Document:

Exhibit 10.1

EXECUTION VERSION

 

 

FIRST AMENDMENT TO AMENDED AND RESTATED
CREDIT AGREEMENT

 

This FIRST AMENDMENT
TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is dated as of December 31, 2020, and is entered
into by and among (a) UFP Technologies, Inc., as borrower under the Credit Agreement described below (the “Borrower”),
(b) Moulded Fibre Technology, Inc., Simco Industries, Inc., Dielectrics, Inc., UFP Realty, LLC, UFPT MA, LLC, UFP CO, LLC, UFP
FL, LLC, UFP TX, LLC, UFP MI, LLC and UFP IA, LLC (each, individually a “Guarantor” and, collectively, “Guarantors”),
and (c) Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”)
and as sole lender (in such capacity, the “Sole Lender”) under the Credit Agreement referenced below.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower,
Guarantors, Administrative Agent and the Sole Lender are parties to that certain Amended and Restated Credit Agreement, as amended
by that certain Consent, Waiver and Joinder Agreement dated as of April 13, 2020, among the Borrower, Guarantors, Administrative
Agent and the Sole Lender (as previously amended and as the same may be further amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”);

 

WHEREAS, capitalized
terms not otherwise defined herein have the definitions provided therefor in the Credit Agreement;

 

WHEREAS, the Borrower
and Guarantors have requested that Administrative Agent and Sole Lender amend the Credit Agreement to, among other things, (a)
extend the Maturity Date and (b) amend certain other provisions therein, all as more fully set forth herein; and

 

WHEREAS, subject to the
terms and conditions set forth herein, Administrative Agent and Sole Lender are willing to so amend the Credit Agreement to accommodate
the requests of Borrower and Guarantors.

 

NOW THEREFORE, in consideration
of the mutual conditions and agreements set forth in ‎the Credit Agreement and this Amendment, and other good and valuable
consideration, the receipt ‎and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows‎:

 

1.         
Amendments to Credit Agreement. Effective as of the date on which each of the conditions set forth in Section 2 hereof
are satisfied in full (the “First Amendment Effective Date”), the Credit Agreement is hereby amended as follows:

 

(a)        
Amendment to Section 1.01 to Add New Defined Terms. Section 1.01 of the Credit Agreement is hereby amended by inserting
the following new defined terms in appropriate alphabetical order:

 

‎“Affected
Financial Institution” means (a) any EEA Financial Institution or (b) any ‎UK Financial Institution. ‎

 

“Beneficial
Ownership Certification” means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation.

 

“Beneficial
Ownership Regulation” means 31 C.F.R. § 1010.230.

 

“BHC
Act Affiliate‎” has the meaning given such term in Section 11.22.

 

     

     

    

 

“Communication”
has the meaning given such term in Section 11.18.‎

 

‎‎“Covered
Entity” means any of the following: (a) a “covered entity” as that term is defined ‎in, and interpreted
in accordance with, 12 C.F.R. § 252.82(b); (b) a “covered bank” as that term is ‎defined in, and interpreted
in accordance with, 12 C.F.R. § 47.3(b); or (c) a “covered FSI” as that ‎term is defined in, and interpreted
in accordance with, 12 C.F.R. § 382.2(b).‎

 

“Covered
Party” has the meaning given such term in Section 11.22.

 

“Default
Right” has the meaning given such term in Section 11.22.

 

“Electronic
Copy” has the meaning given such term in Section 11.18.

 

“First
Amendment Effective Date” has the meaning given such term in that certain First Amendment to Credit Agreement dated as
of December 31, 2020, among the Loan Parties, Lenders and Administrative Agent.

 

“ISDA
Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives ‎Association,
Inc. or any successor thereto, as amended or supplemented from time to time, or any ‎successor definitional booklet for interest
rate derivatives published from time to time by the ‎International Swaps and Derivatives Association, Inc. or such successor
thereto‎.

 

“LIBOR
Replacement Date” has the meaning given such term in Section 3.03(c).

 

“LIBOR
Screen Rate” means the LIBOR quote on the applicable screen page that Administrative ‎Agent designates to determine
LIBOR (or such other commercially available source ‎providing such quotations as designated by Administrative Agent from
time to time).‎

 

“LIBOR
Successor Rate Conforming Changes” means, with respect to any proposed LIBOR Successor Rate, any conforming changes to
the definition of Base Rate, Interest Period, timing and frequency of determining rates and making payments of interest and other
technical, administrative or operational matters (including, for the avoidance of doubt, the definition of Business Day, timing
of borrowing requests or prepayment, conversion or continuation notices and length of lookback periods) as may be appropriate,
in the discretion of the Administrative Agent, to reflect the adoption and implementation of such LIBOR Successor Rate and to permit
the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative
Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice
for the administration of such LIBOR Successor Rate exists, in such other manner of administration as the Administrative Agent
determines is reasonably necessary in connection with the administration of this Agreement and any other Loan Document).

 

“Pre-Adjustment
Successor Rate” has the meaning given such term in Section 3.03(c).

 

‎“QFC”
has the meaning assigned to the term “qualified financial contract” in, and shall be ‎interpreted in accordance
with, 12 U.S.C. 5390(c)(8)(D).‎

 

“QFC
Credit Support” has the meaning given such term in Section 11.22.

 

    	 	- 2 -	 

     

    

 

“Related
Adjustment” means, in determining any LIBOR Successor Rate, the first relevant available alternative set forth in ‎the
order below that can be determined by the Administrative Agent applicable to such LIBOR ‎Successor Rate:

 

‎(A)‎     the
spread adjustment, or method for calculating or determining such spread ‎adjustment, that has been selected or recommended
by the Relevant Governmental Body ‎for the relevant Pre-Adjustment Successor Rate (taking into account the interest period,
‎interest payment date or payment period for interest calculated and/or tenor thereto) and ‎which adjustment or method
(x) is published on an information service as selected by the ‎Administrative Agent from time to time in its reasonable discretion
or (y) solely with respect ‎to Term SOFR, if not currently published, which was previously so recommended for Term ‎SOFR
and published on an information service acceptable to the Administrative Agent; or ‎

 

‎(B)‎     the
spread adjustment that would apply (or has previously been applied) to ‎the fallback rate for a derivative transaction referencing
the ISDA Definitions (taking into ‎account the interest period, interest payment date or payment period for interest calculated
‎and/or tenor thereto).‎

 

“Relevant
Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee ‎officially
endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of ‎New York.

 

‎“Resolution
Authority” means an EEA Resolution Authority or, with respect to any ‎UK Financial Institution, a UK Resolution
Authority.‎

 

“SOFR”
with respect to any Business Day means the secured overnight financing rate published for such ‎day by the Federal Reserve
Bank of New York, as the administrator of the benchmark (or a ‎successor administrator) on the Federal Reserve Bank of New
York’s website (or any successor ‎source) at approximately 8:00 a.m. (New York City time) on the immediately succeeding
Business ‎Day and, in each case, that has been selected or recommended by the Relevant Governmental ‎Body‎.

 

“Supported
QFC” has the meaning given such term in Section 11.22.

 

‎“Term
SOFR” means the forward-looking term rate for any period that is approximately (as ‎determined by the Administrative
Agent) as long as any of the Interest Period options set forth in ‎the definition of “Interest Period” and that
is based on SOFR and that has been selected or ‎recommended by the Relevant Governmental Body, in each case as published
on an information ‎service as selected by the Administrative Agent from time to time in its reasonable discretion.‎

 

‎“UK
Financial Institution” means any BRRD Undertaking (as such term is defined ‎under the PRA Rulebook (as amended
form time to time) promulgated by the United ‎Kingdom Prudential Regulation Authority) or any person subject to IFPRU 11.6
of the FCA ‎Handbook (as amended from time to time) promulgated by the United Kingdom Financial ‎Conduct Authority,
which includes certain credit institutions and investment firms, and ‎certain affiliates of such credit institutions or investment
firms.‎

 

‎“UK
Resolution Authority” means the Bank of England or any other public ‎administrative authority having responsibility
for the resolution of any UK Financial ‎Institution.‎

 

“U.S.
Special Resolution Regimes” has the meaning given such term in Section 11.22.

 

    	 	- 3 -	 

     

    

 

‎“Write-Down
and Conversion Powers” means, (a) with respect to any EEA ‎Resolution Authority, the write-down and conversion
powers of such EEA Resolution ‎Authority from time to time under the Bail-In Legislation for the applicable EEA Member ‎Country,
which write-down and conversion powers are described in the EU Bail-In ‎Legislation Schedule, and (b) with respect to the
United Kingdom, any powers of the ‎applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify
or ‎change the form of a liability of any UK Financial Institution or any contract or instrument ‎under which that
liability arises, to convert all or part of that liability into shares, securities ‎or obligations of that person or any
other person, to provide that any such contract or ‎instrument is to have effect as if a right had been exercised under it
or to suspend any ‎obligation in respect of that liability or any of the powers under that Bail-In Legislation that ‎are
related to or ancillary to any of those powers.‎

 

(b)         
Amendment to Section 1.01 to Replace Certain Defined Terms. Section 1.01 of the Credit Agreement is hereby further
amended by amending and restating the following defined terms:

 

“Applicable
Rate” means, for any day, the rate per annum set forth below opposite the applicable Level then in effect (based on the
Consolidated Leverage Ratio), it being understood that the Applicable Rate for (a) Revolving Loans that are Eurodollar Rate Loans
shall be the percentage set forth under the column designated “Eurodollar Rate & Letter of Credit Fee Revolving Loans”,
(b) Revolving Loans that are Base Rate Loans shall be the percentage set forth under the column designated “Base Rate Revolving
Loans”, (c) the Letter of Credit Fee shall be the percentage set forth under the column designated “Eurodollar
Rate & Letter of Credit Fee Revolving Loans”, and (d) the Commitment Fee shall be the percentage set forth under
the column “Commitment Fee”:

 

	Applicable Rate
	Level
 	 Consolidated
Leverage
 Ratio 	Eurodollar Rate & 

Letter of Credit Fee	Base Rate	 Commitment

Fee
	Revolving Loans	Revolving Loans
	1	<1.50x	1.25%	0.00%	0.10%
	2	1.50x to 2.00x	1.50%	0.00%	0.20%
	3	>2.00x	1.75%	0.25%	0.25%

 

Any increase or decrease in the
Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall become effective as of the first Business Day
immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(a); provided, however,
that if a Compliance Certificate is not delivered when due in accordance with such Section, then, upon the request of the Required
Lenders, Pricing Level 3 shall apply, in each case as of the first Business Day after the date on which such Compliance Certificate
was required to have been delivered and in each case shall remain in effect until the first Business Day following the date on
which such Compliance Certificate is delivered. In addition, at all times while the Default Rate is in effect, the highest rate
set forth in each column of the Applicable Rate shall apply.

