Document:

Exhibit 10.12

 

Execution Version

 

NOTE
PURCHASE AGREEMENT

 

This NOTE PURCHASE
AGREEMENT (this “Agreement”), dated as of March 18, 2013, is by and among UFI ACQUISITION, INC., a Delaware corporation
(“Buyer”), UFI MERGER SUB, INC., a Delaware corporation (“Merger Sub”, and together with Buyer and Target
(as hereinafter defined), the “Company”), and THE PENINSULA FUND V LIMITED PARTNERSHIP, a Delaware limited partnership
(the “Purchaser”). Capitalized terms used in this Agreement are defined in Section 11.1.

 

To induce Purchaser
to purchase the Senior Subordinated Note from the Company, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 

1.            DESCRIPTION
OF SENIOR SUBORDINATED NOTE AND COMMITMENT

 

1.1          Description
of Senior Subordinated Note.

 

The Company will authorize
the issuance and sale of its Senior Subordinated Note which shall be dated as of the Closing Date, shall be in the aggregate original
principal amount of $11,500,000, and shall bear interest at the fixed rate of 16.0% per annum; provided, however, that upon the
occurrence of a Default or an Event of Default, and during the continuance thereof, the unpaid principal amount of the Senior Subordinated
Note shall bear interest at the rate of 19.0% per annum. Interest on the Senior Subordinated Note shall be computed on the basis
of the actual number of days elapsed over a 365 day year. The Senior Subordinated Note shall be substantially in the form attached
hereto as Exhibit A-1.

 

1.2          Commitment;
Funding.

 

Subject to the terms
and conditions hereof and on the basis of the representations and warranties hereinafter set forth, the Company agrees to issue
and sell to Purchaser and Purchaser agrees to purchase from the Company, the Senior Subordinated Note in the principal amount of
$11,500,000 at a price of one hundred percent (100%) of such principal amount. The Senior Subordinated Note will be delivered to
Purchaser in fully registered form, and shall be issued in its name or the name of its nominee.

 

1.3          Origination
Points.

 

(a)          The
Company shall pay to Purchaser origination points in the amount of 2.0% of the principal amount of the Senior Subordinated Note
in immediately available funds, $20,000 of which has been paid by the Company to Purchaser, and the balance of which shall be paid
on or prior to the Closing Date.

 

(b)          All
origination points paid under this Section 1.3 are fully earned and nonrefundable. Purchaser may, at its option, deduct the balance
of the amount of the origination points to be paid on the Closing Date from the purchase price of the Senior Subordinated Note.

 

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1.4          Use
of Proceeds.

 

The proceeds from the
sale of the Senior Subordinated Note shall be used solely (a) to fund the Acquisition, (b) to pay all fees, costs and expenses
payable pursuant to this Agreement and the Other Agreements, and (c) prior to such proceeds being used for the purposes set forth
in the preceding clauses (a) and (b), for Permitted Investments on a temporary basis.

 

2.            PAYMENT
AND PREPAYMENT OF SENIOR SUBORDINATED NOTE

 

2.1          Principal
and Interest Payments.

 

(a)          Unless
otherwise accelerated pursuant to the terms hereof, principal and interest on the Senior Subordinated Note shall be due and payable
as follows:

 

(i)          All
outstanding principal shall be due and payable on the Maturity Date.

 

(ii)         Interest
shall be due and payable (A) monthly in arrears on each Interest Payment Date, commencing March 31, 2013, and (B) on the Maturity
Date.

 

(b)          Each
payment under Section 2.1(a)(i) shall be applied first to any expenses to which Purchaser may be entitled, second to accrued interest,
third to Deferred Interest and fourth to principal. If any payment is not received by Purchaser on or before its due date, the
Company shall pay a late fee equal to the greater of (a) $1,000 or (b) one percent (1%) of the amount due.

 

(c)          At
the Company's sole option, the Company may elect, on any Interest Payment Date with respect to the interest payment then due on
the Senior Subordinated Note, by giving notice to Purchaser on such Interest Payment Date, to pay in cash a portion of such interest
payment at a rate not less than twelve percent (12.0%) per annum, and to defer the remaining portion of the accrued but unpaid
interest then due (the "Partial Deferral"). If the Company elects to defer a portion of the interest then due, the Company
will execute and deliver to Purchaser a note, in the form attached hereto as Exhibit A-2 (together with any and all notes issued
in replacement or substitution therefor, the "Deferral Note"), which note will be in the amount of the deferred interest,
will bear interest at the rate of sixteen percent (16.0%) per annum prior to an Event of Default and nineteen percent (19.0%) per
annum subsequent to and during the continuance of an Event of Default, payable monthly on each Interest Payment Date, and will
be due and payable on the Maturity Date. On each succeeding Interest Payment Date, the company, at its sole option, will be entitled
to elect a Partial Deferral for the interest payment then due on the Senior Subordinated Note, and to elect to either pay the interest
then due on the Deferral Note in cash or to defer the payment of such interest (a "Subsequent Interest Deferral"). On
any Interest Payment Date that the Company elects a Partial Deferral, a Subsequent Interest Deferral or both, the Company will
execute and deliver a replacement Deferral Note in the new principal amount equal to the principal amount of the then existing
Deferral Note, plus the interest deferred on the Senior Subordinated Note pursuant to the then-elected Partial Deferral, if any,
plus the interest deferred pursuant to the then-elected Subsequent Interest Deferral, if any. The outstanding principal amount
of the Deferral Note, together with all accrued and unpaid interest thereon, shall be due and payable on the Maturity Date.

 

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2.2          Optional
Prepayments.

 

(a)          At
the Company's option, upon notice given as provided below and subject to the terms of the Subordination Agreement, the Company
may, at any time and from time to time, prepay all or any part of the principal of the Senior Subordinated Note, by payment to
Purchaser of an amount equal to (i) the principal amount to be prepaid, plus (ii) accrued unpaid interest on the principal amount
so prepaid, plus (iii) if prepayment is made on any day other than the last day of a month, an amount equal to the interest which
would have been earned on the amount prepaid through the last day of such month, (iv) any expense or indemnification amounts for
which Purchaser may be entitled to receive payment or reimbursement hereunder or, if the Senior Subordinated Note is being prepaid
in full, the aggregate amount of all other Senior Subordinated Obligations, plus (v) if the Senior Subordinated Note, plus all
accrued interest (including deferred interest) and all other amounts due and owing the Purchaser hereunder, are prepaid in whole
or in part at any time prior to the second (2nd) annual anniversary of the Closing Date, a fee (the "Yield Maintenance
Fee") equal to the difference between (I) the Minimum Yield Amount and (II) the Investment Proceeds earned on the
prepaid principal amount from the date the Senior Subordinated Note is funded through the date of prepayment.

 

(b)          Each
partial payment under this Section 2.2 shall be in a principal amount of not less than $250,000 or, if greater than $250,000, then
in integral multiples of $100,000. Each prepayment under this Section 2.2 shall be applied first to the Yield Maintenance Fee,
if any, second to any expenses to which Purchaser may be entitled, third to accrued interest on the principal amount prepaid, fourth
to installments of principal in the inverse order of their maturities, and fifth if the Senior Subordinated Note is being prepaid
in full, the aggregate amount of all other Senior Subordinated Obligations. The amount of any such prepayment or any prepayment
under Section 2.3 may not be reborrowed from the Purchaser by the Company. The Company shall give notice of any optional prepayment
to Purchaser not less than thirty (30) days nor more than sixty (60) days before the date for prepayment, specifying in each such
notice the date upon which prepayment is to be made and the principal amount of the Senior Subordinated Note (together with accrued
interest and any applicable Yield Maintenance Fee ) to be prepaid on such date. Notice of prepayment having been so given, the
applicable prepayment amount shall become due and payable on the specified prepayment date. The Company shall have no right to
prepay the Senior Subordinated Note except as provided in this Section 2.2 or in Section 2.3.

 

2.3          Mandatory
Prepayments.

 

The Company shall,
subject to the terms of the Subordination Agreement and subject to Purchaser's right in its sole discretion to waive such prepayments,
make mandatory prepayments in each of the following circumstances:

 

(a)          Concurrently
with an Initial Public Offering by the Company or any of its Subsidiaries of any of the Company's or its Subsidiaries’ debt
or equity securities, the Company shall prepay the Senior Subordinated Obligations in an amount equal to the lesser of the (i)
net proceeds of any such Initial Public Offering or (ii) the aggregate amount of all Senior Subordinated Obligations (including
any Yield Maintenance Fee).

 

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(b)          If
during any fiscal year the Company or its Subsidiaries shall sell or otherwise dispose of (other than as permitted by Section 6.9
or Section 7.3) any property or properties, then, to the extent any proceeds remain after prepayment of the Senior Debt pursuant
to the Senior Loan Documents, the Company shall prepay the Senior Subordinated Obligations in an amount equal to the lesser of
(i) the aggregate net cash proceeds of such sales or other dispositions or (ii) the aggregate amount of all Senior Subordinated
Obligations (including any Yield Maintenance Fee), such prepayment to be made within two (2) Business Days of receipt of such net
proceeds.

 

(c)          If
at any time a Change of Control shall occur, the Company shall prepay all Senior Subordinated Obligations.

 

(d)          In
the event of any collection of or realization by the Purchaser upon any Collateral following an Event of Default, the Company shall
prepay the Senior Subordinated Obligations in an amount equal to the lesser of (i) the aggregate net cash proceeds of all collections
or other realizations of Collateral by Purchaser or (ii) the aggregate amount of all Senior Subordinated Obligations (including
any Yield Maintenance Fee).

 

(e)          In
the event of any sale or other disposition of all or substantially all of the stock or assets of the Company or any Subsidiary
of the Company in a single transaction or series of transactions (other than as permitted by Section 6.9 or Section 7.3), the Company
shall prepay the Senior Subordinated Obligations in an amount equal to the lesser of (i) the aggregate net cash proceeds of such
sales or dispositions or (ii) the aggregate amount of all Senior Subordinated Obligations.

 

(f)          Notwithstanding
Section 2.1 hereof and the terms of any Deferral Note, commencing with the first “accrual period” (as defined for purposes
of the Code) ending after the fifth anniversary of the Closing Date, the Company must and shall pay in cash, on or before the end
of such accrual period, the outstanding principal amount and all accrued and unpaid interest under any Deferral Note if, but only
to the extent that, the aggregate amount outstanding under any Deferral Note, and any unpaid interest that has accrued and not
been paid thereon in cash from the Closing Date through the end of such accrual period, exceeds the product of the “issue
price” (as defined for purposes of the Code) for the Senior Subordinated Note and the “yield to maturity” (as
defined for purposes of the Code) on the Senior Subordinated Note.

 

Any prepayment under
this Section 2.3 shall be subject to payment of (i) accrued unpaid interest on the principal amount prepaid, plus (ii) if the prepayment
is made on any day other than the last day of the month, an amount equal to the interest which would have been earned on the amount
prepaid through the last day of the month, plus (iii) a Yield Maintenance Fee. Any such prepayments shall be applied first to accrued
interest on the Senior Subordinated Note, second to the Deferral Note, if any, third to any Yield Maintenance Fee, fourth to any
expenses for which Purchaser may be entitled, fifth to installments of principal in the inverse order of their maturities on the
Senior Subordinated Note, and sixth if the Senior Subordinated Note is being prepaid in full, the aggregate amount of all other
Subordinated Obligations. The amount of any such mandatory prepayment may not be reborrowed by the Company from the Purchaser.
Anything herein to the contrary, notwithstanding, in the circumstances described in Sections 2.3(c) and (e) the Purchaser agrees
to waive the Yield Maintenance Fee.

 

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2.4          Reasonableness
of Yield Maintenance Fee.

 

The Company agrees
and acknowledges that any Yield Maintenance Fee payable pursuant to Section 2.2 or Section 2.3 is the product of arm's length negotiation
between the parties and the amount thereof constitutes reasonable compensation for loss by the Purchaser of the opportunity to
recover loan origination expenses and profits over the balance of the term of this Agreement, and is not a penalty.

 

2.5          Additional
Payments.

 

Unless otherwise provided
herein or in the Other Agreements, all Senior Subordinated Obligations, other than principal and interest on the Senior Subordinated
Note and the Deferral Note, if any, shall be payable by the Company to the Holder thereof, on demand, and shall bear interest from
the date of demand until paid at the rate of interest then applicable to the Senior Subordinated Note under Section 1.1. Payment
of fees and expenses due and payable on the Closing Date to Purchaser and Purchaser's legal counsel shall be paid in full on the
Closing Date.

 

2.6          Direct
Payment.

 

The Company will pay
all sums becoming due hereunder and on the Senior Subordinated Note to Purchaser at the address specified for Purchaser on Annex
I hereto, by wire transfer in U.S. Dollars of Federal Reserve or other immediately available funds (which does not include ACH
(automated clearing house) or EFT (Electronic Funds Transfers)),
to the account specified for Purchaser on Annex I or at such other address or in such other form as Purchaser shall have designated
by notice to the Company at least five Business Days prior to the date of any payment, in each case without presentment and without
notations being made thereon. All payments by the Company shall be made without defense, set-off or counterclaim. Any wire transfer
shall identify such payment as "Unique Fabricating, 16.0% Senior Subordinated Note” and shall identify the payment as
principal, premium, interest and/or reimbursement of costs and expenses, together with the applicable date or period to which it
relates.

 

2.7          Payments
Payable on Business Days.

 

Payments of all amounts
due hereunder or under the Senior Subordinated Note or the Deferral Note shall be made on a Business Day. Any payment due on a
day that is not a Business Day shall be made on the immediately preceding Business Day, together with all interest (if any) accrued
to and including such preceding Business Day.

