Document:

EX-10.23

 Exhibit 10.23 

SECOND AMENDMENT TO CREDIT AGREEMENT 

This SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), is dated as of July 16, 2018, by and among
(i) IPSCO TUBULARS INC., a Delaware corporation (“IPSCO”), (ii) TMK IPSCO INTERNATIONAL, L.L.C., a Delaware limited liability company (“TMK IPSCO”), (iii) IPSCO KOPPEL TUBULARS, L.L.C., a
Delaware limited liability company (“IPSCO Koppel”), (iv) IPSCO TUBULARS (KY), L.L.C., a Delaware limited liability company (“IPSCO Kentucky”), (v) ULTRA PREMIUM SERVICES, L.L.C., a Delaware limited
liability company (“ULTRA”; and together with IPSCO, TMK IPSCO, IPSCO Koppel, and IPSCO Kentucky, each, individually, a “Borrower”, and collectively, the “Borrowers”), (vi) TMK NSG, L.L.C., a
Delaware limited liability company (“TMK NSG”; and together with the Borrowers, each, a “Loan Party,” and collectively, the “Loan Parties”), the lenders identified on the signature pages hereof
(each of such lenders, together with its successors and permitted assigns, is referred to hereinafter as a “Lender”), and JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent for the Lenders (in such capacity,
the “Administrative Agent”). 
 WITNESSETH: 

WHEREAS, IPSCO, TMK IPSCO, IPSCO Koppel, TMK NSG, IPSCO Tubulars (KY) Inc., a Kentucky corporation (“Old IPSCO
Kentucky”), Ultra Premium Oilfield Services, Ltd., a Kentucky limited partnership (“Old Ultra”), UPOS GP, L.L.C., a Kentucky limited liability company (“UPOS GP”), UPOS, L.L.C., a Kentucky limited liability
company (“UPOS”), Administrative Agent, and the Lenders entered into that certain Credit Agreement, dated as of December 7, 2017, as amended by that certain First Amendment to Credit Agreement, dated as of March 7, 2018
(as amended, the “Credit Agreement”); 
 WHEREAS, pursuant to (i) that certain Agreement and Plan of Merger,
dated as of March 7, 2018, by and between IPSCO Kentucky and Old IPSCO Kentucky, (ii) those certain Articles of Merger Merging IPSCO (KY) Inc. with and into IPSCO Tubulars (KY), L.L.C., dated as of March 7, 2018, and filed with the
Kentucky Secretary of State on March 7, 2018, and (iii) that certain Certificate of Merger Merging IPSCO Tubulars (KY) Inc. with and into IPSCO Tubulars (KY), L.L.C., dated as of March 7, 2018, and filed with the Delaware Secretary of
State on March 7, 2018, Old IPSCO Kentucky merged with and into IPSCO Kentucky, with IPSCO Kentucky being the surviving entity (the “IPSCO (KY) Merger”); 

WHEREAS, pursuant to (i) that certain Agreement and Plan of Merger, dated as of March 7, 2018, by and between ULTRA and Old
Ultra, (ii) those certain Articles of Merger Merging IPSCO (KY) Inc. with and into ULTRA Premium Services, L.L.C., dated as of March 7, 2018, and filed with the Kentucky Secretary of State on March 7, 2018, and (iii) that certain
Certificate of Merger Merging Ultra Premium Oilfield Services, Ltd. with and into ULTRA Premium Services, L.L.C., dated as of March 7, 2018 and filed with Delaware Secretary of State on March 7, 2018, Old Ultra merged with and into ULTRA,
with ULTRA being the surviving entity (the “ULTRA Merger”); 

  
 SECOND
AMENDMENT TO CREDIT AGREEMENT – PAGE 1 

 WHEREAS, pursuant to each of those certain Articles of Dissolution, each dated as of
March 9, 2018, and filed with the Kentucky Secretary of State on March 12, 2018, each of UPOS GP and UPOS was dissolved (the “Dissolutions”); 

WHEREAS, as of the Second Amendment Effective Date, each of the (i) IPSCO Kentucky Reorganization Conditions, (ii) Ultra
Reorganization Conditions, and (iii) Dissolution Conditions has been satisfied, and each of the IPSCO (KY) Merger, the ULTRA Merger, and the Dissolutions has been consummated; 

WHEREAS, in connection with the IPSCO (KY) Merger, the ULTRA Merger, and the Dissolutions, the Loan Parties have requested that the
Lenders and the Administrative Agent amend certain provisions of the Credit Agreement, in each case, subject to the terms and conditions set forth herein; and 

WHEREAS, each of the Lenders and Administrative Agent is willing to amend certain provisions of the Credit Agreement, subject to the
terms and conditions set forth herein; 
 NOW THEREFORE, in consideration of the premises and the mutual covenants contained herein,
and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 

SECTION 1. Defined Terms. Unless otherwise defined herein, all capitalized terms used herein have the meanings assigned to such
terms in the Credit Agreement, as amended hereby. 
 SECTION 2. Amendments. As of the Second Amendment Effective Date, the
Schedules to the Credit Agreement are hereby deleted in their entirety and replaced with the Revised Schedules in the form attached hereto. 

SECTION 3. Representations, Warranties and Covenants of Each Loan Party. Each of the Loan Parties represents and warrants to the
Lenders and Administrative Agent and agrees that: 
 (a) the representations and warranties contained in the Credit Agreement and the other
outstanding Loan Documents are true and correct in all material respects at and as of the date hereof as though made on and as of the date hereof, except (i) to the extent specifically made with regard to a particular date and (ii) for
such changes as are a result of any act or omission specifically permitted under the Credit Agreement (or under any Loan Document), or as otherwise specifically permitted by the Administrative Agent and the Lenders; 

(b) on the Second Amendment Effective Date, after giving effect to this Amendment, no Default or Event of Default will have occurred and be
continuing; 
 (c) the execution, delivery and performance of this Amendment have been duly authorized by all necessary action on the part
of, and duly executed and delivered by each of the Loan Parties, and this Amendment is a legal, valid and binding obligation of each of the Loan 

  
 SECOND
AMENDMENT TO CREDIT AGREEMENT – PAGE 2 

 
Parties, enforceable against such Persons in accordance with its terms, except as the enforcement thereof may be subject to the effect of any applicable bankruptcy, insolvency, reorganization,
moratorium, or similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether such enforcement is sought in a proceeding in equity or at law); and 

(d) the execution, delivery and performance of this Amendment do not conflict with or result in a breach by any of the Loan Parties of any term
of any material contract, Credit Agreement, indenture or other agreement or instrument to which such Person is a party or is subject. 

SECTION 4. Conditions Precedent to Effectiveness of Amendment. This Amendment shall become effective (the “Second
Amendment Effective Date”) upon satisfaction of each of the following conditions: 
 (a) Each of the Loan Parties, the Lenders, and
Administrative Agent shall have executed and delivered to the Administrative Agent this Amendment and such other documents as the Administrative Agent may reasonably request; and 

(b) All legal matters incident to the transactions contemplated hereby shall be reasonably satisfactory to counsel for the Administrative
Agent. 
 SECTION 5. Execution in Counterparts. This Amendment may be executed in counterparts, each of which when so executed
and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. 

SECTION 6. Costs and Expenses. Each of the Loan Parties hereby affirms its obligation under the Credit Agreement to reimburse
the Administrative Agent for all reasonable, out of pocket expenses paid or incurred by the Administrative Agent and the Lenders in connection with the preparation, negotiation, execution and delivery of this Amendment, including but not limited to
the attorneys’ fees and expenses of attorneys for the Administrative Agent with respect thereto. 
 SECTION 7. GOVERNING LAW.
THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUCTED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE INTERNAL CONFLICTS OF LAWS PROVISIONS THEREOF. 

SECTION 8. Effect of Amendment; Reaffirmation of Loan Documents. (a) The parties hereto agree and acknowledge that
(i) nothing contained in this Amendment in any manner or respect limits or terminates any of the provisions of the Credit Agreement or the other outstanding Loan Documents other than as expressly set forth herein and (ii) the Credit
Agreement (as amended hereby) and each of the other outstanding Loan Documents remain and continue in full force and effect and are hereby ratified and reaffirmed in all respects. Upon the effectiveness of this Amendment, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby. 

  
 SECOND
AMENDMENT TO CREDIT AGREEMENT – PAGE 3 

 (b) Execution of this Amendment by the Lenders and Administrative Agent (i) shall not
constitute a waiver of any Default or Event of Default that may currently exist or hereafter arise under the Credit Agreement, (ii) shall not impair, restrict or limit any right or remedy of the Lenders or Administrative Agent with respect to
any Default or Event of Default that may now exist or hereafter arise under the Credit Agreement or any of the other Loan Documents, and (iii) shall not constitute any course of dealing or other basis for altering any obligation of any of the
Loan Parties or any right, privilege or remedy of the Lenders and Administrative Agent under the Credit Agreement or any of the other Loan Documents. 

SECTION 9. Headings. Section headings in this Amendment are included herein for convenience of any reference only and shall not
constitute a part of this Amendment for any other purposes. 
 SECTION 10. Release. EACH OF THE LOAN PARTIES HEREBY
ACKNOWLEDGES THAT AS OF THE DATE HEREOF IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY
PART OF SUCH LOAN PARTY’S LIABILITY TO REPAY THE OBLIGATIONS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDERS, ADMINISTRATIVE AGENT, OR THEIR RESPECTIVE AFFILIATES, PARTICIPANTS OR ANY OF THEIR RESPECTIVE DIRECTORS,
OFFICERS, ADMINISTRATIVE AGENTS, EMPLOYEES OR ATTORNEYS. EACH OF THE LOAN PARTIES HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDERS, ADMINISTRATIVE AGENT, THEIR RESPECTIVE AFFILIATES AND PARTICIPANTS, AND THEIR PREDECESSORS,
ADMINISTRATIVE AGENTS, OFFICERS, DIRECTORS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED,
SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH SUCH LOAN PARTY MAY NOW OR HEREAFTER HAVE AGAINST LENDERS, ADMINISTRATIVE
AGENT, OR THEIR RESPECTIVE PREDECESSORS, ADMINISTRATIVE AGENTS, OFFICERS, DIRECTORS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE,
AND ARISING FROM THE OBLIGATIONS, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT. EACH OF THE LOAN PARTIES HEREBY COVENANTS AND AGREES NEVER TO
INSTITUTE ANY ACTION OR SUIT AT LAW OR IN EQUITY, NOR INSTITUTE, PROSECUTE, OR IN ANY WAY AID IN THE INSTITUTION OR PROSECUTION OF ANY CLAIM, ACTION OR CAUSE OF ACTION, RIGHTS TO RECOVER DEBTS OR DEMANDS OF ANY NATURE AGAINST LENDERS, ADMINISTRATIVE
AGENT, THEIR RESPECTIVE 

  
 SECOND
AMENDMENT TO CREDIT AGREEMENT – PAGE 4 

 
AFFILIATES AND PARTICIPANTS, OR THEIR RESPECTIVE SUCCESSORS, ADMINISTRATIVE AGENTS, ATTORNEYS, OFFICERS, DIRECTORS, EMPLOYEES, AND PERSONAL AND LEGAL REPRESENTATIVES ARISING ON OR BEFORE THE DATE
HEREOF OUT OF OR RELATED TO LENDERS’ OR ADMINISTRATIVE AGENT’S ACTIONS, OMISSIONS, STATEMENTS, REQUESTS OR DEMANDS IN ADMINISTERING, ENFORCING, MONITORING, COLLECTING OR ATTEMPTING TO COLLECT THE OBLIGATIONS OF THE LOAN PARTIES TO LENDERS
AND ADMINISTRATIVE AGENT, WHICH OBLIGATIONS ARE EVIDENCED BY THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS. 
 [Remainder of
page intentionally left blank with signature pages immediately to follow] 

  
 SECOND
AMENDMENT TO CREDIT AGREEMENT – PAGE 5 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as
of the date first above written. 
  

			
	BORROWERS:
	
	IPSCO TUBULARS INC., a Delaware corporation
		
	By	 	 /s/ Evgeny Makarov

		 	Name: Evgeny Makarov
		 	Title: Vice President & Chief Financial Officer
	
	TMK IPSCO INTERNATIONAL, L.L.C., a Delaware limited liability company
		
	By	 	 /s/ Evgeny Makarov

		 	Name: Evgeny Makarov
		 	Title: Vice President, Treasurer & Chief Financial Officer
	
	IPSCO KOPPEL TUBULARS, L.L.C., a Delaware limited liability company
		
	By	 	 /s/ Evgeny Makarov

		 	Name: Evgeny Makarov
		 	Title: Vice President, Treasurer & Chief Financial Officer
	
	IPSCO TUBULARS (KY), L.L.C., a Delaware limited liability company
		
	By:	 	TMK NSG, L.L.C., a Delaware limited
		 	liability company, its sole member
		
	By	 	 /s/ Evgeny Makarov

		 	Name: Evgeny Makarov
		 	Title: Vice President, Treasurer & Chief Financial Officer

 [continued on next page] 

SIGNATURE PAGE TO SECOND AMENDMENT TO
CREDIT AGREEMENT 

 
			
	ULTRA PREMIUM SERVICES, L.L.C., a Delaware limited liability company
		
	By:	 	TMK NSG, L.L.C., a Delaware limited
		 	liability company, its sole member
		
	By	 	 /s/ Evgeny Makarov

		 	Name: Evgeny Makarov
		 	Title: Vice President, Treasurer & Chief Financial Officer
	
	OTHER LOAN PARTIES:
	
	TMK NSG, L.L.C., a Delaware limited liability company
		
	By	 	 /s/ Evgeny Makarov

		 	Name: Evgeny Makarov
		 	Title: Vice President, Treasurer & Chief Financial Officer

 SIGNATURE PAGE TO SECOND
AMENDMENT TO CREDIT AGREEMENT 

 
			
	ADMINISTRATIVE AGENT:
	
	JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent, Issuing Bank, Swingline Lender, and as a Lender
		
	By	 	 /s/ Christy L. West

		 	Name: Christy L. West
		 	Title: Authorized Officer

 [continued on next page] 

SIGNATURE PAGE TO SECOND AMENDMENT TO
CREDIT AGREEMENT 

 
			
	LENDERS:
	
	BANK OF AMERICA, N.A., as a Lender
		
	By	 	 /s/ Tanner Pump

		 	Name: Tanner Pump
		 	Title: Senior Vice President

 SIGNATURE PAGE TO SECOND
AMENDMENT TO CREDIT AGREEMENT 

 Revised Schedule 3.05 

Properties 
 A. Owned Real Property1 
  

			
	 2600 Texas Highway 992

Baytown, TX 77520
	 	
		
	 10120 Houston Oaks Drive

Houston, TX 77064
	 	
		
	 1913 and 2011 7th Avenue,

Camanche, IA 52730
	 	
		
	 1201 R Street,

Geneva, NE 68361
	 	
		
	 6403 Sixth Avenue,

Koppel, PA 16136
	 	
		
	 7501 Groening Street,

Odessa, TX 79765
	 	
		
	 8410 Miller Rd. No. 3,

Houston, TX 77049
	 	
		
	 23rd Street and Duss Ave.,

Ambridge, PA 15003
	 	
		
	 100 Steel Plant Road,

Wilder, KY 41071
	 	
		
	 910 Lowell Street (Newport Land),

Newport, KY 41071
 (parcels 3-14, 21
and 45)
	 	

 B. Leased Real Property 
  

			
	 10203 Sam Houston Park Drive, Suite 220,

Houston, TX 77064
	 	
		
	 23911 Duss Ave.,

Ambridge, PA 15003
	 	
		
	 5460 North State Highway 137,

Blytheville, AR 72315
	 	
		
	 5610 Bird Creek Avenue,

Catoosa, OK 74015
	 	
		
	 4000 Parkway Drive,

Brookfield, OH 44403
	 	

  

	1 	The properties described in Section 6.05(j) (a 4.33 acre tract of land next to the company headquarters) and Section 6.05(k) (a 1.28 acre tract of land in Newport, KY) of the Credit Agreement are not listed in
light of the expected sale of such properties as permitted by the Credit Agreement. 