 

    	 	- 4 -	 

     

    

 

Notwithstanding anything to the
contrary contained in this definition, (i) from the period from the First Amendment Effective Date through the date of delivery
of the Compliance Certificate for the fiscal quarter ending December 31, 2020, pricing level 1 shall be in effect and (ii) the
determination of the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b). Any adjustment to the
Applicable Rate shall be applicable to all Credit Extensions then existing or subsequently made or issued.

 

“Bail-In
Action” means the exercise of any Write-Down and Conversion Powers by ‎the applicable EEA Resolution Authority
in respect of any liability of an EEA Affected ‎Financial Institution.‎

 

‎“Bail-In
Legislation” means, (a) with respect to any EEA Member Country ‎implementing Article 55 of Directive 2014/59/EU
of the European Parliament and of the ‎Council of the European Union, the implementing law, rule, regulation or requirement
for ‎such EEA Member Country from time to time which is described in the EU Bail-In ‎Legislation Schedule, and (b)
with respect to the United Kingdom, Part I of the United ‎Kingdom Banking Act 2009 (as amended from time to time) and any
other law, regulation ‎or rule applicable in the United Kingdom relating to the resolution of unsound or failing ‎banks,
investment firms or other financial institutions or their affiliates (other than through ‎liquidation, administration or
other insolvency proceedings).‎

 

“Maturity
Date” December 31, 2025; provided, however, that if such ‎date is not a Business Day, the Maturity
Date shall be the next preceding Business Day.‎

 

(c)         
Amendment to Section 1.02 of Credit Agreement. Section 1.02 of the Credit Agreement shall be amended by inserting
the following text at the end thereof:

 

‎(d)‎        Any
reference herein to a merger, transfer, consolidation, amalgamation, ‎assignment, sale, disposition or transfer, or similar
term, shall be deemed to apply to a ‎division of or by a limited liability company, or an allocation of assets to a series
of a ‎limited liability company (or the unwinding of such a division or allocation), as if it were a ‎merger, transfer,
consolidation, amalgamation, assignment, sale, disposition or transfer, or ‎similar term, as applicable, to, of or with a
separate Person. Any division of a limited ‎liability company shall constitute a separate Person hereunder (and each division
of any ‎limited liability company that is a Subsidiary, joint venture or any other like term shall also ‎constitute
such a Person or entity).‎

 

(d)         
Amendment to Section 3.03(c) of Credit Agreement. Section 3.03(c) of the Credit Agreement is hereby amended and restated
in its entirety as follows:

 

(c)         ‎Notwithstanding
anything to the contrary in this Agreement or any other Loan ‎Documents, if the Administrative Agent determines (which determination
shall be conclusive ‎absent manifest error), or the Borrower or Required Lenders notify the Administrative Agent (with, ‎in
the case of the Required Lenders, a copy to the Borrower) that the Borrower or Required Lenders ‎‎(as applicable) have
determined, that:‎

 

‎(i)‎           adequate
and reasonable means do not exist for ascertaining LIBOR for any ‎Interest Period hereunder or any other tenors of LIBOR,
including, without limitation, ‎because the LIBOR Screen Rate is not available or published on a current basis and such ‎circumstances
are unlikely to be temporary; or ‎

 

    	 	- 5 -	 

     

    

 

‎(ii)‎         the
administrator of the LIBOR Screen Rate or a Governmental Authority ‎having jurisdiction over the Administrative Agent or
such administrator has made a public ‎statement identifying a specific date after which LIBOR or the LIBOR Screen Rate shall
no ‎longer be made available, or used for determining the interest rate of loans, provided that, at ‎the time of such
statement, there is no successor administrator that is satisfactory to the ‎Administrative Agent, that will continue to provide
LIBOR after such specific date (such ‎specific date, the “Scheduled Unavailability Date”); or

 

‎(iii)‎         the
administrator of the LIBOR Screen Rate or a Governmental Authority ‎having jurisdiction over such administrator has made
a public statement announcing that all ‎Interest Periods and other tenors of LIBOR are no longer representative; or

 

‎(iv)‎         syndicated
loans currently being executed, or that include language similar ‎to that contained in this Section 3.03, are being
executed or amended (as applicable) to ‎incorporate or adopt a new benchmark interest rate to replace LIBOR;

 

then, in
the case of clauses (i)-(iii) above, on a date and time determined by the Administrative Agent (any such date, the “LIBOR
Replacement Date”), which date shall be at the end of an Interest Period or on the relevant interest payment date, as
applicable, for interest calculated and shall occur reasonably promptly upon the occurrence of any of the events or circumstances
under clauses (i), (ii) or (iii) above and, solely with respect to clause (ii) above, no later than the Scheduled Unavailability
Date, LIBOR will be replaced hereunder and under any Loan Document with, subject to the proviso below, the first available alternative
set forth in the order below for any payment period for interest calculated that can be determined by the Administrative Agent,
in each case, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document
(the “LIBOR Successor Rate”; and any such rate before giving effect to the Related Adjustment, the “Pre-Adjustment
Successor Rate”): ‎

 

and in the case of clause (iv)
above, the Borrower and Administrative Agent may amend this Agreement solely for the purpose of replacing LIBOR under this Agreement
and under any other Loan Document in accordance with the definition of “LIBOR Successor Rate” and such amendment will
become effective at 5:00 p.m., on the fifth Business Day after the Administrative Agent shall have notified all Lenders and the
Borrower of the occurrence of the circumstances described in clause (iv) above unless, prior to such time, Lenders comprising the
Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders object to the implementation
of a LIBOR Successor Rate pursuant to such clause;

 

provided that,
if the Administrative Agent determines that Term SOFR has become available, is administratively feasible for the Administrative
Agent and would have been identified as the Pre-Adjustment Successor Rate in accordance with the foregoing if it had been so available
at the time that the LIBOR Successor Rate then in effect was so identified, and the Administrative Agent notifies the Borrower
and each Lender of such availability, then from and after the beginning of the Interest Period, relevant interest payment date
or payment period for interest calculated, in each case, commencing no less than thirty (30) days after the date of such notice,
the Pre-Adjustment Successor Rate shall be Term SOFR and the LIBOR Successor Rate shall be Term SOFR plus the relevant Related
Adjustment.

 

The Administrative
Agent will promptly (in one or more notices) notify the Borrower and ‎each Lender of (x) any occurrence of any of the events,
periods or circumstances under clauses (i) ‎through (iii) above, (y) a LIBOR Replacement Date and (z) the LIBOR Successor
Rate.‎

 

    	 	- 6 -	 

     

    

 

Any LIBOR
Successor Rate shall be applied in a manner consistent with market practice; provided ‎that to the extent such market practice
is not administratively feasible for the Administrative Agent, ‎such LIBOR Successor Rate shall be applied in a manner as
otherwise reasonably determined by ‎the Administrative Agent.‎

 

Notwithstanding
anything else herein, if at any time any LIBOR Successor Rate as so determined would otherwise be less than 0%, the LIBOR Successor
Rate will be deemed to be 0% for the purposes of this Agreement and the other Loan Documents.

 

In connection
with the implementation of a LIBOR Successor Rate, the Administrative Agent will ‎have the right to make LIBOR Successor
Rate Conforming Changes from time to time and, ‎notwithstanding anything to the contrary herein or in any other Loan Document,
any amendments ‎implementing such LIBOR Successor Rate Conforming Changes will become effective without any ‎further
action or consent of any other party to this Agreement; provided that, with respect to any ‎such amendment effected, the
Administrative Agent shall post each such amendment implementing ‎such LIBOR Successor Rate Conforming Changes to the Borrower
and the Lenders reasonably ‎promptly after such amendment becomes effective.‎

 

If the events
or circumstances of the type described in 3.03(c)(i)-(iii) have occurred with ‎respect to the LIBOR Successor Rate then in
effect, then the successor rate thereto shall be ‎determined in accordance with the definition of “LIBOR Successor
Rate.”‎

 

(e)         
Amendment to Section 3.03 of Credit Agreement. Section 3.03 of the Credit Agreement is hereby amended by inserting
the following text to appear at the end thereof:

 

(d)         Notwithstanding
anything to the contrary herein, (i) after any such determination by ‎the Administrative Agent or receipt by the Administrative
Agent of any such notice described under ‎Section 3.03(c)(i)-(iii), as applicable, if the Administrative Agent determines
that none of the ‎LIBOR Successor Rates is available on or prior to the LIBOR Replacement Date, (ii) if the events or ‎circumstances
described in Section 3.03(c)(iv) have occurred but none of the LIBOR Successor ‎Rates is available, or (iii) if the events
or circumstances of the type described in Section 3.03(c)(i)-‎‎(iii) have occurred with respect to the LIBOR Successor
Rate then in effect and the Administrative ‎Agent determines that none of the LIBOR Successor Rates is available, then in
each case, the ‎Administrative Agent and the Borrower may amend this Agreement solely for the purpose of ‎replacing
LIBOR or any then current LIBOR Successor Rate in accordance with this Section 3.03 at ‎the end of any Interest Period, relevant
interest payment date or payment period for interest ‎calculated, as applicable, with another alternate benchmark rate giving
due consideration to any ‎evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities
‎for such alternative benchmarks and, in each case, including any Related Adjustments and any ‎other mathematical or
other adjustments to such benchmark giving due consideration to any ‎evolving or then existing convention for similar U.S.
dollar denominated syndicated credit facilities ‎for such benchmarks, which adjustment or method for calculating such adjustment
shall be ‎published on an information service as selected by the Administrative Agent from time to time in its ‎reasonable
discretion and may be periodically updated. For the avoidance of doubt, any such ‎proposed rate and adjustments shall constitute
a LIBOR Successor Rate. Any such amendment shall ‎become effective at 5:00 p.m. on the fifth Business Day after the Administrative
Agent shall have ‎posted such proposed amendment to all Lenders and the Borrower unless, prior to such time, ‎Lenders
comprising the Required Lenders have delivered to the Administrative Agent written notice ‎that such Required Lenders object
to such amendment.‎

 

    	 	- 7 -	 

     

    

 

‎(e)         If,
at the end of any Interest Period, relevant interest payment date or payment ‎period for interest calculated, no LIBOR Successor
Rate has been determined in accordance with ‎clauses (c) or (d) of this Section 3.03 and the circumstances under clauses
(c)(i) or (c)(iii) above ‎exist or the Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent
‎will promptly so notify the Borrower and each Lender. Thereafter, (x) the obligation of the Lenders ‎to make or maintain
Eurodollar Rate Loans shall be suspended, (to the extent of the affected ‎Eurodollar Rate Loans, Interest Periods, interest
payment dates or payment periods), and (y) the ‎Eurodollar Rate component shall no longer be utilized in determining the
Base Rate, until the ‎LIBOR Successor Rate has been determined in accordance with clauses (c) or (d). Upon receipt of ‎such
notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or ‎continuation of Eurodollar Rate
Loans (to the extent of the affected Eurodollar Rate Loans, Interest ‎Periods, interest payment dates or payment periods)
or, failing that, will be deemed to have ‎converted such request into a request for a Borrowing of Base Rate Loans (subject
to ‎the foregoing clause (y)) in the amount specified therein. ‎