 

2.8          Interest
Laws.

 

(a)          Notwithstanding
any provision to the contrary contained in this Agreement or any Other Agreement, the Company shall not be required to pay, and
Purchaser shall not be permitted to contract for, take, reserve, charge or receive, any compensation which constitutes interest
under applicable law in excess of the maximum amount of interest permitted by law (“Excess Interest”). If any Excess
Interest is provided for or determined by a court of competent jurisdiction to have been provided for in this Agreement or in any
Other Agreement or otherwise contracted for, taken, reserved, charged or received, then in such event: (i) the provisions
of this Section 2.8 shall govern and control; (ii) the Company shall not be obligated to pay any Excess Interest; (iii) any Excess
Interest that Purchaser may have contracted for, taken, reserved, charged or received hereunder shall be, at Purchaser's option,
(A) applied as a credit against the outstanding principal balance of the Senior Subordinated Obligations or accrued and unpaid
interest (not to exceed the maximum amount permitted by law), (B) refunded to the payor thereof, or (C) any combination of the
foregoing; (iv) the interest provided for shall be automatically reduced to the maximum lawful rate allowed from time to time under
applicable law (the “Maximum Rate”), and this Agreement and the Other Agreements shall be deemed to have been, and
shall be, reformed and modified to reflect such reduction; and (v) the Company shall have no action against Purchaser for any damages
arising due to any Excess Interest.

 

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(b)          Notwithstanding
the foregoing, if for any period of time interest on any Senior Subordinated Obligations is calculated at the Maximum Rate rather
than the applicable rate under this Agreement, and thereafter such applicable rate becomes less than the Maximum Rate, the rate
of interest payable on such Senior Subordinated Obligations thereafter shall remain at the Maximum Rate until Purchaser shall have
received the amount of interest which Purchaser would have received during such period on such Senior Subordinated Obligations
had the rate of interest not been limited to the Maximum Rate during such period. All sums paid or agreed to be paid hereunder
or under the Other Agreements for the use, forbearance or detention of sums due shall, to the extent permitted by applicable law,
be amortized, pro-rated, allocated and spread throughout the full term of the Senior Subordinated Obligations until payment in
full so that the rate or amounts of interest on account of the Senior Subordinated Obligations does not exceed the Maximum Rate.
The terms of this Section 2.8 shall be deemed incorporated into each Other Agreement and any other document or instrument between
the Company and Purchaser or directed to the Company by Purchaser, whether or not specific reference to this Section 2.8 is made.

 

2.9          Security.

 

Payment of the Senior
Subordinated Note and the other Senior Subordinated Obligations, and the performance of the covenants set forth herein and in the
Other Agreements, will be secured by a perfected security interest, mortgage, assignment or Lien, as the case may be (subject only
to the prior security interest, mortgage, assignment or Lien in favor of the Senior Lender and subject to the Subordination Agreement,
and other Permitted Liens), in favor of Purchaser, in and upon the Collateral. The Company shall, and shall cause its Subsidiaries
to, execute, acknowledge and deliver, and/or cause to be executed, acknowledged and delivered, to Purchaser such certificates,
stock powers, instruments, security agreements, mortgages, pledges, statements, assignments, consents, Lien waivers, financing
statements or amendments thereof, guarantees and other documents, in form and substance reasonably acceptable to Purchaser and
as Purchaser reasonably requests, to grant, enforce, perfect and protect such security interest, assignments, Liens and mortgages,
including, without limitation, the Security Documents. The Senior Subordinated Obligations shall also be secured by a first priority
security interest on the proceeds of the keyman life insurance policies described in Section 6.13.

 

2.10        Joint
and Several Obligations.

 

Payment of the Senior
Subordinated Note and all other Senior Subordinated Obligations, and the performance of the covenants set forth herein are with
respect to Buyer and Merger Sub, and will be with respect to Target, UFS and UFR upon execution of a joinder contemporaneous with
Closing, the joint and several obligations of Buyer, Merger Sub, Target, UFS and UFR.

 

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3.            REPRESENTATIONS
AND WARRANTIES OF PURCHASER

 

Purchaser represents
and warrants to the Company as follows:

 

3.1          Existence.

 

It is a Delaware limited
partnership duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.

 

3.2          Authority.

 

It has the partnership
right and power and authority to enter into, execute, deliver and perform its obligations under this Agreement, the Warrant Purchase
Agreement, the Stockholders Agreement and the agreements, documents and instruments contemplated thereby to which the Purchaser
is a party and its partners, officers or agents executing and delivering this Agreement are duly authorized to do so. This Agreement,
the Warrant Purchase Agreement, the Stockholders Agreement and the agreements, documents and instruments contemplated thereby to
which the Purchaser is a party have been duly and validly executed and delivered and constitutes the legal, valid and binding obligation
of Purchaser, enforceable in accordance with its terms.

 

3.3          Investor
Status.

 

It (i) is an “accredited
investor,” as that term is defined in Regulation D under the Securities Act of 1933, as amended, and (ii) has such knowledge,
skill, sophistication and experience in business and financial matters, based on actual participation, that it is capable of evaluating
the merits and risks of the purchase of the Senior Subordinated Note and the Stock from the Company and the suitability thereof
for Purchaser.

 

3.4          Investment
for own Account.

 

It is acquiring the
Senior Subordinated Note and the Stock for investment for its own account and not with a view to any distribution thereof in violation
of applicable securities laws.

 

3.5          Legend
on Notes and Stock.

 

It agrees that the
Senior Subordinated Note and the Stock will bear the appropriate legends referencing restrictions on transfer and will not be offered,
sold or transferred in the absence of registration or exemption under applicable securities laws.

 

4.          REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

To induce Purchaser
to enter into this Agreement, the Company represents and warrants to Purchaser that, after giving effect to the transactions contemplated
by the Acquisition Documents, the Senior Loan Documents, this Agreement and the Other Agreements:

 

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4.1          Corporate
Existence and Authority.

 

Each of the Company
and its Subsidiaries (a) is a corporation duly organized, validly existing, and in good standing under the laws of its state of
Delaware, (b) has all requisite corporate power and authority to own its assets and carry on its business as now conducted; and
(c) is qualified to do business in all jurisdictions in which the nature of its business makes such qualification necessary and
where failure to so qualify would have a Material Adverse Effect. Each of the Company and its Subsidiaries has the corporate power
and authority to execute, deliver, and perform its obligations under this Agreement, the Senior Loan Documents, the Acquisition
Documents and all Other Agreements to which it is, or in connection with the transactions contemplated hereby may become, a party.

 

4.2          Financial
Statements.

 

The Company has delivered
to Purchaser (a) audited financial statements as at and for the fiscal years ended January 2, 2011 and January 1, 2012, and unaudited
financial statements of the Target and its Subsidiaries for the twelve (12) month period ended December 31, 2012, (b) cash flow
projections of the Company and its Subsidiaries for the five-year period following the Closing Date together with a written statement
of the assumptions underlying them, which are attached as part of Schedule 4.2, and (c) the unaudited pro forma balance sheet of
the Company after giving effect to the transactions anticipated by the Acquisition Documents, the Senior Loan Documents, this Agreement,
the Stock Purchase Agreement and the Other Agreements (the "Pro Forma Balance Sheet"). The financial statements referred
to in clause (a) of this Section 4.2 and the Pro Forma Balance Sheet referred to in clause (c) of this Section 4.2 are true and
correct in all material respects, have been prepared in accordance with GAAP (except as otherwise noted therein), and fairly present
the financial condition of the Company and its Subsidiaries as of the respective dates indicated therein and the results of the
Target's and its Subsidiaries' operations for the respective periods indicated therein (or in the case of the Pro Forma Balance
Sheet, present a good faith estimate of the pro forma financial condition of the Company and its Subsidiaries after giving effect
to the transactions indicated). At December 31, 2012, neither the Target nor any of its Subsidiaries had any liabilities or obligations
(absolute, accrued, contingent or otherwise) of a nature required by GAAP to be reflected in such financial statements which are,
individually or in the aggregate, material to the condition, financial or otherwise, or operations of the Target as of that date
which are not reflected on such financial statements. Except as disclosed on Schedule 4.2, there has been no material adverse change
in the condition, financial or otherwise, or operations of the Target or any of its Subsidiaries since November 30, 2012, nor has
there otherwise occurred a Material Adverse Effect.

 

4.3          Default.

 

Except as disclosed
on Schedule 4.3, neither the Company nor any of its Subsidiaries is in default under any loan agreement, indenture, mortgage, security
agreement, lease, franchise, permit, license or other agreement or obligation to which it is a party or by which any of its properties
may be bound. The Company and its Subsidiaries are paying their debts as they become due.

 

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4.4          Authorization
and Compliance with Laws and Material Agreements.

 

The execution, delivery
and performance by the Company and its Subsidiaries of this Agreement, the Senior Loan Documents the Acquisition Documents and
the Other Agreements to which they are or may in connection with the transactions contemplated hereby become a party, have been
or prior to the consummation of such transactions will be duly authorized by all requisite action on the part of the Company and
its Subsidiaries and do not and will not violate their respective Certificates of Incorporation or Bylaws or any law or any order
of any court, governmental authority or arbitrator, and do not and will not upon the consummation of the transactions contemplated
hereby conflict with, result in a breach of, or constitute a default under, or result in the imposition of any Lien (except Permitted
Liens) upon any assets of the Company or any of its Subsidiaries pursuant to the provisions of any loan agreement, indenture, mortgage,
security agreement, franchise, permit, license or other instrument or agreement by which the Company, any of its Subsidiaries,
or any of their properties are bound. Except as set forth on Schedule 4.4, no authorization, approval or consent of, and no filing
or registration with, any court, governmental authority or third Person is or will be necessary for the execution, delivery or
performance by the Company and its Subsidiaries of this Agreement, the Senior Loan Documents, the Acquisition Documents, and the
Other Agreements to which it is a party or the validity or enforceability thereof. All such authorizations, approvals, consents,
filings and registrations described in Schedule 4.4 have been obtained. Neither the Company nor its Subsidiaries is in violation
in any material respect of any term of its respective Certificates of Incorporation or Bylaws, or any contract, agreement, judgment
or decree and is in material compliance with all applicable laws, regulations and rules.

 

4.5          Environmental
Condition of the Property.

 

Except as disclosed
on Schedule 4.5:

 

(a)          The
location, construction, occupancy, operation and use of the Property do not violate any applicable law, statute, ordinance, rule,
regulation, order or determination of any governmental authority or other body exercising similar functions, or any restrictive
covenant or deed restriction (recorded or otherwise) affecting the Property, including, without limitation, all applicable zoning
ordinances and building codes, flood disaster, occupational health and safety laws and Environmental Laws and regulations (as referred
to in this Section 4.5, collectively, “applicable laws”), a violation of which would have a Material Adverse Effect;

 

(b)          Without
limitation of clause (a) of this Section 4.5, neither the Company, any of its Subsidiaries nor the Property is subject to any existing,
pending or to its knowledge threatened investigation or inquiry by any governmental authority or subject to any remedial obligations
due to violations of applicable laws;

 

(c)          Neither
the Company nor any of its Subsidiaries is subject to any liability or obligation relating to (i) the environmental conditions
on, under or about the Property, including, without limitation, the soil and ground water conditions at the Property, or (ii) the
use, management, handling, transport, treatment, generation, storage, disposal, release or discharge of any Hazardous Substance;

 

(d)          There
is no Hazardous Substance or other substance that may pose any material risk to safety, health or the environment on, under or
about any Property.

 

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(e)          The
Company and its Subsidiaries have taken reasonable steps to determine and hereby represent and warrant that no Hazardous Substances
have been disposed of or otherwise released on, onto, into, or from the Property, and the use which the Company and its Subsidiaries
make and intend to make of the Property does not and will not result in the disposal or other release of any Hazardous Substances
on, onto, into or from the Property; and

 

(f)          The
Company and its Subsidiaries have been issued all required material federal, state and local licenses, certificates or permits
relating to, and the Property, the Company, its Subsidiaries and their facilities, business, assets, leaseholds and equipment are
all in compliance in all material respects with all applicable federal, state and local laws, rules and regulations relating to,
air emissions, water discharge, noise emissions, solid or liquid waste disposal, Hazardous Substances, or other environmental,
health or safety matters.

 

4.6          Solvency.

 

After giving effect
to the transactions contemplated by the Senior Loan Documents, this Agreement, the Acquisition Documents, and the Other Agreements,
the Company and each of its Subsidiaries will be solvent, able to pay its debts as they mature, have capital sufficient to carry
on its business and all businesses in which it is about to engage, and:

 

(a)          the
assets of the Company and each of its Subsidiaries, at a fair valuation, exceed the total liabilities (including contingent, subordinated,
unmatured and unliquidated liabilities) of the Company or such Subsidiary;

 

(b)          current
projections which are based on underlying assumptions which provide a reasonable basis for the projections and which reflect the
Company's judgment based on present circumstances, the most likely set of conditions and the Company's and each of its Subsidiaries'
most likely course of action for the period projected, demonstrate that the Company and each of its Subsidiaries will have sufficient
cash flow to enable it to pay its debts as they mature; and

 

(c)          the
Company and each of its Subsidiaries does not have an unreasonably small capital base with which to engage in its anticipated business.

 

For purposes of clause
(a) of this Section 4.6, the “fair valuation” of the assets of the Company and each of its Subsidiaries shall be determined
on the basis of the amount which may be realized within a reasonable time, either through collection or sale of such assets at
market value, deeming the latter as the amount which could be obtained for the property in question within such period by a capable
and diligent businessperson from an interested buyer who is willing to purchase as a going concern under ordinary selling conditions.

 

4.7          Litigation
and Judgments.

 

Except as disclosed
on Schedule 4.7, there is no action, suit, proceeding or investigation before any court, governmental authority or arbitrator pending,
or to the knowledge of the Company threatened, against or affecting the Company or any of its Subsidiaries, or the transactions
contemplated by this Agreement, the Senior Loan Documents, the Acquisition Documents and/or any of the Other Agreements. Except
as disclosed on Schedule 4.7, there are no outstanding judgments against the Company or any of its Subsidiaries. None of the matters
listed on Schedule 4.7 are reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

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4.8          Rights
in Properties; Liens.

 

The Company and each
of its Subsidiaries have good and indefeasible title to all properties and assets reflected on its balance sheets, and none of
such properties or assets is subject to any Liens, except for Permitted Liens. The Company and each of its Subsidiaries enjoy peaceful
and undisturbed possession under all leases necessary for the operation of its other properties, assets, and businesses and all
such leases are valid and subsisting and are in full force and effect. There exists no default under any provision of any lease
which would permit the lessor thereunder to terminate any such lease or to exercise any rights under such lease which, individually
or together with all other such defaults, could have a Material Adverse Effect. Except as listed on Schedule 4.8, the Company and
each of its Subsidiaries have the exclusive right to use all of the Intellectual Property necessary to its business as presently
conducted, and the Company's and each of its Subsidiaries' use of the Intellectual Property do not infringe on the rights of any
other Person. To the best of the Company's knowledge, no other Person is infringing the rights of the Company in any of the Intellectual
Property. Neither the Company nor any of its Subsidiaries owes any royalties, honoraria or fees to any Person by reason of its
use of the Intellectual Property.

