# EDGAR Filing Document

**Accession Number:** 0001766526
**File Stem:** 0001185185-25-002146
**Filing Date:** 2025-12
**Character Count:** 424317
**Document Hash:** 49846bbcfc1338cf388b0a3af8436209
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001185185-25-002146.hdr.sgml**: 20251219

**ACCESSION NUMBER**: 0001185185-25-002146

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 18

**CONFORMED PERIOD OF REPORT**: 20251219

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251219

**DATE AS OF CHANGE**: 20251219

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Tectonic Financial, Inc.
- **CENTRAL INDEX KEY:** 0001766526
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 820764846
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38910
- **FILM NUMBER:** 251588398

**BUSINESS ADDRESS:**
- **STREET 1:** 16200 DALLAS PARKWAY, SUITE 190
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75248
- **BUSINESS PHONE:** 972-720-9000

**MAIL ADDRESS:**
- **STREET 1:** 16200 DALLAS PARKWAY, SUITE 190
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75248

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** T Acquisition, Inc.
- **DATE OF NAME CHANGE:** 20190131

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): December 19, 2025 (December 19, 2025)**

**Tectonic Financial, Inc** **. (Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Texas** | **001-38910** | **82-0764846** |
| **(State or other jurisdiction<br> of incorporation)** | **(Commission File Number)** | **(IRS Employer<br> Identification No.)** |

---

**16200 Dallas Parkway, Suite 190** 

**Dallas, Texas 75248**

**(Address of principal executive offices) (Zip Code)**

**(972) 720-9000**

**(Registrant's telephone number, including area code)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange on which registered** |
| Series B preferred stock, par value $0.01 per share | TECTP | The NASDAQ Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

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. ☐

**Item 1.01 Entry Into a Material Definitive Agreement**

On December 19, 2025, Tectonic Financial, Inc. (the "Company") entered into a Separation Agreement and Plan of Distribution (the "Separation Agreement") with Tectonic Advisors, LLC, a Texas limited liability company and wholly owned subsidiary of the Company ("Spinco"), and certain equity owners (the "TA Continuing Shareholders") of Cain Watters & Associates, LLC ("Cain Watters"). Cain Watters also joined in the Separation Agreement.

 

*The Separation Agreement*

The Separation Agreement provides for a series of transactions pursuant to which, among other things, the Company will separate the business, operations, assets and liabilities of Spinco (the "Spinco Business") from the Company's organizational structure and transfer the Spinco Business to Spinco, subject to the terms and conditions set forth in the Separation Agreement (the "Separation"). After the Separation, the Company will distribute all of the equity interests of Spinco to the TA Continuing Shareholders, subject to the terms and conditions set forth in the Separation Agreement (the "Distribution").

Pursuant to the Separation Agreement and in connection with the Distribution, the Company will distribute 100% of the membership interests in Spinco to the TA Continuing Shareholders in exchange for (i) 1.53 million shares of common stock of the Company, par value $0.01 per share (representing 22.25% of the fully diluted issued and outstanding shares of common stock of the Company as of the date hereof), currently owned by the TA Continuing Shareholders, and (ii) a promissory note issued by Spinco and payable to the Company in the amount of $35 million (the "Promissory Note"), which shall be unconditionally guaranteed by Cain Watters.

In accordance with the terms of the Separation Agreement, Spinco will refinance the Promissory Note immediately following the Distribution pursuant to a binding commitment from a third-party commercial bank. Proceeds from such refinancing will be used by Spinco to payoff the Promissory Note with the Company. The Company intends to use the proceeds from such payoff for general corporate purposes, which may include the repayment of all or a portion of its $12 million in principal of subordinated debt, the redemption of all or a portion of its $17.25 million in outstanding Series B Noncumulative Perpetual Preferred Stock, and the repurchase of shares of the Company's common stock. Any such repayment and/or redemption shall be subject to approval by the Company's board of directors and regulatory approval, as applicable.

Consummation of the transactions contemplated by the Separation Agreement, including the Distribution, are subject to various conditions, including, among other things, (1) the Company's receipt of a tax opinion from Hunton Andrews Kurth LLP, (2) compliance with laws and material agreements binding upon the parties, (3) the completion of all required securities filings, (4) the receipt of necessary consents and approvals, (5) the absence of legal restraints to consummate the transactions, (6) no event shall have occurred which, in the judgment of the Company's board of directors, would make it inadvisable to consummate the transactions, and (7) the execution and delivery of certain ancillary agreements and amendments.

In addition to the foregoing, the Separation Agreement also contains numerous other provisions relating to certain ongoing relationships among the parties, including indemnification, freedom to compete, sharing of information, treatment of nonpublic information, human resources, information technology, corporate records and dispute resolution.

The Separation and Distribution are intended to be tax-free to the Company and the TA Continuing Shareholders for U.S. federal income tax purposes, except for the cash proceeds received by the Company from the payoff of the Promissory Note.

The foregoing summary of the Separation Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Separation Agreement, which is filed as Exhibit 2.1 to this Form 8-K and is incorporated herein by reference.

In connection with the Distribution, the Company and Spinco have also entered into certain ancillary agreements, including a Tax Matters Agreement, Transition Services Agreement, and amendments to various intercompany service arrangements.

 

 

*Tax Matters Agreement*

On December 19, 2025, the Company entered into a Tax Matters Agreement (the "Tax Matters Agreement") with Spinco that governs the Company's and Spinco's respective rights, responsibilities, and obligations after the consummation of the transactions contemplated by the Separation Agreement with respect to taxes. The foregoing summary of the Tax Matters Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Tax Matters Agreement, which is filed as Exhibit 10.1 to this Form 8-K and is incorporated herein by reference.

*Transition Services Agreement*

On December 19, 2025, the Company entered into a Transition Services Agreement ("Transition Services Agreement") with Spinco pursuant to which the Company and Spinco agree to provide various services to the other party after the consummation of the transactions contemplated by the Separation Agreement, including services relating to human resources and the professional employer organization, technology, custom software and application support, financials, and compliance services. The foregoing summary of the Transition Services Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Transition Services Agreement, which is filed as Exhibit 10.2 to this Form 8-K and is incorporated herein by reference.

<u>Second Amendment to Support Services Agreement</u>

In connection with the transactions contemplated by the Separation Agreement, on December 19, 2025, Cain Watters and Spinco entered into a Second Amendment to Support Services Agreement (the "Second Amendment"), pursuant to which the Company was made a third-party beneficiary solely with respect to Section 5 of such Second Amendment. The Second Amendment, which only becomes effective upon the consummation of the Distribution, further amends the Support Services Agreement, dated February 5, 2015, as amended, by and between Spinco and Cain Watters, to, among other things, remove references to A. Haag Sherman from such Support Services Agreement and provide that the transactions contemplated by the Separation Agreement do not constitute a "change of control" of Spinco, as defined in the Support Services Agreement. A copy of the Second Amendment is attached hereto as Exhibit 10.3 and is incorporated herein by reference.

Third Amendment to Cain Watters – T Bank Agreement

In connection with the transactions contemplated by the Separation Agreement, on December 19, 2025, Cain Watters and T Bank, N.A. ("T Bank") entered into a Third Amendment to the Agreement (the "Third Amendment to CWA – T Bank Agreement"). The Third Amendment to CWA – T Bank Agreement, which only becomes effective upon the consummation of the Distribution, further amends the Agreement dated as of August 23, 2013 (the "CWA – T Bank Agreement"), by and between CWA and T Bank to, among other things, provide for a five year term with automatic one-year renewals thereafter, remove the automatic termination trigger upon the termination of the Investment Advisory Agreement (as defined in the CWA – T Bank Agreement) and to provide T Bank with continued access to certain systems, tools, and support resources, solely for the purpose of enabling T Bank to provide trust, recordkeeping, client service, and related administrative services to Cain Watters and its clients. A copy of the Third Amendment to CWA – T Bank Agreement is attached hereto as Exhibit 10.4 and is incorporated herein by reference.

Fourth Amendment to Amended and Restated Investment Advisory Agreement

In connection with the transactions contemplated by the Separation Agreement, on December 19, 2025, Spinco and T Bank entered into a Fourth Amendment to Amended and Restated Investment Advisory Agreement (the "Fourth Amendment to Investment Advisory Agreement"). The Fourth Amendment to Investment Advisory Agreement, which only becomes effective upon the consummation of the Distribution, further amends the Investment Advisory Agreement, dated as of April 27, 2006 (the "Investment Advisory Agreement"), by and between Spinco and T Bank to, among other things, provide that the transactions contemplated by the Separation Agreement do not constitute a "Change of Control," an "assignment" (each as defined in the Investment Advisory Agreement), or any other event giving rise to any termination right under Section 11.02(h) of the Investment Advisory Agreement or any related provision thereof. A copy of the Third Amendment to CWA – T Bank Agreement is attached hereto as Exhibit 10.5 and is incorporated herein by reference.

The above descriptions of the Separation Agreement, the Tax Matters Agreement, the Transition Services Agreement, the Second Amendment to Support Services Agreement, the Third Amendment to Cain Watters – T Bank Agreement and the Fourth Amendment to the Amended and Restated Investment Advisory Agreement have been included, to provide investors and shareholders with information regarding the terms of such agreements. They are not intended to provide any other factual information about the Company or the other parties thereto, or their respective subsidiaries or affiliates. Certain of the agreements contain representations and warranties of the parties as of specific dates. The assertions embodied in those representations and warranties were made solely for purposes of the contract between the parties to such agreement and may be subject to important qualifications and limitations agreed by the parties in connection with negotiating the terms of such agreement. Moreover, some of those representations and warranties may not be accurate or complete as of any specified date, may be subject to a contractual standard of materiality different from those generally applicable to shareholders, or may have been used for the purpose of allocating risk between the parties rather than establishing matters as facts. For the foregoing reasons, such representations and warranties should not be relied upon as statements of factual information.

**Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers**

In connection with the Distribution, Steven B. Clapp and Thomas Sanders, both of whom are directors of the Company, equity owners of Cain Watters, and TA Continuing Shareholders, abstained from the vote of the Board of Directors to approve the Separation Agreement and the transactions contemplated thereby. Each of Mr. Clapp and Mr. Sanders has notified the Board of Directors of his intention to resign from the Board of Directors of the Company, T Bancshares, Inc., T Bank, N.A. and any and all positions with any of the foregoing or subsidiaries thereof effective immediately following the closing of the Distribution. There are no disagreements between such directors and the Company, T Bancshares, Inc. or T Bank, N.A. on any matter relating to the operations, policies, or practices of the Company, T Bancshares, Inc., or T Bank, N.A. (as the case may be).

**Item 8.01 Other Events**

In connection with the Separation and Distribution, the Company has established a new wholly-owned registered investment adviser subsidiary, Tectonic Capital Advisors, LLC ("TAC"). TAC is registered with the U.S. Securities and Exchange Commission and will provide portfolio management and related advisory services and family office following the consummation of the transactions contemplated by the Separation Agreement.

**Item 9.01 Financial Statements and Exhibits**

**(d) Exhibits:**

---

| | |
|:---|:---|
| 2.1 | [Separation and Distribution Agreement dated December 19, 2025 (Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, for any document so furnished.)](tectpex2-1.htm) |
| 10.1 | [Tax Matters Agreement (Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, for any document so furnished.)](tectpex10-1.htm) |
| 10.2 | [Transition Services Agreement (Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, for any document so furnished.)](tectpex10-2.htm) |
| 10.3 | [Second Amendment to Support Services Agreement by and between Cain Watters & Associates, LLC and Tectonic Advisors, LLC, dated December 19, 2025](tectpex10-3.htm) |
| 10.4 | [Third Amendment to the Agreement by and between T Bank, N.A. and Cain Watters & Associates, LLC, dated December 19, 2025 (Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, for any document so furnished.)](tectpex10-4.htm) |
| 10.5 | [Fourth Amendment to the Amended and Restated Investment Advisory Agreement by and between T Bank, N.A. and Tectonic Advisors, LLC, dated December 19, 2025](tectpex10-5.htm) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: December 19, 2025 | **TECTONIC FINANCIAL, INC.** | **TECTONIC FINANCIAL, INC.** |
|  | By: | /s/ A. Haag Sherman |
|  | Name: | A. Haag Sherman |
|  | Title: | Chief Executive Officer |

---

## Exhibit 2.1

**Exhibit 2.1**

**Separation Agreement and Plan of Distribution**

between:

**Tectonic Financial, Inc.,<br> a Texas corporation**

and

**Tectonic Advisors, LLC,**

a Texas limited liability company

Dated as of December 19, 2025

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE 1 DEFINITIONS | ARTICLE 1 DEFINITIONS | 2 |
| 1.1 | Definitions | 2 |
| ARTICLE 2 REORGANIZATION; CONVEYANCE OF CERTAIN ASSETS; ASSUMPTION OF CERTAIN LIABILITIES; CERTAIN PAYMENTS; AND TRANSITION ARRANGEMENTS | ARTICLE 2 REORGANIZATION; CONVEYANCE OF CERTAIN ASSETS; ASSUMPTION OF CERTAIN LIABILITIES; CERTAIN PAYMENTS; AND TRANSITION ARRANGEMENTS | 10 |
| 2.1 | Reorganization | 10 |
| 2.2 | Conveyance of Assets; Discharge of Liabilities | 10 |
| 2.3 | Ancillary Agreements | 11 |
| 2.4 | Spinco Financing | 11 |
| 2.5 | Surrender of Parent Common Stock | 11 |
| 2.6 | Resignations | 12 |
| 2.7 | Limitation of Liability | 12 |
| 2.8 | Novation of Liabilities; Consents | 13 |
| ARTICLE 3 THE DISTRIBUTION | ARTICLE 3 THE DISTRIBUTION | 14 |
| 3.1 | Cooperation Prior to the Distribution | 14 |
| 3.2 | Conditions Precedent to the Distribution | 14 |
| 3.3 | The Distribution | 15 |
| ARTICLE 4 COVENANTS | ARTICLE 4 COVENANTS | 16 |
| 4.1 | Bank Accounts | 16 |
| 4.2 | Insurance | 16 |
| 4.3 | Freedom to Compete; No Hire; No Solicit | 17 |
| 4.4 | Auditors and Audits; Annual and Quarterly Financial Statements and Accounting | 17 |
| 4.5 | Right of Offset | 18 |
| 4.6 | Reserved | 18 |
| 4.7 | Human Resources; Professional Employer Organization | 18 |
| 4.8 | Information Technology and Data Systems | 19 |
| 4.9 | Occupancy | 19 |

---

i

---

| | | |
|:---|:---|:---|
| ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF PARENT AND SPINCO | ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF PARENT AND SPINCO | 20 |
| 5.1 | Due Organization, Good Standing and Corporate Power | 20 |
| 5.2 | Title to Spinco Interests; Capitalization | 20 |
| 5.3 | Authority and Enforceability | 20 |
| 5.4 | TA Continuing Shareholder Ownership | 21 |
| 5.5 | No Defaults or Conflicts | 21 |
| 5.6 | Consents | 21 |
| 5.7 | Financial Statements | 21 |
| 5.8 | Undisclosed Liabilities | 21 |
| 5.9 | Absence of Certain Changes or Events | 22 |
| 5.10 | Litigation; Orders | 23 |
| 5.11 | Compliance with Law | 24 |
| 5.12 | Permits; Licenses | 24 |
| 5.13 | Title to Assets | 24 |
| 5.14 | Material Contracts | 24 |
| 5.15 | Employee Benefits | 25 |
| 5.16 | Reserved | 26 |
| 5.17 | Real Property | 26 |
| 5.18 | Insurance | 26 |
| 5.19 | Bank Accounts | 27 |
| 5.20 | Transactions with Affiliates, Stockholders, Officers, Directors and Others | 27 |
| ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF TA CONTINUING SHAREHOLDERS | ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF TA CONTINUING SHAREHOLDERS | 27 |
| 6.1 | Organization; Status | 27 |
| 6.2 | Authority and Enforceability | 27 |
| 6.3 | Ownership of Parent Common Stock; Exchange | 27 |
| 6.4 | No Conflicts; Consents | 27 |
| 6.5 | Investment Intent; Sophistication | 27 |
| 6.6 | Proceedings | 28 |
| 6.7 | Reliance Disclaimer | 28 |
| 6.8 | Appointment of Representative | 28 |

---

ii

---

| | | |
|:---|:---|:---|
| ARTICLE 7 INDEMNIFICATION | ARTICLE 7 INDEMNIFICATION | 28.0 |
| 7.1 | Spinco Indemnification of the Parent Group | 28.0 |
| 7.2 | Parent Indemnification of Spinco | 28.0 |
| 7.3 | Contribution | 28.0 |
| 7.4 | Insurance and Third Party Obligations | 28.0 |
| 7.5 | Indemnification Obligations Net of Insurance Proceeds and Other Amounts on a Net Tax Benefit Basis | 29.0 |
| 7.6 | Notice and Payment of Claims | 29.0 |
| 7.7 | Notice and Defense of Third Party Claims | 29.0 |
| 7.8 | Limitations on Indemnification | 30.0 |
| ARTICLE 8 ACCOUNTING MATTERS; TRANSITION SERVICES | ARTICLE 8 ACCOUNTING MATTERS; TRANSITION SERVICES | 31.0 |
| 8.1 | Intercompany Accounts | 31.0 |
| 8.2 | Transition Services Agreement | 31.0 |
| ARTICLE 9 CONFIDENTIALITY; PRIVILEGE | ARTICLE 9 CONFIDENTIALITY; PRIVILEGE | 31.0 |
| 9.1 | Confidentiality | 31.0 |
| 9.2 | Privileged Matters | 32.0 |
| 9.3 | Ownership of Information | 33.0 |
| 9.4 | Separation of Data | 33.0 |

---

---

| | | |
|:---|:---|:---|
| ARTICLE 10 MISCELLANEOUS | ARTICLE 10 MISCELLANEOUS | 33.0 |
| 10.1 | Expenses | 33.0 |
| 10.2 | Notices | 34.0 |
| 10.3 | Amendment and Waiver | 35.0 |
| 10.4 | Entire Agreement | 35.0 |
| 10.5 | Consolidation, Merger, Etc.; Parties in Interest; Termination | 35.0 |
| 10.6 | Further Assurances and Consents | 35.0 |
| 10.7 | Severability | 36.0 |
| 10.8 | Governing Law | 36.0 |
| 10.9 | Counterparts | 36.0 |
| 10.10 | Third Party Beneficiaries | 36.0 |

---

iii

10.11 Specific Performance 36

10.12 Limitations of Liability 36

10.13 Force Majeure 36

10.14 Construction 37

10.15 Disputes. 37

Exhibit A – Confidential Disclosure Memorandum

Exhibit B – Tax Matters Agreement

Exhibit C - Transition Services Agreement

Exhibit D – Financing Commitment Letter

Exhibit E – Amendment to Support Services Agreement

Exhibit F – Amendment to T Bank – Cain Watters Agreement

Confidential Schedules:

Schedule A – TA Continuing Shareholders

Schedule 1.1 (a) – Permitted Liens

Schedule 1.1 (b) - Spinco Contracts

Schedule 1.1 (c) - Spinco Liabilities

Schedule 1.1(d) - Spinco Liabilities related to Indebtedness

Schedule 1.1(e) – Retained Liabilities

Schedule 2.1 - Stock Consideration

Schedule 2.7(b) - Limitation of Liability

Schedule 3.3 - Spinco Interests

Schedule 4.1(a) - Spinco Bank Accounts

Schedule 4.3(b) – Restricted Employees

Schedule 5.7 – Spinco Financial Statements

Schedule 5.8 – Undisclosed Liabilities

Schedule 5.13 – Title to Assets

Schedule 5.14(a) – Material Contracts

Schedule 5.15 – Employee Benefits

Schedule 5.18 – Insurance

Schedule 5.19 – Bank Accounts

Schedule 5.20 – Transactions with Affiliates

Schedule 8.2 – Intercompany Accounts

Schedule 10.1 – Expenses

iv

**<u>SEPARATION AGREEMENT AND PLAN OF DISTRIBUTION</u>**

THIS SEPARATION AGREEMENT AND PLAN OF DISTRIBUTION (this "***Agreement***"), dated as of December 19, 2025, is by and between Tectonic Financial, Inc., a Texas corporation ("***Parent***"), and Tectonic Advisors, LLC, a Texas limited liability company and wholly owned subsidiary of Parent ("***Spinco*,**" and together with Parent, the "***Parties***", and each individually, a "***Party***"), and joined in by the individuals listed on <u>Schedule A</u> (the "***TA Continuing Shareholders***").

**<u>RECITALS</u>**

WHEREAS, Parent, acting through itself and its Subsidiaries, currently conducts the Parent Business and the Spinco Business;

WHEREAS, the Board of Directors of Parent has determined that it is in the best interests of Parent and its shareholders to separate Spinco and the Spinco Business from Parent's organizational structure, as more fully described in this Agreement and the Ancillary Agreements (the "***Separation***"), and to distribute to the TA Continuing Shareholders 100% of the outstanding Spinco Interests, all as more fully described in this Agreement and the Ancillary Agreements (the "***Distribution***");

WHEREAS, before the Effective Time, the Parties shall cause the transfer of certain Spinco Assets to Spinco and shall cause Spinco to assume the Spinco Liabilities, which certain assets and liabilities are not currently held by Spinco, all as more fully described in this Agreement and the Ancillary Agreements;

WHEREAS, before the Effective Time, Parent shall cause SpinCo to elect to be treated for U.S. federal income tax purposes (and state and local tax purposes) as an association taxable as a corporation, which election is intended to be treated as a deemed contribution by Parent of all of the assets of SpinCo to a new corporation in exchange for all of the stock of SpinCo (the "***Contribution***");

WHEREAS, before the Effective Time, (a) Spinco shall issue a promissory note to the Parent in the principal amount of $35 million ("***Spinco Promissory Note***"), which shall be unconditionally guaranteed by Cain Watters & Associates, LLC (the "***CWA Guarantee***" and together with the Spinco Promissory Note, the "***Spinco Note Documents***");

WHEREAS, on or before the date hereof, Spinco shall obtain a binding financing commitment from a third-party bank which shall provide Spinco with sufficient proceeds to pay off the Spinco Promissory Note in its entirety immediately after the Distribution ("***Financing Commitment***");

WHEREAS, before the Effective Time, Spinco shall distribute Spinco Cash and the Spinco Accounts Receivable to Parent;

WHEREAS, for U.S. federal income tax purposes, it is intended that (a) the Contribution and the Distribution, taken together, qualify as a "reorganization" under Section 368(a)(1)(D) of the Code and (b) the Contribution and the Distribution, taken together, qualify as a distribution of the Spinco Interests to the TA Continuing Shareholders under Section 355(a) of the Code;

WHEREAS, this Agreement is intended to be, and is hereby adopted as, a "plan of reorganization" within the meaning of Treas. Reg. § 1.368-2(g); and

WHEREAS, the parties hereto have determined to set forth herein the principal corporate and other transactions required to effect the Distribution and to set forth herein certain other agreements that will govern other matters prior to and following the Distribution.

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, the parties hereby agree as follows:

**ARTICLE 1<u><br> DEFINITIONS</u>**

**1.1 Definitions**. As used herein, the following terms have the meanings set forth below:

"***Action***" means any Claim, suit, arbitration, inquiry, proceeding, or investigation by or before any court, governmental or other regulatory or administrative agency or commission or any other tribunal.

"***Affiliate***" means, when used with respect to a specified Person, a Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with such specified Person. For the purposes of this definition, "Control", when used with respect to any specified Person, shall mean 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 or other interests, by contract or otherwise.

"***Ancillary Agreements***" means all of the written agreements, instruments, understandings, assignments and other arrangements (other than this Agreement) entered into in connection with the transactions contemplated hereby, including, without limitation, the Tax Matters Agreement, the Transition Services Agreement and other documents relating to the transfer of assets and liabilities in contemplation of the Distribution.

"***Assets***" means all properties, rights, contracts, leases and Claims, of every kind and description, wherever located, whether tangible or intangible, and whether real, personal or mixed.

"***Benefit Plan***" has the meaning set forth in <u>Section 5.15(a)</u>.

"***Cain Watters***" means Cain Watters & Associates, LLC.

"***Claim***" means any written demand, claim or complaint by any Person alleging actual or potential liability, obligation or responsibility.

"***Code***" means the United States Internal Revenue Code of 1986, as amended.

"***Commission***" means Securities and Exchange Commission.

"***Confidential Information***" means all business or operational information concerning a Party and/or its subsidiaries (including (i) earnings reports and forecasts, (ii) macro-economic reports and forecasts, (iii) business and strategic plans, (iv) general market evaluations and surveys, (v) litigation presentations and risk assessments, (vi) budgets, (vii) financing and credit-related information, (viii) specifications, ideas and concepts for products and services, (ix) quality assurance policies, procedures and specifications, (x) customer information, (xi) Software, (xii) training materials and information, and (xiii) all other know-how, methodology, procedures, techniques and trade secrets related to design, development and operational processes) which, prior to or following the Effective Time, has been disclosed by a Party or its subsidiaries to the other Party or its subsidiaries, in written, oral (including by recording), electronic, or visual form to, or otherwise has come into the possession of, the other (except to the extent that such information can be shown to have been (i) in the public domain through no action of such Party or its subsidiaries, (ii) lawfully acquired from other sources by such Party or its subsidiaries to which it was furnished, or (iii) independently developed by such Party or its subsidiaries; <u>provided</u>, <u>however</u>, in the case of clause (ii) that, to the furnished Party's knowledge, such sources did not provide such information in breach of any confidentiality obligations).

"***Consents***" means all consents, permits or approvals of, or filings or notices to, Governmental Entities and other third parties necessary to consummate the transactions contemplated by the Transaction Documents.

"***Contract***" means, with respect to a particular Person, any written or oral contract, agreement, commitment, note, bond, pledge, lease, mortgage, guaranty, indenture, option, instrument, obligation or commitment that is legally binding on such Person or its property.

"***Control***" means, with respect to a particular Person, 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 (the terms "***Controlled by***" and "***under common Control with***" shall have correlative meanings).

"***CWA Guarantee***" is defined in the recitals to this Agreement.

"***Confidential Disclosure Memorandum***" means the disclosure schedules delivered by Spinco to Parent in connection with the execution and delivery of this Agreement, a copy of which is attached hereto as <u>Exhibit A</u>.

"***Distribution***" is defined in the recitals to this Agreement.

"***Distribution Date***" means the date upon which the Distribution shall be effective, as determined by the Board of Directors of Parent, or such committee of such Board of Directors as shall be designated by the Board of Directors of Parent.

"***Effective Time***" means 12:01 a.m. Central Standard Time on the Distribution Date.

"***Enforceability Exceptions***" means applicable bankruptcy, insolvency, reorganization or other similar Laws relating to or affecting the enforcement of creditors' rights generally and by principles of equity regarding the availability of remedies.

"***Equity Interests***" means, with respect to any Person, any shares of capital stock, limited liability company membership interests or other ownership or profit interests in such Person.

"***Excluded Clients***" has the meaning set forth in the Transition Services Agreement.

"***Financing Commitment***" is defined in the recitals to this Agreement.

"***Force Majeure***" means, with respect to a Party, an event beyond the reasonable Control of such Party (or any Person acting on its behalf), which by its nature could not have been foreseen by such Party (or such Person), or, if it could have been foreseen, was unavoidable, and includes acts of God, storms, floods, earthquakes, hurricanes, riots, epidemics, pandemics, fires, sabotage, strikes, lockouts, civil commotion or civil unrest, interference by civil or military authorities, acts of war (declared or undeclared) or armed hostilities or other national or international calamity or one or more acts of terrorism.

"***Fraud***" means actual common law fraud as defined under Texas law.

"***GAAP***" means generally accepted accounting principles in the United States, applied on a consistent basis throughout the periods involved.

"***Governmental Entity***" means any nation or government, any state, municipality or other political subdivision thereof and any entity, body, agency, commission, department, board, bureau or court, whether domestic, foreign or multinational, exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any official thereof.

"***Group***" means the Parent Group or Spinco, as the context so requires.

"***Indebtedness***" means (i) any indebtedness for borrowed money or the deferred purchase price of property as evidenced by a note, bonds or other instruments, (ii) obligations as lessee under capital leases, (iii) obligations secured by any mortgage, pledge, security interest, encumbrance, lien or charge of any kind existing on any asset owned or held by any Person, whether or not such Person has assumed or becomes liable for the obligations secured thereby, (iv) accounts payable, (v) reimbursement obligations with respect to surety and performance bonds or letters of credit, and (vi) obligations under direct or indirect guarantees of (including obligations, contingent or otherwise, to assure a creditor against Loss in respect of) indebtedness or obligations of the kinds referred to in clauses (i), (ii), (iii), (iv) and (v) above.

"***Indemnifiable Loss***" means any and all damage, Loss, liability, and expense (including, without limitation, reasonable expenses of investigation and reasonable attorneys' fees and expenses) in connection with any and all Actions or threatened Actions.

"***Information***" means information, whether or not patentable or copyrightable, in written, oral, electronic or other tangible or intangible forms, stored in any medium, including studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other software, marketing plans, customer names, communications by or to attorneys (including attorney-client privileged communications), memos and other materials prepared by attorneys or under their direction (including attorney work product), communications and materials otherwise related to or made or prepared in connection with or in preparation for any legal proceeding, and other technical, financial, employee or business information or data.

"***Insurance Proceeds***" means those monies (i) received by an insured from an unaffiliated third-party insurer under any Third Party Policy, or (ii) paid by such third-party insurer on behalf of an insured under any Third Party Policy, in either case net of any applicable premium adjustment, retrospectively-rated premium, deductible, self-insured retentions, or cost of reserve paid or held by or for the benefit of such insured.

"***Intercompany Accounts***" means any receivables, payables or loans between the Parent Group, on the one hand, and Spinco, on the other hand, that exist prior to the Effective Time and is reflected in the Records of the relevant members of the Parent Group and Spinco, except for any such receivables, payables or loans that arise pursuant to this Agreement or any Ancillary Agreement.

"***IRS***" means the United States Internal Revenue Service.

"***Knowledge,***" or words of similar import, means, as to a particular matter, the knowledge of any of A. Haag Sherman, Michelle Baird and David J. Clifford, after due inquiry.

"***Law***" means any United States or non-United States federal, national, supranational, state, provincial, local or similar statute, law, ordinance, regulation, rule, code, Order, requirement or rule of law (including common law).

"***Leased Improvements***" has the meaning set forth in <u>Section 5.17</u>.

"***Leased Real Property***" has the meaning set forth in <u>Section 5.17</u>.

"***Liabilities***" means any and all Claims, debts, liabilities and obligations, absolute or contingent, matured or not matured, liquidated or unliquidated, accrued or unaccrued, known or unknown, whenever arising, including all costs and expenses relating thereto, and including, without limitation, those debts, liabilities and obligations arising under this Agreement or any Ancillary Agreement, any law, rule, regulation, action, Order or consent decree of any governmental entity or any award of any arbitrator of any kind, and those arising under any contract, commitment or undertaking.

"***Liens***" means liens, pledges, charges, security interests, mortgages, easements, servitudes, options, deeds of trust, preemptive rights, voting trust or agreement, restriction on use or transfer or other encumbrances (other than those under applicable federal, state and foreign securities laws).

"***Loss***" or "***Losses***" means actions, demands, suits, assessments, deficiencies, judgments, fines, penalties, losses, damages, Taxes, liabilities, costs, obligations, and out-of-pocket expenses (including interest, penalties, reasonable fees and expenses of counsel, consultants and experts as necessary with respect thereto, and all amounts paid to third parties in investigation, defense or settlement of any of the foregoing).

"***Made Available***" means included in the electronic data room for Project Earthquake hosted by Firmex at least three (3) Business Days prior to the date of this Agreement.

"***Material Contracts***" has the meaning set forth in <u>Section 5.14(b)</u>.

"***Order***" means any award, decision, judgment, order, ruling, writ, pronouncement, decree, determination, subpoena, or verdict entered, issued, made, or rendered by any Governmental Entity.

"***Ordinary Course***" means, when used with reference to Spinco or Parent, the ordinary course of their respective businesses, consistent with past practices.

"***Organizational Documents***" means (a) in the case of a Person that is a corporation, its articles or certificate of formation and its bylaws, regulations or similar governing instruments required by the laws of its jurisdiction of organization; (b) in the case of a Person that is a limited liability company, its articles or certificate of formation or organization, and its limited liability company agreement or operating agreement or regulations; and (c) in the case of a Person that is none of a corporation, limited liability company or natural person, its governing instruments as required or contemplated by the laws of its jurisdiction of organization.

"***Outside Date***" means January 15, 2026 (or such later date as may be designated by Parent in its sole and absolute discretion by written notice to Spinco and the TA Continuing Shareholders).

"***Party***" is defined in the Preamble to this Agreement.

"***Parent***" is defined in the Preamble to this Agreement.

"***Parent Accounts***" is defined in <u>Section 4.1(a)</u>.

"***Parent Asset***" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the capital stock of each member of the Parent Group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as otherwise provided in an Ancillary Agreement, all Assets of any member of the Parent Group or Spinco that are not Spinco Assets.

"***Parent Auditors***" is defined in <u>Section 4.4(a)</u>.

"***Parent Business***" means the business now or formerly conducted by Parent and its present and former subsidiaries, joint ventures and partnerships, other than the Spinco Business.

"***Parent Common Stock***" means the outstanding shares of common stock of Parent, par value $0.01 per share.

"***Parent Group***" means Parent and its subsidiaries, affiliates, joint ventures and partnerships, excluding Spinco.

"***Parent Indemnitees***" is defined in <u>Section 7.1</u>.

"***Parent Liabilities***" means (i) Liabilities of any member of the Parent Group under this Agreement or any Ancillary Agreement, (i) any other Liabilities of Spinco or the Parent Group, whether arising before, at, or after the Effective Time, which do not constitute Spinco Liabilities.

FOR THE AVOIDANCE OF DOUBT, NO LIABILITY SHALL BE A PARENT LIABILITY SOLELY AS A RESULT OF PARENT OR ANY OTHER MEMBER OF THE PARENT GROUP BEING NAMED AS PARTY TO, OR IN, ANY ACTION.

"***Parent PEO Arrangement***" is defined in <u>Section 4.7(a)</u>.

"***Permits***" means, with respect to a particular Person, all licenses, permits, franchises, approvals, authorizations, consents or Orders of, or filings with, any Governmental Entity required to be used in the conduct of such Person's business or the consummation by such Person of the transactions contemplated by the Transaction Documents.

"***Permitted Liens***" means: (a) Liens for Taxes, assessments, charges, levies or other Claims not yet due and payable or being contested in good faith for which adequate reserves have been established in accordance with GAAP; (b) materialmen's, mechanics', landlords', carriers', workmen's and repairmen's Liens arising in the Ordinary Course or for sums not yet due and payable or that are being contested in good faith for which adequate reserves have been established in accordance with GAAP; (c) with respect to the Leased Real Property, (i) statutory, common law and contractual landlord's Liens under any Real Property Lease, (ii) such imperfections or irregularities of title, declarations, covenants, easements, rights-of-way, building or use restrictions, prescriptive rights, protrusions, rights and party walls, conditions, ordinances, charges or encumbrances or similar restrictions existing of record, relating to the Leased Real Property that do not interfere with the present use by Spinco of the Leased Real Property, (iii) zoning, building, entitlement and other land use or Environmental Laws or regulations pertaining to the Leased Real Property that do not interfere with the present use by Spinco of the Leased Real Property, and (iv) any and all Liens encumbering the underlying fee interest of the Leased Real Property; (d) restrictions on transfer arising under applicable state and federal securities laws; (e) Liens arising from actions or omissions by Parent or any of its Affiliates and (f) Liens set forth on <u>Schedule 1.1(a)</u> of the Confidential Disclosure Memorandum.

"***Person***" means any natural person, firm, individual, corporation, business trust, joint venture, association, company, limited liability company, partnership or other organization or entity, whether incorporated or unincorporated, or any Governmental Entity.

"***Policies***" means insurance policies and insurance agreements or arrangements of any kind (other than life and benefits policies, agreements or arrangements), including primary, excess and umbrella policies, comprehensive general liability policies, director and officer liability, fiduciary liability, automobile, aircraft, property and casualty, business interruption, workers' compensation and employee dishonesty insurance policies, bonds and self-insurance company arrangements, together with the rights, benefits and privileges thereunder.

"***Proceeding***" means any pending or threatened action, cause of action, demand, litigation, notice of violation, citation, summons, subpoena or right in action, Claim, change, lawsuit, arbitration, mediation or other similar proceeding pending before any Governmental Entity or arbitrator.

"***Records***" means any Information, agreements, documents, books, records or files.

"***Retained Liabilities***" has the meaning set forth in the definition of "Spinco Liabilities."

"***Representative***" is defined in <u>Section 6.8</u>.

"***Section 4.3(c) Claim***" is defined in <u>Section 10.8</u>.

"***Software***" means all computer programs (whether in source code, object code, or other form), algorithms, databases, compilations and data, and technology supporting the foregoing, and all documentation, including flowcharts and other logic and design diagrams, technical, functional and other specifications, and user and training materials related to any of the foregoing.

"***Spinco***" is defined in the Preamble to this Agreement.

"***Spinco Accounts***" is defined in <u>Section 4.1(a)</u>.