	2 	The subject property is also now known as 2600 E. Grand Parkway S. Baytown, Texas 77523. 

 C. Intellectual Property 

Patents and Patent Applications 
  

											
	 Grantor
	  	 Title
	  	 Jurisdiction
	  	 Official Reference
	  	 Status
	  	 Filing Date

	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Vietnam	  	1-2015-01898	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Vietnam	  	1-2013-03931	  	Pending	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Vietnam	  	1-2015-03082	  	Pending	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Venezuela	  	2013-1491	  	Pending	  	28-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Venezuela	  	00678-2012	  	Pending	  	24-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Uruguay	  	35.15	  	Pending	  	28-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Uruguay	  	34089	  	Pending	  	23-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Uruguay	  	35303	  	Pending	  	4-Feb-14
						
	ULTRA Premium Services, L.L.C.	  	Wedge Threadform Having Crest to Root Thread Compound Relief Areas	  	United States of America	  	62/608,945	  	Provisional	  	21-Dec-2018
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	United States of America	  	9,677,346	  	Granted	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	United States of America	  	 2014/0145433
 9,869,139
	  	Granted	  	 18-Feb-16

16-Jan-18

						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	United States of America	  	 2017/0146160
 9,869,414
	  	Granted	  	 2-Feb-17

16-Jan-18

						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	United States of America	  	9,388,925	  	Granted	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	United States of America	  	2016/0281441	  	Pending	  	10-Jun-16
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection	  	United States of America	  	6,322,110	  	Granted	  	10-Aug-98
						
	ULTRA Premium Services, L.L.C.	  	Threadform Having Crest to Root Thread Compound Relief Areas	  	United States of America	  	62/608,905	  	Provisional	  	21-Dec-2017
						
	ULTRA Premium Services, L.L.C.	  	Sealing System	  	United States of America	  	5,765,836	  	Granted	  	16-Jul-97
						
	ULTRA Premium Services, L.L.C.	  	Sealing System	  	United States of America	  	6,041,487	  	Granted	  	6-May-98
						
	ULTRA Premium Services, L.L.C.	  	Implementation of Pipe Identification and Tracking System	  	United States of America	  	62/573,471	  	Provisional	  	17-Oct-17
						
	ULTRA Premium Services, L.L.C.	  	Curvilinear Sealing System	  	United States of America	  	62/505,262	  	Provisional	  	12-May-17

											
	ULTRA Premium Services, L.L.C.	  	Controllable Variable Magnetic Field Apparatus for Flow Control of Molten Steel in a Casting Mold	  	United States of America	  	6,341,642	  	Granted	  	24-Sep-99
						
	ULTRA Premium Services, L.L.C.	  	Controllable Variable Magnetic Field Apparatus for Flow Control of Molten Steel in a Casting Mold	  	United States of America	  	6,502,627	  	Granted	  	17-Sep-01
						
	ULTRA Premium Services, L.L.C.	  	Differential Quench Method and Apparatus	  	United States of America	  	6,374,901	  	Granted	  	9-Jul-99
						
	ULTRA Premium Services, L.L.C.	  	Apparatus for Cleaning a Coiler Furnace	  	United States of America	  	6,648,633	  	Granted	  	30-Sep-02
						
	ULTRA Premium Services, L.L.C.	  	Coiler Drum with Raised Surfaces	  	United States of America	  	7,237,414	  	Granted	  	3-Jul-07
						
	ULTRA Premium Services, L.L.C.	  	High-Strength MicroAlloy Steel	  	United States of America	  	7,220,325	  	Granted	  	2-Oct-03
						
	ULTRA Premium Services, L.L.C.	  	Process For Making
High-Strength MicroAlloy
Steel	  	United States of America	  	6,682,613	  	Granted	  	3-Apr-02
						
	ULTRA Premium Services, L.L.C.	  	Swaged Pin End of Pipe Connection	  	United States of America	  	6,024,646	  	Granted	  	2-Oct-97
						
	ULTRA Premium Services, L.L.C.	  	Controllable Variable Magnetic Field Apparatus for Flow Control of Molten Steel in a Casting Mold	  	United States of America	  	6,006,822	  	Granted	  	1-Jul-98
						
	ULTRA Premium Services, L.L.C.	  	Differential-Quench Method and Apparatus	  	United States of America	  	6,374,901	  	Granted	  	9-Jul-99
						
	ULTRA Premium Services, L.L.C.	  	Differential-Quench Method and Apparatus	  	United States of America	  	6,557,622	  	Granted	  	19-Feb-02
						
	ULTRA Premium Services, L.L.C.	  	Accessing Pipe Identification and Tracking System	  	United States of America	  	62/573,490	  	Provisional	  	17-Oct-17
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	United Kingdom	  	2524675	  	Granted	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	United Kingdom	  	1602961.3	  	Pending	  	19-Feb-16
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	United Kingdom	  	GB2545578B	  	Granted	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	United Kingdom	  	GB2526963B	  	Granted	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	United Arab Emirates	  		  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	United Arab Emirates	  	P986/15	  	Pending	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Ukraine	  	201505488	  	Granted	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Ukraine	  	a2013-15154	  	Allowed	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Ukraine	  	114741	  	Granted	  	28-Jan-14

											
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Thailand	  	1501002842	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Thailand	  	1501004413	  	Pending	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	South Africa	  	2013/07957	  	Pending	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Singapore	  	11201504148X	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Singapore	  	194916	  	Granted	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Singapore	  	10201604647X	  	Pending	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Singapore	  	11201506085X	  	Granted	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Saudi Arabia	  	515360482	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Saudi Arabia	  	515360848	  	Pending	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Russia	  	2015124379	  	Allowed	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Russia	  	2016107427	  	Pending	  	1-Mar-16
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Russia	  	2628356	  	Granted	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Poland	  	P-412632	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Nigeria	  	4166	  	Granted	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Nigeria	  	1611	  	Granted	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Nigeria	  	NG/PT/C/2015/1349	  	Allowed	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	New Zealand	  	616778	  	Granted	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Mexico	  	MX/a/2015/006702	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Mexico	  	340,698	  	Granted	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Mexico	  	345933	  	Granted	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Malaysia	  	2015001388	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Malaysia	  	PI 2013004087	  	Pending	  	21-May-12

											
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Malaysia	  	2015001944	  	Pending	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Korea	  	10-2015-7017131	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Korea	  	10-2015-7021061	  	Pending	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Japan	  	2015-545142	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Japan	  	 2014-512909
 Patent#JP6076967
	  	Granted	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Japan	  	2016-228078	  	Pending	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Japan	  	 2015-556081
 JP6267236
	  	Granted	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Indonesia	  	P-00201503856	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Indonesia	  	W-00201306039	  	Pending	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Indonesia	  	 P-00201505377

Patent#IDP000048038
	  	Granted 09-Oct-2017	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Hong Kong	  	HK1213307	  	Granted	  	29-Jan-16
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Hong Kong	  	 14107151.4
 Patent#HK1193858
	  	Granted	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Hong Kong	  	16103831.9	  	Pending	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Gulf Cooperation Council	  	2013/25868	  	Pending	  	26-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Gulf Cooperation Council	  	2016/30921	  	Pending	  	29-Feb-16
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Gulf Cooperation Council	  	 2012/21202
 Patent # GC0006300
	  	Granted	  	6-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Gulf Cooperation Council	  	 GC 2014-26359
 Patent No. GC0006717
	  	Granted	  	2-Feb-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	European Patent Convention	  	12724267.5	  	Pending	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Eurasian Patent Organization	  	201301285	  	Granted	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Colombia	  	16379	  	Granted	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Colombia	  	6435	  	Granted	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Colombia	  	32140	  	Granted	  	28-Jan-14

											
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	China	  	ZL201380062028.1	  	Granted	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	China	  	ZL201280024836.4	  	Granted	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	China	  	201480007175.3	  	Pending	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Chile	  	3323-2013	  	Pending	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Canada	  	2,892,670	  	Granted 2015-05-26	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Canada	  	2,834,586	  	Pending	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Canada	  	2,900,152	  	Granted 2015-08-04	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Brazil	  	BR 112015012235-3	  	Pending	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Brazil	  	BR1320160073552	  	Pending	  	1-Apr-16
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Brazil	  	BR112013027618-5	  	Pending	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Brazil	  	BR112015018602-5	  	Granted	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Bolivia	  	SP-0365-2013	  	Pending	  	27-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Bolivia	  	SP-0162-2012	  	Pending	  	17-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Bolivia	  	SP00033-2014	  	Pending	  	4-Feb-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Australia	  	2013352493	  	Granted	  	25-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection with Helically Extending Torque Shoulder	  	Australia	  	2016201258	  	Pending	  	26-Feb-16
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Australia	  	2012259032	  	Granted	  	21-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Australia	  	2014215661	  	Allowed	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Australia	  	2017202254	  	Pending	  	28-Jan-14
						
	ULTRA Premium Services, L.L.C. 	  	Tubular Connection with Helically Extending Torque Shoulder	  	Argentina	  	P130104348	  	Pending	  	26-Nov-13
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection and Associated Thread Form	  	Argentina	  	P120101789	  	Pending	  	18-May-12
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection Center Shoulder Seal	  	Argentina	  	AR094616B1	  	Granted	  	29-Jan-14
						
	ULTRA Premium Services, L.L.C.	  	Tubular Connection	  	Argentina	  	AR016813	  	Granted	  	10-Aug-98

 Trademark Registrations/Applications 

 

									
	 Trademark
	  	 Entity
	  	 Official Number
	  	 Country
	  	 Status

	IPSCO	  	IPSCO Tubulars	  	2478141	  	US	  	Registered
					
	IPSCO	  	IPSCO Tubulars	  	TMA138883	  	Canada	  	Registered
					
	TMK IPSCO (& Design)	  	IPSCO Tubulars	  	4204363	  	US	  	Registered
					
	TMK IPSCO (& Design)	  	IPSCO Tubulars	  	TMA829496	  	Canada	  	Registered
					
	TORQ	  	IPSCO Tubulars	  	87137337	  	US	  	Pending
					
	Integrated Well Solutions	  	IPSCO Tubulars	  	1819356	  	Canada	  	Pending
					
	Laser Quality Plate	  	IPSCO Tubulars	  	TMA546176	  	Canada	  	Registered
					
	Goose (Design)	  	IPSCO Tubulars	  	TMA138895	  	Canada	  	Registered
					
	Flying Goose Profile (Design)	  	IPSCO Tubulars	  	TMA574532	  	Canada	  	Registered

 COPYRIGHT REGISTRATIONS 

 

									
	 Copyright Title
	  	 Registration No.
	  	 Recordation Date
	  	 Jurisdiction
	  	 Entity

					
	Assorted overlays related to the products of the ULT product line.	  	V3535D500	  	28-Feb-06	  	United States	  	Ultra
					
	Excel workbooks containing design models for ULTtra-FJ, ULTra-SFJ, and ULTra-FX products of the ULT product
line.	  	V3535D500	  	28-Feb-06	  	United States	  	Ultra
					
	Excel workbooks containing design models for ULTtra-FJ, ULTra-SFJ, and ULTra-FX products of the ULT product
line & 4 other titles.	  	V3535D500	  	28-Feb-06	  	United States	  	Ultra
					
	Existing drawings of produced products of the ULT product line.	  	V3535D500	  	28-Feb-06	  	United States	  	Ultra
					
	Manufacturing and quality control specifications for the products of the ULT product line.	  	V3535D500	  	28-Feb-06	  	United States	  	Ultra
					
	Marketing literature for the products of the ULT product line.	  	V3535D500	  	28-Feb-06	  	United States	  	Ultra

 Copyright Applications 

None. 

 Schedule 3.06 

Disclosed Matters 
 None. 

 Schedule 3.12 

Material Agreements 
 Distribution
Agreement dated April 27, 2010, between IPSCO and Toolpushers Supply Co., as amended 
 Distribution Agreement dated April 14, 2010, between IPSCO
and Pyramid Tubular Products, L.P., as amended 
 Distribution Agreement dated April 23, 2010, between IPSCO and McJunkin Red Man Corporation, as
amended 
 OCTG Distribution Agreement dated July 8, 2013, between IPSCO and Gulf Coast Tubulars, Inc. 

Distribution Agreement – Line Pipe dated April 15, 2011, between IPSCO and Consolidated Pipe & Supply Company, as amended. 

Distribution Agreement dated April 29, 2010, between IPSCO and Pipeco Services, Inc., as amended. 

Distribution Agreement dated April 29, 2010, now between IPSCO and Bourland & Leverich Supply Co, LLC, as amended. 

Distribution Agreement – Ultra Premium Connections dated December 15, 2010, between IPSCO and Sooner Pipe, L.L.C., as amended. 

Letter Agreement, dated as of November 15, 2016, agreed to by IPSCO, Nucor Steel Gallatin, Nucor Steel Arkansas, and Nucor Steel Indiana, as amended,
modified, or supplemented. 
 All lease agreements and amendments thereto covering the properties described in part B of Schedule 3.05 above. 