 

4.9          Enforceability.

 

This Agreement, the
Senior Loan Documents, the Acquisition Documents, and the Other Agreements to which the Company and its Subsidiaries are a party,
when delivered, shall constitute the legal, valid and binding obligations of the Company and its Subsidiaries, as the case may
be, enforceable against the Company and its Subsidiaries, as the case may be, in accordance with their respective terms.

 

4.10        Indebtedness.

 

Neither the Company
nor any of its Subsidiaries has any Indebtedness, except for Permitted Indebtedness. All Indebtedness owed by the Company or any
of its Subsidiaries to any Affiliate is set forth on Schedule 4.10.

 

4.11        Taxes.

 

The Company and each
of its Subsidiaries have filed all tax returns (federal, state, and local) required to be filed, including, without limitation,
all income, franchise, employment, property, and sales taxes, and has paid or established reserves on its books for all of its
tax liabilities, other than immaterial amounts and taxes that are being contested by the Company or such Subsidiary in good faith
by appropriate actions or proceedings diligently pursued, and for which adequate reserves in conformity with GAAP with respect
thereto have been established to the reasonable satisfaction of Purchaser. The Company knows of no pending investigation of the
Company or any of its Subsidiaries by any taxing authority or pending but unassessed tax liability of the Company or any of its
Subsidiaries. Neither the Company nor any of its Subsidiaries has made presently effective waiver of any applicable statute of
limitations or request for an extension of time to file a tax return, and neither the Company nor any of its Subsidiaries is a
party to any tax-sharing agreement.

 

    	11

    	 

    

 

4.12        Use
of Proceeds: Margin Securities.

 

The Company is not
engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or
carrying margin stock (within the meaning of Regulations T, U or X of the Board of Governors of the Federal Reserve System), and
no part of the proceeds of any extension of credit under this Agreement will be used to purchase or carry any such margin stock
or to extend credit to others for the purpose of purchasing or carrying margin stock. Neither the Company nor any Person acting
on its behalf has taken any action that might cause the transactions contemplated by this Agreement, the Senior Loan Documents,
the Acquisition Documents, or any of the Other Agreements to violate Regulations T, U or X or to violate the Exchange Act.

 

4.13        ERISA.

 

All members of any
Controlled Group have complied with all applicable minimum funding requirements and all other applicable and material requirements
of ERISA and the Code, applicable to the Employee Benefit Plans it or they sponsor or maintain, and there are no existing conditions
that would give rise to material liability thereunder. With respect to any Employee Benefit Plan, all members of any Controlled
Group have made all contributions or payments to or under each Employee Benefit Plan required by law, by the terms of such Employee
Benefit Plan and the terms of any contract or agreement. No Termination Event has occurred in connection with any Pension Plan,
and there are no unfunded benefit liabilities, as defined in Section 4001(a)(18) of ERISA, with respect to any Pension Plan which
pose a risk of causing a Lien to be created on the assets of the Company or any of its Subsidiaries or which will result in the
occurrence of a Reportable Event. No member of any Controlled Group has been required to contribute to a multiemployer plan, as
defined in Section 4001(a)(3) of ERISA. No material liability to the Pension Benefit Guaranty Corporation has been, or is expected
to be, incurred by any member of a Controlled Group. The term as referred to in this Section 4.13, includes any joint and several
liability. No prohibited transaction under ERISA or the Code has occurred with respect to any Employee Benefit Plan which could
have a Material Adverse Effect or a material adverse effect on the condition (financial or otherwise), of an Employee Benefit Plan.

 

4.14        Delivery
of Senior Loan Documents and Acquisition Documents.

 

Purchaser has received
complete copies of the Senior Loan Documents and all amendments thereto, waivers relating thereto and other side letters or agreements
affecting the terms thereof. The Senior Loan Documents are in full force and effect. None of such documents and agreements has
been amended or supplemented, nor have any of the provisions thereof been waived, except pursuant to a written agreement or instrument
which has heretofore been delivered to Purchaser.

 

Purchaser has received
complete copies of the Acquisition Documents and all amendments thereto, waivers relating thereto and other side letters or agreements
affecting the terms thereof. The Acquisition Documents are in full force and effect. None of such documents and agreements has
been amended or supplemented, nor have any of the provisions thereof been waived, except pursuant to a written agreement or instrument
which has heretofore been delivered to Purchaser.

 

    	12

    	 

    

 

4.15        Disclosure.

 

No representation or
warranty made by the Company or its Subsidiaries in this Agreement, the Senior Loan Documents, the Acquisition Documents or any
Other Agreement to which the Company or its Subsidiaries is a party contains any untrue fact or omits to state any material fact
necessary to make the statements herein or therein not misleading. There is no fact known to the Company or its Subsidiaries which
the Company or its Subsidiaries has determined has a Material Adverse Effect, or which the Company or its Subsidiaries has determined
could have a Material Adverse Effect, that has not been disclosed in writing to Purchaser.

 

4.16        Subsidiaries
and Capitalization.

 

Except as set forth
on Schedule 4.16, the Company has no Subsidiaries. All the issued and outstanding shares of capital stock of the Company and its
Subsidiaries are duly authorized, validly issued, fully paid and nonassessable. The capitalization of the Company and its Subsidiaries
on the Closing Date is set forth on Schedule 4.16. The Capital Stock of the Company and its Subsidiaries is owned by the Persons
and in the percentages set forth on Schedule 4.16. No violation of any preemptive rights of shareholders of the Company has occurred
by virtue of the transactions contemplated under this Agreement, the Senior Loan Documents, the Acquisition Documents or any Other
Agreement. Except as set forth on Schedule 4.16, there are no outstanding contracts, options, warrants, instruments, documents
or agreements binding upon the Company granting to any Person or group of Persons any right to purchase or acquire shares of the
Company's or any Subsidiaries’ Capital Stock, except pursuant to the Warrant Documents.

 

4.17        Current
Locations.

 

Schedule 4.17 identifies
(a) the Company's and each of its Subsidiaries' principal place of business and chief executive office, (b) all the locations where
the Company or any of its Subsidiaries maintains any books or records relating to any of its assets, (c) all other locations where
the Company or any of its Subsidiaries has a place of business, and (d) each address where any of the Company's or any of its Subsidiaries'
assets are located. Schedule 4.17 accurately indicates whether each such location is owned or leased, and, if leased, identifies
the owner of such location. No Person other than the Company or any of its Subsidiaries has possession of any material amount of
the assets of the Company or any of its Subsidiaries except as disclosed on Schedule 4.17.

 

4.18        Investment
Company Act.

 

Neither the Company
nor any company controlling the Company is required to be registered as an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.

 

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4.19        Securities
Laws.

 

The Company has complied
with or is exempt from the registration and/or qualification requirements of all federal and state securities or blue sky laws
applicable to the issuance or sale of the Senior Subordinated Note and the Warrant.

 

4.20        No
Labor Disputes.

 

Neither the Company
nor any of its Subsidiaries is involved in any labor dispute except as set forth on Schedule 4.7. There are no strikes or walkouts
or union organization of any of the Company's or any of its Subsidiaries' employees threatened or in existence and no labor contract
is scheduled to expire during the term of this Agreement.

 

4.21        Brokers.

 

Neither the Company,
any of its Subsidiaries, nor any of their shareholders has dealt with any broker, finder, commission agent or other Person in connection
with transactions referenced in or contemplated by this Agreement or the Other Agreements, nor is the Company, any of its Subsidiaries,
or any of their shareholders under any obligation to pay any broker's fee or commission in connection with such transactions, except
as set forth on Schedule 4.21.

 

4.22        Liens.

 

Purchaser's Liens attaching
to the Collateral will constitute at all times valid, perfected and enforceable Liens, subject to no prior or superior Lien except
for Permitted Liens. Before purchase of the Senior Subordinated Note, the Company will have taken or caused to be taken, or will
have participated with Purchaser in taking, all necessary action (including making all necessary filings) to provide Purchaser
with perfected Liens in the Collateral under the laws of all applicable jurisdictions subject only to Liens in favor of Senior
Lender.

 

4.23        Insurance.

 

The amount and types
of insurance carried by the Company and its Subsidiaries, and the terms and conditions thereof, are substantially similar to the
coverage maintained by companies in the same or similar business as the Company and its Subsidiaries and similarly situated, including
directors and officers insurance.

 

4.24        Conduct
of Business.

 

On the Closing Date,
the Company, the Target and their respective Subsidiaries are engaged only in the business of engineering, manufacturing and sale
of foam rubber and plastic components used in noise, vibration and harshness (“NVH”), acoustic management, water and
air sealing, and other functional applications within the North American automobile and heavy duty truck markets.

 

4.25        Officers,
Directors, Management Group, Etc.

 

None of the Company's
or its Subsidiaries' officers, directors, or executive employees has been convicted of a felony or been the subject of a criminal,
regulatory or governmental investigation or proceeding. No member of the Management Group has any known serious health issues which
would interfere with such member's ability to perform his or her management duties in the ordinary course of the Company's and
its Subsidiaries' business.

 

    	14

    	 

    

 

4.26        Foreign
Assets Control Regulations and Anti-Money Laundering.

 

(a)          The
Company (i) is not, to the Company's knowledge, a Person whose Property or interest in Property is blocked or that has been determined
to be subject to blocking pursuant to Section 1 of Executive Order 13224 of September 13, 2001 Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) does not knowingly
engage in any dealings or transactions prohibited by Section 2 of such executive order, or otherwise knowingly associate with any
such Person in any manner violative of Section 2, and (iii) is not a Person on the list of Specially Designated Nationals and Blocked
Persons published by the Office of Foreign Assets Control of the U.S. Department of Treasury on June 24, 2003, as updated from
time to time, or, to the Company's knowledge, subject to the limitations or prohibitions under any other U.S. Department of Treasury's
Office of Foreign Assets Control regulation or executive order.

 

(b)          The
Company is in compliance, in all material respects, with the Patriot Act. No part of the proceeds of the sale of the Senior Subordinated
Note will be used, directly or indirectly, for any payments to any government official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

 

5.            CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER

 

Purchaser's obligations
hereunder shall be subject to (a) the performance by the Company of its obligations hereunder which by the terms hereof are to
be performed at or prior to delivery of the Senior Subordinated Note, and (b) the satisfaction of the following conditions on or
before the Closing Date:

 

5.1          Effectiveness
of Senior Loan Documents.

 

The Senior Loan Documents
shall be in full force and effect and shall be on terms and conditions satisfactory to Purchaser. All conditions precedent to the
making of the Senior Loans shall have been satisfied or waived with Purchaser's consent and the Senior Debt shall have been funded
prior to or contemporaneous with the funding of the Senior Subordinated Obligations.

 

5.2          Effectiveness
of Subordination Agreement.

 

The Subordination Agreement
shall have been duly executed and delivered by the parties thereto, and shall be on terms and conditions which are satisfactory
to Purchaser.

 

5.3          Minimum
Availability.

 

The Company shall have
available cash and immediately accessible availability (net of standby letters of credit which may be issued under the Senior Loan
Documents) under the Senior Loan Documents in an aggregate amount equal to not less than $2,000,000 on the Closing Date after giving
effect to the payment of (a) all fees payable to Purchaser under the terms of this Agreement and the Other Agreements, and (b)
all costs and expenses arising as a result of the transactions contemplated by this Agreement, the Senior Loan Documents, the Acquisition
Documents, and the Other Agreements to which the Company or its Subsidiaries is a party, and Purchaser shall have received satisfactory
evidence thereof, including a completed borrowing base certificate in the form required under the Senior Loan Documents.

 

    	15

    	 

    

 

5.4          Stockholders
Equity.

 

Stockholders equity
of the Buyer shall be not less than $13,500,000 on the Closing Date (excluding any GAAP purchase accounting adjustments), and Purchaser
shall have received satisfactory evidence thereof.

 

5.5          No
Litigation; Consummation of Transactions.

 

No injunction, preliminary
injunction, or temporary restraining order shall be threatened or shall exist which prohibits or may prohibit the transactions
contemplated herein or any other related transaction, and no litigation or similar proceeding (including, without limitation, any
litigation or other proceeding seeking injunctive or similar relief) shall be threatened or shall exist or any development with
respect to any pending litigation shall occur, with respect to the Company, its Subsidiaries or the transactions contemplated herein,
which, if adversely determined, could in the judgment of Purchaser have a Material Adverse Effect.