"***Spinco Accounts Receivable***" means all accounts receivable of Spinco as of the month-end immediately preceding the Effective Time, including, without limitation, the advisory fees relating to the assets at T Bank, NA, at Schwab (prorated, in the event that month-end does not coincide with quarter end), and at Pershing, as well as accounts receivable due to Spinco from Sanders Morris LLC and Tectonic Financial, Inc. for inter-company amounts. By way of example, if the Effective Time occurs on January 5, 2026 and the accounts receivable of Spinco at December 31, 2025 are $300,000 from T Bank and $2,500,000 relating to the accounts at Schwab, then the Spinco Accounts Receivable shall be $2.8 million (which shall constitute the remaining TA revenues for the final quarter of fiscal year ended December 31, 2025).

"***Spinco Assets***" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Spinco Contracts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as otherwise provided in an Ancillary Agreement, all Assets that are (i) owned of record or held in the name Spinco on the Distribution Date, (ii) treated for internal financial reporting purposes of Parent prior to the Distribution Date or on the Spinco Business Balance Sheet as owned by Spinco, or (iii) transferred to a member of Spinco pursuant to any Ancillary Agreement.

"***Spinco Auditors***" is defined in <u>Section 4.4(a)</u>.

"***Spinco Business***" means the business comprised of the Spinco Assets and the Spinco Liabilities.

"***Spinco Business Balance Sheet***" means the consolidated balance sheet of Spinco as of October 31, 2025.

"***Spinco Cash***" means all cash of Spinco, less $250,000 in cash, as of the month-end immediately preceding the Effective Time.

"***Spinco Contracts***" means the following agreements or arrangements to which Parent or any of its Affiliates is a party or by which it or any of its Affiliates or any of their respective Assets is bound, except for any such agreement or arrangement or part thereof (x) that is expressly contemplated not to be transferred or assigned by the Parent Group to Spinco, or (y) that is expressly contemplated to be transferred or assigned to (or remain with) any member of the Parent Group, in each case, pursuant to any provision of this Agreement or any Ancillary 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;(i) any agreement or arrangement entered into in the name of, or expressly on behalf of, Spinco;

&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 agreement or arrangement that relates primarily to the Spinco 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;(iii) any agreement or arrangement representing capital or lease obligations of facilities or equipment primarily used by Spinco;

&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 agreement, arrangement, or part thereof that is otherwise expressly contemplated pursuant to this Agreement or any of the Ancillary Agreements to be retained by, transferred or assigned to Spinco;

&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 guarantee, indemnity, representation or warranty of Spinco relating to, arising out of or resulting from the Spinco 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;(vi) the agreements or arrangements listed or described on <u>Schedule 1.1(b)</u> of the Confidential Disclosure Memorandum.

"***Spinco Employee(s)***" is defined in <u>Section 4.7(a)</u>.

"***Spinco Financial Statements***" means the (i) unaudited consolidated balance sheets of Spinco as of December 31, 2023 and December 31, 2024, and the related statement of operations for the fiscal years ended on such dates, and (ii) unaudited consolidated balance sheet of Spinco as of October 31, 2025, and the related statement of operation for the period ended on such date.

"***Spinco Group***" means Spinco and, after the Distribution, its subsidiaries, affiliates, joint ventures and partnerships, including Cain Watters and its subsidiaries, affiliates, joint ventures and partnerships.

"***Spinco Indemnitee***" is defined in <u>Section 7.2</u>.

"***Spinco Interests***" means the outstanding membership interests of Spinco.

"***Spinco Liabilities***" means:

&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 Liabilities listed or described on <u>Schedule 1.1(c)</u> of the Confidential Disclosure Memorandum and any and all Liabilities that are expressly contemplated by this Agreement or any Ancillary Agreement as Liabilities to be retained, assumed or retired by Spinco;

&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 and all Liabilities of Parent, Spinco, or any of their respective Affiliates, primarily relating to, arising out of or resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 operation or conduct of the Spinco Business, or the ownership or use of the Spinco Assets, as conducted at any time prior to, on or after the Effective Time (including any Liability relating to, arising out of or resulting from any act or failure to act by any director, officer, employee, agent or representative of Parent, Spinco, or any of their respective Affiliates (whether or not such act or failure to act is or was within such Person's authority)); 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;&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 operation or conduct of any business conducted by Spinco at any time on or after the Effective Time (including any Liability relating to, arising out of or resulting from any act or failure to act by any director, officer, employee, agent or representative of Spinco, or any of its Affiliates after the Effective Time (whether or not such act or failure to act is or was within such Person's 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;(iii) except as otherwise expressly provided in this Agreement or any Ancillary Agreement, Liabilities set forth on the Spinco Business Balance Sheet;

&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 and all Liabilities to the extent relating to, arising out of or resulting from any terminated, sold, discontinued or divested entity, business, real property, or Asset formerly and primarily owned or managed by, or associated with Spinco or the Spinco Business, or arising out of the sale 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;(v) any Liabilities relating to or arising out of the acquisition (whether through an acquisition of stock or assets or a merger, share exchange or other form of business combination) of any business prior to the Effective Time by Spinco, except to the extent such Liabilities arise out of or are based upon the issuance of securities of Parent in any such business combination transaction;

&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 and all Liabilities, including those Liabilities listed on <u>Schedule 1.1(d)</u> of the Confidential Disclosure Memorandum, relating to, arising out of or resulting from any Indebtedness (including debt securities and asset-backed debt) of Spinco (whether incurred prior to, on or after 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;(vii) any and all Liabilities relating to, resulting from, or arising out of any Action that is primarily related to the Spinco 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;(viii) any and all obligations of an insured Person under each Third Party Spinco Policy and each Third Party Policy to the extent related to or arising out of the Spinco Business.

Notwithstanding the foregoing, the Spinco Liabilities shall in any event not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) (i) any Liabilities that are expressly contemplated by this Agreement or any Ancillary Agreement as Liabilities to be retained or assumed by the Parent Group, including those set forth on <u>Schedule 1.1(e)</u> of the Confidential Disclosure Memorandum collectively, the "***Retained Liabilities***");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any Liabilities related or attributable to, or arising in connection with, the employment, service, termination of employment or termination of service of Spinco employees; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Liabilities related or attributable to, or arising in connection with, Taxes or Tax returns, which shall be exclusively governed by the Tax Matters Agreement.

FOR THE AVOIDANCE OF DOUBT, NO LIABILITY SHALL BE A SPINCO LIABILITY SOLELY AS A RESULT OF SPINCO OR ANY OTHER MEMBER OF SPINCO BEING NAMED AS PARTY TO, OR IN, ANY ACTION.

"***Spinco Loan Documents***" is defined in the recitals to this Agreement.

"***Spinco Material Adverse Effect***" means, as to Spinco, any change, development, impact or event that has a material adverse effect on the business, operations, condition (financial or otherwise), Assets, liabilities or results of operations of Spinco, taken as a whole.

"***Spinco Promissory Note***" is defined in the recitals to this Agreement.

"***T Bank***" is defined in Section 3.2(a)(viii).

 ****

***"TA Continuing Shareholders"*** is defined in the recitals to this Agreement.

"***Tax***" shall have the meaning given to such term in the Tax Matters Agreement.

"***Tax Matters Agreement***" means the Tax Matters Agreement, substantially in the form of <u>Exhibit B</u> hereto, entered into at or before the Effective Time between Parent and Spinco, as amended from time to time.

"***Third Party Claim***" means a Claim or demand made against a Parent Indemnitee or a Spinco Indemnitee by any Person who is not a Party or an Affiliate of a Party as to which such Parent Indemnitee or Spinco Indemnitee, as applicable, is or may be entitled to indemnification pursuant to this Agreement.

"***Third Party Policies***" means all Policies, whether or not in force on the Effective Time, issued by unaffiliated third-party insurers to Parent, Spinco or any of their respective Affiliates that cover risks that relate to both the Parent Business and the Spinco Business.

"***Third Party Spinco Policies***" means all Policies, whether or not in force on the Effective Time, issued by unaffiliated third-party insurers to Parent, Spinco, or any of their respective Affiliates that cover risks that relate exclusively to the Spinco Business.

"***Trademarks***" means all United States and foreign trademarks, service marks, corporate names, trade names, domain names, logos, slogans, designs, trade dress and other similar identifiers of source or origin, whether registered or unregistered, together with the goodwill connected with the use of and symbolized by any of the foregoing.

"***Transaction Documents***" means this Agreement and the Ancillary Agreements.

"***Transition Period***" is defined in <u>Section 4.7(a)</u>.

"***Transition Services Agreement***" means the Transition Services Agreement, substantially in the form of <u>Exhibit C</u> hereto, entered into at or prior to the Effective Time between Parent and Spinco, as amended from time to time.

**<u>ARTICLE 2</u>**<u><br> REORGANIZATION; CONVEYANCE OF CERTAIN ASSETS; ASSUMPTION OF CERTAIN LIABILITIES; CERTAIN PAYMENTS; AND TRANSITION ARRANGEMENTS</u>**

**2.1 Reorganization**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Transfers and Assumption of Assets and Liabilities.** On the day before the Distribution Date and the Effective Time, Parent shall transfer and assign to Spinco all of the Spinco Assets not already owned by Spinco, and Spinco shall assume all of the Spinco Liabilities. On the day before the Distribution Date, Spinco shall issue to Parent the Spinco Promissory Note, which shall constitute indebtedness intended to be treated for U.S. federal income tax purposes as debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Capitalization Adjustment.** On the day before the Distribution Date, Spinco shall distribute to Parent the Spinco Cash and the Spinco Accounts Receivable. Notwithstanding anything to the contrary herein, the Parties acknowledge and agree that the Spinco Accounts Receivable will be estimated as to amount at the time of distribution, but shall be finalized by the Parties after the distribution in the manner in which the Spinco Accounts Receivable have historically been finalized and Parent shall be entitled to the finalized amount of such Spinco Accounts Receivable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Incorporation Election.** Effective as of the start of the Distribution Date, pursuant to the Contribution, Spinco shall have made an election on IRS Form 8832 to be treated as an association taxable as a corporation for U.S. federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Intended Tax Treatment. T**he transfers of assets, assumption of liabilities, issuance of the Spinco Promissory Note, and related steps described in Section 2.1(a) and Section 2.1(b) above, in conjunction with the distribution by Parent of Spinco shares immediately thereafter are intended to qualify under Section 355 of the Code and constitute a reorganization within the meaning of Section 368(a)(1)(D) of the Code (and any corresponding provisions of state or local law). For the avoidance of doubt, the issuance of the Spinco Promissory Note is taxable "boot" to Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Exchange Consideration.** Parent shall distribute to the TA Continuing Shareholders the Spinco Interests in exchange for the number of shares of Parent Common Stock held by the Purchasers as set forth on Schedule 2.1 (the "***Stock Consideration***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Promissory Note and Refinancing Proceeds**. The Promissory Note shall have a maturity date of the one month anniversary of the Distribution Date, at which time all accrued and unpaid interest plus principal shall be due and payable. The proceeds from the repayment of the Promissory Note shall be retained by Parent and may be used for general corporate purposes. Parent shall not guarantee, backstop, or otherwise support Spinco's refinancing, and no assets of Parent or any member of its consolidated group shall secure such refinancing.

**2.2 Conveyance of Assets; Discharge of Liabilities**.

Except as otherwise expressly provided herein or in any of the Ancillary Agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Effective as of the Effective Time, (i) all Spinco Assets shall become Assets of Spinco, (ii) all Spinco Liabilities shall become Liabilities of Spinco, and (iii) all other Assets and Liabilities of Parent and its subsidiaries shall remain exclusively the Assets and Liabilities of the Parent Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Effective as of the Effective Time, Parent shall transfer or cause to be transferred to Spinco or such other members of Spinco as Spinco may designate all right, title, and interest of the Parent Group in and to the Spinco Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Effective as of the Effective Time, Spinco shall transfer or cause to be transferred to Parent or such other member of the Parent Group as Parent may designate all right, title, and interest of Spinco in and to all Assets that are not Spinco Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Spinco agrees that, effective as of the Effective Time, it will, or will cause another member of Spinco to, (i) assume any of the Spinco Liabilities for which a member of Spinco is not the obligor and (ii) timely pay and discharge all Spinco Liabilities at and after the Effective Time, in each case consistent with the plan of reorganization described in <u>Section 2.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Parent agrees that, effective as of the Effective Time, it will, or will cause another member of the Parent Group to, (i) assume any of the Parent Liabilities for which a member of the Parent Group is not the obligor and (ii) timely pay and discharge all Parent Liabilities at and after the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If any conveyance of an Asset required hereby is not effected at or before the Effective Time, the obligation to transfer such Asset shall continue past the Effective Time and shall be accomplished as soon thereafter as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If any Asset may not be transferred by reason of a required third-party consent that has not been obtained by the Effective Time, then (unless otherwise expressly agreed by Parent and Spinco) such Asset shall not be transferred until such consent has been obtained. Pending such transfer, Parent and Spinco shall cooperate in good faith to provide the economic and operational equivalent of an assignment or transfer of such Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) From and after the Effective Time, each Party shall promptly transfer, or cause the members of its Group to transfer, to the other Party or the appropriate member of such other Party's Group, any property received that is an Asset of the other Party or its Group. Without limiting the foregoing, funds received by a member of one Group upon payment of accounts receivable belonging to a member of the other Group shall be transferred to such other Group by wire transfer as promptly as practicable after the receiving Party becomes aware of having received such funds.

**2.3 Ancillary Agreements**. Concurrently with the execution of this Agreement, Parent and Spinco (or their appropriate subsidiaries) will duly execute and deliver:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Tax Matters Agreement substantially in the form of <u>Exhibit B</u> hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A Transition Services Agreement substantially in the form of <u>Exhibit C</u> hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Such other agreements, leases, subleases, documents, or instruments as the Parties may agree are necessary or desirable in order to achieve the purposes hereof.

**2.4 Spinco Financing**. On or before the date hereof and as a condition to the execution and delivery of this Agreement, Spinco shall deliver to Parent the fully executed **Financing Commitment Letter**, in form and substance satisfactory to Parent in its reasonable discretion, which shall be appended to this Agreement as **<u>Exhibit D</u>**.

**2.5 Surrender of Parent Common Stock**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Exchange Mechanics**. On or before the Distribution Date, and as part of the Distribution contemplated by this Agreement, each TA Continuing Shareholder shall surrender to Parent the Parent Common Stock comprising the Stock Consideration as set forth on <u>Schedule 2.1</u> of the Confidential Disclosure Memorandum. Such surrender shall constitute the exchange of such Parent Common Stock for the Spinco Interests to be distributed to such TA Continuing Shareholder pursuant to this <u>ARTICLE 2</u> and <u>ARTICLE 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Delivery and Record of Spinco Interests**. Upon receipt of the surrendered Parent Common Stock, Parent shall cause Spinco to update its limited liability company agreement and books and records to reflect the ownership of the applicable Spinco Interests by each TA Continuing Shareholder as set forth on <u>Schedule 2.1</u> of the Confidential Disclosure Memorandum. No physical certificates shall be issued, and ownership of the Spinco Interests shall be evidenced solely by the records maintained by Spinco in accordance with its limited liability company agreement. Such issuance and record update shall be deemed to occur as of the Effective Time and shall satisfy in full Parent's obligations with respect to the Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Further Assurances**. Parent, Spinco, and each TA Continuing Shareholder shall execute and deliver any additional instruments and take such further actions as Parent or Spinco may reasonably request to evidence or consummate the surrender of the Parent Common Stock comprising the Stock Consideration and the issuance and recording of the Spinco Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Intent of Exchange**. The Parties intend that the Distribution, taken together with the Contribution, shall constitute a distribution described in Section 355(a) of the Code made in pursuance of this plan of reorganization.

**2.6 Resignations**. On the Distribution Date, Parent will deliver or cause to be delivered to Spinco resignations, of each individual who will be an employee of Parent or another member of the Parent Group from and after the Distribution Date and who is an officer or director of Spinco or any of the subsidiaries or affiliates of Spinco immediately prior to the Distribution Date, except as otherwise agreed to in writing by the Parties.

**2.7 Limitation of Liability**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise expressly provided in this Agreement, no Party or such Party's Group shall have any Liability to any other Party or each other Party's Group in the event that any Information exchanged or provided pursuant to this Agreement which is an estimate or forecast, or which is based on an estimate or forecast, is found to be inaccurate, except to the extent that the providing Party knew or should have known at the time the Information was provided that the provided Information was materially inaccurate or misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as provided in <u>Section 4.2</u>, <u>Section 9.1</u> or as set forth in subsection (c) below, neither Party nor such Party's Group shall have any Liability to any other Party or such other Party's Group based upon, arising out of or resulting from any agreement, arrangement, course of dealing or understanding existing on or prior to the Effective Time (other than this Agreement or any Ancillary Agreement or any agreement entered into in connection herewith or therewith in order to consummate the transactions contemplated hereby or thereby), and each Party hereby terminates, and shall cause all members in its Group to terminate, any and all agreements, arrangements, course of dealings or understandings between it or any members in its Group and the other Party, or any members of the other Party's Group, effective as of the Effective Time (other than this Agreement or any Ancillary Agreement or any agreement entered into in connection herewith or in order to consummate the transactions contemplated hereby or thereby), unless such agreement, arrangement, course of dealing or understanding is set forth in any Ancillary Agreement or on <u>Schedule 2.7(b)</u> of the Confidential Disclosure Memorandum, and any such Liability, whether or not in writing, which is not reflected in any Ancillary Agreement or the Confidential Disclosure Memorandum, is hereby irrevocably cancelled, released and waived effective as of the Effective Time. No such terminated agreement, arrangement, course of dealing or understanding (including any provision thereof which purports to survive termination) shall be of any further force or effect after the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The provisions of <u>Section 2.7(b)</u> shall not apply to any of the following agreements, arrangements, course of dealings or understandings (or to any of the provisions 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;(i) any agreement or arrangement to which any Person other than the Parties and their respective Affiliates is a Party (it being understood that to the extent that the rights and obligations of the Parties and the members of their respective Groups under any such agreements or arrangements constitute Parent Assets or Spinco Assets, Parent Liabilities, or Spinco Liabilities, such agreements or arrangements shall be assigned or retained pursuant to this <u>ARTICLE 2</u>); 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;(ii) any agreements, arrangements, commitments or understandings to which any non-wholly owned subsidiary or non-wholly owned Affiliate of Parent or Spinco is a Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Survival of Representations, Warranties and Covenants.** Notwithstanding anything in this <u>Section 2.7</u> or elsewhere in this Agreement to the contrary, the provisions of this <u>Section 2.7</u> shall not limit or restrict (i) the rights or obligations of any Party under <u>ARTICLE 7</u> (Indemnification), (ii) the survival of any representations, warranties, covenants, or agreements that are expressly stated in this Agreement or any Ancillary Agreement to survive the Effective Time, or (iii) the enforcement of any such surviving provisions in accordance with their respective terms. Without limiting the foregoing, the representations and warranties contained in this Agreement shall survive the Effective Time and remain in effect until the date that is eighteen (18) months following the Effective Time; provided that the following shall survive until the expiration of the applicable statute of limitations (including any extensions thereof): (A) with respect to Parent and Spinco, <u>Section 5.1</u> (Due Organization; Good Standing and Corporate Power), <u>Section 5.2</u> (Title to Spinco Interests; Capitalization) and <u>Section 5.3</u> (Authority and Enforceability) and any representations relating to Fraud or intentional misrepresentation; and (B) with respect to each TA Continuing Shareholder, <u>Section 6.1</u> (Organization; Status), <u>Section 6.2</u> (Authority and Enforceability), <u>Section 6.3</u> (Ownership of Parent Common Stock; Exchange), and <u>Section 6.7</u> (Reliance Disclaimer) and any representations relating to Fraud or intentional misrepresentation. All covenants and agreements shall survive in accordance with their respective terms or, if no period is specified, until fully performed or until the expiration of the applicable statute of limitations. No Claim for indemnification may be asserted after the expiration of the applicable survival period.

**2.8 Novation of Liabilities; Consents**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Party, at the request of the other Party, shall use commercially reasonable efforts to obtain, or to cause to be obtained, any consent, release, substitution or amendment required to novate or assign all obligations under agreements, arrangements, licenses and other obligations or Liabilities for which a member of such Party's Group and a member of the other Party's Group are jointly or severally liable and that do not constitute Liabilities of such other Party as provided in this Agreement (such other Party, the "***Other Party***"), or to obtain in writing the unconditional release of all parties to such arrangements (other than the Group who assumed or retained such Liability as set forth in this Agreement), so that, in any such case, the members of the applicable Group will be solely responsible for such Liabilities; <u>provided</u>, <u>however</u>, that no Party shall be obligated to pay any consideration therefor to any third party from whom any such consent, substitution or amendment is requested (unless such Party is fully reimbursed by the requesting Party).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Parties are unable to obtain, or to cause to be obtained, any such required consent, release, substitution or amendment, the Other Party or a member of such Other Party's Group shall continue to be bound by such agreement, arrangement, license or other obligation that does not constitute a Liability of such Other Party and, unless not permitted by Law or the terms thereof, as agent or subcontractor for such Party, the Party or member of such Party's Group who assumed or retained such Liability as set forth in this Agreement (the "***Liable Party***") shall, or shall cause a member of its Group to, pay, perform and discharge fully all the obligations or other Liabilities of such Other Party or member of such Other Party's Group thereunder from and after the Effective Time; <u>provided</u>, <u>however</u>, that the Other Party shall not be obligated to extend, renew or otherwise cause such agreement, arrangement, license or other obligation to remain in effect beyond the term in effect as of the Effective Time. The Liable Party shall indemnify the Other Party and the members of the Other Party's Group and hold each of them harmless against any and all Liabilities arising in connection therewith; <u>provided</u>, that the Liable Party shall have no obligation to indemnify the Other Party or such Other Party's Group with respect to any matter to the extent that such Other Party has engaged in any knowing violation of Law, Fraud or misrepresentation in connection therewith. The Other Party shall, without further consideration, promptly pay and remit, or cause to be promptly paid or remitted, to the Liable Party or to another member of the Liable Party's Group, all money, rights and other consideration received by it or its Group in respect of such performance by the Liable Party (unless any such consideration is an Asset of such Other Party pursuant to this Agreement). If and when any such consent, release, substitution or amendment shall be obtained or such agreement, lease, license or other rights or obligations shall otherwise become assignable or able to be novated, the Other Party shall promptly assign, or cause to be assigned, all rights, obligations and other Liabilities thereunder of such Other Party's Group to the Liable Party or to another member of the Liable Party's Group without payment of any further consideration and the Liable Party, or another member of such Liable Party's Group, without the payment of any further consideration, shall assume such rights and Liabilities.

**ARTICLE 3<u><br> THE DISTRIBUTION</u>**

**3.1 Cooperation Prior to the Distribution**.

Parent and Spinco shall take all actions as may be necessary or appropriate under the securities laws or blue-sky laws of any state or other political subdivision of the United States in connection with the transactions contemplated by this Agreement and the Ancillary Agreements. Each Party shall furnish to the other such information and execute such documents as the other may reasonably request to effect any required filings or qualifications.

**3.2 Conditions Precedent to the Distribution**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Distribution nor any of the related transactions set forth in this Agreement or in the Ancillary Agreements shall become effective unless the following conditions have been satisfied or waived by Parent, in its sole and absolute discretion, at or before the Distribution 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;(i) **Tax Opinion**. Parent and Spinco shall have received an opinion from Hunton Andrews Kurth LLP, dated the Distribution Date and in form and substance satisfactory to Parent and Spinco, substantially to the effect that, for U.S. federal income tax purposes, (i) the Contribution and the Distribution, taken together, qualify as a "reorganization" under Section 368(a)(1)(D) of the Code, and (ii) the Contribution and the Distribution, taken together, qualify as a distribution of the Spinco Interests to the TA Continuing Shareholders under Section 355(a) 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;(ii) **Compliance with Law and Agreements**. The Distribution shall not violate or result in a breach of any Law or of any material agreement binding upon Parent, Spinco, or any of their respective 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;(iii) **Securities Filings**. All actions and filings required under applicable federal or state securities or blue-sky laws in connection with the Distribution shall have been completed.

&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) **Ancillary Agreements**. Each of the Ancillary Agreements shall have been duly executed and delivered by the parties thereto and shall remain in full force and effect, and no party shall be in material breach of any such 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;(v) **Consents and Approvals**. All consents, approvals, and notices required for the consummation of the Distribution and the related transactions shall have been obtained or made and shall remain in full force and effect. Neither this Agreement nor any Ancillary Agreement shall have been terminated or result in a violation, conflict, or breach (with or without the passage of time) of any Law or material Contract of Parent or Spinco.

&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) **Absence of Legal Restraints**. No preliminary or permanent injunction, Order, decree, or ruling of any Governmental Entity, and no statute, rule, regulation, or executive order, shall be in effect that restrains, prohibits, or makes illegal the consummation of the Distribution or any transaction contemplated by 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;(vii) **Board Discretion**. No event or development shall have occurred or exist that, in the judgment of Parent's Board of Directors, makes it inadvisable to effect the reorganization, the Distribution, or any other related transaction.

&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) **Execution and Delivery of Amendments to Ancillary Agreements.** As a condition to the execution and delivery of this Agreement, (i) Cain Watters, A. Haag Sherman and Spinco shall have executed and delivered to Parent the amendment to that certain Support Services Agreement dated February 5, 2015, as amended, between Cain Watters, Spinco and Sherman, which shall be appended to this Agreement as <u>Exhibit E</u> and which, by its terms, shall become effective only at the Effective Time; and (ii) T Bank, NA ("***T Bank***") and Cain Watters shall have executed and delivered to Parent the amendment to that certain agreement dated August 23, 2012 between T Bank and Cain Watters, which shall be appended to this Agreement as <u>Exhibit F</u> and which, by its terms, shall become effective only at 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;(ix) **Representations and Warranties**. The representations and warranties of the TA Continuing Shareholders set forth in this Agreement shall be true and correct in all material respects at and as of the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Distribution nor any of the related transactions set forth in this Agreement or in the Ancillary Agreements shall become effective unless the following conditions have been satisfied or waived by all of the TA Continuing Shareholders, in their sole and absolute discretion, at or before the Distribution 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;(i) **Compliance with Law and Agreements**. The Distribution shall not violate or result in a breach of any Law or of any material agreement binding upon Spinco, the TA Continuing Shareholders, or any of their respective 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;(ii) **Securities Filings**. All actions and filings required under applicable federal or state securities or blue-sky laws in connection with the Distribution shall have been completed.

&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) **Ancillary Agreements**. Each of the Ancillary Agreements shall have been duly executed and delivered by the parties thereto and shall remain in full force and effect, and no party shall be in material breach of any such 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;(iv) **Consents and Approvals**. All consents, approvals, and notices required for the consummation of the Distribution and the related transactions shall have been obtained or made and shall remain in full force and effect. Neither this Agreement nor any Ancillary Agreement shall have been terminated or result in a violation, conflict, or breach (with or without the passage of time) of any Law or material Contract of Parent or Spinco.

&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) **Absence of Legal Restraints**. No preliminary or permanent injunction, Order, decree, or ruling of any Governmental Entity, and no statute, rule, regulation, or executive order, shall be in effect that restrains, prohibits, or makes illegal the consummation of the Distribution or any transaction contemplated by 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;(vi) **Representations and Warranties**. The representations and warranties of Parent and Spinco set forth in this Agreement shall be true and correct in all material respects at and as of the Effective Time.

**3.3 The Distribution**. On or before the Distribution Date, subject to the satisfaction or waiver of the conditions set forth in this Agreement, Parent shall deliver to the Representative the Amended and Restated Limited Liability Company Agreement of Spinco, which shall reflect the ownership by the TA Continuing Shareholders of the Spinco Interests in the respective amounts set forth on <u>Schedule 3.3</u> of the Confidential Disclosure Memorandum.

**3.4 Outside Date; Limited Termination Right.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Obligation to Close.** Upon execution of this Agreement, and subject only to <u>Section 3.4(b)</u>, each Party shall take all actions necessary to consummate the Distribution on or before the Outside Date. Neither Spinco nor any TA Continuing Shareholder shall have any right to terminate, rescind, delay, or otherwise decline to consummate the Distribution once this Agreement has been executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Limited Termination Right.**

&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 TA Continuing Shareholders may terminate this Agreement prior to the Distribution Date solely if: (i) any of the conditions set forth in <u>Section 3.2(b)</u> (other than those that are to be performed at the Distribution) have not been satisfied and/or waived by the TA Continuing Shareholders by the Outside Date as a result of the failure of Parent, its Affiliates, or any other applicable Person (other than the TA Continuing Shareholders or their Affiliates) to comply with their obligations hereunder; or (ii) the TA Continuing Shareholders determine, following consultation with its counsel, that consummation of the Distribution is prohibited by applicable Law. The TA Continuing Shareholders shall have no other right to terminate or decline to consummate the Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Automatic Survival of Waived Conditions.** Any condition to the Distribution that is waived by Parent pursuant to this Agreement shall be deemed satisfied as of the date of such waiver and shall no longer constitute a condition to the consummation of the Distribution.

**ARTICLE 4<u><br> COVENANTS</u>**

**4.1 Bank Accounts**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties agree to take, or cause the respective members of their respective Groups to take, at the Effective Time (or such earlier time as the Parties may agree), all actions necessary to amend all agreements or arrangements governing each bank and brokerage account owned by Spinco or any other member of Spinco (the "***Spinco Accounts***"), including all Spinco Accounts listed or described on <u>Schedule 4.1(a)</u> of the Confidential Disclosure Memorandum, so that such Spinco Accounts, if currently linked (whether by automatic withdrawal, automatic deposit, or any other authorization to transfer funds from or to, hereinafter "***linked***") to any bank or brokerage account owned by Parent or any other member of the Parent Group (the "***Parent Accounts***") are de-linked from the Parent Accounts. From and after the Effective Time, no current or former employee of the Parent Group other than those who will be Spinco employees shall have any authority to access or Control any Spinco Account unless expressly authorized by Spinco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties agree to take, or cause the respective members of their respective Groups to take, at the Effective Time (or such earlier time as the Parties may agree), all actions necessary to amend all agreements or arrangements governing the Parent Accounts so that such Parent Accounts, if currently linked to a Spinco Account, are de-linked from the Spinco Accounts. From and after the Effective Time, no current or former employee of Spinco shall have any authority to access or Control any Parent Account other than those who will be Parent employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to any outstanding checks issued by Parent, Spinco, or any of their respective subsidiaries prior to the Effective Time, such outstanding checks shall be honored following the Effective Time by the entity or Group owning the account on which the check is drawn.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As between the two Parties (and the members of their respective Groups) all payments and reimbursements received after the Effective Time by any Party (or member of its Group) that relate to a business, Asset or Liability of another Party (or member of its Group), shall be held by such Party in trust for the use and benefit of the Party entitled thereto (at the expense of the Party entitled thereto) and, promptly upon receipt by such Party of any such payment or reimbursement, such Party shall pay over, or shall cause the applicable member of its Group to pay over to the other Party the amount of such payment or reimbursement without right of set-off.

**4.2 Insurance**. Parent and Spinco shall, and shall cause each member of the Parent Group and Spinco, respectively, to timely notify their respective insurers and bonding companies of this Agreement and the transactions contemplated hereby. The Parent Group and Spinco shall cooperate in obtaining "tail" and other insurance and bond coverages that are deemed appropriate and cost efficient. The Parent Group and Spinco shall cooperate to obtain, at mutually beneficial prices, separate insurance coverages upon and following the Separation.

**4.3 Freedom to Compete; No Hire; No Solicit**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Freedom to Compete.** Except as expressly provided in this Agreement or any Ancillary Agreement, each of Parent and the Parent Group, on the one hand, and Spinco and the Spinco Group, on the other hand, shall be free to pursue any business or investment opportunities, including those that compete or overlap with the other's business, to engage in any line of business or geographic area, to do business with any customers or employees of the other, and to direct or retain any corporate opportunities for themselves. No member of the Parent Group nor Spinco Group (nor any of their respective directors, officers, or affiliates) shall have any obligation or liability to the other for pursuing or failing to present any such opportunities, or for engaging in any such activities, so long as they do not breach any existing agreements between them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Mutual Non-Solicitation.** From the Effective Time through and including the fifth (5th) anniversary thereof, neither Parent nor Spinco, nor any member of their respective Parent Group or Spinco Group, shall, without the prior written consent of the other Party, directly or indirectly, on their own behalf or on behalf of any other Person: (i) solicit, aid, induce, or encourage any individual who is, or within the twelve (12) months prior to the time of such solicitation was, an employee of a member of the other Party's Group to leave such employment; provided, however, that Spinco and the Spinco Group is expressly permitted to solicit and hire the Spinco Employees; (ii) accept the employment of or hire any individual listed on <u>Schedule 4.3(b)</u> of the Confidential Disclosure Memorandum; or (iii) solicit for business, or attempt to divert, or accept any client or customer of the other Party's Group with whom such Party had a business relationship within the twelve (12) months prior to such solicitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Agreement (including any agreement to arbitrate disputes) to the contrary, the Parties acknowledge and agree that any breach or threatened breach of <u>Section 4.3(b)</u> (Mutual Non-Solicitation) would cause irreparable harm to the harmed Party for which monetary damages would be an inadequate remedy. Accordingly, the harmed Party shall be entitled to seek and obtain immediate temporary, preliminary, and permanent injunctive relief, restraining orders, or other equitable remedies from any court of competent jurisdiction, without the necessity of proving actual damages or posting any bond or other security (to the maximum extent permitted by Law), to prevent or restrain any actual or threatened breach of <u>Section 4.3(b)</u>. The Parties further agree that: (i) the availability of injunctive relief under this <u>Section 4.3(c)</u> shall supplement, and not preclude or limit, any other rights or remedies available to the harmed Party at law or in equity; (ii) the pursuit or award of injunctive or equitable relief shall not constitute a waiver of the obligation to arbitrate any other dispute arising under this Agreement; and (iii) courts with jurisdiction over the Parties shall have authority to enforce <u>Section 4.3(b)</u> and this <u>Section 4.3(c)</u> notwithstanding the general arbitration provisions of this Agreement.

**4.4 Auditors and Audits; Annual and Quarterly Financial Statements and Accounting**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Spinco Cooperation.** For one hundred eighty (180) days following the Effective Time, and as necessary for the preparation and audit of Parent's financial statements for the fiscal years ended December 31, 2025 and 2026, Spinco shall timely provide Parent, at Parent's expense, with all financial information, records, and access to personnel reasonably required to enable Parent and its independent public accountants (the "***Parent Auditors***") to prepare, file, and disseminate Parent's annual and interim financial statements and to complete related internal-control assessments under applicable SEC and Sarbanes-Oxley requirements. Spinco shall also authorize, and use commercially reasonable efforts to cause, its independent public accountants (the "***Spinco Auditors***") to make available to the Parent Auditors, at Parent's expense, audit work papers and audit personnel within a reasonable time before the Spinco Auditors' opinion date to permit Parent to meet its reporting schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Parent Cooperation.** Parent shall provide to the Parent Auditors all financial and other information regarding itself and its subsidiaries in a timely and sufficient manner to enable the Parent Auditors to cooperate with the Spinco Auditors and permit Spinco's management to complete their related internal-control assessments and financial statements.

**4.5 Right of Offset**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent Parent or any other member of the Parent Group has the right to receive any amounts hereunder, including under the provisions of <u>ARTICLE 7</u>, or under any Ancillary Agreement or under any other arrangement between the Parent Group and Spinco or any other member of Spinco, then following notice of such proposed offset Parent may satisfy such amounts out of and shall have a right of off-set against any amounts then currently due from Spinco or any other member of Spinco to Parent or any other member of the Parent Group hereunder or thereunder. The parties shall conduct a final accounting for such amounts within sixty (60) days of the Distribution Date, and related payments required to be made by either Spinco or Parent to the extent the amounts determined by such final accounting are higher or lower, respectively, than Parent's estimate shall be made not later than ninety (90) days after the Distribution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent Spinco or any other member of Spinco has the right to receive any amounts hereunder, including under the provisions of <u>ARTICLE 7</u>, or under any Ancillary Agreement or under any other arrangement between Spinco and Parent or any other member of the Parent Group, then following notice of such proposed offset Spinco may satisfy such amounts out of and shall have a right of off-set against any amounts then currently due from Parent or any other member of the Parent Group to Spinco or any other member of Spinco hereunder or thereunder. The parties shall conduct a final accounting for such amounts within sixty (60) days of the Distribution Date, and related payments required to be made by either Spinco or Parent to the extent the amounts determined by such final accounting are higher or lower, respectively, than Spinco's estimate shall be made not later than ninety (90) days after the Distribution Date.