Deed of Loan Guarantee dated January 25, 2011, to which IPSCO is a party as a “Loan Guarantor” (as defined therein), pursuant to a Loan
Guarantor Deed of Accession, dated as of April 21, 2011, pursuant to which IPSCO, among other guarantors and among other actions, guarantees the due and punctual performance by PAO TMK of all of PAO TMK’s obligations under the PAO TMK
Eurobond 2011 Loan Agreement, as the same has been or may be amended, restated, supplemented, or modified from time to time in accordance with the terms and conditions thereof and hereof. 

 Schedule 3.14 

Insurance 
 [See attached]

 Schedule 3.15 

Capitalization and Subsidiaries 
  

											
	 Name of Entity
	  	 Type of Entity
	  	 Type of Interest
	  	 Number
	  	 Owner
	  	 Percentage Owned

	IPSCO Tubulars Inc.	  	Corporation	  	Common Share3	  	10,100	  	PAO TMK	  	59%
						
	IPSCO Tubulars Inc.	  	Corporation	  	Common Share	  	2,360	  	PAO TMK	  	14%
						
	IPSCO Tubulars Inc.	  	Corporation	  	Common Share	  	2,360	  	PAO TMK	  	14%
						
	IPSCO Tubulars Inc.	  	Corporation	  	Common Share	  	2,360	  	PAO TMK	  	14%
						
	TMK IPSCO International, L.L.C.	  	Limited Liability Company	  	Limited Liability Company Interest	  	N/A	  	IPSCO Tubulars Inc.	  	100%
						
	TMK NSG, L.L.C.	  	Limited Liability Company	  	Limited Liability Company Interest	  	N/A	  	IPSCO Tubulars Inc.	  	100%
						
	IPSCO Koppel Tubulars, L.L.C.	  	Limited Liability Company	  	Limited Liability Company Interest	  	N/A	  	TMK NSG, L.L.C.	  	100%
						
	IPSCO Tubulars (KY), L.L.C.	  	Limited Liability Company	  	Limited Liability Company Interest	  	N/A	  	TMK NSG, L.L.C.	  	100%
						
	ULTRA Premium Services, L.L.C.	  	Limited Liability Company	  	Limited Liability Company Interest	  	N/A	  	TMK NSG, L.L.C.	  	100%
						
	TMK IPSCO Canada, Ltd.	  	Limited Company	  	Limited Company Interest	  	N/A	  	IPSCO Tubulars Inc.	  	100%

  
  

	3 	 Total outstanding shares for IPSCO Tubulars Inc. is 17,180 shares. 

 Schedule 3.22 

Affiliate Transactions 
  

					
	 Title
	  	 Date
	  	 Between

	Contract No. 1695	  	07.23.2013	  	TMK-Artrom S.A. and TMK IPSCO Canada, Ltd.
			
	TMK-Artrom S.A.—Contract No. 960 -	  	12.15.2011	  	S.C. TMK-ARTROM S.A. and TMK IPSCO International, L.L.C.
			
	Additional Agreement to the Contract No. PI-004.72 dated December 10, 2013	  	02.13.2015	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Additional Agreement to the Contract No. PI-005.72 dated December 10, 2013	  	02.13.2015	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Additional Agreement to the Contract No. PI-006.72 dated December 10, 2013	  	02.13.2015	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Alteration Agreement to the Contract No. PJ-001.77 dated November 1, 2011	  	06.13.2012	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Alteration Agreement to the Contract No. PI-001.77 dated November 1, 2011	  	06.20.2014	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Alteration Agreement to the Contract No. PI-004.72 dated December 12, 2013	  	04.23.2015	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Alteration Agreement to the Contract No. PI-005.72 dated December 10, 2013	  	06.20.2014	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Alteration Agreement to the Contract No. PI-005.72 dated December 12, 2013	  	04.23.2015	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Amendment to the Contract No. PI-001.77 dated November 1, 2011	  	12.20.2011	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Amendment to the Contract No. PI-002.72 dated November 1, 2011	  	12.20.2011	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Amendment to the Contract No. PI-004.72 dated December 10, 2013	  	01.10.2014	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Amendment to the Contract No. PI-004.72 dated December 10, 2013	  	07.21.2014	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Amendment to the Contract No. PI-005.72 dated December 10, 2013	  	01.10.2014	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.

					
	 Title
	  	 Date
	  	 Between

			
	Amendment to the Contract No. PI-005.72 dated December 10, 2013	  	07.21.2014	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Amendment to the Contract No. PI-006.72 dated December 10, 2013	  	01.10.2014	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Amendment to the Contract No. PI-006.72 dated December 10, 2013—	  	07.21.2014	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Contract No. PI-001.77	  	11.01.2011	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Contract No. PI-002.72	  	11.01.2011	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Contract No. PI-004.72	  	12.10.2013	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Contract No. PI-005.72	  	12.10.2013	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Contract No. PI-006.72	  	12.10.2013	  	“Trade House “TMK” Closed Joint Stock Company, Russia and TMK IPSCO International, L.L.C.
			
	Contract No. TU-001-74	  	03.02.2015	  	OAO “TMK”, Russia and TMK IPSCO International, L.L.C.
			
	Contract No. TU-002-74	  	03.02.2015	  	OAO “TMK”, Russia and TMK IPSCO International, L.L.C.
			
	Contract No. TU-003-74	  	03.02.2015	  	OAO “TMK”, Russia and TMK IPSCO International, L.L.C.
			
	Supplement Agreement to Contract No. TU-001-74	  	03.02.2015	  	OAO “TMK”, Russia and TMK IPSCO International, L.L.C.
			
	Supplement Agreement to Contract No. TU-002-74	  	03.02.2015	  	OAO “TMK”, Russia and TMK IPSCO International, L.L.C.
			
	Supplement Agreement to Contract No. TU-003-74	  	03.02.2015	  	OAO “TMK”, Russia and TMK IPSCO International, L.L.C.

 Purchase and Sale Transactions 

Goods and Services Purchase and Sale Agreements 
 On
December 15, 2011, TMK IPSCO International, L.L.C., or IPSCO International, our subsidiary, entered into a purchase and sale agreement with S.C. TMK-ARTROM S.A., or
TMK-ARTROM, a subsidiary of PAO TMK, for the purchase and sale of steel pipe from time to time pursuant to individual purchase orders. The term of this agreement was extended by amendment to December 31,
2016. IPSCO International purchased an approximate aggregate amount of 2,500 tons of steel pipe for approximately $0 and $2.2 million during the six months ended June 30, 2017 and the year ended December 31, 2016, respectively, under
this agreement. 

 On July 23, 2013, our subsidiary TMK IPSCO Canada, Ltd., or IPSCO Canada, entered into a purchase and sale
agreement with TMK-ARTROM for the purchase and sale of steel pipe from time to time pursuant to individual purchase orders. The term of this agreement was extended by amendment to December 31, 2016. 

IPSCO Canada purchased an approximate aggregate amount of 20 tons of steel pipe for approximately $0 and $0.02 million during the six months ended
June 30, 2017 and the year ended December 31, 2016, respectively, under this agreement. 
 On March 2, 2015, IPSCO International entered into
a purchase and sale agreement with PAO TMK for the purchase and sale of steel pipe from time to time pursuant to individual purchase orders. This agreement will remain in force unless one party terminates the agreement upon 30 days’ written
notice or the agreement is otherwise terminated pursuant to its terms. IPSCO International purchased an approximate aggregate amount of 185 tons of steel pipe for approximately $0.5 million and $0 during the six months ended June 30, 2017
and the year ended December 31, 2016, respectively, under this agreement. 
 On March 2, 2015, IPSCO International entered into a second purchase
and sale agreement with PAO TMK for the purchase and sale of steel pipe from time to time pursuant to individual purchase orders. This agreement will remain in force unless one party terminates the agreement upon 30 days’ written notice or the
agreement is otherwise terminated pursuant to its terms. IPSCO International purchased an approximate aggregate amount of 9,400 tons of steel pipe for approximately $1.8 million and $4.1 million during the six months ended June 30,
2017 and the year ended December 31, 2016, respectively, under this agreement. 
 On March 2, 2015, IPSCO International entered into a third
purchase and sale agreement with PAO TMK for the purchase and sale of steel pipe from time to time pursuant to individual purchase orders. This agreement will remain in force unless one party terminates the agreement upon 30 days’ written
notice or the agreement is otherwise terminated pursuant to its terms. IPSCO International purchased an approximate aggregate amount of 172,600 tons of steel pipe for approximately $62.8 million and $47.9 million during the six months
ended June 30, 2017 and the year ended December 31, 2016, respectively, under this agreement. 
 During the year ended December 31, 2016, we
sold back pipe we previously purchased from TMK Gulf International Pipe Industry LLC, a subsidiary of our parent, for a total of approximately $1.2 million. 

On September 26, 2016, IPSCO International entered into a sale of goods agreement with OFS International for the purchase by OFS International from us of
coupling stock, couplings, heavy wall drill pipe, seamless line pipe and OCTG for total consideration of approximately $41.5 million. 
 IPSCO and our
subsidiaries have also engaged in other transactions with OFS International and its subsidiaries. These transactions include the sale of goods and services, pursuant to individual purchase orders, to OFS International and its subsidiaries, including
fishing tools and thread protectors, for which we have recorded approximately $0.5 million and $0.8 million in revenue for the six months ended June 30, 2017 and the year ended December 31, 2016, respectively. These transactions
also include the purchase of goods and services, pursuant to individual purchase orders, from OFS International and its subsidiaries, for which we have recorded approximately $5.7 million and $9.3 million in purchases for the six months
ended June 30, 2017 and the year ended December 31, 2016, respectively. 

 IPSCO and our subsidiaries have also engaged in transactions with TMK Completions Ltd. and its subsidiaries.
These transactions include the sale of pipe, pursuant to individual purchase orders, to TMK Completions Ltd. and its subsidiaries, for which we have recorded approximately $1.12 million and $0.56 million in revenue for the six months ended
June 30, 2017 and the year ended December 31, 2016, respectively. 
 License Agreements 

On June 30, 2014, our subsidiary Ultra Premium Oilfield Services, Ltd., or Ultra, entered into a license agreement with Oilfield Services &
Technologies, LLC, or OS&T, a subsidiary of OFS, pursuant to which Ultra granted to OS&T a non-exclusive license to market, distribute, offer for sale and sell in the United States oilfield casing,
tubing and other products patented by Ultra and manufactured by Ultra manufacturing facilities in Houston, Texas, Odessa, Texas or Brookfield, Ohio or a certain OS&T manufacturing facility in Houston, Texas. The license agreement also granted to
OS&T a license in and to certain of Ultra’s proprietary technology and trademarks for use in connection with the marketing, distribution and sale of such products in the United States. OS&T agreed to pay Ultra a royalty ranging from
$5.00 to $69.00 based on the type of product manufactured and sold using the specified licensed technology. On the same date, Ultra entered into a license agreement with OS&T, pursuant to which Ultra granted to OS&T a non-exclusive license in and to certain of Ultra’s proprietary technology and trademarks for use in connection with the manufacturing, threading or repair of oilfield casing, tubing and other products for Ultra
or a licensed seller at a licensed manufacturing facility in Houston, Texas. 
 The terms of each of these license agreements is one year, but these
agreements are automatically renewed for an additional year unless terminated (i) by Ultra if OS&T breaches a covenant, representation or warranty and fails to cure, is adjudged bankrupt, has its assets placed in the hands of a receiver or
makes any assignment or other accommodation for the benefit of creditors or (ii) by either party upon 30 days’ written notice. Ultra has recorded approximately $0 and $1.1 million in licensing revenues under these agreements for the
six months ended June 30, 2017 and the year ended December 31, 2016, respectively. 
 On July 25, 2014, Ultra entered into a license
agreement with TMK Premium Services, or TMK Premium, pursuant to which Ultra granted to TMK Premium a non-exclusive license for the use of connections
“know-how” in exchange for a pay-per-use fee. In consideration of the license granted under the agreement, TMK Premium
agreed to pay Ultra $25.00 each time it threads a product using Ultra’s connections technology. This license agreement has a perpetual term. Ultra has recorded approximately $0.1 million and $0.2 million in licensing revenues under
this agreement for the six months ended June 30, 2017 and the year ended December 31, 2016, respectively. 
 On December 12, 2016, Ultra
entered into a license agreement with OS&T, OFS International and Threading and Precision Manufacturing LLC, or Threading, a subsidiary of OFS International, pursuant to which Ultra granted to each of OS&T, OFS International and Threading a non-exclusive license to market, distribute, offer for sale and sell in the United States oilfield casing, tubing and other products patented by Ultra and manufactured by licensed manufacturing facilities. The
license agreement also granted to OS&T, OFS International and Threading a license in and to certain of Ultra’s proprietary technology and trademarks for use in connection with the marketing, distribution and sale of such products in the
United States. OS&T, OFS International and Threading agreed to pay Ultra a royalty ranging from $2.00 to $79.00 based on the type of product manufactured and sold using the specified licensed technology. On the same date, Ultra entered into a
license agreement with OS&T, OFS International and Threading pursuant to which Ultra granted to each of OS&T, OFS International and Threading a non-exclusive license in and to certain of Ultra’s
proprietary technology and trademarks for use in connection with the manufacturing, threading or repair of oilfield casing, tubing and other products for Ultra or a licensed seller at a licensed manufacturing facility. The term of each of these
license agreements is one year, but these agreements are automatically renewed for an additional year unless 

 
terminated (i) by Ultra if OS&T, OFS International or Threading breaches a covenant, representation or warranty and fails to cure, is adjudged bankrupt, has its assets placed in the
hands of a receiver or makes any assignment or other accommodation for the benefit of creditors or (ii) by either party upon 30 days’ written notice. Ultra has recorded approximately $0.9 million and $0 in licensing revenues under
these agreements for the six months ended June 30, 2017 and the year ended December 31, 2016, respectively. 
 R&D Testing Services
Agreements 
 On May 12, 2015, IPSCO entered into a services agreement with TMK Premium, pursuant to which IPSCO agreed to perform certain
threaded connection testing services, other scientific research and design work objects testing and manufacturing activities for TMK Premium. This agreement terminates on December 31, 2017. We have recorded approximately $0 and
$0.4 million in revenues under this agreement for the six months ended June 30, 2017 and the year ended December 31, 2016, respectively. 