 

5.6          Documents.

 

Purchaser shall have
received the following, each in form and substance satisfactory to Purchaser:

 

(a)          Senior
Subordinated Note. The Senior Subordinated Note issued in the name of Purchaser, duly executed by the Company, along with all of
the Other Documents, (including joinders executed by Target and its Subsidiaries (other than UFM)) duly executed by all parties
thereto;

 

(b)          Stock
and Stock Documents. Certificates representing the Stock, duly issued by the Buyer to Purchaser, along with the other fully executed
Stock Documents and all other documents and instruments required pursuant thereto;

 

(c)          Security
Documents and Other Agreements. The Security Documents, the Subordination Agreement and all Other Agreements, duly executed by
the parties thereto;

 

(d)          Approvals
and Consents. Copies, certified by the Company, of all consents, authorizations, filings, licenses and approvals, if any, required
in connection with the execution, delivery and performance by the Company or its Subsidiaries, or the validity and enforceability
of, this Agreement, the Senior Loan Documents or the Other Agreements to which the Company or its Subsidiaries is a party;

 

(e)          Opinion
of Counsel to the Company and the Shareholders. The written legal opinion of Sills Cummis & Gross P.C., legal counsel to the
Company and its United States Subsidiaries, with respect to matters relating to the Company, its Subsidiaries and their shareholders
in form and substance acceptable to Purchaser, and a written legal opinion of counsel to the shareholders with respect to the enforceability
of the Shareholders Agreement in form and substance acceptable to Purchaser;

 

    	16

    	 

    

 

(f)          General
Certificate of the Company's and each United States Subsidiary's Secretary. A certificate of the Secretary of the Company and each
of its United States Subsidiaries together with true, correct and complete copies of the following:

 

(i)          Certificates
of Incorporation. The Certificates of Incorporation of the Company and each of its Subsidiaries, including all amendments thereto,
certified by the Secretary of State of the state of its incorporation and dated within thirty (30) days prior to the Closing Date;

 

(ii)         Bylaws.
The Bylaws of the Company and each of its Subsidiaries, including all amendments thereto;

 

(iii)        Resolutions.
The resolutions of the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement
and the Other Agreements to which the Company is a party;

 

(iv)        Existence
and Good Standing Certificates. Certificates of the appropriate government officials of the state of incorporation of the Company
and each of its Subsidiaries as to its existence and good standing, and certificates of the appropriate government officials in
each state where the Company or any of its Subsidiaries does business and where failure to qualify as a foreign corporation would
have a Material Adverse Effect, as to its good standing and due qualification to do business in such state, each dated within thirty
(30) days prior to the Closing Date; and

 

(v)         Incumbency.
The names of the officers of the Company and its Subsidiaries authorized to sign this Agreement, the Senior Loan Documents, the
Acquisition Documents and the Other Agreements to be executed by the Company and its Subsidiaries, together with a sample of the
true signature of each such officer;

 

(g)          Senior
Loan Documents. Copies of the Senior Loan Documents and each document relating thereto, and a certificate of the President of the
Company certifying that such copies are true, correct and complete;

 

(h)          Acquisition
Documents. Copies of the Acquisition Documents and each document relating thereto, and a certificate of the President of the Company
certifying that such copies are true, correct and complete;

 

(i)           Solvency
Certificate. A certificate regarding the solvency of the Company and each of its Subsidiaries, which includes a pro forma balance
sheet and cash flow projections for the Company and each of its Subsidiaries, executed on behalf of the Company and each Subsidiary
by the President of the Company and such Subsidiary;

 

(j)           Sources
and Uses Certificate. A certificate executed on behalf of the Company by the President of the Company, setting forth in reasonable
detail the sources and uses of funds in the transactions contemplated hereby and by the Other Agreements;

 

    	17

    	 

    

 

(k)          Equity
Certificate. A certificate executed on behalf of the Company by the President of the Company detailing the shareholder's equity
as of the Closing Date;

 

(l)           Pro
Forma Covenant Compliance Certificate. A certificate executed on behalf of the Company by the President of the Company, setting
forth in reasonable detail compliance by the Company with the covenants set forth in Sections 7.9, 7.10, and 7.11 and in the Senior
Loan Agreement, as of the month end preceding the Closing Date and after taking into account the transactions contemplated by this
Agreement, the Other Agreements, and the Senior Loan Documents, in form and substance satisfactory to Purchaser;

 

(m)         Trailing
Twelve Month Financial Information.         Monthly financial information of the Company,
including without limitation Capital Expenditures, and calculation of EBITDA for the trailing twelve months ending immediately
prior to the Closing Date, in the form attached hereto as Exhibit C;

 

(n)          Communication
with Accountants. Purchaser shall have received a copy of a letter from the Company addressed to its accountants authorizing such
accountants to disclose to Purchaser any and all financial information concerning the Company and its Subsidiaries requested by
Purchaser in determining compliance with any of the financial covenants set forth in Sections 7.9, 7.10 and 7.11 and as otherwise
contemplated by Section 6.4, together with written authorization from the accountants reviewing or auditing the financial statements
of the Company confirming that the Purchaser is authorized to rely on such auditor's reports in form and substance acceptable to
Purchaser;

 

(o)          Transaction
Certificate. A certificate executed on behalf of the Company by the President of the Company that, to the best of their knowledge
after due investigation, all conditions precedent to the effectiveness of this Agreement have been satisfied or waived;

 

(p)          Liens.
Evidence satisfactory to Purchaser that as of the Closing Date Purchaser has a second priority Lien on all of the Company’s
assets and Collateral;

 

(q)          Additional
Information, Other Documents and Agreements. Such other information, documents, agreements, commitments and undertakings as Purchaser
or Purchaser's counsel may reasonably request.

 

(r)          Insurance
Certificates. Certificates evidencing insurance coverages in full force and compliance with Section 6.13 hereof.

 

5.7          Material
Adverse Change.

 

For the period from
November 30, 2012 to the Closing Date, and except for the transactions contemplated by this Agreement, the Other Agreements, the
Acquisition Documents and the Senior Loan Documents, there shall have been (a) no occurrence or event which, in Purchaser's opinion,
has or could have a Material Adverse Effect on the Company or the Target, and (b) no occurrence or event which would lead the Company
or Purchaser to believe that the Company would fail to meet the cash flow projections delivered to Purchaser pursuant to Section
4.2.

 

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5.8          Origination
Points; Other Expenses.

 

Origination points
in the aggregate amount set forth in Section 1.3 shall have been paid to Purchaser. All other fees then payable pursuant to this
Agreement (including the fees, expenses and disbursements of the Purchaser's counsel) shall have been paid to Purchaser (or such
counsel, as applicable).

 

5.9          No
Default or Event of Default.

 

No Default or Event
of Default shall have occurred and be continuing.

 

5.10       Representations
and Warranties.

 

All representations
and warranties contained in this Agreement, the Senior Loan Documents, and the Other Agreements shall be true and correct on the
Closing Date.

 

5.11       Due
Diligence.

 

The Purchaser shall
have completed to its satisfaction its business and legal due diligence with respect to the Company and its Subsidiaries.

 

5.12       Acquisition
Consummated.

 

The Acquisition Documents
shall be in full force and effect on terms and conditions satisfactory to Purchaser and in transactions anticipated thereby shall
have been consummated.

 

5.13       Employment
Agreements and Covenants.

 

All members of the
Management Group shall enter into employment agreements and/or covenants not to compete in form and substance acceptable to Purchaser.

 

6.            AFFIRMATIVE
COVENANTS

 

The Company covenants
and agrees that, from the date hereof and until all of the Senior Subordinated Obligations have been finally and irrevocably paid
in full in accordance with the terms hereof and thereof (unless waived in writing by Purchaser at its sole discretion):

 

6.1          Financial
Statements.

 

The Company will furnish
to Purchaser:

 

(a)          As
soon as available, and in any event within one hundred twenty (120) days after the end of each fiscal year of the Company, beginning
with the fiscal year ending December 31, 2012, (i) a copy of the annual audit report of the Company and its Subsidiaries for such
fiscal year containing consolidated and consolidating balance sheets, statements of income, statements of stockholders' equity,
and statements of cash flows as at the end of such fiscal year and for the fiscal year then ended, in each case setting forth in
comparative form the figures for the preceding fiscal year, all in reasonable detail and audited and certified by an independent
certified public accountant of recognized regional or national standing selected by the Company and consented to by Purchaser to
the effect that such report has been prepared in accordance with GAAP; and (ii) a comparison of the actual results during such
fiscal year to those originally budgeted by the Company prior to the beginning of such fiscal year, together with a summary analysis
of variances prepared by the Company's management. The annual audit report required hereby shall not be qualified or limited. The
Company shall deliver copies of all material reports and correspondence sent to the Company or its Subsidiaries by its independent
certified public accountants promptly upon receipt thereof.

 

    	19

    	 

    

 

(b)          As
soon as available, and in any event within thirty (30) days after the end of each calendar month, (i) a copy of an unaudited financial
report of the Company as of the end of such calendar month and for the portion of the fiscal year then ended, containing a consolidated
and consolidating balance sheet, statement of income, and statement of cash flows for each of the Company and its Subsidiaries,
in each case setting forth in comparative form the figures for the corresponding period of the preceding fiscal year, together
with a comparison of the actual results during such period to those originally budgeted by the Company for such period, and a management
discussion and analysis which shall address the items described in Schedule 6.1(b) hereto, and (ii) copies of borrowing
base certificates, covenant compliance certificates and all other documents or information required to be delivered by the Company
and/or its Subsidiaries to the Senior Lender under the Senior Loan Documents.

 

(c)          On
or before the fifteenth (15th) day of the first month of each fiscal year of the Company, an annual budget or business
plan for such fiscal year on a monthly basis, including projected consolidated and consolidating balance sheets, income statements,
and cash flow statements for each month of such fiscal year, and, at the beginning of each fiscal quarter, all revisions thereto
approved by the Board of Directors of the Company.

 

6.2          Certificates;
Other Information.

 

The Company will furnish
to Purchaser all of the following:

 

(a)          Concurrently
with the delivery of each of the financial statements referred to in Section 6.1 (a) and within thirty (30) days of the end of
each fiscal quarter commencing with the fiscal quarter ending on March 31, 2013, a certificate of an authorized officer of the
Company in the form of the Covenant Compliance Certificate attached hereto as Exhibit B, (i) stating that no Default or Event of
Default has occurred and is continuing or, if such officer has knowledge of a Default or Event of Default, the nature thereof and
specifying the steps taken or proposed to remedy such matter, (ii) showing in reasonable detail the calculations showing compliance
with Sections 7.9, 7.10, and 7.11, (iii) stating that the financial statements attached have been prepared in accordance with GAAP
and fairly and accurately present (subject to normal year-end audit adjustments, for the annual certificates) the financial condition
and results of operations of the Company and its Subsidiaries at the date and for the period indicated therein, (iv) containing
summary details of revenues, (v) containing a schedule of the outstanding Indebtedness for borrowed money of the Company and its
Subsidiaries describing in reasonable detail each such debt issue or loan outstanding and the principal amount and amount of accrued
and unpaid interest with respect to each such debt issue or loan, and (vi) reporting on any material adverse change in the relationship
between the Company or any of its Subsidiaries and any of their suppliers, franchisees, or customers.

 

    	20

    	 

    

 

(b)          As
soon as available, (i) a copy of each financial statement, report, notice or proxy statement sent by the Company or any of its
Subsidiaries to its shareholders in their capacity as shareholders, (ii) a copy of each regular, periodic or special report, registration
statement, or prospectus filed by the Company or any of its Subsidiaries with any securities exchange or the Commission or any
successor agency, (iii) any material order issued by any court, governmental authority, or arbitrator in any material proceeding
to which the Company or any of its Subsidiaries is a party, (iv) copies of all press releases and other statements made available
generally by the Company or any of its Subsidiaries to the public generally concerning material developments in the Company's or
any of its Subsidiaries' business, and (v) copies of all material correspondence to or from the Senior Lender.

 

(c)          Promptly
upon Purchaser's reasonable request, (i) a report containing management's discussion and analysis of the business and affairs of
the Company and its Subsidiaries which includes, but is not limited to, a discussion of the results of operations compared to those
originally budgeted for such period, (ii) a report detailing all matters materially affecting the value, enforceability or collectability
of any material portion of its assets, including without limitation, the Company's or any Subsidiaries' reclamation or repossession
of, or the return to the Company or any of its Subsidiaries of, a material amount of goods or material claims or disputes asserted
by any customer or other obligor, and (iii) such additional information concerning the Company or any of its Subsidiaries as Purchaser
may reasonably request.

 

6.3          Books
and Records.

 

The Company and its
Subsidiaries will keep (a) proper books of record and account in which full, true and correct entries will be made of all dealings
or transactions of or in relation to its business and affairs; (b) set up on its books accruals with respect to all taxes, assessments,
charges, levies and claims; and (c) on a reasonably current basis set up on its books from its earnings allowances against doubtful
receivables, advances and investments and all other proper accruals (including, without limitation, accruals for premiums, if any,
due on required payments and accruals for depreciation, obsolescence, or amortization of properties), which should be set aside
from such earnings in connection with its business. All determinations pursuant to this subsection shall be made in accordance
with, or as required by, GAAP.

 

6.4          Financial
Disclosure.

 

The Company hereby
irrevocably authorizes and directs, and agrees to cause its Subsidiaries to irrevocably authorize and direct all accountants and
auditors employed by it at any time during the term of this Agreement to exhibit and deliver to Purchaser copies of any of the
Company's or any of its Subsidiaries' financial statements, trial balances, work papers or other accounting records of any sort
in the accountant's or auditor's possession, and to disclose to Purchaser any information they may have concerning the Company's
or any of its Subsidiaries' financial status and business operations. On the Closing Date by letter in form and substance satisfactory
to the Purchaser, the Company shall advise its current accountants of the provisions of this Section 6.4 and in such letter and
thereafter in connection with each audit of the Company, the Company shall advise such accountants in writing that the audit of
the financial statements of the Company and its Subsidiaries shall be for the benefit of, and delivered to, the Senior Lender and
the Purchaser and such parties shall be entitled to rely thereon. The Company hereby irrevocably authorizes and agrees to cause
its Subsidiaries to irrevocably authorize all federal, state and municipal authorities to furnish to Purchaser copies of reports
or examinations relating to the Company, whether made by the Company or otherwise.

 

    	21

    	 

    

 

6.5          Accountants.

 

Company will retain,
and cause each of its Subsidiaries to retain, independent public accountants who will certify the consolidated and consolidating
financial statements of the Company and its Subsidiaries at the end of each fiscal year, and in the event that the services of
the independent public accountants so selected, or any firm of independent public accounts hereafter employed by Company or its
Subsidiaries, are terminated, the Company will promptly thereafter notify Purchaser and upon Purchaser's request, the Company will
request or cause to be requested the firm of independent public accountants whose services are terminated to deliver (without liability
to such firm) to Purchaser a letter from such firm setting forth the reasons for the termination of their services and in its notice
to Purchaser the Company will state whether the change of accountants was recommended or approved by the board of directors of
the Company or its Subsidiaries or any committee thereof. Any independent accountants reviewing or auditing the financial statements
of the Company will deliver to the Purchaser written confirmation, in form and substance acceptable to Purchaser, that the Purchaser
is authorized to rely on such auditor's reports.

 

6.6          Disclosure
of Material Matters.

 

The Company will, immediately
upon learning thereof, report to Purchaser (a) all matters materially affecting the value, enforceability or collectability of
any material portion of the Collateral or its other assets including, without limitation, changes to significant contracts, schedules
of equipment, changes of significant equipment or real property, the reclamation or repossession of, or the return to the Company
of, a material amount of goods and material claims or disputes asserted by any customer or other obligor, and (b) any material
adverse change in the relationship between the Company and any of its suppliers or customers.

