensed consolidated balance sheets at amortized cost. The determinations of fair values disclosed above would be classified as Level 3 under the fair value hierarchy disclosed in Note 10. "Fair Value Measurements" to the Company's condensed consolidated financial statements if such liabilities were recorded on the condensed consolidated balance sheets at fair value.

***<u>Letters of Credit:</u>***

As of September 30, 2025 and December 31, 2024, the Company had outstanding $2,645 and $2,990, respectively, of letters of credit, collateralized by certificates of deposit. The letters of credit have been issued as security deposits for leases of office space.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

**8.&nbsp;&nbsp;&nbsp;&nbsp;<u>COMMITMENTS AND CONTINGENCIES</u>** 

***Lease Commitments:***

The Company leases office space under non-cancellable operating lease agreements. See Note 4. "Leases" to the Company's condensed consolidated financial statements for further discussion.

***Legal Matters:***

The Company is involved in litigation in the normal course of its business and otherwise. Some claims are covered by the Company's insurance policies in excess of any applicable retention. Other claims are not covered by the Company's insurance policies, and the Company seeks contribution toward the payment of costs and expenses from agents for non-covered claims when applicable pursuant to the Company's agent policies. The Company believes that the resolution of ordinary course matters will not have a material adverse effect on the financial position, results of operations or cash flows of the Company.

In October 2023, individual plaintiffs filed an action on behalf of a putative national class of home sellers from October 2019 through the present in the Western District of Missouri against the National Association of Realtors ("NAR") and certain real estate brokerage firms, including the Company, alleging anticompetitive behavior in violation of federal antitrust laws arising from NAR's requirement that sellers' agents for Multiple Listing Service ("MLS") listed properties offer to pay a portion of commissions received on the sale of such properties to buyers' agents (the *Gibson* case).

Thereafter, additional litigation was filed by other plaintiffs on behalf of putative classes of home sellers from 2019 to the present against certain real estate brokerage firms, including the Company and/or its subsidiaries, alleging anticompetitive behavior, similar to the *Gibson* case: (i) the *March* case (November 2023 – Southern District of New York) – a putative class action on behalf of home sellers in Manhattan from November 2019 through the present; (ii) the *Friedman* case (January 2024 – Southern District of New York) – a putative class action on behalf of home sellers in certain parts of Brooklyn from January 2020 through present; (iii) the *Umpa* case (December 2023 - Western District of Missouri) – putative class action on behalf of home sellers nationwide (with certain markets excluded) from December 2019 through present, which has now been consolidated into the *Gibson* case; (iv) the *Whaley* case (January 2024 - District of Nevada) – putative class action on behalf of home sellers in Nevada from January 2020 through the present, and (v) the *Boykin* case (February 2024 - District of Nevada) – putative class action on behalf of home sellers in Nevada from February 2020 through the present, which has now been consolidated into the *Whaley* case.

In April 2024, the Company entered into a settlement agreement (the "Settlement Agreement") to resolve, on a nationwide basis, the *Gibson* and *Umpa* cases (the "Lawsuits"). On April 30, 2024, the Court in the Lawsuits preliminarily approved the settlement, preliminarily certified the proposed settlement class and stayed the cases against the Company pending final approval of the Settlement Agreement. The Settlement Agreement is currently being challenged on appeal in the U.S. Court of Appeals for the Eighth Circuit.

After preliminary approval, the Company obtained stays of the remaining actions against it, other than the *Lutz* case described below. The final approval hearing for the settlement took place on October 31, 2024, and on November 4, 2024, the Settlement Agreement received final court approval and became effective as of that date.

The settlement resolves all claims on a nationwide basis by the plaintiffs and proposed settlement class members in the Lawsuits, which includes, but is not limited to, all claims concerning brokerage commissions by the proposed settlement class members that were asserted in other lawsuits against the Company and its subsidiaries (collectively, the "Claims"), and releases the Company, its subsidiaries, and affiliated agents from all Claims. The settlement is not an admission of liability, nor does the Company concede or validate any of the claims asserted against it.

Under the Settlement Agreement, the Company paid $7,750 into an escrow fund on June 12, 2024, and agreed to pay two $5,000 contingent payments subject to certain financial contingencies on or before December 31, 2027 (collectively, the "Settlement Amount"). The contingent payments may be accelerated under certain circumstances. The Company recognized an expense of $17,750 for the year ended December 31, 2024.

In addition, the Company agreed to make certain changes to its business practices and emphasize certain practices that have been a part of the Company's longstanding policies and practices, including: reminding its brokerages and agents that the

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

Company has no rule requiring agents to make or accept offers of compensation; requiring its brokerages and agents to clearly disclose to clients that commissions are not set by law and are fully negotiable; prohibiting its brokerages and buyer agents from claiming buyer agent services are free; requiring its brokerages and agents to disclose to the buyer the listing broker's offer of compensation for prospective buyers' agents as soon as possible; prohibiting its brokerages and agents from using any technology (or manual methods) to sort listings by offers of compensation, unless requested by the client; reminding its brokerages and agents of their obligation to show properties regardless of compensation for buyers' agents for properties that meet the buyer's priorities; and developing training materials for its brokerages and agents that support all the practice changes outlined in the injunctive relief.

While most of the industry-wide antitrust class action lawsuits launched by plaintiffs on behalf of a putative class of home sellers have been settled (although appeals challenging the settlements are still pending), including those against the Company, certain suits launched by plaintiffs on behalf of a putative class of home buyers are still pending. In November 2023, individual plaintiffs filed an action on behalf of a putative national class of home buyers from 1996 to the present in the Northern District of Illinois against certain real estate brokerage firms (the "*Batton II* case"), including the Company, alleging anticompetitive behavior similar to the now resolved *Gibson* case. In June 2024, plaintiffs voluntarily dismissed this action against the Company without prejudice. However, on June 11, 2024, plaintiffs' counsel from the *Batton II* case added the Company as a defendant in the *Lutz* case in the United States District Court for the Southern District of Florida, No. 4:24-cv-10040 (KMM). This case was brought by individual plaintiffs who filed an action on behalf of a putative national class of home buyers from December 1996 through the present against certain real estate brokerage firms, alleging anticompetitive behavior in violation of federal antitrust laws, state antitrust and consumer protection laws, as well as asserting an unjust enrichment claim. The allegations and claims in the *Lutz* case are similar to the *Batton II* case. As this case was brought by a putative national class of home buyers, it is not subsumed within the Settlement Agreement resolving the antitrust actions brought by home sellers against the Company, except to the extent that the class includes home buyers who also are part of the home sellers settling class referenced above that released their claims as home buyers. On July 15, 2025, all of the *Lutz* plaintiffs' claims against the Company were dismissed. The federal antitrust claim was dismissed with prejudice, and the state antitrust, consumer protection, and unjust enrichment claims were dismissed without prejudice with 21 days to replead. The *Lutz* plaintiffs filed their Third Amended Complaint on August 5, 2025, which the Company has moved to dismiss. The Company has not provided any amounts in the condensed consolidated financial statements for unfavorable outcomes for these industry-wide home buyer antitrust class action lawsuits as management concluded that it is not probable that a loss has been incurred and is unable to reasonably estimate the possible loss or range of loss that could result from an unfavorable outcome of any pending industry-wide home buyer antitrust class action lawsuits.

Two real estate salespersons formerly associated with the Company as independent contractors, have, together or separately, been named as defendants in multiple complaints by women accusing them of sexual assault and related wrongdoing, and face criminal charges related to similar alleged conduct. The Company and its former Chief Executive Officer were named as defendants in one of these lawsuits. Plaintiffs have brought claims against the Company under the New York Gender-Motivated Violence Act and sex trafficking, negligence, and negligent hiring, retention, and supervision claims. The Company denies liability and intends to defend vigorously against these claims. The Company is aware that other claims may be asserted against it and possibly against certain former Company leadership arising out of matters related to the two former real estate salespersons.

Litigation is subject to uncertainty, and it is possible that there could be adverse developments in pending cases or that more cases, including antitrust lawsuits, could be commenced. With the commencement of any new case, the defense costs and the risks relating to the unpredictability of litigation increase. Legal defense costs are expensed as incurred. Management reviews on a quarterly basis with counsel all pending litigation and evaluates the probability of a loss being incurred and whether an estimate can be made of the possible loss or range of loss that could result from an unfavorable outcome. An unfavorable outcome or settlement of pending litigation could encourage the commencement of additional litigation. The Company is unable to reasonably estimate the financial impact of these litigation matters. For the three and nine months ended September 30, 2025, the Company incurred legal expenses and settlement costs totaling $9,638 and $17,447, respectively (included within "General and administrative expenses" on the condensed consolidated statements of operations, of which include $5,014 and $3,740 for settlement expenses, respectively). For the three and nine months ended September 30, 2024, the Company incurred legal expenses and settlement costs totaling $5,708 ($4,648 is included within "General and administrative expenses", of which includes $54 for settlement expense, and $1,060 is included within "Operations and support expenses" on the condensed consolidated statement of operations) and $27,446 ($17,750 is included within "Antitrust litigation settlement expense", $6,807 is included within "General and administrative expenses", of which includes $431 for settlement expense, and $2,889 is included within "Operations and support expenses" on the condensed consolidated statement of operations), respectively. The Company's condensed consolidated financial position, results of operations or cash flows could be materially adversely affected from an unfavorable outcome in, or settlement of, any of these matters.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

*Accounting Policy*. The Company and its subsidiaries record provisions in their condensed consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable and the amount of loss can be reasonably estimated.

**9.&nbsp;&nbsp;&nbsp;&nbsp;<u>INCOME TAXES</u>**

Income tax expense was $11 for the three and nine months ended September 30, 2025, and $0 and $1,368 for the three and nine months ended September 30, 2024, respectively. Effective March 31, 2024, the Company established a valuation allowance for the full amount of deferred tax assets and recorded an expense related to the change in the prior year valuation allowance of $977.

*Calculation of provision for income taxes in interim periods.* The Company calculates its provision for income taxes for interim reporting periods by estimating its annual effective income tax rate based on full year projections, which do not include the impact of discrete items. It then applies the annual effective income tax rate against year-to-date pretax income to record income tax expense and then adjusts its provision for income tax expense for any discrete items. Because the Company had established a full valuation allowance against its deferred tax assets at each of December 31, 2024 and September 30, 2025, there were no discrete items for the three and nine months ended September 30, 2025.

The tax impact of the sale of the Company's property management division in October 2025 will be treated as a discrete item in the fourth quarter of 2025.

*Valuation Allowance*. The Company records a valuation allowance to reduce the deferred tax assets reported if, based on the weight of available evidence, it is more likely than not that some portion or all the deferred tax assets will not be realized.

**10.&nbsp;&nbsp;&nbsp;&nbsp;<u>FAIR VALUE MEASUREMENTS</u>** 

The Company's financial assets and liabilities subject to fair value measurements were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value Measurements as of September 30, 2025** | **Fair Value Measurements as of September 30, 2025** | **Fair Value Measurements as of September 30, 2025** | **Fair Value Measurements as of September 30, 2025** | **Fair Value Measurements as of September 30, 2025** |
|<br>**Description** | **Total** | **Quoted Prices in Active Markets for Identical Assets<br>(Level 1)** | **Significant Other Observable Inputs<br>(Level 2)** | **Significant Unobservable Inputs<br>(Level 3)** | **Total Gains (Losses)** |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market funds <sup>(1)</sup> | $84319 | $84319 | $— | $— |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. treasury bills <sup>(2)</sup> | 44275 | 44275 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit <sup>(3)</sup> | 162 |  | 162 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term investments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PropTech convertible trading debt securities | 1210 |  |  | 1210 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term investment securities at fair value <sup>(4)</sup> | 3233 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term investments | 4443 |  |  | 1210 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $133199 | $128594 | $162 | $1210 |  |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value of derivative embedded within convertible debt | 63413 |  |  | 63413 | (33160) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $63413 | $— | $— | $63413 | $(33160) |

---

`

_____________________________

<sup>(1)</sup> Amounts included in Cash and cash equivalents on the condensed consolidated balance sheets, except for $5,421 that is included in current restricted cash and cash equivalents and $2,483 that is included in non-current restricted assets within Other assets.

<sup>(2)</sup> $44,275 included in Cash and cash equivalents.

<sup>(3)</sup> $162 included in Other assets on the condensed consolidated balance sheets.

<sup>(4)</sup> In accordance with ASC Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value Measurements as of December 31, 2024** | **Fair Value Measurements as of December 31, 2024** | **Fair Value Measurements as of December 31, 2024** | **Fair Value Measurements as of December 31, 2024** | **Fair Value Measurements as of December 31, 2024** |
|<br>**Description** | **Total** | **Quoted Prices in Active Markets for Identical Assets<br>(Level 1)** | **Significant Other Observable Inputs<br>(Level 2)** | **Significant Unobservable Inputs<br>(Level 3)** | **Total Gains (Losses)** |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market funds <sup>(1)</sup> | $85535 | $85535 | $— | $— |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. treasury bills <sup>(2)</sup> | 52744 | 52744 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit <sup>(3)</sup> | 507 |  | 507 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;PropTech convertible trading debt securities | 1254 |  |  | 1254 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term investments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term investment securities at fair value <sup>(4)</sup> | 3127 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term investments | 3127 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $143167 | $138279 | $507 | $1254 |  |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value of derivative embedded within convertible debt | 30253 |  |  | 30253 | (14978) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $30253 | $— | $— | $30253 | $(14978) |
| **Nonrecurring fair value measurements** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term investments <sup>(5)</sup> | $— |  |  | $— | $(489) |
|  | $— |  |  | $— | $(489) |

---

_____________________________

<sup>(1)</sup> Amounts included in Cash and cash equivalents on the condensed consolidated balance sheets, except for $4,081 that is included in current restricted assets and $2,483 that is included in non-current restricted assets within Other assets.

<sup>(2)</sup> $42,940 included in Cash and cash equivalents and $9,804 included in Investment securities at fair value.

<sup>(3)</sup> $345 included in Other current assets and $162 included in Other assets on the condensed consolidated balance sheets.

<sup>(4)</sup> In accordance with ASC Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy.

<sup>(5)</sup> Long-term investments with a carrying amount of $489 were written down to their fair value of $0, resulting in an impairment charge of $489, which was included in earnings.

The fair value of the Level 2 certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is the rate offered by the financial institution.

The fair values of the Level 3 PropTech convertible trading debt securities were derived using a discounted cash flow model utilizing a probability-weighted expected return method based on the probabilities of different potential outcomes for the convertible trading debt securities.

The long-term investments are based on NAV per share provided by the partnerships based on the indicated market value of the underlying assets or investment portfolio. In accordance with ASC Subtopic 820-10, these investments are not classified under the fair value hierarchy disclosed above because they are measured at fair value using the NAV practical expedient.

The fair value of the derivative embedded within the convertible debt and the fair value of the convertible debt itself was derived using a binomial lattice valuation model. The derivative has been classified as Level 3. Change in fair value of derivative embedded within convertible debt are presented in the condensed consolidated statements of operations. The value of the embedded derivative is contingent on changes in interest rates, the Company's stock price, stock price volatility, and the Company's dividend yield. The Company's stock price, volatility, and dividend yield are based on market observable inputs. The interest rate component of the value of the note is computed by calibrating the yield as of the issuance date, such that the value of the convertible note is equal to the principal net of the original issue discount. This yield is adjusted by the change in spreads from the discount curve equivalent to the Company's implied credit rating.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

The changes in the fair value of the Level 3 assets as of September 30, 2025 were as follows:

---

| | |
|:---|:---|
| | **2025** |
| Balance as of January 1 | $1254 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of PropTech convertible trading debt securities | (44) |
| Balance as of September 30 | $1210 |

---

The changes in the fair value of the Level 3 liabilities as of September 30, 2025 were as follows:

---

| | |
|:---|:---|
| | **2025** |
| Balance as of January 1 | $30253 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative embedded within convertible debt | 33160 |
| Balance as of September 30 | $63413 |

---

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows as of September 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantitative Information about Level 3 Fair Value Measurements** | **Quantitative Information about Level 3 Fair Value Measurements** | **Quantitative Information about Level 3 Fair Value Measurements** | **Quantitative Information about Level 3 Fair Value Measurements** |
| | **Fair Value at**<br>**September 30,<br>2025** |<br>**Valuation <br>Technique** |<br>**Unobservable <br>Input** |<br>**Range <br>(Actual)** |
| PropTech convertible trading debt securities | $1210 | Discounted cash flow | Interest rate | 5% |
|  |  |  | Maturity | Feb 2027 |
|  |  |  | Volatility | 44.29% |
|  |  |  | Discount rate | 27.85% |
| Fair value of derivative embedded within convertible debt | $63413 | Binomial Lattice Model | Assumed annual stock dividend | —% |
|  |  |  | Assumed annual cash dividend | —% |
|  |  |  | Stock price | 2.86 |
|  |  |  | Volatility | 50% |
|  |  |  | Risk-free rate | 3.60% |
|  |  |  | Implied credit spread | 9.56% |

---

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows as of December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantitative Information about Level 3 Fair Value Measurements** | **Quantitative Information about Level 3 Fair Value Measurements** | **Quantitative Information about Level 3 Fair Value Measurements** | **Quantitative Information about Level 3 Fair Value Measurements** |
| | **Fair Value at**<br>**December 31,<br>2024** |<br>**Valuation Technique** |<br>**Unobservable <br>Input** |<br>**Range <br>(Actual)** |
| PropTech convertible trading debt securities | $1254 | Discounted cash flow | Interest rate | 5%  |
|  |  |  | Maturity | Feb 2025 |
|  |  |  | Volatility | 46.82%  |
|  |  |  | Discount rate | 25.65%  |
| Fair value of derivative embedded within convertible debt | $30253 | Binomial Lattice Model | Assumed annual stock dividend | —% |
|  |  |  | Assumed annual cash dividend | —% |
|  |  |  | Stock price | 1.67 |
|  |  |  | Volatility | 50% |
|  |  |  | Risk-free rate | 4.36% |
|  |  |  | Implied credit spread | 8.06% |

---

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record assets and liabilities at fair value on a nonrecurring basis. Generally, assets and liabilities are recorded at fair value on a nonrecurring basis because of impairment charges. As discussed in Note 1(k), the Company recorded an impairment of fixed assets of $2,275 for the three and nine months ended September 30, 2025 on the condensed consolidated statements of operations. The Company had no nonrecurring nonfinancial assets subject to fair value measurements as of December 31, 2024.

 **11.&nbsp;&nbsp;&nbsp;&nbsp;<u>SEGMENT INFORMATION</u>** 

Prior to January 1, 2025 (including, for the three and nine months ended September 30, 2024 and year ended December 31, 2024), the Company's reportable segments were Real Estate Brokerage and Corporate Activities and Other, which consisted of the operations of our holding company which included the Company's investment business that invests in select PropTech opportunities through our DOUG Ventures subsidiary. Effective on January 1, 2025, the Company is now managed as a single operating and reporting segment.

Previous reportable segments were recast because our chief executive officer ("CEO"), who became CEO in October 2024 and acts as the chief operating decision maker ("CODM"), began reviewing the operating performance of the Company as a whole, instead of on a segment basis as was done prior to January 1, 2025.

Furthermore, the CODM now evaluates the operating results and revenues of the Company as total real estate services, including PropTech investments, to make decisions. This change led to revisions in the nature and substance of information regularly provided to and used by the CODM and served to align our reported results to evaluate the performance of our businesses and related trends. The CODM uses and compares results, which includes operating loss and investment and other income, to prior periods and, based on these results, assesses performance and identifies trends of ongoing operations.

As the Company is now managed as a single operating and reportable segment, the measure of segment profit or loss is the condensed consolidated net loss. The measure of segment assets is reported on the Company's condensed consolidated balance sheets.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

As a result, beginning in the first quarter of 2025, the Company began to report its financial results as a single reportable segment. Presentation of the Company's financial information for the three and nine months ended September 30, 2025 and 2024, and year ended December 31, 2024 is reported as one segment. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. Prior period information has been recast to conform to the current presentation.

Financial information for the Company's revenue and expenses for the three and nine months ended September 30, 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Total Revenue | $262838 | $266316 | $787607 | $752306 |
| <u>Operating expenses:</u> |  |  |  |  |
| &nbsp;&nbsp;Real estate agent commissions | 192771 | 199133 | 583890 | 564606 |
| &nbsp;&nbsp;Sales and marketing | 19711 | 19240 | 59519 | 62691 |
| &nbsp;&nbsp;Operations and support | 17575 | 18774 | 53078 | 55572 |
| &nbsp;&nbsp;General and administrative | 32220 | 28659 | 85722 | 80530 |
| &nbsp;&nbsp;Technology | 5964 | 6025 | 17265 | 17301 |
| &nbsp;&nbsp;Depreciation and amortization | 2183 | 1898 | 6302 | 5808 |
| &nbsp;&nbsp;Antitrust litigation settlement expense |  |  |  | 17750 |
| &nbsp;&nbsp;Impairment of fixed assets | 2275 |  | 2275 |  |
| &nbsp;&nbsp;Restructuring | 794 | 18 | 1092 | 616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating loss | (10655) | (7431) | (21536) | (52568) |
| Other income (expenses): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (1573) | (1461) | (4648) | (1475) |
| &nbsp;&nbsp;&nbsp;Interest income | 1366 | 1551 | 3986 | 3989 |
| &nbsp;&nbsp;Equity in (losses) earnings from equity-method investments | (23) | 62 | 178 | 49 |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative embedded within convertible debt | (15445) | (20166) | (33160) | (20166) |
| &nbsp;&nbsp;Investment and other gains (losses) | 1399 | (4) | 1340 | 625 |
| Loss before provision for income tax | (24931) | (27449) | (53840) | (69546) |
| &nbsp;&nbsp;&nbsp;Income tax expense | 11 |  | 11 | 1368 |
| Net loss | (24942) | (27449) | (53851) | (70914) |
| Net loss attributed to non-controlling interest | 251 | 269 | 502 | 595 |
| Net loss attributed to Douglas Elliman Inc. | $(24691) | $(27180) | $(53349) | $(70319) |

---

For the three months ended September 30, 2025, $1,891 of stock-based compensation is included within General and administrative expenses and $271 is included within Operations and support expenses on the condensed consolidated statements of operations. For the three months ended September 30, 2024, $3,616 of stock-based compensation is included within General and administrative expenses and $271 is included within Operations and support expenses on the condensed consolidated statements of operations.

For the nine months ended September 30, 2025, $5,517 of stock-based compensation is included within General and administrative expenses and $804 is included within Operations and support expenses on the condensed consolidated statements of operations. For the nine months ended September 30, 2024, $9,924 of stock-based compensation is included within General and administrative expenses and $793 is included within Operations and support expenses on the condensed consolidated statements of operations.

------

**DOUGLAS ELLIMAN INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)**

**(Dollars in Thousands, Except Per Share Amounts)**

**<u>Unaudited</u>**

The Company's identifiable assets and capital expenditures for September 30, 2025 and December 31, 2024 were as follows:

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| | |
|:---|:---|
| <u>Nine Months Ended September 30, 2025</u> |  |
| &nbsp;&nbsp;Identifiable assets | $480602 |
| &nbsp;&nbsp;Capital expenditures | $3041 |
| <u>Year Ended December 31, 2024</u> |  |
| &nbsp;&nbsp;Identifiable assets | $493888 |
| &nbsp;&nbsp;Capital expenditures | $5534 |

---

**12. <u>ESCROW FUNDS IN HOLDING</u>**

As a service to its customers, Portfolio Escrow Inc., a subsidiary of the Company, administers escrow and trust deposits which represent undisbursed amounts received for the settlement of real estate transactions. Deposits at FDIC-insured institutions are insured up to $250. Portfolio Escrow Inc. had escrow funds on deposit of $20,640 and $37,967 as of September 30, 2025 and December 31, 2024, respectively, and corresponding escrow funds in holding of the same amount. While these deposits are not assets of the Company (and, therefore, are excluded from the accompanying condensed consolidated balance sheets), the subsidiary of the Company remains contingently liable for the disposition of these assets.

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**ITEM 2.**&nbsp;&nbsp;&nbsp;&nbsp;**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

(<u>Dollars in Thousands, Except Per Share Amounts or Stated Otherwise</u>)

*The following discussion should be read in conjunction with our Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") and Audited Consolidated Financial Statements as of and for the year ended December 31, 2024 and Notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Annual Report"), and our Condensed Consolidated Financial Statements and related Notes as of and for the three and nine months ended September 30, 2025. Any forward-looking statements are not historical facts, but rather they are based on current expectations, estimates, assumptions and projections about our industry, business and future financial results. Any forward-looking statements are subject to several important factors, including those factors discussed under "Risk Factors" in our 2024 Annual Report and this Quarterly Report and "Special Note on Forward-Looking Statements," that could cause our actual results to differ materially from those indicated in such forward-looking statements. References to "Douglas Elliman" or "Company" refer to Douglas Elliman Inc. Certain references to "Douglas Elliman Realty" refer to the Company's residential real estate brokerage business, including the operations of Douglas Elliman Realty, LLC and Douglas Elliman of California Inc., unless otherwise specified.*

**Overview**

Douglas Elliman Realty operates the largest residential brokerage company in the New York metropolitan area and also conducts residential real estate brokerage operations in Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia, Washington, D.C., and New Jersey. We also operate our investment business that invests in select PropTech opportunities through our DOUG Ventures (f/k/a New Valley Ventures LLC) subsidiary.

**Change in Reportable Segments**

Beginning in the first quarter of 2025, our business began to report our financial results as a single reportable segment. Presentation of our financial information for the three and nine months ended September 30, 2025 and 2024, and year ended December 31, 2024 is reported as one segment. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. Prior period information has been recast to conform to the current presentation. For more information, see Note 11, "Segment Information" to our condensed consolidated financial statements.

**Key Business Metrics and Non-GAAP Financial Measures**

In addition to our financial results, we use the following business metrics to evaluate our business and identify trends affecting our business. To evaluate our operating performance, we also use Adjusted EBITDA attributed to Douglas Elliman, Adjusted EBITDA attributed to Douglas Elliman Margin and financial measures for the last twelve months ended September 30, 2025 ("Non-GAAP Financial Measures"), which are financial measures not prepared in accordance with GAAP.

***Key Business Metrics***

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Nine months ended September 30,** | **Nine months ended September 30,** | **Year ended December 31, 2024** |
| | **Last twelve months ended**<br>**September 30, 2025** | **2025** | **2024** | **Year ended December 31, 2024** |
| Total transactions <sup>(1)</sup> | 21436 | 16099 | 16444 | 21781 |
| Gross transaction value (in billions) <sup>(2)</sup> | $38.9 | $30.1 | $27.6 | $36.4 |
| Average transaction value per transaction (in thousands) <sup>(3)</sup> | $1813.4 | $1870.9 | $1679.1 | $1669.6 |
| Number of Principal Agents <sup>(4)</sup> | 4655 | 4655 | 5062 | 5264 |
| Annual Retention <sup>(5)</sup> | 84% | N/A | N/A | 89% |
| Net loss attributed to Douglas Elliman Inc. | $(59346) | $(53349) | $(70319) | $(76316) |
| Net loss margin | (5.76)% | (6.77)% | (9.35)% | (7.67)% |
| Adjusted EBITDA attributed to Douglas Elliman | $(2454) | $2949 | $(12380) | $(17783) |
| Adjusted EBITDA attributed to Douglas Elliman Margin | (0.24)% | 0.37% | (1.65)% | (1.79)% |

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_____________________________

<sup>(1)</sup> We calculate total transactions by taking the sum of all transactions closed that our agent represented the buyer or seller in the purchase or sale of a home (excluding rental transactions). We include a single transaction twice when one or more of our agents represent both the buyer and seller in any given transaction.

<sup>(2)</sup> Gross transaction value is the sum of all closing sale prices for homes transacted by our agents (excluding rental transactions). We include the value of a single transaction twice when our agents serve both the home buyer and home seller in the transaction.

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<sup>(3)</sup> Average transaction value per transaction is the quotient of (x) gross transaction value divided by (y) total transactions.

<sup>(4)</sup> The number of Principal Agents is determined as of the last day of the specified period. We use the number of Principal Agents, in combination with our other key business metrics such as total transactions and gross transaction value, as a measure of agent productivity.

<sup>(5)</sup> Annual Retention is the quotient of (x) the prior year revenue generated by agents retained divided by (y) the prior year revenue generated by all agents. We use Annual Retention as a measure of agent stability. 

***Non-GAAP Financial Measures***

Adjusted EBITDA attributed to Douglas Elliman is a non-GAAP financial measure that represents our net income adjusted

for depreciation and amortization, investment and other income, stock-based compensation expense, benefit from income taxes,

and other items. Adjusted EBITDA attributed to Douglas Elliman Margin is the quotient of (x) Adjusted EBITDA attributed to Douglas Elliman divided by (y) revenue. Last twelve months financial measures are non-GAAP financial measures that are calculated by reference to the trailing four-quarter performance for the relevant metric.

We believe that Non-GAAP Financial Measures are important measures that supplement analysis of our results of operations and enhance an understanding of our operating performance. We believe Non-GAAP Financial Measures provide a useful measure of operating results unaffected by non-recurring items, differences in capital structures and ages of related assets among otherwise comparable companies. Management uses Non-GAAP Financial Measures as measures to review and assess the operating performance of our business, and management and investors should review both the overall performance (GAAP net income/loss) and the operating performance (Non-GAAP Financial Measures) of our business. While management considers Non-GAAP Financial Measures to be important, they should be considered in addition to, but not as substitutes for or superior to, other measures of financial performance prepared in accordance with GAAP, such as operating income/loss, and net income/loss. In addition, Non-GAAP Financial Measures are susceptible to varying calculations and our measurement of Non-GAAP Financial Measures may not be comparable to those of other companies.

Reconciliations of these non-GAAP measures are provided in the table below (in thousands).

***Computation of Adjusted EBITDA attributed to Douglas Elliman***

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Nine months ended September 30,** | **Nine months ended September 30,** | **Year ended December 31, 2024** |
| | **Last twelve months ended**<br>**September 30, 2025** | **2025** | **2024** | **Year ended December 31, 2024** |
| Net loss attributed to Douglas Elliman Inc. | $(59346) | $(53349) | $(70319) | $(76316) |
| Interest expense | 6112 | 4648 | 1475 | 2939 |
| Interest income | (5530) | (3986) | (3989) | (5533) |
| Income tax (benefit) expense | (240) | 11 | 1368 | 1117 |
| Net loss attributed to non-controlling interest | (593) | (502) | (595) | (686) |
| Depreciation and amortization | 8230 | 6302 | 5808 | 7736 |
| EBITDA | (51367) | (46876) | (66252) | (70743) |
| Stock-based compensation <sup>(a)</sup> | 2178 | 6321 | 10717 | 6574 |
| Equity in (earnings) losses from equity method investments <sup>(b)</sup> | (165) | (178) | (49) | (36) |
| Change in fair value of derivative embedded within convertible debt&nbsp;&nbsp;&nbsp;&nbsp; | 27972 | 33160 | 20166 | 14978 |
| Litigation, settlement and related expenses, net <sup>(c)</sup>  | 19343 | 8713 | 22703 | 33333 |
| Executive severance and separation expense (benefit) <sup>(d)</sup> | 1517 | (493) |  | 2010 |
| Impairment of fixed assets | 2275 | 2275 |  |  |
| Restructuring | 1517 | 1092 | 616 | 1041 |
| Investment and other gains | (6004) | (1340) | (625) | (5289) |
| Adjusted EBITDA | (2734) | 2674 | (12724) | (18132) |
| Adjusted EBITDA attributed to non-controlling interest | 280 | 275 | 344 | 349 |
| Adjusted EBITDA attributed to Douglas Elliman | $(2454) | $2949 | $(12380) | $(17783) |

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_____________________________

(a)Represents amortization of stock-based compensation. For the last twelve months ended September 30, 2025, $1,103 of stock-based compensation is included within General and administrative expenses and $1,075 is included within Operations and support expenses on the condensed consolidated statements of operations. For the nine months ended September 30, 2025, $5,517 of stock-based compensation is included within General and administrative expenses and $804 is included within Operations and support expenses on the condensed consolidated statements of operations. For the nine months ended September 30, 2024, $9,924 of stock-based compensation is included within General and administrative expenses and $793 is included within Operations and support expenses on the condensed consolidated statements of operations. For the year ended December 31, 2024, $5,510 of stock-based compensation is

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included within General and administrative expenses and $1,064 is included within Operations and support expenses on the consolidated statements of operations.

<sup>(b)</sup>Represents equity in (earnings) losses recognized from equity method investment that is accounted for under the equity method and is not consolidated in our financial results.

<sup>(c)</sup>Represents unusual litigation expense, settlement and related expenses incurred in connection with industry-wide antitrust class action lawsuits and other matters related to employees and agents. For the last twelve months and nine months ended September 30, 2025, $19,343 and $8,713, net of amounts recovered from insurance, are included within General and administrative expenses on the condensed consolidated statements of operations, respectively. For the nine months ended September 30, 2024, we incurred such expenses of $22,703 with $17,750 being included in Antitrust litigation settlement expense, $3,222 being included in General and administrative expenses and $1,731 being included in Operations and support expenses, in the condensed consolidated statement of operations. For the year ended December 31, 2024, we incurred unusual litigation expense, settlement and related expenses, net of $33,333 with $17,750 being included in Antitrust litigation settlement expense and $15,583 being included in General and administrative expenses on the consolidated statement of operations.

<sup>(d)</sup> &nbsp;&nbsp;&nbsp;&nbsp;For the last twelve months and nine months ended September 30, 2025, expense of $1,517 and benefit of $493, net of amounts recovered from insurance, are included within General and administrative expenses on the condensed consolidated statement of operations, respectively. For the year ended December 31, 2024, $2,010 is included within General and administrative expenses on the consolidated statement of operations.