 

(f)         
Amendment to Section 5.18 of Credit Agreement. Section 5.18 of the Credit Agreement is hereby amended and restated
in its entirety as follows:

 

5.18       Sanctions
Concerns and Anti-Corruption Laws.

 

‎(a)‎         Sanctions
Concerns.‎ ‎ No Loan Party, nor any Subsidiary, nor, to the ‎knowledge of the Loan Parties and their Subsidiaries,
any director, officer, employee, agent, ‎affiliate or representative thereof, is an individual or entity that is, or is owned
or controlled ‎by one or more individuals or entities that are (i) currently the subject or target of any ‎Sanctions,
(ii) included on OFAC’s List of Specially Designated Nationals or HMT’s ‎Consolidated List of Financial Sanctions
Targets, or any similar list enforced by any other ‎relevant sanctions authority or (iii) located, organized or resident
in a Designated ‎Jurisdiction. The Borrower and its Subsidiaries have conducted their businesses in ‎compliance with
all applicable Sanctions and have instituted and maintained policies and ‎procedures designed to promote and achieve compliance
with such Sanctions.‎

 

(b)         Anti-Corruption
Laws.‎ ‎ The Loan Parties and their Subsidiaries have ‎conducted their business in compliance in all material
respects with the United States ‎Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other applicable anti-‎corruption
legislation in other jurisdictions, and have instituted and maintained policies and ‎procedures designed to promote and achieve
compliance with such laws.‎

 

(g)         
Amendment to Article V of Credit Agreement. Article V of the Credit Agreement is hereby amended by inserting the
following text to appear at the end thereof:

 

5.23       EEA
Financial Institutions. No Loan Party is an EEA Financial Institution.‎

 

5.24       Covered
Entities. No Loan Party is a Covered Entity‎.

 

5.25       Beneficial
Ownership Certification. The information included in the Beneficial Ownership Certification, if applicable, is true ‎and
correct in all respects.‎

 

(h)         
Amendment to Section 6.02 of Credit Agreement. Section 6.02 of the Credit Agreement is hereby amended by inserting
the following new clause (l) to appear immediately following the existing clause (k) thereof and immediately preceding the paragraph
beginning with “Documents required to be...”:

 

    	 	- 8 -	 

     

    

 

(l)          ‎Beneficial
Ownership. To the extent any Loan Party qualifies as a “legal ‎entity customer” under the Beneficial Ownership
Regulation, an updated Beneficial ‎Ownership Certification promptly following any change in the information provided in the
‎Beneficial Ownership Certification delivered to any Lender in relation to such Loan Party ‎that would result in a
change to the list of beneficial owners identified in such certification.‎

 

(i)         
Amendment to Section 6.08(b) of Credit Agreement. Section 6.08(b) of the Credit Agreement is hereby amended and restated
in its entirety as follows:

 

(b)      
   Conduct its business in compliance in all material respects with the United States Foreign ‎Corrupt
Practices Act of 1977, the UK Bribery Act 2010 and other applicable anti-corruption ‎legislation in other jurisdictions
and with all applicable Sanctions, and maintain policies and ‎procedures designed to promote and achieve compliance
with such laws and Sanctions.

 

(j)         
Amendment to Section 7.15 of Credit Agreement. Section 7.15 of the Credit Agreement is hereby amended and restated
in its entirety as follows:

 

7.15         Sanctions;
Anti-Corruption Laws.‎

 

(a)         Directly
or indirectly, use any Credit Extension or the proceeds of any Credit Extension, or ‎lend, contribute or otherwise make available
such Credit Extension or the proceeds of any Credit ‎Extension to any Person, to fund any activities of or business with
any Person, that, at the time of ‎such funding, is the subject of Sanctions, or in any other manner that will result in a
violation by ‎any Person (including any Person participating in the transaction, whether as Lender, Arranger, ‎Administrative
Agent, L/C Issuer, Swingline Lender, or otherwise) of Sanctions‎.‎

 

(b)         Directly
or indirectly, use any Credit Extension or the proceeds of any Credit Extension for ‎any purpose which would breach the United
States Foreign Corrupt Practices Act of 1977, the UK ‎Bribery Act 2010 and other anti-corruption legislation in other jurisdictions.‎

 

(k)         
Amendment to Section 11.18 of Credit Agreement. Section 11.18 of the Credit Agreement is hereby amended and restated
in its entirety as follows:

 

(b)         This
Agreement and any document, amendment, approval, consent, information, notice, certificate, request, statement, disclosure or authorization
related to this Agreement (each a “Communication”), including Communications required to be in writing, may
be in the form of an Electronic Record and may be executed using Electronic Signatures. Each of the Loan Parties agrees that any
Electronic Signature on or associated with any Communication shall be valid and binding on each of the Loan Parties to the same
extent as a manual, original signature, and that any Communication entered into by Electronic Signature, will constitute the legal,
valid and binding obligation of each of the Loan Parties enforceable against such in accordance with the terms thereof to the same
extent as if a manually executed original signature was delivered.   Any Communication may be executed in as many counterparts
as necessary or convenient, including both paper and electronic counterparts, but all such counterparts are one and the same Communication. 
For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Administrative
Agent and each of the Lenders of a manually signed paper Communication which has been converted into electronic form (such as scanned
into PDF format), or an electronically signed Communication converted into another format, for transmission, delivery and/or retention.
The Administrative Agent and each of the Lenders may, at its option, create one or more copies of any Communication in the form
of an imaged Electronic Record (“Electronic Copy”), which shall be deemed created in the ordinary course of
the such Person’s business, and destroy the original paper document.  All Communications in the form of an Electronic
Record, including an Electronic Copy, shall be considered an original for all purposes, and shall have the same legal effect, validity
and enforceability as a paper record. Notwithstanding anything contained herein to the contrary, the Administrative Agent is under
no obligation to accept an Electronic Signature in any form or in any format unless expressly agreed to by the Administrative Agent
pursuant to procedures approved by it; provided, further, without limiting the foregoing, (a) to the extent the Administrative
Agent has agreed to accept such Electronic Signature, the Administrative Agent and each of the Lenders shall be entitled to rely
on any such Electronic Signature purportedly given by or on behalf of any Loan Party without further verification and (b) upon
the request of the Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by such manually executed
counterpart.  For purposes hereof, “Electronic Record” and “Electronic Signature” shall
have the meanings assigned to them, respectively, by 15 USC §7006, as it may be amended from time to time.

 

    	 	- 9 -	 

     

    

 

(l)         
Amendment to Section 11.20 of Credit Agreement. Section 11.20 of the Credit ‎Agreement is hereby amended and
restated in its entirety as follows:‎

 

11.20       Acknowledgement
and Consent to Bail-In of Affected Financial Institutions.‎ Notwithstanding anything to the contrary in any Loan
Document or in any other agreement, ‎arrangement or understanding among any such parties, each party hereto acknowledges
that ‎any liability of any Lender that is an Affected Financial Institution arising under any ‎Loan Document, to the
extent such liability is unsecured, may be subject to the write-down ‎and conversion powers of the applicable Resolution
Authority and agrees and ‎consents to, and acknowledges and agrees to be bound by:‎

 

(a)  
       ‎the application of any Write-Down and Conversion Powers by the applicable Resolution
Authority to any such liabilities arising hereunder ‎which may be payable to it by any Lender that is an Affected
Financial ‎Institution; and

 

(b)         ‎the
effects of any Bail-in Action on any such liability, including, if ‎applicable:‎

 

‎(i)           a
reduction in full or in part or cancellation of any such liability;‎

 

‎(ii)          a
conversion of all, or a portion of, such liability into shares or other ‎instruments of ownership in such Affected Financial
Institution, its parent ‎undertaking, or a bridge institution that may be issued to it or otherwise conferred ‎on it,
and that such shares or other instruments of ownership will be accepted by it ‎in lieu of any rights with respect to any
such liability under this Agreement or any ‎other Loan Document; or

 

‎(iii)         the
variation of the terms of such liability in connection with the ‎exercise of the write-down and conversion powers of the
applicable ‎Resolution Authority.‎

 

(m)         
Amendment to Article XI of Credit Agreement. Article XI of the Credit Agreement shall be amended by inserting the
following text at the end thereof:

 

    	 	- 10 -	 

     

    

 

11.22       Acknowledgment
Regarding Any Supported QFCs.

 

To the extent
that the Loan Documents provide support, through a guarantee or otherwise, ‎for any Swap Contract or any other agreement
or instrument that is a QFC (such support, “QFC ‎Credit Support”, and each such QFC, a “Supported
QFC”), the parties acknowledge and agree as ‎follows with respect to the resolution power of the Federal Deposit
Insurance Corporation under the ‎Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer
‎Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution ‎Regimes”)
in respect of such Supported QFC and QFC Credit Support (with the provisions below ‎applicable notwithstanding that the Loan
Documents and any Supported QFC may in fact be stated ‎to be governed by the laws of the State of New York and/or of the
United States or any other state ‎of the United States): In the event a Covered Entity that is party to a Supported QFC (each,
a ‎‎“Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the
‎transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and ‎obligation in or
under such Supported QFC and such QFC Credit Support, and any rights in ‎property securing such Supported QFC or such QFC
Credit Support) from such Covered Party will ‎be effective to the same extent as the transfer would be effective under the
U.S. Special Resolution ‎Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and ‎rights
in property) were governed by the laws of the United States or a state of the United States. In ‎the event a Covered Party
or a BHC Act Affiliate of a Covered Party becomes subject to a ‎proceeding under a U.S. Special Resolution Regime, Default
Rights under the Loan Documents that ‎might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised
‎against such Covered Party are permitted to be exercised to no greater extent than such Default ‎Rights could be exercised
under the U.S. Special Resolution Regime if the Supported QFC and the ‎Loan Documents were governed by the laws of the United
States or a state of the United States. ‎ Without limitation of the foregoing, it is understood and agreed that rights and
remedies of the ‎parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party ‎with
respect to a Supported QFC or any QFC Credit Support.‎ As used in this Section, (a) “BHC Act Affiliate” means
an “affiliate,” as defined in ‎and ‎interpreted in accordance with 12 U.S.C. §1841(k); (b) “Default
Right” has the ‎meaning assigned in ‎and interpreted in accordance with 12 C.F.R. §§252.81, 47.2 or
‎‎382.1, as applicable; and (c) “QFC” ‎means a “qualified financial contract,” as ‎defined
in and interpreted in accordance with 12 U.S.C. ‎‎§5390(c)(8)(D).‎

 

(n)         
Amendment and Restatement of Schedules to Credit Agreement. The Schedules to the Credit Agreement attached thereto
are hereby amended and restated in their entirety by replacing them with the Schedules attached as Exhibit A hereto.