 

6.7          Performance
of Obligations.

 

The Company will duly
and punctually pay and/or perform, and will cause its Subsidiaries to duly punctually pay and/or perform, its obligations under
this Agreement, the Senior Loan Documents, the Acquisition Documents and the Other Agreements to which it is a party.

 

6.8          Preservation
of Existence and Conduct of Business.

 

The Company will and
will cause each of its Subsidiaries to preserve and maintain its corporate existence and all of its leases, privileges, franchises,
qualifications and rights that are necessary or useful in the ordinary conduct of its business, and conduct its business as presently
conducted in an orderly and efficient manner in accordance with good business practices.

 

    	22

    	 

    

 

6.9          Maintenance
of Properties.

 

The Company will and
will cause each of its Subsidiaries to operate and maintain in good condition and repair (ordinary wear and tear excepted) and
replace as necessary, all of its assets and properties which are necessary or useful in accordance with sound business practices
in the proper conduct of its business so that the value and operating efficiency of its assets and properties are maintained and
preserved. The Company will and will cause each of its Subsidiaries to at all times maintain the Intellectual Property in full
force and effect, and will defend and protect the Intellectual Property against all adverse claims.

 

6.10        Payment
of Taxes and Claims.

 

The Company will and
will cause each of its Subsidiaries to pay or discharge, at or before maturity or before becoming delinquent (a) all taxes, levies,
assessments, vault, water and sewer rents, rates, charges, levies, permits, inspection and license fees and other governmental
and quasi-governmental charges and any penalties or interest for nonpayment thereof, heretofore or hereafter imposed or which may
become a Lien upon any property owned by the Company or any of its Subsidiaries or arising with respect to the occupancy, use,
possession or leasing thereof (collectively the “Impositions”) and (b) all lawful claims for labor, material, and supplies,
which, if unpaid, might become a Lien upon any of its property; provided, however, neither the Company nor any of its Subsidiaries
will be required to pay or discharge any claim for labor, material, or supplies or any Imposition which is being contested in good
faith by appropriate actions or proceedings diligently pursued, and for which adequate reserves in conformity with GAAP with respect
thereto have been established to the reasonable satisfaction of Purchaser.

 

6.11        Compliance
with Laws.

 

The Company will and
will cause each of its Subsidiaries to comply with all acts, rules, regulations and orders of any legislative, administrative or
judicial body or official applicable to the operation of the Company's or any of its Subsidiaries' business if noncompliance with
such acts, rules, regulations or orders could have a Material Adverse Effect; provided, however, the Company and each of its Subsidiaries
may contest or dispute any acts, rules, regulations, orders and directions of those bodies or officials by appropriate actions
or proceedings diligently pursued, if adequate reserves in conformity with GAAP with respect thereto are established to the reasonable
satisfaction of Purchaser.

 

6.12        Payment
of Leasehold Obligations.

 

The Company will and
will cause each of its Subsidiaries to at all times pay, when and as due, its rental obligations under all leases under which it
is a tenant or lessee, and shall otherwise comply, in all material respects, with all other terms of such leases and keep them
in full force and effect and, at Purchaser's request, will provide evidence of its having done so; provided, however, the Company
and each of its Subsidiaries may contest or dispute its obligations under such leases by appropriate actions or proceedings diligently
pursued if adequate reserves in conformity with GAAP with respect thereto are established to the reasonable satisfaction of Purchaser.

 

    	23

    	 

    

 

6.13        Insurance.

 

The Company will and
will cause each of its Subsidiaries to maintain, with financially sound, reputable and solvent companies, insurance policies (a)
insuring its assets against loss by fire, explosion, theft and other risks and casualties as are customarily insured against by
companies engaged in the same or a similar business, (b) insuring it against liability for personal injury and property damages
relating to its assets, such policies to be in such amounts and covering such risks as are usually insured against by companies
engaged in the same or a similar business, (c) insuring the lives of each of John Weinhardt and Tom Tekiele in the amount of $2,000,000
each, (d) affording directors and officers insurance from an insurer rated “A” or better which covers any Invitee
or Designee of the Purchaser to the Company's Board of Directors in an amount of at least $3,000,000, with a deductible not to
exceed $25,000, and is otherwise acceptable to Purchaser, and insuring such other matters as may from time to time be requested
by Purchaser. All general liability policies shall be endorsed in favor of Purchaser as an additional insured. The life insurance
described in subclause (c) shall be collaterally assigned to Purchaser pursuant to the Assignment of Life Insurance and any proceeds
therefrom shall be applied to payment of the Senior Subordinated Obligations as provided in such Assignment. The Company shall
provide copies of all such insurance policies to Purchaser and copies of comparable policies to the Senior Lender (all in a form
consistent with the collateral priorities set forth in the Subordination Agreement and acceptable to Purchaser) within ten (10)
days following Purchaser's request for the same. The Company shall (i) deliver all such policies to Purchaser immediately upon
the Company's or any of its Subsidiaries' receipt thereof, (ii) pay, or cause to be paid, all premiums for such insurance at least
thirty (30) days before such premiums become due, (iii) furnish to Purchaser satisfactory proof of the timely making of such payments,
(iv) deliver all renewal policies to Purchaser at least thirty (30) days before the date the expiration date of each expiring policy,
(v) cause such policies to require the insurer to give written notice to Purchaser of termination or material modification of any
such policy at least thirty (30) days before such termination or material modification is to be effective, (vi) deliver certificates
or other proofs of insurance to Purchaser annually within thirty (30) days prior to the anniversary of the date hereof, and (vii)
immediately deliver written notice to the Purchaser of any casualty loss affecting the Collateral. If the Company or any of its
Subsidiaries fails to provide and pay for any such insurance, Purchaser may, at its option, but shall not be required to, pay the
same and charge the Company therefor. Notwithstanding the foregoing, the Company shall have ninety (90) days from the Closing Date
to procure the insurance described in subclause (c) above.

 

6.14        Inspection
Rights.

 

At any reasonable time
and from time to time, the Company will and will cause each of its Subsidiaries to permit representatives of Purchaser to examine
and make copies of the books and records of, and visit and inspect the properties of, the Company and its Subsidiaries, and to
discuss the business, operations, and financial condition of the Company and its Subsidiaries with its respective officers and
employees and with its independent certified public accountants. Such examinations and inspections may include, but are not limited
to, audits of the application of proceeds from the Senior Subordinated Note. In accordance with the terms of Section 12.1 hereof,
the Company will promptly reimburse Purchaser for all expenses incurred by representatives of Purchaser in connection with such
inspections and loan monitoring. Upon the request of Purchaser, no more than once per calendar year the Company shall cause its
President and Chief Financial Officer to visit Purchaser at Purchaser's offices in Detroit, Michigan, to consult with respect to
the Senior Subordinated Obligations, the Company's business and such other matters as the Purchaser may reasonably request.

 

    	24

    	 

    

 

6.15        Notices.

 

The Company will promptly,
but in any event within five (5) Business Days after the President or Chief Financial Officer first becoming aware thereof, notify
Purchaser in writing of:

 

(a)          the
commencement of any event, including but not limited to, any action, suit, or proceeding against the Company or any of its Subsidiaries,
that could have a Material Adverse Effect, which notice shall specify the nature of such event and what action the Company or such
Subsidiary has taken or is taking or proposes to take with respect thereto;

 

(b)          the
occurrence of an event of default, or an event which with the passage of time or giving of notice or both constitutes an event
of default under the Senior Loan Documents or under any instrument or agreement evidencing any other Indebtedness of the Company
or any of its Subsidiaries, which notice shall specify the nature of such event, condition or default and what action the Company
or such Subsidiary has taken or is taking or proposes to take with respect thereto; or

 

(c)          The
occurrence of a Default or an Event of Default, which notice shall specify the nature of such event, condition or default and what
action the Company has taken or is taking or proposes to take with respect thereto.

 

Any notification required
by this Section 6.15 shall be accompanied by a certificate of the Company, executed on its behalf by the President or Chief Financial
Officer setting forth the details of the specified events and the action which the Company or any of its Subsidiaries proposes
to take with respect thereto.

 

6.16        Senior
Loan Document Amendments.

 

The Company shall promptly
provide Purchaser with copies of all proposed amendments to the Senior Loan Documents and of all other agreements evidencing or
relating to Indebtedness to which the Company is a party.

 

6.17        Further
Assurances.

 

The Company shall execute
and deliver, and shall cause to be executed and delivered, to Purchaser from time to time, upon demand, such supplemental agreements,
statements, assignments and transfers, or instructions or documents as Purchaser may reasonably request, in order that the full
intent of this Agreement and the Other Agreements may be carried into effect.

 

6.18        Compliance
with ERISA and the Code.

 

The Company will comply,
and will cause each other member of any Controlled Group to comply, with all minimum funding requirements, and all other material
requirements, of ERISA and the Code, if applicable, to any Employee Benefit Plan it or they sponsor or maintain, so as not to give
rise to any liability thereunder. The Company will pay and will cause each other member of any Controlled Group to pay when due
any amount payable by it to the Pension Benefit Guaranty Corporation. Promptly after the filing thereof, the Company shall furnish
to Purchaser with regard to each Employee Benefit Plan, copies of each annual report required to be filed pursuant to Section 104
of ERISA in connection with each such plan for each plan year.

 

    	25

    	 

    

 

6.19        Compliance
with Regulations T, U and X.

 

Neither the Company
nor any Person acting on its behalf will take any action which might cause this Agreement, the Senior Subordinated Note, the Senior
Loan Documents or any Other Agreements to violate, and the Company will take all actions necessary to cause compliance with, Regulations
T, U and X of the Board of Governors of the Federal Reserve System and the Exchange Act, in each case as now in effect or as the
same may hereafter be in effect.

 

6.20        Fiscal
Year.

 

The Company will cause
and will cause its Subsidiaries to cause their fiscal year to be the twelve month period ending December 31 of each year.

 

6.21        Environmental
Costs.

 

(a)          The
Company hereby indemnifies and holds Purchaser harmless from and against any liability, loss, damage, suit, action or proceeding
pertaining to solid or hazardous waste materials or other waste-like or toxic substances, including, but not limited to, claims
of any federal, state or municipal government or quasi-governmental agency or any third person, whether arising under any federal,
state or municipal law or regulation, or tort, contract or common law that relates to the Company or any of its Subsidiaries.

 

(b)          To
the extent the laws of the United States or any state in which property, leased or owned, of the Company or any of its Subsidiaries
provide that a Lien upon the property of the Company or any of its Subsidiaries may be obtained for the removal of Hazardous Substances
which have been released, no later than sixty (60) days after notice is given by Purchaser to the Company, the Company shall deliver
to Purchaser a report issued by a qualified, third party environmental consultant selected by the Company and approved by Purchaser
as to the existence of any Hazardous Substances located upon or beneath the specified property, leased or owned by the Company
or any of its Subsidiaries. To the extent any such Hazardous Substance is located therein or thereunder that either (i) subjects
the property to Lien or (ii) requires removal to safeguard the health of any Person, the Company shall remove, or cause to be removed,
such Lien and such Hazardous Substance at the Company's expense.

 

6.22        Management.

 

The Company will cause
members of the Management Group (so long as they continue to work for the Company) to devote substantially all of their time to
the management of the Company.

 

6.23        Inspection;
Board of Directors.

 

(a)          The
Company and its Board of Directors will permit any representative designated by the Purchaser to (i) visit and inspect any of the
properties of the Company; (ii) examine the corporate and financial records of the Company, and make copies thereof or extracts
therefrom, and (iii) discuss the affairs, finances, and accounts of the Company with the directors, officers, key employees, and
independent accounts of the Company.

 

    	26

    	 

    

 

(b)          (i)            The
Buyer and its Board of Directors will (A) permit the Purchaser, or the Purchaser's designee, to have one (1) individual authorized
to attend all Board or Directors meetings of the Buyer or any committees thereof (the "Invitee"); and (B) permit the
Purchaser to call a meeting of the Board of Directors of the Company or any committee thereof; (iii) provide such Invitee not less
than five (5) Business Days’ actual notice of all regular meetings and two (2) Business Days’ actual notice of all
special meetings of the Buyer’s Board of Directors or any committee thereof; and (iv) provide to such Invitee a copy of all
materials and information distributed at or prior to such meetings or otherwise to the directors of the Company or members of any
committee thereof.

 

(ii)          To the
extent set forth in the Stockholders Agreement, if there are any Subdebt Shares outstanding (as defined in the Stockholders Agreement)
and there are Senior Subordinated Obligations outstanding, the Purchaser shall have the right under Section 5(a)(ii)(B) of the
Stockholders Agreement to (A) appoint two (2) voting members to the Buyer’s Board of Directors, and (B) upon the occurrence
and continuance of any Event of Default specified in Section 8.1 of this Agreement, to appoint one (1) additional voting member
to the Buyer's Board of Directors (each a "Designee").

 

(iii)         To
the extent set forth in the Stockholders Agreement, if there are any Subdebt Shares outstanding but all of the Senior Subordinated
Obligations have been paid in full, the Purchaser shall have the right under Section 5(a)(ii)(B) of the Stockholders Agreement
to appoint two (2) voting members to the Buyer’s Board of Directors, but shall not have a right upon the occurrence and continuance
of any Event of Default specified in Section 8.1 of this Agreement to appoint any additional voting members to the Buyer's Board
of Directors.

 

(iv)         To
the extent set forth in the Stockholders Agreement, if there are no Subdebt Shares outstanding but there are Senior Subordinated
Obligations outstanding, the Purchaser shall have the right under Section 5(a)(ii)(B) of the Stockholders Agreement to (A) appoint
one (1) voting member to the Buyer’s Board of Directors, and (B) upon the occurrence and continuance of any Event of Default
specified in Section 8.1 of this Agreement, to appoint one (1) additional voting member to the Buyer's Board of Directors.

 

(v)          The
Purchaser's right to appoint a Designee upon an Event of Default shall cease when the Event of Default is cured but this Section
6.23 shall continue in full force and effect such that the right to appoint a Designee in the future upon the occurrence and continuance
of any Event of Default specified above.