**Recent Developments**

*Sale of Douglas Elliman Property Management.* On October 24, 2025, Douglas Elliman Realty sold its property management subsidiary, Residential Management Group, LLC, which conducts business as Douglas Elliman Property Management ("DEPM"), for a base purchase price of $85,000, subject to adjustments for cash, indebtedness, transaction expenses and working capital amounts. See Note 1(l), "Sale of Douglas Elliman Property Management" to our condensed consolidated financial statements.

*Redemption and Repayment of 7.0% Senior Secured Convertible Note.* On October 24, 2025, we repaid and redeemed all of our senior secured convertible promissory notes due July 2, 2029 for an aggregate payment of $95,000, including approximately $1,400 of accrued interest to the closing date. The liens on the assets of the Company and the subsidiary guarantors were released upon redemption. See Note 7, "Notes Payable and Other Obligations" to our condensed consolidated financial statements.

**Results of Operations**

The following discussion provides an assessment of our results of operations, capital resources and liquidity and should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this report.

The primary components of our operating expenses are summarized below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Sales and marketing.* Sales and marketing expenses consist primarily of marketing and advertising expenses, compensation and other personnel-related costs for employees supporting sales, marketing, expansion and related functions, occupancy-related costs and agent acquisition incentives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Operations and support.* Operations and support expenses consist primarily of compensation and other personnel-related costs for employees supporting agents, third-party consulting and professional services costs (not included in general and administrative or technology), commissions related to escrow transactions, fair value adjustments to contingent consideration for our acquisitions and other related expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *General and administrative.* General and administrative expenses consist primarily of compensation, stock-based compensation expense and other personnel-related costs for administrative employees, including executives, finance and accounting, legal, human resources, communications, property management and escrow services as well as the occupancy costs for our headquarters and other offices supporting our administrative functions and, for the three and nine months ended September 30, 2024, transition service fees paid to our former parent, Vector Group, for the use of office space and employees, professional services fees for legal and finance, insurance expenses and talent acquisition expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Technology.* Technology expenses consist primarily of compensation and other personnel-related costs for employees in the product, engineering and technology functions, website hosting expenses, software licenses and equipment, third-party consulting costs, data licenses of PropTech and other related expenses associated with the implementation of our technology initiatives.

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As discussed previously, effective on January 1, 2025, we began to report our financial results as a single operating and reportable segment. Therefore, the presentation of our business's financial information for the three and nine months ended September 30, 2025 and 2024 will be reported as one segment. For more information, see Note 11, "Segment Information" to our condensed consolidated financial statements.

**Three months ended September 30, 2025 Compared to the Three months ended September 30, 2024**

The following table sets forth our revenue and operating loss for the three months ended September 30, 2025 compared to the three months ended September 30, 2024:

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| | | |
|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Revenue | $262838 | $266316 |
| <u>Operating expenses:</u> |  |  |
| &nbsp;&nbsp;&nbsp;Real estate agent commissions | $192771 | $199133 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 19711 | 19240 |
| &nbsp;&nbsp;&nbsp;Operations and support | 17575 | 18774 |
| &nbsp;&nbsp;&nbsp;General and administrative | 32220 | 28659 |
| &nbsp;&nbsp;Technology | 5964 | 6025 |
| &nbsp;&nbsp;Depreciation and amortization | 2183 | 1898 |
| &nbsp;&nbsp;Impairment of fixed assets | 2275 |  |
| &nbsp;&nbsp;Restructuring | 794 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating loss | (10655) | (7431) |
| Other expense, net | (14276) | (20018) |
| Loss before provision for income taxes | (24931) | (27449) |
| &nbsp;&nbsp;Income tax expense | 11 |  |
| Net loss | (24942) | (27449) |
| Net loss attributed to non-controlling interest | 251 | 269 |
| Net loss attributed to Douglas Elliman Inc. | $(24691) | $(27180) |

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*<u>Revenues.</u>* Our revenues were $262,838 for the three months ended September 30, 2025 compared to $266,316 for the three months ended September 30, 2024. The $3,478 decline in revenues was primarily due to lower commissions and other brokerage income, which was driven by decreased existing home sales and revenues from our Development Marketing division compared to the 2024 period. In the third quarter of 2025, our results continued to be negatively impacted by economic pressures, which were driven by geopolitical uncertainties, including global economic policies, as well as industry-specific headwinds related to the continuation of elevated mortgage rates, when compared to recent history.

Our revenues from commission and other brokerage income were $250,354 for the three months ended September 30, 2025 compared to $254,074 for the three months ended September 30, 2024, a decline of $3,720. In the three months ended September 30, 2025, our commission and other brokerage income generated from the sales of existing homes decreased by $5,380 in New York City and $5,603 in the Florida market. Additionally, our revenues from Development Marketing declined by $478. This was partially offset by an increase in revenues in the Northeast region of $4,818 and the West region of $2,923 in the 2025 period compared to the 2024 period.

*<u>Operating expenses</u>.* Our operating expenses were $273,493 for the three months ended September 30, 2025 compared to $273,747 for the three months ended September 30, 2024. The decline of $254 was due primarily to declines in real estate brokerage commissions of $6,362 arising primarily from declines in commissions and other brokerage income as well as improved margins on certain Development Marketing projects. These amounts were partially offset by an increase in general and administrative expenses of $3,561 primarily due to increases in legal and personnel expenses.

*Real Estate Agent Commissions.* As a result of declines in our commissions and other brokerage income, as well as a decline in our commission expense as a percentage of revenues, our real estate agent commissions expense was $192,771 for the three months ended September 30, 2025 compared to $199,133 for the three months ended September 30, 2024, representing a decline of $6,362. Real estate agent commissions expense, as a percentage of revenues, decreased to 73.3% for

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the three months ended September 30, 2025 compared to 74.8% for the three months ended September 30, 2024. This percentage decline was primarily driven by improved margins from our Development Marketing division in the 2025 period.

*Gross profit.* We define gross profit as the remaining portion after real estate agent commissions are subtracted from our revenues. Gross profit was $70,067 for the three months ended September 30, 2025, compared to $67,183 for the three months ended September 30, 2024. The increase primarily resulted from our Development Marketing division, in which sales of developer-represented units for the three months ended September 30, 2025 contributed to an increased gross profit.

*Sales and Marketing.* Sales and marketing expenses were $19,711 for the three months ended September 30, 2025 compared to $19,240 for the three months ended September 30, 2024.

*Operations and support.* Operations and support expenses were $17,575 for the three months ended September 30, 2025 compared to $18,774 for the three months ended September 30, 2024.

*General and administrative.* General and administrative expenses were $32,220 for the three months ended September 30, 2025 compared to $28,659 for the three months ended September 30, 2024, representing an increase of $3,561, which was primarily due to increases in legal and personnel expenses.

*Technology.* Technology expenses were $5,964 for the three months ended September 30, 2025 compared to $6,025 for the three months ended September 30, 2024.

*Impairment of fixed assets.* Impairment of fixed assets was $2,275 for the three months ended September 30, 2025 due to the abandonment of an agent onboarding application.

*<u>Operating loss</u>.* Operating loss was $10,655 for the three months ended September 30, 2025 compared to $7,431 for the same period in 2024. The $3,224 increase in operating loss was primarily due to an increase in general and administrative expenses of $3,561, which was primarily due to increases in legal and personnel expenses, and was partially offset by improved gross profit of $2,884 during the three months ended September 30, 2025.

*<u>Other income (expenses)</u>.* Other expense was $14,276 for the three months ended September 30, 2025 compared to other expense of $20,018 for the three months ended September 30, 2024. For the three months ended September 30, 2025, other expense primarily consisted of the $15,445 loss from change in the fair value of the derivative embedded within convertible debt, partially offset by the $1,225 gain from the monetization of our remaining interest in Bilt Technologies in July 2025. For the three months ended September 30, 2024, other expense primarily consisted of the $20,166 loss from the change in fair value of derivative embedded within convertible debt.

*<u>Loss before provision for income taxes</u>.* Loss before income taxes was $24,931 and $27,449 for the three months ended September 30, 2025 and 2024, respectively.

*<u>Income tax expense</u>.* Income tax expense was $11 for the three months ended September 30, 2025. There was no income tax expense for the three months ended September 30, 2024. We calculate our provision for income taxes for interim reporting periods based upon our estimate of the annual effective income tax rate based on full year projections, which does not include the impact of discrete items. We then apply the annual effective income tax rate against year-to-date pretax income to record income tax expense and then adjust our provision for income tax expense for any discrete items. Because we had established a full valuation allowance against our deferred tax assets as each of September 30, 2024 and September 30, 2025, there were no discrete items for either the three months ended September 30, 2025 or 2024.

The tax impact of the sale of our property management division in October 2025 will be treated as a discrete item in the fourth quarter of 2025.

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**Nine months ended September 30, 2025 Compared to Nine months ended September 30, 2024**

The following table sets forth our revenue and operating loss for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024:

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| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Revenue | $787607 | $752306 |
| <u>Operating expenses:</u> |  |  |
| &nbsp;&nbsp;&nbsp;Real estate agent commissions | $583890 | $564606 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 59519 | 62691 |
| &nbsp;&nbsp;&nbsp;Operations and support | 53078 | 55572 |
| &nbsp;&nbsp;&nbsp;General and administrative | 85722 | 80530 |
| &nbsp;&nbsp;&nbsp;Technology | 17265 | 17301 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 6302 | 5808 |
| &nbsp;&nbsp;&nbsp;Antitrust litigation settlement expense |  | 17750 |
| &nbsp;&nbsp;Impairment of fixed assets | 2275 |  |
| &nbsp;&nbsp;&nbsp;Restructuring | 1092 | 616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating loss | (21536) | (52568) |
| Other expense, net | (32304) | (16978) |
| Loss before provision for income taxes | (53840) | (69546) |
| &nbsp;&nbsp;Income tax expense | 11 | 1368 |
| Net loss | (53851) | (70914) |
| Net loss attributed to non-controlling interest | 502 | 595 |
| Net loss attributed to Douglas Elliman Inc. | $(53349) | $(70319) |

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*<u>Revenues</u>.* Our revenues were $787,607 for the nine months ended September 30, 2025 compared to $752,306 for the nine months ended September 30, 2024. The $35,301 increase in revenues was primarily due to higher commissions and other brokerage income, driven by an increased number of transactions and higher transaction values from existing home sales in the Northeast region, as well as an increase in revenue from the Development Marketing division compared to the 2024 period.

Our revenues from commission and other brokerage income totaled $749,513 for the nine months ended September 30, 2025, compared to $714,652 for the nine months ended September 30, 2024, representing an increase of $34,861. For the nine months ended September 30, 2025, our commission and other brokerage income from existing homes sales increased by $12,396 in the Northeast region (excluding New York City). Additionally, our revenues from Development Marketing increased by $17,223, primarily related to the Florida and New York City markets during the 2025 period compared to 2024.

*<u>Operating expenses</u>.* Our operating expenses were $809,143 for the nine months ended September 30, 2025, compared to $804,874 for the nine months ended September 30, 2024. The $4,269 increase was primarily due to higher real estate brokerage commissions of $19,284 resulting from increased revenues, partially offset by the $17,750 antitrust litigation settlement expense incurred in 2024.

*Real Estate Agent Commissions.* As a result of increased commissions and other brokerage income, which were partially offset by a decline in our commission expense as a percentage of revenues, our real estate agent commissions expense was $583,890 for the nine months ended September 30, 2025, compared to $564,606 for the nine months ended September 30, 2024, representing an increase of $19,284. Real estate agent commissions expense as a percentage of revenues decreased to 74.1% for the nine months ended September 30, 2025, compared to 75.1% for the nine months ended September 30, 2024. This decline in percentage was primarily driven by a higher percentage of commission revenues derived from the Development Marketing division.

*Gross profit.* We define gross profit as the remaining portion after real estate agent commissions are subtracted from our revenues. For the nine months ended September 30, 2025, our gross profit was $203,717, which increased from $187,700 for the nine months ended September 30, 2024. This increase primarily resulted from increased existing home sales in our New York City and Northeast regions as well as our Development Marketing division, in which sales of developer-represented units for the nine months ended September 30, 2025 contributed to an increased gross profit.

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*Sales and Marketing.* Sales and marketing expenses were $59,519 for the nine months ended September 30, 2025, compared to $62,691 for the nine months ended September 30, 2024. The decline in expenses is attributable to expense rationalization efforts to streamline our sales and marketing process.

*Operations and support.* Operations and support expenses were $53,078 for the nine months ended September 30, 2025, compared to $55,572 for the nine months ended September 30, 2024.

*General and administrative.* General and administrative expenses were $85,722 for the nine months ended September 30, 2025, compared to $80,530 for the nine months ended September 30, 2024, representing an increase of $5,192, which was primarily due to increases in legal and personnel expenses.

*Technology.* Technology expenses were $17,265 for the nine months ended September 30, 2025, compared to $17,301 for the nine months ended September 30, 2024.

*Impairment of fixed assets.* Impairment of fixed assets was $2,275 for the nine months ended September 30, 2025 due to the abandonment of an agent onboarding application.

*<u>Operating loss</u>.* Operating loss was $21,536 for the nine months ended September 30, 2025, compared to $52,568 for the nine months ended September 30, 2024. The $31,032 decline in operating loss was primarily due to the absence of the $17,750 antitrust litigation settlement expense, which was incurred in 2024, as well as improved gross profit of $16,017 and was partially offset by an increase in general and administrative expenses of $5,192 in 2025.

*<u>Other income (expenses)</u>.* Other expense was $32,304 for the nine months ended September 30, 2025, compared to other expense of $16,978 for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, other expense primarily consisted of the $33,160 loss from the change in fair value of the derivative embedded within convertible debt and was offset by the $1,225 gain from the monetization of Bilt Technologies. For the nine months ended September 30, 2024, other expense primarily consisted of the $20,166 loss from the change in fair value of derivative embedded within convertible debt.

*<u>Loss before provision for income taxes</u>.* Loss before income taxes was $53,840 for the nine months ended September 30, 2025, and $69,546 for the nine months ended September 30, 2024 due to the factors described above.

*<u>Income tax expense</u>.* Income tax expense was $11 for the nine months ended September 30, 2025, compared to $1,368 for the nine months ended September 30, 2024. We calculate our provision for income taxes for interim reporting periods based upon our estimate of the annual effective income tax rate based on full year projections, which does not include the impact of discrete items. We then apply the annual effective income tax rate against year-to-date pretax income to record income tax expense and then adjust our provision for income tax expense for any discrete items. Because we had established a full valuation allowance against our deferred tax assets as each of September 30, 2024 and September 30, 2025, there were no discrete items for either the nine months ended September 30, 2025 or 2024. We refine annual estimates as current information becomes available.

The tax impact of the sale of our property management division in October 2025 will be treated as a discrete item in the fourth quarter of 2025.

During the nine months ended September 30, 2024, we analyzed the likelihood of utilizing our deferred tax assets and determined it will be more likely than not that the benefits of these deductible differences will not be realized, and as a result we recorded the change in prior year valuation allowance of $977.

**Summary of PropTech Investments**

As of September 30, 2025, DOUG Ventures had investments (at a carrying value) of approximately $11,402 in PropTech companies. This amounts to approximately 2% of the value of Douglas Elliman's total assets, which totaled approximately $481 million as of September 30, 2025. In July 2025, we monetized our remaining investment in Bilt Technologies for $1,533 and recorded a gain of $1,225 during the three months ended September 30, 2025.

**Liquidity and Capital Resources**

Cash, cash equivalents and restricted cash increased by $8,686 to $150,907, which included $7,904 of restricted cash, during the nine months ended September 30, 2025. This compares to an increase of $27,746, to $157,263, which included restricted cash of $5,847, during the nine months ended September 30, 2024. The decline in the increase was primarily the result of the absence of proceeds from the convertible debt issuance and was partially offset by a decline in operating loss.

Cash provided by operations was $505 for the nine months ended September 30, 2025, compared to cash used in operations of $16,987 for the nine months ended September 30, 2024. The change in the cash activity from operations in the 2025 period was attributable to a reduction in operating loss and lower liability payments (primarily cash bonuses) in the 2025 period which

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were offset by the net impact of increased development marketing closings in 2025 as well as the absence of an income tax refund in the 2025 period.

Cash provided by investing activities was $8,266 for the nine months ended September 30, 2025, compared to cash used in investing activities of $2,009 for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, cash provided by investing activities was comprised of the proceeds from sale of short-term investments of $97,677 and proceeds from the sale of investments of $1,611 in our PropTech business. These inflows were partially offset by the purchase of short-term investments of $87,873, long-term investments of $108, and capital expenditures of $3,041. For the nine months ended September 30, 2024, cash used in investing activities was comprised of capital expenditures of $4,273 and the purchase of long-term investments of $259 in our PropTech business. This was offset by $2,523 of distributions from our investments in equity securities.

Our investment philosophy is to maximize return on investments by seeking reasonable expectations for return when investing in equity-method investments and PropTech investments, as well as when making capital expenditures.

Cash used in financing activities was $85 for the nine months ended September 30, 2025, compared to cash provided by financing activities of $46,742 for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, cash used in financing activities was comprised of withholding of shares as payment of payroll tax liabilities in connection with restricted stock vesting of $85. For the nine months ended September 30, 2024, cash provided by financing activities was comprised of proceeds from debt issuance of $48,750. This was offset by deferred financing charges of $1,997 and $11 for payroll tax liabilities associated with restricted stock withheld upon the vesting of restricted stock.

*Convertible Notes*. On July 2, 2024, we issued the Convertible Notes in the aggregate principal amount of $50,000 that bore interest at a rate of 7.0% per annum, payable in cash, or, at our election, 8.0% per annum paid in kind, due semi-annually. In connection with and upon consummation of the DEPM Sale, on October 24, 2025, we repaid and redeemed all of our Convertible Notes for an aggregate payment of $95,000, including approximately $1,400 of accrued interest. For more information, see Note 7, "Notes Payable and Other Obligations" to our condensed consolidated financial statements.

We continue to evaluate our capital structure and current market conditions related to our capital structure. We regularly review and evaluate potential acquisitions, joint ventures, divestitures, and other strategic transactions. For example, we may acquire, or seek to acquire, additional operating businesses through a merger, purchase of assets, stock acquisition or other means, or to make other revisions to our capital structure, including, if authorized by our Board of Directors, the repurchase of our common stock in open market transactions. These initiatives may limit our liquidity otherwise available.

We had cash and cash equivalents of approximately $143,003 as of September 30, 2025 and, in addition to any cash provided from operations, such cash is available to be used to fund such liquidity requirements as well as other anticipated liquidity needs in the normal course of business. Management currently anticipates that these amounts, together with expected cash flows from our operations and proceeds from any available financings, should be sufficient to meet our liquidity needs over the next twelve months. We may acquire or seek to acquire additional operating businesses through mergers, asset purchases, stock acquisitions, or other means, or pursue other investments, which could limit the liquidity otherwise available to us.

*Real Estate Brokerage Litigation*. On April 26, 2024, we entered into a settlement agreement to resolve all claims on a nationwide basis in the pending class action litigations, *Gibson v. NAR, No. 4:23-cv-00788-SRB (W.D. Mo.)* and *Umpa v. NAR, 4:23-cv-00945-SRB (W.D. Mo.)* alleging claims on behalf of sellers against Douglas Elliman Inc. and our subsidiaries. Under the settlement agreement, we agreed to pay $7,750 within 30 business days of preliminary approval of the settlement by the court, as well as two $5,000 contingent payments subject to certain financial contingencies through December 31, 2027. On July 15, 2025, all of the *Lutz* plaintiffs' claims against us were dismissed. The federal antitrust claim was dismissed with prejudice, and the state antitrust, consumer protection, and unjust enrichment claims were dismissed without prejudice with 21 days to replead. The *Lutz* plaintiffs filed their Third Amended Complaint on August 5, 2025, which we moved to dismiss.

*Other litigation.* Two real estate salespersons formerly associated with us as independent contractors, have, together or separately, been named as defendants in multiple complaints by women accusing them of sexual assault and related wrongdoing, and face criminal charges related to similar alleged conduct. In February 2025, we and our former Chief Executive Officer were named as defendants in one of these lawsuits. Plaintiffs have brought claims against us under the New York Gender-Motivated Violence Act and sex trafficking, negligence, and negligent hiring, retention, and supervision claims. We deny liability and intend to defend vigorously against these claims. We are aware that other claims may be asserted against us and possibly against certain former Company leadership arising out of the matters related to the two former real estate salespersons.

Litigation is subject to uncertainty and it is possible that there could be adverse developments in pending and other cases, including antitrust lawsuits.

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Management cannot predict the cash requirements related to any future settlements or judgments, including cash required to bond any appeals, and there is a risk that those requirements will not be able to be met. Management is unable to make a reasonable estimate of the amount or range of loss that could result from an unfavorable outcome of the cases pending against our business or the costs of defending such cases. It is possible that our consolidated financial position, results of operations or cash flows in any future period could be materially adversely affected by an unfavorable outcome in any such litigation. For more information, see Note 8, "Commitments and Contingencies" to our condensed consolidated financial statements.

**Off-Balance Sheet Arrangements**

We have various agreements in which we may be obligated to indemnify the other party with respect to certain matters. Generally, these indemnification clauses are included in contracts arising in the normal course of business under which we customarily agree to hold the other party harmless against losses arising from a breach of representations related to certain matters as title to assets sold and licensed or certain intellectual property rights and, in connection with the sale of our property management division, certain known liabilities as of October 24, 2025. Payment by us under such indemnification clauses is generally conditioned on the other party making a claim that is subject to challenge by us and dispute resolution procedures specified in the particular contract. Further, our obligations under these arrangements may be limited in terms of time and/or amount, and in some instances, we may have recourse against third parties for certain payments made by us. It is not possible to predict the maximum potential number of future payments under these indemnification agreements due to the conditional nature of our obligations and the unique facts of each particular agreement. Historically, payments made by us under these agreements have not been material. As of September 30, 2025, we were not aware of any indemnification agreements that would or are reasonably expected to have a current or future material adverse impact on our financial position, results of operations or cash flows.

As of September 30, 2025 and December 31, 2024, we had outstanding approximately $2,645 and $2,990, respectively, of letters of credit, which are collateralized by certificates of deposit. The letters of credit have been issued as security deposits for leases of office space.

As a service to its customers, Portfolio Escrow Inc., a subsidiary of Douglas Elliman, administers escrow and trust deposits which represent undisbursed amounts received for the settlement of real estate transactions. Deposits at FDIC-insured institutions are insured up to $250. Portfolio Escrow Inc. had escrow funds on deposit of $20,640 and $37,967 as of September 30, 2025 and December 31, 2024, respectively, and corresponding escrow funds in holding of the same amount. While these deposits are not assets of Portfolio Escrow Inc., the subsidiary of Douglas Elliman (and, therefore, are excluded from the accompanying condensed consolidated balance sheets), the subsidiary of ours remains contingently liable for the disposition of these deposits.

**Market Risk**

We are exposed to market risks principally from fluctuations in interest rates and could be exposed to market risks from foreign currency exchange rates and equity prices in the future. We seek to minimize these risks through our regular operating and financing activities and our long-term investment strategy. Our market risk management procedures cover material market risks for our market risk sensitive financial instruments.

**New Accounting Pronouncements**

Refer to Note 1, "Summary of Significant Accounting Policies" to our condensed consolidated financial statements for further information on New Accounting Pronouncements.

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**Legislation and Regulation**

There are no material changes from the Legislation and Regulation section set forth in Item 7, "*Management's Discussion and Analysis of Financial Condition and Results of Operations*," of our 2024 Annual Report.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

In addition to historical information, this report contains "forward-looking statements" within the meaning of the federal securities law. Forward-looking statements include information relating to our intent, belief or current expectations, primarily with respect to, but not limited to, economic outlook, capital expenditures, cost reduction, cash flows, operating performance, growth expectations, competition, legislation and regulations, litigation, and related industry developments (including trends affecting our business, financial condition and results of operations).

We identify forward-looking statements in this report by using words or phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may be," "objective," "opportunistically," "plan," "potential," "predict," "project," "prospects," "seek," and "will be" and similar words or phrases or their negatives.

Forward-looking statements involve important risks and uncertainties that could cause our actual results, performance or achievements to differ materially from our anticipated results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, without limitation, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and market conditions and any changes therein, including due to macroeconomic conditions, interest rate fluctuations, inflation, acts of war and terrorism or otherwise,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• governmental regulations and policies, including with respect to regulation of the real estate market or monetary and fiscal policy and its effect on overall economic activity, in particular, mortgage interest rates,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of enacted and proposed tariffs and other trade policies, and related uncertainties in the global economy resulting from such policies,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impacts of banks not honoring the escrow and trust deposits held by our subsidiaries,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation risks, the costs associated with, and the outcome of, litigation and other proceedings to the extent uninsured, including litigation or other claims against companies we invest in or acquire,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse changes in global, national, regional and local economic and market conditions,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impacts of the One Big Beautiful Bill Act of 2025 and the Inflation Reduction Act of 2022, including the continued impact on the markets of our business,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effects of industry competition, severe weather events or natural or man-made disasters, including the increasing severity or frequency of such events due to climate change or otherwise, or other catastrophic events that may disrupt our business and have an unfavorable impact on home sale activity,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the tax-free treatment of the Vector Group's distribution of our common stock to its stockholders,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the failure of Vector Group to satisfy its respective obligations under the agreements entered into in connection with the Distribution, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the additional factors described under "*Risk Factors*" in our 2024 Annual Report filed with the SEC as updated in our quarterly report.

Further information on the risks and uncertainties to our business includes the risk factors discussed above in "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and under Item 1A, "*Risk Factors*" in our 2024 Annual Report filed with the SEC, as updated in our quarterly report.

Although we believe the expectations reflected in these forward-looking statements are based on reasonable assumptions, there is a risk that these expectations will not be attained and that any deviations will be material. The forward-looking statements speak only as of the date they are made and we undertake no obligation to update any of these statements to reflect events or circumstances occurring after the date of this quarterly report. New factors may emerge, and it is not possible to

predict all factors that may affect our business and operations.

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**ITEM 3.**&nbsp;&nbsp;&nbsp;&nbsp;**QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

The information under the caption "*Management's Discussion and Analysis of Financial Condition and Results of Operations - Market Risk*" is incorporated herein by reference.

**ITEM 4.**&nbsp;&nbsp;&nbsp;&nbsp;**CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we have evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report, and, based on their evaluation, our principal executive officer and principal financial officer have concluded that these controls and procedures are effective.

**Changes in Internal Control Over Financial Reporting**

There have not been any changes in our internal control over financial reporting that occurred during the quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II**

**OTHER INFORMATION**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS**

Reference is made to Note 8, "Commitments and Contingencies" to our condensed consolidated financial statements, incorporated herein by reference, which contains a general description of certain legal proceedings to which we or our subsidiaries are a party.

**ITEM 1A.&nbsp;&nbsp;&nbsp;&nbsp;RISK FACTORS**

There are no material changes from the risk factors set forth in Part I, Item 1A, "*Risk Factors*," of our 2024 Annual Report and Part II, Item 1A, "Risk Factors" of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

**ITEM 2. &nbsp;&nbsp;&nbsp;&nbsp;UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

No equity securities of ours which were not registered under the Securities Act of 1933, as amended (the "Securities Act") have been issued or sold by us during the three months ended September 30, 2025. In addition, we did not repurchase any of our equity securities during the three months ended September 30, 2025.

**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION**

**Securities Trading Plans of Directors and Executive Officers**

In the quarter ended September 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a plan for the purchase or sale of our securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or a non-Rule 10b5-1 trading arrangement for the purchase or sale of our securities, within the meaning of Item 408 of Regulation S-K. However, certain of our officers or directors have made, and may from time to time make elections to have shares withheld to cover withholding taxes or pay the exercise price of options, which may be designed to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or may constitute non-Rule 10b5-1 trading arrangements.

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**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS:**

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| | |
|:---|:---|
| **<u>[10.1](bradleybrodieemploymentagr.htm)</u>** | Employment Agreement between the Company and Bradley H. Brodie, dated as of July 28, 2025. |
| **<u>[10.2](larkinstephen.htm)</u>** | Retention Bonus Agreement between the Company and Stephen T. Larkin dated July 21, 2025. |
| **<u>[10.3](equitypurchaseagreementexe.htm)</u>†+** | Equity Purchase Agreement by and among Residential Management Group, LLC, Douglas Elliman Realty, LLC and PMG Holdings, Inc. dated October 24, 2025. |
| **<u>[31.1](a2025q3ex311.htm)</u>** | Certification of Chief Executive Officer, Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| **<u>[31.2](a2025q3ex312.htm)</u>** | Certification of Chief Financial Officer, Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| **\* <u>[32.1](a2025q3ex321.htm)</u>** | Certifications of Chief Executive Officer and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| **101.INS** | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| **101.SCH** | Inline XBRL Taxonomy Extension Schema |
| **101.CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase |
| **101.DEF** | Inline XBRL Taxonomy Extension Definition Linkbase |
| **101.LAB** | Inline XBRL Taxonomy Extension Label Linkbase |
| **101.PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase |
| **104** | Cover Page Interactive Data File (the cover page tabs are embedded within the Inline XBRL document). |

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_____________________________

\*&nbsp;&nbsp;&nbsp;&nbsp;Furnished herewith. These exhibits shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that Section. Such exhibits shall not be deemed incorporated into any filing under the Securities Act or the Exchange Act.

† &nbsp;&nbsp;&nbsp;&nbsp;Certain portions of this exhibit have been omitted pursuant to Regulation S-K, Item 601(b)(10)

+&nbsp;&nbsp;&nbsp;&nbsp;Certain of the exhibits and schedules to this exhibit have been omitted in accordance with Regulation S-K, Item 601(a)(5). The Registrant agrees to furnish a copy of all omitted exhibits and schedules to the Securities and Exchange Commission upon its request.

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**SIGNATURE**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
| | | **DOUGLAS ELLIMAN INC.**<br>**(Registrant)**<br>By: /s/ J. Bryant Kirkland III |
| | | J. Bryant Kirkland III |
| | | Executive Vice President, Treasurer and Chief Financial Officer |
| Date: | November 5, 2025 |  |

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## Exhibit 10.1

**EXHIBIT 10.1**

**EMPLOYMENT AGREEMENT**

THIS EMPLOYMENT AGREEMENT dated as of July 28, 2025, by and between Douglas Elliman Inc., a Delaware corporation (together with its successors and assigns, the "<u>Company</u>"), and Bradley H. Brodie (the "<u>Executive</u>").

**WITNESSETH**

**WHEREAS**, on July 25, 2025, the Board of Directors of the Company (the "<u>Board</u>") appointed the Executive as Senior Vice President, General Counsel and Secretary of the Company, effective as of August 13, 2025 (the "<u>Effective Date</u>"); and

**WHEREAS** the Company and the Executive desire to enter into this Employment Agreement (the "<u>Agreement</u>"), to provide for the employment of the Executive by the Company for the period and upon the terms and conditions set forth herein.

