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FUNKO, INC.
 Non-Employee Director Compensation Policy
(as amended effective as of August 22, 2022)
Non-employee members of the board of directors (the “Board”) of Funko, Inc. (the “Company”) shall be eligible to receive cash and equity compensation as set forth in this Non-Employee Director Compensation Policy (as amended from time to time, this “Policy”).  The cash and equity compensation described in this Policy shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, a “Non-Employee Director”) who may be eligible to receive such cash or equity compensation, unless such Non-Employee Director declines the receipt of such cash or equity compensation by written notice to the Company.  This Policy became effective on October 16, 2018 and is hereby amended effective as of August 22, 2022, and shall remain in effect until it is revised or rescinded by further action of the Board. This Policy may be amended, modified or terminated by the Board at any time in its sole discretion.  The terms and conditions of this Policy shall supersede any prior cash and/or equity compensation arrangements for service as a member of the Board between the Company and any of its Non-Employee Directors and between any subsidiary of the Company and any of its non-employee directors.  No Non-Employee Director shall have any rights hereunder, except with respect to equity awards granted pursuant to this Policy.  
1.    Cash Compensation. Effective as of July 1, 2022:
(a)    Annual Retainers.  Each Non-Employee Director shall receive an annual retainer of $90,000 for service on the Board.  
(b)    Additional Annual Retainers.  In addition, a Non-Employee Director shall receive the following annual retainers:
(i)    Chairperson of the Board.  A Non-Employee Director serving as Chairperson of the Board shall receive an additional annual retainer of $90,000 for such service.
(ii)    Audit Committee.   A Non-Employee Director serving as Chairperson of the Audit Committee shall receive an additional annual retainer of $25,000 for such service.  A Non-Employee Director serving as a member of the Audit Committee (other than the Chairperson) shall receive an additional annual retainer of $5,000 for such service.
(iii)    Compensation Committee.  A Non-Employee Director serving as Chairperson of the Compensation Committee shall receive an additional annual retainer of $20,000 for such service.  A Non-Employee Director serving as a member of the Compensation Committee (other than the Chairperson) shall receive an additional annual retainer of $5,000 for such service.
(vi)     Nominating and Corporate Governance Committee.   A Non-Employee Director serving as Chairperson of the Nominating and Corporate Governance Committee shall receive an additional annual retainer of $15,000 for such service.  A Non-Employee Director serving as a member of the Nominating and Corporate Governance Committee (other than the Chairperson) shall receive an additional annual retainer of $5,000 for such service.

        (c)    Payment of Retainers.  The annual retainers described in Sections 1(a) and 1(b) shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than the fifteenth day following the end of each calendar quarter.  In the event a Non-Employee Director does not serve as a Non-Employee Director, or in the applicable positions described in Section 1(b), for an entire calendar quarter, such Non-Employee Director shall receive a prorated portion of the retainer(s) otherwise payable to such Non-Employee Director for such calendar quarter pursuant to Section 1(b), with such prorated portion determined by multiplying such otherwise payable retainer(s) by a fraction, the numerator of which is the number of days during which the Non-Employee Director serves as a Non-Employee Director or in the applicable positions described in Section 1(b) during the applicable calendar quarter and the denominator of which is the number of days in the applicable calendar quarter.
2.    Equity Compensation.  Effective as of the 2023 annual meeting of the Company’s stockholders (the “2023 Annual Meeting”), Non-Employee Directors shall be granted the equity awards described below.  The awards described below shall be granted under and shall be subject to the terms and provisions of the Company’s 2017 Incentive Award Plan, 2019 Incentive Award Plan or any other applicable Company equity incentive plan then-maintained by the Company (such plan, as may be amended from time to time, the “Equity Plan”) and shall be granted subject to the execution and delivery of award agreements, including attached exhibits, in substantially the forms previously approved by the Board.  All applicable terms of the Equity Plan apply to this Policy as if fully set forth herein, and all equity grants hereunder are subject in all respects to the terms of the Equity Plan.  
(a)    Annual Awards.  Each Non-Employee Director who (i) serves on the Board as of the date of any annual meeting of the Company’s stockholders (an “Annual Meeting”) commencing as of the 2023 Annual Meeting and (ii) will continue to serve as a Non-Employee Director immediately following such Annual Meeting shall be automatically granted, on the date of such Annual Meeting, (X) an option to purchase the number of shares of the Company’s common stock (at a per-share exercise price equal to the closing price per share of the Company’s common stock on the date of such Annual Meeting (or on the last preceding trading day if the date of the Annual Meeting is not a trading day)), having an aggregate fair value on the date of grant of $75,000 (as determined in accordance with FASB Accounting Codification Topic 718 (“ASC 718”), and subject to adjustment as provided in the Equity Plan and (Y) a restricted stock unit award having an aggregate fair value on the date of grant of $75,000 (as determined in accordance with ASC 718) (with the number of shares of common stock underlying such award subject to adjustment as provided in the Equity Plan).  The awards described in this Section 2(a) shall be referred to as the “Annual Awards.”  For the avoidance of doubt, a Non-Employee Director elected for the first time to the Board at an Annual Meeting shall only receive an Annual Award in connection with such election, and shall not receive any Initial Award (as defined below) on the date of such Annual Meeting as well.