**4.6 Reserved**

**4.7 Human Resources; Professional Employer Organization**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Continued PEO Participation.** Spinco acknowledges that, as of the Distribution Date, the employees of Spinco (the "***Spinco Employees***") will continue to be covered under Parent's existing professional employer organization arrangement (the "***Parent PEO Arrangement***"). Subject to the terms of this Agreement, the Parties intend that Spinco shall remain within the Parent PEO Arrangement for a transition period not to exceed twelve (12) months following the Distribution Date (the "***Transition Period***") (or such shorter period as Spinco may elect with ten (10) days' prior written notice to Parent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Administration and Cost Allocation.** During the Transition Period, Parent shall, through the Parent PEO Arrangement, continue to administer payroll, benefits, workers' compensation, unemployment, and related human-resources services for Spinco Employees. Spinco shall reimburse Parent (or the Parent PEO, as applicable) for all wages, benefits, employer taxes, administrative fees, and other costs attributable to Spinco Employees, together with any reasonable allocable administrative overhead, within thirty (30) days after invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Employment Relationship and Liability.** Spinco shall be solely responsible for the direction, supervision, and day-to-day activities of the Spinco Employees and for compliance with all applicable employment and labor Laws as the common-law employer. Parent shall not be liable for any acts or omissions of Spinco or the Spinco Employees occurring after the Distribution Date. Nothing in this Agreement shall be deemed to create a co-employment relationship between Parent and Spinco after the Distribution Date except as required under the Parent PEO Arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Transition to Stand-Alone HR Platform.** Spinco shall cooperate with Parent and the Parent PEO to transition the Spinco Employees to Spinco's separate and independent human-resources, payroll, and benefits platform (or to a separate PEO arrangement) in an orderly manner and within the Transition Period. Parent shall provide reasonable cooperation and access to data necessary to effect such transition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Employee Records and Data.** Parent shall provide Spinco with copies of personnel, payroll, and benefits records of the Spinco Employees as reasonably necessary to administer Spinco's ongoing employment and benefit programs, subject to applicable privacy and data-protection Laws. Each Party shall maintain the confidentiality of employee information in accordance with applicable Law.

**4.8 Information Technology and Data Systems**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Separation of Systems.** Parent and Spinco shall cooperate to separate information-technology assets, infrastructure, and systems so that, as soon as practicable after the Distribution, each Party operates independently. The Parties shall de-link shared servers, networks, and domains, and migrate data to standalone environments in a manner that preserves data integrity and minimizes business disruption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Shared or Transitional IT Services.** To the extent Spinco requires continued access to Parent's systems after the Distribution Date (including payroll, HRIS, accounting, or email systems used under the Parent PEO Arrangement), Parent shall provide such access under the Transition Services Agreement for a limited period and at cost. Access shall be limited to the minimum level reasonably necessary for Spinco's operations, and Spinco shall comply with all of Parent's security and confidentiality policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Confidentiality and Data Protection.** Each Party shall protect the confidentiality, integrity, and availability of the other Party's data that it receives or retains during the separation. Neither Party shall access, use, or disclose the other's proprietary or employee data except as necessary to perform obligations under this Agreement or any Ancillary Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Books and Records Migration.** Parent shall transfer to Spinco as soon as practicable after the Distribution, in a commercially reasonable format, all electronic books, records, and other data primarily relating to the Spinco Assets or Spinco Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Retention of Records**. Except as otherwise required by law or agreed to in writing, each Party shall, and shall cause the members of its Group to, retain all information relating to the other Party's business and affairs in accordance with the past practice of such Party. Notwithstanding the foregoing, either Party may destroy or otherwise dispose of any information at any time in accordance with the corporate record retention policy maintained by such Party with respect to its own records. Notwithstanding the foregoing, Shared Records shall be accessed, maintained, preserved, safeguarded, transferred, disposed of and destroyed in accordance with mutually agreeable procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Cybersecurity Cooperation.** The Parties shall cooperate in good faith to manage cybersecurity risks prior to and following the Effective Time, including incident notification, credential management, and secure transition of system credentials.

**4.9 Occupancy**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Provision of Space.** Effective as of the Distribution Date, Spinco shall make available within its principal office premises dedicated office space for the continued use of the four (4) Parent employees who, immediately prior to the Distribution Date, maintained offices at such location. Spinco shall provide such space for a period of five (5) years following the Distribution Date, subject to the terms of this <u>Section 4.9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Services; Allocation of Costs.** Spinco shall provide such employees with customary access to common areas and ordinary-course administrative services (including utilities, internet access, reception, and similar amenities) consistent with historical practice. Parent shall pay to Spinco monthly rent calculated based on the pro rata portion of the common areas that are utilized by Parent for office and cube space (which pro rata allocation the parties agree is fifty percent (50%) for each of Parent and Spinco based on the parties' respective use as of the date of this Agreement), and shall reimburse Spinco monthly for all out-of-pocket costs incurred by Spinco in providing such space and services to the extent (and only to the extent) such costs have historically been borne by Spinco with respect to such employees. Except as set forth herein, Spinco shall not charge Parent for any costs historically borne by Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **No Transfer of Property Interest.** The accommodation described in this <u>Section 4.9</u> is a contractual right of occupancy only and does not constitute a sublease, license coupled with an interest, assignment, or other transfer of any real-property interest. Spinco shall retain exclusive control and dominion over the premises, subject only to Parent's reasonable access during normal business hours for the use of such employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Conduct and Compliance.** Parent shall ensure that its employees comply with all facilities rules, security policies, and access requirements of Spinco as in effect from time to time and consistent with historical practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Early Relocation; Termination.** Parent may relocate any or all such employees at any time upon written notice to Spinco, and the portion of the accommodation relating to any relocated employee shall automatically terminate as of the relocation date. This occupancy accommodation shall terminate in full on the fifth (5th) anniversary of the Distribution Date unless earlier terminated by mutual written agreement of the Parties.

**ARTICLE 5<u><br> REPRESENTATIONS AND WARRANTIES OF PARENT AND SPINCO</u>**

Subject to the exceptions set forth in the Confidential Disclosure Memorandum, as of the date hereof and as of the Effective Time, Parent and Spinco hereby represent and warrant as follows:

**5.1 Due Organization, Good Standing and Corporate Power**.

Parent is a corporation duly organized, validly existing and in good standing under the laws of the State of Texas and is duly qualified to do business and in good standing in each other jurisdiction where such qualification is required, with full power and authority to conduct the Parent Business as it is currently being conducted. Spinco is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Texas and is duly qualified to do business and in good standing in each other jurisdiction where such qualification is required, with full power and authority to operate the Spinco Business as it is currently being operated.

**5.2 Title to Spinco Interests; Capitalization**.

Parent is the lawful record and beneficial owner of 100% of the Spinco Interests and has good, valid and marketable title to the Interest free and clear of any Liens. There are no Contracts that could require Parent to sell, transfer or otherwise dispose of any of the Spinco Interests. Parent has the exclusive right, power and authority to distribute the Spinco Interests to the TA Continuing Shareholders pursuant to the Distribution, and Parent is not a party to nor bound by, and the Spinco Interests are not subject to, any Contract affecting or relating to the Spinco Interests. Upon the Distribution to the TA Continuing Shareholders, good and valid title to the Spinco Interests will pass to the TA Continuing Shareholders, and the TA Continuing Shareholders will be the direct owner, beneficially and of record of 100% of the Spinco Interests, free and clear of any Liens (other than restrictions that may be imposed by applicable securities Laws).

**5.3 Authority and Enforceability**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Parent has the requisite corporate power and authority to enter into and perform its obligations under this Agreement and the Ancillary Agreements and to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder. The execution, delivery and performance by Parent of this Agreement and the Ancillary Agreements, and the consummation by Parent of the transactions contemplated hereby and thereby, have been duly and validly authorized by all required action on the part of Parent and no other proceedings on the part of Parent are required to authorize this Agreement or the other Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby. This Agreement and each of the other Ancillary Agreements have been (or will be when executed and delivered on the Effective Time) duly executed and delivered by Parent and constitutes (or will constitute) a valid and legally binding obligation of Parent, enforceable against it in accordance with the terms hereof, except to the extent that such enforcement may be limited by the Enforceability Exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Spinco has the requisite corporate power and authority to enter into and perform its obligations under this Agreement and the Ancillary Agreements and to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder. The execution, delivery and performance by Spinco of this Agreement and the Ancillary Agreements, and the consummation by Spinco of the transactions contemplated hereby and thereby, have been duly and validly authorized by all required action on the part of Spinco and no other proceedings on the part of Spinco are required to authorize this Agreement or the other Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby. This Agreement and each of the other Ancillary Agreements have been (or will be when executed and delivered on the Effective Time) duly executed and delivered by Spinco and constitutes (or will constitute) a valid and legally binding obligation of Spinco, enforceable against it in accordance with the terms hereof, except to the extent that such enforcement may be limited by the Enforceability Exceptions.

**5.4 TA Continuing Shareholder Ownership**. Set forth beside each TA Continuing Shareholder's name on <u>Schedule A</u> is the true and correct number of shares of Parent Common Stock owned by each such TA Continuing Shareholder, assuming the exercise of all options, warrants and other convertible Equity Interests into shares of Parent Common Stock and subject to other qualifications as set forth on <u>Schedule A</u>.

**5.5 No Defaults or Conflicts**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) After giving effect to the execution and delivery of this Agreement, the Ancillary Agreements and all other agreements contemplated hereby, the execution, delivery and performance by Parent of this Agreement and the other Ancillary Agreements, and the consummation of the transactions contemplated hereby and thereby do not (i) result in or constitute a breach or an event that, with or without the giving of notice, the lapse of time or both, would constitute a default, breach or other violation of the Organizational Documents of Parent; (ii) violate (with or without the giving of notice or the lapse of time or both) or require any Consent applicable to Parent; or (iii) with or without the giving of notice, the lapse of time or both, violate or conflict with, or result in the breach of, or constitute a default under, or result in the termination or other modification or cancellation or acceleration of the performance of the obligations of Parent under any Contract to which Parent is a party or by which Parent or any of its properties or assets are bound or result in the creation of any Lien on any of the properties or assets of Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery and performance by Spinco of this Agreement and any other Ancillary Agreements, and the consummation of the transactions contemplated hereby and thereby do not (i) result in or constitute a breach or an event that, with or without the giving of notice, the lapse of time or both, would constitute a default, breach or other violation of the Organizational Documents of Spinco; (ii) violate (with or without the giving of notice or the lapse of time or both) or require any Consent applicable to Spinco; or (iii) with or without the giving of notice, the lapse of time or both, violate or conflict with, or result in the breach of, or constitute a default under, or result in the termination or other modification or cancellation or acceleration of the performance of the obligations of Spinco under any Material Contract to which Spinco is a party or by which Spinco, any of its Subsidiaries or any of the Assets are bound or result in the creation of any Lien on any of the Assets.

**5.6 Consents**. After giving effect to the execution and delivery of this Agreement, the Ancillary Agreements and all other agreements contemplated hereby, no Consent will be required to be obtained or made by Parent or Spinco in connection with the due execution, delivery and performance by Parent or Spinco of this Agreement or the Ancillary Agreements and the consummation by Parent or Spinco of the transactions contemplated by this Agreement or the Ancillary Agreements.

**5.7 Financial Statements**. <u>Schedule 5.7</u> of the Confidential Disclosure Memorandum sets forth true, correct and complete copies of the Spinco Financial Statements. The Spinco Financial Statements (i) have been prepared from, and are consistent in all material respects with the books and records of Spinco; (ii) have been prepared in accordance with GAAP, consistently applied throughout the periods, except for the interim Spinco Financial Statements for the period ending October 31, 2025, which are subject to normal and recurring year-end adjustments; and (iii) present fairly in all material respects the financial condition, results of operations, cash flow and, solely with respect to the Spinco Financial Statements, changes in stockholders' equity of Spinco for the periods covered and as of the respective dates thereof.

**5.8 Undisclosed Liabilities**. Spinco does not have any liabilities or obligations in excess of $50,000 individually, or $100,000 in the aggregate (whether absolute, accrued or contingent and whether due or to become due), except (i) as and to the extent disclosed or reserved against in the Spinco Financial Statements; (ii) for liabilities incurred since the date of the Spinco Financial Statements in the Ordinary Course, none of which are material, individually, or in the aggregate, to Spinco; (iii) for liabilities described on <u>Schedule 5.8</u> of the Confidential Disclosure Memorandum; or (iv) for liabilities incurred in connection with this Agreement or the transactions contemplated by this Agreement.

**5.9 Absence of Certain Changes or Events**. Except as otherwise contemplated by this Agreement or the Ancillary Agreements, since the Balance Sheet Date, a Spinco Material Adverse Effect has not occurred and Spinco has conducted its businesses in the Ordinary Course, and has not engaged in any of the following activities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issued any Spinco Interests, warrants, options or other Equity Interests, or redeemed, purchased or otherwise acquired any outstanding Spinco Interests or other Equity Interests issued by it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) split, combined, subdivided or reclassified any of its Spinco Interests or other Equity Securities or declared, set aside or paid any dividend or made any other distribution (other than dividends paid in cash consistent with Spinco's historical dividend practices) with respect to any of its Spinco Interests or other Equity Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) adopted any amendment to the Organizational Documents of Spinco;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i) entered into any transaction with, or increased or accelerated in any manner the rate or terms of compensation or benefits of any of its directors, officers, employees or consultants except as may be required under applicable Law or any Benefit Plan or such increases as are granted in the Ordinary Course; (ii) paid or agreed to pay any pension, retirement allowance or other employee benefit not contemplated by any Benefit Plan to any director, officer, consultant or employee, whether past or present, other than in the Ordinary Course or as required by Law; or (iii) entered into or adopted any employment, bonus, severance, retirement contract or employee benefit plan, or amended any existing Benefit Plan, in each case other than as required by Law or an existing Benefit Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) incurred any Indebtedness outside the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) mortgaged, pledged or subjected any material Assets to any Lien or created, imposed or otherwise incurred any Lien upon any material Assets (other than Permitted Liens);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) except in the Ordinary Course, sold, leased, transferred or otherwise disposed of, any of its material assets or properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) made (or forgave) any loans, advances or capital contributions, except advances for travel and other normal business expenses to officers and employees in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) incurred any capital expenditures in excess of Fifty Thousand Dollars ($50,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) materially amended, entered into, or terminated any Material Contract or any Real Property Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) cancelled, waived, compromised or released of any Claims or rights under any Material Contract or Real Property Lease or any other material Claims pertaining to its Assets or operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) settled or compromised or offered to settle or compromise (or amended a settlement or compromise of) any Proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) acquired any operating business or Person, by merger or consolidation, purchase of substantial assets or equity Spinco Interests, or by any other manner, in a single transaction or a series of related transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) entered into any new line of business or services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) written down or written up (or failed to write-down or write-up) in accordance with GAAP consistent with past practice the value of any account receivable or revalued any other assets other than in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) changed, in any material respect, its cash management practices and policies, practices and procedures with respect to the collection of accounts receivable, establishment of reserves for uncollectible receivables, prepayment of expenses, accrual of expenses or deferral of revenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) made any change in any method of accounting or auditing practice other than those required by GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) entered into any Contract or transaction with Parent or any Affiliate of Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) except as required by applicable Law, made or changed any Tax election, changed an annual accounting period, adopted or changed any accounting method, filed any amended Tax Return, entered into any Effective Time agreement, settled any Tax Claim relating to Spinco or any Subsidiary, surrendered any right to a clam for refund of Taxes, or consented to any extension or waiver of the limitation period applicable to any Tax Claim relating to Spinco or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) experienced any damage, destruction or Loss in an amount in excess of Ten Thousand Dollars ($10,000) to any of the Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) canceled, reduced or not renewed any insurance policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) paid, or made any accrual or arrangement for the payment of, any increase in compensation, bonuses or special compensation of any kind to any employee of Spinco other than in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) entered into or amended any new employment, severance, bonus, consulting, retention, retirement, equity or other compensation agreement, except for Contracts with newly hired employees or contractors of Spinco in the Ordinary Course with an annual base salary or consulting fees and incentive compensation opportunity that do not exceed One Hundred Thousand Dollars ($100,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) adopted any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy under any provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any similar Law, except as contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) other than in the Ordinary Course or due to applicable Law, amended or adopted any Benefit Plan or labor agreement affecting any employee or consultant of Spinco; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) agreed in writing to take any of the foregoing actions.

Provided, however, that Spinco has been notified by the Excluded Clients, and their associated registered representatives, that the Excluded Clients will not remain clients of Spinco and will transfer their accounts to an affiliate of Parent either prior to, or within a year after, the Distribution, on the terms set forth in the Transition Services Agreement.

**5.10 Litigation; Orders**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There is not any Claim, Order or Proceeding pending or, to Spinco's Knowledge, threatened in writing against Spinco or its Assets or any of its respective officers, directors, managers or employees (in each case, in their capacity as such). Except as set forth in <u>Schedule 5.10(a)(ii)</u> of the Confidential Disclosure Memorandum, there are no audits or investigations by or Claims or lawsuits with a Governmental Entity pending or, to Spinco's Knowledge, threatened in writing against Spinco. There is no settlement or similar agreement that imposes any ongoing obligations or restrictions on Spinco. There is no Claim or Proceeding commenced by Spinco currently pending.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There are no outstanding Orders and no unsatisfied judgments, penalties or awards against or affecting Spinco, its Subsidiaries or any its Assets. Spinco is, and has at all times been, in material compliance with the terms of each Order to which it or its Assets are bound or subject and no event has occurred or circumstance exists that could reasonably be expected to constitute or result in with or without notice or lapse of time or both a violation in any material respect of, or failure to comply in any material respect with, any Order to which Spinco or its Assets are subject. Spinco has not received any written notice from any Governmental Entity or any other Person regarding any actual, alleged, or potential violation of, or failure to comply with, any Order to which Spinco, any Subsidiary of Spinco or any of their respective Assets are subject.

**5.11 Compliance with Law**. Spinco is in compliance, in all material respects, with all Laws applicable to it and its Assets and has not received any written notice from any Governmental Entity or any other Person asserting any past or present failure by Spinco or such Subsidiary of any applicable Law.

**5.12 Permits; Licenses**. Spinco owns or possesses all material Permits that are required under applicable Law to conduct their respective businesses, including the Business, as presently conducted and no written notices have been received by Spinco alleging the failure to hold any applicable Permit.

**5.13 Title to Assets**. Spinco (a) has good and marketable title to or (b) has valid leasehold Interests in or has valid contractual rights to use, in each case free and clear of all Liens (other than Permitted Liens), all of the Assets owned by Spinco. The Assets currently owned by Spinco are in good working order (reasonable wear and tear and scheduled maintenance excepted) and are adequate and sufficient to permit Spinco to operate the Spinco Business from and after the Effective Time in the same manner as the Spinco Business is being conducted as of the date hereof and as of immediately prior to the Effective Time. Other than as set forth on <u>Schedule 5.13</u> of the Confidential Disclosure Memorandum, none of the Assets of Spinco is used in the business of Parent. No Person other than Spinco owns any equipment or other personal property situated on the premises of Spinco, except for leased items that are subject to personal property leases.

**5.14 Material Contracts**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Schedule 5.14(a)</u> of the Confidential Disclosure Memorandum discloses each currently effective Contract to which Spinco is a party or by which it or its Assets is bound which constitutes:

&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) an employment agreement (excluding offer letters for at-will employment), change of control agreement, or separate bonus or severance agreement (exclusive of generally applicable bonus plans or severance policies contained in any employment handbooks of Spinco) with any current or former employee of Spinco which will remain in effect following the Effective Time and that has a future liability in excess of Fifty Thousand Dollars ($50,000) per annum;

&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) a Contract which calls for payments in excess of Fifty Thousand Dollars ($50,000) over the twelve (12) months following the date hereof and which may not be canceled upon 90 or fewer days' notice without any liability, penalty or premium (other than consulting fees payable to the date of termination and unreimbursed expenses);

&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 (A) relating to the acquisition, issuance, voting, registration, sale or transfer of any securities, (B) providing any Person with any preemptive right, right of participation, right of maintenance or any similar right with respect to any securities, (C) providing Spinco with any right of first refusal with respect to, or right to repurchase or redeem, any securities, or (D) relating to the future disposition or acquisition of material assets or properties by Spinco outside the Ordinary Course, or any merger or business combination with respect to Spinco;

&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) a Contract giving rise to Indebtedness in excess of Ten Thousand Dollars ($10,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a Contract with any Affiliate of Spinco, including Parent;

&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) a Contract for the making of capital expenditures under which Spinco, as of the date of this Agreement, has remaining obligations in excess of Fifty Thousand Dollars ($50,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) a Contract involving the lease of equipment, a vehicle or other personal property that require payments of greater than Fifty Thousand Dollars ($50,000) during the remaining term or on an annual 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;(viii) a Contract (A) creating a joint venture or partnership or (B) involving a sharing of profits, Losses, costs, or Liabilities by Spinco with any other 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;(ix) a Contract that relates to the acquisition or disposition of any business, a material amount of stock or assets of any other Person or any real property (whether by merger, sale of stock, sale of assets 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;(x) a Contract that provides for the indemnification by Spinco of any Person or the assumption of any Tax, environmental or other liability of 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;(xi) a Contract with any Governmental Entity to which Spinco is a 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;(xii) an agency, sales promotion, market research, marketing consulting or advertising Contract to which Spinco is a party involving anticipated, remaining payment obligations of Spinco or such Subsidiary party thereto of greater than Fifty Thousand Dollars ($50,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Contracts listed in <u>Schedule 5.14(a)</u> of the Confidential Disclosure Memorandum is in full force and effect (each, a "***Material Contract***") and (assuming due power and authority to execute, deliver and perform at the time of execution of, and due execution and delivery by, the other party or parties thereto) is a valid and legally binding obligation of Spinco and, to the Parent's Knowledge, any other party thereunder, enforceable in accordance with its terms, subject to the Enforceability Exceptions and, to the Knowledge of Parent, neither Spinco nor any other party to any Material Contract is in material breach of or default under any material term of any such Material Contract, nor, to the Knowledge of Parent, does any condition exist that, with notice or lapse of time or both, would constitute a material default or breach thereunder by Spinco or any other party to such Material Contract. None of Spinco or any other party to a Material Contract has provided or received any written notice of any intention to terminate any Material Contract, provided or received any written notice of breach or default in any material respect under any Material Contract or granted to any third party any rights, adverse or otherwise, that would constitute a breach of any Material Contract. True, correct and current copies of the Material Contracts, as in effect on the date hereof, have been Made Available to the Representative.

**5.15 Employee Benefits**. <u>Schedule 5.15</u> of the Confidential Disclosure Memorandum contains a true and complete list of each "employee benefit plan" as defined in Section 3(3) of ERISA (whether or not subject to ERISA), deferred compensation, excess benefit, stock bonus, stock purchase, stock ownership, pension, profit sharing, savings and thrift, cafeteria, reimbursement, health savings, flexible spending, welfare, sick leave, medical, dental, hospitalization, vision, disability, accidental death and dismemberment, life insurance, death benefits, collective bargaining or other agreement with any works council or similar association, worker's compensation, unemployment compensation, post-retirement, transaction bonus, periodic bonus, loan, salary continuation, benefit, defined benefit, retirement, employment (excluding at-will offer letters and employment agreements that do not contain change of control, severance or prior notice provisions), independent contractor, termination, retention, noncompetition and confidentiality, retirement, employment, independent contractor, termination, retention, noncompetition, confidentiality, compensation, incentive, stock option, restricted stock, stock appreciation right, phantom equity, change in control, severance, vacation, paid time off, fringe benefit, perquisite (including benefits relating to automobiles, clubs, child care, parenting leave, and sabbaticals), and other similar agreement, plan, policy, program, trust, fund, contract, agreement, retainer, consulting, understanding, commitment, policy, funding mechanism and other arrangement (and any amendments thereto), whether or not reduced to writing, in effect and covering one or more employees (whether active or on leave of absence), former employees, or any consultants, officers, directors or agents of Spinco, and the beneficiaries and dependents of any of them, and is established, operated, funded, administered, maintained, sponsored, contributed to, or required to be contributed to by Spinco, any of its Subsidiaries or any ERISA Affiliate, or under which Spinco has or may have any liability, or with respect to which Parent or any of its Affiliates would reasonably be expected to have any liability, contingent or otherwise (as set forth on <u>Schedule 5.15</u> of the Confidential Disclosure Memorandum, each, a "***Benefit Plan***").

**5.16 Reserved**.

**5.17 Real Property**. Spinco does not own any real property, nor does Spinco have an option to purchase, or is otherwise obligated to purchase, any real property. <u>Schedule 5.17</u> of the Confidential Disclosure Memorandum sets forth the address of each parcel of property that is leased or subleased by Spinco or that Spinco has agreed (or has an option) to lease or sublease or is obligated to lease or sublease, whether as lessor or lessee ("***Leased Real Property***" and the buildings and fixtures thereon are hereinafter referred to as the "***Leased Improvements***"), and a true and complete list of each lease or sublease, and all amendments thereto, pursuant to which such real property is leased (each, a "***Real Property Lease***" and, collectively, the "***Real Property Leases***") for each such Leased Real Property has been provided to the Representative. With respect to each of the Real Property Leases: (i) such Real Property Lease is legal, valid and binding on Spinco, and to the Knowledge of Parent, the other party thereto, enforceable in accordance with its terms and in full force and effect, except as enforceability may be limited by the Enforceability Exceptions; (ii) the consummation of transactions contemplated hereby does not require the Consent of any other party to such Real Property Lease, will not result in a breach of or default under such Real Property Lease, and will not otherwise cause such Real Property Lease to cease to be legal, valid, binding, enforceable (except as enforceability may be limited by the Enforceability Exceptions) and in full force and effect on identical terms following the Effective Time; (iii) the possession and quiet enjoyment of the rights and benefits granted to Spinco under such Real Property Lease have not been disturbed in any material respect, and (iv) neither Spinco or, to the Knowledge of Parent, any other party thereto, is in material breach or default under such Real Property Lease.

**5.18 Insurance**. <u>Schedule 5.18</u> of the Confidential Disclosure Memorandum sets forth a true, correct and current list of Spinco's insurance policies (including policy number, amount and type of coverage, period of coverage, whether such policy is an occurrence policy or a claims-made policy, and the premiums of such policy allocated to Spinco) and fidelity bonds maintained on its Assets, or with respect to its employees or the Spinco Business and all such complete and correct insurance policies and bonds have been Made Available to Parent. All such insurance policies are valid, binding and enforceable in accordance with their terms against the respective insurers, except as enforcement may be limited by the Enforceability Exceptions and have not been subject to any lapse in coverage. All such insurance policies are in full force and effect, all premiums due and payable thereon have been paid (other than retroactive or retrospective premium adjustments that are not yet required to be paid) and neither Spinco nor Parent is in material default with respect to its obligations under any such insurance policy. Except as set forth on <u>Schedule 5.18</u> of the Confidential Disclosure Memorandum, there are no Claims related to the Spinco Business pending under any insurance policies as to which coverage has been questioned, denied or disputed or in respect of which there is an outstanding reservation of rights or where available insurance coverage (inclusive of defense expenses) will be exceeded. The insurance policies maintained by or on behalf of Spinco are sufficient for compliance with all applicable Laws and Contracts to which Spinco is a party or by which Spinco, its Subsidiaries or any of its Assets are bound. Spinco has timely provided all notices required to be given under such insurance policies to the respective insurer with respect to all Claims and actions covered by insurance. Spinco has not (i) received any written notice from any insurer canceling or materially amending any of such insurance policies, and no such cancellation or amendment is threatened, or (ii) failed to present any Claim which is still outstanding under any of such insurance policies. Spinco has not reached or exceeded its policy limits for any insurance policies in effect. No such insurance policies are written on a retrospective, audited, or similar premium basis.

**5.19 Bank Accounts**. <u>Schedule 5.19</u> of the Confidential Disclosure Memorandum sets forth each of the bank accounts of Spinco and the employees that are authorized signatories with respect to such accounts.

**5.20 Transactions with Affiliates, Stockholders, Officers, Directors and Others**. Except as set forth in <u>Schedule 5.20</u> of the Confidential Disclosure Memorandum or with respect to any amounts to be repaid or Contracts to be terminated at Effective Time, neither Parent nor Spinco nor any officer, employee, director, stockholder or Affiliate of the foregoing or any entity that Controls or is Controlled by such Persons: (a) has any Contract with Spinco; (b) has any loans or receivables outstanding to or from Spinco; (c) is otherwise indebted to Spinco; (d) owns any property, real or personal, tangible or intangible, required for or used in the Spinco Business; (e) is owed any money or property by Spinco or Subsidiaries, other than wages or salary earned in the Ordinary Course or (f) owns, directly or indirectly, any interest (excepting less than five percent (5%) stock holdings for investment purposes in securities of publicly held and traded companies), or is an officer, director, employee or manager, of, any Person which is, or is engaged in business as, a competitor, supplier, distributor, or customer or client of Spinco.

**ARTICLE 6<u><br> REPRESENTATIONS AND WARRANTIES OF TA CONTINUING SHAREHOLDERS</u>**

Each TA Continuing Shareholder hereby makes the following representations and warranties, **severally and not jointly**, and solely with respect to itself, as of the date hereof and as of the Effective Time (except to the extent any such representation or warranty is expressly made as of another date, in which case, as of such other date):

**6.1 Organization; Status**. Each TA Continuing Shareholder is, as applicable, a natural person, an individual retirement account or rollover IRA, or a limited liability company duly organized, validly existing, and in good standing under the laws of its jurisdiction of organization and has full power and authority to own its assets and to enter into and perform this Agreement.

**6.2 Authority and Enforceability**. Each TA Continuing Shareholder has full power and authority to execute, deliver, and perform this Agreement and any Ancillary Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby. This Agreement and each such Ancillary Agreement constitute, or when executed and delivered will constitute, the legal, valid, and binding obligations of such TA Continuing Shareholder, enforceable against it in accordance with their respective terms, subject to the Enforceability Exceptions.

**6.3 Ownership of Parent Common Stock; Exchange**. The number of shares of Parent Common Stock owned by each TA Continuing Shareholder immediately prior to the Distribution and the percentage of Spinco Interests to be received by such TA Continuing Shareholder immediately following the Distribution are accurately set forth on <u>Schedule A</u> and such shares are owned free and clear of all Liens (other than those arising under applicable securities laws), and no other Person has any right or option to acquire such shares. Each TA Continuing Shareholder will surrender such shares of Parent Common Stock at the Distribution in exchange for its proportionate Spinco Interests as set forth on as set forth on <u>Schedule 2.1</u> of the Confidential Disclosure Memorandum.

**6.4 No Conflicts; Consents**. The execution, delivery, and performance of this Agreement and the Ancillary Agreements by each TA Continuing Shareholder do not, and the consummation of the transactions contemplated hereby and thereby will not, (a) violate or conflict with the Organizational Documents (if any) of such TA Continuing Shareholder, (b) require any Consent applicable to such TA Continuing Shareholder, or (c) violate or conflict with, or result in a default under, any Contract or Law applicable to such TA Continuing Shareholder, in each case so as to prevent or materially delay the consummation of the transactions contemplated hereby.

**6.5 Investment Intent; Sophistication**. Each TA Continuing Shareholder is acquiring the Spinco Interests for investment for its own account and not with a view to, or for sale in connection with, any public distribution thereof in violation of the Securities Act. Each TA Continuing Shareholder acknowledges that the Spinco Interests have not been registered under the Securities Act or any state securities laws and may not be resold except in compliance therewith. Each TA Continuing Shareholder is an "accredited investor" within the meaning of Regulation D under the Securities Act, has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in Spinco, and has had access to such information regarding Spinco as it has requested and deemed necessary in connection with its investment decision.

**6.6 Proceedings**. There is no Proceeding pending or, to the knowledge of such TA Continuing Shareholder, threatened against such TA Continuing Shareholder that would prevent or materially impair the consummation of the transactions contemplated hereby.

**6.7 Reliance Disclaimer**. Each TA Continuing Shareholder acknowledges that, in entering into this Agreement, it has relied solely upon its own investigation and analysis and upon the representations and warranties expressly set forth in this Agreement and the Ancillary Agreements, and that no other representation, warranty, promise, or statement, express or implied, has been made to it by Parent, Spinco, or any of their respective Affiliates, representatives, or advisors, except as expressly set forth herein or therein.

**6.8 Appointment of Representative**. Each TA Continuing Shareholder acknowledges that Hunter Satterfield has been appointed as representative ("***Representative***") to act on each TA Continuing Shareholder's behalf (individually) and on behalf of all TA Continuing Shareholders to take delivery of documents required to be delivered to the TA Continuing Shareholders, take actions on behalf of the TA Continuing Shareholders and to provide and receive notices for and on behalf of the TA Continuing Shareholders, whether individually or collectively, in each case in accordance with the provisions set forth in this Agreement and the Ancillary Agreements.

**ARTICLE 7<u><br> INDEMNIFICATION</u>**

**7.1 Spinco Indemnification of the Parent Group**. On and after the Distribution Date, Spinco shall indemnify, defend and hold harmless each member of the Parent Group, and each of their respective directors, officers, employees and agents (the "***Parent Indemnitees***") from and against any and all Indemnifiable Losses incurred or suffered by any of the Parent Indemnitees and arising out of, or due to, (a) the failure of Spinco or Spinco to pay, perform or otherwise discharge, any of the Spinco Liabilities, and (b) any breach by Spinco or Spinco of this Agreement; <u>provided</u>, that Spinco shall have no obligation to indemnify Parent or any other member of the Parent Group with respect to any matter to the extent that such party has engaged in any knowing violation of Law, Fraud or misrepresentation in connection therewith.

**7.2 Parent Indemnification of Spinco**. On and after the Distribution Date, Parent shall indemnify, defend and hold harmless the TA Continuing Shareholders, each member of the Spinco Group, and each of their respective directors, officers, employees and agents (the "***Spinco Indemnitees***") from and against any and all Indemnifiable Losses incurred or suffered by any of the Spinco Indemnitees and arising out of, or due to, (a) the failure of Parent or the Parent Group to pay, perform or otherwise discharge, any of the Parent Liabilities and (b) any breach by Parent or the Parent Group of any of the representations, warranties, terms, conditions, or covenants in this Agreement; <u>provided</u>, that Parent shall have no obligation to indemnify Spinco or any other member of Spinco with respect to any matter to the extent that such party has engaged in any knowing violation of Law, Fraud or misrepresentation in connection therewith.

**7.3 TA Continuing Shareholders Indemnification of Parent**. On and after the Distribution Date, the TA Continuing Shareholders, severally but not jointly, shall indemnify, defend and hold harmless the Parent Indemnitees from and against any and all Indemnifiable Losses incurred or suffered by any of the Parent Indemnitees and arising out of, or due to, (a) any breach by the TA Continuing Shareholders of any of the representations, warranties, terms, conditions, or covenants in this Agreement; <u>provided</u>, that the TA Continuing Shareholders shall have no obligation to indemnify Parent or any other member of Parent with respect to any matter to the extent that such party has engaged in any knowing violation of Law, Fraud or misrepresentation in connection therewith. No TA Continuing Shareholder shall have any liability or obligation to indemnify, defend, or hold harmless any of the Parent Indemnitees for any breach of a representation, warranty, terms, condition, or covenant by any other TA Continuing Shareholder.

**7.4 Contribution**. In circumstances in which the indemnity agreements provided for in <u>Sections 7.1</u>, <u>7.2</u> and <u>7.3</u> are unavailable or insufficient, for any reason, to hold harmless an indemnified party in respect of any Indemnifiable Losses arising thereunder, each indemnifying party, in order to provide for just and equitable contribution, shall contribute to the amount paid or payable by such indemnified party as a result of such Indemnifiable Losses, in proportion to the relative fault of the indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or omissions or alleged statements or omissions that resulted in such Indemnifiable Losses, as well as any other relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by Spinco, Parent or the TA Continuing Shareholders, the Parties' or the TA Continuing Shareholders' relative intents, Knowledge, access to information and opportunity to correct or prevent such statement or omission, and any other equitable considerations appropriate in the circumstances.

**7.5 Insurance and Third Party Obligations**. No insurer or any other third party shall be, by virtue of the foregoing indemnification provisions, (a) entitled to a benefit it would not be entitled to receive in the absence of such provisions, (b) relieved of the responsibility to pay any Claims to which it is obligated, or (c) entitled to any subrogation rights with respect to any obligation hereunder.

**7.6 Indemnification Obligations Net of Insurance Proceeds and Other Amounts on a Net Tax Benefit Basis**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Liability subject to indemnification or contribution pursuant to this <u>ARTICLE 7</u>, will (i) be net of Insurance Proceeds that actually reduce the amount of the Liability, (ii) be net of any proceeds received by an Indemnified Party from any third party for indemnification for such Liability that actually reduce the amount of the Liability ("***Third Party Proceeds***"), (iii) be reduced by any Tax benefit actually realized by the Indemnified Party (calculated on a with and without basis) arising from the incurrence or payment of any such Liability and (iv) be increased by any Tax detriment actually incurred by the Indemnified Party (calculated on a with and without basis) as a result of the receipt or accrual of the Indemnity Payment (as defined below) in respect of such Liability. Accordingly, the amount which any Indemnifying Party is required to pay pursuant to this <u>ARTICLE 7</u> to any Indemnified Party will be reduced by any Insurance Proceeds, Tax benefits actually realized or Third Party Proceeds theretofore actually recovered by or on behalf of the Indemnified Party in respect of the related Liability, and shall be increased by any Tax detriments actually incurred. If an Indemnified Party receives a payment required by this Agreement from an Indemnifying Party in respect of any Liability (an "***Indemnity Payment***") and subsequently receives Insurance Proceeds or Third Party Proceeds, then the Indemnified Party will pay to the Indemnifying Party an amount equal to the excess of the Indemnity Payment received over the amount of the Indemnity Payment that would have been due if the Insurance Proceeds or Third Party Proceeds had been received, realized or recovered before the Indemnity Payment was made.