On November 10, 2015, IPSCO entered into a services agreement with TMK Premium, pursuant to which IPSCO agreed to perform certain threaded connections
testing services and other scientific research and design work objects testing for TMK Premium. This agreement terminated on December 31, 2016. We have recorded approximately $0 and $0.2 million in revenues under this agreement for the six
months ended June 30, 2017 and the year ended December 31, 2016, respectively. 
 On February 2, 2016, IPSCO entered into a services
agreement with TMK Premium, pursuant to which IPSCO agreed to perform certain threaded connections testing services and other scientific research and design work objects testing for TMK Premium. This agreement terminated on December 31, 2016.
We have recorded approximately $0.2 million and $0.2 million in revenues under this agreement for the six months ended June 30, 2017 and the year ended December 31, 2016, respectively. 

On February 2, 2016, IPSCO entered into a services agreement with TMK Premium, pursuant to which IPSCO agreed to perform certain threaded connections
testing services and other scientific research and design work objects testing for TMK Premium. This agreement terminated on March 31, 2017. We have recorded approximately $0 and $0.3 million in revenues under this agreement for the six
months ended June 30, 2017 and the year ended December 31, 2016, respectively. 
 On August 4, 2016, IPSCO entered into a services agreement
with TMK Premium, pursuant to which IPSCO agreed to perform certain threaded connections testing services and other scientific research and design work objects testing for TMK Premium. This agreement terminates on December 31, 2017. We have
recorded approximately $0.2 million and $0 in revenues under this agreement for the six months ended June 30, 2017 and the year ended December 31, 2016, respectively. 

On October 25, 2016, IPSCO entered into a services agreement with TMK Premium, pursuant to which IPSCO agreed to perform certain threaded connections
testing services and other scientific research and design work objects testing for TMK Premium. This agreement terminates on December 31, 2017. We have recorded approximately $0.3 million and $0 in revenues under this agreement for the six
months ended June 30, 2017 and the year ended December 31, 2016, respectively. 
 On December 5, 2016, IPSCO entered into a services
agreement with TMK Premium, pursuant to which IPSCO agreed to perform certain threaded connections testing services and other scientific research and design work objects testing for TMK Premium. This agreement terminates on December 31, 2017.
We have recorded approximately $0 and $0.3 million in revenues under this agreement for the six months ended June 30, 2017 and the year ended December 31, 2016, respectively. 

 Third Party Representative Agreement 

On June 24, 2016, IPSCO entered into an agency agreement with TMK Industrial Solutions L.L.C., or TMK Industrial, a subsidiary of PAO TMK, pursuant to
which IPSCO appointed TMK Industrial as our non-exclusive sales representative. The agreement, effective May 16, 2016, provides that IPSCO will pay to TMK Industrial a commission based on orders for steel
pipe, stock or billets procured by TMK Industrial. We have recorded approximately $0.7 million and $0.4 million in payments under this agreement for the six months ended June 30, 2017 and the year ended December 31, 2016,
respectively. 
 Deed of Loan Guarantee dated January 25, 2011, to which IPSCO is a party as a “Loan Guarantor” (as defined therein),
pursuant to a Loan Guarantor Deed of Accession, dated as of April 21, 2011, pursuant to which IPSCO, among other guarantors and among other actions, guarantees the due and punctual performance by PAO TMK of all of PAO TMK’s obligations
under the PAO TMK Eurobond 2011 Loan Agreement, as the same has been or may be amended, restated, supplemented, or modified from time to time in accordance with the terms and conditions thereof and hereof. 

 Schedule 6.01 

Existing Indebtedness 
  

											
	 Agreement
	  	 Parties
	  	Amount	 	  	Date of
Agreement	 
	 Indenture of Trust

(“Series 1999 Bonds”)
	  	City of Blytheville, Arkansas (“Issuer”) and BOKF, NA (“Successor Trustee”)	  	$	28,000,000	 	  	 	11/1/99	 
	 Indenture of Trust

(“Series 2006 Bonds”)
	  	City of Blytheville, Arkansas (“Issuer”) and BOKF, NA (“Successor Trustee”)	  	$	40,000,000	 	  	 	07/15/06	 

 Schedule 6.02 

Existing Liens 
 None. 

 Schedule 6.04 

Existing Investments 
 None. 

 Schedule 6.10 

Existing Restrictions 
 None.Exhibit 10.1

 

FIRST FOLLOW-ON SECURITIES PURCHASE AGREEMENT

 

THIS FIRST FOLLOW-ON SECURITIES PURCHASE
AGREEMENT (this “Agreement”) is entered into as of August 15, 2018, by and among BIRNER DENTAL MANAGEMENT SERVICES,
INC., a Colorado corporation (the “Company”), and the investor set forth on the signature page hereto (the “Investor”).

 

WHEREAS, on December 28, 2017 affiliates of the Investor acquired
from the Company $4,990,000 in aggregate principal amount of convertible senior subordinated secured loan notes and ten (10) shares
of Series A Preferred Stock pursuant to a Securities Purchase Agreement, dated December 28, 2017, by and between the Investors
party thereto (the “Original Investors”) and the Company (the “Original Purchase Agreement”);

 

WHEREAS, in connection with the Original Purchase Agreement,
the Original Investors and the Company entered into a Registration Rights Agreement, Security Agreement, and Subordination Agreement;
and

 

WHEREAS, the Investor has agreed to acquire additional Notes
and shares of Series A Preferred Stock from the Company pursuant to the terms and conditions of this Agreement.

 

THE PARTIES HEREBY AGREE AS FOLLOWS:

 

SECTION
1

 

DEFINITIONS

 

1.1          
Definitions. Capitalized terms used but not otherwise defined herein shall have the meanings provided therefor in the Original
Purchase Agreement.

 

SECTION
2

 

ISSUANCE OF SECURITIES

 

2.1           Issuance
of Convertible Notes and Series A Convertible Preferred Stock. Subject to the terms and conditions of this Agreement, on the
Closing Date, the Company shall issue and sell to the Investor (i) a convertible senior subordinated secured loan note (the “Note”)
in the aggregate principal amount of $467,000 (the “Principal Amount”) and (ii) one (1) share of Series A Convertible
Preferred Stock of the Company (the “Series A Preferred Stock”), at a purchase price of $1,000 per share, for
an aggregate purchase price of $1,000 in cash (the “Series A Preferred Stock Purchase Price”), against payment
by the Investor to (or to the order of) the Company of the Principal Amount and the Series A Preferred Stock Purchase Price. The
Note shall be in the form of Exhibit A attached to the Original Purchase Agreement. Shares of Series A Preferred Stock may
only be purchased, sold or otherwise transferred together with the Notes. The Notes and shares of Series A Preferred Stock shall
be convertible into Series B Preferred Stock, and the shares of Common Stock into which such additional shares of Series B Preferred
Stock are convertible shall be “Registrable Securities” under the Registration Rights Agreement. The Notes and the
indebtedness evidenced thereby shall be obligations secured pursuant to the Security Agreement and subordinated as set forth in
the Subordination Agreement. The Investor hereby agrees to be bound by the Registration Rights Agreement, Security Agreement, and
Subordination Agreement as fully and the same as if a party thereto with respect to the Note and the Series A Preferred Stock to
be issued pursuant to this Agreement and the Common Stock issuable upon conversion thereof.

 

     

     

    

 

2.2           Closing.
The closing of the purchase and sale of the Notes and Series A Preferred Stock (the “Closing”) hereunder shall
be held at the offices of Thompson Hine LLP, 3900 Key Center, 127 Public Square, Cleveland, Ohio 44114-1291 within two Business
Days after the date hereof, or at such other place as is mutually agreeable to the Company and the Investor (the “Closing
Date”).

 

2.3           Conditions
to Investor Obligations. The obligation of the Investor to purchase the Note and Series A Preferred Stock at the Closing shall
be subject to the prior or concurrent satisfaction of each of the conditions precedent set forth in this Section 2.3.

 

(a)           Agreement.
The Investor shall have received, in form and substance satisfactory to it, a fully-executed version of this Agreement.

 

(b)           Secretary’s
Certificate, Etc. The Investor shall have received (each of which shall be in form and substance satisfactory to the Investor):

 

(i)       a
certificate, dated as of the Closing Date, of the Secretary of the Company certifying (A) copies of the resolutions and other actions
taken or adopted by the Company authorizing the execution, delivery and performance of this Agreement, (B) the Governing Documents
of the Company, including the Articles of Amendment of Series A Preferred Stock, the Articles of Amendment of Series B Preferred
Stock, and (C) the incumbency, authority and signatures of the officers of the Company who are authorized to execute this Agreement;

 

(ii)       a
good standing certificate with respect to the Company as of a date recently prior to the Closing Date from the Secretary of the
State (or other appropriate Governmental Authority) of the state in which the Company is organized or formed and of each state
in which the Company and any of its Subsidiaries or its Managed PCs does business.

 

(c)           Collateral
Matters. The Investor shall have received each of the following (each of which shall be in form and substance satisfactory
to the Investor):

 

(i)       confirmation
that all UCC-1 financing statements and other filings necessary or appropriate in the opinion of the Investor to perfect the security
interests of the Investor in the Collateral have been accepted for filing;

 

(ii)       such
lien and judgment searches as the Investor may have requested, and such termination statements or other documents, as may be necessary
to confirm that the Collateral is subject to no other security interests in favor of any Persons other than Permitted Liens and
other than pursuant to the Subordination Agreement; and

 

(iii)       evidence
that all other actions necessary or appropriate in the opinion of the Investor to perfect and protect the Investor’s security
interests in the Collateral have been taken (subject to the Subordination Agreement).

 

    	 	2	 

     

    

 

(d)           Authorizations,
Approvals, Etc. The Investor shall have received, in form and substance satisfactory to it, evidence that all (i) approvals
or consents of any Governmental Authority, and (ii) approvals or consents of any other Person, required in connection with the
execution with the execution, delivery and performance of this Agreement shall have been obtained.

 

(e)           No
Contest, Etc. No claim, litigation, arbitration, governmental investigation, injunction, order, proceeding or inquiry shall
be pending or threatened which: (i) seeks to enjoin or would be reasonably be expected to materially delay, impose material limitations
on, or otherwise prevent the consummation of, or to recover any damages or obtain relief as a result of, the transactions contemplated
by or in connection with this Agreement; or (ii) would otherwise be materially adverse to any of the parties hereto with respect
to the transactions contemplated hereby.

 

(f)            Closing
Certificate. The Investor shall have received a certificate, dated as of the Closing Date, of an authorized signatory of the
Company to the effect that: (i) all conditions precedent set forth in this Section 2.3 have been satisfied; (ii) all representations
and warranties set forth in Section 4 of this Agreement are true, correct and complete in all respects as of such date (except
for representations and warranties that speak as of a specific date which shall be true, correct and complete in all respects as
of such specified date); (iii) except for Defaults or Events of Default that have been waived, no Default or Event of Default has
occurred; and (iv) the Company has obtained and maintains in full force and effect each and every consent, approval, filing and
registration by or with any Person, including, without limitation, any Governmental Authority, necessary to authorize or permit
the execution, delivery or performance of the Transaction Documents, the issuance of the Notes, Series A Preferred Stock, Series
B Preferred Stock and Common Stock issuable upon conversion of Series B Preferred Stock (including any approval, consent, filing
and registration required under federal or state securities laws), the validity or enforceability thereof, or the consummation
of the transactions contemplated by this Agreement.

 

(g)           Other
Documents, Certificates, Etc. The Investor shall have received such other documents, certificates, opinions of counsel or other
materials, as it may reasonably request from the Company.

 

(h)           Satisfactory
Legal Form. All closing documents executed or submitted by or on behalf of the Company or any other Person shall be satisfactory
in form and substance to the Investor, and the Investor shall have received such counterpart originals or such certified or other
copies of such closing documents, as the Investor may request.

 

(i)            Material
Adverse Effect. On and as of the Closing Date, there shall have occurred no Material Adverse Effect since the date of the most
recent financial statements delivered by or on behalf of the Company to the Investor.

 

(j)            Representations
and Warranties; No Default, Event of Default. On the Closing Date, both before and after giving effect to the issuance of the
Notes and Series A Preferred Stock and to the application of proceeds therefrom: (i) the representations and warranties of the
Company and contained herein shall be true, correct and complete in all respects on and as of the Closing Date as though made on
and as of such date (except for representations and warranties that speak as of a specific date which shall be true, correct and
complete in all respects as of such specified date); and (ii) no Default or Event of Default shall have occurred and be continuing
or shall result from the issuance of the Note and Series A Preferred Stock under this Agreement.

 

    	 	3	 

     

    

 

(k)           Disclosure
Schedule. The Investor shall have received the disclosure schedule contemplated by Section 4 of this Agreement (the “Disclosure
Schedule”), which shall be executed by the Company and in form and substance satisfactory to the Investor.

 

(l)            Wire
Instructions. The Company shall have provided the Investor with the Company’s wire instructions, on Company letterhead
and executed by the Chief Executive Officer or Chief Financial Officer of the Company, and with wire instructions of such third
parties as the Company may designate to receive funds at Closing.

 

2.4           Conditions
to Company Obligations. The obligations of the Company hereunder in connection with the Closing are subject to the following
conditions being met:

 

(a)           Representations
and Warranties. On the Closing Date, the representations and warranties of the Investor contained herein shall be true, correct
and complete in all respects on and as of the Closing Date as though made on and as of such date (except for representations and
warranties that speak as of a specific date which shall be true, correct and complete in all respects as of such specified date).

 

(b)           Purchase
Price. The Investor shall have delivered to the Company the items set forth in Section 2.5(ii) of this Agreement.

 

2.5           Delivery.
On the Closing Date, (i) the Company shall execute and deliver to the Investor the Notes and shares of Series A Preferred Stock,
and (ii) the Investor shall deliver to the Company and such third parties as the Company may designate to receive funds at Closing
a check or checks or wire transfers of immediately available funds in an amount equal to the original Principal Amount of the Notes
and the Series A Preferred Stock Purchase Price less the amount equal to the Investor’s expenses, including legal
fees and expenses, incurred in connection with the transactions contemplated herein. The Notes shall be binding obligations of
the Company upon execution thereof by the Company and delivery thereof to the Investor. Shares of Series A Preferred Stock shall
be duly authorized, fully paid and nonassessable upon delivery of such shares to the Investor.