**NOW, THEREFORE**, in consideration of the mutual covenants and conditions contained herein, the Company and the Executive hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Employment and Term.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Effective as of the Effective Date, the Company agrees to employ the Executive, and the Executive accepts employment by the Company, as its Senior Vice President, General Counsel and Secretary upon the terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Sections 1(c) and (d) and the provisions for termination hereinafter provided in Section 6, the term of the Executive's employment hereunder shall be from the Effective Date through and including the day immediately preceding the second anniversary of the Effective Date (the "<u>Initial Period</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the first anniversary of the Effective Date and on each subsequent anniversary of such date (each a "<u>Renewal Date</u>"), the term of this Agreement shall automatically be extended by one additional calendar year (the "<u>Extension Period</u>") unless either party shall have provided notice to the other within the sixty (60)-day period prior to a Renewal Date that such party does not desire to extend the term of this Agreement, in which case no further extension of the term of this Agreement shall occur pursuant hereto but all previous extensions of the term shall continue to be given full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this Agreement, subject to the provisions for termination hereinafter provided in Section 6, the term "<u>Employment Period</u>" means the Initial Period, if the term of this Agreement has not been extended pursuant to Section 1(c); otherwise, the period beginning on the Effective Date and ending with the last day of the most recently arising Extension Period. Notwithstanding the foregoing, the Employment Period shall terminate on the applicable date set forth in Section 6 and shall not include any Severance Period (as hereinafter defined).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Duties.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Throughout the Employment Period, the Executive shall be the Senior Vice President, General Counsel and Secretary of the Company, reporting directly to the Board and the Chief Executive Officer of the Company, and shall have all duties and authorities as customarily exercised by an individual serving in such positions in a company the nature and size of the Company. The Executive shall at all times comply with all written Company policies applicable to him.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Throughout the Employment Period, the Executive shall devote his business time and attention to performing his services to the Company hereunder and shall use his reasonable best efforts to perform his duties

------

under this Agreement fully, diligently and faithfully, and shall use his reasonable best efforts to promote the interests of the Company and its subsidiaries and affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as expressly set forth herein (including Section 5(c) below), nothing shall preclude the Executive from (i) serving on the boards of directors of a reasonable number of other business entities (other than public companies), trade associations and/or charitable organizations, (ii) engaging in charitable activities and community affairs, (iii) managing his personal and/or family investments and affairs, and (iv) engaging in any other activities (including serving on the boards of directors of public companies) approved by the Board (or a committee thereof) or the Chief Executive Officer; provided, however, that such activities do not materially interfere with the proper performance of his duties and responsibilities specified in Section 2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Compensation.** 

As compensation for his services to be performed hereunder and for his acceptance of the responsibilities described herein, the Company agrees to pay the Executive, and the Executive agrees to accept, the following compensation and other benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**Base Salary**. During the Employment Period, the Company shall pay the Executive a salary (the "<u>Base Salary</u>") at the rate of $550,000.00 per annum, payable in equal installments at such payment intervals as are the usual custom of the Company, but not less often than monthly. In addition to the foregoing, the Board shall periodically review such Base Salary and may increase (but not decrease) it from time to time, in its sole discretion. After any increase, "Base Salary" as used in this Agreement shall mean the increased amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**Annual Incentive Compensation.** During the Employment Period, the Executive shall be entitled to participate in the Company's Annual Bonus Plan, including any successor thereto, commencing with the calendar year ending December 31, 2025, and be eligible to receive an annual bonus ("<u>Bonus Amount</u>") based on a target bonus opportunity of 40% of Base Salary. Bonus payments shall be subject to compliance with performance goals determined by the Compensation and Human Capital Committee of the Board in accordance with the Annual Bonus Plan, which performance goals shall be consistent with the Executive's position as the Senior Vice President, General Counsel and Secretary of the Company. Any Bonus Amount earned for a calendar year shall be paid to the Executive in the immediately following calendar year, as soon as practicable after the audited financial statements for the Company for the year for which the Bonus Amount is earned have been released but in no event later than thirty (30) days after such release. Except as otherwise provided herein, in order to be eligible to receive a Bonus Amount for a calendar year, the Executive must remain employed with the Company through the date of payment of such Bonus Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**Long-Term Incentive Plans.** During the Employment Period, the Executive shall be entitled to participate in the long-term incentive plans of the Company, including, but not limited to, the Company's 2021 Management Incentive Plan (the "<u>2021 Plan</u>") or any successor thereto, on a basis consistent with the Executive's positions with the Company. Subject to the approval of the Board (or the Compensation and Human Capital Committee of the Board, if properly authorized), at its sole discretion, the Company will recommend to the Board to grant you an aggregate of 250,000 restricted shares (the "<u>Restricted Stock Grant</u>") of the Company's common stock, par value $0.01 per share (the "<u>Common Stock</u>"), according to the 2021 Plan (or any successor plan then in effect), subject to the requirements of the relevant securities, tax and other applicable laws and regulations. Subject to the approval of the Board (or the Compensation and Human Capital Committee of the Board, if properly authorized) and the terms of the applicable Restricted Stock Agreement, the Restricted Stock Grant will vest equally in four annual installments over a four year period beginning on the grant date, so long as the Executive remains employed by the Company on a full time basis, according to the terms of this Employment Agreement on each applicable vesting date (for the avoidance of doubt, and notwithstanding anything to the contrary in the 2021 Plan and applicable Restricted Stock Agreement, the Restricted Stock Grant shall

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cease vesting if Executive ceases to be employed by the Company according to the terms of this Employment Agreement, as may be amended from time to time). Executive shall be responsible for any and all tax consequences in connection with the Restricted Stock Grant and/or the sale of the underlying shares of Common Stock once vested, and the Company shall be entitled to withhold taxes according to the requirements under applicable laws, rules, and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Benefit Plans.** During the Employment Period and as otherwise provided herein in Section 6, the Executive shall be entitled to participate in the employee welfare and health benefit plans (including, but not limited to, life insurance, health and medical, dental and disability plans) and other employee benefit plans, including but not limited to qualified pension plans established by the Company from time to time for the general and overall benefit of the senior executives of the Company; provided that nothing herein contained shall be construed as requiring the Company to establish or continue any particular benefit plan in discharge of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Vacation and Other Benefits.** 

During the Employment Period, the Executive shall be entitled to five (5) weeks of paid vacation each year of his employment hereunder, as well as to payment or reimbursement of all reasonable expenses incurred by the Executive in the performance of his responsibilities and the promotion of the Company's businesses. In all events, during the Employment Period, the Executive shall be entitled to reasonable and documented air travel and lodging, cellular phone charges and reimbursement for reasonable automobile expenses in connection with approved business travel on an after-tax basis. The Executive shall submit to the Company periodic statements of all expenses so incurred. Subject to such audits as the Company may deem necessary, the Company shall reimburse the Executive the full amount of any such expenses incurred by him promptly in the ordinary course.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Executive Covenants.** 

Provided that the Company is not in material default to the Executive on any of its obligations under this Agreement, the Executive agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except with the consent of or as directed by the Board or otherwise in the ordinary course of the business of the Company or any subsidiary, affiliate or investee in which the Company holds, directly or indirectly, more than a 20% equity interest (a "<u>Significant Investee</u>"), the Executive shall keep confidential and not divulge to any other person, during the Employment Period or thereafter, any business secrets and other confidential information regarding the Company, its subsidiaries, its affiliates and/or its Significant Investees, except for information which is or becomes publicly available or known within the relevant trade or industry other than as a result of disclosure by the Executive in violation of this Section 5(a). Anything herein to the contrary notwithstanding, the provisions of this Section 5(a) shall not apply (i) when disclosure is required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with apparent jurisdiction to order the Executive to disclose or make accessible any information, (ii) when disclosure is necessary to resolve an issue raised in good faith in any litigation, arbitration or mediation involving this Agreement or any other agreement between the Executive and the Company or any of its subsidiaries, affiliates or Significant Investees, including, but not limited to, the enforcement of such agreements or (iii) when disclosure is required in connection with the Executive's cooperation pursuant to Section 5(f). Notwithstanding anything to the contrary in this Agreement or otherwise, nothing shall limit the Executive's rights under applicable law to provide truthful information to any governmental entity or to file a charge with or participate in an investigation conducted by any governmental entity. If Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the Company's trade secrets to Executive's attorney and use the trade secret information in the court proceeding if the Executive files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. Notwithstanding the foregoing, the Executive agrees to waive the Executive's right to recover monetary damages in connection with any charge, complaint or lawsuit filed by the Executive or anyone else on the Executive's behalf (whether involving a governmental entity or not); provided that the Executive is not agreeing to waive, and this Agreement shall not be read as requiring the Executive to waive, any right the Executive may have to receive an award for information provided to any

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governmental entity. The Executive is hereby notified that the immunity provisions in Section 1833 of title 18 of the United States Code provide that an individual cannot be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made (1) in confidence to federal, state or local government officials, either directly or indirectly, or to an attorney, and is solely for the purpose of reporting or investigating a suspected violation of the law, (2) under seal in a complaint or other document filed in a lawsuit or other proceeding, or (3) to the Executive's attorney in connection with a lawsuit for retaliation for reporting a suspected violation of law (and the trade secret may be used in the court proceedings for such lawsuit) as long as any document containing the trade secret is filed under seal and the trade secret is not disclosed except pursuant to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All papers, books and records of every kind and description relating to the business and affairs of the Company, its subsidiaries, affiliates or Significant Investees, whether or not prepared by the Executive are the exclusive property of the Company, and the Executive shall surrender them to the Company, at any time upon request by the General Counsel or Chief Executive Officer of the Company, during or after the Employment Period. Anything to the contrary notwithstanding, the Executive shall be entitled to retain (i) papers and other materials of a personal nature, including, but not limited to, photographs, correspondence, personal diaries, calendars and Rolodexes, personal files and phone books, (ii) information showing his compensation or relating to reimbursement of expenses, (iii) information that he reasonably believes may be needed for tax purposes and (iv) copies of plans, programs and agreements relating to his employment, or, if applicable, his termination of employment, with the Company or any of its subsidiaries or affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During the Employment Period and for a period of six (6) months following the end of the Employment Period, the Executive shall not, without the prior written consent of the Board, participate as a director, officer, employee, agent, representative, stockholder, or partner, or have any direct or indirect financial interest as a creditor, in any business which directly or indirectly competes with a business in which the Company, a subsidiary, affiliate or Significant Investee (collectively, the "<u>Restricted Group</u>") is engaged both for some period during the Employment Period and on the day the Executive's employment is terminated hereunder ("<u>Competitive Business</u>"); provided, however, that this Section 5(c) shall not restrict the Executive from holding up to 5% of the publicly traded securities of any entity which so competes with the Company. Anything to the contrary notwithstanding, this Section 5(c) shall not prohibit the Executive from (i) serving on the board of directors of any entity on which he was serving prior to his termination date and (ii) providing services to a subsidiary, division or affiliate of a Competitive Business if such subsidiary, division or affiliate is not itself engaged in a Competitive Business and the Executive does not provide services to or with respect to the Competitive Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) During the Employment Period and for a period of six (6) months following the end of the Employment Period, the Executive shall not, without the prior written consent of the Board, either for his own account or for any person, firm or company (i) solicit any customer of the Company, its subsidiaries or affiliates (other than with respect to products and services not provided by any member of the Restricted Group on the date the Executive's employment is terminated), or (ii) solicit or endeavor to cause any employee of any member of the Restricted Group to leave such employment or induce or attempt to induce any such employee to breach any written employment agreement with the Company, its subsidiaries or affiliates, provided the Executive knows (or reasonably should have known) about the provisions of such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Without limiting any other provision of this Agreement, the Executive hereby agrees to act in a manner consistent with, and to use his reasonable best efforts to cause the Company, its subsidiaries and its affiliates, as appropriate, to comply with, any obligations known to the Executive and imposed on the Company, its subsidiaries or affiliates, by law, rule, regulation, ordinance, order, decree, instrument, agreement, understanding or other restriction of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Executive hereby agrees to provide reasonable cooperation to the Company, its subsidiaries and affiliates during the Employment Period and, subject to his other personal and business commitments, any Severance Period in any litigation between the Company, its subsidiaries or affiliates, and third parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The parties agree that the Company shall, in addition to other remedies provided by law, have the right and remedy to have the provisions of this Section 5 specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any breach or threatened breach by the Executive of the provisions of this Section 5 will cause irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company. Nothing contained herein shall be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of damages from the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Termination of Employment Period and Severance.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Termination by the Company Without Cause.** Except as provided in Section 6(d), if for any reason the Company wishes to terminate the Employment Period and the Executive's employment hereunder (including by not extending the term of this Agreement pursuant to Section 1(c)), (i) the Company shall give notice (the "<u>Termination Notice</u>") to the Executive stating such intention, (ii) the Employment Period shall terminate on the date set forth in the Termination Notice (the "<u>Termination Date</u>"), and (iii) a severance period shall commence upon such Termination Date for a period of six (6) months (such period, the "<u>Severance Period</u>"). During the Severance Period, the Executive shall continue to receive the Base Salary under Section 3(a), and subject to Executive's timely election of continuation coverage under the Company's group health plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("<u>COBRA</u>"), and continued copayment of premiums at the same level as if Executive were an active employee of the Company, the Executive and his eligible dependents shall be entitled to a taxable monthly reimbursement in an amount equal to the amount of health insurance premiums that the Company would have subsidized, if any, had Executive remained an active employee, for the Severance Period, provided that the Executive remains eligible for COBRA coverage during such period. The Executive shall also be eligible to receive a prorated Bonus Amount for the year in which the termination occurred. Such prorated Bonus Amount shall be paid in accordance with Section 3(b) and shall be subject to the performance requirements being achieved for that year. In addition, the Executive shall be entitled to (x) payment of any earned but unpaid amounts, including bonuses for performance periods that ended prior to the Termination Date and any unreimbursed business expenses, with such payment made in accordance with Company practices in effect on the date of his termination of employment, and (y) any other rights, benefits or entitlements in accordance with this Agreement or any applicable plan, policy, program, arrangement of, or other agreement with, the Company or any of its subsidiaries or affiliates. Any amounts or benefits provided under this Section 6(a) (other than pursuant to Section 6(a)(x) and (y), such amounts the "<u>Accrued Obligations</u>") shall be shall be conditioned upon the Executive's execution of a general release of claims and covenant not to sue provided by the Company at the time of termination (the "<u>Release</u>"), and the Release becoming effective within fifty-two (52) days after the Termination Date (or such earlier date as may be required by the Company). Payment of any amounts under this Section 6(a) (other than the Accrued Obligations) shall commence on the first payroll date after the Release becomes irrevocable or, if earlier, the sixtieth (60th) day following the Termination Date, provided, that if the sixty (60)-day period following the Termination Date crosses calendar years, if necessary to comply with Section 409A of Code payment shall not commence until the second calendar year (the commencement date, "<u>Payment Commencement Date</u>"). Any payments that are so delayed shall be paid on the Payment Commencement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Death.** If the Executive dies during the Employment Period, the Employment Period shall automatically terminate. The Executive's designated beneficiary(ies) (or his estate in the absence of any surviving designated beneficiary) shall be entitled to the Accrued Obligations. If the Executive dies during any Severance Period during which he is entitled to benefits pursuant to Section 6, his designated beneficiary(ies) (or his estate in the absence of any surviving designated beneficiary) shall continue to receive the compensation that the Executive would have otherwise received during the remainder of the Severance Period and his designated beneficiary(ies) shall be entitled to continue to participate in the Company's medical plans during the remainder of the Severance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Disability.** If the Executive is deemed to have a Disability (as hereinafter defined) during the Employment Period, the Company shall be entitled to terminate the Executive's employment upon thirty (30) days' notice to the Executive. In the event of such termination, the Executive shall be released from his duties under Section 2, and the Employment Period shall end and the Executive shall be entitled to the Accrued Obligations. For

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purposes of this Employment Agreement, "<u>Disability</u>" shall mean mental or physical impairment or incapacity rendering the Executive substantially unable to perform his duties under this Agreement for more than 180 days out of any 360-day period during the Employment Period. A determination of Disability shall be made by the Board in its reasonable discretion after obtaining the advice of a medical doctor mutually selected by the Company and the Executive. If the parties cannot agree upon a medical doctor, each party shall select a medical doctor and the two doctors shall select a third who shall be the approved medical doctor for this purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Termination by the Company for Cause.** The Company, by notice to the Executive, shall have the right to terminate the Employment Period and the Executive's employment hereunder in the event of any of the following (any of which shall constitute "<u>Cause</u>" for purposes of this Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Executive having been convicted of or entered a plea of nolo contendere with respect to a criminal offense constituting a felony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Executive having committed in the performance of his duties under this Agreement one or more acts or omissions constituting fraud, dishonesty or willful injury to the Company which results in a material adverse effect on the business, financial condition or results of operations of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Executive having committed one or more acts constituting gross neglect or willful misconduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Executive having exposed the Company to criminal liability substantially and knowingly caused by the Executive; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Executive having failed, after written warning from the Board specifying in reasonable detail the breach(es) complained of, to substantially perform his duties under this Agreement (excluding, however, any failure to meet any performance targets or to raise capital or any failure as a result of an approved absence or any mental or physical impairment that could reasonably be expected to result in a Disability).

For purposes of the foregoing, no act or failure to act on the part of the Executive shall be considered "willful" or "knowingly" unless it is done, or omitted to be done, by the Executive without reasonable belief that the Executive's action or omission was in the best interests of the Company. Any act or failure to act that is expressly authorized by the Board pursuant to a resolution duly adopted by the Board, or pursuant to the written advice of counsel for the Company, shall be conclusively presumed to be done, or omitted to be done, by the Executive in the best interests of the Company.

Any termination of employment under this Section 6(d) shall not be followed by a Severance Period and shall be without damages or liability to the Company for compensation and other benefits other than Accrued Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Voluntary Termination by the Executive.** In the event of the voluntary termination of employment by the Executive, the terms of the last paragraph of Section 6(d) shall apply; provided, however, if (A) such voluntary termination occurs as a result of: (i) a material diminution of the Executive's duties and responsibilities provided in Section 2, including, without limitation, the failure to appoint or re-appoint the Executive as Senior Vice President, General Counsel and Secretary of the Company or the removal of the Executive from any such position, (ii) a material reduction of the Executive's Base Salary or target bonus opportunity as a percentage of Base Salary or any other material breach of any material provision of this Agreement by the Company, (iii) relocation of the Executive's office outside of a 90 mile radius from Miami, Florida, or (iv) the failure of a successor to all or substantially all of the Company's business and/or assets to promptly assume and continue the Company's obligations under this Agreement, whether contractually or as a matter of law, within 15 days of such transaction (clauses (A)(i) through (iv) collectively referred to as "<u>Good Reason</u>") and (B) the Executive gives the Company sixty (60) days' prior notice of his intent to voluntarily terminate his employment for Good Reason and the Company shall not have cured such breach within such 60-day period, then the Severance Period shall begin at the end of such 60-day period and the provisions of Section 6(a) shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Termination Following a Change in Control**.

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For purposes of this Agreement, a "<u>Change in Control</u>" shall occur if or upon the occurrence of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any "Person" (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities and Exchange Act of 1934, as amended (the "<u>Exchange Act</u>")) acquires "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of any securities of the Company which generally entitles the holder thereof to vote for the election of directors of the Company (the "<u>Voting Securities</u>"), which, when added to the Voting Securities then "Beneficially Owned" by such person, would result in such Person "Beneficially Owning" more than fifty percent (50%) of the combined voting power of the Company's then outstanding Voting Securities; provided, however, that for purposes of this paragraph (i), a Person shall not be deemed to have made an acquisition of Voting Securities if such Person: (a) acquires Voting Securities as a result of a stock split, stock dividend or other corporate restructuring in which all stockholders of the class of such Voting Securities are treated on a pro rata basis; (b) acquires the Voting Securities directly from the Company; (c) becomes the Beneficial Owner of more than the permitted percentage of Voting Securities solely as a result of the acquisition of Voting Securities by the Company, which, by reducing the number of Voting Securities outstanding, increases the proportional number of shares Beneficially Owned by such Person; (d) is the Company or any corporation or other Person of which a majority of its voting power or its equity securities or equity interest is owned directly or indirectly by the Company (a "<u>Controlled Entity</u>"); or (e) acquires Voting Securities in connection with a "Non-Control Transaction" (as defined in paragraph (iii) below); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The individuals who, as of the Effective Date are members of the Board (the "<u>Incumbent Board</u>"), cease for any reason to constitute at least two-thirds of the Incumbent Board, provided, however, that if either the election of any new director or the nomination for election of any new director was approved by a vote of at least a majority of the Incumbent Board, such new director shall be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened "Election Contest" (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a "<u>Proxy Contest</u>"), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The consummation of a merger, share exchange, consolidation or reorganization involving the Company (a "<u>Business Combination</u>"), unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. the stockholders of the Company immediately before the Business Combination, own, directly or indirectly immediately following the Business Combination, at least fifty-one percent (51%) of the combined voting power of the outstanding Voting Securities of the corporation resulting from the Business Combination (the "<u>Surviving Corporation</u>"), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for the Business Combination constitute at least a majority of the members of the Board of Directors of the relevant Surviving Corporation, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. no Person (other than the Company, or any Controlled Entity, a trustee or other fiduciary holding securities under one or more employee benefit plans or arrangements (or any trust forming a part thereof) maintained by the Company, the Surviving Corporation or any Controlled Entity, or any Person who, immediately prior to the Business Combination, had Beneficial Ownership of forty percent (40%) or more of the then outstanding Voting Securities) has Beneficial Ownership of forty percent (40%) or more of the combined voting power of the Surviving Corporation's then outstanding voting securities (a transaction described in this subparagraph (iii) shall be referred to as a "<u>Non-Control Transaction</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Stockholder approval of complete liquidation or dissolution of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The consummation of a sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Controlled Entity).

Notwithstanding the foregoing, (x) a Change in Control shall not be deemed to occur solely because more than fifty percent (50%) of the then outstanding Voting Securities is Beneficially Owned by (A) a trustee or other fiduciary holding securities under one or more employee benefit plans or arrangements (or any trust forming a

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part thereof) maintained by the Company or any Controlled Entity or (B) any corporation which, immediately prior to its acquisition of such interest, is owned directly or indirectly by the stockholders of the Company in the same proportion as their ownership of stock in the Company, immediately prior to such acquisition; and (y) if the Executive ceases to be an employee of the Company and the Executive reasonably demonstrates that such termination (A) was at the request of a third party who has indicated an intention or taken steps reasonably calculated to effect a Change in Control and who effectuates a Change in Control or (B) otherwise occurred in connection with, or in anticipation of, a Change in Control which actually occurs, then for all purposes hereof, the date of a Change in Control with respect to the Executive shall mean the date immediately prior to the date of such termination of employment (and the Executive shall be entitled to the payments, benefits and entitlements provided under Section 6(g) determined as of his termination but reduced and offset as appropriate to reflect the value of the payments, benefits and entitlements received by the Executive and his beneficiaries pursuant to Section 6(a) prior to the date it is determined that Section 6(g) applies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If within twelve (12) months of a Change in Control, the Executive's employment is terminated by the Company without Cause (other than for reason of death or Disability) or by the Executive for Good Reason, the Company shall pay the Executive in cash in a lump sum to be paid as soon as practicable following termination (but in no event later than 30 days following such termination), an amount equal to the annual Base Salary of the Executive. The Executive shall also be eligible to receive a prorated Bonus Amount for the year in which the termination occurred. Such prorated Bonus Amount shall be paid in accordance with Section 3(b) and shall be subject to the performance requirements being achieved for that year. In addition, subject to Executive's timely election of continuation coverage under the Company's group health plan pursuant to COBRA, and continued copayment of premiums at the same level as if Executive were an active employee of the Company, the Executive and his eligible dependents shall be entitled to a taxable monthly reimbursement in an amount equal to the amount of health insurance premiums that the Company would have subsidized, if any, had Executive remained an active employee, for six (6) months, provided that the Executive remains eligible for COBRA coverage during such period. In addition, the Executive shall be entitled to the Accrued Obligations. There shall be no Severance Period following a termination under this Section 6(g) or any termination pursuant to clause (z) of Section 6(f), and upon such a termination, the Executive shall no longer be bound by the provisions of Section 5 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Section 409A; Timing of Payments.** This Agreement is intended to comply with the requirements of Section 409A of the Code (together with the applicable regulations thereunder, "<u>Section 409A</u>"). To the extent that any provision in this Agreement is ambiguous as to its compliance with Section 409A, such provision will be read in such a manner so that all payments due under this Agreement will comply with Section 409A. Notwithstanding the other provisions of this Agreement, any payment or other benefit required to be made to or provided to or with respect to the Executive under this Agreement upon his termination of employment shall be made or provided promptly after the six month anniversary of the Executive's date of termination of employment to the extent necessary to avoid imposition upon the Executive of any additional tax imposed under Section 409A. All payments due and owing for the six-month period shall be paid on the first day following the six-month anniversary of the Executive's date of termination, with interest at the prime lending rate as published in *The Wall Street Journal* and in effect as of the date the payment or benefit should otherwise have been provided. In addition, if any payment or benefit permitted or required under this Agreement or otherwise is reasonably determined by either party to be subject for any reason to a material risk of additional tax pursuant to Section 409A, then the parties shall promptly negotiate in good faith appropriate provisions to avoid such risk without increasing the cost of this Agreement to the Company or, to the extent practicable, materially changing the economic value of this Agreement to the Executive. For purposes of Section 409A, each payment made under this Agreement will be treated as a separate payment. In addition, to the extent permissible under Section 409A, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments. In no event may the Executive, directly or indirectly, designate the calendar year of payment. All reimbursements provided under this Agreement will be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Executive's lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit.

------

Notwithstanding anything to the contrary, the Company does not make any representation to the Executive that the payments or benefits provided under this Agreement are exempt from, or satisfy, the requirements of Section 409A, and neither the Company nor any of its subsidiaries or affiliates shall have any liability or other obligation to indemnify or hold harmless the Executive or any beneficiary of the Executive for any tax, additional tax, interest or penalties that the Executive or any beneficiary of the Executive may incur in the event that any provision of this Agreement or any other action taken with respect thereto is deemed to violate any of the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **No Mitigation of Damages; No Offset.** 

In the event the employment of the Executive under this Agreement is terminated for any reason, the Executive shall not be required to seek other employment so as to minimize any obligation of the Company to compensate him for any damages he may suffer by reason of such termination. In addition, the Company or any of its subsidiaries or affiliates shall not have a right of offset against any payments, benefits or entitlements due to the Executive under this Agreement or otherwise on account of any remuneration the Executive receives from subsequent employment or on account of any claims the Company or any of its subsidiaries or affiliates may have against the Executive (except to the extent expressly set forth in Section 6(g) hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Indemnification.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company agrees that if the Executive is made a party to, is threatened to be made a party to, receives any legal process in, or receives any discovery request or request for information in connection with, any action, suit or proceeding, whether civil, criminal, administrative or investigative (a "<u>Proceeding</u>"), by reason of the fact that he is or was a director, officer, employee, consultant or agent of the Company or was serving at the request of, or on behalf of, the Company as a director, officer, member, employee, consultant or agent of another corporation, limited liability corporation, partnership, joint venture, trust or other entity, including service with respect to employee benefit plans, whether or not the basis of such Proceeding is the Executive's alleged action in an official capacity while serving as a director, officer, member, employee, consultant or agent of the Company or other entity, the Executive shall be indemnified and held harmless by the Company to the fullest extent permitted or authorized by the Company's certificate of incorporation and/or bylaws, or, if greater, by applicable law, against any and all costs, expenses, liabilities and losses (including, without limitation, attorneys' fees reasonably incurred, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement and any reasonable costs and fees incurred in enforcing his rights to indemnification or contribution) incurred or suffered by the Executive in connection therewith, and such indemnification shall continue as to the Executive even though he has ceased to be a director, officer, member, employee, consultant or agent of the Company or other entity; provided that a Proceeding shall not include any (i) action, suit or proceeding related to the trading of Company-issued securities by the Executive (including actions, suits or proceedings related to insider trading allegations or related to Section 16 of the Securities Exchange Act of 1934, as amended), (ii) any claim, demand or charge based upon acts or omissions of Executive, where the Executive (X) acted in bad faith or in a manner reasonably believed to not be in the best interests of the Company, (y) acted in an unlawful manner or (z) has been finally adjudged by a court to be liable to the Company, (iii) any claim for injury or death to any person or for damage to or destruction of property resulting from any act or omission of Executive arising under or relating to this Agreement; and (iv) any misappropriation, misuse or theft of confidential information, unfair competition, or breach of contract (including breach of this Agreement). The Company shall advance to the Executive his legal fees and other expenses to be paid by him in connection with a Proceeding within 20 business days after receipt by the Company of a written request for such reimbursement and appropriate documentation associated with such expenses. Such request shall include an undertaking by the Executive to repay such amounts if, and to the extent, required to do so by applicable law if it shall ultimately be determined by a final court adjudication from which there is no right of appeal that the Executive is not entitled to be indemnified against such costs and expenses; provided that, to the extent permitted by law, the amount of such obligation to repay shall be limited to the after-tax amount of any such advance except to the extent the Executive is able to offset such taxes incurred on the advance by the tax benefit, if any, attributable to a deduction for repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company agrees to maintain for the Executive a directors' and officers' liability insurance policy not less favorable than any policy that the Company or any subsidiary or affiliate thereof maintains for its

------

directors and executive officers in general for a period of at least six (6) years following the termination of the Executive's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Section 8 establishes contract rights which shall be binding upon, and shall inure to the benefit of the heirs, executors, personal and legal representatives, successors and assigns of the Executive. The obligations set forth in this Section 8 shall survive any termination of this Agreement (whether such termination is by the Company, the Executive, upon the expiration of this Agreement, or otherwise). Nothing in this Section 8 shall be construed as reducing or waiving any right to indemnification, advancement of expenses or coverage under directors' and officers' liability insurance policies the Executive has or would otherwise have under the Company's certificate of incorporation, by laws, other agreement or under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **No Conflicting Agreements.** 

As of the date of this Agreement, the Executive hereby represents and warrants to the Company that his entering into this Agreement, and the obligations and duties undertaken by him hereunder, will not conflict with, constitute a breach of, or otherwise violate the terms of any other employment or other written agreement to which he is a party. The Company represents and warrants that it is a corporation duly organized and existing under the laws of the State of Delaware and that execution and delivery of this Agreement has been duly authorized by all necessary corporate action, including approval by the Company's Compensation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Assignment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **By the Executive.** This Agreement and any obligations hereunder shall not be assigned, pledged, alienated, sold, attached, encumbered or transferred in any way by the Executive and any attempt to do so shall be void. Notwithstanding the foregoing, the Executive may transfer his rights and entitlements to compensation and benefits under this Agreement or otherwise pursuant to will, operation of law or in accordance with any applicable plan, policy, program, arrangement of, or other agreement with, the Company or any of its subsidiaries or affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **By the Company.** Provided that the substance of the Executive's duties set forth in Section 2 shall not change, and provided that the Executive's compensation as set forth in Section 3 shall not be adversely affected, the Company may assign or transfer its rights and obligations under this Agreement, provided that the assignee or transferee is the successor to all or substantially all of the assets of the Company and such assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, heirs (in the case of the Executive) and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Arbitration.** 

At the election of the Executive or the Company, any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration in Miami, Florida before a panel of three arbitrators in accordance with the Commercial Arbitration Rules of the American Arbitration Association then pertaining to Miami, Florida. In any such arbitration, one arbitrator shall be selected by each of the parties, and the third arbitrator shall be selected by the first two arbitrators. The arbitration award shall be final and binding upon the parties and judgment thereon may be entered in any court having jurisdiction thereof. The arbitrators shall be deemed to possess the powers to issue mandatory orders and restraining orders in connection with such arbitration; provided, however, that nothing in this Section 11 shall be construed so as to deny the Company the right and power to seek and obtain injunctive relief in a court of equity for any breach or threatened breach of the Executive of any of his covenants contained in Section 5 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Notices.** 

All notices, requests, demands and other communications hereunder must be in writing and shall be deemed to have been duly given if delivered by hand, electronic mail, or overnight delivery service or mailed within the continental United States by first-class, certified mail, return receipt requested, to the applicable party and addressed as follows:

------

 (a) if to the Company:

Douglas Elliman Inc.

4400 Biscayne Boulevard

Miami, Florida 33137

Attn: Chief Financial Officer

Email: bk@dougcorp.com

 (b) if to the Executive:

Most recent home address and email address as indicated in the Company's records.

Addresses may be changed by notice in writing signed by the addressee in accordance with this Section 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any provision of this Agreement shall, for any reason, be adjudicated by any court of competent jurisdiction to be invalid or unenforceable, such judgment shall not affect, impair or invalidate the remainder of this Agreement but shall be confined in its operation to the jurisdiction in which made and to the provisions of this Agreement directly involved in the controversy in which such judgment shall have been rendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No course of dealing and no delay on the part of any party hereto in exercising any right, power or remedy under or relating to this Agreement shall operate as a waiver thereof or otherwise prejudice such party's rights, power and remedies. No single or partial exercise of any rights, powers or remedies under or relating to this Agreement shall preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement may be executed by the parties hereto in counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute the same instrument, and all signatures need not appear on any one counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All payments required to be made to the Executive by the Company hereunder shall be subject to any applicable withholding under any applicable federal, state, or local tax laws. Any such withholding shall be based upon the most recent form W-4 filed by the Executive with the Company, and the Executive may from time to time revise such filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Agreement embodies the entire understanding and supersedes all other oral or written agreements or understandings, between the parties regarding the subject matter hereof. No change, alteration or modification hereof may be made except in writing signed by both parties hereto. Any waiver to be effective must be in writing, specifically referencing the provision of this Agreement being waived and signed by the party against whom enforcement is being sought. Except as otherwise expressly provided herein, there are no other restrictions or limitations on the Executive's activities following termination of employment. In the event of any inconsistency between this Agreement and any plan, policy, program or arrangement of, or any other agreement with, the Company or any of its subsidiaries or affiliates, the provision most favorable to the Executive shall govern. The headings in this Agreement are for convenience of reference only and shall not be considered part of this Agreement or limit or otherwise affect the meaning hereof. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the laws of the state of Florida (disregarding any choice-of-law rules which might look to the laws of any other jurisdiction).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as otherwise expressly set forth in this Agreement, upon the termination or expiration of the Employment Period, the respective rights and obligations of the parties shall survive such termination or expiration to the extent necessary to carry out the intentions of the parties as embodied under this Agreement. This Agreement shall continue in effect until there are no further rights or obligations of the parties outstanding hereunder and shall not be terminated by either party without the express prior written consent of both parties.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Nothing in this Agreement shall prevent or limit the Executive's continuing or future participation in, or entitlements under, any benefit, bonus, incentive or other plan or program of the Company or any of its subsidiaries or affiliates and for which the Executive may qualify, nor shall anything herein limit or reduce such rights as the Executive may have under any other agreement with the Company or its subsidiaries or affiliates, provided that in no event shall the Executive be entitled to duplication of benefits or payments on a benefit-by-benefit or payment-by-payment basis.

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the day and year first written above.