 

(vi)         In
those situations where the Purchaser is entitled to appoint a Designee as a result of an Event of Default under clause (ii) of
this subsection, the Purchaser either, at its option, may designate the Chief Executive Officer of the Company as its Designee
or remove the Chief Executive Officer as a Board member and appoint a different individual as its Designee.

 

    	27

    	 

    

 

(vii)        The
rights of the Purchaser hereunder are not transferable to any Transferee (as defined in the Stockholders Agreement), whether or
not such Transferee is an Affiliate or a Permitted Transferee (each as defined in the Stockholders Agreement).

 

(c)          Meetings
of the Board of Directors of the Buyer will be held at least quarterly, and at least on meeting per year will be held in person.
The Buyer will cause its Board of Directors to call a meeting at any time upon the request of the Designee or Invitee. The Designee
or Invitee may not be removed without the consent of the Purchaser. The Buyer and its Board of Directors further agree that the
Buyer's Board of Directors shall have no more than seven (7) members (even in those instances when the Purchaser exercises its
rights under this subsection and Section 5(a)(ii)(B) of the Stockholders Agreement to appoint a Designee upon an Event of Default).
The Purchaser may, at any time, terminate its rights under this Section 6.23 by providing written notice of such termination to
the Buyer.

 

(d)          In
addition to any other rights or remedies to which the Purchaser and the Holders may be entitled, the Company agrees to and will
indemnify and hold harmless the Purchaser, the Holders, their Affiliates and all of their respective successors, assigns, officers,
directors, employees, attorneys, and agents (individually and collectively, an "Indemnified Party") from and against
any and all losses, claims, obligations, liabilities, deficiencies, diminutions in value, penalties, causes of action, damages,
costs, and expenses (including, without limitation, costs of investigation and defense, reasonable attorneys' fees and expenses)
that the Indemnified Party may suffer, incur, or be responsible for, arising or resulting from the exercise of rights pursuant
to this Section 6.23 and/or anyone's service or status as an "Invitee" or "Designee". The foregoing indemnification
includes any such claims, actions, damages, costs and expenses incurred by reason of the comparative or contributory negligence
of the Person indemnified, but excludes any of the same incurred by reason of such Person's gross negligence or willful misconduct
as determined by a final and nonappealable judgment of a court of competent jurisdiction.

 

6.24        Actions
Consistent With Agreements.

 

Neither the Company
nor any of its Affiliates or Subsidiaries shall take any actions which might, or otherwise directly or indirectly attempt to, circumvent,
avoid, undermine, or defeat any of their respect obligations under this Agreement or any of the Other Agreements.

 

6.25        Budget
Approval.

 

On or before December
1 of each year, the Company shall provide Purchaser with its proposed budget for the next fiscal year, including budgeted monthly
balance sheets, statements of income and statements of cash flows, and obtain the written approval from Buyer’s Board of
Directors of such budget at the Board’s December meeting. Upon the occurrence and during the continuance of an Event of Default,
the Company shall obtain Purchaser's written approval of such budget, which approval shall be given, withheld or conditioned, based
on Purchaser's sole discretion.

 

    	28

    	 

    

 

6.26        Post-closing
Deliveries.

 

(a)          To
accommodate the Closing, Purchaser will agree to accept facsimile, pdf or other electronic copies of the required Closing deliveries,
including electronic executed copies of the Senior Subordinated Note and certificates for the Stock. The Company agrees to deliver
to the Purchaser's counsel no later than five (5) Business Days following the Closing the original executed signature pages to
the Senior Subordinated Note, Stock certificates, this Agreement, the Other Agreements, together with executed originals of all
other Closing deliveries (to the extent originals of such other Closing deliveries are available). The Senior Subordinated Note
will bear interest at the rate of 19.0% per annum for the period from the sixth Business Day after Closing until such time as the
original executed Senior Subordinated Note, Stock certificates, this Agreement, the Other Agreements and all other original Closing
documents have been delivered to Purchaser's counsel.

 

(b)          After
the Closing Date, the Company will use its best efforts, without incurring unreasonable out-of-pocket costs, to cause Joslyn-Collier
I LLC, a Michigan limited liability company, to provide the Purchaser with an executed Landlord’s Agreement in substantially
the same form as set forth on Exhibit D to this Agreement.

 

7.            NEGATIVE
COVENANTS

 

The Company covenants
and agrees that from the date hereof until all of the Senior Subordinated Obligations have been finally and irrevocably paid in
full in accordance with the terms hereof and thereof (unless waived or consented to in writing by Purchaser at its sole discretion):

 

7.1          Indebtedness.

 

Neither the Company
nor any of its Subsidiaries will create, incur, issue, assume, guarantee or otherwise become liable for any Indebtedness, except
Permitted Indebtedness. Any Permitted Indebtedness which consists of royalties or other contingent deferred purchase price payments
to sellers in connection with future acquisitions shall be subordinated to the Senior Subordinated Obligations on terms satisfactory
to Purchaser.

 

7.2          Limitation
on Liens.

 

Neither the Company
nor any of its Subsidiaries will incur, create, assume, or permit to exist any Lien upon any of its property, assets, or revenues,
including, but not limited to, its shares of capital stock of each of its Subsidiaries, whether now owned or hereafter acquired,
except for Permitted Liens.

 

7.3          Merger,
Acquisition, Dissolution and Sale of Assets.

 

Neither the Company
nor any of its Subsidiaries will (a) become a party to a merger or consolidation, (b) purchase or otherwise acquire all or a substantial
part of the assets of any Person or any shares or other evidence of beneficial ownership of any Person, (c) dissolve or liquidate,
(d) form, acquire or permit the existence of any Subsidiary or Subsidiaries or acquire any equity interest or make any investment
in or loan to any other Person, or (e) sell, lease, assign, license, transfer or otherwise convey (except inventory in the ordinary
course of business and other assets reasonably and in good faith determined by the Company or such Subsidiary to be obsolete or
no longer necessary to the Company's or such Subsidiary's business), assign or transfer any of its assets, including without limitation
the stock of any Subsidiary.

 

    	29

    	 

    

 

7.4          Restricted
Payments.

 

Neither the Company
nor any of its Subsidiaries will at any time make or become obligated to make, directly or indirectly, (a) any declaration of any
dividend on, or any other payment or distribution in respect of, any shares of the Company or such Subsidiary, (b) any professional
fees, consulting fees, management fees, or any other payments to any shareholders or affiliates of the Company or its Subsidiaries,
(c) any board or other fees to members of its Board of Directors (excluding board fees in an amount not to exceed $35,000 per year
payable to independent board members, which are permitted), (d) any payment or distribution on account of the purchase, repurchase,
redemption, put, call or other retirement of any shares of the Company or of any warrant, option or other right to acquire such
shares (except pursuant to the Warrant Documents), or (e) any payment or distribution on account of any Indebtedness of the Company
or such Subsidiary which is subordinate to the Senior Subordinated Note.

 

Notwithstanding the foregoing
and subject to Section 8.5, the Company may pay annual management fees, payable in monthly installments in arrears, to Taglich
Private Equity LLC in an aggregate amount not to exceed in any Fiscal Year $300,000 (the "Annual Management Fees"), provided
that such Annual Management Fees shall cease immediately upon the occurrence and continuance of an Event of Default specified in
Section 8.1(a) or, at Purchaser’s election, the occurrence and continuance of an Event of Default specified in Section 8.1(c)
for three (3) consecutive months.

 

7.5          Loans
and Investments.

 

Except for Permitted
Investments, the Company will not make any advance, loan, extension of credit, or capital contribution to or investment in, or
purchase any stock, bonds, notes, debentures, or other securities of any Person.

 

7.6          Transactions
with Affiliates.

 

Except as contemplated
by this Agreement and the Other Agreements, neither the Company nor any of its Subsidiaries will enter into any transaction with
any director, officer, employee, shareholder, or Affiliate of the Company or such Subsidiary except transactions upon terms which
are fair and reasonable and which shall be at least as favorable as would result in a comparable arm's-length transaction with
a Person not a director, officer, employee, shareholder or Affiliate of the Company or such Subsidiary.

 

7.7          Nature
of Business.

 

Neither the Company
nor such Subsidiary will engage in any business other than the businesses set forth in Section 4.25, or any business reasonably
related thereto.

 

    	30

    	 

    

 

7.8          Modification
of Senior Loan Documents/Acquisition Documents.

 

Neither the Company
nor any of its Subsidiaries will agree or consent to any modification, amendment or waiver of any of the terms or provisions of
the Senior Loan Documents, Acquisition Documents, Certificate of Incorporation or Bylaws, in effect on the date hereof, that could
reasonably have a Material Adverse Effect on Purchaser’s rights or obligations hereunder, without Purchaser's prior written
consent, which consent shall not be unreasonably withheld or delayed.

 

7.9          Capital
Expenditures.

 

Neither the Company
nor any of its Subsidiaries will make any Capital Expenditures if, as a result thereof, the Capital Expenditures (excluding Capital
Expenditures relating to acquisitions which require Purchaser's approval pursuant to Section 7.3 hereof) of the Company and its
Subsidiaries in the aggregate would, as a result thereof, exceed $1,050,000 for the fiscal year 2013 and $1,010,000 for any fiscal
year thereafter. In the event that the Company or any of its Subsidiaries enters into a capital lease with respect to fixed assets,
for purposes of calculating Capital Expenditures under this Section 7.9, the lesser of (a) the aggregate amount of the present
value of all minimum payments (excluding executory costs) due for the entire term of such capital lease, or (b) the cost of such
fixed asset at the inception of such capital lease shall be considered expended in full on the date that the Company or such Subsidiary
enters into such capital lease.

 

7.10        Financial
Covenants.

 

(a)          Interest
Coverage Ratio. The Company will not permit the Interest Coverage Ratio of the Company on a consolidated basis at any time during
the month to be less than the ratio set forth below for such month:

 

	Month	 	Ratio
	March 2013 and thereafter	 	2.90
	 	 	 

 

(b)          Leverage
to Cash Flow Ratio. The Company will not permit the Leverage to Cash Flow Ratio of the Company on a consolidated basis at any time
during the month to be greater than the ratio set forth below for such month:

 

	Month	 	Ratio
	March 2013 – September 29, 2013	 	4.35
	September 30, 2013 – March 30, 2014	 	4.10
	March 31, 2014 – March 30, 2015	 	3.60
	March 31, 2015 and thereafter	 	3.10

 

 

(c)          Fixed
Charge Coverage Ratio. The Company will not permit the Fixed Charge Coverage Ratio of the Company on a consolidated basis at any
time during the month to be less than the ratio set forth below for such month:

 

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	Month	 	Ratio
	March 2013 and thereafter	 	1.15

 

7.11        Remuneration.

 

Neither the Company
nor any of its Subsidiaries will (i) permit the aggregate amount of salary, other direct and indirect remuneration (including,
but not limited to, professional, consulting and management fees and expenses), and corporate overhead paid by the Company during
any fiscal year to the Management Group to exceed the terms of their respective employment agreements as of the date hereof, except
for reasonable and customary changes in annual compensation as may be authorized by the Company’s Board of Directors, or
(ii) provide any members of the Management Group with employee benefits that are not generally provided to all employees.

 

7.12        Use
of Proceeds.

 

The Company will not
use the proceeds of the sale of the Senior Subordinated Notes for any other purpose except as set forth in Section 1.4.

 

7.13        Stock
Issuances.

 

Except for Stock, the
Company or its Subsidiaries shall issue no Capital Stock or become obligated to issue any Capital Stock.

 

7.14        Acquisition
of Senior Debt.

 

Neither the Company
nor any of its Affiliates shall purchase or otherwise acquire, directly or indirectly, any ownership or other interest of any kind,
in the Senior Debt or any of the Senior Loan Documents.

 

8.            EVENTS
OF DEFAULT

 

8.1          Events
of Default.

 

The occurrence of any
one or more of the following events shall constitute an “Event of Default”:

 

(a)          The
Company shall fail to pay, when due (whether upon acceleration or otherwise), any principal, interest or other sums payable under
either the Senior Subordinated Note, the Deferral Note or this Agreement, or shall fail to pay, when due (whether upon acceleration
or otherwise), any other Senior Subordinated Obligations;

 

(b)          The
Company or any of its Subsidiaries shall fail to pay when due, or shall breach any other obligation or covenant or create any default
or event of default under (after passage of any applicable notice and cure periods, whether upon acceleration or otherwise), any
Indebtedness in excess of $150,000 (other than the Senior Subordinated Obligations or the Senior Debt);

 

    	32

    	 

    

 

(c)          The
Company shall fail to perform or observe any agreement, covenant, term or condition contained in this Agreement, in the Senior
Subordinated Note or in any of the Other Documents; provided, however, as long as such failures are curable, the Company shall
be afforded a ten (10) day cure period the first five (5) times the Company fails to perform or observe any such agreement, covenant,
term or condition (other than those relating to clause (a) of this Section 8.1);

 

(d)          The
Company or its Subsidiaries shall fail to comply with any agreement, indenture, mortgage, deed of trust, or other agreement binding
on it or affecting its properties or business, subject to any notice or cure period therein, which failure has a Material Adverse
Effect upon the Company or the Subsidiaries, including, without limitation, any of the Senior Loan Documents or any of the Other
Agreements to which the Company is a party;

 

(e)          Any
representation, warranty or other material information whatsoever made or provided by the Company or its Subsidiaries in connection
with this Agreement, the Senior Subordinated Note, or the Other Agreements or otherwise to induce Purchaser to purchase the Senior
Subordinated Note or the Stock was incorrect or misleading in any material respect, when made;

 

(f)          The
Company or any of its Subsidiaries shall become subject to an Event of Bankruptcy;

 

(g)          Any
judgment or order for payment of money, not otherwise covered by insurance, shall be rendered against the Company or any of its
Subsidiaries which exceeds $250,000 and either (i) enforcement proceedings shall have been commenced by any creditor upon such
judgment or order, or (ii) there shall be a period of thirty (30) consecutive days during which a stay of enforcement of such judgment
or order, by reason of a pending appeal or otherwise, shall not be in effect;

 

(h)          The
occurrence or existence of any event of default under the Senior Loan Documents after the expiration of any applicable notice and
cure periods;

 

(i)           The
occurrence of a material change in management control, directly or indirectly, of the Company or any of its Subsidiaries whereby
John Weinhardt or Tom Tekiele ceases to serve in his respective current capacities or ceases to be responsible for the management
of the Company (including by death or incapacity), and a replacement acceptable to Purchaser is not appointed and commence service
within one hundred twenty (120) days thereafter; or

 

(j)           The
occurrence of a Change of Control.