 

SECTION
3

 

REPRESENTATIONS AND WARRANTIES OF THE
INVESTOR

 

The Investor hereby represents and warrants to the Company as
of the date hereof and the Closing Date as follows:

 

3.1           Purchase
for Own Account. The Investor represents that it is acquiring the Securities pursuant to this Agreement solely as an investment
for such Person’s own account not as a nominee or agent, and not with a view to the resale or distribution of any part thereof,
and that the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The
acquisition by the Investor of any of the Securities pursuant to this Agreement shall constitute confirmation of the representation
by the Investor that the Investor does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer
or grant participations to such person or to any third person, with respect to any of the Securities.

 

    	 	4	 

     

    

 

3.2           Disclosure
of Information. The Investor has received all the information it considers necessary or appropriate for deciding whether to
acquire the Securities pursuant to this Agreement. The Investor further represents that it has had an opportunity to ask questions
and receive answers from the Company regarding the terms and conditions of the offering of the Securities and the business, properties,
prospects and financial condition of the Company.

 

3.3           Investment
Experience. Either (i) the Investor or its officers, directors, managers or controlling persons has a preexisting personal
or business relationship with the Company or its officers, directors or controlling persons, or (ii) the Investor, by reason of
its own business and financial experience, has the capacity to protect its own interests in connection with the investment contemplated
hereby. The Investor such knowledge and experience in financial or business matters that it is capable of evaluating the merits
and risks of the investment in the Securities pursuant to this Agreement. The Investor acknowledges that any investment in the
Securities pursuant to this Agreement involves a high degree of risk and represents that it is able, without materially impairing
its financial condition, to hold the Securities acquired pursuant to this Agreement for an indefinite period of time and to suffer
a complete loss of its investment.

 

3.4           Accredited
Investor. The Investor represents that it is an “accredited investor” within the meaning of Regulation D promulgated
under the Securities Act.

 

3.5           Restrictions
on Transfer. The Investor understands that the Securities acquired pursuant to this Agreement are characterized as “restricted
securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving
a public offering and that under such laws and applicable regulations such securities may be resold without registration under
the Securities Act, only in certain limited circumstances. In this connection, the Investor represents that it is familiar with
Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and
by the Securities Act.

 

3.6           Organization
and Standing of Investor. The Investor is a corporation, limited liability company, limited partnership or partnership duly
incorporated or organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization.

 

3.7           Authorization
and Power. The Investor has the requisite power and authority to enter into and perform this Agreement and to purchase the
Notes and Series A Preferred Stock being sold to it hereunder. The execution, delivery and performance of this Agreement by the
Investor and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary
corporate or partnership action, and no further consent or authorization of the Investor or its board of directors, managers, shareholders,
partners, or members, as the case may be, is required. This Agreement has been duly authorized, executed and delivered by the Investor
and constitutes, or shall constitute when executed and delivered, a valid and binding obligation of the Investor enforceable against
the Investor in accordance with the terms thereof.

 

    	 	5	 

     

    

 

3.8           No
Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Investor of the transactions
contemplated hereby do not and will not (a) result in a violation of the Investor’s charter documents or bylaws or other
organizational documents or (b) conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement,
indenture or instrument or obligation to which the Investor is a party or by which its properties or assets are bound, or result
in a violation of any law, rule, or regulation, or any order, judgment or decree of any court or governmental agency applicable
to the Investor or its properties (except for such conflicts, defaults and violations as would not, individually or in the aggregate,
have a material adverse effect on the Investor). The Investor is not required to obtain any consent, authorization or order of,
or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of
its obligations under this Agreement or to purchase the Notes and shares of Series A Preferred Stock in accordance with the terms
hereof, provided that for purposes of the representation made in this sentence, the Investor is assuming and relying upon the accuracy
of the relevant representations and agreements of the Company herein.

 

3.9           General
Solicitation. The Investor is not purchasing the Securities pursuant to this Agreement as a result of any advertisement, article,
notice or other communication regarding such Securities published in any newspaper, magazine or similar media or broadcast over
television or radio or presented at any seminar or any other general advertisement.

 

3.10         Residency.
The Investor is a resident of that jurisdiction specified below its address on its signature page hereto.

 

3.11         Reliance
on Exemptions. The Investor understands that the Securities acquired pursuant to this Agreement are being offered and sold
to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws
and that the Company is relying in part upon the truth and accuracy of, and the Investor’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Investor set forth herein in order to determine the availability
of such exemptions and the eligibility of the Investor to acquire such Securities.

 

SECTION
4

 

REPRESENTATIONS AND WARRANTIES OF THE
COMPANY

 

The Company hereby represents and warrants to the Investor as
of the date hereof and the Closing Date that:

 

4.1           Organization,
Good Standing and Qualification; Licenses. Each of the Company, its Subsidiaries and its Managed PCs is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization and has all requisite power
and authority, and holds all governmental licenses, permits, registrations and other approvals required under applicable law, to
own and hold under lease its property and to carry on its business as now conducted and as proposed to be conducted, except where
the failure to hold any such licenses, permits, registrations and other approvals could not result in a Material Adverse Effect.
Each of the Company, its Subsidiaries and its Managed PCs is qualified to do business in each jurisdiction where the nature of
its properties of the conduct of its business requires it to be so qualified to do business and where the failure so to qualify
could result in a Material Adverse Effect.

 

    	 	6	 

     

    

 

4.2           Authorization.
All action on the part of the Company necessary for the authorization, execution and delivery of this Agreement and the other Transaction
Documents, the performance of all obligations of the Company hereunder, and the authorization, issuance (or reservation for issuance),
sale and delivery of the Securities pursuant to this Agreement, has been taken or will be taken prior to the Closing Date. Each
of this Agreement and the Note Documents constitutes the valid and legally binding obligation of the Company, enforceable against
the Company in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.

 

4.3           Capitalization.
The aggregate number of shares and type of all authorized, issued and outstanding classes of capital stock or equity interests,
options and other securities of the Company, each of its Subsidiaries and each of its Managed PCs (whether or not presently convertible
into or exercisable or exchangeable for shares of capital stock or equity interests of the Company or such Subsidiaries or Managed
PCs) is set forth in Schedule 4.3 of the Disclosure Schedule. No shares of preferred stock of the Company are issued and
outstanding. All outstanding shares of capital stock and equity interests are duly authorized, validly issued, fully paid and nonassessable
and have been issued in compliance with all applicable securities laws. All outstanding shares of capital stock of each of the
Managed PCs are owned by the respective individuals set forth in Schedule 4.3 of the Disclosure Schedule free and clear
of any security interests, claims, liens or encumbrances, except those in favor of the Company pursuant to agreements between the
Company and such individual shareholders. Except as disclosed in Schedule 4.3 of the Disclosure Schedule, none of the Company,
any of its Subsidiaries or any of its Managed PCs has any options, warrants, script rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for,
or agreement giving any Person any right to subscribe for or acquire, any shares of Common Stock or equity interests, or securities
or rights convertible or exchangeable into shares of capital stock or equity interests, options and other securities of the Company,
any of its Subsidiaries or any of its Managed PCs. Except as set forth on Schedule 4.3 of the Disclosure Schedule, and except
for customary adjustments as a result of stock dividends, stock splits, combinations of shares, reorganizations, recapitalizations,
reclassifications or other similar events, there are no anti-dilution or price adjustment provisions contained in any security
issued by the Company (or in any agreement of the Company providing rights to security holders) and the issuance and sale of the
shares of Series A Preferred Stock pursuant to this Agreement will not obligate the Company to issue shares of Common Stock or
other securities to any Person (other than the Investor) and will not result in a right of any holder of securities to adjust the
exercise, conversion, exchange or reset price under such securities. To the knowledge of the Company, except as specifically disclosed
in SEC Reports or in Schedule 4.3 of the Disclosure Schedule, no Person or group of related Persons beneficially owns (as
determined pursuant to Rule 13d-3 under the Exchange Act), or has the right to acquire, by agreement with or by obligation binding
upon the Company, beneficial ownership of in excess of 5% of the outstanding Common Stock.

 

    	 	7	 

     

    

 

4.4           Absence
of Required Consents; No Violations. No consent, approval, order or authorization of, or registration, qualification, designation,
declaration or filing with, any Governmental Authority on the part of the Company, any of its Subsidiaries or any of its Managed
PCs is required in connection with the consummation of the transactions contemplated by this Agreement, except for the filing with
the SEC of a Form D, one or more Current Reports on Form 8-K, and such filing(s) pursuant to applicable state securities laws as
may be necessary, which filings will be timely effected after the relevant Closing Date, and recordings or filings in connection
with the perfection of the Liens on the Collateral in favor of the Investor. None of the Company, any of its Subsidiaries or any
of its Managed PCs is in violation or default (i) of any provision of its Governing Documents, (ii) of any instrument, judgment,
order, writ, decree or contract to which it is a party or by which it is bound, or (iii) of any provision of any federal or state
statute, rule or regulation applicable to the Company, except in the cases of clause (ii) and (iii) above, for such violations
or defaults that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The execution,
delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not result in any
such violation or be in conflict with or constitute, with or without the passage of time and giving of notice, either a default
under any such provision, instrument, judgment, order, writ, decree or contract or an event that results in the creation of any
Lien upon any material assets of the Company, any of its Subsidiaries or any of its Managed PCs or the suspension, revocation,
impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to the Company, any of its Subsidiaries
or any of its Managed PCs, their business or operations or any of their assets or properties and which would result in a Material
Adverse Effect.

 

4.5           SEC
Reports; Financial Statements. The Company has filed all reports required to be filed by it under the Exchange Act, including
pursuant to Section 13(a) or 15(d) thereof, for the twelve months preceding the date hereof (the foregoing materials (together
with any materials filed by the Company under the Exchange Act, whether or not required, and the Company’s XBRL files) being
collectively referred to herein as the “SEC Reports” and, together with this Agreement and the Disclosure Schedule,
the “Disclosure Materials”) on a timely basis or has received a valid extension of such time of filing and has
filed any such SEC Reports prior to the expiration of any such extension. The Company has made available to the Investor or its
representatives true, correct and complete copies of the documents filed with the SEC Reports not available on the EDGAR system.
As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Exchange Act and the
rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations
of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements
or the notes thereto, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, year-end audit adjustments.

 

    	 	8	 

     

    

 

4.6           Material
Changes. Except as set forth in Schedule 4.6 of the Disclosure Schedule, since March 31, 2018, except as specifically
disclosed in the SEC Reports, (i) there has been no event, occurrence or development that, individually or in the aggregate, has
had or that could reasonably be expected to result in a Material Adverse Effect, (ii) none of the Company, any of its Subsidiaries
or any of its Managed PCs has incurred any material liabilities other than (A) trade payables and accrued expenses incurred in
the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s
financial statements pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not altered
its method of accounting or the identity of its auditors, (iv) the Company has not declared or made any dividend or distribution
of cash or other property to its shareholders, in their capacities as such, or purchased, redeemed or made any agreements to purchase
or redeem any shares of its capital stock (except for repurchases by the Company of shares of capital stock held by employees,
officers, directors, or consultants pursuant to an option of the Company to repurchase such shares upon the termination of employment
or services), and (v) none of the Company, any of its Subsidiaries or any of its Managed PCs has issued any equity securities to
any officer, director or Affiliate, except pursuant to existing Approved Stock Plans.

 

4.7           Absence
of Litigation. Except as disclosed in the Company’s SEC Reports, there is no action, suit, claim, or proceeding, or,
to the Company’s knowledge, inquiry or investigation, before or by any court, public board, government agency, self-regulatory
organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company, any of its Subsidiaries
or any of its Managed PCs that could, individually or in the aggregate, have a Material Adverse Effect.

 

4.8           Transaction
Documents. All representations and warranties of the Company contained in the other Transaction Documents to which it is party
are true and correct.

 

4.9           Licenses
and Intellectual Property Rights. The Company, each of its Subsidiaries and each of its Managed PCs possess all licenses, patents,
trademarks, trade names, service marks, copyrights, and other intellectual property rights, free from burdensome restrictions,
necessary to enable them to conduct their respective business, the absence of which could result in a Material Adverse Effect.

 

4.10         Tax
Matters. Except as set forth on Schedule 4.10 of the Disclosure Schedule, the Company, each of its Subsidiaries and
each of its Managed PCs have filed all federal and other material tax returns and reports required to be filed, have made timely
remittance of all material amounts as required by any governmental agency or authority and have paid all federal and other material
taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise
due and payable, except those which are being or will be contested in good faith by appropriate proceedings and for which adequate
reserves have been provided in accordance with GAAP. None of the Company, any Subsidiary or any Managed PC has received any notice
of any proposed tax assessment that would, if made, have a Material Adverse Effect.

 

4.11         Insurance.
All policies of insurance in effect of any kind or nature owned by or issued to the Company, each of its Subsidiaries and each
of its Managed PCs, including policies of life, fire, theft, product liability, public liability, property damage, other casualty,
employee fidelity, workers’ compensation, property and liability insurance, (a) are, together with all policies of employee
health and welfare and title insurance, if any, in full force and effect, (b) comply in all respects with the applicable requirements
set forth herein and (c) are of a nature and provide such coverage, including through self-insurance, retentions and deductibles,
as is customarily carried by companies engaged in similar businesses and owning similar properties in the same general areas in
which the Company, each of its Subsidiaries and each of its Managed PCs operate.

 

    	 	9	 

     

    

 

4.12         No
Material Adverse Effect. Since March 31, 2018, no event has occurred or condition exists with respect to the Company, any of
its Subsidiaries or any of its Managed PCs that, to the knowledge of the Company, has resulted in, or could reasonably be expected
to result in, a Material Adverse Effect.

 

4.13         Disclosure.
None of the representations or warranties made by the Company herein as of the date of such representations and warranties, and
none of the statements contained in any other information with respect to the Company and its properties and assets, including
each exhibit or report, furnished by or on behalf of the Company to the Investor in connection herewith, contains any untrue statement
of a material fact or omits any material fact required to be stated therein or necessary to make the statements made therein, in
the light of the circumstances under which they are made, not misleading.

 

4.14         Sarbanes-Oxley;
Internal Accounting Controls. The Company, the Subsidiaries and the Managed PCs are in compliance with any and all applicable
requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations
promulgated by the SEC thereunder that are effective as of the date hereof and as of the Closing Date. The Company, the Subsidiaries
and the Managed PCs maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets
is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
The Company, the Subsidiaries and the Managed PCs have established disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) for the Company, the Subsidiaries and the Managed PCs and designed such disclosure controls and
procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. The
Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company,
the Subsidiaries and the Managed PCs as of the end of the period covered by the most recently filed periodic report under the Exchange
Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under
the Exchange Act the conclusions of its certifying officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over
financial reporting (as such term is defined in the Exchange Act) of the Company, its Subsidiaries and its Managed PCs that have
materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company,
its Subsidiaries and its Managed PCs.