---

| | |
|:---|:---|
| EXECUTIVE<br><u>_/s/ Bradley H. Brodie_____</u><br><u>_.</u><br>BRADLEY H. BRODIE | DOUGLAS ELLIMAN INC.<br>By: <u>__/s/ Michael S. Liebowitz</u>_____. <br>Name: Michael S. Liebowitz<br>Title: Chief Executive Officer |

---

## Exhibit 10.2

**EXHIBIT 10.2**

DOUGLAS ELLIMAN, LLC

575 MADISON AVENUE

NEW YORK, NEW YORK 10022

March 19, 2025

Stephen Larkin

56 Jane Street, Apt. 2B

New York, NY 10014

Re:&nbsp;&nbsp;&nbsp;&nbsp;Retention Bonus Terms Between Douglas Elliman, LLC ("**Elliman**") and Stephen Larkin ("**you**")

Dear Stephen:

Elliman is pleased to offer you a special retention award for the calendar year 2025 in the pre-tax amount of $75,000.00 (the "**Retention Award**"), to be paid on or before March 31, 2025, on the terms and conditions set forth below. Any required taxes and other withholdings will be deducted from the Retention Award, but no deduction will be made for the Elliman 401K Plan. The Retention Award is expressly conditioned on your agreement to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.You acknowledge that Elliman is offering you the Retention Award to incentivize you to remain employed with Elliman from the date of this letter through December 31, 2027 (the "**Retention Period**"). You agree that if your employment with Elliman ends before the end of the Retention Period, you shall be required to repay Elliman the Retention Award as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.If you voluntarily leave the firm (resignation / retirement) or are terminated for Cause on or before December 31, 2025, you agree to repay Elliman the entire amount of the Retention Award, net of taxes withheld, without further demand, within 10 days after your termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.If you voluntarily leave the firm (resignation / retirement) or are terminated for Cause during the period from January 1, 2026 through December 31, 2026, you agree to repay Elliman $49,500.00 [66%] of the Retention Award, net of taxes withheld, without further demand, within 10 days after your termination.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.If you voluntarily leave the firm (resignation / retirement) or are terminated for Cause during the period from January 1, 2027 through December 31, 2027, you agree to repay Elliman $24,750 [33%] of the Retention Award, net of taxes withheld, without further demand, within 10 days after your termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.In the event you are terminated without Cause, you will not be required to repay the Retention Award or any portion thereof, and no deduction for the amount of the Retention Award will be made from any severance payment to which you are otherwise entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.No portion of this repayment amount will be decreased on a pro rata basis. You hereby waive demand for payment, notice of dishonor and any and all others notices and demands in connection with the repayment of the Retention Award. No delay by Elliman in exercising any power or right shall operate as a waiver of any power or right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.You hereby authorize and consent to Elliman withholding and deducting any required taxes and other withholdings from the Retention Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.This letter is not a guarantee of employment for a specific duration. Your employment remains at-will, meaning that you and Elliman may terminate the employment relationship at any time, with or without Cause and with or without notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.For purposes of this letter agreement, "Cause" shall mean your: (i) conviction of a felony, (ii) your habitual alcohol or substance abuse, which in the reasonable opinion of Elliman materially interferes with your ability to perform your duties, (iii) continued, intentional and willful failure to substantially and materially perform your material duties hereunder (other than absences due to illness or vacation), (iv) willful and deliberate violation of material firm policy, (v) misconduct that results, or is reasonably likely to result, in material harm to the firm or any of its subsidiaries or affiliates, (vi) commission of an act of employment discrimination or sexual harassment in the work place under state or federal law, (vii) taking of any action on behalf of Elliman or any of its affiliates or parents without the appropriate authority to take such action, and (viii) usurpation of a corporate opportunity of Elliman or any of its parents or affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.No waiver or modification of the terms of this letter agreement shall be valid unless in writing, signed by Elliman and you.

------

This letter replaces and supersedes all prior written and verbal discussions concerning a retention award for this calendar year. This offer will expire in three (3) business days after the date of this letter. If you agree to the above terms, please sign below and return the original to Lisa Seligman before the expiration date.

&nbsp;&nbsp;&nbsp;&nbsp;

Sincerely,

DOUGLAS ELLIMAN, LLC

<u>By: _/s/ Lisa Seligman_____________</u>

&nbsp;&nbsp;&nbsp;&nbsp;Lisa Seligman

&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President of Human Resources

&nbsp;&nbsp;&nbsp;&nbsp;Date: July 21, 2025

THE FOREGOING IS AGREED TO AND ACCEPTED:

<u>_/s/ Stephen Larkin______</u>

Stephen Larkin

Date: July 21, 2025

## Exhibit 10.3

**EXHIBIT 10.3**

**[\*\*\*] CERTAIN INFORMATION IN THIS DOCUMENT HAS BEEN EXCLUDED PURSUANT TO REGULATION S-K, ITEM 601(B)(10). SUCH EXCLUDED INFORMATION IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**EQUITY PURCHASE AGREEMENT**

**by and among**

**Residential Management Group, LLC,<br>a Delaware limited liability company, Douglas Elliman Realty, LLC,<br>a New York limited liability company, and** 

**PMG Holdings, Inc.,<br>a Texas corporation**

**Dated: October 24, 2025**

------

**<u>**TABLE OF CONTENTS**</u>**

**<u>Page</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;Purchase and Sale of Interests; Payment of Closing Purchase Price&nbsp;&nbsp;&nbsp;&nbsp;[1](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;Closing Payments&nbsp;&nbsp;&nbsp;&nbsp;[1](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;Closing Statement&nbsp;&nbsp;&nbsp;&nbsp;[2](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;Purchase Price Adjustment&nbsp;&nbsp;&nbsp;&nbsp;[2](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5&nbsp;&nbsp;&nbsp;&nbsp;Form of Payments&nbsp;&nbsp;&nbsp;&nbsp;[5](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6&nbsp;&nbsp;&nbsp;&nbsp;Closing&nbsp;&nbsp;&nbsp;&nbsp;[5](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7&nbsp;&nbsp;&nbsp;&nbsp;Withholding Taxes&nbsp;&nbsp;&nbsp;&nbsp;[5](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8&nbsp;&nbsp;&nbsp;&nbsp;Allocation of Purchase Price for Tax Purposes&nbsp;&nbsp;&nbsp;&nbsp;[5](#i3b2582257f28478289f7220d35e20c67_10)

2.&nbsp;&nbsp;&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES REGARDING THE SELLER.&nbsp;&nbsp;&nbsp;&nbsp;[6](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;Organization&nbsp;&nbsp;&nbsp;&nbsp;[6](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;Necessary Authority&nbsp;&nbsp;&nbsp;&nbsp;[6](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;Title to the Acquired Interests, Etc&nbsp;&nbsp;&nbsp;&nbsp;[6](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;Brokers&nbsp;&nbsp;&nbsp;&nbsp;[6](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;No Breach&nbsp;&nbsp;&nbsp;&nbsp;[6](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6&nbsp;&nbsp;&nbsp;&nbsp;Litigation&nbsp;&nbsp;&nbsp;&nbsp;[7](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7&nbsp;&nbsp;&nbsp;&nbsp;No Other Representations and Warranties&nbsp;&nbsp;&nbsp;&nbsp;[7](#i3b2582257f28478289f7220d35e20c67_10)

3.&nbsp;&nbsp;&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY.&nbsp;&nbsp;&nbsp;&nbsp;[7](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;Organization&nbsp;&nbsp;&nbsp;&nbsp;[7](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;Authorization&nbsp;&nbsp;&nbsp;&nbsp;[7](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;Capitalization&nbsp;&nbsp;&nbsp;&nbsp;[7](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;Binding Agreement&nbsp;&nbsp;&nbsp;&nbsp;[8](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;&nbsp;No Breach&nbsp;&nbsp;&nbsp;&nbsp;[8](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6&nbsp;&nbsp;&nbsp;&nbsp;Permits&nbsp;&nbsp;&nbsp;&nbsp;[8](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7&nbsp;&nbsp;&nbsp;&nbsp;Compliance With Laws&nbsp;&nbsp;&nbsp;&nbsp;[8](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8&nbsp;&nbsp;&nbsp;&nbsp;Assets&nbsp;&nbsp;&nbsp;&nbsp;[8](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9&nbsp;&nbsp;&nbsp;&nbsp;Accounts Receivable&nbsp;&nbsp;&nbsp;&nbsp;[8](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10&nbsp;&nbsp;&nbsp;&nbsp;Intellectual Property&nbsp;&nbsp;&nbsp;&nbsp;[9](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11&nbsp;&nbsp;&nbsp;&nbsp;Contracts&nbsp;&nbsp;&nbsp;&nbsp;[9](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12&nbsp;&nbsp;&nbsp;&nbsp;Litigation&nbsp;&nbsp;&nbsp;&nbsp;[11](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements&nbsp;&nbsp;&nbsp;&nbsp;[11](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14&nbsp;&nbsp;&nbsp;&nbsp;Liabilities&nbsp;&nbsp;&nbsp;&nbsp;[11](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15&nbsp;&nbsp;&nbsp;&nbsp;Taxes&nbsp;&nbsp;&nbsp;&nbsp;[11](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans; ERISA&nbsp;&nbsp;&nbsp;&nbsp;[12](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17&nbsp;&nbsp;&nbsp;&nbsp;Insurance&nbsp;&nbsp;&nbsp;&nbsp;[13](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18&nbsp;&nbsp;&nbsp;&nbsp;Environmental Matters&nbsp;&nbsp;&nbsp;&nbsp;[13](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19&nbsp;&nbsp;&nbsp;&nbsp;Real Estate&nbsp;&nbsp;&nbsp;&nbsp;[14](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20&nbsp;&nbsp;&nbsp;&nbsp;Transactions with Certain Persons&nbsp;&nbsp;&nbsp;&nbsp;[14](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21&nbsp;&nbsp;&nbsp;&nbsp;Employee Matters&nbsp;&nbsp;&nbsp;&nbsp;[14](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22&nbsp;&nbsp;&nbsp;&nbsp;Brokers&nbsp;&nbsp;&nbsp;&nbsp;[15](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.23&nbsp;&nbsp;&nbsp;&nbsp;Privacy and Security&nbsp;&nbsp;&nbsp;&nbsp;[15](#i3b2582257f28478289f7220d35e20c67_10)

ii

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.24&nbsp;&nbsp;&nbsp;&nbsp;Events Subsequent&nbsp;&nbsp;&nbsp;&nbsp;[16](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.25&nbsp;&nbsp;&nbsp;&nbsp;No Other Representations and Warranties&nbsp;&nbsp;&nbsp;&nbsp;[16](#i3b2582257f28478289f7220d35e20c67_10)

4.&nbsp;&nbsp;&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES OF THE PURCHASER&nbsp;&nbsp;&nbsp;&nbsp;[16](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;Organization&nbsp;&nbsp;&nbsp;&nbsp;[16](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;Necessary Authority&nbsp;&nbsp;&nbsp;&nbsp;[16](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;No Breach&nbsp;&nbsp;&nbsp;&nbsp;[17](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;Brokers&nbsp;&nbsp;&nbsp;&nbsp;[17](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;Litigation; Compliance with Law&nbsp;&nbsp;&nbsp;&nbsp;[17](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6&nbsp;&nbsp;&nbsp;&nbsp;Financing&nbsp;&nbsp;&nbsp;&nbsp;[17](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7&nbsp;&nbsp;&nbsp;&nbsp;Investment Intent&nbsp;&nbsp;&nbsp;&nbsp;[17](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8&nbsp;&nbsp;&nbsp;&nbsp;Solvency&nbsp;&nbsp;&nbsp;&nbsp;[18](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9&nbsp;&nbsp;&nbsp;&nbsp;Purchaser's Acknowledgment&nbsp;&nbsp;&nbsp;&nbsp;[18](#i3b2582257f28478289f7220d35e20c67_10)

5.&nbsp;&nbsp;&nbsp;&nbsp;COVENANTS OF THE PARTIES&nbsp;&nbsp;&nbsp;&nbsp;[18](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality&nbsp;&nbsp;&nbsp;&nbsp;[18](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;Post-Closing Employee Benefits&nbsp;&nbsp;&nbsp;&nbsp;[18](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;Director & Officer Insurance&nbsp;&nbsp;&nbsp;&nbsp;[20](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;R&W Insurance&nbsp;&nbsp;&nbsp;&nbsp;[21](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;&nbsp;&nbsp;Seller Names and Trademark License Agreement&nbsp;&nbsp;&nbsp;&nbsp;[21](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6&nbsp;&nbsp;&nbsp;&nbsp;Insurance&nbsp;&nbsp;&nbsp;&nbsp;[21](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7&nbsp;&nbsp;&nbsp;&nbsp;Strategic Alliance Opportunity&nbsp;&nbsp;&nbsp;&nbsp;[22](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8&nbsp;&nbsp;&nbsp;&nbsp;Closing Date Actions&nbsp;&nbsp;&nbsp;&nbsp;[23](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9&nbsp;&nbsp;&nbsp;&nbsp;Restrictive Covenants&nbsp;&nbsp;&nbsp;&nbsp;[23](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10&nbsp;&nbsp;&nbsp;&nbsp;New York Lease&nbsp;&nbsp;&nbsp;&nbsp;[24](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11&nbsp;&nbsp;&nbsp;&nbsp;Retention of Books and Records&nbsp;&nbsp;&nbsp;&nbsp;[24](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12&nbsp;&nbsp;&nbsp;&nbsp;Shared Contracts&nbsp;&nbsp;&nbsp;&nbsp;[24](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13&nbsp;&nbsp;&nbsp;&nbsp;Replacement of Seller Guaranty&nbsp;&nbsp;&nbsp;&nbsp;[25](#i3b2582257f28478289f7220d35e20c67_10)

6.&nbsp;&nbsp;&nbsp;&nbsp;[INTENTIONALLY OMITTED]&nbsp;&nbsp;&nbsp;&nbsp;[25](#i3b2582257f28478289f7220d35e20c67_10)

7.&nbsp;&nbsp;&nbsp;&nbsp;CLOSING DELIVERABLES&nbsp;&nbsp;&nbsp;&nbsp;[25](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;Closing Documents to be Delivered by the Company and the Seller&nbsp;&nbsp;&nbsp;&nbsp;[25](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;Closing Documents to be Delivered and Actions to be Taken by the Purchaser&nbsp;&nbsp;&nbsp;&nbsp;[26](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3&nbsp;&nbsp;&nbsp;&nbsp;Other Closing Documents&nbsp;&nbsp;&nbsp;&nbsp;[26](#i3b2582257f28478289f7220d35e20c67_10)

8.&nbsp;&nbsp;&nbsp;&nbsp;[INTENTIONALLY OMITTED]&nbsp;&nbsp;&nbsp;&nbsp;[27](#i3b2582257f28478289f7220d35e20c67_10)

9.&nbsp;&nbsp;&nbsp;&nbsp;NO SURVIVAL; INDEMNIFICATION; SOLE RECOURSE&nbsp;&nbsp;&nbsp;&nbsp;[27](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;Non-Survival of Representations and Warranties; Limited Survival of Covenants&nbsp;&nbsp;&nbsp;&nbsp;[27](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;Seller Indemnification&nbsp;&nbsp;&nbsp;&nbsp;[27](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp;&nbsp;Non-Recourse&nbsp;&nbsp;&nbsp;&nbsp;[30](#i3b2582257f28478289f7220d35e20c67_10)

10.&nbsp;&nbsp;&nbsp;&nbsp;POST CLOSING MATTERS&nbsp;&nbsp;&nbsp;&nbsp;[30](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp;Cooperation&nbsp;&nbsp;&nbsp;&nbsp;[30](#i3b2582257f28478289f7220d35e20c67_10)

iii

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2&nbsp;&nbsp;&nbsp;&nbsp;Tax Matters.&nbsp;&nbsp;&nbsp;&nbsp;[30](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3&nbsp;&nbsp;&nbsp;&nbsp;Misdirected Payments&nbsp;&nbsp;&nbsp;&nbsp;[32](#i3b2582257f28478289f7220d35e20c67_10)

11.&nbsp;&nbsp;&nbsp;&nbsp;SPECIFIC PERFORMANCE&nbsp;&nbsp;&nbsp;&nbsp;[32](#i3b2582257f28478289f7220d35e20c67_10)

12.&nbsp;&nbsp;&nbsp;&nbsp;PUBLIC STATEMENTS&nbsp;&nbsp;&nbsp;&nbsp;[33](#i3b2582257f28478289f7220d35e20c67_10)

13.&nbsp;&nbsp;&nbsp;&nbsp;EXPENSES&nbsp;&nbsp;&nbsp;&nbsp;[33](#i3b2582257f28478289f7220d35e20c67_10)

14.&nbsp;&nbsp;&nbsp;&nbsp;AMENDMENT AND ASSIGNABILITY&nbsp;&nbsp;&nbsp;&nbsp;[33](#i3b2582257f28478289f7220d35e20c67_10)

15.&nbsp;&nbsp;&nbsp;&nbsp;NOTICES&nbsp;&nbsp;&nbsp;&nbsp;[33](#i3b2582257f28478289f7220d35e20c67_10)

16.&nbsp;&nbsp;&nbsp;&nbsp;WAIVER&nbsp;&nbsp;&nbsp;&nbsp;[35](#i3b2582257f28478289f7220d35e20c67_10)

17.&nbsp;&nbsp;&nbsp;&nbsp;ENTIRE AGREEMENT&nbsp;&nbsp;&nbsp;&nbsp;[35](#i3b2582257f28478289f7220d35e20c67_10)

18.&nbsp;&nbsp;&nbsp;&nbsp;COUNTERPARTS; ELECTRONIC SIGNATURE&nbsp;&nbsp;&nbsp;&nbsp;[35](#i3b2582257f28478289f7220d35e20c67_10)

19.&nbsp;&nbsp;&nbsp;&nbsp;SEVERABILITY&nbsp;&nbsp;&nbsp;&nbsp;[35](#i3b2582257f28478289f7220d35e20c67_10)

20.&nbsp;&nbsp;&nbsp;&nbsp;GOVERNING LAW&nbsp;&nbsp;&nbsp;&nbsp;[35](#i3b2582257f28478289f7220d35e20c67_10)

21.&nbsp;&nbsp;&nbsp;&nbsp;JURISDICTION; WAIVER OF JURY TRIAL&nbsp;&nbsp;&nbsp;&nbsp;[36](#i3b2582257f28478289f7220d35e20c67_10)

22.&nbsp;&nbsp;&nbsp;&nbsp;REPRESENTATION BY COUNSEL&nbsp;&nbsp;&nbsp;&nbsp;[37](#i3b2582257f28478289f7220d35e20c67_10)

23.&nbsp;&nbsp;&nbsp;&nbsp;NO THIRD-PARTY BENEFICIARIES&nbsp;&nbsp;&nbsp;&nbsp;[38](#i3b2582257f28478289f7220d35e20c67_10)

24.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS, APPENDICES AND COMPANY DISCLOSURE SCHEDULE&nbsp;&nbsp;&nbsp;&nbsp;[38](#i3b2582257f28478289f7220d35e20c67_10)

25.&nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS; INTERPRETATION&nbsp;&nbsp;&nbsp;&nbsp;[38](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1&nbsp;&nbsp;&nbsp;&nbsp;Definitions&nbsp;&nbsp;&nbsp;&nbsp;[38](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2&nbsp;&nbsp;&nbsp;&nbsp;Certain Interpretive Matters&nbsp;&nbsp;&nbsp;&nbsp;[48](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3&nbsp;&nbsp;&nbsp;&nbsp;Construction&nbsp;&nbsp;&nbsp;&nbsp;[49](#i3b2582257f28478289f7220d35e20c67_10)

&nbsp;&nbsp;&nbsp;&nbsp;

iv

------

**EXHIBITS**

Exhibit A &nbsp;&nbsp;&nbsp;&nbsp;R&W Insurance Policy

Exhibit B&nbsp;&nbsp;&nbsp;&nbsp;Trademark License Agreement

Exhibit C&nbsp;&nbsp;&nbsp;&nbsp;Assignment Agreement

Exhibit D&nbsp;&nbsp;&nbsp;&nbsp;Seller's Secretary's Certificate

Exhibit E&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally Omitted]

Exhibit F&nbsp;&nbsp;&nbsp;&nbsp;Brokerage Exclusivity Agreement

Exhibit G&nbsp;&nbsp;&nbsp;&nbsp;Purchaser's Secretary's Certificate

Exhibit H&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally Omitted]

Exhibit I&nbsp;&nbsp;&nbsp;&nbsp;Accounting Principles

Exhibit J&nbsp;&nbsp;&nbsp;&nbsp;Net Working Capital

**SCHEDULES**

Schedule 1.8&nbsp;&nbsp;&nbsp;&nbsp;Purchase Price Allocation

Schedule 2.5&nbsp;&nbsp;&nbsp;&nbsp;No Breach

Schedule 2.6&nbsp;&nbsp;&nbsp;&nbsp;Litigation

Schedule 3.5&nbsp;&nbsp;&nbsp;&nbsp;No Breach

Schedule 3.6&nbsp;&nbsp;&nbsp;&nbsp;Material Permits

Schedule 3.7&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Laws

Schedule 3.8&nbsp;&nbsp;&nbsp;&nbsp;Assets

Schedule 3.9&nbsp;&nbsp;&nbsp;&nbsp;Accounts Receivable

Schedule 3.10(a)&nbsp;&nbsp;&nbsp;&nbsp;Intellectual Property

Schedule 3.10(b)&nbsp;&nbsp;&nbsp;&nbsp;Permitted Liens on Intellectual Property

Schedule 3.10(c)&nbsp;&nbsp;&nbsp;&nbsp;Actions against Intellectual Property

Schedule 3.10(e)&nbsp;&nbsp;&nbsp;&nbsp;Unauthorized uses or disclosures of Intellectual Property

Schedule 3.11(a)&nbsp;&nbsp;&nbsp;&nbsp;Material Contracts

Schedule 3.12&nbsp;&nbsp;&nbsp;&nbsp;Litigation

Schedule 3.13&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements

Schedule 3.14&nbsp;&nbsp;&nbsp;&nbsp;Liabilities

Schedule 3.15&nbsp;&nbsp;&nbsp;&nbsp;Taxes

Schedule 3.16(a)&nbsp;&nbsp;&nbsp;&nbsp;Benefit Plans

Schedule 3.16(b)&nbsp;&nbsp;&nbsp;&nbsp;Multiemployer Plans

Schedule 3.16(c)&nbsp;&nbsp;&nbsp;&nbsp;Benefit Plan Contributions

Schedule 3.16(e)&nbsp;&nbsp;&nbsp;&nbsp;Acceleration of Benefits

Schedule 3.17&nbsp;&nbsp;&nbsp;&nbsp;Insurance Policies

Schedule 3.18&nbsp;&nbsp;&nbsp;&nbsp;Environmental Matters

Schedule 3.19(a)&nbsp;&nbsp;&nbsp;&nbsp;Leased Premises

Schedule 3.20&nbsp;&nbsp;&nbsp;&nbsp;Transactions with Certain Persons

Schedule 3.21(a)&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Employment Laws

Schedule 3.21(b)&nbsp;&nbsp;&nbsp;&nbsp;Employee Census

Schedule 3.22&nbsp;&nbsp;&nbsp;&nbsp;Brokers

Schedule 3.23&nbsp;&nbsp;&nbsp;&nbsp;Privacy and Security

Schedule 3.24&nbsp;&nbsp;&nbsp;&nbsp;Events Subsequent

Schedule 5.2(a)&nbsp;&nbsp;&nbsp;&nbsp;Healthcare Costs

Schedule 5.12&nbsp;&nbsp;&nbsp;&nbsp;Shared Contracts

Schedule 7.1(d) &nbsp;&nbsp;&nbsp;&nbsp;Third-Party Consents

------

Schedule 7.1(f)&nbsp;&nbsp;&nbsp;&nbsp;Resignations

------

**EQUITY PURCHASE AGREEMENT**

**THIS EQUITY PURCHASE AGREEMENT** (this "***Agreement***") is entered into effective as of October 24], 2025, by and among PMG Holdings, Inc., a Texas corporation (the "***Purchaser***"), Douglas Elliman Realty, LLC, a New York limited liability company (the "***Seller***"), and Residential Management Group, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Seller (the "***Company***").

**RECITALS**

**WHEREAS**, the Seller owns 100% of the equity interests of the Company (the "***Acquired Interests***");

**WHEREAS**, the Company is engaged in, among other things, the Business; and

**WHEREAS**, the Seller desires to sell and convey the Acquired Interests to the Purchaser, and the Purchaser desires to purchase the Acquired Interests from the Seller, upon the terms and subject to the conditions set forth in this Agreement.

**AGREEMENT**

**NOW, THEREFORE**, in consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

1.**PURCHASE PRICE; CLOSING**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1<u>Purchase and Sale of Interests; Payment of Closing Purchase Price</u>. At the Closing and upon all of the terms and subject to all of the conditions of this Agreement, the Seller will sell, transfer, assign and convey to the Purchaser, and the Purchaser will purchase and accept from the Seller, the Acquired Interests. At the Closing, the Purchaser will pay to the Seller, by wire transfer of immediately available funds, the sum of: (a) $85,000,000 ("***Base Purchase Price***"); <u>plus</u> (b) the amount, if any, by which Estimated Net Working Capital is greater than the Target Net Working Capital; <u>minus</u> (c) the amount, if any, by which the Estimated Net Working Capital is less than the Target Net Working Capital; <u>minus</u> (d) the Estimated Company Indebtedness, if any; <u>minus</u> (e) the Estimated Company Transaction Expenses, if any; and <u>plus</u> (f) the Estimated Closing Cash, if any.

The amount so payable to the Seller at the Closing and adjusted pursuant to <u>Section 1.3(a)</u> is referred to as the "***Closing Purchase Price***" and the Closing Purchase Price, as further adjusted pursuant to <u>Section 1.4(b)</u> is referred to as the "***Purchase Price***."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2<u>Closing Payments</u>. At the Closing, the Purchaser will pay:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the amount of the outstanding Indebtedness of the Company, if any, to the Persons and in the amounts set forth in the Estimated Closing Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the amount of unpaid Company Transaction Expenses, if any, to the Persons and in the amounts set forth in the Estimated Closing Statement; <u>provided</u>, that (i) any Company Transaction Expenses payable to Employees, if any, will be funded to the Company for further payment to the applicable Employees, no later than the first payroll period following the Closing Date and (ii) any associated payroll Taxes will be paid by the Company as required by Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the Closing Purchase Price to the Seller.

For the avoidance of doubt, the Company, the Purchaser and the Seller agree that the Company Transaction Expenses incurred on the Closing Date will be deemed to have been made by the Company

------

prior to the Closing, such that such payments will be deemed, to the fullest extent allowable by applicable Laws, to be a Tax deductible expense of the Company for Pre-Closing Tax Periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3<u>Closing Statement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Delivery of the Estimated Closing Statement</u>. Not later than 5:00 p.m. Eastern Time on the Business Day that is three (3) Business Days prior to the Closing Date, the Company shall prepare and deliver to the Purchaser: (i) a statement (the "***Estimated Net Working Capital Statement***") setting forth the Company's good faith estimate of the Closing Net Working Capital (the "***Estimated Net Working Capital***"), together with an estimated unaudited balance sheet of the Company as of the Effective Time (the "***Estimated Closing Date Balance Sheet***"); (ii) the Company's good faith estimate of the Closing Indebtedness (the "***Estimated Company Indebtedness***"); (iii) the Company's good faith estimate of the Closing Company Transaction Expenses ("***Estimated Company Transaction Expenses***"); (iv) the Company's good faith estimate of the Closing Cash ("***Estimated Closing Cash***") and (v) a calculation of the Closing Purchase Price based on the foregoing (such statement as may be adjusted pursuant to <u>Section 1.3(b)</u>, the "***Estimated Closing Statement***"). The Estimated Closing Statement will contain wire instructions for all of the foregoing payments (or instructions to pay certain amounts by check). The amounts set forth in the Estimated Closing Statement shall be used for purposes of calculating the payments to be made by the Purchaser pursuant to <u>Section 1.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Review and Adjustment of the Estimated Closing Statement</u>. The Estimated Closing Statement shall (i) be prepared in accordance with the Accounting Principles and the applicable definitions contained herein and (ii) include reasonable supporting detail to evidence the Company's calculations, explanations and assumptions for the calculations of the amounts contained therein. The Company shall provide the Purchaser with any additional information reasonably requested by the Purchaser with respect to such calculations and amounts. If the Purchaser objects to any amounts set forth in the Estimated Closing Statement, the Purchaser shall deliver to the Company no later than 11:59 p.m. Eastern Time on the Business Day that is two (2) Business Days prior to the Closing Date, a written statement in reasonable detail describing the Purchaser's good faith objections thereto, and its own determinations of the applicable amounts. The Purchaser and the Company shall in good faith attempt to resolve any of the Purchaser's objections as set forth in the notice from the Purchaser, and the Company shall make such revisions to the disputed items as may be mutually agreed between the Company and the Purchaser. In the event that the Company and the Purchaser fail to agree on the resolution of any of the Purchaser's objections by 5:00 p.m. Eastern Time on the Business Day that is one (1) Business Day prior to the Closing Date, the amounts set forth in the Estimated Closing Statement prepared by the Seller shall be conclusive and binding upon the Purchaser solely for the purposes of determining the amounts payable at Closing. If the Purchaser does not timely deliver such objection notice, the Estimated Closing Statement and the calculation thereof as originally delivered by the Company pursuant to the first sentence of <u>Section 1.3(a)</u> shall control solely for the purposes of determining the amounts payable at Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4<u>Purchase Price Adjustment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Preparation of Closing Date Balance Sheet</u>. As soon as practicable, and in any event within ninety (90) days after the Closing Date, the Purchaser will prepare and deliver to the Seller a balance sheet of the Company as of the Effective Time (the "***Closing Date Balance Sheet***") and a statement of the Purchaser's determination of (i) the Closing Net Working Capital, (ii) Closing Company Indebtedness (if any), (iii) the Closing Company Transaction Expenses (if any), (iv) the Closing Cash (if any) and (v) the amount of the Closing Purchase Price calculated therefrom (such statement, the "***Closing Statement***"). The Closing Date Balance Sheet and the Closing Statement shall (A) be prepared in accordance with the Accounting Principles, (B) include reasonable supporting detail to support the Purchaser's calculations, explanations and assumptions for the calculations of the amounts contained therein and (C) not take into account any events, facts or circumstances occurring after the Closing. "***Actual Net Working Capital***" means the final amount of Closing Net Working Capital on the Final Closing Statement determined pursuant to <u>Section 1.4(a)(ii)</u> or <u>1.4(a)(iii)</u>. "***Actual Company Transaction Expenses***" means the final amount of Closing Company Transaction Expenses on the Final Closing Statement determined pursuant to <u>Section 1.4(a)(ii)</u> or <u>1.4(a)(iii)</u>. "***Actual Company Indebtedness***" means the final amount of Closing Indebtedness on the Final Closing Statement determined pursuant to <u>Section 1.4(a)(ii)</u> or <u>1.4(a)(iii)</u>. "***Actual Closing Cash***" means the final amount of the Closing Cash on the Final Closing Statement determined pursuant to Section <u>1.4(a)(ii)</u> or <u>1.4(a)(iii)</u>. "***Actual Closing***

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***Purchase Price***" means the final amount of the Closing Purchase Price on the Final Closing Statement determined pursuant to Section <u>1.4(a)(ii)</u> or <u>1.4(a)(iii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If the Purchaser fails to deliver the Closing Statement to the Seller within the ninety (90)-day period specified in this <u>Section 1.4(a)</u>, then the Estimated Closing Statement delivered by Seller to Purchaser pursuant to <u>Section 1.3(a)</u> shall be deemed to be the Final Closing Statement for all purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Review and Resolution Period</u>. After receipt of the Closing Statement, the Seller shall have forty-five (45) days to review it (which period may be tolled by up to an additional thirty (30) days for the Seller due to any lack of access to records caused by the Purchaser or the Company or any of their respective Representatives). To the extent reasonably required to complete such review of the Closing Statement, the Purchaser shall provide the Seller with reasonable access during normal business hours to all underlying documentation supporting the Purchaser's calculations set forth in the Closing Statement. The Seller will deliver notice to the Purchaser on or prior to the 45th day (as tolled) after receipt of the Closing Statement specifying in reasonable detail all disputed items with respect to the Closing Statement and the basis therefor. If the Seller fails to deliver such notice in such 45-day (as tolled) period, the Seller will be deemed to have waived its right to contest the Closing Statement. If the Seller notifies the Purchaser of any objections to the Closing Statement in such 45-day (as tolled) period, then the parties shall, within forty-five (45) days following the date of such notice (the "***Resolution Period***"), attempt to resolve their differences and any written resolution by them as to any disputed amount will be final and binding for all purposes under this Agreement. If the Seller in good faith objects to the calculation of any component of the Closing Statement in accordance with the foregoing provisions, the undisputed portion, if any, of the Closing Statement shall be paid in accordance with <u>Section 1.5</u> within five (5) Business Days of the delivery of the applicable notification by the Seller to the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)<u>Dispute Resolution Procedure</u>. If at the conclusion of the Resolution Period the parties have not reached an agreement on any objections with respect to the Closing Statement, then either party may require the dispute be resolved by the Neutral Auditor by providing notice to all parties of such demand. Each party agrees to execute, if requested by the Neutral Auditor, a reasonable engagement letter with respect to the determination to be made by the Neutral Auditor. The Neutral Auditor will determine only those issues still in dispute at the end of the Resolution Period and the Neutral Auditor is not to make any other determination, including not making any determination as to whether the agreed upon dollar amount of the Target Net Working Capital is correct or appropriate. The Neutral Auditor's determination will be based upon and consistent with the terms and conditions of this Agreement, and in making its determination, the Neutral Auditor shall be acting as an expert and not as an arbitrator. The scope of the disputes to be resolved by the Neutral Auditor shall be limited to determining the items in dispute based on the information presented, which shall be determined in accordance with this Agreement (including the definition of Net Working Capital and <u>Exhibit J</u> hereto). The Purchaser and the Seller will use their commercially reasonable efforts to make their respective presentations as promptly as practicable following submission to the Neutral Auditor of the disputed items (provided that it delivers a copy thereof substantially simultaneously to the other party), and each such party will be entitled, as part of its presentation, to respond to the presentation of the other party and any questions and requests of the Neutral Auditor. No party (or its Representatives) shall engage in *ex parte* communication with the Neutral Auditor at any time with respect to any disputed items. Each of Purchaser and Seller may require that the Neutral Auditor enter into a customary form of confidentiality agreement with respect to any work papers, documents, materials and other information relating to the Company provided to the Neutral Auditor. In deciding any matter, the Neutral Auditor may not assign a value to any item greater than the greatest value for such item claimed by the Purchaser or the Seller or less than the smallest value for such item claimed by the Purchaser or the Seller. The Neutral Auditor's determination will be made within forty-five (45) days after its engagement (which engagement will be made as promptly as practicable after the end of the Resolution Period, but in no event later than (10) Business Days following the end of the Resolution Period), or as soon thereafter as possible, will be set forth in a written statement delivered to the Seller and the Purchaser and will