If a Tax benefit or Tax detriment is actually realized or incurred after the payment of any Indemnity Payment hereunder, the Indemnified or Indemnifying Party, as the case may be, shall pay to the other the amount of any such Tax benefit or Tax detriment when actually realized or incurred. Adjustments will made if any such Tax benefits are disallowed or such Tax detriments are not ultimately incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An insurer who would otherwise be obligated to pay any Claim shall not be relieved of the responsibility with respect thereto or, solely by virtue of the indemnification and contributions provisions hereof, have any subrogation rights with respect thereto. The Indemnified Party shall use commercially reasonable efforts to seek to collect or recover any third-party Insurance Proceeds and any Third Party Proceeds to which the Indemnified Party is entitled in connection with any Liability for which the Indemnified Party seeks contribution or indemnification pursuant to this <u>ARTICLE 7</u>; <u>provided</u> that the Indemnified Party's inability to collect or recover any such Insurance Proceeds or Third Party Proceeds shall not limit the Indemnifying Party's obligations hereunder.

**7.7 Notice and Payment of Claims**. If any Parent or Spinco Indemnitee (the "***Indemnified Party***") determines that it is or may be entitled to indemnification by a Party (the "***Indemnifying Party***") under this <u>ARTICLE 7</u> (other than in connection with any Action or Claim subject to <u>Section 7.8</u>), the Indemnified Party shall deliver to the Indemnifying Party a written notice specifying, to the extent reasonably practicable, the basis for its Claim for indemnification and the amount for which the Indemnified Party reasonably believes it is entitled to be indemnified. After the Indemnifying Party shall have been notified of the amount for which the Indemnified Party seeks indemnification, the Indemnifying Party shall, within thirty (30) days after receipt of such notice, pay the Indemnified Party such amount in cash or other immediately available funds (or reach agreement with the Indemnified Party as to a mutually agreeable alternative payment schedule) unless the Indemnifying Party objects to the Claim for indemnification or the amount thereof. If the Indemnifying Party does not give the Indemnified Party written notice objecting to such Claim and setting forth the grounds therefor within the same thirty (30) day period, the Indemnifying Party shall be deemed to have acknowledged its liability for such Claim and the Indemnified Party may exercise any and all of its rights under applicable law to collect such amount.

**7.8 Notice and Defense of Third Party Claims**. Promptly following the earlier of (a) receipt of notice of the commencement by a third party of any Action against or otherwise involving any Indemnified Party or (b) receipt of information from a third party alleging the existence of a Claim against an Indemnified Party, in either case, with respect to which indemnification may be sought pursuant to this Agreement (a "***Third Party Claim***"), the Indemnified Party shall give the Indemnifying Party written notice thereof. The failure of the Indemnified Party to give notice as provided in this <u>Section</u> shall not relieve the Indemnifying Party of its obligations under this Agreement, except to the extent that the Indemnifying Party is prejudiced by such failure to give notice. Within 30 days after receipt of such notice, the Indemnifying Party shall by giving written notice thereof to the Indemnified Party, (a) acknowledge, as between the parties hereto, liability for, and at its option elect to assume the defense of such Third Party Claim at its sole cost and expense or (b) object to the Claim of indemnification set forth in the notice delivered by the Indemnified Party pursuant to the first sentence of this <u>Section 7.8</u> setting forth the grounds therefor; <u>provided</u> that if the Indemnifying Party does not within the same thirty (30) day period give the Indemnified Party written notice acknowledging liability or objecting to such claim and setting forth the grounds therefor, the Indemnifying Party shall be deemed to have acknowledged, as between the parties hereto, its liability to the Indemnified Party for such Third Party Claim. Any contest of a Third Party Claim as to which the Indemnifying Party has elected to assume the defense shall be conducted by attorneys employed by the Indemnifying Party and reasonably satisfactory to the Indemnified Party; <u>provided</u> that the Indemnified Party shall have the right to participate in such proceedings and to be represented by attorneys of its own choosing at the Indemnified Party's sole cost and expense. If the Indemnifying Party assumes the defense of a Third Party Claim, the Indemnifying Party may settle or compromise the Claim without the prior written consent of the Indemnified Party; <u>provided</u> that the Indemnifying Party may not agree to any such settlement pursuant to which any remedy or relief, other than monetary damages for which the Indemnifying Party shall be responsible hereunder, shall be applied to or against the Indemnified Party, without the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld. If the Indemnifying Party does not assume the defense of a Third Party Claim for which it has acknowledged liability for indemnification under <u>ARTICLE 7</u>, the Indemnified Party may require the Indemnifying Party to reimburse it on a current basis for its reasonable expenses of investigation, reasonable attorney's fees and reasonable out-of-pocket expenses incurred in defending against such Third Party Claim, and the Indemnifying Party shall be bound by the result obtained with respect thereto by the Indemnified Party; <u>provided</u> that the Indemnifying Party shall not be liable for any settlement effected without its consent, which consent shall not be unreasonably withheld. The Indemnifying Party shall pay to the Indemnified Party in cash the amount for which the Indemnified Party is entitled to be indemnified (if any) within 15 days after the final resolution of such Third Party Claim (whether by the final nonappealable judgment of a court of competent jurisdiction or otherwise), or, in the case of any Third Party Claim as to which the Indemnifying Party has not acknowledged liability, within 15 days after such Indemnifying Party's objection has been resolved by settlement, compromise or the final nonappealable judgment of a court of competent jurisdiction.

**7.9** **Limitations on Indemnification**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **De Minimis Claims**. No Indemnifiable Loss shall be taken into account in determining whether the Basket has been met unless the amount of such individual Loss exceeds Ten Thousand Dollars ($10 000) (the "***De Minimis Amount***"). Any Loss less than the De Minimis Amount shall be disregarded for all purposes of this <u>ARTICLE 7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Basket**. No Party shall have any liability for Indemnifiable Losses under this <u>ARTICLE 7</u> until the aggregate amount of all Indemnifiable Losses of such type that individually exceed the De Minimis Amount incurred by the Indemnified Party exceeds One Hundred Thousand Dollars ($100,000) (the "***Basket***"); after which the Indemnifying Party shall be liable only for the amount of Indemnifiable Losses in excess of such Basket; provided that this limitation shall not apply to (i) any Indemnifiable Loss resulting from such Party's Fraud, knowing misrepresentation, or willful misconduct, or (ii) any obligation to pay or perform the Parent Liabilities or Spinco Liabilities expressly assumed hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Cap.** The maximum aggregate liability of any Indemnifying Party under this <u>ARTICLE 7</u> shall not exceed Five Million Dollars ($5,000,000) (the "***Cap***"); provided that this limitation shall not apply to (i) any Indemnifiable Loss resulting from such Party's Fraud, knowing misrepresentation, or willful misconduct, or (ii) any obligation to pay or perform the Parent Liabilities or Spinco Liabilities expressly assumed hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **No Duplication**. The De Minimis Amount, Basket, and Cap shall apply on an aggregate basis across all Claim for indemnification under this Agreement and the Ancillary Agreements, and no Party shall be entitled to duplicate recoveries for the same Indemnifiable Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No claim for indemnification under this <u>ARTICLE 7</u> may be made unless written notice of such Claim is given by the Indemnified Party to the Indemnifying Party prior to the expiration of the applicable survival period for the underlying representation, warranty, covenant, or agreement as set forth in <u>Section 2.7(d)</u>; provided that any Claim properly made in accordance with this <u>ARTICLE 7</u> before the expiration of the applicable survival period shall survive until such Claim is fully and finally resolved. For the avoidance of doubt, nothing in this <u>Section 7.9</u> shall limit or restrict any Party's rights or obligations with respect to any covenant or agreement that by its terms survives the Effective Time or to any Claim based on Fraud or intentional misrepresentation.

**ARTICLE 8<u><br> ACCOUNTING MATTERS; TRANSITION SERVICES</u>**

**8.1 Intercompany Accounts**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Intercompany Account outstanding immediately prior to the Effective Time, in any general ledger account of Parent, Spinco or any of their respective Affiliates, other than those set forth on <u>Schedule 8.1</u> of the Confidential Disclosure Memorandum, shall be satisfied and/or settled by the relevant members of the Parent Group and Spinco no later than the Effective Time by (i) forgiveness by the relevant obligor, (ii) one or a related series of distributions of capital, or (iii) cash payment by the relevant obligor to the relevant obligee, in each case as agreed to by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent Intercompany Accounts are not satisfied in accordance with <u>Section 8.1</u>, each Intercompany Account outstanding immediately prior to the Effective Time under any of the general ledger accounts of Parent, Spinco or any of their respective Affiliates set forth on <u>Schedule 8.1</u> of the Confidential Disclosure Memorandum shall continue to be outstanding after the Effective Time and thereafter (i) shall be an obligation of the relevant Party (or the relevant member of such Party's Group), each responsible for fulfilling its (or a member of such Party's Group's) obligations in accordance with the terms and conditions applicable to such obligation, and (ii) shall be for each relevant Party (or the relevant member of such Party's Group) an obligation to a third-party and shall no longer be an Intercompany Account.

**8.2 Transition Services Agreement**. All matters relating to the provision of support and other services by the Parent Group to Spinco after the Effective Time covered by the Transition Services Agreement, other than as provided in <u>Section 9.4</u>, shall be governed exclusively by the Transition Services Agreements substantially in the form of <u>Exhibit C</u> hereto, except as may be expressly stated herein. In the event of any inconsistency with respect to such matters between the Transition Services Agreement and this Agreement or any Ancillary Agreement, the Transition Services Agreement shall govern to the extent of the inconsistency.

**ARTICLE 9<u><br> CONFIDENTIALITY; PRIVILEGE</u>**

**9.1 Confidentiality**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any termination of this Agreement, the Parties shall hold, and shall cause each of their respective subsidiaries to hold, and shall each cause their respective officers, employees, agents, consultants and advisors to hold, in strict confidence, and not to disclose or release or use, for any ongoing or future commercial purpose, without the prior written consent of the other Party, any and all Confidential Information concerning any other Party; <u>provided</u>, that the Parties may disclose, or may permit disclosure of, Confidential Information (i) to their respective auditors, attorneys, financial advisors, bankers and other appropriate consultants and advisors who have a need to know such information for our auditing and other non-commercial purposes and are informed of their obligation to, and agree to, hold such information confidential to the same extent as is applicable to the Parties and in respect of whose failure to comply with such obligations, the applicable Party will be responsible, (ii) if the Parties or any of their respective subsidiaries are required or compelled to disclose any such Confidential Information by judicial or administrative process or by other requirements of Law or stock exchange rule, (iii) as required in connection with any legal or other proceeding by one Party against any other Party, or (iv) as necessary in order to permit a Party to prepare and disclose its financial statements, or other required disclosures; <u>provided</u>, <u>further</u>, that each Party (and members of its Group as necessary) may use, or may permit use of, Confidential Information of the other Party in connection with such first Party performing its obligations, or exercising its rights, under this Agreement or any Ancillary Agreement. Notwithstanding the foregoing, in the event that any demand or request for disclosure of Confidential Information is made pursuant to clause (iii) above, each Party, as applicable and to the extent not prohibited by any applicable Laws, shall promptly notify the other of the existence of such request or demand and shall provide the other a reasonable opportunity to seek an appropriate protective order or other remedy, which such Parties will cooperate in obtaining. In the event that such appropriate protective order or other remedy is not obtained, the Party whose Confidential Information is required to be disclosed shall or shall cause the other applicable Party or Parties to furnish, or cause to be furnished, only that portion of the Confidential Information that is legally required to be disclosed and shall take commercially reasonable steps to ensure that confidential treatment is accorded such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary set forth herein, (i) the Parties shall be deemed to have satisfied their obligations hereunder with respect to Confidential Information if they exercise the same degree of care (but no less than a reasonable degree of care) as they take to preserve confidentiality for their own similar information and (ii) confidentiality obligations provided for in any agreement between each Party or its subsidiaries and their respective employees shall remain in full force and effect. Notwithstanding anything to the contrary set forth herein, Confidential Information of any Party in the possession of and used by any other Party as of the Effective Time may continue to be used by such Party in possession of the Confidential Information in and only in the operation of the Parent Business or the Spinco Business, as the case may be; <u>provided</u>, such Confidential Information may be used only so long as the Confidential Information is maintained in confidence and not disclosed in violation of <u>Section 9.1(a)</u>. Such continued right to use may not be transferred (directly or indirectly) to any third party without the prior written consent of the applicable Party, except pursuant to <u>Section 9.2(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Party acknowledges that it and the other members of its Group may have in their possession confidential or proprietary information of third parties that was received under confidentiality or non-disclosure agreements with such third party prior to the Effective Time. Such Party will hold, and will cause the other members of its Group and their respective representatives to hold, in strict confidence the confidential and proprietary information of third parties to which they or any other member of their respective Groups has access, in accordance with the terms of any agreements entered into prior to the Effective Time between one or more members of the such Party's Group (whether acting through, on behalf of, or in connection with, the separated businesses) and such third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the written request of a Party, the other Party shall promptly, (i) deliver to such requesting Party all original Confidential Information (whether written or electronic) concerning such requesting Party and/or its subsidiaries, and (ii) if specifically requested by such requesting Party, destroy any copies of such Confidential Information (including any extracts there from). Upon the written request of such requesting Party, the other Party shall cause one of its duly authorized officers to certify in writing to such requesting Party that the requirements of the preceding sentence have been satisfied in full.

**9.2 Privileged Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties recognize that legal and other professional services that have been and will be provided prior to the Effective Time have been and will be rendered for the collective benefit of each of the members of the Parent Group and Spinco, and that each of the members of the Parent Group and Spinco should be deemed to be the client with respect to such pre-separation services for the purposes of asserting all privileges which may be asserted under applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties recognize that legal and other professional services will be provided following the Effective Time which will be rendered solely for the benefit of Parent or Spinco, as the case may be. With respect to such post-separation services, the Parties agrees 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;(i) Parent shall be entitled, in perpetuity, to Control the assertion or waiver of all privileges in connection with privileged information which relates solely to the Parent Business, whether or not the privileged information is in the possession of or under the Control of Parent or Spinco. Parent shall also be entitled, in perpetuity, to Control the assertion or waiver of all privileges in connection with privileged information that relates solely to the subject matter of any Claims constituting Parent Liabilities, now pending or which may be asserted in the future, in any lawsuits or other proceedings initiated against or by Parent, whether or not the privileged information is in the possession of or under the Control of Parent or Spinco; 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;(ii) Spinco shall be entitled, in perpetuity, to Control the assertion or waiver of all privileges in connection with privileged information which relates solely to the Spinco Business, whether or not the privileged information is in the possession of or under the Control of Parent or Spinco. Spinco shall also be entitled, in perpetuity, to Control the assertion or waiver of all privileges in connection with privileged information that relates solely to the subject matter of any Claims constituting Spinco Liabilities, now pending or which may be asserted in the future, in any lawsuits or other proceedings initiated against or by Spinco, whether or not the privileged information is in the possession of or under the Control of Parent or Spinco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Parties agree that they shall have a shared privilege, with equal right to assert or waive, subject to the restrictions in this <u>Section 9.2</u>, with respect to all privileges not allocated pursuant to the terms of <u>Section 9.2(b)</u>. All privileges relating to any Claims, proceedings, litigation, disputes, or other matters which involve both Parent and Spinco in respect of which both Parties retain any responsibility or Liability under this Agreement, shall be subject to a shared privilege among them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Party may waive any privilege which could be asserted under any applicable Law, and in which any other Party has a shared privilege, without the consent of the other Party, which shall not be unreasonably withheld or delayed or as provided in subsections (e) or (f) below. Consent shall be in writing, or shall be deemed to be granted unless written objection is made upon the Party requesting such consent within twenty (20) days after notice s given to the other Party. Each Party shall use its reasonable best efforts to preserve any privilege held by the other party if that privilege is a shared privilege or has been allocated to the other party pursuant to <u>Section 9.2(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of any litigation or dispute between or among any of the Parties, or any members of their respective Groups, either such Party may waive a privilege in which the other Party or member of such Group has a shared privilege, without obtaining the consent of the other Party; <u>provided</u>, that such waiver of a shared privilege shall be effective only as to the use of information with respect to the litigation or dispute between the relevant Parties and/or the applicable members of their respective Group's, and shall not operate as a waiver of the shared privilege with respect to third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If a dispute arises between the Parties or their respective subsidiaries regarding whether a privilege should be waived to protect or advance the interest of either Party, each Party agrees that it shall negotiate in good faith, shall endeavor to minimize any prejudice to the rights of the other Party, and shall not unreasonably withhold consent to any request for waiver by the other Party. Each Party specifically agrees that it will not withhold consent to waiver for any purpose except to protect its own legitimate interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Upon receipt by either Party or by any subsidiary thereof of any subpoena, discovery or other request which arguably calls for the production or disclosure of information subject to a shared privilege or as to which the other Party has the sole right hereunder to assert a privilege, or if either Party obtains knowledge that any of its or any of its subsidiaries' current or former directors, officers, agents or employees have received any subpoena, discovery or other requests which arguably calls for the production or disclosure of such privileged information, such Party shall promptly notify the other Party of the existence of the request and shall provide the other Party a reasonable opportunity to review the information and to assert any rights it or they may have under this <u>Section 9.2</u> or otherwise to prevent the production or disclosure of such privileged information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The transfer of all Information pursuant to this Agreement is made in reliance on the agreement of Parent and Spinco as set forth in <u>Section 9.1</u> and <u>Section 9.2</u>, to maintain the confidentiality of privileged information and to assert and maintain all applicable privileges. Nothing provided for herein or in any Ancillary Agreement shall be deemed a waiver of any privilege that has been or may be asserted under this Agreement or otherwise.

**9.3 Ownership of Information**. Any Information owned by one Party or any of its subsidiaries that is provided to a requesting Party pursuant to <u>ARTICLE 7</u> or this <u>ARTICLE 9</u> shall be deemed to remain the property of the providing party. Unless specifically set forth herein, nothing contained in this Agreement shall be construed as granting or conferring rights of license or otherwise in any such information.

**9.4 Separation of Data**. Spinco acknowledges and agrees that Parent may, after the Effective Time, delete or cause to be deleted any Information which does not relate to the Spinco Business, which is contained in, stored in or accessible through any Software provided to Spinco under the Transition Services Agreement or otherwise. The foregoing will not be deemed to be a violation of any provision of this Agreement or the Transition Services Agreement. The provisions of <u>Section</u> 9.1 apply to Spinco's use of any such Information prior to its deletion.

**ARTICLE 10<u><br> MISCELLANEOUS</u>**

**10.1 Expenses**. Except as set forth on <u>Schedule 10.1</u> of the Confidential Disclosure Memorandum or as specifically provided in this Agreement or any Ancillary Agreement, each Party shall bear its own legal, accounting, advisory, and other professional fees, costs, and expenses in connection with this Agreement and the transactions contemplated hereby; **provided, however**, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Darley Fees</u>. Parent shall be solely responsible for all fees and expenses of Timothy A. Darley, PLLC (including any related consulting or advisory fees) incurred in connection with the transactions contemplated hereby, provided that such fees shall not exceed $85,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Tax Legal Costs</u>. Spinco shall be responsible for the lesser of (i) fifty percent (50%), or (ii) $100,000, of all reasonable and documented fees and expenses incurred by Parent in connection with (A) structuring and documenting the transactions intended to qualify under Sections 355 and 368(a)(1)(D) of the Code, and (B) preparing and delivering any related tax opinions and supporting tax representation letters or officer certificates (collectively, the "***Tax Legal Cost***s"). Spinco shall reimburse Parent for its portion of the Tax Legal Costs within thirty (30) days following Spinco's receipt of documentation of such Tax Legal Costs. Parent shall be and remain responsible for all Tax Legal Costs not borne by Spinco hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment Mechanics</u>. Each Party shall pay its own Tax Legal Costs as incurred and the Parties shall true-up quarterly so that the aggregate Tax Legal Costs are borne 50% by Parent and 50% by Spinco, based on an exchange of reasonable supporting invoices. Any true-up amounts shall be paid within 15 Business Days after invoice delivery. No Party shall withhold or deduct any amounts from such payments unless required by Law (and then only with customary gross-up discussions in good faith).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Survival</u>. The obligations in this <u>Section 10.1</u> shall survive the Effective Time.

**10.2 Notices**. All notices and communications under this Agreement shall be in writing and shall be deemed to have been given (a) when received, if such notice or communication is delivered by facsimile, email or other means of electronic transmission, hand delivery or overnight courier, and, (b) three (3) business days after mailing if such notice or communication is sent by United States registered or certified mail, return receipt requested, first class postage prepaid. All notices and communications, to be effective, must be properly addressed to the party to whom the same is directed at its address as follows:

If to Parent, to: Tectonic Financial, Inc.

600 Travis Street, 59<sup>th</sup> Floor<br> Houston, TX 77002<br> Attention: A. Haag Sherman<br> Email: hsherman@tectonicfinancial.com

With copies to: Hunton Andrews Kurth LLP

1445 Ross Avenue, Suite 3700<br> Dallas, TX 75202<br>

---

| | |
|:---|:---|
| Attention: | Alex McGeoch |
|  | Beth A. Whitaker |
| Email: | amcgeoch@hunton.com |
|  | bwhitaker@hunton.com |

---

If to Spinco, to: Tectonic Advisors, LLC

17 Cowboys Way, Suite 300

Frisco, Texas 75034<br> Attention: Hunter Satterfield<br> Email: hunter@cainwatters.com

With copies to: Winstead PC

---

| | |
|:---|:---|
| 2728 N. Harwood Street, Suite 500 | 2728 N. Harwood Street, Suite 500 |
| Dallas, Texas 75201 | Dallas, Texas 75201 |
| Attention: | Bill Ouska |
|  | Trip Dyer |
| Email: | bouska@winstead.com |
|  | pdyer@winstead.com |

---

If to the TA Continuing Shareholders:

Mr. Hunter Satterfield

17 Cowboys Way, Suite 300

Frisco, Texas 75034<br> Email: hunter@cainwatters.com

With copies to: Winstead PC

---

| | |
|:---|:---|
| 2728 N. Harwood Street, Suite 500 | 2728 N. Harwood Street, Suite 500 |
| Dallas, Texas 75201 | Dallas, Texas 75201 |
| Attention: | Bill Ouska |
|  | Trip Dyer |
| Email: | bouska@winstead.com |
|  | pdyer@winstead.com |

---

Either Party may, by written notice delivered to the other Party in accordance with this <u>Section 10.2</u>, change the address to which delivery of any notice shall thereafter be made.

**10.3 Amendment and Waiver**. This Agreement may not be altered or amended, nor may any rights hereunder be waived, except by an instrument in writing executed by the Party or Parties to be charged with such amendment or waiver. No waiver of any term, provision or condition of or failure to exercise or delay in exercising any rights or remedies under this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, provision, condition, right or remedy or as a waiver of any other term, provision or condition of this Agreement.

**10.4 Entire Agreement**. This Agreement, together with the Ancillary Agreements, constitutes the entire understanding of the Parties hereto with respect to the subject matter hereof, superseding all negotiations, prior discussions and prior agreements and understandings relating to such subject matter. To the extent that the provisions of this Agreement are inconsistent with the provisions of any Ancillary Agreement with respect to the subject matter thereof, the provisions of such Ancillary Agreement shall prevail to the extent of the inconsistency.

**10.5 Consolidation, Merger, Etc.; Parties in Interest; Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither Party (referred to in this <u>Section 10.5(a)</u> as a "***Transferring Party***") shall consolidate with or merge into any other entity or convey, transfer or lease all or any substantial portion of its properties and assets to any entity, unless, in each case, the other party to such transaction expressly assumes, by a written agreement, executed and delivered to the other Party hereto, in form reasonably satisfactory to such other Party, all of the Liabilities of the Transferring Party under this Agreement and the Ancillary Agreements and the due and punctual performance or observance of every agreement, obligation and covenant of this Agreement and the Ancillary Agreements on the part of the Transferring Party to be performed or observed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither of the Parties hereto may assign its rights or delegate any of its duties under this Agreement without the prior written consent of each other Party. This Agreement shall be binding upon, and shall inure to the benefit of, the Parties hereto and their respective successors and permitted assigns. Nothing contained in this Agreement, express or implied, is intended to confer any benefits, rights or remedies upon any Person other than members of the Parent Group and Spinco and the Parent Indemnitees and Spinco Indemnitees under <u>ARTICLE 7</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) After the Distribution, this Agreement may not be terminated except by an agreement in writing signed by the Parties; <u>provided</u>, <u>however</u>, that <u>ARTICLE 7</u> shall not be terminated or amended after the Distribution in respect of any Parent Indemnitee or Spinco Indemnitee without the consent of such Person.

**10.6 Further Assurances and Consents**. In addition to the actions specifically provided for elsewhere in this Agreement, each of the Parties hereto will use commercially reasonable efforts to (a) execute and deliver such further instruments and documents and take such other actions as any other Party may reasonably request in order to effectuate the purposes of this Agreement and to carry out the terms hereof and (b) take, or cause to be taken, all actions, and do, or cause to be done, all things, reasonably necessary, proper or advisable under applicable laws, regulations and agreements or otherwise to consummate and make effective the transactions contemplated by this Agreement, including, without limitation, using commercially reasonable efforts to obtain any Consents and approvals, make any filings and applications and remove any Liens, Claims, equity or other encumbrance on an Asset of the other Party necessary or desirable in order to consummate the transactions contemplated by this Agreement; <u>provided</u> that no Party hereto shall be obligated to pay any consideration therefor (except for filing fees and other similar charges) to any third party from whom such Consents, approvals and amendments are requested or to take any action or omit to take any action if the taking of or the omission to take such action would be unreasonably burdensome to the Party or its Group or the business thereof.

**10.7 Severability**. In the event that 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 contained herein shall not in any way be affected or impaired thereby, and the Parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

**10.8 Governing Law**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be construed and enforced in accordance with, and the rights of the Parties shall be governed by, the laws of the State of Texas, without giving effect to the conflict of laws principles thereof. Each Party irrevocably agrees that any legal action, suit, or proceeding arising out of or relating to this Agreement involving one or more Claims that the Party initiating suit shall submit the Claim(s) to arbitration, as set forth in <u>Section 10.15</u>, except for a Claim required to be adjudicated under Section 4.3(c) ("***Section 4.3(c) Claim***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the party asserting a Section 4.3(c) Claim believes in good faith to satisfy the jurisdictional requirements for adjudication by the Texas Business Court (Tex. Govt. Code 25A), such Claim shall be initiated in and determined by the Texas Business Court for the First Judicial Division with venue in Collin County, Texas. The Parties further irrevocably consent to the Texas Business Court's exercise of supplemental jurisdiction over any other Claim (s) or counterclaim(s) that form part of the same case or controversy, regardless of whether the Texas Business Court would have initial jurisdiction over such Claim(s) or counterclaim(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that the Section 4.3(c) Claim does not satisfy the jurisdictional requirements for adjudication by the Texas Business Court, each Party irrevocably agrees that any such legal action, suit, or proceeding relating to such Section 4.3(c) Claim shall be initiated in the United States District Court for the Eastern District of Texas, Sherman Division, assuming jurisdiction exists in that court. If not, and only if not, then any such legal action, suit, or proceeding relating to such Section 4.3(c) Claim shall be brought in the district or county courts at law of Collin County, Texas. However, if facts establishing the Texas Business Court's jurisdiction are discovered after a legal action, suit, or proceeding relating to such Section 4.3(c) Claim is initiated in a different court, each Party agrees that it shall join the other Party in filing an agreed notice of removal to the Texas Business Court, so long as the request is not made later than the thirtieth (30<sup>th</sup>) day after the date the Party requesting removal discovered facts establishing the Texas Business Court's jurisdiction over the legal action, suit, or proceeding. Failure to request removal of a dispute within thirty (30) days after the date such Party discovered facts establishing the Texas Business Court's jurisdiction shall not prevent the non-requesting Party from joining the requesting Party in filing an agreed notice of removal to the Texas Business Court, though the non-requesting Party shall have no obligation to do so.

**10.9 Counterparts**. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original instrument, but all of which together shall constitute one and the same Agreement.

**10.10 Third Party Beneficiaries**. Except as provided in <u>ARTICLE 7</u> and except as specifically provided in any Ancillary Agreement, this Agreement is solely for the benefit of the Parties and should not be deemed to confer upon third parties any remedy, Claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement.

**10.11 Specific Performance**. The Parties agree that irreparable damage would occur in the event that the provisions of this Agreement were not performed in accordance with their specific terms. Accordingly, it is hereby agreed that the Parties shall be entitled to provisional or temporary injunctive relief in accordance therewith in any court of the United States, this being in addition to any other remedy or relief to which they may be entitled.

**10.12 Limitations of Liability**. Notwithstanding anything in this Agreement to the contrary, no Indemnifying Party shall be liable to an Indemnified Party for any special, indirect, incidental, punitive, consequential, exemplary, statutorily-enhanced or similar damages in excess of compensatory damages (provided that any such liability with respect to a Third Party Claim shall be considered direct damages) arising in connection with the transactions contemplated by this Agreement or the Ancillary Agreements.

**10.13 Force Majeure**. No Party (or any Person acting on its behalf) shall have any liability or responsibility for failure to fulfill any obligation (other than a payment obligation) under this Agreement or, unless otherwise expressly provided therein, any Ancillary Agreement, so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event: (a) notify the other Party of the nature and extent of any such Force Majeure condition, and (b) use due diligence to remove any such causes and resume performance under this Agreement as soon as reasonably practicable.

**10.14 Construction**. The Parties have participated jointly in the negotiation and drafting of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against a party drafting or causing any instrument to be drafted.

**10.15 Disputes.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in any Ancillary Agreement, all disputes, controversies or Claim between members of the Parent Group and Spinco, which are parties to this Agreement or any Ancillary Agreement, arising out of or relating to this Agreement or any Ancillary Agreement or the performance by the parties of its or their terms, whether based on contract, tort, statute or otherwise, including, but not limited to, disputes in connection with claims by third parties (collectively, "***Disputes***"), shall be resolved only in accordance with the provisions of this <u>Section 10.15</u>; <u>provided</u>, <u>however</u>, that nothing contained herein shall preclude any party to a Dispute from seeking or obtaining (i) injunctive relief to prevent an actual or threatened breach of any of the provisions of this Agreement or any Ancillary Agreement, or (ii) equitable or other judicial relief to enforce the provisions of this <u>Section 10.15</u> or to preserve the status quo pending resolution of Disputes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any party or parties to a Dispute of either Group may give the parties to the Dispute of the other Group written notice of the Dispute initiating the procedures hereunder. Within ten days after delivery of the notice of a Dispute, the receiving parties shall submit to the other a written response. The notice and the response shall include a statement of each party's respective position and a summary of arguments supporting that position and the name and title of the executive who will represent the claimants and of any other individual who will accompany such executive in resolving the Dispute. Within twenty (20) days after delivery of the first notice, the executives of both Groups shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, and shall negotiate in good faith to attempt to resolve the Dispute. All reasonable requests for information made by one party to the another will be honored. If the Dispute has not been resolved by negotiation within forty (40) days of the notice of the Dispute, the board of directors of Parent and Spinco shall appoint independent committees that will negotiate in good faith to attempt to resolve the Dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Dispute has not been resolved by negotiation within sixty (60) days of the notice of Dispute, the Dispute may, by mutual consent of both Parties, be submitted for resolution by a panel of three arbitrators conducted in accordance with the CPR Rules for Non-Administered Arbitration or AAA Rules (the "***Rules***"), as modified by this <u>Section 10.15</u>. The claimants acting jointly on the one hand, and the respondents acting jointly, on the other hand, shall each appoint one arbitrator within fourteen (14) days after the claimants give an arbitration notice. The two arbitrators so appointed shall designate the third arbitrator by mutual agreement within 30 days after the arbitration notice is given. If the two arbitrators so appointed fail to designate the third arbitrator within such period, then any Party may request the International Institute for Conflict Prevention & Resolution ("***CPR***") to appoint the third arbitrator within fourteen (14) days after such request. The third arbitrator shall be a lawyer licensed to practice in the State of Texas who shall not be related to, employed by, affiliated with or have had a substantial or ongoing business relationship with either Group. Notwithstanding the foregoing, if the amount in dispute is less than $5,000,000, then the claimants and respondents shall appoint, together, a single arbitrator, reasonably acceptable to them, licensed to practice in the State of Texas who shall not be related to, employed by, affiliated with or have had a substantial or ongoing business relationship with either Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The arbitration shall be conducted in Collin County, Texas (or at any other place agreed upon by the parties and the arbitrators). The parties will facilitate the arbitration by: (i) making available to one another and to the arbitrators for examination, inspection and extraction all documents, books, records and personnel under their Control if determined by the arbitrators to be relevant to the dispute; (ii) conducting arbitration hearings to the greatest extent possible on successive days; and (iii) observing strictly the time periods established by this <u>Section 10.15</u>, the Rules or by the arbitrators for submission of evidence or briefs. All issues in connection with the Dispute, including procedural issues, shall be decided by the concurrence of at least two arbitrators, and all decisions by the arbitrators shall be accompanied by a written opinion setting forth the findings of fact and conclusions of law relied upon in reaching the decision. The panel of arbitrators shall decide the issues submitted to it in accordance with the language and commercial purposes of this Agreement or the relevant Ancillary Agreement (as applicable); <u>provided</u> that all questions of law shall be governed by the internal laws of the State of Texas, without regard to its conflict of laws rules. The arbitrators' decision shall be final and binding as to all matters at issue in the Dispute; <u>provided</u>, <u>however</u>, if necessary such decision may be enforced by either party in any court having jurisdiction over the parties or the subject matter of the Dispute. Unless the arbitrators shall assess the costs and expenses of the arbitration proceeding and of the Parties differently, each Party shall pay its costs and expenses incurred in connection with the arbitration proceeding, and the costs and expenses of the arbitrators shall be shared equally by the Parties.

 

*[Signatures on the Following Pages]*

 

**In Witness Whereof,** the undersigned have caused this Separation Agreement and Plan of Distribution to be executed by their duly authorized officers as of the date first set forth above.

---

| | |
|:---|:---|
| **PARENT**: | **PARENT**: |
| Tectonic Financial, Inc. | Tectonic Financial, Inc. |
| By: | /s/ A. Haag Sherman |
| Name: | A. Haag Sherman |
| Title: | Chief Executive Officer |
| **SPINCO**: | **SPINCO**: |
| Tectonic Advisors, LLC | Tectonic Advisors, LLC |
| By: | /s/ Michelle Baird |
| Name: | Michelle Baird |
| Title: | Manager and Chief Financial Officer |

---

*[Signature Page to Separation Agreement and Plan of Distribution]*

**In Witness Whereof,** each of the undersigned, as a **TA Continuing Shareholder**, hereby executes the Separation Agreement and Plan of Distribution as of the date first set forth above.

---

| | |
|:---|:---|
| **TA CONTINUING SHAREHOLDERS**: | **TA CONTINUING SHAREHOLDERS**: |
| **Brian R. Bortz** | **Brian R. Bortz** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Brian R. Bortz |
| Name: | Brian R. Bortz |
| **Steven L. Cain** | **Steven L. Cain** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Steven L. Cain |
| Name: | Steven L. Cain |
| **Steven B. Clapp** | **Steven B. Clapp** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Steven B. Clapp |
| Name: | Steven B. Clapp |
| **Judson S. Crawford** | **Judson S. Crawford** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Judson S. Crawford |
| Name: | Judson S. Crawford |
| **Timothy B. Greaves** | **Timothy B. Greaves** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Timothy B. Greaves |
| Name: | Timothy B. Greaves |

---

*[Signature Page to Separation Agreement and Plan of Distribution]*

---

| | |
|:---|:---|
| **Toni D. Lee** | **Toni D. Lee** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Toni D. Lee |
| Name: | Toni D. Lee |
| **Charles Loretto** | **Charles Loretto** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Charles Loretto |
| Name: | Charles Loretto |
| **Thomas R. Sanders** | **Thomas R. Sanders** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Thomas R. Sanders |
| Name: | Thomas R. Sanders |
| **Hunter Satterfield** | **Hunter Satterfield** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Hunter Satterfield |
| Name: | Hunter Satterfield |
| **Daniel C. Wicker** | **Daniel C. Wicker** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Daniel C. Wicker |
| Name: | Daniel C. Wicker |

---

*[Signature Page to Separation Agreement and Plan of Distribution]*

**JOINDER AGREEMENT AND CONSENT**

The undersigned, Cain Watters & Associates, LLC ("***CWA***"), hereby acknowledges and agrees that, solely with respect to Section 4.3(b) (Mutual Non-Solicitation) of the Separation Agreement and Plan of Distribution dated as of December 19, 2025 (the "***Agreement***"), CWA shall be deemed to be, and shall comply with the obligations applicable to, a member of the Spinco Group (as such term is defined in the Agreement) for such limited purpose.

CWA further acknowledges and agrees that, to the extent Section 4.3(b) affords protections to the Spinco Group, CWA shall be an intended third-party beneficiary of Section 4.3(b) with full rights to enforce such protections against Parent and the Parent Group. Likewise, CWA agrees that any breach or threatened breach of Section 4.3(b) by CWA shall entitle the harmed Party to pursue the remedies available under the Agreement for violations of Section 4.3(b), including injunctive or equitable relief if provided therein.