 

    	 	10	 

     

    

 

4.15         Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject
to registration under the Investment Company Act of 1940, as amended.

 

4.16         Registration
Rights. Other than as disclosed in the SEC Reports, no Person has any right to cause the Company, any Subsidiary or any Managed
PC to effect the registration under the Securities Act of any securities of the Company, any Subsidiary or any Managed PC.

 

4.17         Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has the Company received any notification that the SEC is contemplating terminating
such registration. Except as disclosed in the SEC Reports, the Company has not, in the twelve months preceding the date hereof,
received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company
is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to
believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.
The Common Stock is currently eligible for electronic transfer through the Depository Trust Company or another established clearing
corporation and the Company is current in payment of the fees to the Depository Trust Company (or such other established clearing
corporation) in connection with such electronic transfer.

 

4.18         Application
of Takeover Protections. The Company and the board of directors of the Company have taken all necessary action, if any, in
order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company’s articles of incorporation (or similar charter
documents) or the laws of its state of incorporation that is or could become applicable to the Investor as a result of the Investor
and the Company fulfilling their obligations or exercising their rights under this Agreement, including without limitation as a
result of the Company’s issuance of the Securities pursuant to this Agreement and the Investor’s ownership of the Securities
acquired pursuant to this Agreement.

 

4.19         No
Integrated Offering. Assuming the accuracy of the Investor’s representations and warranties set forth in Section 3
of this Agreement, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
cause this offering of the Securities pursuant to this Agreement to be integrated with prior offerings by the Company for purposes
of (i) the Securities Act which would require the registration of the Securities under the Securities Act, or (ii) any applicable
stockholder approval provisions.

 

    	 	11	 

     

    

 

4.20         Solvency.
Based on the consolidated financial condition of the Company, after giving effect to the receipt by the Company of the proceeds
from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s assets exceeds the amount that will
be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business
as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements
of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and
(iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its
assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of
its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay
such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The
Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within six months from the Closing Date. For the purposes of Section
4.20 of this Agreement, “Indebtedness” means (x) any liabilities for borrowed money or amounts owed in excess
of $50,000 (other than trade accounts payable incurred in the ordinary course of business); (y) all guaranties, endorsements and
other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s
consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection
or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $50,000
due under leases required to be capitalized in accordance with GAAP. None of the Company, any Subsidiary or any Managed PC is in
default with respect to any Indebtedness.

 

4.21         Foreign
Corrupt Practices. None of the Company, any Subsidiary or any Managed PC, nor to the knowledge of the Company, any Subsidiary
or any Managed PC, any agent or other person acting on behalf of the Company, any Subsidiary or any Managed PC, has (i) directly
or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or
domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any
foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by
the Company, any Subsidiary or any Managed PC (or made by any person acting on its behalf of which the Company is aware) which
is in violation of law, or (iv) violated any provision of the Foreign Corrupt Practices Act.

 

4.22         Auditors.
The auditor of the Company, which has certified the consolidated financial statements of the Company for the Company’s last
fiscal year, and any of its successors or any other auditing firm that is expected to audit the consolidated financial statements
of the Company for the Company’s fiscal year ending December 31, 2017, is an independent registered public accounting firm
with respect to the Company within the applicable rules and regulations adopted by the SEC and the Public Company Accounting Oversight
Board (United States) and as required by the Securities Act.

 

    	 	12	 

     

    

 

4.23         Acknowledgement
Regarding Investor Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding, but subject
to compliance by the Investor and the Investor Directors with applicable law, it is understood and acknowledged by the Company
that: (i) the Investor has not been asked by the Company to agree, nor has the Investor agreed, to desist from purchasing or selling,
long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company
or to hold the Securities acquired pursuant to this Agreement for any specified term; (ii) past or future open market or other
transactions by any Investor, specifically including, without limitation, short sales or “derivative” transactions,
before or after the closing of this or future private placement transactions, may negatively impact the market price of the Company’s
publicly-traded securities; (iii) the Investor, and counter-parties in “derivative” transactions to which any the Investor
is a party, directly or indirectly, presently may have a “short” position in the Common Stock; and (iv) the Investor
shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction. The Company further understands and acknowledges that (y) the Investor may engage in hedging activities at various
times during the period that the Securities acquired pursuant to this Agreement are outstanding, including, without limitation,
during the periods that the value of the Securities acquired pursuant to this Agreement is being determined, and (z) such hedging
activities (if any) could reduce the value of the existing shareholders’ equity interests in the Company at and after the
time that the hedging activities are being conducted.  The Company acknowledges that such aforementioned hedging activities
do not constitute a breach of this Agreement or any of the Transaction Documents.

 

4.24         Money
Laundering. The operations of the Company, its Subsidiaries and its Managed PCs are and have been conducted at all times in
material compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively,
the “Money Laundering Laws”), and no action or Proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company, any Subsidiary or any Managed PC with respect to the Money Laundering Laws is
pending or, to the knowledge of the Company, any Subsidiary or any Managed PC, threatened.

 

4.25         No
Disqualification Events. With respect to the Securities to be offered and sold hereunder in reliance on Rule 506 under the
Securities Act, none of the Company, any of its predecessors, any affiliated issuer, nor, to its knowledge, any director, executive
officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule
405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered
Person”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii)
under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2)
or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification
Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished
to the Investor a copy of any disclosures provided thereunder.

 

4.26         Other
Covered Persons. The Company is not aware of any person (other than any Issuer Covered Person) that has been or will be paid
(directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Securities pursuant to
this Agreement.

 

4.27         Notice
of Disqualification Events. The Company will notify the Investor in writing, prior to the Closing Date of (i) any Disqualification
Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, reasonably be expected to
become a Disqualification Event relating to any Issuer Covered Person, in each case of which it is aware.

 

    	 	13	 

     

    

 

4.28         Offering.
Subject in part to the truth and accuracy of the Investor’s representations set forth in Section 3 of this Agreement,
the offer, sale and issuance of the Notes and shares of Series A Preferred Stock as contemplated by this Agreement is exempt from
the registration requirements of the Securities Act and will not result in a violation of the qualification or registration requirements
of the any applicable state securities laws, and neither the Company nor any authorized agent acting on its behalf will take any
action hereafter that would cause the loss of such exemption.

 

4.29         Valid
Issuance of Note Conversion Shares. The Note Conversion Shares, when issued, sold and delivered in accordance with the terms
of the Notes, the Articles of Amendment of Series A Preferred Stock and the Articles of Amendment of Series B Preferred Stock for
the consideration specified therein, will be duly and validly issued, fully paid, and nonassessable, and will be free of restrictions
on transfer other than restrictions on transfer under this Agreement and under applicable state and federal securities laws, and
the restrictions imposed by the Subordination Agreement.

 

4.30         Managed
PCs. Each Managed PC conducts its business in material compliance with law and applicable requirements of Governmental Authorities.

 

SECTION
5

 

COMPANY COVENANTS

 

5.1           Covenants.
For so long as any amount remains due and outstanding under the Notes acquired pursuant to this Agreement or any shares of Series
A Preferred Stock or Series B Preferred Stock remain outstanding, the Company and each of its Subsidiaries and its Managed PCs
shall be subject to the following restrictions and obligations:

 

(a)           Incurrence
of Indebtedness. The Company shall not, and the Company shall not permit any of its Subsidiaries or its Managed PCs to, directly
or indirectly, incur, guarantee, or assume any Indebtedness, other than (i) the Indebtedness evidenced by the Notes issued pursuant
to this Agreement and the Original Purchase Agreement and (ii) Permitted Indebtedness.

 

(b)           Existence
of Liens. Other than Permitted Liens, the Company shall not, and the Company shall not permit any of its Subsidiaries or its
Managed PCs to, directly or indirectly, allow or suffer to exist any Liens to the extent such Lien is upon or in a material portion
of (x) the Company’s property and assets or (y) the property and assets of the Company and its Subsidiaries and Managed PCs
taken as a whole on a consolidated basis; unless, all payment obligations under the Notes issued pursuant to this Agreement and
the Original Purchase Agreement are secured on an equal and ratable basis as the obligations secured by such Lien until such time
as such obligations are no longer secured by a Lien;

 

(c)           Restricted
Payments. The Company shall not, and the Company shall not permit any of its Subsidiaries or its Managed PCs to, directly or
indirectly, redeem, defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in
whole or in part, whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion
of any Permitted Indebtedness (other than the Senior Indebtedness), whether by way of payment in respect of principal of (or premium,
if any) or interest on, such Indebtedness if at the time such payment is due or is otherwise made or, after giving effect to such
payment, an event constituting, or that with the passage of time and without being cured would constitute, an Event of Default
has occurred and is continuing.

 

    	 	14	 

     

    

 

(d)           Dilutive
Issuances. Other than pursuant to any Approved Stock Plan and except for the issuance of Excluded Securities, the Company shall
not, in any manner, issue or sell any Common Stock or Common Stock Equivalents unless the purchase, conversion, exchange or exercise
price, as applicable, of any such security cannot be less than the then applicable Conversion Price with respect to the Common
Stock into which any Note, Series A Preferred Stock or Series B Preferred Stock issued or issuable pursuant to this Agreement is
convertible. The Company shall not, in any manner, enter into or affect any Dilutive Issuance if the effect of such Dilutive Issuance
is to cause the Company to be required to issue upon conversion of any Note issued pursuant to this Agreement any shares of Common
Stock in excess of that number of shares of Common Stock which the Company may issue upon conversion of the Notes, Series A Preferred
Stock and Series B Preferred Stock issued or issuable pursuant to this Agreement without breaching the Company’s obligations
under the rules or regulations of the Trading Market on which the Common Stock is then listed or quoted.

 

(e)           Additional
Issuances of Preferred Stock or Convertible Notes. The Company shall not issue, designate or authorize the issuance of any
shares of preferred stock or Common Stock Equivalents having rights, preferences or privileges senior to or on parity with the
Common Stock, other than in connection with the conversion by the Investor of the Notes, the issuance of any such Series A Preferred
Stock or Series B Preferred Stock pursuant to the terms of this Agreement, or the conversion of any such Series A Preferred Stock
or Series B Preferred Stock pursuant to the terms of this Agreement.

 

(f)            Distributions.
The Company shall not declare or pay any dividends or make any distribution of any kind on the Company’s capital stock other
than dividends on the Series A Preferred Stock and the Series B Preferred Stock, or purchase, redeem or otherwise acquire, directly
or indirectly, any shares of the Company’s capital stock, any options, any convertible securities or other rights to acquire
shares of capital stock of the Company, except for the repurchase of such securities from employees or consultants to the Company
at the original issue price paid therefor pursuant to contractual rights of the Company upon the termination of such employees’
or consultants’ employment by or provision of service to the Company, provided that (A) the Company has a repurchase right
with respect to such securities, (B) no Event of Default exists either immediately prior to or after giving effect to such repurchase,
and (C) the total amount paid in connection therewith by the Company does not exceed $50,000 in any fiscal year.

 

(g)           Sale
of Subsidiary or Managed PC. Without prior approval of the Majority Holders, the Company shall not, and shall not permit any
of its direct or indirect Subsidiaries or its Managed PCs to, sell, transfer, cause to be sold or transferred, or otherwise dispose
of, any interest in a Subsidiary or Managed PC of any Person (including through merger, spin-off or consolidation) that is greater
in the aggregate than 10% of the Company’s market capitalization as of the date thereof. Notwithstanding the foregoing, interests
in the Managed PCs may be sold or transferred in the ordinary course of business in connection with the retirement, termination
or other transition of dentists of the Managed PCs who own such interests.

 

    	 	15	 

     

    

 

(h)           Sale
of Assets. Without prior approval of the Majority Holders, the Company shall not, and shall not permit any of its direct or
indirect Subsidiaries or its Managed PCs to, sell, license, transfer or otherwise dispose of any interest in any of such Person’s
assets (including through merger, spin-off or consolidation), except for sales of inventory in the ordinary course of business,
licenses or sublicenses of rights in intellectual property on a non-exclusive or other limited basis in the ordinary course of
business and sales of obsolete equipment, other than for sales in the aggregate for less than 10% of the Company’s market
capitalization as of the date thereof.

 

(i)            Transaction
with Affiliates. The Company shall not, and shall not permit any of its direct or indirect Subsidiaries or its Managed PCs
to, transfer, sell, assign or otherwise dispose of any of its assets to any Affiliate or enter into any transaction directly or
indirectly with or for the benefit of any Affiliate unless the monetary or business consideration arising therefrom would be as
advantageous to the Company or, as applicable, such Subsidiary or Managed PC, as the Company or such Subsidiary or Managed PC would
obtain in a comparable arm’s length transaction with a Person not an Affiliate.

 

(j)            Changes
in Business. The Company shall not enter into or engage in any business other than that (i) carried on (or contemplated to
be carried on) as of the date hereof or (ii) substantially similar and related to the business of the Company carried on as of
the date hereof.

 

(k)           Maintenance
of the Company’s Business. The Company will, and will cause each of its Subsidiaries and Managed PCs to: (i) at all times
cause to be done all things necessary to maintain, preserve and renew its corporate existence and all material licenses, authorizations
and permits necessary to the conduct of its businesses; (ii) maintain and keep its properties in good repair, working order and
condition, and from time to time make all necessary or desirable repairs, renewals and replacements, so that its businesses may
be properly and advantageously conducted in all material respects at all times; (iii) pay and discharge when payable all taxes,
assessments and governmental charges imposed upon its properties or upon the income or profits therefrom (in each case before the
same becomes delinquent and before penalties accrue thereon) and all claims for labor, materials or supplies to the extent to which
the failure to pay or discharge such obligations would reasonably be expected to have a material adverse effect upon the financial
condition, operating results, assets, operations or business prospects of the Company and its Subsidiaries and Managed PCs taken
as a whole, unless and to the extent that the same are being contested in good faith and by appropriate proceedings and adequate
reserves (as determined in accordance with GAAP) have been established on its books and financial statements with respect thereto;
(iv) comply with all other obligations which it incurs pursuant to any contract or agreement, whether oral or written, express
or implied, as such obligations become due to the extent to which the failure to so comply would reasonably be expected to have
a material adverse effect upon the financial condition, operating results, assets, operations or business prospects of the Company
and its Subsidiaries and Managed PCs taken as a whole, unless and to the extent that the same are being contested in good faith
and by appropriate proceedings and adequate reserves (as determined in accordance with GAAP) have been established on its books
and financial statements with respect thereto; (v) comply with all applicable laws, rules and regulations of all Governmental Authorities,
the violation of which would reasonably be expected to have a material adverse effect upon the financial condition, operating results,
assets, operations or business prospects of the Company and its Subsidiaries and its Managed PCs taken as a whole; (vi) apply for
and continue in force with good and responsible insurance companies adequate insurance covering risks of such types and in such
amounts as are customary for companies of similar size engaged in similar lines of business; and (vii) maintain proper books of
record and account which present fairly in all material respects its financial condition and results of operations and make provisions
on its financial statements for all such proper reserves as in each case are required in accordance with GAAP.