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be final, conclusive, non-appealable and binding for all purposes hereunder; <u>provided</u>, that such determination may be reviewed, corrected or set aside by a court of competent jurisdiction but only if upon a finding that the Neutral Auditor committed manifest error with respect to its determination. Upon such demand made by a party, the other party hereto covenants and agrees to jointly submit the matter to the Neutral Auditor for purposes of the dispute resolution procedure set forth in this <u>Section 1.4(a)(iii)</u>. All fees and expenses relating to the work, if any, to be performed by the Neutral Auditor will be borne (i) by the Purchaser in the proportion that the aggregate dollar amount of the disputed items that are successfully disputed by the Seller (as finally determined by the Neutral Auditor) bears to the aggregate dollar amount of all disputed items and (ii) by the Seller in the proportion that the aggregate dollar amount of the disputed items that are unsuccessfully disputed by the Seller (as finally determined by the Neutral Auditor) bears to the aggregate dollar amount of all disputed items. For example, if the parties dispute $1,000,000 of a proposed upwards Purchase Price adjustment to be paid to the Seller, the Neutral Auditor determines that such payment should be $400,000 and the Neutral Auditor's fees and expenses are $100,000, then (i) the Purchaser shall pay $40,000 (40%) of such fees and expense and (ii) the Seller shall pay $60,000 (60%) of such fees and expenses. Except as provided in the preceding sentence, all other costs and expenses incurred by the parties in connection with resolving any dispute hereunder before the Neutral Auditor will be borne by the party incurring such cost and expense. The term "***Final Closing Statement***" will mean the definitive Closing Statement agreed to by the Seller and the Purchaser in accordance with <u>Section 1.4(a)(ii)</u> or the definitive Closing Statement resulting from the determination made by the Neutral Auditor in accordance with the dispute resolution procedure set forth in this <u>Section 1.4(a)(iii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Post-Closing Purchase Price Adjustment</u>. If the Actual Closing Purchase Price exceeds the Closing Purchase Price, then the Purchaser shall pay to the Seller an amount equal to such sum by wire transfer of immediately available funds. If the Actual Closing Purchase Price is less than the Closing Purchase Price, then the Seller shall pay to the Purchaser an amount equal to such sum by wire transfer of immediately available funds. Any payment owed pursuant to this <u>Section 1.4(b)</u> will be paid within five (5) Business Days after the Actual Closing Purchase Price is agreed to by the Seller and the Purchaser or is determined by the Neutral Auditor in accordance with <u>Section 1.4(a)(iii)</u> or is otherwise deemed final pursuant to <u>Section 1.4(a)</u>. If such amount is not timely paid in accordance with this <u>Section 1.4(b)</u>, then such amount shall bear interest at the rate of eight percent (8%) per annum from the date such amount is due hereunder until paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5<u>Form of Payments</u>. Except as expressly provided herein or mutually agreed by the Seller and the Purchaser, all payments under this Agreement will be made by delivery to the recipient by depositing, by wire transfer, the required amount (in immediately available funds in United States currency) in an account of the recipient, which account will be designated by the recipient in writing at least three (3) Business Days prior to the date of the required payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6<u>Closing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The closing of the transactions contemplated by this Agreement (the "***Closing***") will take place concurrently with the execution of this Agreement (and effective as of the date first set forth above) or such other date and time as the Purchaser and the Seller may agree (the "***Closing Date***"). The Closing shall take place remotely through the mutual exchange via electronic means of executed copies of documents (including in "portable document format" (.pdf) form, DocuSign or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document). To the extent permitted by Law and GAAP, for Tax and accounting purposes, the parties will treat the Closing as being effective at 12:01 a.m. Eastern Time on the Closing Date (the "***Effective Time***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)At the Closing, (i) the Seller or the Company will deliver to the Purchaser the various certificates, instruments, and documents referred to in <u>Section 7.1</u> and (ii) the Purchaser will make the payments set forth in <u>Section 1.2</u> and deliver to the Seller the various certificates, instruments, and documents referred to in <u>Section 7.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7<u>Withholding Taxes</u>. Notwithstanding any other provision in this Agreement, the Purchaser, the Company and the Seller shall have the right to deduct and withhold Taxes from any payments to be made hereunder if such withholding is required by Law and to collect any necessary Tax forms, including IRS Form W-9, or any similar information, in consultation with the Seller, and such

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amounts shall be reflected in the Estimated Closing Statement; provided, however, that the parties acknowledge and agree that no amounts shall be deducted or withheld so long as the Seller delivers an IRS Form W-9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8<u>Allocation of Purchase Price for Tax Purposes</u>. Within 60 days following the determination of the Actual Closing Purchase Price in accordance with <u>Section 1.4</u>, the Seller shall deliver to the Purchaser a proposed allocation of the Actual Closing Purchase Price (and the amount of any liabilities or other items required to be treated as purchase price for U.S. federal income tax purposes) among the Assets of the Company in accordance with the methodology set forth on <u>Schedule 1.8</u> and the requirements of Section 1060 of the Code and the Treasury Regulations thereunder (the "***Allocation***"). The Purchaser will have thirty (30) days to review the proposed Allocation and notify the Seller, in writing, of any comments that it may have with respect thereto. If the Purchaser has not notified the Seller of any comments within such thirty (30)-day period then the Allocation, as prepared by the Seller, shall be final and binding. If the Purchaser provides the Seller with any written comments within such thirty (30)-day period, then the Purchaser and the Seller shall negotiate in good faith to resolve any disputes. The Allocation, if finally agreed to by the Purchaser and the Seller, shall be binding on both the Purchaser and the Seller, and the parties will file their respective Tax Returns in a manner consistent with such Allocation. The parties agree to take no future action or position in any Tax audit, Tax controversy, Tax Return or otherwise which is inconsistent with an agreed upon Allocation, unless required to do so by a "determination" as defined in Section 1313 of the Code.

2.**REPRESENTATIONS AND WARRANTIES REGARDING THE SELLER.**

The Seller hereby represents and warrants to the Purchaser the following matters in this <u>Article 2</u>. These representations and warranties, as qualified by the applicable sections of the Disclosure Schedules, are made as of the Closing Date, except to the extent that a representation or warranty or section of the Disclosure Schedules expressly states that such representation or warranty, or information in such section of the Disclosure Schedules, is made only as of an earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1<u>Organization</u>. The Seller is a limited liability company duly formed, validly existing and in good standing under the Laws of the State of New York, and is qualified or registered to do business in each jurisdiction in which the nature of its business or operations would require such qualification or registration, except where the failure to be so qualified or registered 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 and the other Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2<u>Necessary Authority</u>. The Seller has the requisite power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party, to perform its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. This Agreement has been duly authorized, executed and delivered by the Seller and, assuming the due authorization, execution and delivery by the Purchaser, constitutes the legal, valid and binding obligations of the Seller enforceable against the Seller in accordance with its terms and conditions (subject to the Enforceability Exceptions). Upon execution and delivery at the Closing by the Seller, each other Transaction Document to which the Seller is, or is specified to be, a party, will be duly and validly executed by the Seller, and delivered to the Purchaser on the Closing Date, and will constitute (assuming, in each case, the due authorization, execution and delivery by each other party thereto (other than the Company)) the Seller's legal, valid and binding obligation, enforceable against it in accordance with its terms (subject to the Enforceability Exceptions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3<u>Title to the Acquired Interests, Etc</u>. The Seller owns good and valid title to the Acquired Interests free and clear of any and all Liens (other than restrictions on transfers of securities pursuant to federal or state securities Laws) and upon delivery of the Acquired Interests to the Purchaser on the Closing Date in accordance with this Agreement and upon the Purchaser's payment of the closing payments in accordance with <u>Section 1.1</u> and <u>Section 1.2</u>, the entire legal and beneficial interest in the Acquired Interests and good and valid title to the Acquired Interests, free and clear of all Liens (other than restrictions on transfers of securities pursuant to federal or state securities Laws), will pass to the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4<u>Brokers</u>. Except as set forth on <u>Schedule 3.22</u>, no broker, finder or investment banker or other person is directly or indirectly entitled to any brokerage, finder's or other fee or commission or any similar charge in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Seller.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5<u>No Breach</u>. Except as set forth on <u>Schedule 2.5</u>, the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby by the Seller do not and will not (a) violate or conflict with the Governing Documents of the Seller or (b) violate any Law to which the Seller is subject, except in the case of clause (b) as would not reasonably be expected to adversely impact the Seller's ability to consummate the transactions contemplated by this Agreement or any Transaction Document to which the Seller is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6<u>Litigation</u>. Except as set forth on <u>Schedule 2.6</u>, (a) there is no Action, judgment, decree, or settlement pending or, to the Seller's Knowledge, threatened against the Seller and (b) there are no Orders outstanding against the Seller, in each case, that would reasonably be expected to adversely impact the Seller's ability to consummate the transactions contemplated by this Agreement or any Transaction Document to which the Seller is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7<u>No Other Representations and Warranties</u>. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THIS <u>ARTICLE 2</u>, NEITHER THE SELLER, NOR ANY OTHER PERSON ACTING ON BEHALF OF SELLER MAKES ANY REPRESENTATION OR WARRANTY OR STATEMENTS (INCLUDING BY OMISSION) OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, TO THE PURCHASER OR ANY OF ITS NON-RECOURSE PARTIES, INCLUDING ANY RELATING TO THE FUTURE OR HISTORICAL FINANCIAL CONDITION, RESULTS OF OPERATIONS, PROSPECTS, THE ASSETS, OR THE LIABILITIES OF THE COMPANY OR THE QUALITY, QUANTITY OR CONDITION OF THE ASSETS OR THE ACCURACY OR COMPLETENESS OF ANY INFORMATION PROVIDED TO (OR OTHERWISE ACQUIRED BY) PURCHASER OR ANY OF ITS NON-RECOURSE PARTIES.

3.**REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY.**

The Seller represents and warrants to the Purchaser the matters set forth in this <u>Article 3</u>. These representations and warranties, as qualified by the applicable sections of the Disclosure Schedules are made as of the Closing Date, except to the extent that a representation, warranty or section of the Disclosure Schedules expressly states that such representation or warranty, or information in such section of the Disclosure Schedules, is made only as of an earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1<u>Organization</u>. The Company is a limited liability company duly formed, validly existing and in good standing under the Laws of the State of Delaware, and is qualified or registered to do business and in good standing in each jurisdiction in which the nature of its business or operations would require such qualification or registration, except where failure to be registered or qualified would not, individually or in the aggregate, reasonably be expected to be material to the Company, taken as a whole. Copies of the Governing Documents of the Company, as currently in effect, have been made available to the Purchaser, and each such copy is true, correct and complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2<u>Authorization</u>. The Company has the requisite power and authority to (a) own, lease and operate the Assets and carry on the Business as now being conducted and (b) execute and deliver this Agreement and the other Transaction Documents to which it is a party, to perform its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3<u>Capitalization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Acquired Interests constitute all of the issued and outstanding equity securities of the Company. The Seller is the sole legal and beneficial owner of the Acquired Interests. The Acquired Interests (i) have been duly authorized and validly issued; and (ii) were not issued in violation of any preemptive rights or rights of first refusal or first offer. There are no outstanding or authorized Convertible Securities, equity appreciation, phantom equity, redemption rights, repurchase rights or similar rights with respect to the equity of the Company. There are no voting trusts, proxies, equityholder agreements or any other agreements or understandings with respect to the voting of the Acquired Interests. There are no preemptive rights or rights of first refusal or first offer with respect to the Acquired Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Company has no Subsidiaries and does not own any equity interests of any other Person or any other interest in any other Person or any rights to acquire any such equity interests or other interest.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4<u>Binding Agreement</u>. This Agreement has been duly executed by the Company and delivered to the Purchaser, and, assuming the due authorization, execution and delivery by the Purchaser, constitutes the legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms (subject to the Enforceability Exceptions). Upon execution and delivery at the Closing by the Company, each other Transaction Document to which the Company is, or is specified to be, a party, will be duly and validly executed by the Company, and delivered to the Purchaser on the Closing Date, and will constitute (assuming, in each case, the due authorization, execution and delivery by each other party thereto (other than the Seller)) legal, valid and binding obligation of the Company, enforceable against it in accordance with its terms (subject to the Enforceability Exceptions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5<u>No Breach</u>. Except as set forth on <u>Schedule 3.5</u>, the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby by the Company do not and will not (a) violate or conflict with the Governing Documents of the Company; (b) violate or conflict with, in any material respect, any Law to which the Company is subject; (c) violate, breach or conflict with, constitute or create a default under (with or without giving notice or the lapse of time or both), or give rise to any right of termination, cancellation or acceleration under, or result in a loss of a material benefit under or the creation or effectiveness of a new material obligation under, any of the terms, conditions or provisions of any Material Contract; or (d) result in the imposition of a Lien on any of the Assets, except in the case of clauses (b) through (d) as would not, individually or in the aggregate, reasonably be expected to be material to the Company, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6<u>Permits</u>. The Company possesses all material Permits required to own the Assets and conduct the Business as now being conducted (such Permits, the "***Material Permits***"). <u>Schedule 3.6</u> sets forth, as of the date of this Agreement, a list of all Material Permits, which such Material Permits are valid and in full force and effect. Except as set forth on <u>Schedule 3.6</u>, since the Lookback Date, the Company has not, (i) been in violation or breach of, or default under, any Material Permit or (ii) received any written (or to the Company's Knowledge, oral) notice from any Governmental Authority of any actual or alleged, violation of, breach of, loss of a material benefit under or non-renewal of, any Material Permit, in each case, other than as has not had or would not, individually or in the aggregate, reasonably be expected to be material to the Company, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7<u>Compliance With Laws</u>. Except as set forth on <u>Schedule 3.7</u>, the Company is, and since the Lookback Date has been, in compliance, in all material respects, with all Laws (other than Laws relating to Tax, ERISA, Environmental Laws, employment, labor and Privacy and Security Laws, which are referenced in <u>Sections 3.15</u>, <u>3.16</u>, <u>3.18</u>, <u>3.21</u>, and <u>3.23</u>) applicable to the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8<u>Assets</u>. Except as set forth on <u>Schedule 3.8</u>, the Company has good and marketable title to all of the Assets (excluding Intellectual Property which is addressed exclusively in <u>Section 3.10</u> hereof), free and clear of all Liens (except Permitted Liens), except as would not, individually or in the aggregate, reasonably be expected to be material to the Company, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9<u>Accounts Receivable</u>. Except as set forth on <u>Schedule 3.9</u>, all accounts receivable of the Company shown on the balance sheet included in the Financial Statements and on the Estimated Closing Date Balance Sheet arose from sales actually made or services actually performed in the Ordinary Course of Business, and to the Company's Knowledge, constitute valid, undisputed receivables of the Company not subject to claims of set off or other defenses or counterclaims. The reserve for bad debts shown on the Financial Statements or, with respect to accounts receivable arising after the date of such statements, on the accounting records of the Company, have been determined in accordance with GAAP, consistently applied, subject to normal year-end adjustments and the absence of disclosures normally made in footnotes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10<u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Schedule 3.10(a)</u> sets forth all registrations, issuances, and pending applications for Intellectual Property included in Company IP, specifying as to each item, as applicable: (i) the record owner of the item; (ii) the jurisdictions in which the item is issued or registered or in which an application for issuance or registration has been filed; and (iii) the issuance, registration or application numbers and dates ("***Registered Company IP***"). To the Company's Knowledge, all the Registered Company IP are valid, subsisting, and enforceable and the Company has timely made all filings, payments and ownership

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recordations with the appropriate foreign and domestic agencies required for all Registered Company IP on or before the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Except as set forth on <u>Schedule 3.10(b)</u>, the Company owns, free and clear of all Liens (other than non-exclusive license rights granted in the Ordinary Course of Business), all of the Company IP used by the Company in the conduct of Business as of the Closing Date. Except as set forth on <u>Schedule 3.10(b)</u>, to the Company's Knowledge, the Company has valid and enforceable licenses to use all third party Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Except as set forth on <u>Schedule 3.10(c)</u>, to the Company's Knowledge, there is no infringement, dilution, misappropriation, or other unauthorized use (i) by the Company of any Intellectual Property owned by any other Person, or (ii) by any other Person of any Company IP. Except as set forth on <u>Schedule 3.10(c)</u>, the Company has not received any written (or to the Company's Knowledge, oral) complaint or notice of any Action involving matters of the types contemplated by the immediately preceding sentence, which Action remains unresolved as of the Closing Date. There is no opposition or cancellation proceeding pending against the Company concerning the ownership, validity, enforceability or infringement of any Registered Company IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)To the Company's Knowledge, no Company IP that is a Trade Secret has been the subject of any unauthorized access, use, or theft. The Company has used and continues to use commercially reasonable efforts to protect and maintain such Trade Secrets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)To the Company's Knowledge, there have been no successful unauthorized intrusions or material breaches of the security of the Company Systems owned or controlled by the Company. Except as set forth on <u>Schedule 3.10(e)</u>, to the Company's Knowledge, there are no (and have not been any) unauthorized uses or disclosures of any Company IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11<u>Contracts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Schedule 3.11(a)</u> contains a complete, current and correct list of all of the following Contracts to which the Company or its Assets is currently bound (collectively the "***Material Contracts***"); <u>provided</u>, that for purposes of this <u>Section 3.11</u>, the term Contracts shall not include (x) Leases, Benefit Plans or insurance policies or so long as such Contracts are disclosed on <u>Schedule 3.19(a)</u>, <u>Schedule 3.16(a) or</u> <u>Schedule 3.17</u> respectively, if required to be disclosed thereon and (y) Contracts which are non-disclosure agreements with third parties which are entered into in the Ordinary Course of Business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any Contract or group of related Contracts providing property management services to a third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)any Contract or group of related Contracts which involve annual expenditures or receipts by the Company (taken as a whole) in excess of $100,000 for the twelve (12)-month period prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)any Contract with any of the officers, directors or Employees of the Company not otherwise listed on another Disclosure Schedule hereto, including all non-competition, non-solicitation, severance, and indemnification agreements with any such Person, but in each case, other than form offer letters or form Contracts entered into in the Ordinary Course of Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)any partnership, joint venture or profit-sharing agreement entered into with any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)any settlement agreement involving Actions by or against the Company under which the Company has outstanding obligations (other than confidentiality obligations) or involving the payment of more than $100,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)any loan agreement, agreement of Indebtedness, credit, note, letter of credit, security agreement, guarantee, mortgage, indenture, performance or surety bond or other

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document relating to the borrowing of money or extension of credit, in each case, involving more than $100,000 by or to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)any Contract containing any limitation on the freedom of the Company to engage in any line of business or compete with any Person or to operate at any location in the world;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)any Contract entered into since the Lookback Date, relating to (A) the disposition (and any granting of a right of first refusal or negotiation with respect thereto), other than in the Ordinary Course of Business, of a material portion of the assets or other business operations of the Company, or (B) the acquisition other than in the Ordinary Course of Business of a material portion of the assets or other business operations of, or any interest in, any business of another Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)any Intellectual Property license agreements under which the Company is granted the right to use third party Intellectual Property (excluding licenses for commercially available or other off-the-self software or similar SaaS agreements);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)any Contract that contains any indemnification obligation of the Company other than those entered into in the Ordinary Course of Business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)each Contract for the lease of Personal Property involving aggregate payments of more than $100,000 in any twelve (12)-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) All of the Material Contracts are in full force and effect in all material respects, and are valid, binding, and enforceable against the Company, and to the Company's Knowledge, the other parties thereto, in accordance with their terms (subject to the Enforceability Exceptions), (ii) there exists no material breach, material default or material violation on the part of the Company or, to the Company's Knowledge, on the part of any other party to any such Material Contract and (iii) since the Lookback Date, neither the Seller nor the Company has received any written (or to the Company's Knowledge, oral) notice of the termination of any Material Contract prior to its expected expiration as set forth in its terms and conditions. True, correct and complete copies of the Material Contracts have been made available to the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12<u>Litigation</u>. Except as set forth on <u>Schedule 3.12</u>, (a) there is no material Action, judgment, decree, or settlement, pending or rendered since the Lookback Date, or, to the Company's Knowledge, threatened against the Company, and (b) there are no material Orders outstanding against the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13<u>Financial Statements</u>. Attached to <u>Schedule 3.13</u> are true, correct and complete copies of the unaudited balance sheets and statements of income of the Company (collectively, the "***Financial Statements***") as of and for each of the fiscal years ended December 31, 2022, December 31, 2023 and December 31, 2024 and as of and for the six (6)-month period ended June 30, 2025 (such date, the "***Latest Balance Sheet Date***"). The Financial Statements were derived from and prepared in accordance with the books of account and other financial records of the Company, and present fairly, in all material respects, the financial condition and the results of operations of the Company as of the respective dates and for the respective periods thereof. The Financial Statements have been prepared in accordance with GAAP consistently applied through and among the periods indicated (<u>provided</u>, that the Financial Statements do not contain footnotes and presentation items required by GAAP and are subject to normal adjustments at the end of the fiscal year).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14<u>Liabilities</u>. The Company has no liabilities, obligations or commitments of a nature required by GAAP to be included or reserved for on the balance sheet of the Company except: (a) liabilities that are accrued and reflected on the Financial Statements; (b) liabilities that are listed on <u>Schedule 3.14</u>; (c) liabilities that have arisen in the Ordinary Course of Business since the Latest Balance Sheet Date; (d) liabilities that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and (e) executory obligations under Contracts (other than liabilities relating to any breach thereof by the Company).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15<u>Taxes</u>. Except as set forth on <u>Schedule 3.15</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Seller has filed all Tax Returns on behalf of the Company required to have been filed by the Seller with respect to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)all such Tax Returns are accurate and complete in all material respects and were prepared in compliance with all Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)all material Taxes due and payable by the Company (whether or not shown on any Tax Return), including any and all Taxes owed in any jurisdiction outside of the United States, have been timely paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the Company is not currently the beneficiary of any extension of time within which to file any Tax Return;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)no claim has been made since the Lookback Date against the Company by a Governmental Authority in a jurisdiction where the Company does not file Tax Returns that the Company is or may be subject to taxation by that jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)there are no Liens on any Assets that arose in connection with any failure (or alleged failure) to pay any Tax, other than Permitted Liens described in clause (a) of the definition thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)no Tax deficiency has been asserted against or with respect to the Company by any Governmental Authority in writing which Tax remains unpaid and the Company has not received from any Taxing Authority any written (or to the Company's Knowledge, oral) notice of proposed adjustment, deficiency, or underpayment of Taxes which has not since been satisfied by payment or been withdrawn;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)the Company is currently not the subject of a Tax audit or examination by any Taxing Authority and no such Tax audit or examination has been threatened against the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the Company has collected or withheld all material Taxes required to be collected or withheld thereby, and all such Taxes have been paid to the appropriate Governmental Authorities to the extent due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)the Company does not have any liability for the Taxes of any Person under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local, or foreign Law), as a transferee, by contract (other than a Commercial Non-Tax Contract) or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)the Company has not granted and is not subject to any waiver of the period of limitations for the assessment or payment of Tax for any currently open taxable period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)the Company is not required to include any item of income the tax in respect of which will be due and payable by the Company following the Closing Date pursuant to Section 481 of the Code as a result of a change in method of accounting made prior to the Closing Date.

This <u>Section 3.15</u>: (i) contains the sole and exclusive representations and warranties of the Company with respect to Taxes and (ii) shall only be construed and interpreted as applying to Taxes and associated liabilities occurring in or related to Pre-Closing Tax Periods (including, for the avoidance of doubt, Tax liabilities incurred due to income inclusions triggered in a Pre-Closing Tax Period, but which are payable over a period of time) and shall not apply in any respect to Taxes and associated liabilities occurring in or related to Tax periods (or portions thereof) ending after the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16<u>Employee Benefit Plans; ERISA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Schedule 3.16(a)</u> contains a true and complete list of all employee benefit plans (within the meaning of Section 3(3) of ERISA) and any deferred compensation arrangements, bonus

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compensation plans or policies, severance pay, disability, vacation and sick leave benefits and any similar plan, programs and arrangements that are available to and for the benefit of Employees of the Company that are maintained or sponsored by the Company, or with respect which the Company has any material liability (collectively, the "***Benefit Plans***"). Except as would not give rise to a material liability to the Company, with respect to any Benefit Plan, no Actions (other than routine claims for benefits in the ordinary course) are pending or, to the Company's Knowledge, threatened. With respect to each Benefit Plan that is intended to be qualified within the meaning of Code Section 401(a) has received, or is entitled to rely upon, a favorable determination or opinion letter as to its qualification. Each Benefit Plan has been operated in compliance with its terms and with the requirements of all applicable Laws, except to the extent such non-compliance would not reasonably be expected to affect the qualified status of any Benefit Plan or give rise to a material liability to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Except as would not give rise to a material liability to the Company, or except as set forth on <u>Schedule 3.16(b)</u>, at no time since the Lookback Date has the Company or any member of its "Controlled Group" (defined as any organization which is a member of a controlled group of organizations within the meaning of Code Sections 414(b), (c), (m) or (o)) maintained, sponsored or contributed to, or been obligated to contribute to any Benefit Plan which is subject to Title IV of ERISA or Section 412 of the Code or to any "multiemployer plan", within the meaning of Section 3(37) or Section 4001(a)(3) of ERISA. No event has occurred and no condition exists with respect to a Benefit Plan that could result in a material Tax, Lien, or other material liability imposed by ERISA, the Code or other Laws on the Company. Except as would not give rise to a material liability to the Company, the Company does not maintain and has no liability with respect to retiree life or retiree health insurance plans that provide for benefits or coverage for any participant or any beneficiary of a participant following termination of employment except as may be required under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("***COBRA***") or at the sole expense of the participant or any participant's beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Except as set forth on <u>Schedule 3.16(c)</u> or as would not, individually or in the aggregate, reasonably be expected to be material to the Company, taken as a whole, all required contributions to, and premium payments on account of, each Benefit Plan have been made on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Except as would not give rise to a material liability to the Company, each Benefit Plan that is subject to Section 409A of the Code has been administered in compliance in all material respects with its terms and the operational and documentary requirements of Section 409A of the Code and all applicable regulatory guidance (including notices, rulings and proposed and final regulations) thereunder. The Company does not have any obligation to gross up, indemnify or otherwise reimburse any individual for any excise taxes, interest or penalties incurred pursuant to Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Except as would not give rise to a material liability to the Company, or except as set forth on <u>Schedule 3.16(e)</u>, no Benefit Plan exists that, as a result of the execution and delivery of this Agreement nor the consummation or of the transactions contemplated by this Agreement, would (either alone or in combination with another event): (i) result in the acceleration of the time of payment or vesting, or increase or require the funding of any obligation or provide for provision of any other rights or benefits to any Employee or former Employee of the Company; (ii) increase any material benefits otherwise payable under, or result in any other material obligation pursuant to, any Benefit Plan; (iii) limit or restrict the right of the Company to merge, amend or terminate any Benefit Plan; or (iv) result in an "excess parachute payment" or gross-up right or other payment to any "disqualified individual" within the meaning of Section 280G(c) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17<u>Insurance</u>. <u>Schedule 3.17</u> lists all (a) third-party insurance policies which provide coverage to the Company as of the Closing Date (excluding insurance policies related to the Benefit Plans and provided on <u>Schedule 3.16(a)</u>) (any third-party insurance policies listed on <u>Schedule 3.17</u> or otherwise in effect immediately prior to Closing and covering the Company, an "***Existing Insurance Policy***"), and (b) self-insurance programs maintained by the Seller, the Company or their Affiliates which provide coverage to the Company as of the Closing Date (any self-insurance programs listed on <u>Schedule 3.17</u> or otherwise in effect immediately prior to Closing and covering the Company, an "***Existing Self-Insurance Program***"). With respect to each such insurance policy, (a) the Company has not received

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written (or to the Company's Knowledge, oral) notice that it is in default with respect to any obligations under any policy, and (b) to the Company's Knowledge, as of the Closing Date, no insurer on any policy has been declared insolvent or placed in receivership, conservatorship or liquidation. The Company has not received any written (or to the Company's Knowledge, oral) notice of cancellation or termination with respect to any insurance policy existing as of the Closing Date that is held by, or for the benefit of, the Company. All such insurance policies are in full force and effect as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18<u>Environmental Matters</u>. Except as set forth on <u>Schedule 3.18</u> or as has not had or would not, individually or in the aggregate, reasonably be expected to be material to the Company, taken as a whole: (a) the Company is, and since the Lookback Date has been, in compliance in all material respects with all applicable Environmental Laws, (b) since the Lookback Date, the Company has not received written (or to the Company's Knowledge, oral) notice regarding any actual or alleged violation of any Environmental Law, which has not been remedied, (c) there are no Actions pending or, to the Company's Knowledge, threatened against the Company under or relating to Environmental Laws including those that involve or relate to the release, use, disposal or arranging for disposal of any Hazardous Materials and (d) the Company has not disposed of, or arranged for the disposal of, Hazardous Materials in a manner or to a location that would reasonably be expected to result in material liability to the Company under or relating to Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19<u>Real Estate</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Schedule 3.19(a)</u> contains a true, complete and accurate list of all premises leased, subleased, or licensed by the Company for the operation of the Business (the "***Leased Premises***"), and of all material leases, subleases, or licenses (including amendments and modifications thereof) (collectively, the "***Leases***"). The Company has made available to the Purchaser complete copies of the Leases. Each Lease is in full force and effect and constitutes a valid and enforceable obligation of the Company in accordance with its terms (subject to the Enforceability Exceptions). The Company is in compliance with the terms and requirements of each Lease, and to the Company's Knowledge, each party to such Lease is in compliance with the terms and requirements thereof, except in either case for breaches or defaults that would not, individually or in the aggregate, reasonably be expected to be material to the Company, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Company does not own any real property in fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20<u>Transactions with Certain Persons</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as set forth on <u>Schedule 3.20</u>, no current officer of the Company, nor any member of any such individual's immediate family is presently, or within the past three (3) years has been, a party to any transaction with the Company, including but not limited to any Contract or other arrangement: (a) providing for the furnishing of services by or to the Company; (b) providing for the rental of real or personal property from or to the Company; or (c) otherwise requiring payments from or to any such individual or any Person in which any such individual has an interest as an owner, officer, director, manager, trustee or partner (in each case, other than transactions involving services or expenses as directors, officers, equityholders or Employees of the Company in the Ordinary Course of Business).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)All intercompany accounts between the Seller and any of its Affiliates, on the one hand, and the Company, on the other hand, have been settled or otherwise eliminated at no incremental cost to the Company after the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21<u>Employee Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as set forth on <u>Schedule 3.21(a)</u> and as have not had, and would not, individually or in the aggregate, reasonably be expected to be material to the Company, taken as a whole:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)since the Lookback Date, the Company has been and is in compliance with all applicable Laws relating to labor and employment, including but not limited to all Laws relating to employment practices; the hiring, promotion, assignment, and termination of employees; discrimination; equal employment opportunities; disability; labor relations; wages and hours; hours of work, including meal and rest breaks; payment of wages; immigration; workers' compensation; background and credit checks, working conditions; occupational safety

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and health; family and medical leave; or employee terminations; data privacy and data protection,;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)there are no pending or, to the Company's Knowledge, threatened, lawsuits, grievances, unfair labor practice charges, arbitrations, charges, investigations, hearings, actions, claims, or proceedings (including without limitation any administrative investigations, charges, claims, actions, or proceedings), against the Company brought by or on behalf of any applicant for employment, any Employee or former Employee, representative, agents, consultant, independent contractor, subcontractor, or leased Employee, volunteer, or "temp" of the Company, or any group or class of the foregoing, or any Governmental Authority, in each case alleging violation of any labor or employment Laws, breach of any collective bargaining agreement, breach of any express or implied contract of employment, wrongful termination of employment, or any other discriminatory, wrongful, or tortious conduct in connection with the employment relationship; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)to the Company's Knowledge, each of the Employees of the Company has all work permits, immigration permits, visas, or other authorizations required by Law for such employee given the duties and nature of such Employee's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Schedule 3.21(b)</u> includes a complete and accurate list of all Employees of the Company as of ten (10) days before the Closing Date showing for each as of that date the Employee's name, job title or description, base wage or salary and also showing any cash bonus, commission or other remuneration other than base wage or salary (other than any such arrangements under which payments are at the discretion of the Company or are paid pursuant to a Benefit Plan) paid during the fiscal year ending December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Company is not a party to any collective bargaining agreement, works council agreements, labor union contracts, trade union agreements, or other similar agreement or Contract with any labor organization, employee association, or other representative of any of the Employees of the Company. As of this date, to the Company's Knowledge, there are no activities or proceedings of any labor union, employee association, or other party to organize or represent such Employees. Since the Lookback Date, to the Company's Knowledge there has not occurred or, been threatened, any strike, slow-down, picketing, work-stoppage, boycotts, handbilling, demonstrations, leafleting, sit-ins, sick-outs, or other similar forms of organized labor disruption with respect to any Employees and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22<u>Brokers</u>. Except as set forth on <u>Schedule 3.22</u>, no broker, finder or investment banker or other Person is directly or indirectly entitled to any brokerage, finder's or other similar contingent fee or commission or any similar charge in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.23<u>Privacy and Security</u>. Except as set forth on Schedule 3.23:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Since the Lookback Date: (i) the Company has maintained written policies and procedures with respect to the privacy and security of Personal Information gathered or accessed in the course of the operations of the Company, (ii) such policies and procedures have been commercially reasonable and, to the Company's Knowledge, compliant with applicable Privacy Requirements in all material respects, and (iii) the Company has been in compliance with such policies and procedures in all material respects. The Company maintains disaster recovery plans, procedures and facilities in place that are intended to minimize the disruption of the Business in the event of any material failure of any of the Company Systems in accordance in all material respects with applicable Privacy Requirements. Since the Lookback Date, the Company has not received any written (or to the Company's Knowledge, oral) notice alleging any violation of Privacy and Security Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Since the Lookback Date, the Company has not received any written (or to the Company's Knowledge, oral) notice from any Governmental Authority that it is under investigation by any Governmental Authority for a violation of any Privacy and Security Law, which matter remains unresolved.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The computer systems, including the software, firmware, hardware, networks, interfaces, platforms and related systems owned, leased or licensed by the Company in the conduct of Business (the "***Company Systems***") are sufficient for the conduct of the business as conducted on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)To the Company's Knowledge, since the Lookback Date, there has been no (i) failure, breakdown, continued substandard performance or other adverse events affecting any Company Systems that have caused a material disruption or interruption in or to the use of such Company Systems; or (ii) privacy or data security breach (including any cyber-attack) of any Company Systems, or unauthorized acquisition, exfiltration, manipulation, erasure, use or disclosure of any Personal Information, owned, used, stored, received, or controlled by or on behalf of the Company (or, to the Company's Knowledge, any service provider (in the course of providing services for or on behalf of the Company)) that would constitute a breach for which notification to individuals and/or regulatory authorities is required under any applicable Privacy and Security Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.24<u>Events Subsequent</u>. Except as set forth on <u>Schedule 3.24</u> and matters related to the transactions contemplated pursuant to this Agreement, since the Latest Balance Sheet Date: (a) the Company has conducted the Business only in the Ordinary Course of Business, (b) there has not been any change in or development with respect to the business, operations, condition (financial or otherwise), results of operations, assets or liabilities of the Company taken as a whole, except for changes and developments which have not had, and would not, individually or in the aggregate, reasonably be expected to have, a Material Adverse Effect, (c) the Company has not amended its Governing Documents or (d) there has been no merger or consolidation or the Company with any other Person or any acquisition by the Company of any equity interests or material assets or business of any other Person or any agreement with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.25<u>No Other Representations and Warranties</u>. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THIS <u>ARTICLE 3</u>, NEITHER THE COMPANY NOR ANY OTHER PERSON ACTING ON BEHALF OF THE COMPANY MAKES ANY REPRESENTATION OR WARRANTY OR STATEMENTS (INCLUDING BY OMISSION) OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, TO THE PURCHASER OR ANY OF ITS NON-RECOURSE PARTIES, INCLUDING ANY RELATING TO THE FUTURE OR HISTORICAL FINANCIAL CONDITION, RESULTS OF OPERATIONS, PROSPECTS, THE ASSETS, OR THE LIABILITIES OF THE COMPANY OR THE QUALITY, QUANTITY OR CONDITION OF THE ASSETS OR THE ACCURACY OR COMPLETENESS OF ANY INFORMATION PROVIDED TO (OR OTHERWISE ACQUIRED BY) PURCHASER OR ANY OF ITS NON-RECOURSE PARTIES.