Except solely as expressly provided above, nothing in this Joinder shall be deemed to (i) make CWA a party to the Agreement, (ii) impose upon CWA any obligations under the Agreement other than those specified herein, (iii) confer upon CWA any rights under the Agreement or (iv) amend any agreement to which CWA is a party.

Executed as of December 19, 2025.

---

| | |
|:---|:---|
| **CAIN WATTERS & ASSOCIATES, LLC** | **CAIN WATTERS & ASSOCIATES, LLC** |
| By: | /s/ Daniel C. Wicker |
| Name: | Daniel C. Wicker |
| Title: | President |

---

*[Signature Page to Joinder Agreement and Consent]*

## Exhibit 10.1

**Exhibit 10.1**

**TAX MATTERS AGREEMENT**

**DATED AS OF DECEMBER 19, 2025<br> BY AND BETWEEN**

**TECTONIC FINANCIAL, INC.**

**AND**

**TECTONIC ADVISORS, LLC**

**AND**

**THE TA CONTINUING SHAREHOLDERS**

**TAX MATTERS AGREEMENT**

This TAX MATTERS AGREEMENT (this **"Agreement"**) is entered into as of December 19, 2025, by and between Tectonic Financial, Inc., a Texas corporation (**"Parent"**), Tectonic Advisors, LLC, a Texas limited liability company and, prior to the Distribution (as defined below), a wholly owned subsidiary of Parent (**"Spinco"**) (Parent and Spinco are sometimes referred to together as the **"Companies"** and, as the context requires, individually as the **"Company"**), and the TA Continuing Shareholders (as defined below).

**RECITALS**

WHEREAS, the Board of Directors of Parent determined it appropriate and desirable to completely separate Spinco and the Spinco Business from Parent;

WHEREAS, through the Distribution Time (defined below), Parent has been the common parent of an affiliated group of corporations within the meaning of Section 1504 of the Code, which has elected to file consolidated tax returns for U.S. federal income tax purposes;

WHEREAS, pursuant to the Separation and Distribution Agreement, pursuant to which (a) before the Distribution Time, Parent and its Affiliates, as the case may be, will transfer, or cause Spinco to transfer, certain assets to Spinco and shall cause Spinco to assume certain liabilities, (b) before the Distribution Time, for U.S. federal income tax purposes, Parent will cause Spinco to elect to be treated for U.S. federal income tax purposes to convert from an entity disregarded from its owner to an association taxable as a corporation, which is intended to be treated as a deemed contribution by Parent of all of the assets of Spinco to a new corporation in exchange for all of the stock of SpinCo (the "**Contribution**"), and, as a result of the Contribution, Spinco joined the consolidated group of Parent as of the date of the Contribution, (c) before the Distribution Time, in connection with the Separation, Spinco will take all such actions as shall be necessary to obtain the financing and shall use the proceeds of the financing to pay the cash in the amount of proceeds to Parent, and (d) at the Distribution Time, Parent shall distribute to certain of its shareholders (the "**TA Continuing Shareholders**") all of the outstanding common stock in Spinco in exchange for certain common shares held by the TA Continuing Shareholders (the "**Distribution**");

WHEREAS, for U.S. federal income tax purposes, it is intended that the Contribution and the Distribution, taken together, shall qualify as a "reorganization" under Sections 355(a) (the "**Split-Off**") and 368(a)(1)(D) of the Code (the "**D Reorganization**"**)**;

WHEREAS, as a result of the Distribution, at the end of the day on which the Distribution occurs, on or around January 5, 2026 (the "**Effective Date**"), Spinco will cease to be a member of the affiliated group (within the meaning of Section 1504 of the Code and Treasury Regulations Section 1.1502-76(b)) of which Parent is the common parent (the **"Deconsolidation"**);

WHEREAS, as a result of the Distribution, (a) on the date after the Distribution, Spinco will become wholly owned by the TA Continuing Shareholders, (b) as of the month-end immediately preceding the Effective Date (the "**Cut Off Date**"), Spinco will receive all of the earnings associated with the Spinco Business, and (c) after the Cut Off Date, Parent and the Parent Group will not receive any earnings associated with the Spinco Business; and

WHEREAS, the Parties wish to (a) provide for the payment of Tax liabilities and entitlement to refunds thereof, (b) allocate responsibility for, and cooperation in, the filing of Tax Returns, and provide for certain other matters relating to Taxes, and (c) set forth certain covenants and indemnities relating to the preservation of the qualification statuses of the Split-Off and the D Reorganization;

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

**Section 1.** **<u>Definition of Terms</u>**. For purposes of this Agreement (including the recitals hereof), the following terms have the following meanings, and capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Separation and Distribution Agreement and the Tax Opinion:

**"Active Trade or Business"** means the active conduct (as defined in Section 355(b)(2) of the Code and the corresponding Treasury Regulations) by (i) Spinco of the Spinco Business as conducted immediately prior to the Distribution, and (ii) Parent and its "separate affiliated group" (as defined in Section 355(b)(3)(B) of the Code) of the Parent Business as conducted immediately prior to the Distribution.

**"Adjustment Request"** means any formal or informal claim or request filed with any Tax Authority, or with any administrative agency or court, for the adjustment, refund, or credit of Taxes, including (a) any amended Tax Return claiming adjustment to the Taxes as reported on the Tax Return or, if applicable, as previously adjusted, (b) any claim for equitable recoupment or other offset, and (c) any claim for refund or credit of Taxes previously paid.

**"Affiliate"** means any entity that is directly or indirectly in the "control" of either the person in question or an Affiliate of such person. "Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract or otherwise. The term Affiliate shall refer to an Affiliate of the person in question as determined immediately after the Distribution.

**"Agreement"** shall have the meaning provided in the preamble.

**"Ancillary Agreements"** has the meaning set forth in the Separation and Distribution Agreement.

**"Business Day"** means a day other than a Saturday, a Sunday or a day on which banking institutions located in Plano, Texas or New York, New York are authorized or obligated by law or executive order to close.

**"Code"** means the U.S. Internal Revenue Code of 1986, as amended.

**"Company"** and **"Companies"** shall have the meaning provided in the first sentence of this Agreement.

**"Controlling Party"** shall have the meaning set forth in Section 10.02(e) of this Agreement.

**"Deconsolidation"** shall have the meaning provided in the Recitals.

**"Distribution Date"** means on or around January 5, 2026, the last date on which Spinco qualified as a member of the affiliated group (as defined in Section 1504 of the Code) of which Parent is the common parent.

**"Distribution"** has the meaning set forth in the Separation and Distribution Agreement.

**"Distribution Time"** means at the end of the day on the Distribution Date.

**"D Reorganization"** shall have the meaning set forth in the Recitals.

**"Federal Income Tax"** means any Tax imposed by Subtitle A of the Code, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

**"Federal Other Tax"** means any Tax imposed by the federal government of the United States of America other than any Federal Income Tax, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

**"Federal Taxes"** means any and all Federal Income Tax and Federal Other Tax.

**"Fifty-Percent or Greater Interest"** shall have the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code and the corresponding Treasury Regulations (taking into account Treasury Regulation Section 1.355-8).

**"Filing Date"** shall have the meaning set forth in Section 7.04(d) of this Agreement.

**"Final Determination"** means the final resolution of liability for any Income Tax or Other Tax, which resolution may be for a specific issue or adjustment or for a taxable period, (a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable form under Tax Law, except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent that it reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for refund or the right of the Tax Authority to assert a further deficiency in respect of such issue or adjustment or for such taxable period (as the case may be); (b) by a decision, judgment, decree, or other order by a court of competent jurisdiction, which has become final and unappealable; (c) by a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under applicable Tax Laws; (d) by any allowance of a refund or credit in respect of an overpayment of Income Tax or Other Tax, but only after the expiration of all periods during which such refund may be recovered (including by way of offset) by the jurisdiction imposing such Income Tax or Other Tax; or (e) by any other final disposition, including by reason of the expiration of the applicable statute of limitations or by mutual agreement of the parties.

**"High-Level Dispute"** means any dispute or disagreement (a) relating to liability under Section 7.03 of this Agreement or (b) in which the amount of liability in dispute exceeds $1.0 million.

**"Income Tax"** means any Federal Income Tax or State Income Tax.

**"Indemnitee"** shall have the meaning set forth in Section 13.03 of this Agreement.

**"Indemnitor"** shall have the meaning set forth in Section 13.03 of this Agreement.

**"IRS"** means the Internal Revenue Service, a bureau of the U.S. Treasury Department.

**"Joint Adjustment"** means any proposed adjustment by a Tax Authority or claim for refund asserted in a Tax Contest which is neither a Spinco Adjustment nor a Parent Adjustment.

**"Joint Return"** shall mean any Return of a member of the Parent Group that is not a Separate Return.

**"Non-Controlling Party"** shall have the meaning set forth in Section 10.02(e) of this Agreement.

**"Notified Action"** shall have the meaning set forth in Section 7.03(a) of this Agreement.

**"Other Tax"** means any Federal Other Tax or State Other Tax.

**"Parent"** shall have the meaning provided in the first sentence of this Agreement.

**"Parent Adjustment"** means any proposed adjustment by a Tax Authority or claim for refund asserted in a Tax Contest to the extent Parent would be exclusively liable for any resulting Tax under this Agreement or exclusively entitled to receive any resulting Tax Benefit under this Agreement.

**"Parent Business"** means, collectively, the business of Parent and the TFI Entities (other than Spinco).

**"Parent Federal Consolidated Income Tax Return"** means any Tax Return with respect to Federal Income Tax for the Post-Distribution Parent Affiliated Group.

**"Parent Group"** means Parent and its Affiliates, excluding Spinco.

**"Parent Group Transaction Returns"** shall have the meaning set forth in Section 4.04(b) of this Agreement.

**"Parent Representation Letter"** means the Representation Letter of Parent, signed by A. Haag Sherman, with respect to various factual representations and certifications relating to the Split-Off.

**"Parent Separate Return"** means any Separate Return of Parent or any member of the Parent Group.

**"Parent State Combined Income Tax Return"** means a consolidated, combined or unitary State Income Tax Return that actually includes, by election or otherwise, one or more members of the Parent Group together with Spinco.

**"Past Practices"** shall have the meaning set forth in Section 4.04(a) of this Agreement.

**"Payment Date"** means (i) with respect to any Parent Federal Consolidated Income Tax Return, the due date for any required installment of estimated taxes determined under Section 6655 of the Code, the due date (determined without regard to extensions) for filing the return determined under Section 6072 of the Code, and the date the return is filed, and (ii) with respect to any other Tax Return, the corresponding dates determined under the applicable Tax Law.

**"Payor"** shall have the meaning set forth in Section 5.03(a) of this Agreement.

**"Person"** means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof, without regard to whether any entity is treated as disregarded for Federal Income Tax purposes.

**"Post-Distribution Period"** means any Tax Period beginning on the day after the Distribution Date.

"**Post-Distribution Parent Affiliated Group**" means the affiliated group (as that term is defined in Section 1504 of the Code and the Treasury Regulations thereunder) of which Parent is the common parent following the Distribution.

**"Pre-Distribution Affiliated Group"** means the affiliated group (as that term is defined in Section 1504 of the Code and the Treasury Regulations thereunder) of which Parent is the common parent during the Pre-Distribution Period.

**"Pre-Distribution Period"** means any and all Tax Periods ending on or before the Distribution Date.

**"Privilege"** means any privilege that may be asserted under applicable law, including, any privilege arising under or relating to the attorney-client relationship (including the attorney-client and work product privileges), the accountant-client privilege and any privilege relating to internal evaluation processes.

**"Qualification Status"** means the qualification of the Contribution and the Distribution, taken together, (i) as a transaction that meets the requirements to qualify as a "reorganization" under Section 368(a)(1)(D) of the Code and (ii) as a transaction that meets the requirements to qualify as a distribution of the Spinco Interests to the TA Continuing Shareholders under Section 355(a) of the Code.

**"Required Party"** shall have the meaning set forth in Section 5.03(a) of this Agreement.

**"Responsible Company"** means, with respect to any Tax Return, the Company having responsibility for preparing and filing such Tax Return under this Agreement.

**"Retention Date"** shall have the meaning set forth in Section 9.01 of this Agreement.

**"Separate Return"** means (a) in the case of any Tax Return of Spinco, any such Tax Return that does not include any member of the Parent Group and (b) in the case of any Tax Return of any member of the Parent Group (including any consolidated, combined or unitary return), any such Tax Return that does not include Spinco.

**"Separation and Distribution Agreement"** means the Separation and Distribution Agreement by and between Parent and Spinco dated as of December 19, 2025.

**"Spinco"** shall have the meaning provided in the first sentence of this Agreement.

**"Spinco Adjustment"** means any proposed adjustment by a Tax Authority or claim for refund asserted in a Tax Contest to the extent Spinco would be exclusively liable for any resulting Tax under this Agreement or exclusively entitled to receive any resulting Tax Benefit under this Agreement.

**"Spinco Business"** means, collectively, the business of Spinco.

**"Spinco Capital Stock"** means all classes or series of capital stock of Spinco, including (i) the Spinco Common Stock, (ii) all options, warrants and other rights to acquire such capital stock and (iii) all instruments properly treated as stock in Spinco for U.S. federal income tax purposes.

**"Spinco Carryback"** means any net operating loss, net capital loss, excess tax credit, or other similar Tax item of Spinco which may or must be carried from one Tax Period to another prior Tax Period under the Code or other applicable Tax Law.

**"Spinco Federal Income Tax Return"** shall mean any Tax Return with respect to Federal Income Tax of Spinco.

**"Spinco Representation Letters"** means each of the following representation letters in connection with the rendering of the Tax Opinion: (a) the Representation Letter of Spinco, as signed by Michelle Baird, with respect to various factual representations and certifications relating to the Split-Off and (b) the Representation Letter of Spinco, as signed by Mr. Satterfield, with respect to various factual representations and certifications relating to the Split-Off.

**"Spinco Separate Return"** means any Separate Return of Spinco.

**"Split-Off"** shall have the meaning set forth in the Recitals.

**"Split Parent State Combined Income Tax Return"** shall have the meaning set forth in Section 4.05(b).

**"State Income Tax"** means any Tax imposed by any state of the U.S. or by any political subdivision of any such state which is imposed on or measured by net income, including state and local franchise or similar Taxes measured by net income, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

**"State Other Tax"** means any Tax imposed by any state of the United States or by any political subdivision of any such state other than any State Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

**"State Tax"** means any State Income Taxes or State Other Taxes.

**"Straddle Period**" means a taxable period (or portion thereof) beginning before the Distribution and ending after the Distribution.

**"Subsidiary"** means an entity that is treated as a corporation for U.S. federal income tax purposes, that is an "includable corporation" within the meaning of Section 1504(b) of the Code, and that may be a member of Parent's affiliated group within the meaning of Section 1504(a) of the Code.

**"TA Continuing Shareholders"** shall have the meaning set forth in the Recitals.

**"Tax" or "Taxes"** means any income, gross income, gross receipts, profits, capital stock, franchise, gross margin, net margin, withholding, payroll, social security, workers compensation, unemployment, disability, property, ad valorem*,* stamp, excise, escheat, unrecovered property, severance, occupation, service, sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated or other tax (including any assessment, or other charge in the nature of or in lieu of any tax but excluding, for the avoidance of doubt, any assessment under applicable escheat, abandoned property or unclaimed property laws) imposed by any governmental entity or political subdivision thereof, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

**"Tax Advisor"** means a tax counsel or tax accountant of recognized national standing in the practice of U.S. federal income tax matters.

**"Tax Advisor Dispute"** shall have the meaning set forth in Section 14 of this Agreement.

**"Tax Attribute"** shall mean a net operating loss, net capital loss, investment credit, foreign tax credit, excess charitable contribution, general business credit or any other similar item that could reduce a Tax (but, for the avoidance of doubt, shall not mean any Tax basis).

**"Tax Authority"** means any governmental entity or political or regulatory subdivision thereof that imposes or regulates a Tax and any governmental bureau, agency, department, office, regulatory body, or similar entity to the foregoing responsible for the collection of a Tax or enforcement of a Tax Law.

**"Tax Benefit"** means any refund, credit, or other reduction in otherwise required Tax payments.

**"Tax Contest"** means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of redetermining Taxes (including any administrative or judicial review of any claim for refund).

**"Tax Contest Committee"** shall have the meaning provided in Section 10.02(d) of this Agreement.

**"Tax Item"** means, with respect to any Income Tax, any item of income, gain, loss, deduction, or credit.

**"Tax Law"** means the law of any governmental entity or political subdivision thereof relating to any Tax, including any authoritative judicial ruling or regulatory action with respect thereto.

**"Tax Opinion"** means that certain tax opinion of Hunton Andrews Kurth LLP, dated on or around January 5, 2026 in connection with the Distribution and the D Reorganization.

**"Tax Period"** means, with respect to any Tax, the period for which the Tax is reported as provided under the Code or other applicable Tax Law.

**"Tax Records"** means any Tax Return, Tax Return workpapers, documentation relating to any Tax Contests, and any other books of account or records (whether or not in written, electronic or other tangible or intangible forms and whether or not stored on electronic or any other medium) required to be maintained under the Code or other applicable Tax Laws or under any record retention agreement with any Tax Authority.

**"Tax-Related Losses"** means (i) all federal, state and local Taxes (including interest and penalties thereon) imposed pursuant to any settlement, Final Determination, judgment or otherwise; (ii) all accounting, legal and other professional fees, and court costs incurred in connection with such Taxes; and (iii) all costs, expenses and damages associated with stockholder litigation or controversies and any amount paid by Parent (or any Affiliate thereof) or Spinco (or any Affiliate thereof) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case, to the extent resulting from the failure of the Distribution to have Qualification Status.

**"Tax Return" or "Return"** means any report of Taxes due, any claim for refund of Taxes paid, any information return with respect to Taxes, or any other similar report, statement, declaration, or document required to be filed under the Code, the Tax Regulations, or other Tax Law, including any attachments, exhibits, or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing.

**"Transactions"** means the Distribution, Contribution and the other transactions contemplated by the Separation and Distribution Agreement.

**"Treasury Regulations"** means the regulations promulgated from time to time under the Code as in effect at a relevant time.

**"U.S."** means United States of America.

**Section 2.** **<u>Allocation of Tax Liabilities</u>**.

Section 2.01 <u>General Rule</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) *Parent Liability.* Parent shall be responsible and liable for, and shall indemnify and hold harmless Spinco from and against any liability for, Taxes which are allocated to Parent under this Section 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;(b) *Spinco Liability.* Spinco shall be responsible and liable for, and shall indemnify and hold harmless the Parent Group from and against any liability for, Taxes which are allocated to Spinco under this Section 2.

Section 2.02 <u>Allocation of United States Federal Income Tax and Federal Other Tax</u>*.* Except as provided in Section 2.04, Federal Taxes shall be allocated 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) *Allocation of Pre-Distribution Federal Income Tax.* Except to the extent of a conflict with the provisions of this Agreement, wherever necessary for purposes of this Agreement, (i) for any Pre-Distribution Period that is prior to the effective date of the Contribution (as defined in the Separation and Distribution Agreement), any and all Federal Taxes attributable to Spinco or its assets shall be attributed to Parent, as the sole owner of Spinco as a disregarded entity for tax purposes, and (ii) for any Pre-Distribution Period that is on or after the effective date of the Contribution, any and all Federal Taxes of the Pre-Distribution Affiliated Group with respect to a Pre-Distribution Period shall be allocated between Parent and Spinco in a manner contemplated pursuant to, and consistent with, the methodologies contained in Sections 3 and 4 of that certain Tax Sharing Agreement (with respect to federal tax matters), dated as of May 14, 2019, by and among Parent, T Bancshares, Inc., a Texas corporation and registered bank holding company, and T Bank N.A., a national banking association, a copy of which is attached hereto as <u>Exhibit 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) *Allocation of Federal Taxes Among Pre-Distribution Periods and Post-Distribution Periods.* For any Pre-Distribution Period that is prior to the effective date of the Contribution (as defined in the Separation and Distribution Agreement), Federal Taxes with respect to any Pre-Distribution Period shall be allocated between Parent and Spinco in accordance with the principles of Treasury Regulation Section 1.1502-76(b) as reasonably interpreted and applied by the Companies. After the allocation described in Section 2.02(a), for any Post-Distribution Period, (i) Federal Taxes arising in the Post-Distribution Parent Affiliated Group shall be for the account of, and paid by, Parent and (ii) Federal Taxes of Spinco shall be for the account of, and paid by, Spinco.

&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) *Allocation of Tax Relating to Parent Federal Consolidated Income Tax Returns.* With respect to any Parent Federal Consolidated Income Tax Return, Parent shall be responsible for any and all Federal Income Taxes due or required to be reported on any such Parent Federal Consolidated Income Tax Return (including any increase in such Tax as a result of a Final Determination).

&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) *Allocation of Tax Relating to Federal Separate Income Tax Returns.* (i) Parent shall be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any Separate Return of Parent or any member of the Parent Group (including any increase in such Tax as a result of a Final Determination); and (ii) Spinco shall be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any Separate Return of Spinco (including any increase in such Tax as a result of a Final Determination).

Section 2.03 <u>Allocation of State Income and State Other Taxes</u>. Except as provided in Section 2.05, State Income Tax and State Other Tax shall be allocated 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) *Allocation of Pre-Distribution State Income Tax and State Other Tax.* Except to the extent of a conflict with the provisions of this Agreement, wherever necessary for purposes of this Agreement, (i) for any Pre-Distribution Period that is prior to the effective date of the Contribution (as defined in the Separation and Distribution Agreement), any and all State Income Taxes and State Other Taxes attributable to Spinco or its assets shall be attributed to Parent, as the sole owner of Spinco as a disregarded entity for tax purposes, and (ii) for any Pre-Distribution Period that is on or after the effective date of the Contribution, any and all State Income Taxes and State Other Taxes of the Pre-Distribution Affiliated Group with respect to a Pre-Distribution Period shall be allocated between Parent and Spinco in a manner contemplated pursuant to, and consistent with, the methodologies contained in Sections 3 and 4 of that certain Tax Sharing Agreement (with respect to state tax matters), dated as of May 14, 2019, by and among Parent, T Bancshares, Inc., a Texas corporation and registered bank holding company, and T Bank N.A., a national banking association, a copy of which is attached hereto as <u>Exhibit 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) *Allocation of Tax Relating to Parent State Combined Income Tax Returns.* Parent shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any Parent State Combined Income Tax Return and any Split Parent State Combined Income Tax Return (including any increase in such Tax as a result of a Final Determination).

&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) *Allocation of Tax Relating to Separate Returns.* (i) Parent shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any Parent Separate Return (including any increase in such Tax as a result of a Final Determination); and (ii) Spinco shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any Spinco Separate Return (including any increase in such Tax as a result of a Final Determination).

&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) *Straddle Period Taxes*. For purposes of this Section 2.03, in the case of any Straddle Period, (i) Taxes and exemptions, allowances or deductions that are calculated on an annualized basis shall be apportioned between the Pre-Distribution Period and the Post-Distribution Period on a daily pro rata basis and (ii) all other Taxes shall be apportioned between the Pre-Distribution Period and the Post-Distribution Period on a closing of the books basis as of the close of business on the Distribution 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;(e) *Allocation of State Other Tax.* To the extent unpaid as of the date of this Agreement, except to the extent otherwise allocated pursuant to Section 2.03(a), and whether arising in a Pre-Distribution Period or a Post-Distribution Period, (i) Parent shall be responsible for any and all State Other Taxes attributable to the Parent Business and (ii) Spinco shall be responsible for any and all State Other Taxes attributable to the Spinco Business.

Section 2.04 <u>Certain Transaction and Other Taxes</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) *Spinco Liability.* Spinco shall be liable for, and shall indemnify and hold harmless the Parent Group from and against any liability for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Fifty percent (50%) of any stamp, sales and use, gross receipts, value-added or other transfer Taxes imposed by any Tax Authority on any member of the Parent Group or Spinco on the transfers made pursuant to the Separation and Distribution Agreement or any Ancillary Agreements in order to effect the Separation and the Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Tax resulting from a breach by Spinco of any covenant in this Agreement, the Separation and Distribution Agreement or any Ancillary 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Tax-Related Losses for which Spinco is responsible pursuant to Section 7.03 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;(b) *Parent Liability.* Parent shall be liable for, and shall indemnify and hold harmless Spinco from and against any liability for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Fifty percent (50%) of any stamp, sales and use, gross receipts, value-added or other transfer Taxes imposed by any Tax Authority on any member of the Parent Group or Spinco (if Spinco is primarily liable for such Tax) on the transfers made pursuant to the Separation and Distribution Agreement or any Ancillary Agreements in order to effect the Separation and the Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Tax resulting from a breach by Parent of any covenant in this Agreement, the Separation and Distribution Agreement or any Ancillary 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Tax-Related Losses for which Parent is responsible pursuant to Section 7.03 of this Agreement.

**Section 3.** **<u>[Reserved</u>]**.

**Section 4.** **<u>Preparation and Filing of Tax Returns; Certain Tax Elections</u>**.

Section 4.01 <u>General</u>. Except as otherwise provided in this Section 4, any and all Tax Returns shall be properly prepared and timely filed, or caused to be properly prepared and timely filed, when due (including extensions) by the Person obligated to file such Tax Returns under the Code or applicable Tax Law. The Companies shall provide, and shall cause their Affiliates to provide, assistance and cooperation to one another in accordance with Section 8 with respect to the preparation and filing of such Tax Returns, including providing information required to be provided in Section 8.

Section 4.02 <u>Parent's Responsibility</u>*.* Parent has the exclusive obligation and right to prepare and file, or to cause to be prepared and filed:

&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) Parent Federal Consolidated Income Tax Returns for any and all Tax Periods;

&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) Parent State Combined Income Tax Returns and any other Joint Returns which Parent reasonably determines are required to be filed (or which Parent chooses to be filed) by the Companies or any of their Affiliates for any and all Tax Periods; provided, however*,* that Parent shall provide written notice to Spinco of such determination to file such Parent State Combined Income Tax Returns or other Joint Returns within 10 business days of Parent's making such determination;

&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) Parent Separate Returns and Spinco Separate Returns which Parent reasonably determines are required to be filed by the Companies or any of their Affiliates for any and all Tax Periods (limited, in the case of Spinco Separate Returns, to such Returns as are required to be filed for Tax Periods ending on or prior to the Distribution Date), provided, however, that Parent shall provide written notice to Spinco of such determination that Parent Separate Returns and Spinco Separate Returns are required to be filed within 10 business days of such determination;

&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) Split Parent State Combined Income Tax Returns required to be filed for Tax Periods ending on or prior to the Distribution Date; 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;(e) To the extent that the date that Parent makes a determination under Section 4.02(b) to file Parent State Combined Income Tax Returns or other Joint Returns or under Section 4.02(c) to file Parent Separate Returns and Spinco Separate Returns and that determination is made less than 60 days prior to the due date for filing such Return, then Parent shall provide written notice to Spinco of such determination within 5 business days of such determination.

Section 4.03 <u>Spinco's Responsibility</u>*.* Spinco shall prepare and file, or shall cause to be prepared and filed, all Tax Returns required to be filed by or with respect to Spinco other than those Tax Returns which Parent is required to prepare and file under Section 4.02. The Tax Returns required to be prepared and filed by Spinco under this Section 4.03 shall include any Spinco Tax Returns required to be filed for Tax Periods ending after the Distribution Date. At Parent's request, Spinco shall prepare or cause to be prepared the portions of the Tax Returns which Parent is required to prepare and file under Section 4.02 that relate to Spinco and/or the Spinco Business with respect to any Pre-Distribution Period and timely provide such portions of such Tax Returns to Parent.

Section 4.04 <u>Tax Accounting Practices</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) *General Rule.* Except as provided in Section 4.04(b), any Tax Return that Spinco has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.03, for any Pre-Distribution Period shall be prepared in accordance with past practices, including treatment of Tax Items, positions, accounting methods, elections, and conventions (**"Past Practices"**), used with respect to a Tax Returns (unless there is no reasonable basis, as jointly determined by the parties, for the use of such Past Practices or unless there is no adverse effect to Parent), and to the extent any items are not covered by Past Practices (or in the event that there is no reasonable basis, as jointly determined by the parties, for the use of such Past Practices or there is no adverse effect to Parent), in accordance with reasonable Tax accounting practices selected by Spinco. Spinco agrees to provide Parent with prior written notice of any change in accounting methods, elections or conventions with respect to any taxable period beginning after the Distribution Date to the extent items reported on such Tax Return might reasonably be expected to affect items reported on any Tax Return for any Pre-Distribution Period.

Except as provided in Section 4.04(b), Parent shall prepare any Tax Return which it has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.02, in accordance with Past Practices (unless there is no reasonable basis, as jointly determined by the parties, for the use of such Past Practices or unless there is no adverse effect to Spinco), and to the extent any items are not covered by Past Practices (or in the event that there is no reasonable basis, as jointly determined by the parties, for the use of such Past Practices or there is no adverse effect to Spinco), in accordance with reasonable Tax accounting practices selected by Parent, provided that, in the case of Spinco Separate Returns prepared and filed pursuant to Section 4.02(c), any such Tax accounting practices selected by Parent shall be reasonably acceptable to Spinco and should not reasonably be expected to affect items reported on any Tax Return for any Pre-Distribution 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) *Reporting of Transactions.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 otherwise required by a final determination of an applicable Tax Authority, the tax treatment of the Transactions reported on any Tax Return shall be consistent with the treatment thereof in the Tax Opinion and, specifically, for U.S. federal income tax purposes, it is intended that (x) the Contribution and the Distribution, taken together, qualify as a "reorganization" under Section 368(a)(1)(D) of the Code and (y) the Contribution and the Distribution, taken together, qualify as a distribution of the Spinco Interests to the TA Continuing Shareholders under Section 355(a) of the Code. Each party shall cooperate fully with the others in preparing and filing all Tax Returns and statements required in connection with the transactions contemplated hereby (including any statements required under Treasury Regulation Section 1.355-5) and shall furnish to the others such information and assistance as may reasonably be requested to support the Qualification Status. Each party shall retain and make available all books and records relevant to such treatment for the applicable statute of limitations period. Each party shall promptly notify the others in writing upon becoming aware of any event, fact, or circumstance that could reasonably be expected to impact the Qualification Status, and shall consult in good faith regarding any remedial or protective actions that may be available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Tax treatment of the Transactions reported on any Tax Return for which Spinco is the Responsible Company shall be consistent with that on any Tax Return filed or to be filed by Parent or any member of the Parent Group or caused or to be caused to be filed by Parent, in each case with respect to periods prior to the Distribution Date (**"Parent Group Transaction Returns"**), to the extent Parent notifies Spinco in writing of such Tax treatment. To the extent there is a Tax treatment relating to the Transactions which is not covered by the Tax Opinion or Parent Group Transaction Returns, the Tax treatment to be reported on any Tax Return shall be determined by Parent and the Responsible Company shall not take any position on any Tax Return that is inconsistent with such determination, provided that if (x) there is no reasonable basis, in the opinion of a Tax advisor from a nationally recognized legal, accounting or professional tax services firm, for the Tax treatment determined by Parent, or (y) such Tax treatment is inconsistent with the Tax treatment contemplated in the Tax Opinion and/or the Parent Group Transaction Returns, then such Tax Return shall be submitted for review pursuant to Section 4.06 (a), and any dispute regarding such proper Tax treatment shall be referred for resolution pursuant to Section 14, sufficiently in advance of the filing date of such Tax Return (including extensions) to permit timely filing of the Tax Return.

Section 4.05 <u>Consolidated or Combined 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;(a) Spinco will elect and join, and will cause its respective Affiliates to elect and join, in filing any Parent State Combined Income Tax Returns, Split Parent State Combined Income Tax Returns and any Joint Returns that Parent determines are required to be filed or that Parent chooses to file pursuant to Sections 4.02(b) and 4.05(b). With respect to any Spinco Separate Returns relating to any Tax Period (or portion thereof) ending on or prior to the Distribution Date, Spinco will elect and join, and will cause its respective Affiliates to elect and join, in filing consolidated, unitary, combined, or other similar joint Tax Returns, to the extent each entity is eligible to join in such Tax Returns, if Parent reasonably determines that the filing of such Tax Returns is consistent with past reporting practices, or, in the absence of applicable past practices, will result in the minimization of the net present value of the aggregate Tax to the entities eligible to join in such Tax Returns, including as a result of the Contribution (as a result of which Spinco will join the Parent Group as of the date of the Contribution).

&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 Parent's discretion, Parent may amend any Parent State Combined Income Tax Return or propose in respect of an audit of any Parent State Combined Income Tax Return, or use any other means available, including filing additional Spinco Separate Returns, in order to separate such Parent State Combined Income Tax Return into one or more consolidated, unitary or combined state income Tax Returns (each a "**Split Parent State Combined Income Tax Return**"), provided that, if such action would increase the liability of Spinco for Taxes for which Spinco is responsible under this Agreement, then Parent shall either not take such action without the prior consent of Spinco (such consent not to be unreasonably withheld, conditioned or delayed) or shall not be permitted to seek indemnity from Spinco with respect to such additional Taxes under this Agreement. Subject to the foregoing provision, Spinco shall reasonably cooperate with Parent in the filing of any additional Spinco Separate Returns, including by providing any necessary powers of attorney, signing Tax Returns, amending any Tax Returns that Spinco has the obligation and right to prepare and file pursuant to Section 4.03 and complying with its obligations under Section 8 hereof.

Section 4.06 <u>Right to Review 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;(a) *General.* The Responsible Company with respect to any material Tax Return shall make such Tax Return and related workpapers available for review by the other Company, if requested, to the extent (i) such Tax Return relates to Taxes for which the requesting party would reasonably be expected to be liable, (ii) such Tax Return relates to Taxes and the requesting party would reasonably be expected to be liable in whole or in part for any additional Taxes owing as a result of adjustments to the amount of such Taxes reported on such Tax Return, (iii) such Tax Return relates to Taxes for which the requesting party would reasonably be expected to have a claim for Tax Benefits under this Agreement, or (iv) the requesting party reasonably determines that it must inspect such Tax Return to confirm compliance with the terms of this Agreement. The Responsible Company shall use its reasonable best efforts to make such Tax Return available for review as required under this paragraph sufficiently in advance of the due date for filing of such Tax Return to provide the requesting party with a meaningful opportunity to analyze and comment on such Tax Return and shall use its reasonable best efforts to have such Tax Return modified before filing, taking into account the person responsible for payment of the Tax (if any) reported on such Tax Return and whether the amount of Tax liability with respect to such Tax Return is material. The Companies shall attempt in good faith to resolve any issues arising out of the review of such Tax Return. For purposes of this Section 4.06(a), a Tax Return is "material" if it could reasonably be expected to reflect (A) Tax liability equal to or in excess of $500,000, (B) a credit or credits equal to or in excess of $500,000 or (C) a loss or losses equal to or in excess of $1.5 million. Notwithstanding anything to the contrary in this Agreement, Parent shall not be required to provide Spinco with any Parent Federal Consolidated Income Tax Returns, Parent State Combined Income Tax Returns or Parent Separate Returns, or any workpapers related to such Tax Returns, except for workpapers that relate solely to Spinco and are necessary for Spinco to fulfill its responsibilities under Section 4.03.

&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) *Execution of Returns Prepared by Other Party.* In the case of any Tax Return which is required to be prepared and filed by one Company under this Agreement and which is required by Tax Law to be signed by the other Company (or by its authorized representative), the Company which is legally required to sign such Tax Return shall not be required to sign such Tax Return under this Agreement if there is no reasonable basis, in the opinion of a Tax advisor from a nationally recognized legal, accounting or professional tax services firm, for the Tax treatment of any item reported on the Tax Return or the Tax treatment of any item reported on the Tax Return should, in the opinion of a Tax advisor from a nationally recognized legal, accounting or professional tax services firm, subject the other Company (or its authorized representatives) to material penalties.

Section 4.07 <u>Spinco Carrybacks and Claims for Refund</u>*.* Spinco hereby agrees that, unless Parent consents in writing, (i) no Adjustment Request with respect to any Joint Return (or any Return of Other Taxes described in clause (II) of Section 5.01) shall be filed, and (ii) any available elections to waive the right to claim in any Pre-Distribution Period, with respect to any Joint Return (or any Return of Other Taxes described in clause (II) of Section 5.01), any Spinco Carryback arising in a Post-Distribution Period shall be made, and no affirmative election shall be made to claim any such Spinco Carryback; provided, however, that the parties agree that any such Adjustment Request shall be made with respect to any Spinco Carryback related to U.S. federal or State Taxes, upon the reasonable request of Spinco, if such Spinco Carryback is necessary to prevent the loss of the federal and/or State Tax Benefit of such Spinco Carryback (including, but not limited to, an Adjustment Request with respect to a Spinco Carryback of a federal or State capital loss arising in a Post-Distribution Period to a Pre-Distribution Period) and such Adjustment Request, based on Parent's sole, reasonable determination, will cause no material Tax detriment to Parent, the Parent Group or any member of the Parent Group. Any Adjustment Request which Parent consents to make under this Section 4.07 shall be prepared and filed by the Responsible Company for the Tax Return to be adjusted.