 

    	 	16	 

     

    

 

(l)            Asset
Acquisitions. Without prior approval of the Majority Holders, the Company will not, and will cause each of its direct or indirect
Subsidiaries and its Managed PCs not to, acquire any assets with an aggregate value in excess of $1,000,000.

 

(m)           Accounting
Changes. The Company shall not change its fiscal year or make or permit any material change in accounting policies or reporting
practices, except as permitted or required by GAAP.

 

(n)           Amendment
of Governing Documents. Except as provided in this Agreement, the Company shall not amend, supplement, or otherwise modify
any of the provisions of the Company’s Governing Documents in a manner that would be materially adverse to the Investor and
shall not amend, alter, modify or change the rights, preferences or privileges of Common Stock.

 

(o)           Audited
Financial Statements. The Company shall deliver, or cause to be delivered, to the Investor the audited financial statements
for each fiscal year substantially simultaneously with the delivery thereof to the lenders of the Senior Indebtedness.

 

(p)           Notice
of Defaults on Senior Indebtedness. As soon as practicable and in event within two Business Days after giving or receiving
any notice that a default or event of default has occurred under the Senior Indebtedness, the Company shall deliver to the Investor
a copy of any such notice.

 

(q)           Notice
of Defaults and Events of Defaults. The Company shall provide to the Investor, as soon as possible and in any event within
five Business Days after the occurrence thereof, with written notice of each event which either (i) is an Event of Default, or
(ii) with the giving of notice or lapse of time or both would constitute an Event of Default, in each case setting forth the details
of such event and the action which is proposed to be taken by the Company with respect thereto.

 

(r)            Notice
of Litigation. The Company shall provide to the Investor promptly after the commencement thereof, notice of all actions, suits,
and proceedings before any court or Governmental Authority affecting the Company or any of its Subsidiaries or its Managed PCs,
which, if determined adversely to the Company, could have a Material Adverse Effect.

 

(s)           Collateral.
The Company shall deliver, or cause to delivered, such security agreement, guarantees, mortgages and other Collateral Documents
as are necessary to provide the Investor with guarantees by the same entities and security interests in the same assets as the
guarantees and collateral documents delivered pursuant to the Guaranty Bank Agreement, together with such opinions, title insurance
policies, endorsements, financing statements, control agreements and other agreements, documents and instruments in furtherance
of such guarantees and collateral arrangements as any Investor may from time to time reasonably request.

 

    	 	17	 

     

    

 

(t)            Liquidation.
Without prior approval of the Majority Holders, the Company shall not liquidate or dissolve the Company or any of its material
Subsidiaries or material Managed PCs.

 

(u)           Management.
Without prior approval of the Majority Holders, the Company shall not hire or terminate the Chief Executive Officer, Chief Financial
Officer or Chief Operating Officer.

 

5.2           Furnishing
of Information.

 

(a)           Until
such time that (i) no Investor owns any Securities acquired pursuant to this Agreement and (ii) the Notes acquired pursuant to
this Agreement have been converted or repaid in full, the Company covenants to timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act, except in the event
of a merger or acquisition transaction approved by the board of directors that results in the Company not being subject to such
reporting requirements.

 

(b)           At
any time during the period commencing from the date hereof and ending at such time that all of the Securities acquired pursuant
to this Agreement may be sold without any restrictions or limitations pursuant to Rule 144 promulgated under the Securities Act
(including any public information requirements and any restrictions or limitations applicable to affiliates), if the Company (i)
shall fail for any reason to satisfy the current public information requirement under Rule 144(c) or (ii) has ever been an issuer
described in Rule 144(i)(1)(i) or becomes such an issuer in the future, and the Company shall fail to satisfy any condition set
forth in Rule 144(i)(2) (a “Public Information Failure”), then, in addition to the Investor’s other available
remedies, the Company shall pay to the Investor, in cash, as partial liquidated damages and not as a penalty, by reason of any
such delay in or reduction of its ability to sell such Securities, an amount in cash equal to 1.0% of the aggregate Principal Amount
and Series A Preferred Stock Purchase Price on the day of a Public Information Failure and on every 30th day (prorated for periods
totaling less than thirty days) thereafter until the earlier of (a) the date such Public Information Failure is cured and (b) such
time that such public information is no longer required  for such Securities to transfer such Securities pursuant to Rule
144.  The payments to which an Investor shall be entitled pursuant to Section 5.2 of this Agreement) are referred to
herein as “Public Information Failure Payments.”  Public Information Failure Payments shall be paid on
the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred and (ii)
the third Business Day after the event or failure giving rise to the Public Information Failure Payments is cured.  In the
event the Company fails to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments
shall bear interest at the rate of 1.0% per month (prorated for partial months) until paid in full. Nothing herein shall limit
the Investor’s right to pursue actual damages for the Public Information Failure, and the Investor shall have the right to
pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief.

 

    	 	18	 

     

    

 

SECTION
6

 

SUBSEQUENT FINANCINGS

 

6.1           Participation in Future Financing.

 

(a)           Until
36 months after the date hereof, upon any proposed issuance by the Company or any of its Subsidiaries or its Managed PCs of Common
Stock, Preferred Stock or Common Stock Equivalents, other than (i) a rights offering to all holders of Common Stock (which may
include extending such rights offering to holders of Notes and Series B Preferred Stock) or (ii) issuance of Excluded Securities
(each a “Subsequent Financing”), the Company shall offer to the Investor an opportunity to participate in such
Subsequent Financing as provided below, and the Investor shall have the right, but not obligation, to participate in such Subsequent
Financing, in each case up to an amount of the Subsequent Financing equal to the Investor’s ownership percentage of Common
Stock on an “as-converted basis” (assuming the conversion of the Notes, Series A Preferred Stock and Series B Preferred
Stock held by the Investor) (the “Participation Maximum”) on the same terms, conditions and price provided for
in the Subsequent Financing.

 

(b)           At
least 10 Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to the Investor a written notice
of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask the Investor if
it wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”).
Upon the request of the Investor, and only upon a request by the Investor, for a Subsequent Financing Notice, the Company shall
promptly, but no later than one Trading Day after such request, deliver a Subsequent Financing Notice to the Investor. As part
of any such request, the Investor shall be deemed to have acknowledged that the Subsequent Financing Notice may contain material
non-public information. The Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent
Financing, the amount of proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent
Financing is proposed to be effected and shall include a term sheet or similar document relating thereto as an attachment.

 

(c)           If
the Investor desires to participate in such Subsequent Financing, the Investor must provide written notice to the Company by not
later than 5:30 p.m. (New York City time) on the 10th Trading Day after the Investor receives the Pre-Notice that the Investor
is willing to participate in the Subsequent Financing, the amount of the Investor’s participation, and representing and warranting
that the Investor has such funds ready, willing, and available for investment on the terms set forth in the Subsequent Financing
Notice. If the Company receives no such notice from the Investor as of such 10th Trading Day, the Investor shall be deemed to have
notified the Company that it does not elect to participate.

 

(d)           The
Company must provide the Investor with a second Subsequent Financing Notice, and the Investor will again have the right of participation
set forth above in this Section 6.1 of this Agreement, if the Subsequent Financing subject to the initial Subsequent Financing
Notice is not consummated for any reason on the terms set forth in such Subsequent Financing Notice within 30 Trading Days after
the date of the initial Subsequent Financing Notice.

 

    	 	19	 

     

    

 

(e)           The
Company and the Investor agree that if the Investor elects to participate in the Subsequent Financing, the transaction documents
related to the Subsequent Financing shall not include any term or provision whereby the Investor shall be required to agree to
any restrictions on trading as to any of the securities purchased hereunder (for avoidance of doubt, the securities purchased in
the Subsequent Financing shall not be considered securities purchased hereunder) or be required to consent to any amendment to
or termination of, or grant any waiver, release or the like under or in connection with, the Notes, Series A Preferred Stock or
Series B Preferred Stock issued or issuable pursuant to this Agreement, without the prior written consent of the Investor.

 

(f)            Notwithstanding
anything to the contrary in this Section 6.1 and unless otherwise agreed to by the Investor, the Company shall either confirm
in writing to the Investor that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly
disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that the Investor
will not be in possession of any material, non-public information, by the 10th Trading Day following delivery of the Subsequent
Financing Notice. If by such 10th Trading Day, no public disclosure regarding a transaction with respect to the Subsequent Financing
has been made, and no notice regarding the abandonment of such transaction has been received by the Investor, such transaction
shall be deemed to have been abandoned and the Investor shall not be deemed to be in possession of any material, non-public information
with respect to the Company or any of its Subsidiaries or its Managed PCs.

 

SECTION
7

 

MISCELLANEOUS

 

7.1           Survival
of Representations, Warranties and Covenants. The warranties and representations and covenants of the Company and the Investor
contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the occurrence of
the Closing Date for a period of 24 months from the date hereof and shall in no way be affected by any investigation of the subject
matter thereof made by or on behalf of the Investor or the Company. The covenants of the Company and the Investor contained in
or made pursuant to this Agreement, including Section 6 and Section 7 of this Agreement shall survive the execution
and delivery of this Agreement and the occurrence of the Closing Date.

 

7.2           Successors
and Assigns. Except as otherwise provided therein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties (including transferees of any Securities); provided,
however, that the Company may not assign or transfer its rights or obligations hereunder or under the other Transaction
Documents without the prior written consent of the Investor. The Securities acquired pursuant to this Agreement shall be freely
transferable, without restriction, subject to compliance with applicable securities laws and the Subordination Agreement. Notwithstanding
the foregoing, shares of Series A Preferred Stock may only be purchased, sold or otherwise transferred together with the Notes.
Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective
successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement.

 

    	 	20	 

     

    

 

7.3           Governing
Law; Venue; Jury Trial Waiver.

 

(a)           This
Agreement is to be construed in accordance with and governed by the laws of the State of Colorado. The Company hereby agrees that
any legal action or proceeding against it with respect to this Agreement or any of the other Transaction Documents may be brought
in the courts of the State of Colorado or of the United States of America located in the Denver County, Colorado, as the Investor
may elect, and, by execution and delivery hereof, the Company accepts and consents for itself and in respect of its property, generally
and unconditionally, to the jurisdiction of the aforesaid courts and agrees that such jurisdiction shall be exclusive, unless waived
by the Investor, as applicable, in writing, with respect to any action or proceeding brought by the Company against the Investor.
The Company irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the
laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court
has been brought in an inconvenient forum. Nothing herein shall affect the right of the Investor to bring proceedings against the
Company in the courts of any other jurisdiction.

 

(b)           THE
INVESTOR AND THE COMPANY HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY ACTION, CLAIM, SUIT, PROCEEDING OR OTHER LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE INVESTOR ENTERING INTO THIS AGREEMENT.

 

7.4           Counterparts.
This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. The delivery of an executed counterpart of a signature page of this Agreement by telecopy
or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Agreement.

 

7.5           Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

 

7.6           Notices.
Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement
shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to the other party; (b) when
sent by electronic transmission to the email address set forth below if sent between 8:00 a.m. and 5:00 p.m. recipient’s
local time on a Business Day, or on the next Business Day if sent by electronic transmission to the email address set forth below
if sent other than between 8:00 a.m. and 5:00 p.m. recipient’s local time on a Business Day; (c) three Business Days after
deposit in the U.S. mail with first class or certified mail receipt requested postage prepaid and addressed to the other party
at the address set forth below; (d) the next Business Day after deposit with a national overnight delivery service, postage prepaid,
addressed to the parties as set forth below or on the signature pages to this Agreement with next Business Day delivery guaranteed,
provided that the sending party receives a confirmation of delivery from the delivery service provider; or (e) when received by
another party. A party may change or supplement the addresses given above, or designate additional addresses (or electronic addresses
for electronic transmissions), for purposes of this Section 7.6 by giving the other party written notice of the new address
in the manner set forth above.

 

    	 	21	 

     

    

 

7.7           Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only if such amendment, modification or waiver
is in writing and only with the written consent of the Company and the Investor. Any amendment or waiver effected in accordance
with this section shall be binding upon each holder of any Securities acquired under this Agreement at the time outstanding (including
securities into which such Securities are convertible), each future holder of all such Securities, and the Company.

 

7.8           Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.

 

7.9           Use
of Proceeds. The Company shall use the proceeds from the sale of the Notes and Series A Preferred Stock acquired pursuant to
this Agreement for general corporate purposes, including for the payment of obligations under the Permitted Indebtedness as and
when due and payable.

 

7.10         Indemnification.

 

(a)           Indemnification
of Investor. In further consideration of the Investor’s execution and delivery, or acceptance, of this Agreement and
acquiring the Securities hereunder, and in addition to all of the Company’s other obligations under this Agreement, the Company
shall defend, protect, indemnify and hold harmless the Investor and each other holder of such Securities and all of their shareholders,
partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents
or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this
Agreement) (collectively, the “Investor Indemnitees”) from and against any and all actions, causes of action,
suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether
any such Investor Indemnitee is a party to the action for which indemnification hereunder is sought), and including attorneys’
fees and disbursements (the “Investor Indemnified Liabilities”), incurred by any Investor Indemnitee as a result
of, or arising out of, or relating to (i) any intentional misrepresentation or material breach of any representation or warranty
made by the Company in this Agreement or any other certificate, instrument or document contemplated hereby or thereby, (ii) any
material breach of any covenant, agreement or obligation of the Company contained in this Agreement or any other certificate, instrument
or document contemplated hereby or thereby, or (iii) any cause of action, suit or claim brought or made against such Investor Indemnitee
by a third party (including for these purposes a derivative action brought on behalf of the Company) and arising out of or resulting
from the execution, delivery, performance by the Company or enforcement of this Agreement or any other certificate, instrument
or document contemplated hereby or thereby. Notwithstanding the foregoing, the Company shall have no indemnification obligation
to the extent any Investor Indemnified Liabilities are due to the gross negligence or willful misconduct of the Investor Indemnitees.
To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum
contribution to the payment and satisfaction of each of the Investor Indemnified Liabilities which is permissible under applicable
law.