4.**REPRESENTATIONS AND WARRANTIES OF THE PURCHASER** 

The Purchaser represents and warrants to the Company and the Seller the following matters in this <u>Article 4</u>. These representations and warranties are made as of the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1<u>Organization</u>. The Purchaser is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Texas, and is qualified or registered to do business in each jurisdiction in which the nature of its business or operations would require such qualification or registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2<u>Necessary Authority</u>. The Purchaser has the requisite power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party, to perform its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. This Agreement has been duly authorized, executed and delivered by the Purchaser and assuming the due authorization, execution and delivery by each other party hereto, constitutes the legal, valid and binding obligations of the Purchaser enforceable against the Purchaser in accordance with its terms and conditions (subject to the Enforceability Exceptions). Upon execution and delivery at the Closing by the Purchaser, each other Transaction Document to which the Purchaser is, or is specified to be, a party, will be duly and validly executed by the Purchaser, and delivered to the other party(ies) thereto on the Closing Date, and will constitute (assuming, in each case, the due authorization, execution and delivery by each other party thereto) the Purchaser's legal, valid and binding obligation, enforceable against it in accordance with its terms (subject to the Enforceability Exceptions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3<u>No Breach</u>. The execution, delivery and performance by the Purchaser of this Agreement and the other Transaction Documents to which the Purchaser is a party, and the consummation of the

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transactions contemplated hereby or thereby by the Purchaser do not and will not (a) violate or conflict with the Governing Documents of the Purchaser, (b) require the Purchaser to obtain the consent or approvals of, or make any filing with, any person or public authority, except for consents and approval already obtained and notices or filings already made, (c) violate any Law to which the Purchaser is subject, or (d) constitute or result in the breach of any provision of, or constitute a default under, any contract to which the Purchaser is a party or by which its assets are bound that would, individually or in the aggregate, reasonably be expected to have a Purchaser Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4<u>Brokers</u>. No broker, finder or investment banker or other person is directly or indirectly entitled to any brokerage, finder's or other fee or commission or any similar charge in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5<u>Litigation; Compliance with Law</u>. There is no Action or Order of any nature, pending, rendered or, to the Purchaser's Knowledge, threatened, against the Purchaser that reasonably would, individually or in the aggregate, reasonably be expected to have a Purchaser Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6<u>Financing</u>

. The Purchaser has sufficient cash on hand, which together with borrowings available under revolving credit facilities is sufficient for the Purchaser, when required, to (a) pay an amount in cash equal to the Closing Purchase Price, (b) pay any and all fees and expenses required to be paid by the Purchaser in connection with the transactions contemplated by this Agreement and (c) satisfy all other payment obligations of the Purchaser contemplated hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7<u>Investment Intent</u> The Purchaser is purchasing the Acquired Interests solely for its own account, for investment purposes only, and not with a view to, or any present intention of, reselling or otherwise distributing the Acquired Interests, or dividing its participation herein with others. The Purchaser is not relying on the Seller, the Company or any of their respective Affiliates with respect to the corporate tax, legal and economic considerations involved in its investment in the Company. The Purchaser acknowledges and agrees that it (i) has had reasonable access to the books and records of the Company, and (ii) has conducted its own independent investigation of the Company, the Business and the transactions contemplated hereby, and has not relied on any representation, warranty or other statement by the Seller, the Company or any of their respective Affiliates or Representatives, other than the representations and warranties expressly and specifically contained in <u>Article 2</u> and <u>Article 3</u> and that all other representations and warranties are specifically disclaimed. The Purchaser understands and acknowledges that: (a) the Acquired Interests has not been registered under the Securities Act or any state or foreign securities Laws, in reliance upon specific exemptions thereunder for transactions not involving any public offering; (b) the Acquired Interests is not traded or tradable on any securities exchange or over the counter; and (c) the Acquired Interests may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge, hypothecation or other disposition is pursuant to the terms of an effective registration statement under the Securities Act and are registered under any applicable state or foreign securities Laws or pursuant to an exemption from registration under the Securities Act and any applicable state or foreign securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8<u>Solvency</u>. Immediately after giving effect to the transactions contemplated hereby, assuming the accuracy of the representations and warranties in <u>Article 2</u> and <u>Article 3</u> and the Seller's and Company's compliance with the covenants to be performed at or prior to the Closing, the Purchaser and the Company (a) will be solvent; (b) will have adequate capital with which to engage in its business; and (c) will not have incurred and does not plan to incur debts beyond its ability to pay as they become absolute and matured. The Purchaser and the Company is not party to, and neither party contemplates or plans to enter into, any other transaction to transfer assets that would result in the Purchaser not being solvent or with the intent to hinder, delay or defraud present or future creditors of the Purchaser or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9<u>Purchaser's Acknowledgment</u>. The Purchaser acknowledges that it has conducted to its satisfaction an independent investigation and verification of the financial condition, results of operations, assets, liabilities, properties and projected operations of the Company, and, in making its determination to proceed with the transactions contemplated by this Agreement, the Purchaser has relied solely on the results of its own independent investigation and verification and the representations and warranties of the Company expressly and specifically set forth in <u>Article 2</u> and <u>Article 3</u> as qualified by the Disclosure Schedules and any supplemented thereto. The Purchaser further acknowledges that it has not relied upon

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any information furnished by the Seller or the Company or any of their respective present and former Affiliates or Representatives concerning the Seller, the Company, the Business, the Acquired Interests, the Assets or the transactions set forth herein, other than the information expressly set forth in <u>Article 2</u> and <u>Article 3</u> as qualified by the Disclosure Schedules and any supplements thereto. The Purchaser also acknowledges that, except as expressly set forth in <u>Article 2</u> and <u>Article 3</u> as qualified by the Disclosure Schedules (as such Disclosure Schedules may be supplemented), none of the Company, the Seller, nor any of their Non-Recourse Parties or their respective Representatives makes or will be deemed to have made any representations or warranties, express or implied, regarding the Seller, the Company, the Business, the Acquired Interests, the Assets or the transactions set forth herein. The Purchaser acknowledges that there are uncertainties inherent in attempting to make projections, budgets, forecasts or other forward-looking financial information concerning the future revenue, income, profit or other financial results of the Company and actual results of operations may differ materially from any such projections, budgets, forecasts or other forward-looking financial information, that the Purchaser and its Affiliates are familiar with such uncertainties, that the Purchaser and its Affiliates are taking full responsibility for making their own evaluation of the adequacy and accuracy of any such projections, budgets, forecasts or other forward-looking financial information provided to it in connection with the transactions contemplated by this Agreement (including the reasonableness of the assumptions underlying such projections, budgets, forecasts or other forward-looking financial information) and that no representations or warranties of any kind are being made with respect thereto.

5.**COVENANTS OF THE PARTIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1<u>Confidentiality</u>. Effective upon the Closing Date, the Agreement For Use and Non-Disclosure of Proprietary Information, dated February 26, 2024, by and between Associa and DOUG shall terminate. For a period of five (5) years after the Closing, subject to <u>Section 12</u> (Public Statements), each party shall, and shall cause each of its Affiliates and Representatives to (a) keep confidential all information and materials regarding any other party and (b) not disclose the terms and provisions of this Agreement without the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2<u>Post-Closing Employee Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)For a period of twelve (12) months after the Closing Date, the Purchaser shall provide or cause to be provided to each Employee employed by the Company prior to the Closing and that continues such employment following the Closing (each, a "***Continuing Employee***") (i) on an individual basis, a base salary or wage rate (as applicable) and target annual (or other periodic) cash incentive compensation opportunities, that are, in each case, no less favorable than the base salary or wage rate (as applicable) and target annual (or other periodic) cash incentive compensation opportunities provided to such Continuing Employee immediately prior to the Closing Date and (ii) on a group basis, employee benefits (excluding any equity-based benefits) that are substantially comparable to those provided to the Continuing Employees immediately prior to the Closing Date. The Purchaser and the Company shall be solely responsible for satisfying the continuation coverage requirements of Code Section 4980B for all individuals who are "M&A qualified beneficiaries" as such term is defined in Treasury Regulation Section 54.4980B-9. For the period from November 1, 2025 through December 31, 2025 (the "***Transition Period***"), the Seller shall continue to offer the same health care coverage to all Continuing Employees (and their qualifying dependents) provided to such Continuing Employees immediately prior to the Closing Date; <u>provided</u>, <u>however</u>, the Purchaser shall pay to Seller each month during the Transition Period the amounts set forth on <u>Schedule 5.2(a)</u> for each covered life (collectively, the "***Healthcare Costs***"). The Healthcare Costs plus the employee portion of premiums for such Continuing Employees and their qualifying dependents for a given month shall be paid to Seller no later than the first day of each month during the Transition Period. The Purchaser shall offer all Continuing Employees (and their dependents) coverage under a group health plan sponsored by the Purchaser (or one of its Affiliates), with such coverage to be effective no later than January 1, 2026, and such coverage shall be substantially comparable to the group health benefits provided to such Continuing Employees immediately prior to the Closing Date. From and after the Closing, the Purchaser shall indemnify Seller, its Affiliates, and its and their respective officers, directors, employees, agents, representatives, successors and permitted assigns (collectively, the "***Seller Indemnified Persons***") in respect of any Losses which any Seller Indemnified Person may suffer as a result of, in connection with or relating to a breach by the Purchaser of its obligations under this <u>Section 5.2(a)</u>. This <u>Section 5.2(a)</u> shall not (i) constitute or be deemed to be an amendment to any Benefit Plan or any other compensation or benefit plan, program or arrangement of the Company or (ii) subject to compliance with the other provisions of this <u>Section 5.2(a)</u>,

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limit the Purchaser's or the Company's rights to terminate any Continuing Employee for any reason at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Effective as of the Closing Date, the Purchaser shall, or shall cause its applicable Affiliates to, recognize all service of the Employees with the Company and all of its current or former Affiliates that are recognized under any Benefit Plan or Contract applicable to service-related or measured entitlements under applicable Law (collectively, the "***Service Credits***"). All Service Credits shall be taken into account for purposes of determining, as applicable, the eligibility for participation, vesting and level of benefits (excluding credit for benefit accrual purposes under any benefit plan of the Purchaser or any of its Affiliates that is a defined benefit pension plan) of any Employee under all compensation and employee benefit plans offered by the Purchaser or an Affiliate of the Purchaser to the Employees, including vacation plans or arrangements, 401(k) or other retirement plans and any severance, welfare plans, or service-related or measured entitlements under applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Purchaser shall: (i) waive any limitation on coverage of Employees and their eligible dependents due to pre-existing, actively at work limitations, evidence of insurability and waiting periods conditions under all applicable benefit plans of the Purchaser or any of its Affiliates, including the Company, and (ii) credit Employees and their eligible dependents with all payments credited against out-of-pocket maximums, deductibles, co-insurance, co-pays, out-of-pocket limits and other applicable limits, payments and co-payments paid by such person, in each case, under the benefit plans of the Company prior to the Closing Date during the year in which the Closing occurs (or, if later, prior to the first date of participation during the year in which such participation first commences) for the purpose of determining the extent to which any such person has satisfied his or her out-of-pocket maximums, deductibles, co-insurance, co-pays, out-of-pocket limits and other applicable limits payments and co-payments under any benefit plan of the Purchaser or an Affiliate of the Purchaser for such year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Nothing in this <u>Section 5.2</u> shall create any third-party beneficiary right in any Person (other than the parties to this Agreement), including any Employee or former employee of the Company or any dependent or beneficiary thereof, or any right to continued employment or service with the Purchaser, the Company or any of their respective Affiliates. Nothing in this <u>Section 5.2</u> shall (i) constitute an establishment, amendment or modification of any Benefit Plan or any other benefits plan, program, policy, agreement or arrangement covering any Employee or former employee of the Company, or (ii) alter or limit the Purchaser's, the Company's or their respective Affiliates' ability to amend, modify or terminate any Benefit Plan or other benefits plan, program, policy, agreement or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3<u>Director & Officer Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)For a period of six (6) years after the Closing, the Company shall not, and Purchaser shall cause the Company to not, amend, repeal or otherwise modify any provision in the Company's organizational documents or any agreement, in each case to the extent adversely impacting any right to exculpation or indemnification of any Person who was an officer, manager and/or director of the Company with respect to the periods at or prior to the Closing Date (unless required by Law), it being the intent of the parties that the officers, managers and directors of the Company will continue to be entitled to such exculpation and indemnification to the fullest extent permitted by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In addition to the other rights provided for in this <u>Section 5.3(b)</u> and not in limitation thereof, from and after the Closing, the Purchaser shall, and shall cause the Company (in such capacity, a "***D&O Indemnifying Party***"), for a period of six (6) years after the Closing Date, (i) to the fullest extent permitted by applicable law, to indemnify and hold harmless (and release from any liability to the Purchaser), current and former officers, managers and directors of the Company (each person, a "***D&O Indemnitees***") against all D&O Expenses or Losses (collectively, "***D&O Costs***") in respect of any threatened, pending or completed Action, whether criminal, civil, administrative or investigative, based on or arising from or relating to the fact that such Person is or was a director, manager or officer of the Company arising out of acts or omissions occurring at or prior to the Closing (including in respect of acts or omissions in connection with this Agreement and the transactions contemplated thereby) (a "***D&O Action***") and (ii) to advance to such D&O Indemnitees all D&O Expenses incurred in connection with any D&O Action (including in circumstances where the D&O Indemnifying Party has assumed the defense of such claim) within ten (10) Business Days after receipt of reasonably detailed statements therefor; <u>provided</u>, <u>however</u>, that (A) the Person to whom D&O Expenses are to be advanced pursuant to

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the preceding clause (ii) provides an undertaking to repay such advances if it is ultimately determined that such Person is not entitled to indemnification and (B) no such indemnification or advancement shall be payable in respect of any liabilities arising out of the gross negligence, willful misconduct, fraud or bad faith of any of the D&O Indemnitees. Any D&O Actions will continue until such D&O Action is disposed of or all orders from Governmental Authorities in connection with such D&O Action are fully satisfied. For the purposes of this <u>Section 5.3(b)</u>, "***D&O Expenses***" will include reasonable out-of-pocket attorneys' and other fees, costs, charges and expenses paid or incurred in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, to be a witness in or participate in any D&O Action, but will exclude losses, judgments and amounts paid in settlement (which items are included in the definition of D&O Costs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Purchaser, on behalf of the Company, hereby acknowledges that the D&O Indemnitees may have certain rights to indemnification, advancement of expenses or insurance provided by other Persons. The Purchaser hereby agrees that (i) the Company is the indemnitor of first resort (i.e., its obligations to the D&O Indemnitees are primary and any obligation of such other Persons to advance expenses or to provide indemnification for the same expenses or liabilities incurred by any such D&O Indemnitees are secondary), (ii) the Company shall be required to advance the full amount of expenses incurred by any such D&O Indemnitees and shall be liable for the full indemnifiable amounts, without regard to any rights any such D&O Indemnitees may have against any such other Person and (iii) the Purchaser, on behalf of the Company, irrevocably waives, relinquishes and releases such other Persons from any and all claims against any such other Persons for contribution, subrogation or any other recovery of any kind in respect thereof. The Purchaser, on behalf of the Company, further agrees that no advancement or payment by any of such other Persons on behalf of any such D&O Indemnitees with respect to any claim for which such D&O Indemnitee has sought indemnification from the Company shall affect the foregoing and such other Persons shall have a right of contribution or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such D&O Indemnitees against the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The provisions of this <u>Section 5.3</u> are intended to be for the benefit of, and shall be enforceable by, each D&O Indemnitee and each such Person's heirs, legatees, representatives, successors and assigns, it being expressly agreed that such Persons shall be third party beneficiaries of this <u>Section 5.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4<u>R&W Insurance</u>. The parties acknowledge that, as of the Closing Date, the Purchaser has bound the R&W Insurance Policy, attached hereto as <u>Exhibit A</u>, and that a true and correct copy of such R&W Insurance Policy has been provided to the Company and the Seller. On or prior to the Closing, the Purchaser shall pay or cause to be paid the R&W Insurance Expenses. The Purchaser covenants and agrees to not cancel, redeem or take any action that would adversely affect the terms and conditions of the R&W Insurance Policy. The Purchaser and its Affiliates will not amend, waive or otherwise modify the R&W Insurance Policy in any manner that would adversely affect the Seller without the Seller's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5<u>Seller Names and Trademark License Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)As of the Closing Date, the parties shall enter into a trademark license agreement, in substantially the form attached as <u>Exhibit B</u>, for the Company's use of the Seller Names, or as otherwise mutually agreed to by the parties in writing ("***Trademark License Agreement***"). As used herein, "***Seller Names***" shall include the trademark and name Douglas Elliman, including all logos, used by the Company as of the Closing Date and identified in a schedule to the Trademark License Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Purchaser expressly acknowledges and confirms that (i) the Seller shall exclusively own all right, title and interest in and to all the Seller Names and Seller retains the right to use all Seller Names, subject only to the restrictions set forth in the Trademark License Agreement and (ii) the Purchaser and its Affiliates (including the Company) shall not receive, any right, title or interest in or to the Seller Names, except the limited right to use Seller Names subject to the terms of the Trademark License Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6<u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Purchaser acknowledges that all insurance coverage for the Company under policies of the Seller and its Affiliates shall terminate as of the Closing. The Purchaser shall procure, pay

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for and maintain insurance coverage for the Company effective from the Closing. Such coverage shall be commensurate to the insurance coverage existing for the Business until the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding <u>Section 5.6(a)</u>, with respects to acts, omissions, events or circumstances relating to the Company or the Business that occurred or existed prior to the Closing that are covered by occurrence-based insurance policies under which the Company is a named insured on or prior to Closing (such policies, the "***Seller Occurrence-Based Insurance Policies***"), the Company may make claims for a period of one (1) year following the Closing under such occurrence-based policies subject to the terms and conditions of such occurrence-based policies and this Agreement, to the extent such coverage and limits are available; <u>provided</u>, that the Company shall: (i) notify the Seller in writing of all such covered claims, setting forth (A) a description of, and an estimated amount payable (if and to the extent known at the time of such assertion) pursuant to, such claim and (B) the applicable Seller Occurrence-Based Insurance Policy which the Company is asserting should provide coverage for such claim; (ii) exclusively bear, and neither the Seller nor any of its Affiliates shall have any obligation to repay or reimburse the Purchaser or the Company for, the amount of any deductibles or self-insured retentions associated with claims under the Seller Occurrence-Based Insurance Policies and shall be liable for all uninsured, uncovered, unavailable or uncollectible amounts of such claims; (iii) reimburse the Seller and its Affiliates for any retrospective premium adjustments or any other out-of-pocket costs or expenses incurred by Seller or any of its Affiliates in connection with this <u>Section 5.6(b)</u>; (iv) be solely responsible at its expense for notifying any and all insurance companies of such claims and complying with all policy terms and conditions for pursuit and collection of such claims and shall not, without the prior written consent of the Seller, amend, modify, terminate or waive any rights of Seller or other insureds under any such insurance policies and programs; and (v) not assign any Seller Occurrence-Based Insurance Policies or any rights or claims under the Seller Occurrence-Based Insurance Policies. With respect to any permissible claims by the Company pursuant to this <u>Section 5.6(b)</u> or requests for benefits asserted by the Company under the Seller Occurrence-Based Insurance Policies, the Seller shall have the right but not the duty to monitor and/or associate with such claims. The Purchaser and the Seller agree that any recoveries under the Seller Occurrence-Based Insurance Policies pursuant to this <u>Section 5.6(b)</u> shall inure first to the Seller to reimburse any and all costs owed thereto pursuant to this <u>Section 5.6(b)</u> that have not already been reimbursed, and that the Purchaser and its Affiliates shall first seek to recover from other insurance policies or coverages prior to seeking coverage pursuant to any Seller Occurrence-Based Insurance Policies. For the avoidance of doubt, nothing contained in this <u>Section 5.6(b)</u> will require Seller or any of its Affiliates to commence any Action against any insurance carrier under Seller Occurrence-Based Insurance Policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)For the avoidance of doubt, from and after the Closing, neither the Purchaser nor the Company shall have any right to make claims or seek coverage under any of the claims-made insurance policies provided to the Company by third parties or by the Seller or any of its Affiliates, and to the extent the Purchaser, the Company, their employees or third parties make claims under such claims-made policies after Closing, the Purchaser agrees to indemnify the Seller and its Affiliates for the full amount of all fees, costs and expenses incurred by the Seller or any of its Affiliates as a result of such claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Purchaser shall cause the Company to cooperate with the Seller and its Affiliates and share such information as is reasonably necessary in the view of the Seller and/or its Affiliates in order to permit the Seller and its Affiliates to manage and conduct their insurance matters as Seller or such Affiliate(s) deem appropriate, including keeping the Seller reasonably apprised of any material correspondence with the applicable insurer promptly following receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7<u>Strategic Alliance Opportunity</u>. Following the Closing, the parties shall further explore a separate strategic alliance arrangement, pursuant to which Associa would provide DOUG's brokerage division with exclusive access to Associa's established network of communities across the United States, Canada, and Mexico, with the goal of creating mutual value and expanded market reach. In consideration for such exclusive access, Associa would receive from DOUG, to the extent legally permitted, a finder's fee in an amount equal to fifteen percent (15%) of the overall brokerage service commissions received by DOUG and its Affiliates on any brokerage transaction consummated through Associa's referral network. Further terms and conditions relating to this strategic alliance will be mutually agreed upon by DOUG, or

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an Affiliate, on the one hand, and Associa on the other hand, in a separate definitive written agreement to be mutually agreed upon by Associa and DOUG after the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8<u>Closing Date Actions</u>. The Purchaser covenants that it will not and will not cause or permit the Company to: (a) take any action on the Closing Date other than in the Ordinary Course of Business prior to the Effective Time, (b) on the Closing Date, distribute any Assets, make dividends, incur Indebtedness that would affect Net Working Capital on the Closing Date or make cash payments to, incur liabilities from or enter into transactions with, the Purchaser or an Affiliate of the Purchaser or with any other Person that is not in the Ordinary Course of Business prior to the Closing; (c) take or fail to take any action that would result in a reduction of, or a decrease in, or otherwise affect Actual Net Working Capital on the Closing Date except for payments by the Company in the Ordinary Course of Business prior to the Effective Time or as expressly contemplated by this Agreement; (d) take any action that is reasonably likely to result in or increase a Tax liability to the Seller, or (e) amend any Tax Return of the Company filed prior to the Closing Date or prepared pursuant to <u>Section 10.2</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9<u>Restrictive Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Non-Competition</u>. The Seller covenants and agrees that, during the period beginning on the Closing Date and ending on the fifth (5th) anniversary of the Closing Date (the "***Restricted Period***"), the Seller shall not, directly or indirectly, own, manage, operate or control any Person who is engaged in the Business in the Territory. Notwithstanding the foregoing, nothing contained in this <u>Section 5.9(a)</u> shall prohibit the Seller from the passive ownership of less than two percent (2%) of any class of stock listed on a national securities exchange or traded in the over-the-counter market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Non-Solicitation of Business Relationships</u>. The Seller hereby covenants and agrees that, during the Restricted Period, the Seller will not, directly or indirectly, intentionally encourage, solicit or intentionally induce any Person that is a material customer, as of the Closing Date, of the property management services of (i) the Business or (ii) the Purchaser or any of its controlled Affiliates, in each case, to purchase property management services from any Person other than the Business or the Purchaser or any of its controlled Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Non-Solicitation of Employees</u>. The Seller hereby covenants and agrees that, during the Restricted Period, the Seller will not, directly or indirectly, solicit, induce, employ or engage any individual that is an employee of (i) the Company as of the Closing Date, (ii) the Company after the Closing Date and during the Restricted Period (but only to the extent the Seller has actual knowledge that such individual is an employee of the Company, unless such individual is otherwise covered in the preceding clause (i)), or (iii) the Purchaser or any of its controlled Affiliates and with whom the Seller first had contact in connection with the transactions contemplated by this Agreement (any employee described in clauses (i), (ii), or (iii), a "***Restricted Employee***"); <u>provided</u>, that this <u>Section 5.9(c)</u> shall not prevent (A) the Seller from engaging in general solicitations or advertisements for employment (which shall include the use of a third-party search firm) not targeted at any Restricted Employees and hiring Restricted Employees that respond to such solicitations or advertisements or (B) the commencement of any employment discussions with, or hiring or engaging of, any Restricted Employee who (1) ceased to be employed or engaged by the Business, the Purchaser or any of its controlled Affiliates more than six (6) months prior to the date of the commencement of employment discussions or hiring or (2) initiates employment discussions with the Seller, in each case, without any encouragement or solicitation by the Seller in breach of this <u>Section 5.9(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Change of Control of DOUG</u>. For the avoidance of doubt, the Seller agrees that in the event of any change of control of DOUG, the restrictive covenants set forth in this <u>Section 5.9</u> shall continue to bind the Seller in accordance with their terms, but the parties hereby agree that such restrictive covenants shall not apply to restrict the operations of any entity acquiring DOUG, DOUG or any of their respective Subsidiaries or Affiliates (other than the Seller).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10<u>New York Lease</u>. The Seller agrees that it shall cause the Company to not terminate that certain Sublease, dated as of May 24, 2023, by and betwen [\*\*\*], as sublessor (the "***Sublessor***"), and the Company, as subtenant, with respect to the premises located at 909 Third Avenue, New York, New York, 10002 prior to the Closing Date and shall reasonably cooperate with the Purchaser and use its commercially reasonable efforts to make any necessary third-party notices and obtain any necessary third-party consents and approvals required for the Company to continue such sublease following the Closing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11<u>Retention of Books and Records</u>. After the Closing Date, the Purchaser and the Company shall, until the seventh (7<sup>th</sup>) anniversary of the Closing Date, retain all books, records, files, ledgers, reports and other documents pertaining to the Company in existence on the Closing Date and make the same available for inspection and copying by the Seller and its Representatives (at the Seller's expense) during normal business hours of the Company. No such books, records, files, ledgers, reports or documents shall be destroyed after the seventh anniversary of the Closing Date by the Purchaser or the Company, without first advising the Seller in writing and giving the Seller a reasonable opportunity to obtain possession thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12<u>Shared Contracts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The parties acknowledge that the Contracts set forth on <u>Schedule 5.12</u> (the "***Shared Contracts***") relate in part to both the operations of the Business and the operations of the businesses of Seller and its other Affiliates. From the date hereof until the earlier of (i) the date that is twelve (12) months following the Closing Date, (ii) the Company entering into direct contractual arrangements with respect to the Business with the applicable counterparties to the Shared Contracts which replace the Shared Contracts, and (iii) the expiration of or termination by the applicable counterparties of the Shared Contracts in accordance with their terms, the parties shall cooperate with each other and use their respective commercially reasonable efforts to cause each of the Shared Contracts to be apportioned (including by obtaining consent of the counterparties to enter into new Contracts or amendments, or splitting or assigning in relevant part the Shared Contracts (each such required consent, the "***Shared Contract Consent***")) between Seller and its Affiliates, on the one hand, and the Company, on the other hand such that the Company (A) shall receive substantially the same rights and benefits under the Shared Contracts as the Company would have been entitled to receive had such Shared Contract been assigned to the Company as of the Closing Date, and (B) bear substantially the same obligations, costs and liabilities, including the obligation to provide services to or for the benefit of the counterparty, as the Company would be subject to had the portion of such Shared Contract related to the operation or conduct of the Business been assigned to the Company as of the Closing Date. In furtherance (and not in limitation) of the foregoing, Purchaser shall, or shall cause its applicable Affiliates to, promptly pay, perform and discharge when due any liability (including any liability for Taxes) arising under such Shared Contract, whether arising prior to, on or after the Closing, to the extent related to the operation or conduct of the Business, and Purchaser and its Affiliates shall indemnify and hold harmless the Seller and its Affiliates and their respective managers, officers, directors, employees, successors and assigns from and against all obligations, liabilities and costs with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding anything to the contrary in this <u>Section 5.12</u>: (i) Seller shall not be obliged to (A) pay any amounts or provide other consideration in connection with obtaining or seeking to obtain any Shared Contract Consent or (B) take any action that would, in the good faith judgement of Seller, constitute a breach or other contravention of the rights of any Person, be ineffective under, or contravene, any applicable Law or adversely affect the contractual rights of Seller or any of its Affiliates; (ii) Purchaser shall bear all the costs and expenses of obtaining or seeking to obtain any Shared Contract Consents and agrees to accept any commercially reasonable modifications or changes to any Shared Contract, to the extent necessary to obtain any Shared Contract Consent; and (iii) Seller shall not have any liability whatsoever for failure to obtain any Shared Contract Consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If any Shared Contract Consent is not obtained by the earlier of (i) the date that is twelve (12) months following the Closing Date and (ii) the expiration of or termination by the applicable counterparty of the Shared Contract in accordance with its terms, Seller will be deemed to have fulfilled its obligation under this Agreement and under no circumstances shall Seller or any of its Affiliates be subject to any liability on account of failure to obtain any Shared Contract Consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13<u>Replacement of Seller Guaranty</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Purchaser recognizes that the Seller has provided credit support to the Company pursuant to that certain Guaranty, dated as of May 18, 2023, made by the Seller to and in favor of the Sublessor (the "***Seller Guaranty***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Seller, the Purchaser and the Company shall cooperate and shall use their respective commercially reasonable efforts to, as promptly as practicable following the Closing, cause the Purchaser or one or more of its Affiliates to have surety bonds, performance bonds, guarantees, letters of credit or other credit or credit support arrangements or similar instruments (and any necessary collateral,

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indemnity or other agreements associated therewith) issued on behalf of the Purchaser or one of its Affiliates in replacement of the Seller Guaranty; <u>provided</u>, that neither the Seller nor any of its Affiliates shall have any obligations to make payments or incur any costs or expenses, grant any concession or incur any other liability in connection with such cooperation pursuant to this <u>Section 5.13(b)</u>, except to the extent Purchaser agrees to promptly reimburse the Seller or any of its respective Affiliates. Without limiting the foregoing, neither Purchaser nor the Company shall extend or renew the Sublease unless, prior to or concurrently with such extension or renewal, Purchaser or one of its Affiliates is substituted in all respects for the Seller, and the Seller is fully and unconditionally released from the Seller Guaranty. In no event shall the Seller or any of its Affiliates be obligated to pay any money to any Person to effect the replacement of the Seller Guaranty described in this <u>Section 5.13(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)From the Closing until such time as the Seller Guaranty has been terminated and the Seller has been fully and unconditionally released from the Seller Guaranty, the Purchaser shall indemnify the Seller and its Affiliates for any Losses in connection with the Seller Guaranty, to the extent arising after the Closing Date and to the extent not otherwise caused by the Seller or any of its Affiliates.