Section 4.08 <u>Apportionment of Earnings and Profits and Tax Attributes</u>. For Federal Income Tax purposes (and any similar State Income Tax purposes), Parent shall in good faith determine the amount of, and then allocate or apportion, earnings and profits and Tax Attributes, in each case, as of the Distribution Time, among Parent and the Parent Group, on the one hand, and Spinco, on the other hand, in accordance with the Code, Treasury Regulations, and other applicable Tax Laws. Parent shall in good faith advise Spinco in writing of the portion of any and all earnings and profits and Tax Attribute, or other consolidated, combined or unitary attribute which Parent has so allocated or apportioned to Spinco in accordance with applicable Tax Law. Spinco shall prepare all Tax Returns for any Post-Distribution Period in accordance with such written notice. In the event that any temporary or final amendments to Treasury Regulations with respect to the allocations and apportionments described in this Section 4.08 are promulgated after the date of this Agreement that provide for any election to apply such regulations retroactively, then any such election shall be made only to the extent that Parent and Spinco both agree to make such election. As soon as practicable after receipt of a written request from Spinco, Parent shall provide copies of any studies, reports, and workpapers supporting the allocation or apportionment of earnings and profits and Tax Attributes to Spinco. Any dispute regarding the allocation or apportionment of such earnings and profits or any Tax Attribute shall be resolved pursuant to the provisions of Section 14 of this Agreement. All Tax Returns that are required to be filed under this Agreement after such resolution shall be filed in accordance with such resolution. In the event of a subsequent adjustment to the earnings and profits or any Tax Attributes determined in good faith by Parent, Parent shall promptly notify Spinco in writing of such adjustment. For the absence of doubt, Parent shall not be liable to Spinco for any failure of any determination in good faith under this Section 4.08 to be accurate under applicable Tax Law.

Section 4.09 <u>Protective Section 336(e) Election</u>. Parent and Spinco agree that one or more protective elections under Section 336(e) of the Code and the Treasury Regulations promulgated thereunder and under any comparable provisions of state, local or foreign law (each, a "**Section 336(e) Election**") may be made with respect to the Transactions. Spinco shall join with Parent and/or any relevant member of the Parent Group, as applicable, in the making of any such election and shall take any action reasonably requested by Parent or that is otherwise necessary to give effect to any such election (including making any other related election). If a Section 336(e) Election is made with respect to the Transactions, then this Agreement shall be amended in such a manner as is determined by Parent in good faith to take into account such Section 336(e) Election(s).

**Section 5.** **<u>Tax Payments</u>**.

Section 5.01 <u>Payment of Taxes With Respect to Joint Returns (other than a Parent Federal Consolidated Income Tax Return with respect to a Post-Distribution Period) and Certain Returns of Other Taxes</u>. In the case of (I) any Joint Return (including any Parent Federal Consolidated Income Tax Return and any Parent State Combined Income Tax Return but excluding any Parent Federal Consolidated Tax Return with respect to a Post-Distribution Period) and (II) any Return of Other Taxes reflecting both Taxes for which Parent is responsible under Section 2 and Taxes for which Spinco is responsible under Section 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) *Computation and Payment of Tax Due.* The Responsible Company shall compute the amount of Tax required to be paid to the applicable Tax Authority (taking into account the requirements of Section 4.04 relating to consistent accounting practices, as applicable) with respect to such Tax Return on such Payment Date. The Responsible Company shall pay such amount to such Tax Authority on or before such Payment Date (and provide notice and proof of payment to the other 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) *Computation and Payment of Estimated and True-up Tax Payments.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *Estimated Tax Payments.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *Computation and Payment of Estimated Federal Income Taxes Due for a Pre-Distribution Tax Period.* Not later than five (5) business days prior to the estimated tax installment date (as prescribed in Section 6655(c) of the Code) following the date hereof for a Parent Federal Consolidated Income Tax Return with respect to a Pre-Distribution Tax Period, Parent shall determine under Section 6655 of the Code the estimated amount of the Parent's estimated federal income tax installment payment that is properly allocable to Spinco for the Pre-Distribution Tax Period; provided that Spinco shall not be allocated any amount that is attributable to a date that is prior to the Cut Off Date. Parent shall provide Spinco with a copy of this calculation at least five (5) business days prior to the estimated tax installment date determined above. Spinco shall then pay to Parent, not later than such estimated tax installment date, the amount thus determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *Computation and Payment of Estimated Non-Federal Combined Taxes for a Pre-Distribution Tax Period*. Not later than five (5) business days prior to any estimated tax installment date (as prescribed by applicable Tax Law) following the date hereof with respect to a Parent-State Combined Income Tax Return with respect to a Pre-Distribution Tax Period, Parent shall determine the estimated amount of the related installment tax payment that is properly allocable to Spinco for that Pre-Distribution Tax Period; provided that Spinco shall not be allocated any amount that is attributable to a date that is prior to the Cut Off Date. Parent shall provide Spinco with a copy of this calculation at least five (5) business days prior to the estimated tax installment date determined above. Spinco shall then pay to Parent, not later than such estimated tax installment date, the amount thus determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *True-up Tax Payments for Pre-Distribution Tax Periods.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *Federal Income Taxes.* Not later than thirty (30) business days after the filing of a Parent Federal Consolidated Income Tax Return with respect to a Pre-Distribution Tax Period, Parent shall deliver to Spinco a pro forma Spinco Tax Return or other comparable schedule reflecting the Spinco's liability (if any) for Federal Income Tax for such Pre-Distribution Tax Period and Spinco's estimated tax payments (if any) made either prior to the Distribution or under Section 5(b)(i) above with respect to such Pre-Distribution Tax Period. Not later than five (5) business days following the delivery of such pro forma Spinco Tax Return or other schedule, Spinco shall pay to Parent, or Parent shall pay to Spinco, as appropriate, an amount equal to the difference, if any, between the Spinco liability for Federal Income Tax for such taxable period and the aggregate amount paid by Spinco with respect to such taxable period prior to the Distribution and under Section 5(b)(i) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *Non-Federal Combined Taxes*. Not later than thirty (30) business days after the filing of a Parent-State Combined Return with respect to a Pre-Distribution Tax Period, Parent shall deliver to Spinco a pro forma Spinco Tax Return or other comparable schedule reflecting the Spinco's state or foreign income tax liability (if any) for such Pre-Distribution Tax Period and Spinco's estimated tax payments (if any) made either prior to the Distribution or under Section 5(b)(ii) above with respect to such Pre-Distribution Tax Period. Not later than five (5) business days following the delivery of such pro forma Spinco Tax Return or other schedule, Spinco shall pay to Parent, or Parent shall pay to Spinco, as appropriate, an amount equal to the difference, if any, between Spinco combined state or foreign tax liability for such taxable period and the aggregate amount paid by Spinco with respect to such taxable period prior to the Distribution and under Section 5(b)(ii) above.

&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) *Adjustments Resulting in Underpayments.* In the case of any adjustment pursuant to a Final Determination with respect to any such Tax Return, the Responsible Company shall pay to the applicable Tax Authority when due any additional Tax due with respect to such Return required to be paid as a result of such adjustment pursuant to a Final Determination; provided that Spinco shall not be required to pay any Tax that is attributable to a date that is prior to the Cut Off Date. The Responsible Company shall compute the amount attributable to Spinco in accordance with Section 2 and Spinco shall pay to Parent any amount due Parent (or Parent shall pay Spinco any amount due to Spinco) under Section 2 within 30 days from the later of (i) the date the additional tax was paid by the Responsible Company or (ii) the date of receipt of a written notice and demand from the Responsible Company for payment of the amount due, accompanied by evidence of payment and a statement detailing the Taxes paid and describing in reasonable detail the particulars relating thereto. Any payments required under this Section 5.01(d) shall include interest computed in accordance with Section 15.

Section 5.02 <u>Payment of Separate Company Taxes</u>*.* Each Company shall pay, or shall cause to be paid, to the applicable Tax Authority when due all Taxes owed by such Company or a member of such Company's Group with respect to a Separate Return of Income Taxes and with respect to a Separate Return of Other Taxes (provided that Separate Returns of Other Taxes described in clause (II) of Section 5.01 shall be governed by Section 5.01).

Section 5.03 <u>Indemnification Payments</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) If any Company (the **"Payor"**) is required under applicable Tax Law to pay to a Tax Authority a Tax that another Person (the **"Required Party"**) is responsible for under this Agreement, the Required Party shall pay the Payor the amount of such Tax (and any other amount required to be paid by the Required Party to the Payor pursuant to this Agreement in connection with such payment) no later than 5 days prior to the due date for payment of such amount by the Payor to the applicable Tax Authority (including any applicable extensions).

&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 indemnification payments under this Agreement shall be made by Parent directly to Spinco and by Spinco directly to Parent; provided, however*,* that if the Companies mutually agree with respect to an indemnification payment, any member of the Parent Group may make such indemnification payment to Spinco, and vice versa.

**Section 6.** **<u>Tax Benefits</u>**.

Section 6.01 <u>Tax 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) Except as set forth below, Parent shall be entitled to any refund (and any interest thereon received from the applicable Tax Authority) of Income Taxes and Other Taxes for which Parent is liable hereunder, Spinco shall be entitled to any refund (and any interest thereon received from the applicable Tax Authority) of Income Taxes and Other Taxes for which Spinco is liable hereunder and a Company receiving a refund to which another Company is entitled hereunder shall pay over such refund to such other Company within 30 days after such refund is received (together with interest computed in accordance with Section 15).

&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 Spinco actually realizes in cash any Tax Benefit as a result of an adjustment pursuant to a Final Determination to any Taxes for which a member of the Parent Group is liable hereunder (or to any Tax Attribute of a member of the Parent Group) and such Tax Benefit would not have arisen but for such adjustment (determined on a "with and without" basis), or if a member of the Parent Group actually realizes in cash any Tax Benefit as a result of an adjustment pursuant to a Final Determination to any Taxes for which Spinco is liable hereunder (or to any Tax Attribute of Spinco) and such Tax Benefit would not have arisen but for such adjustment (determined on a "with and without" basis), Spinco or Parent, as the case may be, shall make a payment to either Parent or Spinco, as appropriate, within 30 days following such actual realization of the Tax Benefit, in an amount equal to such Tax Benefit actually realized in cash (including any Tax Benefit actually realized as a result of the payment), plus interest on such amount computed in accordance with Section 15 based on the number of days from the date of such actual realization of the Tax Benefit to the date of payment of such amount under this Section 6.01(b).

&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) No later than 30 days after a Tax Benefit described in Section 6.01(b) is actually realized in cash by a member of the Parent Group or Spinco, Parent (if a member of the Parent Group actually realizes such Tax Benefit) or Spinco (if Spinco actually realizes such Tax Benefit) shall provide the other Company with a written calculation of the amount payable to such other Company by Parent or Spinco pursuant to this Section 6. In the event that Parent or Spinco disagrees with any such calculation described in this Section 6.01(c), Parent or Spinco shall so notify the other Company in writing within 30 days of receiving the written calculation set forth above in this Section 6.01(c). Parent and Spinco shall endeavor in good faith to resolve such disagreement, and, failing that, the amount payable under this Section 6 shall be determined in accordance with the disagreement resolution provisions of Section 14 as promptly as practicable.

&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) Spinco shall be entitled to any refund that is attributable to, and would not have arisen but for, an Spinco Carryback pursuant to the proviso set forth in Section 4.07. Any such payment of such refund made by Parent to Spinco pursuant to this Section 6.01(d) shall be recalculated in light of any Final Determination (or any other facts that may arise or come to light after such payment is made, such as a carryback of a Parent Group Tax Attribute to a Tax Period in respect of which such refund is received) that would affect the amount to which Spinco is entitled, and an appropriate adjusting payment shall be made by Spinco to Parent such that the aggregate amounts paid pursuant to this Section 6.01(d) equals such recalculated amount (with interest computed in accordance with Section 15).

**Section 7.** **<u>Qualification Status</u>**.

Section 7.01 <u>Tax Opinion and Representation Letters</u>. Parent hereby represents and agrees that (a) relevant members of management of appropriate stature have read the Parent Representation Letter and (b) subject to any qualifications therein, all information contained in the Parent Representation Letter is and will be true, correct and complete. Spinco hereby represents and agrees that (a) relevant members of management of appropriate stature have read each Spinco Representation Letter and (b) subject to any qualifications therein, all information contained in such Spinco Representation Letters is and will be true, correct and complete. Each party acknowledges and agrees that Hunton Andrews Kurth LLP may rely upon the representations, warranties, covenants, and agreements set forth in this Agreement (and in any certificates or instruments delivered in connection herewith) in rendering the Tax Opinion, and that each party will execute and deliver such additional officer's certificates or other documents as such counsel may reasonably request in connection with the Tax Opinion.

Section 7.02 <u>Restrictions on Spinco</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) Each of Spinco and the TA Continuing Shareholders agrees that it will not take or fail to take, or permit any Affiliate of Spinco to take or fail to take, any action where such action or failure to act would be inconsistent with, or cause to be untrue, any material, information, covenant, or representation in either Spinco Representation Letter or the Tax Opinion. Spinco agrees that it will not take or fail to take, or permit any Affiliate of Spinco, to take or fail to take, any action which prevents or could reasonably be expected to prevent the Qualification Status, including, in the case of Spinco, issuing any Spinco Capital Stock that would prevent the Contribution and Distribution, taken together, from meeting the requirements to qualify under Section 355 of the Code or Section 368(a)(1)(D) 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;(b) Each of Spinco and the TA Continuing Shareholders agrees that, from the date hereof until the first day after the two-year anniversary of the Distribution Date, it will (i) maintain its status as a company engaged in the Active Trade or Business for purposes of Section 355(b)(2) of the Code and (ii) not engage in any transaction that would result in it ceasing to be a company engaged in the Active Trade or Business for purposes of Section 355(b)(2) of the Code, in each case, taking into account Section 355(b)(3) 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;(c) Each of Spinco and the TA Continuing Shareholders agrees that, from the date hereof until the first day after the two-year anniversary of the Distribution Date, it will not undertake any restructuring involving Spinco including, without limitation, any merger or liquidation, therein, or any arrangement or series of transactions (i) pursuant to which a Fifty-Percent or Greater Interest of Spinco would be acquired or treated as acquired, or (ii) that might reasonably impact the Qualification Status of the Contribution and Distribution (including by reason of materially increasing the risk that the Split-Off would be treated as a "device" to distribute the earnings and profits of Parent or Spinco) without the prior written consent of Parent.

&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 Spinco and the TA Continuing Shareholders agrees that it will not take any action that would cause Parent to fail to satisfy the "control" requirement of Section 368(c) of the Code with respect to the Distribution.

&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) Spinco agrees that it will not make any election under the Code or Treasury Regulations (including under Treasury Regulation Section 301.7701-3) or take any accounting position inconsistent with the Qualification Status of the Contribution and Distribution.

Section 7.03 <u>Liability for Tax-Related Losses</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) Subject to Section 7.03(c), each of Spinco and the TA Continuing Shareholders shall be responsible for, and shall jointly indemnify and hold harmless Parent and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution or the Distribution) of all or a portion of Spinco's stock or its assets by any means whatsoever by any Person, (B) any negotiations, understandings, agreements or arrangements by Spinco with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of such transactions or events) that (x) cause the Contribution or the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire, at any time or over a period of time, directly or indirectly stock of Spinco representing a Fifty-Percent or Greater Interest therein, or (y) might reasonably impact the Qualification Status of the Contribution and Distribution (including by reason of materially increasing the risk that the Split-Off would be treated as a "device" to distribute the earnings and profits of Parent or Spinco), (C) any action or failure to act by Spinco after the Distribution (including, without limitation, any amendment to Spinco's certificate of incorporation (or other organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of Spinco stock (including, without limitation, through the conversion of one class of Spinco Capital Stock into another class of Spinco Capital Stock), (D) any act or failure to act by Spinco or any Spinco Affiliate described in Section 7.02, or (E) any breach by Spinco of its agreement and representation set forth in Section 7.01 or any Spinco Representation Letter.

&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) Subject to Section 7.03(c), Parent shall be responsible for, and shall indemnify and hold harmless Spinco and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of any Tax-Related Losses that are attributable to, or result from any one or more of the following: (A) the acquisition (other than pursuant to the Contribution or the Distribution) of all or a portion of Parent's stock and/or its assets by any means whatsoever by any Person, (B) any negotiations, agreements or arrangements by Parent with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of such transactions or events) that (x) cause the Contribution or the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of Parent representing a Fifty-Percent or Greater Interest therein, or (y) might reasonably impact the Qualification Status of the Contribution and Distribution (including by reason of materially increasing the risk that the Split-Off would be treated as a "device" to distribute the earnings and profits of Parent or Spinco), or (C) any breach by Parent of its agreement and representation set forth in Section 7.01 or the Parent Representation Letter.

&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) *Tax-Related Losses* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 the extent that any Tax-Related Loss is subject to indemnity under both Sections 7.03(a) and (b), responsibility for such Tax-Related Loss shall be shared by Parent, Spinco, and the TA Continuing Shareholders according to relative fault.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding anything in Section 7.03(b) or (c)(i) or any other provision of this Agreement or the Separation and Distribution Agreement to the contrary with respect to (I) any Tax-Related Loss resulting from Section 355(e) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in Parent) and (II) any other Tax-Related Loss resulting (for the absence of doubt, in whole or in part) from an acquisition after the Distribution of any stock or assets of Spinco (or any Spinco Affiliate) by any means whatsoever by any Person or any action or failure to act by Spinco and/or the TA Continuing Shareholders affecting the voting rights of Spinco stock, Spinco and/or the TA Continuing Shareholders shall be responsible for, and shall indemnify and hold harmless Parent and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding anything in Section 7.03(a) or (c)(i) or any other provision of this Agreement or the Separation and Distribution Agreement to the contrary, with respect to (I) any Tax-Related Loss resulting from Section 355(e) of the Code (other than as a result of an acquisition of a Fifty-Percent or Greater Interest in Spinco) and (II) any other Tax-Related Loss resulting (for the absence of doubt, in whole or in part) from an acquisition after the Distribution of any stock or assets of Parent (or any Parent Affiliate) by any means whatsoever by any Person, Parent shall be responsible for, and shall indemnify and hold harmless Spinco and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of such Tax-Related Loss.

&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) Spinco and the TA Continuing Shareholders shall pay Parent the amount of any Tax-Related Losses for which Spinco and the Continuing Shareholders are responsible under this Section 7.03: (A) in the case of Tax-Related Losses described in clause (i) of the definition of Tax-Related Losses no later than two Business Days prior to the date Parent files, or causes to be filed, the applicable Tax Return for the year of the Distribution (the **"Filing Date"**), provided that Parent delivers timely notice to Spinco of the amount of such Tax-Related Losses then due and owing by Spinco and/or the TA Continuing Shareholders, as applicable (provided that if such Tax-Related Losses arise pursuant to a Final Determination described in clause (a), (b) or (c) of the definition of "Final Determination," then Spinco and/or the TA Continuing Shareholders, as applicable, shall pay Parent no later than ten days after the date of such Final Determination with interest calculated in accordance with Section 15) and (B) in the case of Tax-Related Losses described in clause (ii) or (iii) of the definition of Tax-Related Losses, no later than ten days after the date Parent delivers Spinco with notice that is has paid such Tax-Related Losses and the amount of such Tax-Related Losses then due and owing by Spinco. Parent shall pay Spinco the amount of any Tax-Related Losses (described in clause (ii) or (iii) of the definition of Tax-Related Loss) for which Parent is responsible under this Section 7.03 no later than ten days after the date Spinco and/or the TA Continuing Shareholders, as applicable, pays such Tax-Related Losses.

&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) For purposes of calculating the amount and timing of any Tax-Related Loss for which Spinco and/or the TA Continuing Shareholders are responsible under this Section 7.03, Tax-Related Losses shall be calculated by assuming that Parent, the Post-Distribution Parent Affiliated Group and each member of the Parent Group (I) pay Tax at the highest marginal applicable Tax rates in effect with respect to the Taxes to which the Tax-Related Losses relate in each relevant taxable year and (II) have no Tax Attributes in any relevant taxable 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;(f) For purposes of calculating the amount and timing of any Tax-Related Loss for which Parent is responsible under this Section 7.03, Tax-Related Losses shall be calculated by assuming that Spinco (I) pays Tax at the highest marginal applicable Tax rates in effect with respect to the Taxes to which the Tax-Related Losses relate in each relevant taxable year and (II) has no Tax Attributes in any relevant taxable year.

**Section 8.** **<u>Assistance and Cooperation</u>**.

Section 8.01 <u>Assistance and Cooperation</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 Companies shall cooperate (and cause their respective Affiliates to cooperate) in good faith using commercially reasonable efforts with each other and with each other's agents and service providers, including accounting firms and legal counsel, in connection with Tax matters relating to the Companies and their Affiliates including (i) preparation and filing of Tax Returns, (ii) determining the liability for and amount of any Taxes due (including estimated Taxes) or the right to and amount of any refund of Taxes, (iii) examinations of Tax Returns, (iv) any administrative or judicial proceeding in respect of Taxes assessed or proposed to be assessed, (v) any matters related to the Qualification Status, and (vi) any other matters contemplated by this Agreement. Such cooperation shall include making all information and documents in their possession relating to the other Company and its Affiliates available to such other Company as provided in Section 9. Each of the Companies shall also make available to the other, as reasonably requested and available, personnel (including officers, directors, employees and agents and service providers of the Companies or their respective Affiliates) responsible for preparing, maintaining, and interpreting information and documents relevant to Taxes, and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any administrative or judicial proceedings relating to Taxes.

&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) Any information or documents provided under this Section 8 shall be kept confidential by the Company receiving the information or documents, except as may otherwise be necessary in connection with the filing of Tax Returns or in connection with any administrative or judicial proceedings relating to Taxes. Notwithstanding any provision of this Agreement or any other agreement, (i) neither Parent nor any Parent Affiliate shall be required to provide Spinco or any Spinco Affiliate or any other Person access to or copies of any information or procedures (including the proceedings of any Tax Contest) other than information or procedures that relate solely to Spinco, the business or assets of Spinco or any Spinco Affiliate and (ii) in no event shall Parent or any Parent Affiliate be required to provide Spinco, any Spinco Affiliate or any other Person access to or copies of any information if such action could reasonably be expected to result in the waiver of any Privilege. In addition, in the event that Parent determines that the provision of any information to Spinco or any Spinco Affiliate could be commercially detrimental, violate any law or agreement or waive any Privilege, the parties shall use reasonable best efforts to permit compliance with its obligations under this Section 8 in a manner that avoids any such harm or consequence. If Spinco determines that the provision of any information to Parent or any Parent Affiliate could be commercially detrimental, violate any law or agreement or waive any Privilege, the parties shall use reasonable best efforts to avoid any such harm or consequences.

Section 8.02 <u>Income Tax Return Information</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) Parent and Spinco acknowledge that time is of the essence in relation to any request for information, assistance or cooperation made by Parent or Spinco pursuant to Section 8.01, this Section 8.02, or any other provision of this Agreement. Parent and Spinco acknowledge that failure to conform to the deadlines set forth herein or reasonable deadlines otherwise set by Parent or Spinco could cause irreparable harm.

&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 Company shall provide to the other Company information and documents relating to its Group required by the other Company to prepare Tax Returns. Any information or documents the Responsible Company requires to prepare such Tax Returns shall be provided in such form as the Responsible Company reasonably requests and, to the extent practicable, in sufficient time for the Responsible Company to timely file such Tax Returns.

Section 8.03 <u>Reliance by Parent</u>*.* If Spinco supplies information to a member of the Parent Group in connection with a Tax liability and an officer of a member of the Parent Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of such member of the Parent Group identifying the information being so relied upon, the chief financial officer of Spinco (or any officer of Spinco as designated by the chief financial officer of Spinco) shall certify in writing that to his or her knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. Spinco agrees to indemnify and hold harmless each member of the Parent Group and its directors, officers and employees from and against any fine, penalty, or other cost or expense of any kind attributable to Spinco having supplied, pursuant to this Section 8, a member of the Parent Group with inaccurate or incomplete information in connection with a Tax liability.

Section 8.04 <u>Reliance by Spinco</u>*.* If any member of the Parent Group supplies information to Spinco in connection with a Tax liability and an officer of Spinco signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of Spinco identifying the information being so relied upon, the chief financial officer of Parent (or any officer of Parent as designated by the chief financial officer of Parent) shall certify in writing that to his or her knowledge (based upon consultation with appropriate employees) the information so supplied is accurate and complete. Parent agrees to indemnify and hold harmless Spinco and its directors, officers and employees from and against any fine, penalty, or other cost or expense of any kind attributable to a member of the Parent Group having supplied, pursuant to this Section 8, Spinco with inaccurate or incomplete information in connection with a Tax liability.

**Section 9.** **<u>Tax Records</u>**.

Section 9.01 <u>Retention of Tax Records</u>*.* Each Company shall preserve and keep all Tax Records relating to it and its Affiliates for Pre-Distribution Periods, and Parent shall preserve and keep all other Tax Records relating to Taxes of the Groups for Pre-Distribution Tax Periods, for so long as the contents thereof may become material in the administration of any matter under the Code or other applicable Tax Law, but in any event until the later of (i) the expiration of any applicable statutes of limitations and (ii) seven years after the Distribution Date (such later date, with respect to each Tax Record, the **"Retention Date"**). After the Retention Date, each Company may dispose of such Tax Records. If, prior to the Retention Date, a Company reasonably determines that any Tax Records which it would otherwise be required to preserve and keep under this Section 9 are no longer material in the administration of any matter under the Code or other applicable Tax Law and the other Company agrees in writing, then such first Company may dispose of such Tax Records upon 90 days' prior written notice to the other Company.

Section 9.02 <u>Access to Tax Records</u>*.* The Companies and their respective Affiliates shall make available to each other for inspection and copying during normal business hours upon reasonable notice all Tax Records (and, for the avoidance of doubt, any pertinent underlying data accessed or stored on any computer program or information technology system) in their possession and shall permit the other Company and its Affiliates, authorized agents and representatives and any representative of a Taxing Authority or other Tax auditor access during normal business hours upon reasonable notice to any computer program or information technology system used to access or store any Tax Records, in each case to the extent reasonably required by the other Company in connection with the preparation of Tax Returns or financial accounting statements, audits, litigation, or the resolution of items under this Agreement, and in all events subject to such reasonable requirements as the providing party's information technology department may impose to ensure compliance with such party's data protection policies.

**Section 10.** **<u>Tax Contests</u>**.

Section 10.01 <u>Notice</u>*.* A Company shall provide prompt notice to the other Company of any written communication from a Tax Authority regarding any initiated, pending, or threatened Tax audit, assessment, proceeding, or other Tax Contest of which the first Company becomes aware related to Taxes for Tax Periods for which the first Company is indemnified by the other Company or for which the other Company is responsible hereunder. Such notice shall attach copies of the pertinent portion of any written communication and other documents received from a Tax Authority and contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail. If an indemnified party has knowledge of an asserted Tax liability with respect to a matter for which it is to be indemnified hereunder and such party fails to give the indemnifying party prompt notice of such asserted Tax liability and the indemnifying party is entitled under this Agreement to contest the asserted Tax liability, then (i) if the indemnifying party is precluded from contesting the asserted Tax liability in any forum as a result of the failure to give prompt notice, the indemnifying party shall have no obligation to indemnify the indemnified party for any Taxes arising out of such asserted Tax liability, and (ii) if the indemnifying party is not precluded from contesting the asserted Tax liability in any forum, but such failure to give prompt notice results in a material monetary detriment to the indemnifying party, then any amount which the indemnifying party is otherwise required to pay the indemnified party pursuant to this Agreement shall be reduced by the amount of such detriment.

Section 10.02 <u>Control of Tax Contests</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) *Separate Company Taxes.* In the case of any Tax Contest with respect to any Separate Return (other than a Separate Return of Other Taxes described in clause (II) of Section 5.01), the Company with respect to which the Separate Return relates shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability.

&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) *Parent Federal Consolidated Income Tax Return.* In the case of any Tax Contest with respect to any Parent Federal Consolidated Income Tax Return, Parent shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 10.02(f) and (g) below.

&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) *Parent State Combined Income Tax Return.* In the case of any Tax Contest with respect to any Parent State Combined Income Tax Return, Parent shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 10.02(f) and (g) below.

&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) *Joint Returns and Certain Other Returns.* In the case of any Tax Contest with respect to (I) any Joint Return, other than any Parent Federal Consolidated Income Tax Return or any Parent State Combined Income Tax Return or (II) any Return of Other Taxes described in clause (II) of Section 5.01, (i) Parent shall control the defense or prosecution of the portion of the Tax Contest directly and exclusively related to any Parent Adjustment, including settlement of any such Parent Adjustment and (ii) Spinco shall control the defense or prosecution of the portion of the Tax Contest directly and exclusively related to any Spinco Adjustment, including settlement of any such Spinco Adjustment, and (iii) the Tax Contest Committee shall control the defense or prosecution of Joint Adjustments and any and all administrative matters not directly and exclusively related to any Parent Adjustment or Spinco Adjustment. The **"Tax Contest Committee"** shall be comprised of two persons, one person selected by Parent (as designated in writing to Spinco) and one person selected by Spinco (as designated in writing to Parent). Each person serving on the Tax Contest Committee shall continue to serve unless and until he or she is replaced by the party designating such person. Any and all matters to be decided by the Tax Contest Committee shall require the unanimous approval of both persons serving on the committee. In the event the Tax Contest Committee shall be deadlocked on any matter, the provisions of Section 14 of this Agreement shall apply.

&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) *Settlement Rights.* The Controlling Party shall have the sole right to contest, litigate, compromise and settle any Tax Contest without obtaining the prior consent of the Non-Controlling Party. Unless waived by the parties in writing, in connection with any potential adjustment in a Tax Contest as a result of which adjustment the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment (or any payment under Section 6) to the Controlling Party under this Agreement: (i) the Controlling Party shall keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment in such Tax Contest; (ii) the Controlling Party shall provide the Non-Controlling Party copies of any written materials relating to such potential adjustment in such Tax Contest received from any Tax Authority; (iii) the Controlling Party shall timely provide the Non-Controlling Party with copies of any correspondence or filings submitted to any Tax Authority or judicial authority in connection with such potential adjustment in such Tax Contest; (iv) the Controlling Party shall consult with the Non-Controlling Party and offer the Non-Controlling Party a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such potential adjustment in such Tax Contest; and (v) the Controlling Party shall defend such Tax Contest diligently and in good faith. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling Party was actually harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party. In the case of any Tax Contest described in Section 10.02(a), (b), (c) or (d), **"Controlling Party"** means the Company entitled to control the Tax Contest under such Section and **"Non-Controlling Party"** means the other 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;(f) *Tax Contest Participation.* Unless waived by the parties in writing, the Controlling Party shall provide the Non-Controlling Party with written notice reasonably in advance of, and the Non-Controlling Party shall have the right to attend, any formally scheduled meetings with Tax Authorities or hearings or proceedings before any judicial authorities in connection with any potential adjustment in a Tax Contest pursuant to which the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment (or any payment under Section 6) to the Controlling Party under this Agreement. The failure of the Controlling Party to provide any notice specified in this Section 10.02(g) to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling Party was actually harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling 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;(g) *Power of Attorney.* Spinco shall execute and deliver to Parent (or such member of the Parent Group as Parent shall designate) any power of attorney or other similar document reasonably requested by Parent (or such designee) in connection with any Tax Contest (as to which Parent is the Controlling Party) described in this Section 10. Each member of the Parent Group shall execute and deliver to Spinco any power of attorney or other similar document requested by Spinco (or such designee) in connection with any Tax Contest (as to which Spinco is the Controlling Party) described in this Section 10.

**Section 11.** **<u>Effective Date; Termination of Prior Intercompany Tax Allocation Agreements</u>**. This Agreement shall be effective as of the date hereof. As of the Distribution Time (i) all prior intercompany Tax allocation agreements or arrangements including Parent and Spinco shall be terminated and (ii) amounts due under such agreements as of the date hereof shall be settled. Upon such termination and settlement, no further payments by or to Parent or by or to Spinco, with respect to such Tax agreements shall be made, and all other rights and obligations resulting from such Tax agreements between the Companies and their Affiliates shall cease at such time. Any payments pursuant to such Tax agreements shall be disregarded for purposes of computing amounts due under this Agreement; provided that to the extent appropriate, as determined by Parent, payments made pursuant to such agreements shall be credited to Spinco or Parent, respectively, in computing their respective obligations pursuant to this Agreement, in the event that such payments relate to a Tax liability that is the subject matter of this Agreement for a Tax Period that is the subject matter of this Agreement.

**Section 12.** **<u>Survival of Obligations</u>**. The representations, warranties, covenants and agreements set forth in this Agreement shall be unconditional and absolute and shall remain in effect without limitation as to time.

**Section 13.** **<u>Treatment of Payments; Tax Gross Up</u>**.

Section 13.01 <u>Treatment of Tax Indemnity and Tax Benefit Payments</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) Any Tax indemnity payments made by a Company under Section 5 shall be reported for Tax purposes by the payor and the recipient as distributions or capital contributions, as appropriate, occurring immediately before the Deconsolidation (but only to the extent the payment does not relate to a Tax allocated to the payor in accordance with Section 1552 of the Code or the regulations thereunder or Treasury Regulation Section 1.1502-33(d) (or under corresponding principles of other applicable Tax Laws)) or as payments of an assumed or retained liability.

&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) Any Tax Benefit payments made by a Company under Section 6, shall be reported for Tax purposes by the payor and the recipient as distributions or capital contributions, as appropriate, occurring immediately before the Deconsolidation (but only to the extent the payment does not relate to a Tax allocated to the payor in accordance with Section 1552 of the Code or the regulations thereunder or Treasury Regulation Section 1.1502-33(d) (or under corresponding principles of other applicable Tax Laws)) or as payments of an assumed or retained liability.

Section 13.02 <u>Tax Gross Up</u>*.* If notwithstanding the manner in which Tax indemnity payments and Tax Benefit payments were reported, there is an adjustment to the Tax liability of a Company as a result of its receipt of a payment pursuant to this Agreement, such payment shall be appropriately adjusted so that the amount of such payment, reduced by the amount of all Income Taxes payable with respect to the receipt thereof (but taking into account all correlative Tax Benefits resulting from the payment of such Income Taxes), shall equal the amount of the payment which the Company receiving such payment would otherwise be entitled to receive pursuant to this Agreement.

Section 13.03 <u>Interest Under This Agreement</u>*.* Anything herein to the contrary notwithstanding, to the extent one Company (**"Indemnitor"**) makes a payment of interest to another Company (**"Indemnitee"**) under this Agreement with respect to the period from the date that the Indemnitee made a payment of Tax to a Tax Authority to the date that the Indemnitor reimbursed the Indemnitee for such Tax payment, the interest payment shall be treated as interest expense to the Indemnitor (deductible to the extent provided by Tax Law) and as interest income by the Indemnitee (includible in income to the extent provided by Tax Law). The amount of the payment shall not be adjusted under Section 2.02 to take into account any associated Tax Benefit to the Indemnitor or increase in Tax to the Indemnitee.

**Section 14.** **<u>Disagreements</u>**. The Companies mutually desire that friendly collaboration will continue between them. Accordingly, they will try, and they will cause their respective Group members to try, to resolve in an amicable manner all disagreements and misunderstandings connected with their respective rights and obligations under this Agreement, including any amendments hereto. In furtherance thereof, in the event of any dispute or disagreement (other than a High-Level Dispute) (a **"Tax Advisor Dispute"**) between any member of the Parent Group and Spinco as to the interpretation of any provision of this Agreement or the performance of obligations hereunder, the Tax departments of the Companies shall negotiate in good faith to resolve the Tax Advisor Dispute. If such good faith negotiations do not resolve the Tax Advisor Dispute, then the matter, upon written request of either Company, will be referred for resolution to senior executives, which executives will make a good faith effort to resolve the Tax Advisor Dispute. If the senior executives do not agree to a resolution of a Tax Advisor Dispute within thirty (30) days after the reference of the Tax Advisor Dispute to it, then the matter will be referred to a Tax Advisor acceptable to each of the Companies. The Tax Advisor may, in its discretion, obtain the services of any third-party appraiser, accounting firm or consultant that the Tax Advisor deems necessary to assist it in resolving such disagreement. The Tax Advisor shall furnish written notice to the Companies of its resolution of any such Tax Advisor Dispute as soon as practical, but in any event no later than 45 days after its acceptance of the matter for resolution. Any such resolution by the Tax Advisor will be conclusive and binding on the Companies. Following receipt of the Tax Advisor's written notice to the Companies of its resolution of the Tax Advisor Dispute, the Companies shall each take or cause to be taken any action necessary to implement such resolution of the Tax Advisor. In accordance with Section 16, each Company shall pay its own fees and expenses (including the fees and expenses of its representatives) incurred in connection with the referral of the matter to the Tax Advisor. All fees and expenses of the Tax Advisor in connection with such referral shall be shared equally by the Companies. Nothing in this Section 14 will prevent either Company from seeking injunctive relief if any delay resulting from the efforts to resolve the Tax Advisor Dispute through the senior executives and the Tax Advisor (or any delay resulting from the efforts to resolve any High-Level Dispute) could result in serious and irreparable injury to either Company. Notwithstanding anything to the contrary in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement, Parent and Spinco are the only members of their respective Group entitled to commence a dispute resolution procedure under this Agreement, and each of Parent and Spinco will cause its respective Group members not to commence any dispute resolution procedure other than through such party as provided in this Section 14.