 

    	 	22	 

     

    

 

(b)           Indemnification
of Company. In further consideration of the Company’s execution and delivery, or acceptance, of this Agreement and issuing,
as applicable, the Securities issuable hereunder, and in addition to all of the Investor’s other obligations under this Agreement,
the Investor shall defend, protect, indemnify and hold harmless the Company and each of its officers and directors and any of the
foregoing Persons’ agents or other representatives (including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the “Company Indemnitees”) from and against any
and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Company Indemnitee is a party to the action for which indemnification hereunder is
sought), and including attorneys’ fees and disbursements (the “Company Indemnified Liabilities”), incurred
by any Company Indemnitee as a result of, or arising out of, or relating to (i) any intentional misrepresentation or material breach
of any representation or warranty made by the Investor in this Agreement or any other certificate, instrument or document contemplated
hereby or thereby or (ii) any material breach of any covenant, agreement or obligation of the Investor contained in this Agreement
or any other certificate, instrument or document contemplated hereby or thereby. Notwithstanding the foregoing, the Investor shall
have no indemnification obligation to the extent any Company Indemnified Liabilities are due to the gross negligence or willful
misconduct of the Company Indemnitees. To the extent that the foregoing undertaking by the Investor may be unenforceable for any
reason, the Investor shall make the maximum contribution to the payment and satisfaction of each of the Company Indemnified Liabilities
which is permissible under applicable law.

 

(c)           Indemnification
Procedure. Promptly after any Investor Indemnified Party or Company Indemnified Party, as applicable (the “Indemnified
Party”), has received notice of any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding
by a third Person, which such Indemnified Party believes in good faith is an indemnifiable claim under this Agreement, such Indemnified
Party shall give the indemnitor hereunder (the “Indemnifying Party”) written notice of such claim or the commencement
of such action, suit or proceeding, but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from
any liability it may have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is materially prejudiced
by such failure. Such notice shall state the nature and the basis of such claim to the extent then known. The Indemnifying Party
shall have the right to defend and settle, at its own expense and by its own counsel who shall be reasonably acceptable to the
Indemnified Party, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith and makes an
unqualified acknowledgment in writing of its obligation to provide indemnification to the Indemnified Party with respect to such
matter. If the Indemnifying Party undertakes to defend or settle, it shall promptly notify the Indemnified Party of its intention
to do so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable
respects in the defense thereof and the settlement thereof. Such cooperation shall include furnishing the Indemnifying Party with
any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Party’s possession
or control. Such cooperation of the Indemnified Party shall be at the cost of the Indemnifying Party. After the Indemnifying Party
has notified the Indemnified Party of its intention to undertake to defend or settle any such asserted liability, and for so long
as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal
expenses incurred by the Indemnified Party in connection with any defense or settlement of such asserted liability; provided,
however, that the Indemnified Party shall be entitled (a) at its expense, to participate in the defense of such asserted
liability and the negotiations of the settlement thereof and (b) if (i) the Indemnifying Party has failed to assume the defense
or employ counsel reasonably acceptable to the Indemnified Party or (ii) if the defendants in any such action include both
the Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have concluded that there may be reasonable
defenses available to the Indemnified Party that are different from or in addition to those available to the Indemnifying Party
or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying Party,
then the Indemnified Party shall have the right to select a separate counsel and to assume such legal defense and otherwise to
participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such
participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the
Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Party, unless the settlement thereof
imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of
wrongdoing or malfeasance by, the Indemnified Party.

 

    	 	23	 

     

    

 

7.11          Legends.

 

(a)           Each
certificate or instrument representing restricted Securities issuable hereunder, if any, shall be imprinted with a legend in substantially
the following form, until such time that such Securities are no longer restricted under the Securities Act:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY COMPARABLE STATE SECURITIES LAW, AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS THE SAME IS REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS
OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

 

(b)           Until
the Senior Debt (as defined in the Subordination Agreement) has been Paid in Full (as defined in the Subordination Agreement),
the Securities issuable hereunder shall be imprinted with a legend in substantially the following form:

 

THIS INSTRUMENT IS SUBJECT TO THE TERMS OF A SUBORDINATION
AGREEMENT DATED AS OF DECEMBER 28, 2017, IN FAVOR OF GUARANTY BANK AND TRUST COMPANY, A COLORADO BANK, WHICH AGREEMENT (AS AMENDED
IN ACCORDANCE WITH ITS TERMS) IS INCORPORATED HEREIN BY REFERENCE.

 

(c)           The
Company acknowledges and agrees that the Investor may from time to time pledge pursuant to a bona fide margin agreement
with a registered broker-dealer or grant a security interest in some or all of the Securities issuable hereunder to a financial
institution that is an “accredited investor” under the Securities Act and, if required under the terms of such arrangement,
the Investor may transfer pledged or secured such Securities to the pledgees or secured parties. Such a pledge or transfer would
not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall
be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Investor’s expense,
the Company will execute and deliver such reasonable documentation as a pledgee or secured party of such Securities may reasonably
request in connection with a pledge or transfer of such Securities.

 

    	 	24	 

     

    

 

(d)           Certificates
evidencing the Securities issuable hereunder shall not contain any legend (including the legend set forth in Section 7.11
hereof): (i) while a registration statement covering the resale of such security is effective under the Securities Act, or (ii)
following any sale of such Securities pursuant to Rule 144 promulgated under the Securities Act, or (iii) if such Securities are
eligible for sale, free of any restrictions or limitations, under Rule 144 promulgated under the Securities Act (including any
affiliate restrictions), or (iv) if such legend is not required under applicable requirements of the Securities Act (including
judicial interpretations and pronouncements issued by the staff of the SEC). If the conditions of any of clauses (i)-(iv) above
are satisfied, the Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent or the Investor
promptly if required by the Company’s transfer agent to effect the removal of the legend hereunder, or if requested by any
Investor, respectively. If all or any portion of the Notes, Series A Preferred Stock or Series B Preferred Stock issuable hereunder
is converted at a time when there is an effective registration statement to cover the resale of the underlying Common Stock, or
if such Securities may be sold under Rule 144 free of any restrictions or limitations, or if such legend is not otherwise required
under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff
of the SEC), then such Securities shall be issued free of all legends. The Company agrees that following such time as such legend
is no longer required under this Section 7.11(d), the Company will, no later than the earlier of (i) two Trading Days and
(ii) the number of Trading Days comprising the Standard Settlement Period (as defined below) following the delivery by an Investor
to the Company or the Company’s transfer agent of a certificate representing such Securities, as applicable, issued with
a restrictive legend (such second Trading Day, the “Legend Removal Date”), deliver or cause to be delivered
to the Investor a certificate representing such shares that is free from all restrictive and other legends. The Company may not
make any notation on its records or give instructions to the Company’s transfer agent that enlarge the restrictions on transfer
set forth in this Section 7.11(d). Certificates for the Securities subject to legend removal hereunder shall be transmitted
by the Company’s transfer agent to the Investor by crediting the account of the Investor’s prime broker with the Depository
Trust Company System as directed by the Investor (or as otherwise requested by the Investor). As used herein, “Standard
Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s
primary Trading Market with respect to the Common Stock as in effect on the date of delivery of a certificate representing the
Securities issued with a restrictive legend.

 

    	 	25	 

     

    

 

(e)           In
addition to the Investor’s other available remedies, the Company shall pay to an Investor, in cash, the greater of (i) as
partial liquidated damages and not as a penalty, for each $1,000 of Notes acquired pursuant to this Agreement (and corresponding
portion of Series A Preferred Stock) (based on the VWAP of the Common Stock on the date such Securities are submitted to the Transfer
Agent) delivered for removal of the restrictive legend, $10 per Trading Day (increasing to $20 per Trading Day five Trading Days
after such damages have begun to accrue) for each Trading Day after the Legend Removal Date until such certificate is delivered
without a legend and (ii) if the Company fails to (a) issue and deliver (or cause to be delivered) to an Investor by the Legend
Removal Date a certificate representing the Securities so delivered to the Company by the Investor that is free from all restrictive
and other legends and (b) if after the Legend Removal Date the Investor purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by the Investor of all or any portion of the number of shares of Common
Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock, that
the Investor anticipated receiving from the Company without any restrictive legend, then an amount equal to the excess of the Investor’s
total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock
so purchased (including brokerage commissions and other out-of-pocket expenses, if any) (the “Buy-In
Price”) over the product of (A) such number of shares of Common Stock that the Company was required to deliver
to the Investor by the Legend Removal Date multiplied by (B) the lowest closing sale price of the Common Stock on any Trading Day
during the period commencing on the date of the delivery by the Investor to the Company of the applicable shares of Common Stock
(as the case may be) and ending on the date of such delivery and payment under this Section 7.11(e).

 

7.12         Register.
The Company shall maintain at its principal executive offices a register for the Securities, in which the Company shall record
the name and address of the person in whose name the Securities acquired pursuant to this Agreement have been issued (including
the name and address of each transferee) and the amount of such Securities held by such person. The Company shall keep the register
open and available during business hours for inspection by the Investor or their legal representatives upon prior written notice.

 

7.13         Interpretation.
In this Agreement, except to the extent the context otherwise requires: (a) any reference in this Agreement to a Section, a Schedule
or an Exhibit is a reference to a Section thereof, a schedule thereto or an exhibit thereto, respectively, and to a subsection
thereof or a clause thereof is, unless otherwise stated, a reference to a subsection or a clause of the Section or subsection in
which the reference appears; (b) the words “hereof,” “herein,” “hereto,” “hereunder”
and the like mean and refer to this Agreement as a whole and not merely to the specific Section, subsection, paragraph or clause
in which the respective word appears; (c) the meaning of defined terms shall be equally applicable to both the singular and plural
forms of the terms defined; (d) references to agreements and other contractual instruments shall be deemed to include all subsequent
amendments and other modifications thereto; (e) references to statutes or regulations are to be construed as including all statutory
and regulatory provisions consolidating, amending or replacing the statute or regulation referred to; and (f) the captions and
headings are for convenience of reference only and shall not affect the construction of this Agreement.

 

7.14         Authorizations,
Fees and Expenses. The Company shall bear its own expenses and shall pay the reasonable expenses and legal fees of the Investor
in connection with the transactions contemplated by this Agreement. The Company shall use its best efforts to obtain all necessary
legal, contractual and shareholder authorizations for the transactions contemplated by this Agreement. If such authorization is
not obtained and the transactions contemplated herein do not close as a result thereof, the Company shall pay all reasonable expenses
and legal fees of the Investor.

 

    	 	26	 

     

    

 

7.15         Further
Assurances. Each party agrees to cooperate fully with the other parties and to execute such further instruments, documents
and agreements and to give such further written assurance as may be reasonably requested by any other party to evidence and reflect
the transactions described in this Agreement and contemplated hereby and thereby and to carry into effect the intents and purposes
of this Agreement.

 

7.16         Reservation
of Stock. The Company has as of the Closing Date (i) reserved from its authorized and unissued Preferred Stock a sufficient
number of shares to provide for the issuance of Series B Preferred Stock upon the conversion of the Notes acquired pursuant to
this Agreement and Series A Preferred Stock (and shares of its Common Stock for issuance on conversion of such Series B Preferred
Stock), (ii) reserved from its authorized and unissued Preferred Stock a sufficient number of shares to provide for the issuance
of Series A Preferred Stock under the terms of this Agreement, and (iii) filed the Articles of Amendment of Series A Preferred
Stock and the Articles of Amendment of Series B Preferred Stock with the Secretary of State of Colorado, amended the Governing
Documents and taken all other necessary steps to provide sufficient reserves of (A) shares of Series B Preferred Stock issuable
upon conversion of the Notes and Series A Preferred Stock issued or issuable pursuant to this Agreement and (ii) shares of Series
A Preferred Stock issuable under this Agreement.

 

7.17         Disclosures.
The Company shall provide the Investor copies of any proposed public disclosure of the Transaction Documents or the transactions
contemplated thereby for its review and comment at least 24 hours prior to its public disclosure made by the Company, whether by
means of press releases, filings with the SEC (including in a Current Report on Form 8-K) or otherwise. The Company will reasonably
consider all of the Investor’s comments to such public disclosure. The Company agrees to a make a public disclosure by means
of a press release (and filing with the SEC) announcing the transactions contemplated herein within four Business Days following
the Closing Date.

 

7.18         Entire
Agreement. This Agreement and the documents referred to herein constitute the entire agreement among the parties with respect
to the subject matter hereof and no party shall be liable or bound to any other party in any manner by any warranties, representations
or covenants except as specifically set forth herein or therein.

 

(Remainder of page intentionally left
blank; signature pages follow)

 

    	 	27	 

     

    

  

IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first above written.

 

	 	BIRNER DENTAL MANAGEMENT SERVICES, INC.,

                                                       as the Company  

	 	 	 
	 	 	 
	 	By:	    
	 	Name:	Dennis N. Genty
	 	Title:	Chief Financial Officer
	 	 	 
	 	 	 
	 	Address for notices:
	 	 
	 	Birner Dental Management Services, Inc.
	 	1777 S. Harrison Street
	 	Suite 1400
	 	Denver, Colorado 80210
	 	Attn: Chief Financial Officer
	 	Email: dgenty@perfectteeth.com
	 	 
	 	with a copy to:
	 	 
	 	Faegre Baker Daniels
	 	
        3200 Wells Fargo Center

        1700 Lincoln Street

	 	Denver, Colorado 80203
	 	Attention: Douglas R. Wright, Esq.
	 	Email: Douglas.Wright@FaegreBD.com

 

[Company Signature Page to Securities Purchase
Agreement]

 

     

     

    

 

 

	 	Palm Active Dental II, LP, as Investor
	 	 	 
	 	 	 
	 	By: 	 
	 	Name: 	 
	 	Title:	 

 

 

Name and Address of Investor:

 

Palm Active Dental II, LP

c/o Palm Management (US) LLC

19 West Elm Street

Greenwich, CT 06830

Attn: Craig Connors

Email: cconnors@palmventures.com

 

	with a copy to:
	
         

        Thompson Hine LLP

	3900 Key Center
	
        127 Public Square

        Cleveland, Ohio 44114-1291

	Attention: Derek D. Bork, Esq.
	Email: Derek.Bork@ThompsonHine.com

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