 

2.          
Conditions to Effectiveness. This Amendment become effective upon the date on which
Agent shall have received each of the following:

 

(a)         
The Administrative Agent shall have received a fully executed copy of this Amendment executed by each Loan Party, the Administrative
Agent and the Sole Lender;

 

(b)         
a counterpart of this Amendment executed by a duly authorized officer of each party hereto;‎

 

(c)         
a certificate executed by the Secretary or another Responsible Officer of each Loan Party (or of the sole member (the “Sole
Member”) of such Loan Party), certifying as to the Organization Documents of such Loan Party, a certificate of good standing
of such Loan Party in its jurisdiction of organization, the resolutions of the governing body of such Loan Party authorizing the
execution of such Loan Party of this Amendment, and the incumbency (including specimen signatures) of the Responsible Officers
of such Loan Party (or of the Sole Member as applicable); and

 

    	 	- 11 -	 

     

    

 

(d)         
an opinion of counsel for the Loan Parties, dated as of the First Amendment Effective Date and addressed to the ‎Administrative
Agent and the Sole Lender, in form and substance acceptable to the Administrative ‎Agent‎.

 

3.          
Fees and Expenses. The Loan Parties agree to pay all reasonable expenses, including
reasonable legal fees and disbursements incurred by Administrative Agent in connection with this Amendment and the transactions
contemplated hereby.

 

4.          
Acknowledgment and Payment in Full and Termination of Term Facility. Each Loan Party,
Administrative Agent and the Sole Lender acknowledges and agrees that the Term Facility has been paid in full and terminated and
no further credit extensions shall be made under the Term Facility.

 

5.          
Acknowledgment and Reaffirmation of Credit Agreement and other Loan Documents. Each
Loan Party hereby ratifies, affirms, acknowledges and agrees that the Credit Agreement and the other Loan Documents to which it
is a party represent the valid and enforceable obligations of such Loan Party.

 

6.          
Representations and Warranties. To induce Administrative Agent and the Sole Lender
to enter into this Amendment, each of the Loan Parties hereby represents and warrants to the Administrative Agent and the Sole
Lender that:

 

(a)           the execution, delivery and performance by the Loan Parties of this Amendment and all other documents, instruments and agreements
executed and delivered in connection herewith or therewith (i) have been duly authorized by all necessary action on the part of
the Loan Parties (including any necessary shareholder consents or approvals), (ii) do not violate, conflict with or result in a
default under and will not violate or conflict with or result in a default under any applicable law or regulation, any term or
provision of the Organization Documents of any Loan Party or any term or provision of any material indenture, agreement or other
instrument binding on any Loan Party or any of its assets, and (iii) do not require the consent of any Person which has not been
obtained;

 

(b)         
both immediately before and after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing;
and

 

(c)         
all representations and warranties of the Loan Parties in the Credit Agreement and the other Loan Documents are true and
correct in all material respects on and as of the date hereof as if made on such date (except to the extent that such representations
and warranties expressly relate to or are stated to have been made as of an earlier date, in which case, such representations and
warranties shall be true and correct in all material respects as of such earlier date).

 

7.         
Solvency. Each Loan Party hereby represents and warrants that, as of the First Amendment Effective Date, after giving
effect to this Amendment and the transactions contemplated hereby, such Loan Party is, individually and together with its Subsidiaries
on a Consolidated basis, ‎Solvent‎.

 

8.          
Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same
agreement.  Delivery of an executed counterpart of this Amendment by telecopier, pdf or electronic signature, in a manner
acceptable to the Administrative Agent, shall be equally as effective as delivery of an original executed counterpart of this Amendment. 
Any party delivering an executed counterpart of this Amendment by telecopier, pdf or electronic signature shall also deliver an
original executed counterpart of this Amendment, but the failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Amendment.

 

    	 	- 12 -	 

     

    

 

9.          
No Modification. Except as otherwise expressly set forth herein, nothing herein shall be deemed to constitute a consent
to the modification or waiver of any term or condition of the Credit Agreement, all of which terms and provisions are hereby ratified
and confirmed and shall continue in full force and effect.

 

10.        
Governing Law. This Amendment shall be governed by, and construed in accordance with,
the law of the Commonwealth of Massachusetts applicable to contracts made and to be performed in the Commonwealth of Massachusetts.

 

11.         Release.
In consideration of the agreements of the Administrative Agent and the Sole Lender contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, each Loan Party, on behalf of itself and each of its
respective successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises
and forever discharges the Administrative Agent and the Sole Lender and each of their successors and assigns, and each of their
present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees,
agents and other representatives (the Administrative Agent and the Sole Lender and all such other Persons being hereinafter referred
to collectively as the “Releasees” and individually as a “Releasee”), of and from all demands,
actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings,
damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually,
a “Claim” and collectively, “Claims”) of every kind and nature, known or unknown, suspected
or unsuspected, at law or in equity, which such Loan Party or any of its respective successors, assigns, or other legal representatives
may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance,
action, cause or thing whatsoever which arises at any time prior to the date of this Amendment, including, without limitation,
for or on account of, or in relation to, or in any way in connection with this Amendment or any of the other Loan Documents or
transactions hereunder or thereunder.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	- 13 -	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be executed as a sealed instrument by their respective officers thereunto duly authorized,
as of the date first above written.

 

	 	BORROWER:	 
	 	 	 	 
	 	UFP TECHNOLOGIES, INC.	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name: Ronald J. Lataille	 
	 	Title:   Treasurer 	 
	 	 	 	 
	 	GUARANTORS:	 
	 	 	 	 
	 	Moulded Fibre Technology, Inc.
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name: Ronald J. Lataille  	 
	 	Title:   Treasurer 	 
	 	 	 
	 	SIMCO INDUSTRIES, INC.	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name: Ronald J. Lataille	 
	 	Title:   Treasurer	 
	 	 	 
	 	DIELECTRICS, INC	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name:  Ronald J. Lataille	 
	 	Title:    Treasurer	 
	 	 	 	 

 

     

     

    

 

	 	UFP REALTY, LLC	 
	 	 	 	 
	 	By its sole member, UFP Technologies, Inc.
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name: Ronald J. Lataille  	 
	 	Title:   Treasurer	 
	 	 	 	 
	 	UFPT MA, LLC	 
	 	 	 	 
	 	By its sole member, UFP Realty, LLC
	 	By its sole member, UFP Technologies, Inc.
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name: Ronald J. Lataille  	 
	 	Title:   Treasurer	 
	 	 	 	 
	 	UFP CO, LLC	 
	 	 	 	 
	 	By its sole member, UFP Realty, LLC
	 	By its sole member, UFP Technologies, Inc.
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name: Ronald J. Lataille  	 
	 	Title:   Treasurer	 
	 	 	 	 
	 	UFP FL, LLC	 
	 	 	 	 
	 	By its sole member, UFP Realty, LLC
	 	By its sole member, UFP Technologies, Inc.
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name: Ronald J. Lataille	 
	 	Title:   Treasurer	 
	 	 	 	 
	 	UFP TX, LLC	 
	 	 	 	 
	 	By its sole member, UFP Realty, LLC
	 	By its sole member, UFP Technologies, Inc.
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name: Ronald J. Lataille	 
	 	Title:   Treasurer	 

 

     

     

    

 

	 	UFP MI, LLC	 
	 	 	 	 
	 	By its sole member, UFP Realty, LLC
	 	By its sole member, UFP Technologies, Inc.
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name: Ronald J. Lataille	 
	 	Title:   Treasurer	 
	 	 	 	 
	 	UFP IA, LLC	 
	 	 	 	 
	 	By its sole member, UFP Realty, LLC
	 	By its sole member, UFP Technologies, Inc.
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Ronald J. Lataille	 
	 	Name: Ronald J. Lataille	 
	 	Title:   Treasurer	 
	 	 	 	 
	 	 	 	 

 

 

 

 

     

     

    

 

	 	ADMINISTRATIVE AGENT AND SOLE LENDER:
	 	 	 	 
	 	BANK OF AMERICA, N.A.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Molly Kropp 	 
	 	Name:  Molly Kropp	 
	 	Title:   SVP	 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT A

 

Updated Schedules

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

SCHEDULE 1.01(a)

 

Certain Addresses for Notices

 

	
        Borrower:

         

        UFP Technologies, Inc.

        100 Hale Street

        Newburyport, MA 01950

        Attn: Ron Lataille

        Phone: (978) 234-0926

        Email: rlataille@ufpt.com

        Website Address: http://www.ufpt.com

         

         

        With a Copy to:

         

        Ruberto, Israel & Weiner, P.C.

        255 State Street, 7th Floor

        Boston, MA 02109

        Attn: Michael D. Rosen

        Phone: (617) 742-4200

        Email:  mdr@riw.com

        Fax: (617) 742-2355

        Website:  www.riw.com

         
	
        Administrative Agent:

         

        Bank of America, N.A.

        MA5-100-08-13

        100 Federal Street

        Boston, MA 02110

        Attn: Molly Kropp, SVP

        Phone: (617) 434-0176

        Email: molly.m.kropp@bofa.com

        Fax Number: (617) 434-1226

         

         

        Notices for Credit Management &
        Administrative:

         

        Bank of America, N.A.

        MA5-100-08-13

        100 Federal Street

        Boston, MA  02110

        Attn: Renee T. Turczyn, AVP

        Sr. Credit Support Associate

        Phone: (617) 434-1563

        Email: renee.t.turczyn@baml.com

        Fax Number: (617) 310-2182

         

	 
	
        LC Issuer:

         

        Bank of America, N.A.

        MA5-100-08-13

        100 Federal Street

        Boston, MA  02110

        Attn: Renee T. Turczyn, AVP

        Sr. Credit Support Associate

        Phone: (617) 434-1563

        Email: renee.t.turczyn@baml.com

        Fax Number: (617) 310-2182

         

         

         
	
        Swingline Lender:

         

        Bank of America, N.A.