 

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8.2          Remedies
of Holders upon Occurrence of Event of Default.

 

When any Event of Default
described in Section 8.1 above, other than any Event of Default described in clause (f) thereof, has occurred and is continuing,
Purchaser may (in addition to any other right, power or remedy permitted to Purchaser by law) declare the entire amount of the
Senior Subordinated Obligations, including, without limitation, the entire principal, Yield Maintenance Fee (if any), and all interest
accrued then outstanding under the Senior Subordinated Note and the Deferral Note, to be, and the same shall thereupon become,
forthwith due and payable, without any presentment, demand, protest, notice of default, notice of intention to accelerate, notice
of acceleration or other notice of any kind, all of which are hereby expressly waived, and in such event the Company shall (subject
to the terms of the Subordination Agreement) forthwith pay to Purchaser an amount equal to one hundred percent (100%) of the amount
thereof. When any Event of Default described in clause (f) of Section 8.1 above shall occur, all of the Senior Subordinated Obligations,
including, without limitation, the entire principal, Yield Maintenance Fee (if any), and all accrued interest then outstanding
under the Senior Subordinated Note, the Deferral Note, and all other Senior Subordinated Obligations, shall thereupon be forthwith
due and payable without any presentment, demand, protest, notice of default, notice of intention to accelerate, notice of acceleration
or other notice of any kind (including any notice by the Holders of the Senior Subordinated Note), all of which are hereby expressly
waived by the Company, and the Company will (subject to the terms of the Subordination Agreement) forthwith pay all such amounts
to Purchaser

 

8.3          Annulment
of Acceleration.

 

The provisions of the
foregoing Section 8.2 are subject to the condition that, if all or any part of the Senior Subordinated Obligations have been declared
or have otherwise become immediately due and payable by reason of the occurrence of any Event of Default, Purchaser may, by written
instrument delivered to the Company (an “Annulment Notice”), rescind and amend such declaration and the consequences
thereof as to the Senior Subordinated Note and Deferral Note, provided that (a) at the time such Annulment Notice is delivered
no judgment or decree has been entered for the payment of any monies due pursuant to such Senior Subordinated Obligations in connection
therewith, and (b) all arrears of interest and all other sums payable on such Senior Subordinated Obligations in connection therewith
(except any principal, interest, Yield Maintenance Fee which has become due and payable solely by reason of such declaration under
Section 8.2 hereof) shall have been duly paid or deferred by the Holder of the Senior Subordinated Obligations agreeing to such
rescission and annulment; and; provided that no such rescission and annulment shall extend to or affect any subsequent default
or Event of Default or impair any right consequent thereto, and shall not be deemed a waiver of the Event of Default giving rise
to the acceleration unless specifically waived in writing by Purchaser.

 

8.4          Payment
of Subordinated Obligations.

 

Subject to the terms
of the Subordination Agreement, Purchaser shall have the right, which is absolute and unconditional, to receive payment of the
principal of and interest on the Senior Subordinated Note and payment of all other Senior Subordinated Obligations on the date
when due and, upon the occurrence and continuance of an Event of Default, to institute suit against the Company for the enforcement
of any such payment. Such rights shall not be impaired without Purchaser's prior written consent.

 

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8.5          Remedies.

 

Subject to the terms
of the Subordination Agreement, if any Event of Default shall occur and be continuing, Purchaser may (a) exercise its rights to
suspend the payment of the Annual Management Fees payable to Taglich Private Equity LLC or any affiliate or assignee thereof until
such time as the default is cured, at which time, up to $300,000 in accrued but unpaid Annual Management Fees may be promptly paid,
provided, that in the event Purchaser exercises its right hereunder to suspend payment of the Annual Management Fee, no more than
$300,000 in aggregate Annual Management Fees shall accrue until after payment in full of all Senior Subordinated Obligations, and
(b) exercise any other right or remedy it has at law, in equity or under this Agreement or any Other Agreement. No right or remedy
conferred upon or reserved to Purchaser under this Agreement or any Other Agreement is intended to be exclusive of any other right
or remedy, and every right and remedy shall be cumulative and in addition to every other right or remedy given hereunder or now
or hereafter existing under any applicable law. Every right and remedy given by this Agreement or by applicable law to Purchaser
may be exercised from time to time and as often as may be deemed expedient by Purchaser.

 

8.6          Conduct
No Waiver.

 

No course of dealing
on the part of Purchaser, nor any delay or failure on the part of Purchaser to exercise any of its rights, shall operate as a waiver
of such right or otherwise prejudice Purchaser's rights, powers and remedies. If the Company fails to pay, when due, the principal
of, Yield Maintenance Fee (if any) or the interest on, the Senior Subordinated Note, the Deferral Note, or any other portion of
the Senior Subordinated Obligations, or fails to comply with any other provision of this Agreement, the Company shall pay to the
Holder, to the extent permitted by law, on demand, such further amounts as shall be sufficient to cover the cost and expenses,
including, but not limited to, reasonable attorneys' fees, incurred by Purchaser in collecting any sums due on the Senior Subordinated
Note and the Deferral Note or in otherwise enforcing any of Purchaser's rights.

 

9.            SUBORDINATION

 

Notwithstanding
any provision in this Agreement to the contrary, the Indebtedness evidenced by the Senior Subordinated Note and the Deferral Note
(if any) shall be subordinate in right of payment to all regularly scheduled payments of principal and interest with respect to
Senior Debt, and Purchaser's rights and remedies hereunder shall be subordinate to the rights and remedies of the Senior Lender,
in accordance with the terms and only to the extent of the Subordination Agreement. Nothing contained in this Article IX or elsewhere
in this Agreement, the Senior Subordinated Note, the Deferral Note, or the Subordination Agreement is intended to or shall impair,
as between the Company and Purchaser, the obligations of the Company, which are absolute and unconditional, to pay to Purchaser
the principal of, Yield Maintenance Fee (if any), and interest on the Senior Subordinated Note and the Deferral Note and all other
Senior Subordinated Obligations as and when the same shall become due and payable in accordance with their terms, or is intended
to or shall affect the relative rights of Purchaser and creditors of the Company other than the holders of the Senior Debt, nor
shall anything herein or therein prevent Purchaser from exercising all remedies otherwise permitted by applicable law upon a Default
or an Event of Default under this Agreement.

 

    	35

    	 

    

 

10.          FORM
OF SENIOR SUBORDINATED NOTE; REGISTRATION, TRANSFER AND REPLACEMENT

 

10.1        Form
of Senior Subordinated Note.

 

The Senior Subordinated
Note initially delivered under this Agreement will be a fully registered note on the books of the Company. The Senior Subordinated
Note is issuable only in fully registered form, in denominations of at least $1,000,000 (or the then-remaining outstanding balance
thereof, if less than $1,000,000).

 

10.2        Subordinated
Note Register.

 

The Company shall cause
to be kept at the principal office a register for the registration and transfer of the Senior Subordinated Note. The names and
addresses of the Holder of the Senior Subordinated Note, the transfer thereof and the name and address of the transferee of the
Senior Subordinated Note shall be recorded in such register.

 

10.3        Issuance
of New Senior Subordinated Note upon Exchange or Transfer.

 

Upon surrender for
exchange or registration of transfer of any Senior Subordinated Note at the office of the Company designated for notices in accordance
with Section 12.3 hereof, the Company shall execute and deliver, at its expense, one or more new Senior Subordinated Notes of any
authorized denomination requested by the Holder of the surrendered Senior Subordinated Note each dated the date to which interest
has been paid on the Senior Subordinated Note so surrendered (or, if no interest has been paid, the date of the surrendered Senior
Subordinated Note) but in the same aggregate unpaid principal amount as the surrendered Senior Subordinated Note and registered
in the name of such Person or Persons as shall be designated in writing by such Holder. Every Senior Subordinated Note surrendered
for registration of transfer shall be duly endorsed, or be accompanied by a written instrument of transfer duly executed, by the
Holder of such Senior Subordinated Note or by its attorney duly authorized in writing.

 

10.4        Replacement
of Senior Subordinated Note and/or Deferral Note.

 

Upon receipt of evidence
satisfactory to the Company of the loss, theft, mutilation or destruction of any Senior Subordinated Note or any Deferral Note
and, in the case of any such loss, theft or destruction, upon delivery of a bond of indemnity in such form and amount as shall
be reasonably satisfactory to the Company or, in the event of such mutilation upon surrender and cancellation of such Senior Subordinated
Note or Deferral Note the Company, without charge to the Holder thereof, will make and deliver a new Senior Subordinated Note or
Deferral Note of like tenor and the same series in lieu of such lost, stolen, destroyed or mutilated Senior Subordinated Note or
Deferral Note. If any such lost, stolen or destroyed Senior Subordinated Note or Deferral Note is owned by Purchaser or any other
Holder whose credit is satisfactory to the Company, then the affidavit of an authorized officer of such owner setting forth the
fact of loss, theft or destruction and of its ownership of the Senior Subordinated Note at the time of such loss, theft or destruction
shall be accepted as satisfactory evidence thereof, and no further indemnity shall be required as a condition to the execution
and delivery of a new Senior Subordinated Note other than a written indemnification agreement of such owner (in form reasonably
satisfactory to the Company).

 

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10.5        Deferral
Note.

 

The provisions of Article X shall also apply
to any Deferral Note issued by the Company as provided herein.

 

11.          INTERPRETATION
OF AGREEMENT

 

11.1        Certain
Terms Defined.

 

(a)          Terms
used in this Agreement and not defined shall have the meanings ascribed thereto below.

 

Acquisition. This term means the
acquisition of Target via an Agreement and Plan of Merger among Buyer, Merger Sub, Target and American Capital, Ltd., dated as
of February 19, 2013, as amended.

 

Acquisition Documents. This term
means the Agreement and Plan of Merger, dated as of February 19, 2013, among Buyer, Merger Sub, Target and American Capital, Ltd.,
as amended, and all other documents, instruments and/or agreements required thereunder or anticipated thereby.

 

Affiliate. This term means any Person
directly or indirectly controlling, controlled by, or under common control with, the Person in question. A Person shall be deemed
to control a corporation if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management
and policies of such corporation, whether through the ownership of voting securities, by contract, or otherwise.

 

Agreement. This term means this
Note Purchase Agreement, including all amendments, modifications and supplements thereto.

 

Annual Management Fees. This term
is defined in Section 7.4 hereof.

 

Annulment Notice. This term is defined
in Section 8.3 hereof.

 

Appraised Value. This term is defined
in the Stock Purchase Agreement.

 

Assignment of Life Insurance. This
term means the Assignment of Life Insurance by the Company in favor of Purchaser on the lives of John Weinhardt and Thomas Tekiele,
as amended or modified from time to time.

 

Business Day. This term means each
day of the week except Saturdays, Sundays, and days on which banking institutions are authorized by law to close in the State of
Michigan.

 

Capital Lease. This term means any
lease which is or should be capitalized in accordance with GAAP.

 

Capital Expenditures or CAPEX. This
term means expenditures made and liabilities or commitments incurred for the acquisition of any fixed assets or improvements, replacements,
substitutions or additions thereto which have a useful life of more than one (1) year, including, but not limited to, the direct
or indirect acquisition of such assets or incurrence of such expenses by way of increased product or service charges, offset items
or otherwise and payments with respect to capitalized lease obligations.

 

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Capital Stock. This term means,
as to any Person, its common stock and any other capital stock of such Person authorized from time to time, and any other shares,
options, interests, participations, or other equivalents (however designated) of or in such Person, whether voting or nonvoting,
including, without limitation, common stock, options, warrants, preferred stock, phantom stock, stock appreciation rights, preferred
stock, convertible notes or debentures, stock purchase rights, and all agreements, instruments, documents, and securities convertible,
exercisable, or exchangeable, in whole or in part, into any one or more of the foregoing.

 

Change of Control. This terms means
the Taglich Founding Investors shall cease to (i) own, directly or indirectly, fifty-one percent (51%) or more of the shares of
issued and outstanding voting capital stock of the Company, or (ii) have the legal right or ability to elect a majority of the
members of the board of directors of the Company, and a Change of Control of any of the Company’s Subsidiaries will include
the Company failing to own directly or indirectly 100% of such Subsidiary’s Capital Stock or the sale of all or substantially
all of such Subsidiary’s assets.

 

Closing. This term means the consummation
of the transactions contemplated by the Note Agreement and the Other Agreements, in accordance with the terms thereof or with such
amendments or waivers thereto as are acceptable to Purchaser in its sole discretion.

 

Closing Date. This term means the
date on which all of the conditions stated in Article V hereof have been met to Purchaser's satisfaction and the purchase price
for the Senior Subordinated Note has been paid.

 

Code. This term means the Internal
Revenue Code of 1986, as amended and in effect from time to time, and the regulations promulgated thereunder.

 

Collateral. This term is defined
in the Security Documents, and shall include all assets of the Company and its Subsidiaries (other than UFM) on or in which the
Senior Lender has a Lien to secure the Senior Debt.

 

Common Stock. This term means all
common stock of the Company issued from time to time.

 

Commission. This term means the
Securities and Exchange Commission and any successor federal agency having similar powers.

 

Company. This term has the meaning
set forth in the preamble, and, unless the context requires otherwise, shall include its successors and all of their Subsidiaries,
if any.

 

Controlled Group. This term means
any group of organizations within the meaning of Section 414(b), (c), (m) or (o) of the Code of which the Company is a member.

 

Current Interest Expense. This term
means, for any period, all interest paid by the Company and its Subsidiaries on all Senior Debt, Senior Subordinated Note(s), Capital
Leases and any other Permitted Indebtedness, less any deferred interest thereon which the Company and its Subsidiaries elects (but
are not required) to pay during such period.

 

    	38

    	 

    

 

Default. This term means the occurrence
of any condition or event which, with the passage of time or giving of notice or both, would constitute an Event of Default.

 

Deferral Note. This term is defined
in Section 2.1(c) hereof.

 

EBITDA. This term means the Company's
and its Subsidiaries' earnings before interest, income taxes, depreciation, amortization and Annual Management Fees for the last
full 12-month period immediately preceding the date of determination, determined in accordance with GAAP.