6.**[INTENTIONALLY OMITTED]**

7.**CLOSING DELIVERABLES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1<u>Closing Documents to be Delivered by the Company and the Seller</u>. At the Closing, the Company and/or the Seller, as appropriate, will deliver to the Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)a membership interest assignment agreement with respect to the Acquired Interests in substantially the form attached hereto as <u>Exhibit C</u> (the "***Assignment Agreement***"), duly executed by the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a secretary's certificate of the Seller in substantially the form attached hereto as <u>Exhibit D</u>, dated as of the Closing Date and signed by an officer thereof, certifying and attaching (i) a copy of the resolutions of the manager of the Seller authorizing the execution, delivery and performance of this Agreement and the transactions contemplated hereby, and (ii) copies of the Seller's and the Company's Governing Documents, and certifying as to the incumbency of the officers of the Seller and the Company executing the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)[Intentionally omitted];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the third-party consents set forth on <u>Schedule 7.1(d)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)all payoff letters and evidence of the release of all security interests with respect to the Indebtedness of the Company of the types described in clauses (i), (ii) and (iii) of the definition of "Indebtedness", if any, in form and substance reasonably satisfactory to the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)resignations effective immediately following the Closing of the officers and directors of the Company set forth on <u>Schedule 7.1(f)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)a certificate from the State of Delaware, dated no earlier than ten (10) days prior to the Closing Date, as to the good standing (or similar status) of the Company in such jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)the Trademark License Agreement, duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)a brokerage exclusivity agreement in substantially the form attached hereto as <u>Exhibit F</u> (the "***Brokerage Exclusivity Agreement***"), duly executed by DOUG; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)a properly completed and duly executed IRS Form W-9 of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2<u>Closing Documents to be Delivered and Actions to be Taken by the Purchaser</u>. At the Closing, the Purchaser will deliver:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the payments to be delivered to the applicable Persons in accordance with <u>Section 1.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)to the Seller, a duly executed counterpart to the Assignment Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)to the Seller, a secretary's certificate of the Purchaser in substantially the form attached hereto as <u>Exhibit G</u> dated as of the Closing Date and signed by an officer thereof certifying and attaching: (i) copies of resolutions of the Purchaser's board of directors/managers (or other governing body) authorizing the execution, delivery and performance of this Agreement and the transactions contemplated hereby, and (ii) copies of the Governing Documents of the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)[Intentionally Omitted];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)to the Seller, a duly executed counterpart to the Trademark License Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)to the Seller, a duly executed counterpart to the Brokerage Exclusivity Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)to the Seller, a copy of the fully bound R&W Insurance Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3<u>Other Closing Documents</u>. The parties hereto also will execute such other documents and instruments as any of the other parties may reasonably request that are necessary for the implementation and consummation of this Agreement and the transactions contemplated hereby.

8.**[INTENTIONALLY OMITTED]** 

9.**NO SURVIVAL; INDEMNIFICATION; SOLE RECOURSE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1<u>Non-Survival of Representations and Warranties; Limited Survival of Covenants</u>. The representations, warranties and covenants of the parties contained in this Agreement and in any Transaction Document shall terminate upon consummation of the Closing (it being understood and agreed that none of the Seller, the Company, the Purchaser or any of their respective Representatives shall have any liability for, or recourse under, this Agreement following the consummation of the Closing for any breach of or inaccuracy in any such representation or warranty or any breach or nonfulfillment of any covenant that by its term is required to be performed or fulfilled at or prior to the consummation of the Closing), except that any covenant that by its term is required to be performed after the consummation of the Closing shall survive the consummation of the Closing until fully performed in accordance with its terms. Except as set forth in the immediately following sentence, the Purchaser further acknowledges that its only recourse in the event of any breach or inaccuracy of any representation or warranty under this Agreement and in any Transaction Document shall be pursuant to the R&W Insurance Policy. Nothing in this Agreement shall limit the liability of any party for Fraud committed by such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2<u>Seller Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Seller Indemnification</u>. The Seller agrees to indemnify, defend and hold harmless the Purchaser, the Company and their respective Representatives (collectively, the "***Purchaser Indemnified Persons***") in respect of each of the items set forth on <u>Schedule 9.2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Indemnification Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Third Party Claims</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)If any claim or demand for which the Seller would be liable to a Purchaser Indemnified Person under <u>Section 9.2(a)</u> is asserted against or sought to be collected from a Purchaser Indemnified Party by a third-Person (a "***Third Party Claim***"), then such Purchaser Indemnified Person will promptly notify in writing the Seller of such Third Party Claim, specifying the nature of such Third Party Claim and the amount or the estimated amount thereof to the extent then feasible (which estimate will not be conclusive of the final amount of such Third Party Claim) and including a copy of the

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Third Party Claim and any written materials provided with the Third Party Claim (the "***Claim Notice***"); *provided, however*, that the failure to so notify shall not relieve the Seller from liability or any other obligations that it may have under this Agreement with respect to such claim, except and then solely to the extent that such failure to notify the Seller results in material prejudice to Seller. The Seller will then have thirty (30) calendar days from the date on that the Claim Notice is given (the "***Notice Period***") to notify the Purchaser Indemnified Party (i) whether or not the Seller in good faith disputes the liability to the Seller hereunder with respect to such Third Party Claim, and (ii) notwithstanding such dispute, whether or not the Seller desires, at its sole cost and expense, to assume the defense against such Third Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)If the Seller notifies the Purchaser Indemnified Person within the Notice Period that it desires to assume the defense of such Third Party Claim, then, except as hereinafter provided<u>,</u> the Seller will have the right to defend the Purchaser Indemnified Party by appropriate proceedings, which will be promptly settled or prosecuted to a final conclusion in such a manner as to avoid any risk that the Purchaser Indemnified Party will become subject to liability for any other matters; <u>provided, however</u>, that the Seller will not, without the prior written consent of the Purchaser Indemnified Person, consent to the entry of any judgment against the Purchaser Indemnified Person or enter into any settlement or compromise that does not include, as an unconditional term thereof, a release by the claimant or plaintiff of the Purchaser Indemnified Person (such release to be in form and substance reasonably satisfactory to the Purchaser Indemnified Party) from all liability in respect of such Third Party Claim. The Seller will be entitled to select legal counsel for the defense of such Third Party Claim reasonably satisfactory to the Purchaser Indemnified Person. If the Purchaser Indemnified Person desires to participate in, but not control, any such defense or settlement of such Third Party Claim, it may do so at its sole cost and expense, and in such event, the Purchaser Indemnified Person and its counsel will be provided access to all such files, records, and other materials as the Purchaser Indemnified Person may request in order to assure its ability to participate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)If the Seller declines or fails to assume the defense of the Third Party Claim, whether by not giving the Purchaser Indemnified Party timely notice as provided above or otherwise, then the amount of any such Third Party Claim (together with all fees and expenses, including attorneys' fees, incurred by the Purchaser Indemnified Party as a consequence of the Seller's failure to defend the Purchaser Indemnified Party), or if the same be defended by the Purchaser Indemnified Party, then that portion thereof as to which such defense is unsuccessful, will conclusively be deemed to be a liability of the Seller hereunder, unless the Seller in good faith disputes its liability to the Purchaser Indemnified Party hereunder. In any Proceeding with respect to which indemnification is being sought hereunder, and in which the Seller is not entitled to assume or has not assumed the defense thereof, the Seller will have the right to participate in such matter and to retain its own counsel at its own expense. If the Seller does elect to assume the defense of a Third Party Claim, the Purchaser Indemnified Person will not compromise or settle, or offer or consent to compromise or settle, such Third Party Claim without the prior written consent of the Seller (which consent shall not be unreasonably withheld, conditioned or delayed) if the Purchaser Indemnified Person is seeking or will seek indemnification hereunder with respect to such Third Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)The Seller or the Purchaser Indemnified Person, as the case may be, will at all times use reasonable efforts to keep each other reasonably apprised of the status of any matter the defense of which they are maintaining and to cooperate in good faith with each other with respect to the defense of any such matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Direct Claims</u>. In the event a Purchaser Indemnified Person claims a right to indemnity pursuant to <u>Section 9.2(a)</u>, such Purchaser Indemnified Person will send a Claim Notice of such claim to the Seller. Such notice will specify in reasonable detail the basis for such claim and the amount of the Losses, to the extent then determinable, for which

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indemnification is sought. If the Seller shall object in a written statement to a Claim Notice (a "***Claim Objection Notice***"), which such Claim Objection Notice shall set forth in reasonable detail the basis for objecting to the Claim Notice based on a good faith belief thereof, and such Claim Objection Notice shall have been delivered to Purchaser within the Notice Period, no payment shall be made until such claim shall have been resolved. If the Seller delivers a Claim Objection Notice, the Seller and the Purchaser shall attempt in good faith to agree upon the rights of the respective parties with respect to each of such claims set forth in a Claim Objection Notice. In the event the Seller and the Purchaser are unable to agree upon the resolution of an indemnity claim set forth in a Claim Objection Notice within thirty (30) calendar days following delivery of such Claim Objection Notice, or if the Seller does not deliver a Claim Objection Notice within such thirty (30) calendar day period, the Purchaser may pursue any action with respect to the indemnity claim available to them under applicable Law (subject to the provisions of <u>Article 9</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Payment of Indemnification</u>. Upon determination of liability under <u>Section 9.3</u> the Seller will pay to the appropriate Purchaser Indemnified Person, within ten (10) Business Days after the determination of the amount of any claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Limitations on Indemnification</u>. Notwithstanding anything to the contrary set forth in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Seller shall not be required to indemnify any Purchaser Indemnified Party in respect of Losses for which indemnification is claimed pursuant to <u>Section 9.2(a)</u> until the total amount of all such Losses for which indemnification may be asserted under <u>Section 9.2(a)</u>, in the aggregate, exceeds $[\*\*\*] (the "***Deductible***") (which amount represents the aggregate amount accrued for the matters set forth on <u>Schedule 3.12</u> and <u>3.15</u> on the September 30, 2025 balance sheet of the Company included in the Estimated Closing Statement), in which case the Seller shall only be liable under <u>Section 9.2(a)</u>, other than with respect to Fraud, for Losses in excess of the Deductible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Seller shall not be liable for any punitive, exemplary, special, indirect or consequential damages, unless paid or otherwise awarded to a third-Person in connection with a Third Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Each Purchaser Indemnified Person shall use commercially reasonable efforts to mitigate Losses with respect to which such Purchaser Indemnified Party is seeking or will seek indemnification hereunder; <u>provided</u>, that no Purchaser Indemnified Person shall have any obligations to make payments or incur any costs or expenses, grant any concession or incur any other liability in excess of $10,000 in the aggregate in connection with such mitigation efforts, except to the extent the Seller agrees to promptly reimburse such Purchaser Indemnified Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Each Purchaser Indemnified Person shall diligently pursue recovery for Losses under any available insurance policies and diligently pursue payment from any applicable Person, including applicable Governmental Authorities and under any indemnity, contribution or other similar agreements pursuant to which such Purchaser Indemnified Person is a party and may be entitled to indemnification, contribution or similar payment for any Losses in respect of which it seeks indemnification under this Agreement. Any amount payable pursuant to this <u>Section 9.2</u> shall (retroactively if necessary, resulting in a prompt refund to the Seller): (i) be reduced by any insurance proceeds actually received by such Purchaser Indemnified Person in respect of indemnifiable Losses; and (ii) be reduced by any recovery, settlement or indemnity, contribution or similar payment actually received by such Purchaser Indemnified Person from Persons other than the Seller. The Purchaser Indemnified Persons shall not be entitled to recover Losses from the Seller to the extent such Losses would have been covered under available insurance policies or under indemnity, contribution or other similar agreements pursuant to which such Purchaser Indemnified Person is a party if not for a failure by a Purchaser Indemnified Person to properly make a claim or otherwise pursue payment thereunder (or to otherwise comply with the terms thereof).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Exclusive Remedy</u>. From and after the Closing, the contractual right to indemnification under this <u>Section 9.2</u>, subject to all of the terms, conditions and limitations set forth in this <u>Section 9.2</u>, and the R&W Insurance Policy shall constitute the sole and exclusive right and remedy available to the Purchaser Indemnified Persons for any and all Losses or other claims relating to or arising from any breach of any representation or warranty in this Agreement by Seller, or any matter arising out of or relating to those matters set forth on <u>Schedule 9.2(a)</u>; *provided*, *however*, that notwithstanding the foregoing, (a) the Parties shall be entitled to enforce the right to specific performance pursuant to, and subject to the terms of <u>Section 11</u> and (b) neither this <u>Section 9.2(e)</u> nor any other provision of this Agreement or any other Transaction Document will prevent or limit any claim for Fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3<u>Non-Recourse</u>. Notwithstanding any provision of this Agreement or otherwise, the parties to this Agreement agree on their own behalf and on behalf of their respective Subsidiaries and Affiliates that no Non-Recourse Party of a party to this Agreement shall have any liability relating to this Agreement or any of the transactions set forth herein.

10.**POST CLOSING MATTERS**. Following the Closing Date, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1<u>Cooperation</u>. In case at any time after the Closing any further action is necessary to carry out the purposes of this Agreement, each of the parties will take such further action (including the execution and delivery of such further instruments and documents) as any other party reasonably may request, all at the sole cost and expense of the requesting party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2<u>Tax Matters.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Straddle Tax Periods</u>. For purposes of this Agreement, Tax liabilities with respect to a Tax period which begins on or before and ends after the Closing Date ("***Straddle Tax Periods***") shall be apportioned between the portion of such period ending on the Closing Date and the portion beginning on the day after the Closing Date. The portion of any Taxes for any Straddle Tax Period allocable to the Pre-Closing Tax Period shall be determined as follows: (i) in the case of any real and personal property Taxes and franchise Taxes not based on gross or net income, based on the total amount of such Taxes for the relevant Straddle Tax Period multiplied by a fraction, the numerator of which shall be the number of days in such Straddle Tax Period through the Closing Date and the denominator of which shall be the total number of days in such Straddle Tax Period, and (ii) in the case of any Taxes other than those described in clause (i), as if such taxable period ended at the close of the Closing Date; <u>provided</u>, <u>however</u>, that for purposes of this clause (ii), (A) any Transaction Tax Deductions shall be allocated in accordance with the provisions of <u>Section 10.2(e)</u>, (B) any transactions outside the Ordinary Course of Business following the Closing on the Closing Date shall be allocable to the portion of the Straddle Tax Period following the Closing Date and (C) any item determined on an annual or periodic basis (including amortization and depreciation deductions) shall be allocated to the portion of the Straddle Tax Period ending on the Closing Date based on the relative number of days in such portion of the Straddle Tax Period as compared to the number of days in the entire Straddle Tax Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Tax Returns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Purchaser shall prepare and file, or cause to be prepared and filed, all Tax Returns of the Company that are required to be filed after the Closing Date. Any Tax Return for any Straddle Tax Period or Pre-Closing Tax Period shall be prepared, and all elections with respect to such Tax Returns shall be made, in a manner consistent with the prior practice of the Company. The Purchaser shall provide the Seller with completed drafts of such Tax Returns for the Seller's review and comment at least thirty (30) days prior to the due date for filing thereof. The Purchaser and the Seller shall negotiate in good faith to resolve any disputes with respect to any such Tax Returns; <u>provided</u>, <u>however</u>, that if the Purchaser and the Seller are unable to resolve any such dispute with fifteen (15) days prior to the due date for filing thereof, Purchaser and Seller shall engage the Neutral Auditor to resolve such dispute, and the Neutral Auditor's decision shall be final and binding on the Seller, the Purchaser and the Company. All fees and expenses of the Neutral Auditor shall be borne by Purchaser and Seller in accordance with <u>Section 1.4(a)(iii)</u> applied *mutatis mutandis*. Within ten (10) Business Days after the filing of any Tax Return relating to a Straddle Tax Period or a Pre-Closing Tax Period, an amount equal to the excess, if any, of the amount of such Taxes paid by the Company on or before the Closing Date in respect of such Tax period (whether as payments of estimated Tax or credits of prior years' Tax

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refunds) or taken into account as a liability reducing Actual Net Working Capital over the amount of Taxes shown on such Tax Return, or, in the case of a Straddle Tax Period, shown on such Tax Return and relating to the portion of such Straddle Tax Period ending on the Closing Date (as determined under <u>Section 10.2(a)</u>) will be paid in cash by the Company to the Seller within ten (10) Business Days following the filing of any Tax Returns for any such Straddle Tax Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Cooperation</u>. In connection with the preparation of Tax Returns and audit examinations relating to the Company by any Governmental Authority or administrative or judicial proceedings resulting therefrom, the Seller and the Purchaser will use commercially reasonable efforts to cooperate with one another, including, but not limited to, the furnishing or making available on a timely basis of records, personnel (as reasonably required), books of account, powers of attorney or other materials necessary or helpful for the preparation of Tax Returns, the conduct of audit examinations or the defense of claims by Taxing Authorities as to the imposition of Taxes. The Seller agrees to retain all books and records with respect to Tax matters pertinent to the Company relating to any taxable period beginning before the Closing Date until the expiration of the statute of limitations for the respective taxable periods, and to abide by all record retention agreements entered into with any Taxing Authority with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Purchaser Tax Actions</u>. Following the Closing, neither the Purchaser nor the Company will (and neither the Purchaser nor the Company will allow any of its Affiliates to): (i) file (other than in accordance with <u>Section 10.2(b)</u>), amend or modify any Tax Return of the Company in respect of a Pre-Closing Tax Period; (ii) extend or waive, or cause to be extended or waived, or permit the Company to extend or waive, any statute of limitations or other period for the assessment of any Tax or deficiency for any Pre-Closing Tax Period; (iii) make, amend or revoke any Tax election or accounting method or practice with respect to the Company that has retroactive effect to Pre-Closing Tax Period; (iv) surrender or waive any right to a refund or take any other action with respect to a Pre-Closing Tax Period that could cause the Seller (or its beneficial owners) to have additional Tax liability or reduce any Tax refund to which they may otherwise be entitled to; or (v) make a voluntary disclosure to a Governmental Authority with respect to the Company for a Pre-Closing Tax Period, in each case without the prior written consent of the Seller (not to be unreasonably conditioned, withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Tax Treatment</u>. The Purchaser and its Affiliates, the Company and the Seller agree with respect to certain Tax matters as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)To treat any Transaction Tax Deductions available to the Company as deductible in a Pre-Closing Tax Period (including the portion of a Straddle Tax Period ending on and including the Closing Date) to the fullest extent allowable under applicable Laws including for purposes of calculating the Net Working Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)To make an election under Revenue Procedure 2011-29 to deduct 70 percent of any Transaction Tax Deductions available to the Company that are "success-based fees" under Treasury Regulation Section 1.263(a)-5(f).

(f)Unless otherwise required by a final determination of a Governmental Authority, the Purchaser shall cause the Company and all of its other Affiliates to file all Tax Returns consistently with the agreements set forth in this <u>Section 10.2(d)</u> and not take any position inconsistent with the agreement in this <u>Section 10.2(d)</u> during an audit or other proceeding with any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Transfer Taxes</u>. The Purchaser and the Seller shall each be liable for, and shall pay (or cause to be paid) fifty percent (50%) of any and all transfer, documentary, sales, use, registration and real property transfer or gains tax, stamp tax, excise tax, stock transfer tax, or other similar Tax imposed as a result of the transactions contemplated by this Agreement (collectively, "***Transfer Taxes***") and any penalties or interest with respect to the Transfer Taxes. The Purchaser and the Seller agree to cooperate to establish any available exemption from (or otherwise reduce) any such Transfer Taxes, and also agree to cooperate in the filing of any returns with respect to the Transfer Taxes, including by promptly supplying any information in their possession that is reasonably necessary to complete such returns.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Tax Refunds.</u> Any refund of Taxes that were imposed on the Company for any Pre-Closing Tax Period or of Taxes that were included in the calculation of the Purchase Price and any interest paid or credited in respect thereto (collectively, a "***Refund***"), shall be the property of the Seller. If any Refund is received by the Purchaser, the Company or any of its Affiliates, including by way of credit or allowance against Taxes otherwise payable, an amount equal to such Refund (other than any Refund to the extent it results from the carry-back to a Pre-Closing Tax Period of any deductions, losses or other Tax attributes arising in Tax periods or portions thereof beginning after the Closing Date), shall be paid to the Seller promptly upon receipt from the applicable Governmental Authority. The Purchaser shall, if the Seller so requests and at the Seller's expense, cause the relevant entity to file for and obtain any Refund to which the Seller is entitled under this <u>Section 10.2(g)</u>. The principles of <u>Section 10.2(a)</u> shall apply in determining the portion of any Refund with respect to a Straddle Tax Period that is attributable to the Pre-Closing Tax Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3<u>Misdirected Payments</u>. The Seller and the Purchaser acknowledge that it is possible that (i) the Seller may hereinafter inadvertently pay account payables which relate to the pre-Closing Company's business and should be for the account of the Purchaser, or may inadvertently receive payments of account receivables which relate to the post-Closing operations of the Company, and (ii) the Purchaser or the Company may inadvertently pay account payables, which relate to the pre-Closing Company's business conducted by the Seller and should be for the account of the Seller, and may inadvertently receive payments of account receivables which relate to the business of the Seller or its Affiliates. Each party agrees, promptly following receipt of any accounts receivable payments which should have been paid to the other party, to hold such payment in trust for the other party, and to remit such amounts to the other party. Each party further agrees that promptly following receipt of notice from the other party requesting reimbursement for the payment of account payables, which payables should have been paid by the party receiving such notice or its Affiliates, then such party will promptly make a reimbursement payment to the party making the request for reimbursement.

11.**SPECIFIC PERFORMANCE**. Each of the Purchaser, the Seller and the Company acknowledge that the other parties may be irreparably harmed and that there may be no adequate remedy at law for any violation by any of them of any of the covenants or agreements contained in this Agreement. It is accordingly agreed that, in addition to, but not in lieu of, any other remedies that may be available upon the breach of any such covenants or agreements (including monetary damages and remedies under <u>Section 9</u>), each party shall have the right to seek injunctive relief to restrain a breach or threatened breach of, or otherwise to seek specific performance of, the other parties' covenants and agreements contained in this Agreement. Each party agrees that it will not oppose the granting of an injunction, specific performance or other equitable relief on the basis that the party seeking such injunction, specific performance or other equitable relief has an adequate remedy at law or that any award of specific performance is not an appropriate remedy for any reason at law or equity. In the event that any party seeks an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the terms and provisions of this Agreement, such party shall not be required to provide any bond or other security in connection with any such injunction or other order, decree, ruling or judgment.

12.**PUBLIC STATEMENTS**. None of the Purchaser, the Seller or the Company, without the prior written approval of the other parties will make any press release or other public announcement concerning the transactions contemplated by this Agreement without the prior written consent of such other parties, except (x) in the case that party is required by the rules and regulations of the SEC or any securities exchange on which such party's or its Affiliates' securities are listed or (y) otherwise as required by Law, in which case the party required to make the release or announcement will use its reasonable efforts to permit the other party to review such release or announcement prior to issuance, and consider, in good faith, any comments thereto provided by the other party. Without limiting the forgoing, none of the Purchaser, the Company or the Seller, without the prior written approval of the other parties (which approval shall not be unreasonably withheld, delayed or conditioned), shall disclose the Purchase Price, the approximate amount of the Purchase Price, any other financial information from which the approximate amount of the Purchase Price may be determined, or disclose any of the other essential terms of this Agreement except as required by Law or required for financial reporting purposes and except that the parties (or their respective Affiliates) may disclose such terms to their respective employees, accountants, advisors and other Representatives or their respective financing sources as necessary in connection with the ordinary conduct of their respective businesses (so long as such Persons agree to or are bound by contract to keep the terms of this Agreement confidential on terms substantially similar to those set forth in this Agreement that are applicable to the disclosing party hereunder). Notwithstanding

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the foregoing, this <u>Section 12</u> shall not (a) apply to any press release or other public statement (i) that contains information that has been previously announced or made public in accordance with the terms of this Agreement or (ii) is made in the Ordinary Course of Business and does not relate specifically to the signing of this Agreement or the transactions contemplated hereby, or (b) prohibit the Purchaser or its Affiliates from providing ordinary course communications regarding this Agreement and the transactions contemplated hereby to existing or prospective general and limited partners, equity owners, members, managers, lenders, and investors of any Affiliates of such Person who are subject to customary confidentiality restrictions prohibiting further communications thereof.

13.**EXPENSES**. Except as expressly set forth herein, each party shall bear its own legal and other fees and expenses incurred in connection with its negotiating, executing and performing this Agreement and the other Transaction Documents, including any related investment banking broker or finder's fees with which any of them have contracted, for periods on or before the Closing Date.

14.**AMENDMENT AND ASSIGNABILITY**. This Agreement may be amended only by the execution and delivery of a written instrument by or on behalf of the Purchaser and the Seller. This Agreement will be binding upon and will inure to the benefit of the parties and their respective successors and permitted assigns. This Agreement may not be assigned by any party without the prior written consent of the other parties, which may be granted or denied in their sole discretion.

15.**NOTICES**. All notices, demands and other communications pertaining to this Agreement ("***Notices***") must be in writing addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;if to the Company (prior to the Closing), to:

Residential Management Group, LLC

c/o Douglas Elliman Inc.

Attention: Senior Vice President, General Counsel and Secretary

E-mail: [\*\*\*]

with a copy (which shall not constitute notice but shall be required for notice) to:

Greenberg Traurig, P.A.

333 S.E. 2nd Avenue, Suite 4400

Miami, Florida 33131

Attention: Daniella Silberstein

Email: daniella.silberstein@gtlaw.com

&nbsp;&nbsp;&nbsp;&nbsp;raffael.fiumara@gtlaw.com

&nbsp;&nbsp;&nbsp;&nbsp;alan.annex@gtlaw.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;if to the Seller, to:

Douglas Elliman Realty LLC<br>575 Madison Avenue, 4th Floor<br>New York, NY 10022

Attention: Executive Vice President & General Counsel

E-mail: [\*\*\*]

and

Douglas Elliman Inc.<br>4400 Biscayne Blvd, Floor 10<br>Miami, FL 33137

Attention: Senior Vice President, General Counsel and Secretary

[\*\*\*]

with a copy (which shall not constitute notice but shall be required for notice) to:

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Greenberg Traurig, P.A.

333 S.E. 2nd Avenue, Suite 4400

Miami, Florida 33131

Attention: Daniella Silberstein

Email: daniella.silberstein@gtlaw.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;if to the Purchaser (or the Company following the Closing), to:

PMG Holdings, Inc.<br>2301 N. Greenville Avenue, 4th Floor <br>Richardson, Texas 75082<br>Attn: John J. Carona<br>E-mail: [\*\*\*]

with a copy (which shall not constitute notice but shall be required for notice) to:

Jose Maldonado & Chad Kluever<br>2301 N. Greenville Avenue, 4th Floor <br>Richardson, Texas 75082

E-mail: [\*\*\*] and [\*\*\*]

Notices will be deemed given three (3) Business Days after being mailed by certified or registered United States mail, postage prepaid, return receipt requested, or on the first Business Day after being sent, prepaid, by nationally recognized overnight courier that issues a receipt or other confirmation of delivery. Notices delivered via facsimile, electronic mail or e-mail in PDF format will be deemed given upon transmission; <u>provided</u>, that by no later than two (2) days thereafter such notice is (i) confirmed in writing and sent via one of the methods described in the immediately previous sentence or (ii) the recipient of such notice acknowledges receipt in writing. Notices delivered by personal service will be deemed given when actually received by the recipient. Any party may change the address to which Notices under this Agreement are to be sent to it by giving written notice of a change of address in the manner provided in this Agreement for giving Notice.

16.**WAIVER**. Unless otherwise specifically agreed in writing to the contrary: (a) the failure of any party at any time to require performance by the other of any provision of this Agreement will not affect such party's right thereafter to enforce the same; (b) no waiver by any party of any default by any other party will be valid unless in writing and acknowledged by an authorized representative of the non-defaulting party, and no such waiver will be taken or held to be a waiver by such party of any other preceding or subsequent default; and (c) no extension of time granted by any party for the performance of any obligation or act by any other party will be deemed to be an extension of time for the performance of any other obligation or act hereunder

17.**ENTIRE AGREEMENT**. This Agreement (including the Exhibits and Disclosure Schedules hereto, which are incorporated by reference herein and deemed a part of this Agreement) and the other Transaction Documents constitute the entire agreement between the parties with respect to the subject matter hereof and referenced herein, and supersede and terminate any prior agreements between the parties (written or oral) with respect to the subject matter hereof.

18.**COUNTERPARTS; ELECTRONIC SIGNATURE**. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, with the same effect as if the signature on each such counterpart were on the same instrument. Further, this Agreement may be executed by transfer of an originally signed document by facsimile, electronic or e-mail in PDF format, each of which will be as fully binding as an original document.

19.**SEVERABILITY**. In case any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions will not in any way be affected or impaired. Any illegal or unenforceable term

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will be deemed to be void and of no force and effect only to the minimum extent necessary to bring such term within the provisions of applicable Law and such term, as so modified, and the balance of this Agreement will then be fully enforceable.

20.**GOVERNING LAW**. THIS AGREEMENT AND ANY CLAIM, CAUSE OF ACTION, CONTROVERSY OR DISPUTE (WHETHER IN CONTRACT, TORT, EQUITY, STATUTE OR OTHERWISE) ARISING UNDER, BASED UPON OR RELATED IN ANY WAY TO THIS AGREEMENT, THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT (INCLUDING ANY CLAIM, CAUSE OF ACTION, ACTION, CONTROVERSY OR DISPUTE ARISING UNDER, BASED UPON OR RELATED IN ANY WAY TO ANY REPRESENTATION OR WARRANTY MADE IN OR IN CONNECTION WITH THIS AGREEMENT, OR AS AN INDUCEMENT TO ENTER INTO THIS AGREEMENT), THE RELATIONSHIP AND/OR DEALINGS OF THE PARTIES, THE PROPOSED TRANSACTION AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES HEREUNDER OR RELATED IN ANY WAY TO THE FOREGOING (A "***DISPUTE***"), SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, INCLUDING ITS STATUTES OF LIMITATIONS, WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE. THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT THE REQUIREMENTS OF 6 DEL. C. § 2708 ARE SATISFIED BY THE PROVISIONS OF THIS AGREEMENT AND THAT SUCH STATUTE MANDATES THE APPLICATION OF DELAWARE LAW TO THIS AGREEMENT AND ANY DISPUTE.

21.**JURISDICTION; WAIVER OF JURY TRIAL**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each of the parties hereby (i) irrevocably and unconditionally agrees that any Dispute shall be brought solely and exclusively in the Court of Chancery of the State of Delaware or, if the Court of Chancery of the State of Delaware does not have jurisdiction over a particular Dispute, the Delaware Superior Court's Complex Commercial Litigation Division located in New Castle County, or if Delaware Superior Court's Complex Commercial Litigation Division located in New Castle County does not have jurisdiction over a particular Dispute, any other state court located within the State of Delaware (the "***Delaware Courts***"), (ii) expressly, irrevocably and unconditionally submits to the sole and exclusive jurisdiction of the Delaware Courts with regard to any Dispute, (iii) agrees not to commence any Dispute except in the Delaware Courts, and (iv) waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any such Dispute, any claim that such party is not subject personally to the jurisdiction of the Delaware Courts, that such party's property is exempt or immune from attachment or execution, that such Dispute brought in an inconvenient forum, that the venue of such Dispute is improper or that this Agreement or the subject matter of this Agreement may not be enforced in or by the Delaware Courts. Each of the parties agrees that a final judgment in any Dispute or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each party irrevocably consents to the service of process outside the territorial jurisdiction of the Delaware Courts in any Dispute or proceeding by mailing copies thereof by registered or certified U.S. mail, postage prepaid, return receipt requested, to its address as specified in or pursuant to <u>Section 15</u>. However, the foregoing shall not limit the right of a party to effect service of process on the other party by any other legally available method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HEREBY WAIVES SUCH PERSON'S RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY DISPUTE. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE SCOPE OF THE FOREGOING WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT. THIS <u>SECTION 21(c)</u> HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES AND, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH OF THE PARTIES HEREBY FURTHER REPRESENTS AND WARRANTS THAT SUCH PERSON HAS REVIEWED THIS WAIVER WITH SUCH PERSON'S LEGAL COUNSEL, AND THAT SUCH PERSON KNOWINGLY AND VOLUNTARILY WAIVES SUCH PERSON'S JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

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ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS <u>SECTION 21(c)</u> WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

22.**REPRESENTATION BY COUNSEL**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Notwithstanding the fact that the Law Firm has jointly represented the Seller and the Company, and their respective Affiliates, in connection with this Agreement, and has also represented the Seller, the Company and/or their respective Affiliates in connection with matters other than the transactions that are the subject of this Agreement prior to the Effective Time, the Law Firm will be permitted in the future, after the Effective Time, to represent one or more of such parties (other than the Company), or their respective equity holders, officers, directors or managers in connection with matters in which such parties or their respective equity holders, officers, directors or managers are adverse to the Purchaser, the Company and/or their respective Affiliates, including any disputes that such parties or their respective equity holders, officers, directors or managers hereafter may have against the Purchaser, the Company or any of their respective Affiliates in each case which arise out of or relate to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each party to this Agreement agrees to waive, in advance, any actual or potential conflict of interest that may hereafter arise in connection with the Law Firm's future representation of the Seller and/or its respective Affiliates (other than the Company) or their respective equity holders, officers, directors or managers on matters in which the interests of such party or their respective equity holders, officers, directors or managers are adverse to the interests of Purchaser and/or the Company, including any matters that arise out of this Agreement or that are substantially related to this Agreement or to any prior representation by the Law Firm of the Seller or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding any legal requirement to the contrary, all confidential communications between any of the Law Firm and the Seller, the Company and/or their respective Affiliates or their respective equity holders, officers, directors or managers that occurred in the context of the Law Firm's representation of the Seller or the Company prior to the Effective Time relating to this Agreement or transactions contemplated hereby ("***Confidential Communications***") will remain privileged as between such Law Firm and such party or their respective equity holders, officers, directors or managers after the Effective Time, and the Company agree that the privilege shall remain with the Seller following the Effective Time such that, without limiting the Seller's right to such privilege, the Seller alone shall have and maintain the right to waive the privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Each of the Purchaser, the Seller and the Company agree that prior to the Effective Time, the Company and their Affiliates or their respective equityholders, officers, directors or managers shall attempt to delete or otherwise remove from the Company's computer server(s) and/or other records all copies of emails and other documents (both electronic or otherwise) that contain Confidential Communications, and each of the Purchaser, the Seller and the Company further agree that if the Company and their Affiliates or their respective equityholders, officers, directors or managers fail to delete or remove all such documents, such failure shall be deemed inadvertent and shall not constitute a waiver of the attorney-client privilege or any other privilege applicable to such documents. The Purchaser hereby further agrees that: (i) it will not seek disclosure of any Confidential Communications from the Law Firm, the Seller, the Company, their respective Affiliates or their respective equityholders, officers, directors or managers after the Effective Time, in the context of litigation or otherwise; or (ii) to the extent any emails or other documents (either electronic or otherwise) containing any Confidential Communications are included in the computer server(s) used by the Company or are otherwise within the records of the Company following the Effective Time, they will, upon discovery of any such documents, deliver a copy of any such documents to the Seller and thereafter permanently delete or destroy all such emails or other documents containing such Confidential Communication and not review or otherwise use such documents or the Confidential Communications for any purpose.