        100 Federal Street

        Boston, MA 02110

         

         

         

         

 

 

     

     

    

 

SCHEDULE 1.01(b)

 

Initial Commitments and Applicable Percentages

 

	Lender	Revolving

    Commitment	Applicable
        Percentage

        (Revolving
        Loans)

	Bank of America, N.A.	$50,000,000	100%
	Total:	$50,000,000	100%

 

 

 

 

 

 

 

 

 

 

     

     

    

 

SCHEDULE 1.01(c)

 

Responsible Officers

 

	Loan
    Party	Authorized
    Officers
	  UFP Technologies,
         Inc.	
        R. Jeffrey Bailly, Chairman, Chief Executive Officer and President

         

        Ronald J. Lataille, Chief Financial Officer, Treasurer,
and Secretary

	  Moulded Fibre Technology,
         Inc.	
        R. Jeffrey Bailly, President

         

        Ronald J. Lataille, Treasurer and Assistant Secretary

	  Simco Industries,
         Inc.	
        R. Jeffrey Bailly, President

         

        Ronald J. Lataille, Treasurer and Secretary

	  Simco Automotive Trim,
         Inc.	
        R. Jeffrey Bailly, President

         

        Ronald J. Lataille, Treasurer and Secretary

	DIELECTRICS,
         INC	
        R. Jeffrey Bailly, President

         

        Ronald J. Lataille, Treasurer and Secretary

	UFP
         REALTY, LLC	
        R. Jeffrey Bailly, President of UFP Technologies, Inc.,
its sole member

         

        Ronald J. Lataille, Treasurer and Secretary of UFP
Technologies, Inc., its sole member

	UFPT
         MA, LLC	
        R. Jeffrey Bailly, President of UFP Technologies, Inc.,
as sole member of UFP Realty, LLC, its sole member

         

        Ronald J. Lataille, Treasurer and Secretary of UFP
Technologies, Inc., as sole member of UFP Realty, LLC, its sole member

	UFP
         CO, LLC	
        R. Jeffrey Bailly, President of UFP Technologies, Inc., as sole
        member of UFP Realty, LLC, its sole member

         

        Ronald J. Lataille, Treasurer and Secretary of UFP
Technologies, Inc., as sole member of UFP Realty, LLC, its sole member

	UFP
         FL, LLC	
        R. Jeffrey Bailly, President of UFP Technologies, Inc., as sole
        member of UFP Realty, LLC, its sole member

         

        Ronald J. Lataille, Treasurer and Secretary of UFP
Technologies, Inc., as sole member of UFP Realty, LLC, its sole member

 

     

     

    

 

	Loan
    Party	Authorized
    Officers
	UFP
         TX, LLC	
        R. Jeffrey Bailly, President of UFP Technologies, Inc., as sole
        member of UFP Realty, LLC, its sole member

         

        Ronald J. Lataille, Treasurer and Secretary of UFP
Technologies, Inc., as sole member of UFP Realty, LLC, its sole member

	UFP
         MI, LLC	
        R. Jeffrey Bailly, President of UFP Technologies, Inc., as sole
        member of UFP Realty, LLC, its sole member

         

        Ronald J. Lataille, Treasurer and Secretary of UFP
Technologies, Inc., as sole member of UFP Realty, LLC, its sole member

	UFP
         IA, LLC	
        R. Jeffrey Bailly, President of UFP Technologies, Inc., as sole
        member of UFP Realty, LLC, its sole member

         

        Ronald J. Lataille, Treasurer and Secretary of UFP
Technologies, Inc., as sole member of UFP Realty, LLC, its sole member

 

 

 

 

 

 

 

 

     

     

    

 

SCHEDULE 5.10

 

Insurance

 

	Loan
    Party	Carrier	Policy
    Number	Expiration
    Date	Type	Amount	Deductibles
	UFP
    Technologies, Inc. and all subsidiaries	Travelers Casualty
    and Surety Company of America	105533372	1/1/2023	Executive Risk Package
    (Crime, Fiduciary, Kidnap & Ransom)	Crime
        ($500k Employee Dishonesty, Forgery, Theft, Computer Fraud, Funds Transfer; $1m ERISA)

         

        Employment
        Practice Liability - $2m

         

        Fiduciary
        - $1m / claim

         

        Kidnap
& Ransom - $1m/event
	Crime
        ($15k Employee Dishonesty, Forgery, Theft; $10k Computer Fraud, Funds Transfer; $0 ERISA)

        

        EPL $150K

         

        
        Fiduciary $250K

         

        
-

	UFP
    Technologies, Inc. and all subsidiaries	Travelers Casualty
    and Surety Company of America	105533373	1/1/2022	D&O Liability	$10m/Claim
    & Aggregate	-

        $0 Part A

         

        $1M
Parts B and C

	UFP
    Technologies, Inc. and all subsidiaries	Twin City Fire Insurance	02DA034526320	1/1/2022	D&O Excess	$5m	Same
    as primary coverage
	UFP
    Technologies, Inc. and all subsidiaries	Westchester Fire Insurance	G71774594001	1/1/2022	D&O Excess	$5M
    Part A only	Same
    as primary coverage
	UFP
    Technologies, Inc. and all subsidiaries	Travelers	6300N666672	1/1/2022	Property (includes
    Business Interruption)	Various	Various
	UFP
    Technologies, Inc. and all subsidiaries	Travelers	6309H435209	1/1/2022	Commercial General
    Liability	$1m
        / Occurrence

         

        $2m
/ Aggregate
	$0

         

        -

 

     

     

    

 

	Loan
    Party	Carrier	Policy
    Number	Expiration
    Date	Type	Amount	Deductibles
	UFP
    Technologies, Inc. and subsidiaries	Qualitas Compania de
    Seguros, S. A. B. de C.V.	0003444296	1/11/2021	Business Auto (Mexico
    – one vehicle only)	$100k	$1K
	UFP
    Technologies, Inc. and subsidiaries	Travelers	BAOP029016	1/1/2022	Business Auto	$1m
    / Combined Single Limit	$1k
	UFP
    Technologies, Inc. and all subsidiaries	Travelers	UB1L942616	1/1/2022	Workers Compensation	$1m
    (ER Liability each Accident)	$150k
	UFP
    Technologies, Inc. and subsidiaries	Chubb	79847354	1/1/2022	Umbrella	$10m/Occurrence
    and Aggregate	$0
	UFP
    Technologies, Inc.	Federal Insurance Company	00068852	1/1/2022	Open Cargo (International
    Shipping)	$200k/conveyance	$1k
	UFP
    Technologies, Inc. and all subsidiaries	Travelers	6309H435209	1/1/2022	Employee Benefits	$1m
        each occurrence

         

        $2m
aggregate
	$0
	UFP
    Technologies, Inc. and all subsidiaries	North American Capacity
    Insurance	C4LPY017725	1/1/2022	Cyber Liability	$2m	$1k
	UFP
    Technologies, Inc. and all subsidiaries	Federal Insurance Company	06621923	1/1/2022	Domestic Transit	$200k	$1k
	UFP
    Technologies, Inc. and all subsidiaries	Travelers	2PP16N1983A21	1/1/2022	Medical Products Liability	$10m	$25k
	UFP
    Technologies, Inc. and all subsidiaries	Great American E&S
    Insurance	X52260002	1/1/2022	Excess Medical Products
    Liability	$5m	$0
	UFP
    Technologies, Inc. and all subsidiaries	Travelers	2GC16N2092021	1/1/2022	Foreign Liability	Various	Various

 

     

     

    

 

	Loan
    Party	Carrier	Policy
    Number	Expiration
    Date	Type	Amount	Deductibles
	UFP
    Technologies, Inc. and all subsidiaries	Westchester Surplus
    Lines	G71826855001	1/1/2022	Product Recall Liability	$1m	$50k
	UFP
    Technologies, Inc. and all subsidiaries	Continental Casualty
    Company	6052272679	1/1/2022	Professinal Services
    Liability	$3m	$50k
	UFP
    Technologies, Inc. and all subsidiaries	Lloyds	EQP00175001	1/1/2022	Earthquake CA location	$4m	$25k
	UFP
    Technologies, Inc. and all subsidiaries	James River Insurance
    Co.	00911071	1/1/2022	Excess Flood and Earthquake	$10m

    in excess of $25m	$25k
	UFP
    Technologies, Inc. and all subsidiaries	Western World Insurance	BRB0009625	1/1/2022	Flood Iowa location	$10m	$25k
	UFP
    Technologies, Inc. and all subsidiaries	Voyager Indemnity Insurance	CFS
    0002184	1/1/2022	Excess Flood Iowa location	$500k	$5k
	UFP
    Technologies, Inc. and all subsidiaries	American Bankers Insurance	24059120852020	1/1/2022	Flood Florida location	$500k	$1.25k
	UFP
    Technologies, Inc. and all subsidiaries	Lloyds	AFR19XF1000072900	1/1/2022	Excess Flood Florida
    location	$1m	$0

 

 

 

     

     

    

 

SCHEDULE 5.20(a)

 

Subsidiaries, Joint Ventures, Partnerships
and Other Equity Investments

 

	Issuer	Owner	Total
    Number of Shares Outstanding	Number
    of Shares Owned by Loan Party	Certificate
    Number(s)	Percentage
    of Owned Shares by Loan Party	Class/Nature

         

        (Voting,
Non-Voting, Preferred, Etc.)

	Molded Fibre Technology, Inc.	UFP Technologies, Inc. (100%)	1,000	1,000	 	100%	Voting Common Stock
	Simco Industries, Inc.	UFP Technologies, Inc. (100%)	750	750	 	100%	Voting Common Stock
	DIELECTRICS, INC	UFP Technologies, Inc. (100%)	3,600	3,600	 	100%	 
	UFP REALTY, LLC	UFP Technologies, Inc. (100%)	N/A	N/A	 	N/A	N/A
	UFPT MA, LLC	UFP Realty, LLC, (100%)	N/A	N/A	 	N/A	N/A
	UFP CO, LLC	UFP Realty, LLC, (100%)	N/A	N/A	 	N/A	N/A
	UFP FL, LLC	UFP Realty, LLC, (100%)	N/A	N/A	 	N/A	N/A
	UFP TX, LLC	UFP Realty, LLC, (100%)	N/A	N/A	 	N/A	N/A
	UFP MI, LLC	UFP Realty, LLC, (100%)	N/A	N/A	 	N/A	N/A
	UFP IA, LLC	UFP Realty, LLC, (100%)	N/A	N/A	 	N/A	N/A

 

 

 

 

 

 

     

     

    

 

SCHEDULE 5.20(b)

 

Loan Parties

 

	Exact Legal Name of Loan Party:	UFP Technologies, Inc.
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Delaware
	Type of Organization:	Corporation
	Other jurisdictions where Qualified to do Business:	Alabama, California, Colorado, Florida, Georgia, Illinois, Massachusetts, New Jersey, North Carolina, Texas, Washington
	Address of Chief Executive Office: 	‎100 Hale Street, Newburyport, MA 01959‎
	Address of Principal Place of Business:	‎100 Hale Street, Newburyport, MA 01959‎
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	04-2314970
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	Publicly held
	Industry or Nature of Business:	Manufacturer of custom packaging, component and product solutions for the medical, automotive, aerospace & defense, industrial, electronics and consumer markets.