**Section 15.** **<u>Late Payments</u>**. Payments pursuant to this Agreement that are not made within the period prescribed in this Agreement (the "**Payment Period**") and that are not otherwise setoff against amounts owed by one party to the other party will bear interest for the period from and including the date immediately following the last date of the Payment Period through and including the date of payment at a per annum rate equal to the applicable rate for large corporate underpayments set forth in Section 6621(c) of the Code. Such interest will be payable at the same time as the payment to which it relates and will be calculated on the basis of a year of 365 days and the actual number of days for which due.

**Section 16.** **<u>Expenses</u>**. Except as otherwise provided in this Agreement, each party and its Affiliates shall bear their own expenses incurred in connection with preparation of Tax Returns, Tax Contests, and other matters related to Taxes under the provisions of this Agreement.

**Section 17.** **<u>General Provisions</u>**.

Section 17.01 <u>Addresses and Notices</u>*.* Each party giving any notice required or permitted under this Agreement will give the notice in writing and use one of the following methods of delivery to the party to be notified, at the address set forth below or another address of which the sending party has been notified in accordance with this Section 17.01: (a) personal delivery; (b) email, facsimile, or telecopy transmission with a reasonable method of confirming transmission; (c) commercial overnight courier with a reasonable method of confirming delivery; or (d) pre-paid, United States of America certified or registered mail, return receipt requested. Notice to a party is effective for purposes of this Agreement only if given as provided in this Section 17.01 and shall be deemed given on the date that the intended addressee actually receives the notice.

---

| | |
|:---|:---|
| If to Parent, to: | Tectonic Financial, Inc. |
|  | 600 Travis Street, 59<sup>th</sup> Floor |
|  | Houston, TX 77002 |
|  | Attention: A. Haag Sherman |
|  | hsherman@tectonicfinancial.com |
| With copies to: | Hunton Andrews Kurth LLP |
|  | 1445 Ross Avenue, Suite 3700 |
|  | Dallas, TX 75202 |
|  | Attention: Alex McGeoch |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beth A. Whitaker |
|  | amcgeoch@hunton.com |
|  | bwhitaker@hunton.com |
| If to Spinco, to: | Tectonic Advisors, LLC |
|  | 17 Cowboys Way, Suite 300 |
|  | Frisco, Texas 75034 |
|  | Attention: Hunter Satterfield |
|  | hunter@cainwatters.com |
| With copies to: | Winstead PC |
|  | 2728 N. Harwood Street, Suite 500 |
|  | Dallas, Texas 75201 |
|  | Attention: Bill Ouska, Trip Dyer |
|  | bouska@winstead.com; pdyer@winstead.com |

---

---

| | | |
|:---|:---|:---|
| If to the TA Continuing Shareholders: | If to the TA Continuing Shareholders: | If to the TA Continuing Shareholders: |
|  | To the address of such TA Continuing Shareholder(s) set forth in the signature block hereto, with a copy to: | To the address of such TA Continuing Shareholder(s) set forth in the signature block hereto, with a copy to: |
|  | Mr. Hunter Satterfield | Mr. Hunter Satterfield |
|  | 17 Cowboys Way, Suite 300 | 17 Cowboys Way, Suite 300 |
|  | Frisco, Texas 75034 | Frisco, Texas 75034 |
|  | Email: | hunter@cainwatters.com |

---

A party may change the address for receiving notices under this Agreement by providing written notice of the change of address to the other parties.

Section 17.02 <u>Binding Effect</u>*.* This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and assigns.

Section 17.03 <u>Waiver</u>*.* The parties may waive a provision of this Agreement only by a writing signed by the party intended to be bound by the waiver. A party is not prevented from enforcing any right, remedy or condition in the party's favor because of any failure or delay in exercising any right or remedy or in requiring satisfaction of any condition, except to the extent that the party specifically waives the same in writing. A written waiver given for one matter or occasion is effective only in that instance and only for the purpose stated. A waiver once given is not to be construed as a waiver for any other matter or occasion. Any enumeration of a party's rights and remedies in this Agreement is not intended to be exclusive, and a party's rights and remedies are intended to be cumulative to the extent permitted by law and include any rights and remedies authorized in law or in equity.

Section 17.04 <u>Severability</u>*.* If any provision of this Agreement is determined to be invalid, illegal or unenforceable, the remaining provisions of this Agreement remain in full force, if the essential terms and conditions of this Agreement for each party remain valid, binding and enforceable.

Section 17.05 <u>Authority</u>*.* Each of the parties represents to the other that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate or other action, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and general equity principles.

Section 17.06 <u>Further Action</u>*.* The parties shall execute and deliver all documents, provide all information, and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement, including the execution and delivery to the other parties and their Affiliates and representatives of such powers of attorney or other authorizing documentation as is reasonably necessary or appropriate in connection with Tax Contests (or portions thereof) under the control of such other parties in accordance with Section 10.

Section 17.07 <u>Integration</u>*.* This Agreement, together with each of the exhibits and schedules appended hereto, constitutes the final agreement between the parties, and is the complete and exclusive statement of the parties' agreement on the matters contained herein. All prior and contemporaneous negotiations and agreements between the parties with respect to the matters contained herein are superseded by this Agreement, as applicable. In the event of any inconsistency between this Agreement and the Separation and Distribution Agreement, or any other agreements relating to the transactions contemplated by the Separation and Distribution Agreement, with respect to matters addressed herein, the provisions of this Agreement shall control.

Section 17.08 <u>Construction</u>*.* The language in all parts of this Agreement shall in all cases be construed according to its fair meaning and shall not be strictly construed for or against any party. The captions, titles and headings included in this Agreement are for convenience only, and do not affect this Agreement's construction or interpretation. Unless otherwise indicated, all "Section" references in this Agreement are to sections of this Agreement.

Section 17.09 <u>No Double Recovery</u>*.* No provision of this Agreement shall be construed to provide an indemnity or other recovery for any costs, damages, or other amounts for which the damaged party has been fully compensated under any other provision of this Agreement or under any other agreement or action at law or equity. Unless expressly required in this Agreement, a party shall not be required to exhaust all remedies available under other agreements or at law or equity before recovering under the remedies provided in this Agreement.

Section 17.10 <u>Counterparts</u>*.* The parties may execute this Agreement in multiple counterparts, each of which constitutes an original as against the party that signed it, and all of which together constitute one agreement. This Agreement is effective upon delivery of one executed counterpart from each party to the other party. The signatures of the parties need not appear on the same counterpart. The delivery of signed counterparts by facsimile or email transmission that includes a copy of the sending party's signature is as effective as signing and delivering the counterpart in person.

Section 17.11 <u>Governing Law</u>*.* The internal laws of the State of Texas (without reference to its principles of conflicts of law) govern the construction, interpretation and other matters arising out of or in connection with this Agreement and each of the exhibits and schedules hereto and thereto (whether arising in contract, tort, equity or otherwise).

Section 17.12 <u>Jurisdiction</u>*.* If any dispute arises out of or in connection with this Agreement, except as expressly contemplated by another provision of this Agreement, the parties irrevocably (and the parties will cause each other member of their respective Group to irrevocably) (a) consent and submit to the exclusive jurisdiction of federal and state courts located in Collin County, Texas, (b) waive any objection to that choice of forum based on venue or to the effect that the forum is not convenient, and (c) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO TRIAL OR ADJUDICATION BY JURY.

Section 17.13 <u>Amendment</u>*.* Except as otherwise expressly provided herein with respect to the Schedules hereto, the parties may amend this Agreement only by a written agreement signed by each party to be bound by the amendment and that identifies itself as an amendment to this Agreement.

Section 17.14 <u>Spinco Subsidiaries</u>*.* If, at any time, Spinco acquires or creates one or more subsidiaries, they shall be subject to this Agreement and all references to Spinco herein shall thereafter include a reference to such subsidiaries.

Section 17.15 <u>Successors</u>*.* This Agreement shall be binding on and inure to the benefit of any successor by merger, acquisition of assets, or otherwise, to any of the parties hereto (including but not limited to any successor of Parent or Spinco succeeding to the Tax Attributes of either under Section 381 of the Code), to the same extent as if such successor had been an original party to this Agreement.

Section 17.16 <u>Injunctions</u>*.* The parties acknowledge that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached. The parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court having jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at law or in equity.

*[Signature Pages to Follow Immediately]*

 

IN WITNESS WHEREOF, each party has caused this Agreement to be executed on its behalf by a duly authorized officer on the date first set forth above.

---

| | |
|:---|:---|
| **PARENT**: | **PARENT**: |
| Tectonic Financial, Inc. | Tectonic Financial, Inc. |
| By: | /s/ A. Haag Sherman |
| Name: | A. Haag Sherman |
| Title: | Chief Executive Officer |
| **SPINCO**: | **SPINCO**: |
| Tectonic Advisors, LLC | Tectonic Advisors, LLC |
| By: | /s/ Michelle Baird |
| Name: | Michelle Baird |
| Title: | Manager and Chief Financial Officer |

---

*[Signature Page to Tax Matters Agreement]*

In Witness Whereof, each of the undersigned, as a **TA Continuing Shareholder**, hereby executes this Agreement as of the date first set forth above.

---

| | |
|:---|:---|
| **TA CONTINUING SHAREHOLDERS**: | **TA CONTINUING SHAREHOLDERS**: |
| **Brian R. Bortz** | **Brian R. Bortz** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Brian R. Bortz |
| Name: | Brian R. Bortz |
| **Steven L. Cain** | **Steven L. Cain** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Steven L. Cain |
| Name: | Steven L. Cain |
| **Steven B. Clapp** | **Steven B. Clapp** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Steven B. Clapp |
| Name: | Steven B. Clapp |
| **Judson S. Crawford** | **Judson S. Crawford** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Judson S. Crawford |
| Name: | Judson S. Crawford |

---

*[Signature Page to Tax Matters Agreement]*

---

| | |
|:---|:---|
| **Timothy B. Greaves** | **Timothy B. Greaves** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Timothy B. Greaves |
| Name: | Timothy B. Greaves |
| **Toni D. Lee** | **Toni D. Lee** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Toni D. Lee |
| Name: | Toni D. Lee |
| **Charles Loretto** | **Charles Loretto** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Charles Loretto |
| Name: | Charles Loretto |
| **Thomas R. Sanders** | **Thomas R. Sanders** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Thomas R. Sanders |
| Name: | Thomas R. Sanders |

---

*[Signature Page to Tax Matters Agreement]*

---

| | |
|:---|:---|
| **Hunter Satterfield** | **Hunter Satterfield** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Hunter Satterfield |
| Name: | Hunter Satterfield |
| **Daniel C. Wicker** | **Daniel C. Wicker** |
| Address: c/o Cain Watters | Address: c/o Cain Watters |
| 17 Cowboys Way, Ste 300 | 17 Cowboys Way, Ste 300 |
| Frisco, Texas 75034 | Frisco, Texas 75034 |
| **By:** | /s/ Daniel C. Wicker |
| Name: | Daniel C. Wicker |

---

*[Signature Page to Tax Matters Agreement]*

## Exhibit 10.2

**Exhibit 10.2**

**TRANSITION SERVICES AGREEMENT**

This TRANSITION SERVICES AGREEMENT (as it may be amended or supplemented from time to time in accordance with the terms hereof, this "<u>Agreement</u>") is dated as of December 19, 2025, and is by and between Tectonic Financial, Inc., a Texas corporation ("<u>Parent</u>"), and Tectonic Advisors, LLC, a Texas limited liability company (the "<u>Spinco</u>"). Parent and Spinco are hereinafter collectively referred to as the "<u>Parties</u>," or separately, as a "<u>Party</u>." Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Separation Agreement (as defined below).

<u>RECITALS</u>

**WHEREAS**, this Agreement is being delivered contemporaneously with the Closing of the transactions contemplated by that certain Separation Agreement and Plan of Distribution, dated December 19, 2025, pursuant to which the Parties set out the terms and conditions relating to the separation of the Spinco Business from Parent (such agreement, as amended, restated or modified from time to time, the "<u>Separation Agreement</u>"); and

**WHEREAS**, each Party has agreed to provide, or cause to be provided, those certain services set forth on <u>Exhibit A</u> (as may be amended from time to time in accordance with this Agreement, including without limitation pursuant to a Change Order, the "<u>Services</u>") to the other Party on the terms and subject to the conditions set forth in this Agreement.

<u>AGREEMENT</u>

**NOW, THEREFORE**, in consideration of the promises and the mutual representations, warranties, covenants and undertakings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

**ARTICLE I<br> Definitions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Certain Definitions</u>. As used in this Agreement, the following terms have the following meanings:

"<u>Affiliate</u>" has the meaning set forth in the Separation Agreement.

"<u>Agreement</u>" has the meaning set forth in the preamble.

"<u>Alternative Services</u>" has the meaning set forth in <u>Section 2.9</u>.

"<u>Applicable Business</u>" means (i) with respect to Spinco as the Recipient, the Spinco Business, and (ii) with respect to Parent as the Recipient, the business of Parent or its applicable Affiliates, but excluding the Spinco Business.

"<u>Applicable Termination Date</u>" means, with respect to each Service, the termination date specified with respect to such Service, as applicable, in <u>Exhibit A</u>.

"<u>Authorizations</u>" means any consents, waivers, notices, reports or other filings obtained, made or to be obtained from or made, including with respect to any Contract, or any registrations, notifications, dossiers, appendices, licenses, permits, approvals, authorizations obtained or to be obtained from, or approvals from, or notification requirements to, any Person including a Governmental Entity.

"<u>Change Order</u>" has the meaning set forth in <u>Section 2.5</u>.

"<u>Confidential Information</u>" has the meaning set forth in <u>Section 6.3.1</u>.

"<u>Contract</u>" has the meaning set forth in the Separation Agreement.

"<u>Data Protection Laws</u>" means all applicable national, federal, and state Laws relating to the processing of Personal Information, privacy, and data security breaches, including where applicable the Federal Trade Commission Act, and all other national, federal, and state Laws relating to processing of Personal Information.

"<u>Due Date</u>" has the meaning set forth in <u>Section 3.2</u>.

"<u>Effective Time</u>" has the meaning set forth in the Separation Agreement.

"<u>Excluded Clients</u>" has the meaning set forth in <u>Section 2.1.4</u>.

"<u>Extension Term</u>" has the meaning set forth in <u>Section 2.2</u>.

"<u>Force Majeure</u>" has the meaning set forth in the Separation Agreement.

"<u>Governmental Entity</u>" has the meaning set forth in the Separation Agreement.

"<u>Intellectual Property</u>" means, collectively, all U.S. and foreign intellectual property rights, and any and all intellectual property and other similar proprietary rights, as they exist anywhere in the world, whether registered or unregistered, including trademarks, patents, copyrights, and Trade Secrets.

"<u>Invoice Dispute Notice</u>" means a written notice delivered by the Recipient to the Provider on or prior to the Due Date with respect to the disputed invoice listing all disputed items and, to the extent then known, providing a reasonably detailed description of each dispute.

"<u>Law</u>" has the meaning set forth in the Separation Agreement.

"<u>Losses</u>" means any and all losses, liabilities, damages, fees, costs and expenses (including reasonable attorneys' fees and reasonable costs of investigation).

"<u>Out-of-Pocket Costs</u>" has the meaning set forth in <u>Section 3.1</u>.

"<u>Parent</u>" has the meaning set forth in the preamble.

"<u>Parent Indemnified Party</u>" means Parent, its Affiliates, and their respective stockholders, members, partners, directors, managers, officers, and employees and the respective successors and assigns of the foregoing.

"<u>Party</u>" or "<u>Parties</u>" has the meaning set forth in the preamble.

"<u>Person</u>" has the meaning set forth in the Separation Agreement.

"<u>Personal Information</u>" means all information identifying or relating to an identified or identifiable individual.

"<u>Provider</u>" means with respect to any of the Services, the Party who is required to provide or cause to be provided the relevant Service to the Recipient, including as specified in <u>Exhibit A</u>, in such Party's capacity as a provider of Services.

"<u>Recipient</u>" means with respect to any of the Services, the Party to receive the Service from the Provider, as specified in <u>Exhibit A</u>, in such Party's capacity as a recipient of Services.

"<u>Security Incident</u>" has the meaning set forth in <u>Section 2.11</u>.

"<u>Separation Agreement</u>" has the meaning set forth in the recitals.

"<u>Service Fees</u>" has the meaning set forth in <u>Section 3.1</u>.

"<u>Service Required</u>" has the meaning as set forth on <u>Exhibit A</u> hereto.

"<u>Service Standard</u>" has the meaning set forth in <u>Section 2.4</u>.

"<u>Service Taxes</u>" has the meaning set forth in <u>Section 3.3.1</u>.

"<u>Service Term</u>" has the meaning set forth in <u>Section 2.1.1</u>.

"<u>Services</u>" has the meaning set forth in the recitals.

"<u>Services Representative</u>" has the meaning set forth in <u>Section 2.8</u>.

"<u>Spinco</u>" has the meaning set forth in the preamble.

"<u>Spinco Business</u>" has the meaning set forth in the Separation Agreement.

"<u>Spinco Indemnified Party</u>" means Spinco and its Affiliates, and their respective stockholders, members, partners, directors, managers, officers, and employees and the respective successors and assigns of the foregoing.

"<u>Subsidiary</u>" or "<u>Subsidiaries</u>" has the meaning set forth in the Separation Agreement.

"<u>Third Party Offerings</u>" has the meaning set forth in <u>Section 2.10</u>.

"<u>Third Party Terms</u>" has the meaning set forth in <u>Section 2.10</u>.

"<u>Trade Secrets</u>" means any and all trade secrets, know-how and other confidential information.

**ARTICLE II<br> Services**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Services Provided by the Provider</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;2.1.1 The Provider shall provide, or cause to be provided, each Service to the Recipient (or one or more of its Affiliates, as may be designated in writing by the Recipient from time to time) in a manner in accordance with <u>Section 2.4</u> during the period commencing on the date hereof and ending on the date of the Applicable Termination Date of such Service, subject to extension as set forth in <u>Section 2.2</u> (with respect to each Service, the "<u>Service Term</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;2.1.2 If there is any inconsistency between the terms of <u>Exhibit A</u> and the terms of this Agreement, the terms of <u>Exhibit A</u> shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3 The Parties agree and acknowledge that the Provider is not in the business of providing the Services to independent third parties and the Services are to be provided by the Provider or its designees solely to enable the Recipient to manage the operation of its Applicable 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;2.1.4 Spinco agrees that, for a period ending no later than one (1) year following the Closing Date (and likely for a shorter period as reasonably determined by Spinco), Spinco will, using commercially reasonable efforts, accommodate those clients and their registered representatives set forth on *<u>Confidential Schedule 2.1.4</u>* hereof (collectively, the "Excluded Clients") solely to permit an orderly transition of such Excluded Clients off the Spinco platform. During such transition period, Spinco shall provide such limited systems access, data availability, and custodial interfaces as are reasonably necessary to facilitate the transition, but only to the extent permitted under applicable law and Spinco's contractual arrangements with custodians and other service providers. All advisory fees attributable to the Excluded Clients shall accrue and, commencing on January 1, 2026, shall be paid to the registered investment adviser to which such Excluded Clients ultimately transition. Nothing in this Section obligates Spinco to extend such accommodation beyond the period reasonably required to complete such transition, and Spinco shall have no responsibility for the ongoing servicing of the Excluded Clients following such transition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.5 Notwithstanding anything to the contrary herein, Parent shall cause A. Haag Sherman ("<u>Mr. Sherman</u>"), as a part of his job responsibilities, to serve on the Investment Committee of Cain Watters & Associates, LLC ("<u>CWA</u>"), and to participate in such meetings, deliberations, and voting processes as historically performed by a member of the investment committee. Mr. Sherman shall provide such participation in good faith, consistent with the historical role by an investment committee member, and in a manner reasonably requested by CWA. This service shall be provided without additional compensation to Parent or Mr. Sherman. Unless terminated earlier in writing by CWA (at its sole and absolute discretion), this obligation shall terminate upon the fifth anniversary of the Distribution Date, unless extended by mutual written agreement of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Extension to Service Term</u>. Any extension to the Service Term (an "<u>Extension Term</u>") hereunder shall require the prior written agreement of the Parties, not to be unreasonably withheld, conditioned or delayed. Except for the foregoing, under no circumstances shall the Provider be obligated to extend the Service Term; *provided*, *however*, in the event such an Extension Term is so applicable and/or agreed upon, the Parties agree that the Service Fees shall increase in accordance with <u>Section 3.1</u>. Subject to the foregoing, any services so performed by the Provider (or its designees) as a result of an extension shall continue to constitute Services and be subject in all respects to the provisions of this Agreement. During any Extension Term, the Recipient agrees to use commercially reasonable efforts to make a transition of each Service to the Recipient's own internal organization, or to obtain alternate third-party sources to provide such Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Subcontractors</u>. Notwithstanding anything to the contrary herein, the Provider shall have the right, in its reasonable discretion, to utilize third-party subcontractors to provide all or any portion of the Services, whether such subcontractors are used in the ordinary course consistent with the Provider's or Spinco's historical practice or otherwise. To the extent the Provider engages subcontractors that have been historically used to support services provided to Spinco (or its predecessors), and to the extent Spinco has historically borne the cost of such subcontractors, the actual and reasonable costs associated with such subcontractors shall be passed through to Spinco as Out-of-Pocket Costs. All other subcontractor costs shall be borne solely by the Provider. Any subcontractor that has **not** been historically used to support services for Spinco shall, prior to performing any Services, agree in writing to confidentiality obligations at least as protective as those set forth in this Agreement. The Provider shall retain responsibility for all Services performed by any subcontractor, including ensuring that such Services meet the Service Standard, and shall remain responsible and liable for all actions and omissions of its subcontractors as if the Provider had performed such actions itself. For the avoidance of doubt, the Provider shall have the sole authority to select and designate subcontractors used to perform the Services, and the Recipient shall not require the Provider to use any particular subcontractor or service provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Standard of Service; Disclaimer of Warranties</u>. Subject to <u>Section 2.9</u>, the Provider represents and warrants to the Recipient that, as of the date hereof, the Provider has obtained all Authorizations required for the Provider to perform the Services on the terms set forth in this Agreement. The Provider agrees that the Services to be provided hereunder shall be performed in a professional and workmanlike manner, in good faith, in accordance with applicable Law and in a manner, quality, skill, attention and care generally consistent with the historical provision of such services by the Provider or any of its Affiliates (to the extent such Services were performed by the Provider or any of such Affiliates prior to Closing) to the Applicable Business during the twelve (12) months prior to the date hereof (the "<u>Service Standard</u>"). EXCEPT AS EXPRESSLY SET FORTH IN THIS <u>SECTION 2.4</u>, NEITHER THE PROVIDER NOR ANY PERSON ON THE PROVIDER'S BEHALF MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND, IMPLIED OR EXPRESSED, WITH RESPECT TO THE SERVICES, THE PERFORMANCE THEREOF, OR OTHERWISE RELATING TO THIS AGREEMENT (OTHER THAN TO THE EXTENT EXPRESSLY SET FORTH IN THE SEPARATION AGREEMENT), INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WHICH ARE SPECIFICALLY DISCLAIMED, AND THE RECIPIENT ACKNOWLEDGES AND AGREES THAT IT HAS NOT RELIED ON ANY SUCH REPRESENTATIONS OR WARRANTIES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Change Order Process</u>. Any change in the scope or duration of any Service described on <u>Exhibit A</u> must be agreed upon by the Parties (such agreement not to be unreasonably withheld, conditioned or delayed) and described in a document signed by the Services Representative of each Party (a "<u>Change Order</u>"). The Provider shall not be obligated to perform work beyond the scope of the Services set out on <u>Exhibit A</u> without a Change Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Cooperation; Access</u>. The Provider shall, and shall cause its designees to, devote such time and attention as is necessary to provide the Services timely and in accordance with this Agreement and reasonably cooperate and assist with any reasonable request by the Recipient to the extent required for effective delivery or provision of any Service. In addition, the Recipient agrees that it shall provide to the Provider and its designees, at no cost to the Provider or such designees, access to the facilities, assets, systems, software, information systems, and books and records of the Recipient, in all cases only to the extent reasonably necessary for the Provider to fulfill its obligations under this Agreement. Should the Provider access information systems operated by the Recipient storing Personal Information, the Recipient shall take safeguards to prevent any access by the Provider to such Personal Information beyond that required to provide Services to the Recipient, in accordance with <u>Section 2.11</u> of this Agreement. Each Party agrees to comply with the other Party's written security policies, procedures and requirements, and information security policies, when accessing the other Party's facilities, assets, systems, software, information systems and books and records and will not tamper with, compromise, or circumvent any security or audit measures employed by such other Party. Each Party shall use its commercially reasonable efforts to ensure that only those of its personnel who are specifically authorized to have access to the facilities, assets, systems, software, information systems and books and records of the other Party gain such access, and to prevent unauthorized access, use, destruction, alteration or loss in connection with such access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Provider Responsibilities</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;2.7.1 The Provider shall: (a) maintain sufficient personnel and other resources to perform its obligations hereunder (notwithstanding any provision herein to the contrary) as required hereby and on a timely basis; (b) promptly notify the Recipient of any staffing problems and any other material problems that have occurred or are reasonably anticipated to occur that would reasonably be expected to adversely affect in any material manner, on a Service by Service basis, the Provider's ability to provide the Services and the Parties shall work together in good faith (including, on the part of the Provider, using reasonable best efforts) to remedy any such problems; (c) promptly notify the Recipient of any inability to perform a Service or compliance problems in connection with the Services that have occurred or are reasonably anticipated to occur, and of which the Provider becomes aware; and (d) while Services are being provided pursuant to this Agreement, maintain in full force and effect, and not terminate or cancel, any licenses, permits, insurance coverages and other Authorizations required to be maintained by the Provider in order to provide such Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.2 In addition, during the Service Term or Extension Term and for a reasonable period of time following the expiration or termination of this Agreement, the Provider shall, and shall cause its representatives to, (a) furnish the Recipient with such historical data and other historical information related to the Applicable Business as the Recipient may reasonably request in order to comply with requests by a Governmental Entity or otherwise comply with applicable Law and (b) provide reasonably sufficient knowledge transfer in respect of each Service Required as reasonably requested by the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Services Representatives</u>. Parent and Spinco will each appoint one or more representatives (each, a "<u>Services Representative</u>") to facilitate communications and performance under this Agreement and have overall responsibility for coordinating and managing the Services on behalf of the Parties. Each Party may treat an act of a Services Representative of the other Party as being authorized by such other Party. Each Party may replace its Services Representative and appoint project managers for each service function at any time for any reason by giving prior written notice of the replacement or appointment to the other Party. The listed contact for each Party in <u>Exhibit A</u> shall be a Party's appointed project manager for each service function listed in <u>Exhibit A</u>. Each Services Representative, and any successor, shall have the education background, skills, and other qualifications necessary to perform such person's assigned duties hereunder. Each Services Representative shall appoint or designate in writing directed to the other Services Representative, a person to act in such Services Representative's stead on day-to-day matters within various functional areas when the Services Representative is unavailable. The action of any one Party's Services Representative shall be deemed the action of such Party. Subject to the right to delegate duties to others (i.e., the project managers), the Services Representatives shall serve as the primary contact point for their respective principals with respect to the obligations under this Agreement. Each Services Representative's responsibilities shall include: (a) mitigating and resolving technical and business issues; (b) making available any data, facilities, resources and other support services reasonably necessary for the Parties to perform their respective obligations in accordance with the requirements of this Agreement; and (c) managing the delivery of the Services. Nothing in this Agreement shall be deemed to authorize a Services Representative to amend this Agreement or terminate a Service in any way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Third Party Consents</u>. If, during the Service Term or Extension Term, the Provider discovers that it does not possess any Authorization required for the Provider to perform the Services in accordance with this Agreement, or additional Authorizations are needed to perform any Service, the Provider shall use commercially reasonable efforts to obtain such Authorizations. All costs of obtaining any such Authorizations, including any payments that are required to any third party, shall be shared equally between the Parties. If, at any point during the Service Term or Extension Term, the Provider or the Recipient reasonably believes that the Provider is unable to provide such Service because of a failure to obtain any Authorization, the Provider shall use its commercially reasonable efforts to provide alternative services in the same quality, amount and manner as if such Authorization were obtained (the "<u>Alternative Services</u>"), and any costs, fees or expenses associated with such Alternative Services (excluding general overhead and any other direct or indirect internal costs incurred by the Provider in providing such Alternative Services) shall constitute Out-of-Pocket Costs hereunder and shall be borne by the Provider. Notwithstanding the foregoing or anything to the contrary in any other agreement among the Parties, the Parties acknowledge and agree that for any Alternative Services required in relation to Information Technology set forth on <u>Exhibit A</u>, the Recipient may, at its option, obtain any Authorizations required for any software or services necessary for such Information Technology at the sole cost and expense of the Recipient, and the Provider shall, upon the Recipient exercising such option, continue to provide the Recipient with Alternative Services for such Information Technology in support of any such Authorizations obtained by the Recipient hereunder, as needed, including, without limitation, by providing the Recipient with a cloned environment of the Provider's software and services that are used or in any way associated with such Information Technology. In the event a third party shall require the Recipient to contract directly with such third party for one or more Services (rather than permit the Provider to utilize its own contract with such third party to perform one or more such Services), the Parties shall mutually agree on an adjustment to the Service Fees applicable to such Services hereunder. The Recipient shall reasonably cooperate with and assist the Provider in connection with obtaining any Authorizations necessary for the provision or receipt of the Services. The Parties acknowledge that it may not be practical to try to anticipate and identify every possible legal, regulatory, and logistical impediment to the provision of Services hereunder. Accordingly, each Party will promptly notify the other Party if it reasonably determines that there is a legal, regulatory, or logistical impediment to the provision of any Service, and the Parties shall each use reasonable best efforts to overcome such impediments so that the Services may be provided otherwise in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Third Party Terms</u>. The Recipient acknowledges and agrees that the Services are dependent upon and provided by the Provider through the use and operation of certain products, services, platforms, and offerings provided by third party vendors ("<u>Third Party Offerings</u>") and that access to and use of such Third Party Offerings is provided by such third party vendors subject to and conditioned upon agreement to certain specified end user terms and conditions ("<u>Third Party Terms</u>"). The Provider will provide the Recipient with copies of all applicable Third Party Terms in advance of providing any Services to the Recipient involving access to or use of any such Third Party Offerings. The Recipient agrees to be bound by all such Third Party Terms to the extent such agreement is reasonably required for access to or use or receipt of any Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>Processing of Personal Information</u>. To the extent the provision of any Service involves the processing of Personal Information, each Party shall be responsible for compliance with the Data Protection Laws as applicable to such Party. The Provider agrees not to access Personal Information held by the Recipient other than as is necessary to provide the Services to the Recipient or as otherwise required by applicable Law. The Provider further agrees to establish and maintain administrative, physical and technical safeguards, data security procedures and other protections against the destruction, loss, unauthorized access or alteration of any Personal Information processed on behalf of the Recipient which are no less rigorous than those otherwise maintained for Personal Information processed on its own behalf. In the event of accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to Personal Information (a "<u>Security Incident</u>") implicating any Personal Information processed pursuant to this Agreement, the Provider shall notify the Recipient as soon as reasonably practicable and shall cooperate in responding to such Security Incident. If and to the extent required by Data Protection Laws, the Parties agree to make all commercially reasonable efforts to make necessary amendments to this Agreement. The Parties will agree on the necessary changes in good faith, taking into account the obligation to carry out this contractual relationship in compliance with Data Protection Laws.

**ARTICLE III<br> Compensation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Fees and Expenses</u>. As consideration for performance of the Services on the terms, in the manner, and subject to the conditions set forth herein, the Recipient shall pay (or cause to be paid) to the Provider the fees and charges set forth on <u>Exhibit A</u> for each Service listed therein as adjusted, from time to time, in accordance with the processes and procedures established under this <u>Section 3.1</u> and <u>Section 3.2</u> hereof (such fees and charges, the "<u>Service Fees</u>"). In addition to the Service Fees, the Recipient shall reimburse the Provider (or cause the Provider to be reimbursed) for all expenses incurred by the Provider on behalf of the Recipient in connection with the provision of the Services hereunder which constitute actual and verifiable reasonable direct out-of-pocket expenses without mark-up or administrative cost or fee of any kind imposed by the Provider (such expenses, the "<u>Out-of-Pocket Costs</u>"). Upon request, the Provider shall provide the Recipient with substantiating documentation verifying all such expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Payment</u>. Except as otherwise provided on <u>Exhibit A</u> (and subject thereto), within thirty (30) days after the end of each calendar month during the term of this Agreement, the Provider shall deliver to the Recipient an invoice with respect to the Services provided during such month and which shall set forth the Service Fees and Out-of-Pocket Costs (including substantiating documentation for all such Out-of-Pocket Costs) owing hereunder with respect thereto; *provided*, that, for the avoidance of doubt, if any Service is terminated prior to the end of any calendar month, the applicable Service Fees and (if appropriate) Out-of-Pocket Costs for such month shall be pro-rated based on the actual last date of the provision of such Service (except with respect to the portion of such Service Fees and Out-of-Pocket Costs that is incurred or paid by the Provider or any Affiliate with respect to terminating commitments with third parties). All invoices will be submitted in U.S. dollars. All payments shall be made in U.S. dollars without reduction for any withholding taxes, unless otherwise required by applicable Law. Except as otherwise provided on <u>Exhibit A</u> (and subject thereto), the Recipient shall pay (or cause to be paid) the Service Fees and Out-of-Pocket Costs invoiced by the Provider within thirty (30) days after its receipt of the corresponding invoice (the "<u>Due Date</u>"). Interest shall accrue on any amount not subject to an Invoice Objection Notice which continues to be due and owing from the Recipient during the period following the Due Date (or, with respect to any amount subject to an Invoice Objection Notice, from the date such dispute is resolved) until such amount is paid in full, at a rate equal to ten percent (10%) per annum. The Provider shall be entitled to suspend performance under this Agreement upon the second failure of the Recipient to timely pay the Service Fees and Out-of-Pocket Costs for Services required under this Agreement, except to the extent that such payment is subject to an Invoice Dispute Notice; *provided*, *however*, that (a) the Provider must provide written notice of its intention to suspend, or cause to be suspended, performance of any such Services and provide the Recipient thirty (30) days to cure such failure in full, and (b) the Provider is only permitted to suspend the performance of Services to which such uncured failure to pay directly relates. In the event of a dispute with respect to the amount of any Service Fees or Out-of-Pocket Costs, the Recipient shall deliver to the Provider an Invoice Dispute Notice. Any amounts not so disputed shall be deemed accepted and shall be paid (despite disputes on other items) as provided in this <u>Section 3.2</u>. The Parties shall endeavor to settle all invoice disputes promptly and in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Taxes</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;3.3.1 The Recipient shall be responsible for all sales, goods, use, services, excise, value added, or other similar taxes imposed on the provision of goods and services, if any, imposed or assessed as a result of the provision of Services by the Provider or its designees ("<u>Service Taxes</u>") as required under applicable Law; *provided*, that neither Party shall have any liability for, nor be obligated to pay, any income, franchise, withholding, payroll, property or similar taxes of the other Party; *provided further*, that the Recipient will not be responsible for any Service Taxes attributable to the Provider's failure to comply with any applicable certification, identification, documentation, information or other reporting requirement, in each case, required to be satisfied by the Provider 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;3.3.2 The Parties shall use commercially reasonable efforts to (a) minimize the amount of Service Taxes, (b) claim (i) the benefit of any exemptions or reductions in applicable rates, and (ii) any available refunds or credits of Service Taxes, and (c) minimize any other incremental tax burden on any Party or any of its Affiliates as a result of the provision of Services under this Agreement. Any such refund or credit of Service Taxes recovered shall be paid to the Party that bore the relevant tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Books and Records</u>. The Provider shall, and shall cause its Affiliates and third-party subcontractors to, preserve and maintain complete and accurate books of account as necessary to support calculations of the Service Fees, Out-of-Pocket Costs and Service Taxes and shall make such books available to the Recipient, upon reasonable notice, during normal business hours.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Audit Rights</u>. No more than once every three (3) months during the term of this Agreement, the Recipient shall have the right, upon reasonable advance written notice to the Provider, to audit the Provider's books and records to the extent related to the Out-of-Pocket Costs to confirm such charges. Upon written request by the Recipient, the Provider shall, or shall cause its Affiliates to, within a reasonable period of time, provide, at the Recipient's sole cost and expense, all assistance, records and access reasonably requested by the Recipient in responding to such audit, to the extent that such assistance, records or access is within the reasonable control of the Provider and relates solely to the Out-of-Pocket Costs. The Recipient shall be responsible for all costs and expenses of each such audit; *provided*, that if the results of any such audit reveal an error of ten percent (10%) or more in favor of the Recipient, then the Provider shall be responsible for the costs and expenses of such audit. The Recipient's audit right pursuant to this <u>Section 3.5</u> may be commenced at any time during the term of this Agreement and up to thirty (30) days following the expiration of the term of this Agreement or earlier termination of this Agreement in accordance with <u>Article IV</u>.