(b)    Initial Awards.  Except as otherwise determined by the Board, each Non-Employee Director who is initially elected or appointed to the Board after the 2023 Annual Meeting on any date other than the date of an Annual Meeting shall be automatically granted, on the effective date of such Non-Employee Director’s initial election or appointment (such Non-Employee Director’s “Start Date”), (X) an option to purchase the number of shares of the Company’s common stock (at a per-share exercise price equal to the closing price on the Company’s common stock on such Non-Employee Director’s Start Date (or on the last preceding trading day if such Non-Employee Director’s Start Date is not a trading day)), having an aggregate fair value on the date of grant of $75,000 (as determined in accordance with ASC 718) and such Non-Employee Director’s Start Date equal to the product of (i) $75,000 (as determined in accordance with ASC 718) and (ii) a fraction, the numerator of which is (x) 365 minus (y) the number of days in the period beginning on the date of the Annual Meeting immediately preceding such Non-Employee Director’s Start Date and ending on such Non-Employee Director’s Start Date and the denominator of which is 365, and subject to adjustment as provided in the Equity Plan and (Y) a restricted stock unit award having an aggregate fair value on such Non-Employee Director’s Start Date equal to the product of (i) $75,000 (as determined in accordance with ASC 718) and (ii) a fraction, the numerator of which is (x) 365 minus (y) the number of days in the period beginning on the date of the Annual Meeting immediately preceding such Non-Employee Director’s Start Date and ending on such Non-Employee Director’s Start Date and the denominator of which is 365 (with the number of shares of common stock underlying such award subject to adjustment as provided in the Equity Plan). The awards described in this Section 2(b) shall be referred to as “Initial Awards.”  For the avoidance of doubt, no Non-Employee Director shall be granted more than one Initial Award.
(c)    Termination of Employment of Employee Directors.  Members of the Board who are employees of the Company or any parent or subsidiary of the Company who subsequently terminate their employment with the Company and any parent or subsidiary of the Company and remain on the Board will not receive an Initial Award pursuant to Section 2(b) above, but to the extent that they are otherwise eligible, will be eligible to receive, after termination from service with the Company and any parent or subsidiary of the Company, Annual Awards as described in Section 2(a) above.
(d)    Vesting of Awards Granted to Non-Employee Directors.  Each Annual Award and Initial Award shall vest and become exercisable on the first anniversary of the date of grant, in each case subject to the Non-Employee Director continuing in service through the applicable vesting dates.  No portion of an Annual Award or Initial Award that is unvested or unexercisable at the time of a Non-Employee Director’s termination of service on the Board shall become vested and exercisable thereafter.   All of a Non-Employee Director’s Annual Awards and Initial Awards shall vest in full immediately prior to the occurrence of a Change in Control (as defined in the Equity Plan), to the extent outstanding at such time.

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THIRD AMENDMENT TO LICENSE AGREEMENT

THIS THIRD AMENDMENT TO LICENSE AGREEMENT is made as of this 1st day of July, 2022 by and between COOLSPRING STONE SUPPLY COMPANY, INC., a Pennsylvania corporation with its principal office in North Union Township, Pennsylvania 15401 (“Coolspring”) and DMC GLOBAL INC. DBA NOBELCLAD , a Delaware corporation with a business address at 1138 Industrial Park Drive, Mt. Braddock, PA 15465 (“DMC”).

WITNESS:

WHEREAS, Coolspring and DMC are parties to a July 29, 2008 License Agreement as amended by a First Amendment to License Agreement dated as of September 24, 2012 and a Second Amendment to License Agreement dated as of April 1, 2018 relating to access and use of a portion of Coolspring Mine No. 1 located within the boundaries of real estate leased to Coolspring pursuant to a Lease referenced and defined in the License Agreement; and

WHEREAS, pursuant to Paragraph No. 2 of the Second Amendment to License Agreement DMC has an option to extend the length thereof on terms, including the amount of the License Fee, mutually agreeable to Coolspring and DMC; and

WHEREAS, based on a series of discussions Coolspring and DMC have agreed upon terms and conditions for extension of the License Agreement as are set forth herein.