*to be filled out for each Loan Party

 

     

     

    

 

	Exact Legal Name of Loan Party:	Moulded Fibre Technology, Inc.
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Maine
	Type of Organization:	Corporation
	Other jurisdictions where Qualified to do Business:	Iowa, Massachusetts
	Address of Chief Executive Office: 	‎100 Hale Street, Newburyport, MA 01959‎
	Address of Principal Place of Business:	1521 Windsor Drive, Clinton, IA  52732-6611
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	04-3214337
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	100% owned by UFP Technologies, Inc.
	Industry or Nature of Business:	Manufacturer of molded fiber products

 

 

 

 

     

     

    

 

	Exact Legal Name of Loan Party:	Simco Industries, Inc.
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Michigan
	Type of Organization:	Corporation
	Other jurisdictions where Qualified to do Business:	 
	Address of Chief Executive Office: 	‎100 Hale Street, Newburyport, MA 01959‎
	Address of Principal Place of Business:	3831 Patterson Avenue, Grand Rapids, MI  49512
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	38-1674315
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	100% owned by UFP Technologies, Inc.
	Industry or Nature of Business:	Automobile component manufacturer

 

     

     

    

 

	Exact Legal Name of Loan Party:	Dielectrics, Inc.
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Massachusetts
	Type of Organization:	Corporation
	Other jurisdictions where Qualified to do Business:	 
	Address of Chief Executive Office: 	300 Burnett Road, Chicopee, MA 01020
	Address of Principal Place of Business:	300 Burnett Road, Chicopee, MA 01020
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	04-3339707
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	100% owned by UFP Technologies, Inc.
	Industry or Nature of Business:	Medical device, components, and products

 

 

     

     

    

 

	Exact Legal Name of Loan Party:	UFP Realty, LLC
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Massachusetts
	Type of Organization:	Limited liability company
	Other jurisdictions where Qualified to do Business:	 
	Address of Chief Executive Office: 	100 Hale Street, Newburyport, MA 01959
	Address of Principal Place of Business:	100 Hale Street, Newburyport, MA 01959
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	84-4101278
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	100% owned by UFP Technologies, Inc.
	Industry or Nature of Business:	Real Estate

 

 

     

     

    

 

	Exact Legal Name of Loan Party:	UFPT MA, LLC
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Massachusetts
	Type of Organization:	Limited liability company
	Other jurisdictions where Qualified to do Business:	 
	Address of Chief Executive Office: 	100 Hale Street, Newburyport, MA 01959
	Address of Principal Place of Business:	100 Hale Street, Newburyport, MA 01959
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	84-4080093
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	100% owned by UFP Realty, LLC, which is wholly owned by UFP Technologies, Inc.
	Industry or Nature of Business:	Real Estate

 

 

     

     

    

 

	Exact Legal Name of Loan Party:	UFP CO, LLC
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Colorado
	Type of Organization:	Limited liability company
	Other jurisdictions where Qualified to do Business:	 
	Address of Chief Executive Office: 	100 Hale Street, Newburyport, MA 01959
	Address of Principal Place of Business:	207 Umatilla Street, Denver, CO 80204
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	84-413189
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	100% owned by UFP Realty, LLC, which is wholly owned by UFP Technologies, Inc.
	Industry or Nature of Business:	Real Estate

 

 

     

     

    

 

	Exact Legal Name of Loan Party:	UFP FL, LLC
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Florida
	Type of Organization:	Limited liability company
	Other jurisdictions where Qualified to do Business:	 
	Address of Chief Executive Office: 	100 Hale Street, Newburyport, MA 01959
	Address of Principal Place of Business:	2175 Partin Settlement Road, Kissimmee, FL 34744
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	84-4039243
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	100% owned by UFP Realty, LLC, which is wholly owned by UFP Technologies, Inc.
	Industry or Nature of Business:	Real Estate

 

 

     

     

    

 

	Exact Legal Name of Loan Party:	UFP TX, LLC
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Texas
	Type of Organization:	Limited liability company
	Other jurisdictions where Qualified to do Business:	 
	Address of Chief Executive Office: 	100 Hale Street, Newburyport, MA 01959
	Address of Principal Place of Business:	211 E. 7th Street, Suite 620, Austin, TX 78701
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	84-4043009
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	100% owned by UFP Realty, LLC, which is wholly owned by UFP Technologies, Inc.
	Industry or Nature of Business:	Real Estate

 

     

     

    

 

	Exact Legal Name of Loan Party:	UFP MI, LLC
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Michigan
	Type of Organization:	Limited liability company
	Other jurisdictions where Qualified to do Business:	 
	Address of Chief Executive Office: 	100 Hale Street, Newburyport, MA 01959
	Address of Principal Place of Business:	3831 Patterson Avenue, Grand Rapids, MI 49512
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	84-4056586
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	100% owned by UFP Realty, LLC, which is wholly owned by UFP Technologies, Inc.
	Industry or Nature of Business:	Real Estate

 

 

     

     

    

 

	Exact Legal Name of Loan Party:	UFP IA, LLC
	Previous Legal Names within the 4 months prior to the Closing Date:	 
	Jurisdiction of Organization/Incorporation:	Iowa
	Type of Organization:	Limited liability company
	Other jurisdictions where Qualified to do Business:	 
	Address of Chief Executive Office: 	100 Hale Street, Newburyport, MA 01959
	Address of Principal Place of Business:	1521 Windsor Drive, Clinton, IA 52732
	U.S. Federal Taxpayer Identification Number, or Unique Identification Number (as applicable)	84-4072003
	Organizational Identification Number (if any):	 
	Ownership Information (e.g. publicly held, if private or partnership—identity of owners/partners):	100% owned by UFP Realty, LLC, which is wholly owned by UFP Technologies, Inc.
	Industry or Nature of Business:	Real Estate

 

 

     

     

    

 

SCHEDULE 7.01

 

Existing Liens

 

 

 

 

See UCC REPORT attached hereto

 

 

 

 

 

 

 

     

     

    

 

SCHEDULE 7.02

 

Existing Indebtedness

 

None.

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

SCHEDULE 7.03

 

Existing Investments

 

 

NoneExhibit
10.1

 

INVESTMENT
ADVISORY AND MANAGEMENT AGREEMENT

BETWEEN

RAND
CAPITAL CORPORATION

AND

RAND
CAPITAL MANAGEMENT LLC

 

Agreement
made this 31st day of December, 2020, by and between RAND CAPITAL CORPORATION, a New York corporation (the “Corporation”),
and RAND CAPITAL MANAGEMENT LLC, a Delaware limited liability company (the “Adviser”).

 

WHEREAS,
the Corporation is a closed-end investment company that has elected to be treated as a business development company under the
Investment Company Act of 1940, as amended (the “Investment Company Act”);

 

WHEREAS,
the Adviser is an investment adviser that has registered under the Investment Advisers Act of 1940, as amended (the “Advisers
Act”); and

 

WHEREAS,
the Adviser will provide investment advisory services to the Corporation.

 

NOW,
THEREFORE, in consideration of the premises and for other good and valuable consideration, the parties hereby agree as follows:

 

1.
Duties of the Adviser.

 

(a)
The Corporation hereby employs the Adviser to act as the investment adviser to the Corporation and to manage the investment and
reinvestment of the assets of the Corporation during the term of this Agreement, subject to the supervision of the Board of Directors
of the Corporation (the “Board”), for the period and upon the terms herein set forth,

 

(i)
in accordance with the investment objectives, policies and restrictions that are determined by the Corporation’s Board of
Directors from time to time and disclosed to the Adviser, including those as set forth in the reports and registration statements
that the Corporation files with the Securities and Exchange Commission (the “SEC”),

 

(ii)
in accordance with any requirements imposed by the provisions of the Investment Company Act and of any rules or regulations in
force thereunder, subject to the terms of any exemptive order applicable to the Corporation, and

 

(iii)
in accordance with all other applicable federal and state laws, rules and regulations, and the Corporation’s certificate
of incorporation and by-laws.

 

(b)
Without limiting the generality of the foregoing, the Adviser shall, during the term and subject to the provisions of this Agreement,

 

(i)
determine the composition of the portfolio of the Corporation, the nature and timing of the changes therein and the manner of
implementing such changes,

 

(ii)
identify, evaluate and negotiate the structure of the investments made by the Corporation,

 

(iii)
execute, close, service and monitor the Corporation’s investments,

 

(iv)
determine the securities and other assets that the Corporation will purchase, retain, or sell,

 

    	 

     

    

 

(v)
perform due diligence on prospective portfolio companies or investments, and

 

(vi)
provide the Corporation with such other investment advisory, research and related services as the Corporation may, from time to
time, reasonably require for the investment of its funds.

 

The
Adviser shall have the power and authority on behalf of the Corporation to effectuate its investment decisions for the Corporation,
including the execution and delivery of all documents relating to the Corporation’s investments and the placing of orders
for other purchase or sale transactions on behalf of the Corporation. In the event that the Corporation determines to incur debt
financing, the Adviser will arrange for such financing on the Corporation’s behalf, subject to the oversight and approval
of the Board. If it is necessary for the Adviser to make investments on behalf of the Corporation through a special purpose vehicle,
the Adviser shall have authority to create or arrange for the creation of such special purpose vehicle and to make such investments
through such special purpose vehicle in accordance with the Investment Company Act.

 

(c)
The Adviser hereby accepts such employment and agrees during the term hereof to render the services described herein for the compensation
provided herein.

 

(d)
Subject to the requirements of the Investment Company Act, the Adviser is hereby authorized to enter into one or more sub-advisory
agreements with other investment advisers (each, a “Sub-Adviser”) pursuant to which the Adviser may obtain the services
of the Sub-Adviser(s) to assist the Adviser in providing the investment advisory services required to be provided by the Adviser
under Sections 1(a) and 1(b) of this Agreement. Specifically, the Adviser may retain a Sub-Adviser to recommend specific securities
or other investments based upon the Corporation’s investment objectives and policies, and work, along with the Adviser,
in structuring, negotiating, arranging or effecting the acquisition or disposition of such investments and monitoring investments
on behalf of the Corporation, subject to the oversight of the Adviser and the Corporation. The Adviser, and not the Corporation,
shall be responsible for any compensation payable to any Sub-Adviser. Any sub-advisory agreement entered into by the Adviser shall
be in accordance with the requirements of the Investment Company Act and other applicable federal and state law. Nothing in this
subsection (d) will obligate the Adviser to pay any expenses that are the expenses of the Corporation under Section 2.

 

(e)
The Adviser, and any Sub-Adviser, shall for all purposes herein provided each be deemed to be an independent contractor and, except
as expressly provided or authorized herein, shall have no authority to act for or represent the Corporation in any way or otherwise
be deemed an agent of the Corporation.

 

(f)
The Adviser shall keep and preserve for the period required by the Investment Company Act any books and records relevant to the
provision of its investment advisory services to the Corporation and shall specifically maintain all books and records with respect
to the Corporation’s portfolio transactions and shall render to the Board such periodic and special reports as the Board
may reasonably request. The Adviser agrees that all records that it maintains for the Corporation are the property of the Corporation
and will surrender promptly to the Corporation any such records upon the Corporation’s request, provided that the Adviser
may retain a copy of such records.