23.**NO THIRD-PARTY BENEFICIARIES**. Except with respect to <u>Section 5.3</u>, this Agreement will not confer any rights upon any Person other than the parties hereto and their respective successors and assigns.

24.**EXHIBITS, APPENDICES AND COMPANY DISCLOSURE SCHEDULE**. The Exhibits, Appendices and Disclosure Schedules referenced in this Agreement are a material part of this Agreement. Each Disclosure Schedule will be deemed incorporated into this Agreement. The Disclosure Schedules

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are intended only to qualify and limit the representations, warranties and covenants in the Agreement and shall not be deemed to expand in any way the scope or effect of any such representations, warranties or covenants. No Disclosure Schedule relating to any possible breach or violation of any agreement, law or regulation shall be construed as an admission that any such breach or violation has actually occurred. No reference to or disclosure of any item or other matter in the Disclosure Schedules will be construed as an admission or indication that such item or other matter disclosed is material or such item or other matter is required to be referred to or disclosed in the Disclosure Schedules. Disclosures made for the purpose of any one Disclosure Schedule shall be deemed made for the purpose of all representations and warranties so long as the applicability to the other representations and warranties is reasonably apparent on its face from such disclosure. Any reference to a contract, statement, plan, report or other document of any kind in the Disclosure Schedules shall be deemed to be a disclosure thereof to the extent the applicable representation or warranty calls for a listing of the same and it shall not in such case be necessary to identify or reference specific provisions of such documents except to the extent necessary to clarify or qualify such disclosure.

25.**DEFINITIONS; INTERPRETATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1<u>Definitions</u>. As used in this Agreement, the following terms have the following meanings:

"***Accounting Principles***" means the accounting principles, practices, policies, judgments and methodologies set forth in <u>Exhibit I</u> to this Agreement.

"***Acquired Interests***" has the meaning set forth in the Recitals.

"***Action***" means any third party claim, action, litigation, proceeding (arbitral, administrative, legal or otherwise), suit, demand, audit or similar matter, in each case, by or before any Governmental Authority.

"***Actual Closing Cash***" has the meaning set forth in <u>Section 1.4(a)</u>.

"***Actual Closing Purchase Price***" has the meaning set forth in <u>Section 1.4(a)</u>.

"***Actual Company Indebtedness***" has the meaning set forth in <u>Section 1.4(a)</u>.

"***Actual Company Transaction Expenses***" has the meaning set forth in <u>Section 1.4(a)</u>.

"***Actual Net Working Capital***" has the meaning set forth in <u>Section 1.4(a)</u>.

"***Affiliate***" means, with respect to any Person, any other Person that, directly or indirectly, Controls, is Controlled by, or is under common Control with or of, such Person. The term "Control" (including, with correlative meaning, the terms "Controlled by" and "under common Control with"), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. Notwithstanding the foregoing, "Affiliate" shall not include (i) the direct or indirect stockholders of the Company's indirect equityholder, DOUG or (ii) any portfolio company or investment fund affiliated with any Person in the foregoing clause (i).

"***Agreement***" has the meaning set forth in the preamble of this Agreement.

"***Allocation***" has the meaning set forth in <u>Section 1.8</u>.

"***Assets***" means all Cash (which, for the avoidance of doubt, may be distributed by the Company prior to Closing), marketable securities, and Personal Property owned or leased by the

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Company and all Contracts and Leases to which the Company is a party, all Permits held by the Company, all Company IP, and all other property or assets owned or leased by the Company.

"***Assignment Agreement***" has the meaning set forth in <u>Section 7.1(a)</u>.

"***Associa***" means Associations Inc., a Texas corporation and Affiliate of Purchaser.

"***Base Purchase Price***" has the meaning set forth in <u>Section 1.1</u>.

"***Benefit Plans***" has the meaning set forth in <u>Section 3.16(a)</u>.

"***Brokerage Exclusivity Agreement***" has the meaning set forth in <u>Section 7.1(i)</u>.

"***Business***" means the Company's management of cooperative, condominium and rental apartment buildings.

"***Business Day***" means a day, other than a Saturday or Sunday, on which commercial banks in New York, New York are open for the general transaction of business.

"***Cash***" means, as of the date of determination, the sum of (a) the aggregate amount of cash and cash equivalents held as of the Closing Date in the bank and other accounts, including money market accounts, of the Company, <u>plus</u> (b) deposits in transit and deposits not yet cleared, <u>minus</u> (c) the aggregate balance of all outstanding checks written against such accounts.

"***Claim Notice***" has the meaning set forth in <u>Section 9.2(b)(i)(A)</u>.

"***Claim Objection Notice***" has the meaning set forth in <u>Section 9.2(b)(ii)</u>.

"***Closing***" has the meaning set forth in <u>Section 1.6(a)</u>.

"***Closing Cash***" means the amount of Cash of the Company as of the Effective Time.

"***Closing Company Transaction Expenses***" means the amount of unpaid Company Transaction Expenses as of the Closing Date.

"***Closing Date***" has the meaning set forth in <u>Section 1.6(a)</u>.

"***Closing Date Balance Sheet***" has the meaning set forth in <u>Section 1.4(a)</u>.

"***Closing Indebtedness***" means the amount of Indebtedness of the Company that will be outstanding as of immediately prior to the Closing.

"***Closing Net Working Capital***" means the Net Working Capital of the Company as of the Effective Time.

"***Closing Purchase Price***" has the meaning set forth in <u>Section 1.1</u>.

"***Closing Statement***" has the meaning set forth in <u>Section 1.4(a)</u>.

"***COBRA***" has the meaning set forth in <u>Section 3.16(b)</u>.

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"***Code***" means the Internal Revenue Code of 1986, as amended.

"***Commercial Non-Tax Contract"*** means any agreement entered into in the Ordinary Course of Business or arrangement the primary purpose of which is not the allocation or indemnification of Tax liability but that contains agreements or arrangements relating to the apportionment, sharing, indemnification, assignment or allocation of Taxes (such as financing agreements with Tax gross-up obligations or leases with Tax escalation provisions).

"***Company***" has the meaning set forth in the preamble to this Agreement.

"***Company IP***" means all Intellectual Property owned by the Company as of the Closing Date.

"***Company Systems***" has the meaning set forth in <u>Section 3.23(c)</u>.

"***Company Transaction Expenses***" means, without duplication, the aggregate amount payable by the Company for fees, costs and expenses that are incurred in connection with the transactions contemplated by this Agreement, in each case, which have not otherwise been paid by the Company at or prior to the Closing, including: (a) all change-in-control payments to employees, consultants or other service providers payable by the Company pursuant to an agreement entered into by the Company before the Closing, which payments are triggered solely as a result of the consummation of the transactions contemplated by this Agreement; (b) fifty percent (50%) of the [\*\*\*] in retention bonuses being paid, in the aggregate, at Closing to [\*\*\*]; (c) brokerage, fees, commissions, finders' fees or similar advisory fees; (d) fees, costs, expenses and disbursements payable to legal counsel, accountants, investment bankers, tax and other advisors and consultants; and (e) fifty percent (50%) of the R&W Insurance Expenses. For the avoidance of doubt, no fees and expenses of the Company that are incurred because of the direct or indirect actions of the Purchaser (for example, any fees and expenses in connection with the incurrence of Indebtedness to finance the transactions contemplated by this Agreement) shall be considered a Company Transaction Expense .

"***Confidential Communications***" has the meaning set forth in <u>Section 22(c)</u>.

"***Continuing Employee***" has the meaning set forth in <u>Section 5.2(a)</u>.

"***Contracts***" means all contracts, agreements, binding arrangements, bonds, notes, indentures, mortgages, debt instruments, licenses (and all licenses concerning Intellectual Property), franchises, leases, joint venture agreement and other instruments or obligations of any kind, written or oral (including any amendments and other modifications thereto), to which the Company is a party or which are binding upon any of the Assets, and which are in effect on the Closing Date and for which the term has not expired.

"***Control***" has the meaning set forth in the definition of Affiliate.

"***Convertible Securities***" means all convertible securities (including convertible promissory notes) or other rights to subscribe for or purchase any equity securities or other equity interests of the Company, or securities convertible into or exchangeable for, or that otherwise confer on the holder any right to acquire, any equity securities of the Company.

"***D&O Action***" has the meaning set forth in <u>Section 5.3(b)</u>.

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"***D&O Costs***" has the meaning set forth in <u>Section 5.3(b)</u>.

"***D&O Expenses***" has the meaning set forth in <u>Section 5.3(b)</u>.

"***D&O Indemnifying Party***" has the meaning set forth in <u>Section 5.3(b)</u>.

"***D&O Indemnitees***" has the meaning set forth in <u>Section 5.3(b)</u>.

"***Deductible***" has the meaning set forth in <u>Section 9.2(d)(i)</u>.

"***Delaware Courts***" has the meaning set forth in <u>Section 21(a)</u>.

"***Disclosure Schedules***" means the disclosure schedules to this Agreement.

"***Dispute***" has the meaning set forth in <u>Section 20</u>.

"***DOUG***" means Douglas Elliman Inc. a Delaware corporation and Affiliate of Seller.

"***Effective Time***" has the meaning set forth in <u>Section 1.6(a)</u>.

"***Emergency***" means any unrest, emergency or pandemic, including the SARS-CoV-2 or COVID-19 pandemic, and any continuation, worsening or evolutions or mutations thereof or any related or associated disease outbreaks, epidemics or pandemics.

*"****Employees****"* means any current employee of the Company.

"***Enforceability Exceptions***" means bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar Laws affecting creditors' rights generally or by general principles of equity affecting the availability of specific performance and other equitable remedies (regardless of whether enforcement is sought in a proceeding at law or equity).

"***Environmental Laws***" means any and all Laws relating to pollution or protection of the environment or natural resources, including those relating to actual or threatened releases, discharges, or emissions of Hazardous Materials into the environment or the manufacture, handling, transport, use, treatment, storage or disposal of or exposure to Hazardous Materials.

"***ERISA***" means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

"***Estimated Closing Cash***" has the meaning set forth in <u>Section 1.3(a)</u>.

"***Estimated Closing Date Balance Sheet***" has the meaning set forth in <u>Section 1.3(a)</u>.

"***Estimated Closing Statement***" has the meaning set forth in <u>Section 1.3(a)</u>.

"***Estimated Company Indebtedness***" has the meaning set forth in <u>Section 1.3(a)</u>.

"***Estimated Company Transaction Expenses***" has the meaning set forth in <u>Section 1.3(a)</u>.

"***Estimated Net Working Capital***" has the meaning set forth in <u>Section 1.3(a)</u>.

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"***Estimated Net Working Capital Statement***" has the meaning set forth in <u>Section 1.3(a)</u>.

"***Exhibits***" means the exhibits to this Agreement.

"***Existing Insurance Policy***" has the meaning set forth in <u>Section 3.17</u>.

"***Existing Self-Insurance Program***" has the meaning set forth in <u>Section 3.17</u>.

"***Final Closing Statement***" has the meaning set forth in <u>Section 1.4(a)(iii)</u>.

"***Financial Statements***" has the meaning set forth in <u>Section 3.13</u>.

"***Fraud***" means intentional common law fraud under the Laws of the State of Delaware in the making of a specific representation or warranty expressly set forth in <u>Article 2</u> or <u>Article</u> 3 of this Agreement, committed by the party making such express representation or warranty; <u>provided</u>, <u>however</u> that Fraud shall not include any equitable fraud, constructive fraud, promissory fraud, negligent misrepresentation, extracontractual fraud, unfair dealings or any tort (including any claim for fraud) based on negligence or recklessness.

"***GAAP***" means United States generally accepted accounting principles as consistently applied during the periods involved.

"***Governing Documents***" of a Person means such Person's (i) articles or certificate of incorporation, organization or formation, or their equivalent, and all amendments thereto or amendments and restatements thereof, and (ii) bylaws or limited liability company agreement, as applicable, and all amendments thereto or amendments and restatements thereof.

"***Governmental Authority***" means any federal, state, local, foreign, domestic, supranational or other governmental, quasi-governmental or administrative body, instrumentality, department, entity, board, bureau, instrumentality or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute-resolving panel or body, or any political or other subdivision, department or branch of any of the foregoing.

"***Hazardous Materials***" means any substance, material, or waste defined or designated as hazardous or toxic (or by any similar term) under any Environmental Law, or any other substance, material, or waste regulated, under any Environmental Law because of its effect or potential effect on public health or the environment, including petroleum or any fraction thereof, petroleum products, asbestos and asbestos-containing material, radioactive materials, and polychlorinated biphenyls.

"***Healthcare Costs***" has the meaning set forth in <u>Section 5.2(a)</u>.

"***Indebtedness***" means, without duplication, (i) all indebtedness for borrowed money or for the deferred purchase price of property (including any obligations secured by a purchase money mortgage or other Lien to secure all or part of the purchase price of the property subject to such Lien), (ii) all obligations evidenced by notes, bonds, debentures or similar instruments, (iii) any obligations under any surety bond, performance bond, letter of credit, bankers' acceptance or similar instrument, solely to the extent drawn, (iv) lease obligations that are required to be classified as finance leases in accordance with GAAP, (v) all obligations in respect of swaps or other hedging agreements, (vi) all accrued interest and premiums, penalties, make whole or similar payments payable in connection with the obligations in any other clause of this definition, (vii) all obligations described in the foregoing clauses (i) through (vi)

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of any Person that are guaranteed, directly or indirectly, by such Person, and (viii)all obligations described in the foregoing clauses (i) through (vii) of a third party secured by any Lien on property or assets of such Person; <u>provided</u>, <u>however</u>, that "Indebtedness" specifically excludes, to the extent incorporated in the calculations of Net Working Capital hereunder, (a) trade payables to the extent they were incurred within the last ninety (90) days and amounts owed to the Employees of the Company for unreimbursed business expenses incurred in the Ordinary Course of Business and (b) credit card debt incurred in the Ordinary Course of Business.

"***Intellectual Property***" means all proprietary rights in and to the following as they exist in any jurisdiction throughout the world: (i) United States and foreign patents, patent applications, continuations-in-part, divisions or reissues; (ii) United States federal, state and foreign trademarks, service marks, and trade names, pending applications to register the foregoing, and common law trademarks, service marks and trademarks, designs, logos, and other designations of origin and all goodwill associated therewith; (iii) any and all copyrightable works in original works of authorship, including but not limited to registered copyrights in both published works and unpublished works, unregistered copyrights in both published works and unpublished works, and applications to register copyrightable works of authorship; and (iv) trade secrets, confidential business information, and know-how, (collectively, "***Trade Secrets***").

"***IRS***" means the United States Internal Revenue Service.

"***Knowledge***" means (a) with respect to the Company or the Seller, the actual knowledge of any of John R. Janangelo, James J. Miller, Elly C. Pateras, Bryant Kirkland, Bradley Brodie or Deva Roberts after reasonable inquiry of their respective direct reports and (b) with respect to any other Person, the actual knowledge of such Person.

"***Latest Balance Sheet Date***" has the meaning set forth in <u>Section 3.13</u>.

"***Law Firm***" means Greenberg Traurig, P.A.

"***Laws***" means any applicable law (including common law), statute, rule, regulation, ordinance, code, directive, writ, injunction, settlement, decree or other Order of any Governmental Authority.

"***Leased Premises***" has the meaning set forth in <u>Section 3.19(a)</u>.

"***Leases***" has the meaning set forth in <u>Section 3.19(a)</u>.

"***Liens***" means all liens (statutory or otherwise), rights of first refusal, mortgages, deeds of trust, collateral assignments, security interests, Uniform Commercial Code financing statements, pledges and hypothecations.

"***Lookback Date***" means October 24, 2022.

"***Loss***" means any loss, damage, penalty, fine, cost, amount paid in settlement, liability, expense, cost, charge, liability, settlement, payment, award, judgment, Tax, fine, interest award, penalty, damage, assessment, deficiency of any kind (including an Action brought by any Governmental Authority or Person) and fee (including court costs and reasonable attorneys' or other professionals' fees and expenses incurred in connection with a successful Action).

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"***Material Adverse Effect***" means any change, circumstance, fact, event, occurrence, development or effect that has occurred that (x) is to the business or results of operations of the Company, taken as a whole, or (y) prevents or materially delays or impairs the ability of the Seller or the Company to carry out their respective obligations under this Agreement or the consummation by the Seller or the Company of the transactions contemplated by this Agreement in accordance with the terms hereof; <u>provided</u>, <u>however</u> that in the case of clause (x), none of the following shall be deemed, either alone or in combination, to constitute, and none of the following, nor any change, circumstance, fact, event, occurrence, development or effect arising out of, relating to, based upon, in connection with or resulting from any of the following, shall be taken into account in any respect in determining whether there has been, will be, would or could be, or could or would reasonably be expected to have or result in, a Material Adverse Effect: (i) changes in conditions in the U.S. or global economy or capital or financial markets generally, including changes in interest or exchange rates or any governmental shutdown or slowdown, (ii) changes in general legal, tax, regulatory, political or business conditions, including changes in GAAP or applicable law that, in each case, generally affect the geographic regions or industries in which the Company conducts its business, (iii) the escalation, spread or reemergence of any actual or threatened epidemic, pandemic or infectious disease outbreak in the United States or elsewhere in the world (including COVID-19), any global health conditions, and any changes in applicable Laws by any Governmental Authority newly enacted for, relating to or arising out of efforts to address any epidemic or pandemic spread of an infectious disease in the United States or elsewhere in the world (including COVID-19), including any quarantine or similar directive and the COVID-19 measures and the effects of any of the foregoing, (iv) the negotiation, execution, announcement, pendency or performance the transactions contemplated hereby or the consummation of such transactions, including the impact thereof on relationships, contractual or otherwise, between the Company, the Purchaser, or any of their respective Affiliates and tenants, suppliers, vendors, Governmental Authorities, lenders, financing sources, investors, venture partners, customers or employees, (v) acts of war, armed hostilities, sabotage or terrorism (including cyber terrorism and cyber-attacks), or any escalation or worsening of any such acts of war, armed hostilities, sabotage or terrorism threatened or underway as of the Closing Date, in each case, whether or not pursuant to the declaration of a national emergency or war, or earthquakes, hurricanes, floods, or other natural disasters or man-made disasters, "acts of God" or other force majeure events, (vi) any action taken by the Company required by, or the failure to take any action prohibited by, any Transaction Document or at the request or with the consent of any of the Purchaser or any of its Affiliates, (vii) any failure to meet revenue or earnings projections or predictions, whether such projections or predictions were made by the Company or independent third parties (it being understood that the underlying causes of such failure, may, if they are not otherwise excluded from the definition of Material Adverse Effect, be taken into account in determining whether a Material Adverse Effect has occurred) or (viii) the identity of the Purchaser or any of its Affiliates; <u>provided</u>, <u>further</u>, <u>however</u>, that none of the matters described in clauses (i) through (iii) and (v) has had a disproportionate effect on the Company compared to other participants in the industries in which the Company conducts the Business.

"***Material Contracts***" has the meaning set forth in <u>Section 3.11(a)</u>.

"***Material Permits***" has the meaning set forth in <u>Section 3.6</u>.

"***Net Working Capital***" means the difference (whether positive or negative) of (a) the current assets of the Company as of the Closing Date using only the line items set forth on <u>Exhibit J</u> and (b) the current liabilities of the Company as of the Closing Date using only the line items set forth on <u>Exhibit J</u> (excluding, for the avoidance of doubt, Cash, Company Transaction Expenses and Indebtedness), in each case, calculated in accordance with the Accounting Principles and the Sample Statement and taking into account any Transaction Tax Deductions available to the Company in

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accordance with <u>Section 10.2(e)</u>. An example (the "***Sample Statement***") of the calculation of Net Working Capital is attached to <u>Exhibit J</u>, which example reflects the Net Working Capital of the Company as if Closing occurred on June 30, 2025.

"***Neutral Auditor***" means Grant Thornton or such other internationally recognized accounting firm mutually agreed upon by the Purchaser and the Seller; <u>provided</u>, <u>however</u>, that the Neutral Auditor may not have had in the prior three years prior to the date of engagement, a material business relationship with any party to this Agreement or such party's Affiliates.

"***Non-Recourse Party***" means, with respect to a party, any of such party's former, current and future equity holders, controlling Persons, directors, officers, employees, agents, representatives, Affiliates, members, managers, general or limited partners, or assignees (or any former, current or future equity holder, controlling Person, director, officer, employee, agent, representative, Affiliate, member, manager, general or limited partner, or assignee of any of the foregoing).

"***Notices***" has the meaning set forth in <u>Section 15</u>.

"***Notice Period***" has the meaning set forth in <u>Section 9.2(b)(i)(A)</u>.

"***Order***" means any order, decree, ruling, judgment, injunction or writ of any Governmental Authority.

"***Ordinary Course of Business***" means an action taken by a Person that is consistent with the past practices of such Person and is taken in the ordinary course of operations of such Person.

"***Permits***" means all permits, consents, approvals, registrations or authorizations of, any Governmental Authority, required for the Company to own its assets or conduct its business as conducted as of the Closing Date.

"***Permitted Liens***" means (a) Liens for Taxes, assessments and other governmental levies, fees or changes not yet due and payable or which the taxpayer is contesting, (b) cashiers', landlords', mechanics, materialmen's carriers', workmen's, repairment's, contractors' and warehousemen's Liens and similar statutory Liens incurred in the Ordinary Course of Business or the amounts or validity of which are not yet delinquent or which are being contested by appropriate proceedings, (c) Liens arising under worker's compensation, unemployment insurance, social security, retirement and similar legislation, (d) Liens imposed by the Purchaser, (e) any Liens reflected in the Financial Statements, and (f) solely with respect to the Leased Premises, (i) easements, rights of way, restrictive covenants, encroachments and similar encumbrances, impediments, irregularities or defects against title to any of the Leased Premises which do not, individually or in the aggregate, reasonably be expected to be material to the Company, taken as a whole, (ii) applicable zoning laws and regulations, building codes, land use restrictions and other similar restrictions affecting the Leased Premises (but excluding any violations thereof), (iii) the terms, conditions and provisions of the Leases pursuant to which such Leased Premises are leased, (iv) any Liens or other matter affecting title to the fee estate underlying such Leased Premises, and (v) Liens in favor of the lessors, sublessors or licensors under the Leases or encumbering the interests of such lessors sublessors or licensors (or other holders of superior interests).

"***Person***" means any individual, partnership, joint venture, corporation, trust, unincorporated organization, limited liability company, group, Governmental Authority, and any other person or entity.

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"***Personal Information***" means any information that constitutes "personal data," "personally identifiable information," "personal information" or any similar term under applicable Privacy and Security Laws.

"***Personal Property***" means all of the machinery, equipment, tools, vehicles, furniture, leasehold improvements, office equipment, plant, spare parts and other tangible personal property which are owned, used or leased by the Company and used in the conduct of the Business or the operations of any business of the Company.

"***Pre-Closing Tax Period(s)***" means any Tax period ending on or before the Closing Date and the portion of any Straddle Tax Period that ends on the Closing Date.

"***Privacy and Security Laws***" means all Laws concerning the privacy and/or security of Personal Information, and all regulations promulgated thereunder applicable to the Company.

"***Privacy Requirements***" means (i) applicable Privacy and Security Laws, (ii) appliable public-facing privacy policies, and (iii) binding industry standards and contractual obligations applicable to the Company that regulate the processing of Personal Information.

"***Purchase Price***" has the meaning set forth in <u>Section 1.1</u>.

"***Purchaser***" has the meaning set forth in the preamble of this Agreement.

"***Purchaser Indemnified Persons***" has the meaning set forth in <u>Section 9.2(a)</u>.

"***Purchaser Material Adverse Effect***" means any change, circumstance, fact, event, occurrence, development or effect that has occurred and is still continuing as of the relevant time of determination that is materially adverse to the ability of the Purchaser to consummate the transactions contemplated hereby in accordance with the terms hereof.

"***R&W Insurance Expenses***" means all costs and expenses related to the R&W Insurance Policy, including the total premium, underwriting costs, brokerage commission, Taxes related to such policy and other fees and expenses of such policy.

"***R&W Insurance Policy***" means the insurance policy issued to Purchaser by Balance Partners, LLC, policy number ATRW-000041 attached hereto as <u>Exhibit A</u>.

"***Refund***" has the meaning set forth in <u>Section 10.2(g)</u>.

"***Registered Company IP***" has the meaning set forth in <u>Section 3.10(a)</u>.

"***Regulations***" means the United States treasury regulations promulgated under the Code.

"***Representative***" means, as to any Person, such Person's Affiliates and its and their directors, managers, officers, employees, agents, advisors (including financial advisors, counsel and accountants), and direct and indirect controlling persons.

"***Resolution Period***" has the meaning set forth in <u>Section 1.4(a)(ii)</u>.

"***Restricted Employee***" has the meaning set forth in <u>Section 5.9(c)</u>.

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"***Restricted Period***" has the meaning set forth in <u>Section 5.9(a)</u>.

"***Sample Statement***" has the meaning set forth in the definition of "Net Working Capital".

"***Sections***" means the sections in this Agreement.

"***Securities Act***" means the Securities Act of 1933, as amended, modified, or supplemented otherwise from time to time thereto.

"***Seller***" has the meaning set forth in the preamble of this Agreement.

"***Seller Guaranty***" has the meaning set forth in <u>Section 5.13(a)</u>.

"***Seller Indemnified Persons***" has the meaning set forth in <u>Section 5.2(a)</u>.

"***Seller Names***" has the meaning set forth in <u>Section 5.5(a)</u>.

"***Seller Occurrence-Based Insurance Policies***" has the meaning set forth in <u>Section 5.6(b)</u>.

"***Service Credits***" has the meaning set forth in <u>Section 5.2(b)</u>.

"***Shared Contracts***" has the meaning set forth in <u>Section 5.12(a)</u>.

"***Shared Contract Consents***" has the meaning set forth in <u>Section 5.12(a)</u>.

"***Straddle Tax Periods***" has the meaning set forth in <u>Section 10.2(a)</u>.

"***Sublessor***" has the meaning set forth in <u>Section 5.10</u>.

"***Subsidiary***" means, with respect to any Person, any partnership, limited liability company, corporation or other business entity of which (i) if a corporation, a majority of the total voting power of shares of capital stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a partnership, limited liability company or other business entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof.

"***Target Net Working Capital***" means $[\*\*\*].

"***Tax***" means any federal, state, local or foreign income, gross receipts, franchise, estimated, alternative minimum, add-on minimum, sales, use, transfer, registration, value added, excise, natural resources, severance, stamp, occupation, premium, windfall profit, environmental, customs, duties, real property, personal property, capital stock, social security, unemployment, disability, payroll, license, employee or other withholding, or other tax, of any kind whatsoever, including any interest, penalties or additions to tax or additional amounts in respect of the foregoing.

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"***Tax Return***" means any return, declaration, report, claim for refund, information return or other documents (including any related or supporting schedules, statements or information) required to be filed in connection with the determination, assessment or collection of any Taxes, and any amendments or requested adjustments thereto.

"***Taxing Authority***" means any Governmental Authority with the power to levy or collect Taxes.

"***Territory***" means (a) all locations within the States of New York and Texas; and (b) all counties and parishes within the United States in which the Purchaser or its Affiliates provide products or services to their clients and customers and all locations within fifty (50) miles of such counties and parishes.

"***Third Party Claims***" has the meaning set forth in <u>Section 9.2(b)(i)(A)</u>.

"***Trade Secrets***" has the meaning set forth in the definition of Intellectual Property.

"***Trademark License Agreement***" has the meaning set forth in <u>Section 5.5(a)</u>.

"***Transaction Documents***" means this Agreement and each agreement, instrument or document attached hereto as an Exhibit and the other agreements, certificates and instruments to be executed by any of the parties hereto in connection with or pursuant to this Agreement.

"***Transaction Tax Deductions***" means, regardless of by whom or when paid, any Tax deductions relating to (i) the Company Transaction Expenses provided that the Company shall make an election under Revenue Procedure 2011-29 to deduct 70% of any Transaction Tax Deductions that are success-based fees as defined in Treasury Regulation Section 1.263(a)-5(f), (ii) repayment of the Indebtedness, including, without limitation, any unamortized deferred financing fees and any other fees, expenses, or interest in connection with the Indebtedness, and (iii) any costs, fees, expenses or other liabilities included in the calculation of Net Working Capital.

"***Transfer Taxes***" has the meaning set forth in <u>Section 10.2(f)</u>.

"***Transition Period***" has the meaning set forth in <u>Section 5.2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2<u>Certain Interpretive Matters</u>. In this Agreement, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)words of the masculine or neuter gender will include the masculine, neuter and/or feminine gender, and words in the singular number or in the plural number will each include, as applicable, the singular number or the plural number;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)reference to any Person includes such Person's successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement, and an express reference to a Person in a particular capacity excludes such Person in any other capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)any accounting term used and not otherwise defined in this Agreement or any Transaction Document has the meaning assigned to such term in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"including" (and with correlative meaning "include") means including without limiting the generality of any description preceding or succeeding such term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)reference to any Law means such Law as amended, modified, supplemented, codified or reenacted, in whole or in part, and in effect from time to time, including rules and regulations

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promulgated thereunder and including by succession of comparable successor Laws and references to all attachments thereto and instruments incorporated therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)any Contract referred to herein or in any Contract that is referred to herein means such Contract as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent; <u>provided</u>, that any such amendment, waiver or supplement does not violate the terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)except as otherwise indicated, all references in this Agreement to the words "Section," "Schedule" and "Exhibit" are intended to refer to Sections, Disclosure Schedules or other Schedules and Exhibits to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)unless the context otherwise requires, the words "hereof," "hereby" and "herein" and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)unless the context otherwise requires, the term "party" when used in this Agreement means a party to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)except when used together with the word "either" or otherwise for the purpose of identifying mutually exclusive alternatives, the term "or" has the inclusive meaning represented by the phrase "and/or";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)the word "extent" in the phrase "to the extent" shall mean the degree to which a subject or other theory extends, and such phrase shall not mean "if."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)all references to any period of days shall be deemed to be to the relevant number of calendar days unless otherwise specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)all references to any time herein shall refer to Eastern Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)when calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded and if the last day of such period is not a Business Day, the period shall end at the close of business on the next succeeding Business Day; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)all references in this Agreement to "dollars" or "$" mean United States dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3<u>Construction</u>. The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party irrespective of which party caused such provisions to be drafted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.4&nbsp;&nbsp;&nbsp;&nbsp;<u>No Waiver Relating to Claims for Fraud</u>. None of the provisions set forth in this Agreement, including <u>Section 4.7</u> and <u>Section 4.9</u> and the provisions set forth in <u>Article 9</u>, will be deemed a waiver by any party of any right or remedy which such party may have at law or equity based on any other party's acts or omissions constituting Fraud, nor will any such provisions limit, or be deemed to limit, (a) the amounts of recovery sought or awarded in any such claim for Fraud or (b) the recourse which any such party may seek against another party with respect to a claim for Fraud; *provided*, that with respect to such rights and remedies at law or equity, the parties further acknowledge and agree that none of the provisions of this <u>Section 25.4</u>, nor any reference to this <u>Section 25.4</u> throughout this Agreement, will be deemed a waiver of any defenses which may be available in respect of actions or claims for Fraud, including defenses of statutes of limitations or limitations of damages.

{Signature pages follow.}

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

**PURCHASER:**

PMG Holdings, Inc.

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ John J. Carona&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: John J. Carona<br>Title: Chief Executive Officer

**COMPANY:**

Residential Management Group, LLC

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ John Janangelo&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: John Janangelo<br>Title: Executive Managing Director

**SELLER:**

Douglas Elliman Realty, LLC

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Michael Liebowitz&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Michael Liebowitz<br>Title: Manager

&nbsp;&nbsp;&nbsp;&nbsp;

*Signature Page to Equity Purchase Agreement*

## Exhibit 31.1

EXHIBIT 31.1

**<u>RULE 13a-14(a)/15d-14(a) CERTIFICATION OF CHIEF EXECUTIVE OFFICER</u>**

I, Michael S. Liebowitz, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Douglas Elliman Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 5, 2025

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| |
|:---|
| /s/ Michael S. Liebowitz |
| &nbsp;&nbsp;&nbsp;&nbsp;Michael S. Liebowitz |
| &nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer |

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## Exhibit 31.2

EXHIBIT 31.2

**<u>RULE 13a-14(a)/15d-14(a) CERTIFICATION OF CHIEF FINANCIAL OFFICER</u>**

I, J. Bryant Kirkland III, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Douglas Elliman Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 5, 2025

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| |
|:---|
| /s/ J. Bryant Kirkland III |
| &nbsp;&nbsp;&nbsp;&nbsp;J. Bryant Kirkland III |
| &nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President, Treasurer and Chief Financial Officer |

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## Exhibit 32.1

EXHIBIT 32.1

**SECTION 1350 CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER**

&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Quarterly Report of Douglas Elliman Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael S. Liebowitz, as Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 5, 2025

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| |
|:---|
| /s/ Michael S. Liebowitz |
| &nbsp;&nbsp;&nbsp;&nbsp;Michael S. Liebowitz |
| &nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer |

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In connection with the Quarterly Report of Douglas Elliman Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, J. Bryant Kirkland III, as Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 5, 2025

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| |
|:---|
| /s/ J. Bryant Kirkland III |
| &nbsp;&nbsp;&nbsp;&nbsp;J. Bryant Kirkland III |
| &nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President, Treasurer and Chief Financial Officer |

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