NOW, THEREFORE, in consideration of their mutual promises and the consideration set forth herein, and intending to be legally bound thereby Coolspring and DMC agree as follows:

1.Reaffirmation. Except as specifically modified and amended pursuant to this Third Amendment, the License Agreement as amended by the First and Second Amendments is hereby ratified and reaffirmed in all respects.

2.Term/Option for Extension. The term of the License Agreement is hereby extended for a five year period commencing April 1, 2023 and terminating March 31, 2028, subject to all termination rights set forth in the License Agreement as previously amended. Provided DMC is not in default of any obligation it shall have the option at the expiration of the term ending March 31, 2028 to extend the term of this License Agreement for an additional term through and including March 31, 2033 on terms, including the amount of the License Fee, that are mutually agreeable to Coolspring and DMC. DMC shall provide Coolspring with written notice of its intention to exercise the option set forth herein not later than December 31, 2027. If DMC timely provides written notice of its intention to exercise the option to extend Coolspring, then DMC and Coolspring shall engage in good faith negotiations regarding the terms applicable to the extended term, including the amount of the License Fee. If mutually acceptable terms are agreed to, the terms shall be set forth in a further amendment to this License Agreement as previously amended. If, despite good faith negotiations, Coolspring and DMC cannot agree on mutually acceptable terms then the option to extend beyond March 31, 2028 shall expire and be null and void, and this License Agreement shall terminate on March 31, 2028.

3.License Fee. In consideration of the grant and use of the license provided hereunder, DMC agrees to pay to Coolspring the sum of Two Hundred Thousand Dollars($200,000) per year for each of the five years commencing April 1, 2023 that this License Agreement is in effect, payable in advance on or before the first day of each month in equal monthly installments of Sixteen Thousand Six Hundred Sixty-Six Dollars and Sixty-Seven Cents ($16,666.67) each, which monthly installment shall be paid to Coolspring at the address set forth in Section 23 of the License Agreement. Given that this Third Amendment is dated as of July 1, 2022, DMC shall have until April 1, 2023 to deliver its first $16,666.67 installment due under this Third Amendment; thereafter monthly payments will be due on or before the first of each month.

4.DMC’s Use of Coolspring Mine No. 1. The license granted to DMC, as defined in the License Agreement as amended by the First Amendment and the Second Amendment, is reaffirmed and restated except for the following modification:

a.The provisions of Paragraph No. 4(b) of the Second Amendment are amended by deleting the limitation to 96 days in any 12-month period.

5.Early Termination. Notwithstanding the other terms and conditions of this Third Amendment, DMC shall have the option to notify Coolspring in writing on or before December 31, 2026 of its election to terminate the License Agreement effective March 31, 2027 instead of March 31, 2028. As consideration for Coolspring’s agreement to early termination, DMC shall pay to Coolspring One Hundred Thousand Dollars ($100,000) to partially compensate Coolspring for the rental it will not collect for the fiscal year beginning April 1, 2027 and ending March 31, 2028. Should DMC exercise this option, all options for extension of the License Agreement will similarly terminate and be of no further force or effect.

6.Warranty by Coolspring. Coolspring warrants and represents that it is authorized under its lease for Coolspring Mine No. 1 to enter into and perform this Third Amendment and that it will defend any claim by any lessor to the contrary. Notwithstanding the foregoing, however, should it be determined that the lease to Coolspring of Coolspring Mine No. 1 will not permit the activities set forth in this Third Amendment, Coolspring’s liability to DMC shall be for compensatory damages only which, in no event, shall exceed the amount theretofore paid by DMC to Coolspring under this Third Amendment.

7.Caption/Counterparts. The captions and headings herein are for convenience and reference only and in no way define or limit the scope or content of this Third Amendment or in any way affect its provisions. This Third Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which shall together constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to License Agreement as of the date first written above.

       COOLSPRING STONE SUPPLY COMPANY, INC.

         /s/ William R. Snoddy                                   
William R. Snoddy, President

DMC GLOBAL INC. DBA NOBELCLAD

         /s/ Chad H. Toth                                            
Authorized Officer
Chad H. Toth, Director of Global Operations

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