 

(g)
The Adviser shall provide to the Board such periodic and special reports as it may request.

 

2.
Corporation’s Responsibilities and Expenses Payable by the Corporation. All investment professionals of the Adviser
and its staff, when and to the extent engaged in providing investment advisory services required to be provided by the Adviser
under Sections 1(a) and 1(b), and the compensation of such personnel and the general office and facilities and overhead expenses
incurred by the Adviser in maintaining its place of business allocable to such services, will be provided and paid for by the
Adviser and not by the Corporation. The Corporation will bear all other costs and expenses of its operations and transactions,
including those relating to:

 

(a)
organization;

 

(b)
calculating the Corporation’s net asset value (including the cost and expenses of any independent valuation firm);

 

    	 

     

    

 

(c)
expenses incurred by the Adviser payable to third parties, including agents, consultants or other advisors, in monitoring financial
and legal affairs for the Corporation and in monitoring the Corporation’s investments and performing due diligence on its
prospective portfolio companies;

 

(d)
interest payable on debt, if any, incurred to finance the Corporation’s investments;

 

(e)
offerings of the Corporation’s common stock and other securities;

 

(f)
investment advisory and management fees payable under this Agreement, which fees shall not include fees (if any) payable to a
Sub-Adviser retained by the Adviser pursuant to Section 1(d);

 

(g)
administration fees, if any, payable under the Administration Agreement (the “Administration Agreement”) between the
Corporation and the Adviser or any successor thereto as the Corporation’s administrator;

 

(h)
transfer agent and custodial fees;

 

(i)
federal and state registration fees;

 

(j)
all costs of registration and listing the Corporation’s shares on any securities exchange;

 

(k)
federal, state and local taxes;

 

(l)
independent directors’ fees and expenses;

 

(m)
costs of preparing and filing reports or other documents required by governmental bodies (including the SEC);

 

(n)
costs of any reports, proxy statements or other notices to stockholders, including printing costs;

 

(o)
the Corporation’s allocable portion of the fidelity bond, directors and officers/errors and omissions liability insurance,
and any other insurance premiums;

 

(p)
direct costs and expenses of administration, including independent auditors and outside legal costs; and

 

(q)
all other expenses incurred by the Corporation or the Advisor in connection with administering the Corporation’s business
(including payments under the Administration Agreement based upon the Corporation’s allocable portion of the Advisor’s
overhead in performing its obligations under the Administration Agreement, including rent and the allocable portion of the cost
of the Corporation’s chief financial officer and chief compliance officer and their respective staffs (including travel
expenses)).

 

3.
Compensation of the Adviser. The Corporation agrees to pay, and the Adviser agrees to accept, as compensation for the services
provided by the Adviser hereunder, a base management fee (“Base Management Fee”) and an incentive fee (“Incentive
Fee”) as hereinafter set forth. The Corporation shall make any payments due hereunder to the Adviser or to the Adviser’s
designee as the Adviser may otherwise direct. To the extent permitted by applicable law, the Adviser may elect, or the Corporation
may adopt a deferred compensation plan pursuant to which the Adviser may elect, to defer all or a portion of its fees hereunder
for a specified period of time.

 

(a)
The Base Management Fee shall be 1.50% per annum of the Corporation’s total assets (other than cash or cash equivalents
but including assets purchased with borrowed funds), determined according to procedures duly adopted by the Board. For services
rendered during the period commencing from November 8, 2019 (the “Effective Date”), through and including the end
of the first calendar quarter of the Corporation’s operations after the Effective Date, the Base Management Fee will be
payable monthly in arrears. Until the first calendar quarter of the Corporation’s operations after the Effective Date, the
Base Management Fee will be calculated based on the initial value of the Corporation’s total assets (other than cash or
cash equivalents but including assets purchased with borrowed funds) after giving effect to the contribution of the loan portfolio
as contemplated by the Stock Purchase Agreement, dated as of January 24, 2019 by and among the Corporation, East Asset Management,
LLC and, solely for purposes of being bound by Sections 7.10 and 10.9(a) and (b) thereof, the Adviser. Subsequently, the Base
Management Fee will be calculated based on the average value of the Corporation’s total assets (other than cash or cash
equivalents but including assets purchased with borrowed funds) at the end of the two most recently completed calendar quarters.
Base Management Fees for any partial month or quarter will be appropriately pro-rated.

 

    	 

     

    

 

(b)
The Incentive Fee shall consist of two parts, as follows:

 

(i)
One part (the “Income Based Fee”) will be calculated and payable quarterly in arrears based on the Pre-Incentive Fee
net investment income for the immediately preceding calendar quarter and shall be payable promptly following the filing of the
Corporation’s financial statements for such quarter. “Pre-Incentive Fee net investment income” means interest
income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance),
such as commitment, origination, structuring, diligence and consulting fees or other fees that the Corporation receives from portfolio
companies) accrued by the Corporation during the relevant calendar quarter, minus the Corporation’s operating expenses for
such calendar quarter (including the Base Management Fee, expenses payable under the Administration Agreement, and any interest
expense and dividends paid on any issued and outstanding preferred stock, but excluding any portion of Incentive Fee).

 

Pre-Incentive
Fee net investment income includes any accretion of original issue discount, market discount, payment-in-kind interest, payment-in-kind
dividends or other types of deferred or accrued income, including in connection with zero coupon securities, that the Corporation
and its consolidated subsidiaries have recognized in accordance with U.S. Generally Accepted Accounting Principles, but have not
yet received in cash (collectively, “Accrued Unpaid Income”). Pre-Incentive Fee net investment income does not include
any realized capital gains, realized and unrealized capital losses or unrealized capital appreciation or depreciation.

 

Pre-Incentive
Fee net investment income, expressed as a rate of return on the value of the Corporation’s net assets (defined as total
assets less indebtedness) at the end of the immediately preceding calendar quarter, will be compared to a “hurdle rate”,
expressed as a rate of return on the value of the Corporation’s net assets at the end of the most recently completed calendar
quarter, of 1.75% per quarter (7% annualized). The Corporation will pay the Adviser an Incentive Fee with respect to the Corporation’s
Pre-Incentive Fee net investment income in each calendar quarter as follows:

 

(A)
no Income Based Fee in any calendar quarter in which the Corporation’s Pre-Incentive Fee net investment income does not
exceed the hurdle rate;

 

(B)
100.0% of the Corporation’s Pre-Incentive Fee net investment income for any calendar quarter with respect to that portion
of such Pre-Incentive Fee net investment income for such calendar quarter, if any, that exceeds the hurdle rate but is less than
2.1875% (8.75% annualized); and

 

(C)
20.0% of the amount of the Corporation’s Pre-Incentive Fee net investment income for any calendar quarter with respect to
that portion of such Pre-Incentive Fee Net Investment Income for such calendar quarter, if any, that exceeds 2.1875% (8.75% annualized).

 

These
calculations will be appropriately pro-rated for any period of less than three months.

 

Notwithstanding
the foregoing, the Income Based Fee paid to the Adviser for any calendar quarter that begins more than two years and three months
after the Effective Date shall not be in excess of the Incentive Fee Cap. The Incentive Fee Cap for any calendar quarter is an
amount equal to (1) 20.0% of the Cumulative Net Return (as defined below) during the Income Based Fee Calculation Period (as defined
below) minus (2) if applicable, the aggregate Income Based Fee that was paid in respect of the calendar quarters prior to such
quarter included in the relevant Income Based Fee Calculation Period.

 

“Income
Based Fee Calculation Period” means, with reference to a calendar quarter, the period of time consisting of such calendar
quarter and the additional quarters that comprise the lesser of (1) the number of quarters immediately preceding such calendar
quarter that began more than two years after the Effective Date or (2) the eleven calendar quarters immediately preceding such
calendar quarter.

 

    	 

     

    

 

“Cumulative
Net Return” means (1) the aggregate net investment income in respect of the relevant Income Based Fee Calculation Period
minus (2) any Net Capital Loss, if any, in respect of the relevant Income Based Fee Calculation Period. If, in any quarter, the
Incentive Fee Cap is zero or a negative value, the Corporation pays no Income Based Fee to the Adviser for such quarter. If, in
any quarter, the Incentive Fee Cap for such quarter is a positive value but is less than the Income Based Fee that is payable
to the Adviser for such quarter (before giving effect to the Incentive Fee Cap) calculated as described above, the Corporation
pays an Income Based Fee to the Adviser equal to the Incentive Fee Cap for such quarter. If, in any quarter, the Incentive Fee
Cap for such quarter is equal to or greater than the Income Based Fee that is payable to the Adviser for such quarter (before
giving effect to the Incentive Fee Cap) calculated as described above, the Corporation pays an Income Based Fee to the Adviser
equal to the Income Based Fee calculated as described above for such quarter without regard to the Incentive Fee Cap.

 

“Net
Capital Loss” in respect of a particular period means the difference, if positive, between (1) aggregate capital losses,
whether realized or unrealized, in such period and (2) aggregate capital gains, whether realized or unrealized, in such period.

 

Any
Income Based Fee otherwise payable under this Section 3(b)(i) with respect to Accrued Unpaid Income (collectively, the “Accrued
Unpaid Income Based Fees”) shall be deferred, on a security by security basis, and shall become payable only if, as, when
and to the extent cash is received by the Corporation or its consolidated subsidiaries in respect thereof. Any Accrued Unpaid
Income that is subsequently reversed in connection with a write-down, write-off, impairment or similar treatment of the investment
giving rise to such Accrued Unpaid Income will, in the applicable period of reversal, (1) reduce Pre-Incentive Fee net investment
income and (2) reduce the amount of Accrued Unpaid Income Incentive Fees deferred under this paragraph. Subsequent payments of
Accrued Unpaid Income Incentive Fees deferred pursuant to this paragraph shall not reduce the amounts otherwise payable for any
quarter pursuant to this Section 3(b)(i).

 

(ii)
The second part of the Incentive Fee (the “Capital Gains Fee”) will be determined and payable in arrears as of the
end of each calendar year (or upon termination of this Agreement as set forth below), commencing with the calendar year ending
on December 31, 2019, and is calculated at the end of each applicable year by subtracting (1) the sum of the Corporation’s
cumulative aggregate realized capital losses and aggregate unrealized capital depreciation from (2) the Corporation’s cumulative
aggregate realized capital gains, in each case calculated from the Effective Date. If such amount is positive at the end of such
year, then the Capital Gains Fee for such year is equal to 20.0% of such amount, less the cumulative aggregate amount of Capital
Gains Fees paid in all prior years. If such amount is negative, then there is no Capital Gains Fee payable for such year. If this
Agreement is terminated as of a date that is not a calendar year end, the termination date shall be treated as though it were
a calendar year end for purposes of calculating and paying a Capital Gains Fee.