**ARTICLE IV<br> Term and Termination**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Term</u>. The term of this Agreement shall commence as of the date hereof and shall end twelve (12) months following the date hereof, unless earlier terminated under Section 4.3 or extended under Section 2.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Early Termination of Services or Service Categories</u>. Notwithstanding anything contained herein to the contrary, one or more Service Categories or one or more Services, may be terminated 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;4.2.1 by written agreement of the Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.2 by the Recipient, at its sole discretion, by delivering a written notice of termination to the Provider at least fifteen (15) days (or such fewer number of days as mutually agreed between the Parties, such agreement not to be unreasonably withheld, conditioned or delayed) in advance of such termination; *provided, however*, that such termination right shall not apply if such termination (x) would cause the Provider or any Affiliate thereof to incur any material costs or expenditures specifically arising from the termination of such Service or Service Categories and (y) the Recipient fails to agree in writing to reimburse the Provider and its Affiliates for any such documented costs and expenditures; 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;4.2.3 by the Provider, at its sole discretion, at any time after the first anniversary of the date of this Agreement (unless the Parties have agreed to an Extension Term), by delivering a written notice of termination to the Recipient at least thirty (30) days (or such fewer number of days as mutually agreed between the Parties, such agreement not to be unreasonably withheld, conditioned or delayed) in advance of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Early Termination of Agreement</u>. Notwithstanding anything contained herein to the contrary, this Agreement may be terminated 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;4.3.1 by written agreement of the Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2 by Spinco, upon the material breach by Parent of any of its obligations under this Agreement, including the failure to pay any amounts owed by Parent hereunder which are not being disputed in good faith or the failure by Parent to provide the Services in a manner that is timely and meets the Service Standard, subject to Spinco providing Parent with written notice of such breach and Parent being afforded a reasonable cure period of no less than thirty (30) days from receiving such written notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3 by Parent, upon the material breach by Spinco of any of its obligations under this Agreement, including the failure to pay any amounts owed by Spinco hereunder which are not being disputed in good faith or the failure by Spinco to provide the Services in a manner that is timely and meets the Service Standard, subject to Parent providing Spinco with written notice of such breach and Spinco being afforded a reasonable cure period of no less than thirty (30) days from receiving such written notice; 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;4.3.4 by Parent, on the one hand, or Spinco, on the other hand, by delivering a written notice of termination to the other Party if (a) a court having jurisdiction in the premises shall enter a decree or order for relief in respect of the other Party in an involuntary case under any applicable bankruptcy, insolvency or other similar Law now or hereafter in effect in the United States or any other jurisdiction, which decree or order is not stayed; or any other similar relief with respect to the other Party shall be granted and remain unstayed under any applicable Law, (b) an involuntary case is commenced against the other Party under any applicable bankruptcy, insolvency or other similar Law now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, trustee, custodian or other officer having similar powers over such other Party or over all or a substantial part of any of their respective properties, shall have been entered, or an interim receiver, trustee or other custodian of such other Party for all or a substantial part of their respective properties is involuntarily appointed, and any such event described in this clause (b) continues for sixty (60) days without being dismissed, bonded, stayed, vacated or discharged, (c) the other Party shall have an order for relief entered with respect to it in, or commence, a voluntary case under any applicable bankruptcy, insolvency or other similar Law now or hereafter in effect in the United States or any other jurisdiction, or shall consent to the entry of an order for relief in an involuntary case, or shall consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property, or (d) the making by the other Party of any assignment for the benefit of creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Effect of Termination</u>. Upon termination or expiration of any of the Services or Service Categories pursuant to this Agreement, or upon the termination of this Agreement in its entirety, the Provider shall have no further obligation to provide the applicable (or any, as the case may be) Services. In addition, upon the termination of this Agreement all obligations of the Parties shall terminate, *provided that* all obligations that expressly survive termination of this Agreement, the obligations of the Recipient with respect to the payment of any Service Fees and Out-of-Pocket Costs accrued prior to the termination or expiration that are payable hereunder and the provisions of <u>ARTICLE IV</u> through <u>ARTICLE VI</u> shall survive any termination or expiration of this Agreement. In the event that this Agreement or any applicable Service or Service Required is terminated at any point during a month and the Service Fee payable for such particular Service or Service Required has already been paid (or was due in accordance with the terms of this Agreement), such Service Fee shall be prorated, and reimbursed to the Recipient based on the actual last date of the provision of such Service or Service Required (except with respect to the portion of such Service Fee that is incurred or paid by the Provider or any Affiliate with respect to terminating commitments with third parties).

**ARTICLE V<br> Liability; Indemnification**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Parent Indemnification</u>. Subject to the remainder of this <u>Section 5.1</u> and to <u>Section 5.3</u>, Parent agrees to defend, indemnify and hold harmless any Spinco Indemnified Party from and against any and all Losses to the extent that such Losses result from (a) any breach or nonperformance of any provision of this Agreement by Parent (including, without limitation, the non-payment of any fees required to be paid hereunder), (b) any bodily injury or material damage to any property of the Spinco Indemnified Parties (ordinary wear and tear excepted) caused by the fraud, gross negligence or willful misconduct of Parent or its agents, subcontractors, employees or representatives in connection with the provision of the Services under this Agreement, (c) violation of any Law in providing any Services, (d) violation of third party rights in providing any Services, (e) fraud, gross negligence or willful misconduct of Parent or its agents, subcontractors, employees or representatives with respect to the provision of the Services, (f) the provision, receipt or use of any Service infringing, misappropriating or otherwise violating any Intellectual Property of a third party, or (g) action taken by, or any inaction of, Spinco and its Affiliates, at the request of Parent in furtherance of or in connection with this Agreement. Notwithstanding the foregoing, a SPINCO INDEMNIFIED PARTY'S right to indemnification pursuant to this <u>Section 5.1</u> shall not exceed the fees received by Parent pursuant to this Agreement EXCEPT TO THE EXTENT SUCH DAMAGES ARISE FROM FRAUD, Gross negligence or Willful misconduct OF Parent OR Parent's DESIGNEES (INCLUDING AFFILIATES, AGENTS, EMPLOYEES, REPRESENTATIVES OR THIRD-PARTY SUBCONTRACTORS). The amount of any Losses for which indemnification is provided under this <u>Section 5.1</u> shall be net of any amounts actually recovered by Spinco Indemnified Party in respect of such Losses under its insurance policies or otherwise, less costs of recovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Spinco Indemnification</u>. Subject to the remainder of this <u>Section 5.2</u> and <u>Section 5.3</u>, Spinco agrees to indemnify and hold harmless any Parent Indemnified Party from and against any and all Losses to the extent such Losses result from (a) any breach or nonperformance of any provision of this Agreement by Spinco (including, without limitation, the non-payment of any fees required to be paid hereunder), (b) any bodily injury or material damage to any property of the Parent Indemnified Parties (ordinary wear and tear excepted) caused by the fraud, gross negligence or willful misconduct of Spinco or its agents, subcontractors, employees or representatives in connection with the provision of the Services under this Agreement, (c) violation of any Law in providing any Services, (d) violation of third party rights in providing any Services, (e) fraud, gross negligence or willful misconduct of Spinco, or its agents, subcontractors, employees or representatives with respect to the provision of the Services, (f) the provision, receipt or use of any Service infringing, misappropriating or otherwise violating any Intellectual Property of a third party, or (g) action taken by, or any inaction of, Parent and its Affiliates, at the request of Spinco in furtherance of or in connection with this Agreement. Notwithstanding the foregoing, A PARENT INDEMNIFIED PARTY'S right to indemnification pursuant to this <u>SECTION 5.2</u> shall not exceed the fees PAID OR PAYABLE by Spinco pursuant to this Agreement EXCEPT TO THE EXTENT SUCH DAMAGES ARISE FROM FRAUD, Gross negligence or Willful misconduct OF Spinco OR Spinco's DESIGNEES (INCLUDING AFFILIATES, AGENTS, EMPLOYEES, REPRESENTATIVES OR THIRD-PARTY SUBCONTRACTORS). The amount of any Losses for which indemnification is provided under this <u>Section 5.2</u> shall be net of any amounts actually recovered by the Parent Indemnified Party in respect of such Losses under its insurance policies or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Further Limitation of the Parties' Liability</u>. EACH PARTY AGREES THAT NO PARTY SHALL BE LIABLE TO THE OTHER PARTY OR ANY OTHER PERSON UNDER ANY LEGAL THEORY (INCLUDING WITHOUT LIMITATION BREACH OF CONTRACT, STRICT LIABILITY, NEGLIGENCE OR ANY OTHER LEGAL THEORY) UNDER THIS AGREEMENT FOR (X) ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES OR (Y) ANY DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT OTHER THAN REASONABLY FORESEEABLE ACTUAL AND DIRECT DAMAGES, EXCEPT IN THE CASE OF fraud, gross negligence OR willful misconduct OR CLAIMS BY THIRD PARTIES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Indemnification Procedures</u>. Sections 7.5 through 7.8 of the Separation Agreement shall apply *mutatis mutandis* with respect to any Liability subject to indemnification or reimbursement pursuant to Article V of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Exclusive Remedy</u>. Except in the case of fraud or in the case where a party seeks specific performance or other equitable or injunctive relief and without limiting any termination rights of a Party pursuant to this Agreement, the provisions of this <u>ARTICLE V</u> constitute Spinco's and Parent's sole and exclusive remedy with respect to any claim or cause of action arising out of or relating to this Agreement (whether in contract, tort or otherwise).

**ARTICLE VI<br> General Terms and Miscellaneous**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Force Majeure</u>. The Provider shall not be responsible for any failure or delay in performance hereunder, and such failure or delay shall not constitute a breach hereof, if such failure or delay is caused by a Force Majeure. In the event of a Force Majeure, the Provider shall give prompt notice of suspension of Services to the Recipient as soon as reasonably practicable, stating the date and extent of such suspension and the cause thereof, and to the extent Services are available after the occurrence of a Force Majeure, the Provider shall resume the performance of such Services as soon as reasonably practicable after the cessation of the Force Majeure. The Recipient shall be free to acquire any Services from an alternate source, at the Recipient's sole cost and expense, and without liability to the Provider, for the period and to the extent reasonably necessitated by such non-performance pursuant to this <u>Section 6.1</u>, and the Provider shall reasonably cooperate with, provide information reasonably necessary for and material to, and take such other actions as may be reasonably required to assist such alternate source to provide such Services during such period. The Recipient shall not be obligated to pay the Provider for any Services during any period when the Provider is not providing itself, or through a third party, such Services. During the duration of a Force Majeure, the Provider shall minimize to the extent reasonably practicable the effect of the Force Majeure on its obligations hereunder and to the extent reasonably practicable use reasonable best efforts to avoid or remove such Force Majeure and to resume delivery of the affected Services with the least delay practicable. No Party shall be excused from performance if such Party fails to use reasonable best efforts (to the extent reasonably practicable) to remedy the situation and remove the cause and effects of the Force Majeure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Ownership and Licenses of Intellectual Property and Materials</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;6.2.1 Except as expressly provided in this Agreement, no license, title, ownership or other Intellectual Property rights are transferred from Parent to Spinco or from Spinco to Parent pursuant to this Agreement and each Party (and their respective Affiliates) shall retain exclusive ownership, together with all Intellectual Property rights therein, of any proprietary material and of any and all other Confidential Information, Trade Secrets, and other data or content that such Party (or its Affiliates) uses to provide or receive the Services, as applicable, in connection with 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;6.2.2 Subject to the terms and conditions of this Agreement, (a) the Provider (on behalf of itself and its Affiliates) hereby grants to the Recipient a non-exclusive, royalty-free right and license to use, during the term of this Agreement, any and all Intellectual Property owned or licensable by the Provider or its Affiliates, but solely for the purpose of permitting the Recipient to receive and use the Services under this Agreement, and (b) the Recipient (on behalf of itself and its Affiliates) hereby grants to the Provider a non-exclusive, royalty-free right and license to use, during the term of this Agreement, any and all Intellectual Property owned or licensable by the Recipient or its Affiliates, but solely for the purpose of enabling the Provider to provide the Services under this Agreement. Such licenses include the right to sublicense to each Party's Affiliates and third-party subcontractors that are necessary for each Party to provide or receive, as applicable, the Services under 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;6.2.3 Following a period of four (4) years following the termination or expiration of this Agreement, the Provider shall have no further duty to retain any books or records regarding the Recipient or to notify the Recipient prior to the disposition or destruction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Confidentiality</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;6.3.1 Subject to <u>Section 6.3.2</u>, Parent, on the one hand, and Spinco, on the other hand, shall treat as strictly confidential (and shall not disclose) any and all confidential, proprietary or non-public information received or obtained as a result of entering into or performing this Agreement, including that which relates to the provisions, subject matter, or performance of this Agreement, the negotiations relating to this Agreement or the other Parties or any aspect of its business or operations (such information, "<u>Confidential Information</u>"). No Party makes any representations or warranties regarding the accuracy of Confidential Information. A Party receiving Confidential Information related to the other Party shall not use such Confidential Information for any purpose other than the provision or receipt of the Services, as applicable. The restrictions contained in this <u>Section 6.3.1</u> shall survive the termination or expiration 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;6.3.2 A Party may disclose information which would otherwise be confidential if and to the extent it is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) required by applicable Law; *provided*, that, if permitted by applicable Law, the non-disclosing Party is given prompt notice of such Law and an opportunity to seek a protective order or other appropriate remedy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) required by any securities exchange or agency to which the disclosing Party is subject; *provided*, that the non-disclosing Party is given prompt notice of such requirement and an opportunity to seek a protective order or other appropriate remedy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) disclosed on a strictly confidential basis to such Party's Affiliates and employees who have a need to know such information to enable such Party to perform this Agreement; *provided*, that the disclosing Party will obtain a written agreement from such Affiliates or employees to abide by the confidentiality obligations set forth herein, or such Affiliates or employees shall otherwise have an obligation to keep such information confidential, and the disclosing Party shall remain responsible for any breach of the confidentiality obligations by such Party's Affiliates and employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) information that has come into the public domain through no fault of the disclosing Party; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) information that was developed independently without any use or reliance on the Confidential Information of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Insurance</u>. Throughout the term of this Agreement, each Party shall purchase and maintain, at its sole cost and expense, comprehensive general liability insurance with coverage limits in such amounts and on such other terms, conditions and exclusions as would be considered reasonably prudent based on the business activities of such Party. Upon written request, any Party shall provide a certificate of insurance confirming such coverage to any other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Relationship of the Parties</u>. In the performance of all work, duties, and obligations under this Agreement, it is mutually understood that the Provider and any party acting on the Provider's behalf is at all times acting and performing as an independent contractor with respect to the Recipient, and for the avoidance of doubt, neither this Agreement nor the Separation Agreement creates any fiduciary relationship, partnership, joint venture or relationship of trust or agency between the Parties. Neither the Provider nor the Recipient shall hold itself out as an agent of the other Party. Neither the Provider, on the one hand, nor the Recipient, on the other hand, has any right or authority to enter into any contract, warranty, guarantee or other undertaking in the name or for the account of the other Party, or to assume or create any obligation or liability of any kind, expressed or implied, on behalf of the other Party, or to bind the other Party in any manner whatsoever, or to hold itself out as having any right, power or authority to create any such obligation or liability on behalf of the other Party or to bind the other Party in any manner whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Employees</u>. So long as any employees of the Provider or any of its Affiliates are providing the Services to the Recipient under this Agreement, (a) such employees will remain employees of the Provider or such Affiliate, as applicable, and shall not be deemed to be employees of the Recipient for any purpose, (b) the Provider or such Affiliate, as applicable, shall be solely responsible for the payment and provision of all wages, bonuses and commissions, employee benefits, including severance and worker's compensation, and the withholding and payment of applicable taxes relating to such employment, and (c) the Provider or such Affiliate shall ensure that such employees are subject to written and enforceable obligations to assign all inventions created or developed by such employees during the provision of such Services to the Provider or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Right of Set-Off</u>. To the extent Parent or Spinco has the right to receive any amounts under any agreement or arrangement between Parent and Spinco (including, for the avoidance of doubt, the Separation Agreement and any Ancillary Agreement), then following notice of such proposed offset, such Party may satisfy such amounts out of and shall have a right of off-set against any amounts then currently owed by such Party to the other Party; provided, however, the Parties agree that, except for such right of set-off, disputes related to any other agreement shall not serve as grounds to delay any performance or payment obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Amendments; Waiver</u>. This Agreement may be amended and/or modified only in a written document signed by the Parties that specifically states that it is an amendment to this Agreement. No waiver by any Party of any of the provisions hereof shall be effective unless explicitly set out in writing and signed by the waiving Party. No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which, including those received via facsimile transmission or email (including in PDF format), shall be deemed an original, and all of which shall constitute one and the same Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>Assignment; Binding Effect; Successors</u>. None of the Parties may assign or delegate any of its rights or obligations under this Agreement without the prior written consent of the other Party, except that (a) either Party may assign any or all of its rights (but not any of its obligations) under this Agreement to any of its Affiliates without the other Party's consent, and (b) either Party may assign this Agreement without the other Party's consent in connection with a merger, consolidation or sale of all or substantially all of the assets of the assigning Party. No assignment or delegation permitted by this <u>Section 6.11</u> shall relieve any Party from its obligations hereunder. Any purported assignment in violation of the foregoing shall be void *ab initio*. This Agreement shall be binding on and inure to the benefit of the Parties and their respective successors and permitted assigns. If either Party consolidates, merges or converts into, or transfers all or substantially all of its stock or assets to, another Person, the resulting, surviving or transferee Person shall succeed to and be substituted for such Party and continue to be obligated with the same effect as if it had been an original party hereto; provided such resulting, surviving or transferee Person shall be obligated to expressly agree to assume and perform the duties and the obligations of such Party hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>Headings</u>. The heading references herein are for convenience purposes only, and shall not be deemed to limit or affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <u>Third Party Beneficiaries</u>. Except as expressly set forth in <u>ARTICLE V</u>, the provisions of this Agreement are solely between and for the benefit of, and are enforceable by, the Parties and do not inure to the benefit of, or confer rights upon, any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 <u>Entire Agreement</u>. This Agreement, including all exhibits, the Separation Agreement, and the other Ancillary Agreements, constitute the entire understanding of the Parties relating to the subject matter hereof and, together, such agreements supersede and replace all prior agreements, discussions and understandings relating to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15 <u>Specific Performance</u>. The Parties acknowledge that irreparable damage will occur and it will be impossible to measure the damages that would be suffered by the other Party if a Party fails to comply with this Agreement and that in the event of any such failure, monetary damages or any other remedy at Law, even if available, would not be an adequate remedy. It is accordingly agreed that the Parties shall be entitled to injunctive relief and specific performance to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, in each case without posting a bond or undertaking, this being in addition to any other remedy to which they are entitled under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.16 <u>Further Assurances</u>. Each Party covenants and agrees that, without any additional consideration, it shall execute and deliver, or shall cause its Affiliates to execute and deliver, such documents and other papers and shall take, or shall cause its Affiliates to take, such further actions as may be reasonably required or necessary to carry out the provisions of this Agreement and give effect to the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.17 <u>Other Provisions</u>. Sections 10.2 (*Notices*), 10.7 (*Severability*), 10.8 (*Governing Law; Jurisdiction*), and 10.14 (*Construction*) of the Separation Agreement are hereby incorporated by reference in this Agreement, and shall apply *mutatis mutandis*.

**[The Remainder of this Page has been Intentionally Left Blank]**

IN WITNESS WHEREOF, the Parties have executed or caused this Transition Services Agreement to be executed as of the date first written above.

---

| | |
|:---|:---|
| **PARENT:** | **PARENT:** |
| Tectonic Financial, Inc. | Tectonic Financial, Inc. |
| By: | /s/ A. Haag Sherman |
| Name: | A. Haag Sherman |
| Title: | Chief Executive Officer |
| **SPINCO**: | **SPINCO**: |
| Tectonic Advisors, LLC | Tectonic Advisors, LLC |
| By: | /s/ Michelle Baird |
| Name: | Michelle Baird |
| Title: | Manager and Chief Financial Officer |
| SOLELY WITH RESPECT TO SECTION 2.1.5: | SOLELY WITH RESPECT TO SECTION 2.1.5: |
| /s/ A. Haag Sherman | /s/ A. Haag Sherman |
| A. Haag Sherman, individually | A. Haag Sherman, individually |

---

[*Signature Page to Transition Services Agreement*]

## Exhibit 10.3

**Exhibit 10.3**

**SECOND AMENDMENT TO THE SUPPORT SERVICES AGREEMENT**

This Second Amendment to the Support Services Agreement (this "<u>Amendment</u>") is entered into as of December 19, 2025 (the "<u>Effective Date</u>"), by and between Cain, Watters & Associates, LLC, a Texas limited liability company ("<u>CWA</u>"), and Tectonic Advisors, LLC, a Texas limited liability company ("<u>Advisors</u>" and, together with CWA, the "<u>Parties</u>").

Tectonic Financial, Inc., a Texas corporation ("TFI"), is made a third-party beneficiary solely with respect to Section 5 of this Amendment. A. Haag Sherman ("<u>Sherman</u>") executes this Amendment solely to acknowledge and consent to Section 2 of this Amendment, and not for any other purpose.

Unless otherwise defined in the Support Agreement or any agreement relating thereto, capitalized terms used herein shall have the meanings assigned to such terms in the Separation Agreement (defined below).

 ****

***[Recitals]***

**WHEREAS**, the Parties entered into that certain Support Services Agreement, dated February 5, 2015, as amended from time to time (the "<u>Support Agreement</u>");

**WHEREAS**, the Parties and TFI have entered into that certain Separation Agreement and Plan of Distribution, dated as of even date herewith (the "<u>Separation Agreement</u>"), pursuant to which the membership interests of Advisors will be distributed (the "<u>Distribution</u>") to certain equity owners of Cain Watters, who have also joined in the Separation Agreement;

**WHEREAS**, the Parties desire to amend the Support Agreement in connection with the Distribution; and

**WHEREAS**, TFI desires certain protections for a period following the Distribution.

**NOW, THEREFORE**, in consideration of the mutual covenants and agreements contained herein, the Parties hereby amend the Support Agreement as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Defined Terms; Section References</u>**. Capitalized terms used but not defined herein or in the Support Agreement shall have the meanings assigned to such terms in the Separation Agreement. Unless otherwise indicated, section references refer to sections of the Support Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Elimination of Sherman as Party and Third-Party Beneficiary</u>**. Effective as of the consummation of the Distribution, all references to A. Haag Sherman ("<u>Sherman</u>") in the Support Agreement are hereby deleted in their entirety, including without limitation in Section 6, Section 7(c), Section 8, Section 10 and Section 16, and Sherman shall no longer be a party to, or a third-party beneficiary of, the Support Agreement for any purpose whatsoever.

Sherman's execution of this Amendment constitutes his acknowledgment and consent to the removal of all such rights effective as of the consummation of the Distribution. Sherman does not become a party to the Support Agreement by executing this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Transactions Under the Separation Agreement Not a Change of Control</u>.** Notwithstanding anything in the Support Agreement to the contrary, the Distribution and all transactions expressly contemplated by the Separation Agreement shall not constitute a "Change of Control" of Advisors under the Support Agreement. Such transactions shall not trigger any termination, renegotiation, or similar rights under Section 2 of the Support Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Condition Precedent</u>.** This Amendment shall become effective only upon the consummation of the Distribution. If the Distribution does not occur, this Amendment shall be null, void and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Restrictions on Amendments</u>.** The Parties shall not amend, modify, waive, terminate or otherwise alter any provision of the Support Agreement (including its appendices) without the prior written consent of TFI, which consent may be withheld for any reason or for no reason, for a period that shall commence on the date of Distribution and continue for a period that shall end on the later to occur of: (a) fifth anniversary of the date of Distribution or (b) the repayment of the Spinco Promissory Note. TFI is hereby expressly designated as a third-party beneficiary solely with respect to the covenants set forth in this Section 5, and shall have the full right to enforce this Section 5 directly. TFI is not a third-party beneficiary of any other provision of the Support Agreement or this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Effect of Amendment</u>**. Except as expressly amended hereby, the Support Agreement remains in full force and effect. From and after the Effective Date, all references to the "Support Services Agreement" or "Agreement" shall refer to the Support Agreement as amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Governing Law</u>**. This Amendment shall be governed by and construed in accordance with the laws of the State of Texas, without regard to conflicts-of-law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Counterparts</u>**. This Amendment may be executed in counterparts, each of which shall be deemed an original. Signatures delivered electronically or in PDF format shall be deemed effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Severability</u>**. If any term, provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Amendment shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

*[Signature Page Follows]*

 

**IN WITNESS WHEREOF**, the Parties have executed this Second Amendment to the Support Services Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **CAIN WATTERS & ASSOCIATES, LLC** | **CAIN WATTERS & ASSOCIATES, LLC** |
| By: | /s/ Daniel C. Wicker |
| Name: | Daniel C. Wicker |
| Title: | President |
| **TECTONIC ADVISORS, LLC** | **TECTONIC ADVISORS, LLC** |
| By: | /s/ Michelle Baird |
| Name: | Michelle Baird |
| Title: | Manager and Chief Financial Officer |

---

**ACKNOWLEDGED AND CONSENTED TO SOLELY WITH RESPECT TO SECTION 2:**

---

| |
|:---|
| **A. HAAG SHERMAN** |
| /s/ A. Haag Sherman |
| A. Haag Sherman |

---

**ACKNOWLEDGED AND ACCEPTED SOLELY WITH RESPECT TO SECTION 5:**

---

| | |
|:---|:---|
| **TECTONIC FINANCIAL, INC.** | **TECTONIC FINANCIAL, INC.** |
| By: | /s/ A. Haag Sherman |
| Name: | A. Haag Sherman |
| Title: | Chief Executive Officer |

---

*[Signature Page to Second Amendment to the Support Services Agreement]*

## Exhibit 10.4

**Exhibit 10.4**

**Third Amendment to the Agreement**

This Third Amendment to the Agreement (this <u>Amendment</u>) is entered into as of December 19, 2025 (the "<u>Effective Date</u>"), by and between T Bank, N.A., a national banking association ("<u>T Bank</u>"), and Cain Watters & Associates, LLC, a Texas limited liability company ("<u>Cain Watters</u>").

 ****

***[Recitals]***

**WHEREAS**, T Bank and Cain Watters entered into that certain Agreement dated August 23, 2012, as amended by that certain letter dated May 14, 2015, and as further amended by that certain Second Amendment to the Agreement dated January 31, 2023 (as so amended, the "Agreement").

**WHEREAS**, Tectonic Financial, Inc. ("<u>TFI</u>"), Tectonic Advisors, LLC ("<u>Tectonic Advisors</u>"), Cain Watters and the TA Continuing Shareholders (as defined in the Separation Agreement) have entered into that certain Separation Agreement and Plan of Distribution (the "<u>Separation Agreement</u>"), pursuant to which TFI will distribute the equity interests of Tectonic Advisors to the TA Continuing Shareholders (the "<u>Distribution</u>").

**WHEREAS**, in connection with the transactions contemplated by the Separation Agreement, T Bank and Cain Watters desire to amend the Agreement with such amendment expressly conditioned upon the occurrence of the Distribution.

**NOW, THEREFORE**, in consideration of the mutual covenants, representations and other valuable consideration contained herein, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Defined Terms; Condition Precedent</u>**. All capitalized terms used but not defined in this Amendment shall have the meanings assigned to them in the Agreement or, if not defined therein, in the Separation Agreement. This Amendment shall become effective only upon the consummation of the Distribution. If the Distribution does not occur, this Amendment shall be void and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Amendment to Section 8.01 (Term)</u>**. Section 8.01 of the Agreement is amended and restated in its entirety as follows:

**Section 8.01. Term**. The term of this Agreement shall continue through the date that is five (5) years after the anniversary date of the Distribution, unless earlier terminated pursuant to Section 8.02. Thereafter, the Agreement shall automatically renew for successive one-year terms unless, at least one hundred eighty (180) calendar days prior to the expiration of the then-current term, either party provides written notice of non-renewal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Elimination of Section 8.02(d)</u>**. Section 8.02(d) of the Agreement, which provides for termination of the Agreement upon the termination of the Investment Advisory Agreement between T Bank and Tectonic Advisors, LLC, is hereby deleted in its entirety. From and after the effectiveness of this Amendment, termination of the Investment Advisory Agreement shall not constitute a termination event under Section 8.02 of the Agreement, and the remaining subsections of Section 8.02 shall be renumbered accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Expansion of Non-Interference Protections</u>**. A paragraph is added to the end of Section 5.04 of the Agreement as follows:

"For purposes of this Section 5.04, with respect to the business relations between T Bank and the Clients, the term "Clients" shall mean: (a) trust clients of T Bank, (b) clients of the Nolan Company division of T Bank, and (c) clients of T Bank's recordkeeping division (collectively, the "<u>Protected Divisions</u>"). T Bank may, in its sole discretion, reorganize any number or all of the Protected Divisions into one or more wholly owned subsidiaries of TFI (whether as a division or organized as a limited liability company), and in such event, the restrictions in this Section 5.04 shall automatically extend to, and be enforceable by, such subsidiary or subsidiaries as express third-party beneficiaries."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Access to Performance Reporting</u>.** A new Section 5.06 is added to the Agreement as follows:

**Section 5.06. Continued Access**. For so long as this Agreement remains in effect, including any renewal terms, Cain Watters or Tectonic Advisors shall provide T Bank continued access to the following systems, tools, and support resources, solely for the purpose of enabling T Bank to provide trust, recordkeeping, client service, and related administrative services to Cain Watters and its clients. All access shall be maintained at the same settings, levels, permissions, functionalities, and user capabilities historically provided to T Bank and Tectonic Financial, Inc., unless otherwise agreed in writing. The access provided under this Section 5.06 shall be subject to the parameters set forth on Exhibit A to this Amendment, and shall automatically terminate upon the expiration or earlier termination of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The portfolio management and performance reporting system (currently Orion), including related reporting tools, interfaces, integrations, and associated environments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The CWA Connect platform, for access to Cain Watters planning team rosters, the CWA Shared Calendar, administrative resources, and general information regarding staffing changes at Cain Watters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The platform currently known as the Tectonic Planner Portal, including future platforms designed to replace the Tectonic Planner Portal providing similar functions, including historical user access for onboarding, document exchange, client communication, and operational workflows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Cain Watters CRM, currently on their Zoho platform, to access accurate client information for onboarding of mutual clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The tax preparation software utilized by Cain Watters (currently CCH), whether through direct credentials or through services performed or facilitated by Cain Watters personnel, consistent with historical practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Trust administration support and client service continuity resources historically provided by Cain Watters to T Bank in connection with onboarding, recordkeeping, reporting, and related support functions.

In addition to the addition of Section 5.06, Exhibit A, attached hereto, is added to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Continuing Effect of the Agreement</u>**. Except as expressly modified by this Amendment, all other provisions of the Agreement remain in full force and effect and shall apply to this Amendment. From and after the effectiveness of this Amendment, any reference to the Agreement shall mean the Agreement as amended hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Governing Law</u>**. This Amendment shall be governed by and construed in accordance with the laws of the State of Texas without regard to conflict-of-law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Counterparts</u>**. This Amendment may be executed in counterparts, each of which shall constitute an original, and all of which together shall constitute one agreement. Electronic signatures shall be deemed effective for all purposes.

 

*[Signature Page Follows]*

 

IN WITNESS WHEREOF, the Parties have executed this Third Amendment to the Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **T Bank, N.A.** | **T Bank, N.A.** |
| By: | /s/ A. Haag Sherman |
| Name: | A. Haag Sherman |
| Title: | Chief Executive Officer |
| **Cain Watters & Associates, LLC** | **Cain Watters & Associates, LLC** |
| By: | /s/ Daniel C. Wicker |
| Name: | Daniel C. Wicker |
| Title: | President |

---

[*Signature Page to Third Amendment to the Agreement*]

**JOINDER AGREEMENT AND CONSENT**

The undersigned, Tectonic Advisors, LLC ("***Tectonic Advisors***"), hereby acknowledges and agrees that, solely with respect to Section 5.06 (Continued Access) of the Agreement by and between T Bank, N.A., a national banking association, and Cain Watters & Associates, LLC, a Texas limited liability company, dated August 23, 2012, as amended (the "***Agreement***"), Tectonic Advisors shall comply with the obligations applicable to it for such limited purpose.

Except solely as expressly provided above, nothing in this Joinder shall be deemed to (i) make Tectonic Advisors a party to the Agreement, (ii) impose upon Tectonic Advisors any obligations under the Agreement other than those specified herein, (iii) confer upon Tectonic Advisors any rights under the Agreement or (iv) amend any agreement to which Tectonic Advisors is a party.

Executed as of December 19, 2025.

---

| | |
|:---|:---|
| **Tectonic Advisors, LLC** | **Tectonic Advisors, LLC** |
| By: | /s/ Michelle Baird |
| Name: | Michelle Baird |
| Title: | Manager and Chief Financial Officer |

---

 

*[Signature Page to Joinder Agreement and Consent]*

## Exhibit 10.5

**Exhibit 10.5**

**FOURTH AMENDMENT TO THE AMENDED & RESTATED INVESTMENT ADVISORY AGREEMENT**

This Fourth Amendment (this "<u>Amendment</u>") to the Amended & Restated Investment Advisory Agreement is entered into as of December 19, 2025 (the "<u>Amendment Effective Date</u>"), by and between T Bank, N.A., a national banking association ("<u>T Bank</u>"), and Tectonic Advisors, LLC, a Texas limited liability company formerly known as III:I Financial Management Research, L.P. ("<u>Tectonic</u>").

 ****

***[Recitals]***

**WHEREAS**, T Bank and Tectonic (as successor to III:I Financial Management Research, L.P.) are parties to that certain Amended & Restated Investment Advisory Agreement, dated as of May 14, 2015, as amended from time to time (the "<u>A&R Investment Advisory Agreement</u>");

**WHEREAS**, Tectonic Financial, Inc. ("<u>TFI</u>"), Tectonic, certain continuing shareholders of Tectonic (the "<u>TA Continuing Shareholders</u>"), and certain other parties have entered into a Separation Agreement and Plan of Distribution (the "<u>Separation Agreement</u>"), pursuant to which, among other things, TFI will distribute all of the membership interests of Tectonic to the TA Continuing Shareholders (the "<u>Distribution</u>");

**WHEREAS**, in connection with the transactions contemplated by the Separation Agreement, the parties desire to clarify that such transactions shall not constitute a "Change of Control," "assignment," or other event giving rise to any termination right under the A&R Investment Advisory Agreement, including under Section 11.02(h) thereof; and

**WHEREAS**, T Bank and Tectonic desire to clarify the A&R Investment Advisory Agreement on the terms and conditions set forth in this Amendment.

**NOW, THEREFORE**, in consideration of the mutual covenants and agreements set forth herein and in the A&R Investment Advisory Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, T Bank and Tectonic agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Defined Terms</u>**. All capitalized terms used but not otherwise defined in this Amendment shall have the meanings assigned to them in the A&R Investment Advisory Agreement. Capitalized terms used but not defined in the A&R Investment Advisory Agreement shall have the meanings assigned to them in the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Change of Control Safe Harbor for Separation Agreement Transactions</u>**. Notwithstanding anything to the contrary in the A&R Investment Advisory Agreement, the Distribution, the transfer of the membership interests of Tectonic to the TA Continuing Shareholders, and any related restructuring steps undertaken in connection therewith (collectively, the "Separation Transactions"), do not and shall not constitute a "Change of Control," an "assignment," or any other event giving rise to any termination right under Section 11.02(h) of the A&R Investment Advisory Agreement or any related provision thereof. The parties agree that the Separation Transactions shall not provide either party with any right to terminate the A&R Investment Advisory Agreement, and the A&R Investment Advisory Agreement shall remain in full force and effect following consummation of the Separation Transactions, subject to its existing terms and conditions (as amended hereby).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Effect of Amendment</u>**. Except as otherwise expressly set forth herein, all other terms and conditions of the A&R Investment Advisory Agreement remain in full force and effect without modification. From and after the execution of this Amendment by the parties hereto, any reference to the A&R Investment Advisory Agreement shall be deemed a reference to the A&R Investment Advisory Agreement as amended hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>No Assignment; Continuity of Party</u>.** The parties acknowledge and agree that Tectonic's prior conversion from III:I Financial Management Research, L.P. to Tectonic Advisors, LLC, and the Separation Transactions, do not constitute an assignment of the A&R Investment Advisory Agreement and do not alter the identity of Tectonic as a party to the A&R Investment Advisory Agreement. Tectonic shall remain responsible for all obligations under the A&R Investment Advisory Agreement, as amended hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Governing Law</u>.** This Amendment shall be governed by and construed in accordance with the laws of the State of Texas, without giving effect to its conflicts of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Counterparts; Electronic Signatures</u>**. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures delivered by facsimile, email (including .pdf), or other electronic means shall be deemed to be original signatures for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Severability</u>**. If any term, provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Amendment shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

[*Signature Page Follows*]

IN WITNESS WHEREOF, the parties have executed this Amendment as of the Amendment Effective Date.

---

| | |
|:---|:---|
| **T BANK, N.A.** | **T BANK, N.A.** |
| By: | /s/ A. Haag Sherman |
| Name: | A. Haag Sherman |
| Title: | Chief Executive Officer |
| **TECTONIC ADVISORS, LLC** | **TECTONIC ADVISORS, LLC** |
| By: | /s/ Michelle Baird |
| Name: | Michelle Baird |
| Title: | Manager and Chief Financial Officer |

---

*[Signature Page to the Fourth Amendment to the Amended & Restated Investment Advisory Agreement]*