 

For
purposes of this Section 3(b)(ii):

 

The
cumulative aggregate realized capital gains are calculated as the sum of the differences, if positive, between (a) the
net sales price of each investment in the Corporation’s portfolio when sold and (b) the accreted or amortized cost basis
of such investment.

 

The
cumulative aggregate realized capital losses are calculated as the sum of the amounts by which (a) the net sales price
of each investment in the Corporation’s portfolio when sold is less than (b) the accreted or amortized cost basis of such
investment.

 

The
aggregate unrealized capital depreciation is calculated as the sum of the differences, if negative, between (a) the valuation
of each investment in the Corporation’s portfolio as of the applicable Capital Gains Fee calculation date and (b) the accreted
or amortized cost basis of such investment.

 

The
accreted or amortized cost basis of an investment shall mean, with respect to an investment owned by the Corporation as of the
Effective Date, the fair value of such investment as set forth in the Corporation’s most recently filed Quarterly Report
on Form 10-Q or Annual Report on Form 10-K, as applicable, as filed with the SEC and, with respect to an investment acquired by
the Corporation subsequent to the Effective Date, the accreted or amortized cost basis of such investment as reflected in the
Corporation’s financial statements.

 

    	 

     

    

 

4.
Covenants of the Adviser. The Adviser covenants that it will remain registered as an investment adviser under the Advisers
Act. The Adviser agrees that its activities will at all times be in compliance in all material respects with all applicable federal
and state laws governing its operations and investments.

 

5.
Excess Brokerage Commissions. The Adviser is hereby authorized, to the fullest extent now or hereafter permitted by law,
to cause the Corporation to pay a member of a national securities exchange, broker or dealer an amount of commission for effecting
a securities transaction in excess of the amount of commission another member of such exchange, broker or dealer would have charged
for effecting that transaction, if the Adviser determines in good faith, taking into account such factors as price (including
the applicable brokerage commission or dealer spread), size of order, difficulty of execution, and operational facilities of the
firm and the firm’s risk and skill in positioning blocks of securities, that such amount of commission is reasonable in
relation to the value of the brokerage and/or research services provided by such member, broker or dealer, viewed in terms of
either that particular transaction or its overall responsibilities with respect to the Corporation’s portfolio, and constitutes
the best net results for the Corporation.

 

6.
Limitations on the Employment of the Adviser. The services of the Adviser to the Corporation are not exclusive, and the
Adviser may engage in any other business or render similar or different services to others including, without limitation, the
direct or indirect sponsorship or management of other investment based accounts or commingled pools of capital, however structured,
having investment objectives similar to those of the Corporation, so long as its services to the Corporation hereunder are not
materially impaired thereby, and nothing in this Agreement shall limit or restrict the right of any member, manager, partner,
officer or employee of the Adviser to engage in any other business or to devote his or her time and attention in part to any other
business, whether of a similar or dissimilar nature, or to receive any fees or compensation in connection therewith (including
fees for serving as a director of, or providing consulting services to, one or more of the Corporation’s portfolio companies,
subject to applicable law). So long as this Agreement or any extension, renewal or amendment remains in effect, the Adviser shall
be the only investment adviser for the Corporation, subject to the Adviser’s right to enter into sub-advisory agreements.
The Adviser assumes no responsibility under this Agreement other than to render the services called for hereunder. It is understood
that directors, officers, employees and stockholders of the Corporation are or may become interested in the Adviser and its affiliates,
as directors, officers, employees, partners, stockholders, members, managers or otherwise, and that the Adviser and directors,
officers, employees, partners, stockholders, members and managers of the Adviser and its affiliates are or may become similarly
interested in the Corporation as stockholders or otherwise.

 

7.
Responsibility of Dual Directors, Officers and/or Employees. If any person who is a member, manager, partner, officer or
employee of the Adviser is or becomes a director, officer and/or employee of the Corporation and acts as such in any business
of the Corporation, then such member, manager, partner, officer and/or employee of the Adviser shall be deemed to be acting in
such capacity solely for the Corporation, and not as a member, manager, partner, officer or employee of the Adviser under the
control or direction of the Adviser, even if paid by the Adviser.

 

8.
Limitation of Liability of the Adviser; Indemnification. The Adviser, its members and their respective officers, managers,
partners, agents, employees, controlling persons, members and any other person affiliated with any of them (collectively, the
“Indemnified Parties”), shall not be liable to the Corporation for any action taken or omitted to be taken by the
Adviser in connection with the performance of any of its duties or obligations under this Agreement or otherwise as an investment
adviser of the Corporation, except to the extent specified in Section 36(b) of the Investment Company Act concerning loss resulting
from a breach of fiduciary duty (as the same is finally determined by judicial proceedings) with respect to the receipt of compensation
for services. The Corporation shall indemnify, defend and protect the Indemnified Parties (each of whom shall be deemed a third
party beneficiary hereof) and hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable
attorneys’ fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any pending,
threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the
Corporation or its security holders) arising out of or otherwise based upon the performance of any of the Adviser’s duties
or obligations under this Agreement or as an investment adviser of the Corporation. Notwithstanding the foregoing provisions of
this Section 8 to the contrary, nothing contained herein shall protect or be deemed to protect the Indemnified Parties against
or entitle or be deemed to entitle the Indemnified Parties to indemnification in respect of, any liability to the Corporation
or its security holders to which the Indemnified Parties would otherwise be subject by reason of willful misfeasance, bad faith
or gross negligence in the performance of any Indemnified Party’s duties or by reason of the reckless disregard of the Adviser’s
duties and obligations under this Agreement (as the same shall be determined in accordance with the Investment Company Act and
any interpretations or guidance by the SEC or its staff thereunder).

 

    	 

     

    

 

9.
Confidentiality. The parties hereto agree that each shall treat confidentially all information provided by each party to
the other regarding its business and operations. All confidential information provided by a party hereto, including all “nonpublic
personal information,” as defined under the Gramm-Leach-Bliley Act of 1999 (Public law 106-102, 113 Stat. 1138), shall be
used by the other party hereto solely for the purpose of rendering services pursuant to this Agreement and, except as may be required
in carrying out this Agreement, shall not be disclosed to any third party, without the prior consent of such providing party,
except that such confidential information may be disclosed to an affiliate or agent of the disclosing party to be used for the
sole purpose of providing the services set forth herein. The foregoing shall not be applicable to any information that is publicly
available or available to the recipient when provided or thereafter becomes publicly available or available to the recipient other
than through a breach of this Agreement, or that is requested by or required to be disclosed to any governmental or regulatory
authority, including in connection with any required regulatory filings or examinations, by judicial or administrative process
or otherwise by applicable law or regulation. Notwithstanding the foregoing, the Corporation hereby consents and authorizes the
Adviser and its affiliates to use and disclose confidential information relating to the Corporation in connection with the preparation
of performance information relating to the Corporation.

 

10.
Effectiveness, Duration and Termination of Agreement. This Agreement shall become effective as of the first date above
written. This Agreement shall remain in effect for two years after such date, and thereafter shall continue automatically for
successive annual periods, provided that such continuance is specifically approved at least annually by

 

(a)
the vote of the Board, or by the vote of stockholders holding a majority of the outstanding voting securities of the Corporation,
and

 

(b)
the vote of a majority of the Corporation’s Directors who are not parties to this Agreement or “interested persons”
(as such term is defined in Section 2(a)(19) of the Investment Company Act) of any party to this Agreement, in accordance with
the requirements of the Investment Company Act.

 

This
Agreement may be terminated at any time, without the payment of any penalty, upon 60 days’ written notice, by the vote of
stockholders holding a majority of the outstanding voting securities of the Corporation, or by the vote of the Corporation’s
Directors or by the Adviser.

 

This
Agreement will automatically terminate in the event of its “assignment” (as such term is defined for purposes of Section
15(a)(4) of the Investment Company Act). The provisions of Section 8 of this Agreement shall remain in full force and effect,
and the Adviser shall remain entitled to the benefits thereof, notwithstanding any termination of this Agreement. Further, notwithstanding
the termination or expiration of this Agreement as aforesaid, (i) the Adviser shall be entitled to any amounts owed under Section
3 through the date of termination or expiration, and (ii) the obligations set forth in Sections 8 and 9 shall survive the termination
of this Agreement.

 

11.
Amendments of this Agreement. This Agreement may not be amended or modified except by an instrument in writing signed by
all parties hereto, but the consent of the Corporation must be obtained in conformity with the requirements of the Investment
Company Act.

 

12.
Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York,
including without limitation Sections 5-1401 and 5-1402 of the New York General Obligations Law and New York Civil Practice Law
and Rules, Rule 327(b), and the applicable provisions of the Investment Company Act, if any. To the extent that the applicable
laws of the State of New York, or any of the provisions herein, conflict with the applicable provisions of the Investment Company
Act, if any, the latter shall control. The parties unconditionally and irrevocably consent to the exclusive jurisdiction of the
courts located in the State of New York and waive any objection with respect thereto, for the purpose of any action, suit or proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.

 

    	 

     

    

 

13.
No Waiver. The failure of either party to enforce at any time for any period the provisions of or any rights deriving from
this Agreement shall not be construed to be a waiver of such provisions or rights or the right of such party thereafter to enforce
such provisions, and no waiver shall be binding unless executed in writing by all parties hereto.

 

14.
Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any
law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long
as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to
any party.

 

15.
Headings. The descriptive headings contained in this Agreement are for convenience of reference only and shall not affect
in any way the meaning or interpretation of this Agreement.

 

16.
Counterparts. This Agreement may be executed in one or more counterparts, each of which when executed shall be deemed to
be an original instrument and all of which taken together shall constitute one and the same agreement.

 

17.
Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given
or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service
(with signature required), by facsimile, or by registered or certified mail (postage prepaid, return receipt requested) to the
respective parties at their respective principal executive office addresses.

 

18.
Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof
and supersedes all prior agreements and undertakings, both written and oral, between the parties with respect to such subject
matter.

 

19.
Certain Matters of Construction.

 

(a)
The words “hereof”, “herein”, “hereunder” and words of similar import shall refer to this
Agreement as a whole and not to any particular Section or provision of this Agreement, and reference to a particular Section of
this Agreement shall include all subsections thereof.

 

(b)
Definitions shall be equally applicable to both the singular and plural forms of the terms defined, and references to the masculine,
feminine or neuter gender shall include each other gender.

 

(c)
The word “including” shall mean including without limitation.

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the date above written.

 

	 	RAND
    CAPITAL CORPORATION
	 	 	 
	 	By:	/s/
    Allen F. Grum
	 	Name:	Allen
    F. Grum
	 	Title:	President
    and Chief Executive Officer
	 	 	 
	 	RAND
    CAPITAL MANAGEMENT LLC
	 	 	 
	 	By:	CB
    Advisor LLC, its Managing Member
	 	 	 
	 	By:	/s/
    Brian Collins
	 	Name:	Brian
    Collins
	 	Title:	Sole
    Member

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