 

Employee Benefit Plan. This term
means any employee benefit plan, as defined in Section 3(3) of ERISA, which is, previously has been or will be established or maintained
by any member of a Controlled Group.

 

Environmental Laws. This term means
all federal, state, or local laws, ordinances, rules, regulations, interpretations, directives and orders of courts or administrative
agencies or authorities relating to pollution or protection of the environment (including, without limitation, ambient air, surface
water, ground water, land surface, and subsurface strata), and/or workplace health and safety and other laws, ordinances, rules,
regulations, interpretations, directives and orders of courts or administrative agencies or authorities relating to (a) Hazardous
Substances or (b) the manufacture, processing, distribution, use, treatment, handling, storage, disposal, or transportation of
Hazardous Substances.

 

ERISA. This term means the Employee
Retirement Income Security Act of 1974, as amended and in effect from time to time, and the regulations promulgated thereunder.

 

Event of Bankruptcy. This term means
any of (a) the filing by a Person of a voluntary petition in bankruptcy under any provision of any bankruptcy law or a petition
to take advantage of any insolvency act, (b) the admission in writing by a Person of its inability to pay its debts generally as
they become due, (c) the appointment of a receiver or receivers for all or a material part of a Person's assets with the consent
of such Person, (d) the filing of any bankruptcy, arrangement or reorganization petition by or, with the consent of a Person, against
such Person under any provision of any bankruptcy law, (e) a receiver, liquidator or trustee of a Person or a substantial part
of its assets shall be appointed pursuant to the Federal Bankruptcy Code by the order of a court of competent jurisdiction which
shall not be dismissed or stayed within thirty (30) days, or (f) an involuntary petition to reorganize or liquidate a Person pursuant
to the Federal Bankruptcy Code shall be filed against such Person and shall not be dismissed or stayed within 60 days.

 

Event of Default. This term is defined
in Section 8.1 hereof.

 

Excess Interest. This term is defined
in Section 2.8 hereof.

 

Exchange Act. This term means the
Securities Exchange Act of 1934, as amended, and the regulations thereunder.

 

Extraordinary Expenses. This term
means items outside the ordinary course of the Company's business.

 

Fiscal Year. This term means the
Company’s fiscal year of January 1 through December 31.

 

    	39

    	 

    

 

Fixed Charge Coverage Ratio. This
term means, as of the date of any determination thereof, the ratio of (EBITDA - Taxes paid during the trailing twelve month period
– CAPEX – Annual Management Fees) to (Current Interest Expense + Scheduled Debt Amortization) of the Company and its
Subsidiaries, all determined for the twelve-month period ended as of the date of determination.

 

Funded Debt. This term means the
sum of all Senior Debt, Senior Subordinated Obligations, and Capital Leases on the Target's latest internally prepared, GAAP compliant,
consolidated balance sheet.

 

GAAP. This term means generally
accepted accounting principles, applied on a consistent basis, as set forth in Opinions of the Accounting Principles Board of the
American Institute of Certified Public Accountants and/or in statements of the Financial Accounting Standards Board and/or their
respective successors and which are applicable in the circumstances as of the date in question; provided that neither the Company
nor its Subsidiaries may change the use or application of any accounting method, practice or principle without the prior written
consent of Purchaser, which consent may require that an adjustment be made to certain of the covenants set forth herein. Accounting
principles are applied on a consistent basis when the accounting principles observed in a current period are comparable in all
material respects to those accounting principles applied in a preceding period.

 

Hazardous Substances. This term
means all pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes and shall include, without
limitation, any flammable explosives, radioactive materials, oil, hazardous materials, hazardous or solid wastes, hazardous or
toxic substances or related materials (other than those in de minimus amounts permitted by law) defined in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, the Superfund Amendments and Reauthorization Act of 1986, the Resource Conservation
and Recovery Act of 1976, the Hazardous and Solid Waste Amendments of 1984, and the Hazardous Materials Transportation Act, as
any of the same are hereafter amended, and in the regulations adopted and publications promulgated thereto; provided, in the event
any of the foregoing Environmental Laws is amended so as to broaden the meaning of any term defined thereby, such broader meaning
shall apply subsequent to the effective date of such amendment and, provided, further, to the extent that the applicable laws of
any state establish a meaning for "hazardous substance," "hazardous waste," "hazardous material,"
"solid waste," or "toxic substance" which is broader than that specified in any of the foregoing Environmental
Laws, such broader meaning shall apply.

 

Holder. This term means, when used
in reference to the Senior Subordinated Note and/or the Senior Subordinated Obligations, means the Person or Persons who, at the
time of determination, is the lawful owner of all or a portion of the Senior Subordinated Note or an obligee or payee of all or
a portion of the Senior Subordinated Obligations. Unless otherwise provided in this Agreement, in each instance that the Holders
are required to request or consent in concert to an action, the Holders will be deemed to have requested or consented to such action
if the Holders of a majority in interest of the Registrable Securities so request or consent.

 

Impositions. This term is defined
in Section 6.10 hereof.

 

    	40

    	 

    

 

Indebtedness. This term means for
any Person: (a) all indebtedness, whether or not represented by bonds, debentures, notes, securities, or other evidences of indebtedness,
for the repayment of money borrowed, (b) all indebtedness representing deferred payment of the purchase price of property or assets,
(c) all indebtedness under any lease which, in conformity with GAAP, is required to be capitalized for balance sheet purposes and
leases of property or assets made as a part of any sale and lease-back transaction if required to be capitalized, (d) all indebtedness
under guaranties, endorsements, assumptions, or other contractual obligations, including any letters of credit, or the obligations
in respect of, or to purchase or otherwise acquire, indebtedness of others, (e) all indebtedness secured by a Lien existing on
property owned, subject to such Lien, whether or not the indebtedness secured thereby shall have been assumed by the owner thereof,
(f) trade accounts payable more than ninety (90) days past due excluding trade accounts payable in an aggregate principal amount
at any time outstanding of $25,000 which are being contested in good faith, (g) all amendments, renewals, extensions, modifications
and refundings of any indebtedness or obligations referred to in clauses (a), (c), (d) or (e), excluding trade accounts payable
in the ordinary course of business.

 

Initial Public Offering. This term
means the first firm commitment underwritten public offering of Common Stock to the general public registered under the Securities
Act completed by the Company and resulting in proceeds (before underwriting discounts and commissions) to the Company of at least
$30,000,000 and which results in (i) an aggregate valuation of all of the outstanding shares of Common Stock on a fully diluted
basis immediately after the consummation of such offering of at least $50,000,000 based on the initial offering price to the public
in such offering, (ii) at least twenty-five percent of the Company's outstanding Common Stock being registered, and (iii) the listing
of the Company's Common Stock on a nationally recognized securities exchange.

 

Intellectual Property. This term
means all patents, patent rights, patent applications, licenses, inventions, trade secrets, know-how, proprietary techniques (including
processes and substances), trademarks, service marks, trade names, copyrights and other intangible proprietary rights.

 

Interest Coverage Ratio. This term
means, as of the date of any calculation thereof, the ratio of EBITDA to Current Interest Expense of the Company and its Subsidiaries
for the twelve month period ending as of the date of calculation.

 

Interest Payment Date. This term
means the last Business Day of each month except for December, in which month it means the third to the last Business Day of such
month.

 

Investment Proceeds. This term means
all payments of interest received by Purchaser on any portion of the principal of the Senior Subordinated Note, specifically excluding
origination points and other fees.

 

Leverage to Cash Flow Ratio. This
term means, as of the date of determination, the ratio of Funded Debt as of the date of such determination to EBITDA of the Company
and its Subsidiaries for the twelve-month period ended as of such date of determination.

 

Lien. This term means any lien,
mortgage, security interest, tax lien, pledge, encumbrance, financing statement, or conditional sale or title retention agreement,
or any other interest in property designed to secure the repayment of Indebtedness or any other obligation, whether arising by
agreement, operation of law, or otherwise.

 

    	41

    	 

    

 

Management Group. This term includes
the following individuals, who are all officers or employees of the Company and/or its Subsidiaries: John Weinhardt and Tom Tekiele.

 

Material Adverse Effect. This term
means (a) a material adverse effect upon the business, operations, properties, assets or condition (financial or otherwise) of
the Company or any of its Subsidiaries or (b) the impairment of the ability of the Company or its Subsidiaries to perform their
obligations under the Note Agreement or any of the Other Agreements to which it is a party or (c) the impairment of the ability
of Purchaser to enforce or collect any of the Senior Subordinated Obligations. In determining whether any individual event would
result in a Material Adverse Effect, notwithstanding that such event does not of itself have such effect, a Material Adverse Effect
shall be deemed to have occurred if the cumulative effect of such event and all other then existing events would result in a Material
Adverse Effect.

 

Maturity Date. This term means the
earliest to occur of (a) the last Business Day prior to the fifth (5th) annual anniversary of the Closing Date, (b)
the date on which the Senior Subordinated Note is accelerated pursuant to Article VIII hereof, or (c) the date on which the Senior
Subordinated Obligations are paid in full.

 

Maximum Rate. This term is defined
in Section 2.8 hereof.

 

Minimum Yield Amount. This term
means the aggregate amount of Investment Proceeds which would equal thirty-two percent (32.0%) of the principal amount repaid.

 

Note Agreement. This term includes
the Note Purchase Agreement dated as of the Closing Date between the Company and the Purchaser and all documents evidencing indebtedness
thereunder or otherwise related to the Note Purchase Agreement, as the same may be amended from time to time, and any refinancing,
refunding, or replacements of the indebtedness under the Note Purchase Agreement.

 

Other Agreements. This term means
the Senior Subordinated Note, the Deferral Note, the Stock Purchase Agreement, the Stock certificates, the Security Documents,
and all other agreements, instruments and documents (including, without limitation, notes, guarantees, powers of attorney, consents,
assignments, contracts, notices, subordination agreements and all other written matter), and all renewals, modifications and extensions
thereof, whether heretofore, now or hereafter executed by or on behalf of the Company, any of its Subsidiaries, any guarantor or
any other Person and delivered to and for the benefit of Purchaser or any Person participating with Purchaser in the Senior Subordinated
Note with respect to the Note Agreement or any of the transactions contemplated by the Note Agreement.

 

Partial Deferral. This term is defined
in Section 2.1(c) hereof.

 

Pension Plan. This term means any
employee pension benefit plan, as defined in Section 3(2) of ERISA, which is, was or will be established or maintained by any member
of the Controlled Group.

 

    	42

    	 

    

 

Permitted Indebtedness. This term
means (a) any Indebtedness in favor of the Senior Lender under the Senior Loan Agreement and created pursuant thereto, (b) any
Indebtedness in favor of Purchaser under the Note Agreement and/or the Other Agreements and created pursuant thereto, (c) presently
existing or hereafter arising purchase money Indebtedness incurred by the Company to finance the acquisition of capital assets
by the Company, subject to the limitations placed on Capital Expenditures in Section 7.9 hereof, (d) indebtedness consisting of
the financing of insurance premiums (by grant to the insurer of right of offset against payment of benefits under the relevant
policy) with respect to a $2,000,000 term life insurance policy on the life of each of John Weinhardt and Tom Tekiele and (e) the
Indebtedness as of the Closing Date, set forth on Schedule 4.10 hereto. Any Permitted Indebtedness which consists of royalties
or other contingent deferred purchase price payments to sellers in connection with future acquisitions shall be subordinated to
the Senior Subordinated Obligations on terms satisfactory to Purchaser.

 

Permitted Investments. This term
means the following:

 

(a)          securities
issued or directly and fully guaranteed or insured by the United States Government or any agency or instrumentality thereof (provided
that the full faith and credit of the United States Government is pledged in support thereof), having maturities of not more than
twelve (12) months from the date of acquisition;

 

(b)          time
deposits and certificates of deposit (i) of any commercial bank incorporated in the United States of recognized standing having
capital and surplus in excess of $100,000,000 with maturities of not more than twelve months from the date of acquisition or (ii)
which are fully insured by the Bank Insurance Fund or Savings Association Insurance Fund with maturities of not more than twelve
(12) months from the date of acquisition;

 

(c)          commercial
paper issued by any Person incorporated in the United States rated at least A-1 or the equivalent thereof by Standard &
Poor's Corporation or at least P-1 or the equivalent thereof by Moody's Investors Service, Inc. and in each case maturing not more
than twelve (12) months after the date of acquisition; or

 

(d)          investments
in money market funds substantially all of whose assets are comprised of securities of the types described in clauses (a) through
(c) above.

 

Permitted Liens. This term means
(a) Liens in favor of the Senior Lender under the Senior Loan Documents, (b) Liens in favor of Purchaser under the Security Documents,
(c) Liens securing purchase money Indebtedness incurred to finance the acquisition of capital assets by the Company, subject to
the limitations placed on Capital Expenditures in Section 7.9 hereof, but only so long as (i) such Lien attaches only to the asset
so financed, (ii) the Indebtedness secured by such Lien does not exceed one hundred percent (100%) of the purchase price, including
installation and freight, of the asset so financed and (iii) no Default or Event of Default has occurred and is continuing, (d)
Liens for property taxes not yet due, (e) materialmen's, mechanics', worker's, repairmen's, employees' or other like Liens arising
against the Company in the ordinary course of business, in each case which are either not delinquent or are being contested in
good faith and by appropriate actions or proceedings conducted with due diligence and for the payment of which adequate reserves
in accordance with GAAP have been established with respect thereto to the reasonable satisfaction of Purchaser, (f) deposits to
secure payment of worker's compensation, unemployment insurance or other social security benefits, and (g) Liens set forth on Schedule
4.8.

 

    	43

    	 

    

 

Permitted Transferees. This term
means (i) any trust which is controlled and revocable by any Person acting alone, (ii) the spouse and lineal descendants of such
Person, or (iii) a trust for the benefit of the spouse or lineal descendants of such person.

 

Person. This term means any individual,
sole proprietorship, corporation, business trust, unincorporated organization, association, company, partnership, joint venture,
governmental authority (whether a national, federal, state, county, municipality or otherwise, and shall include without limitation
any instrumentality, division, agency, body or department thereof), or other entity.

 

Property. This term means all real
property owned, leased or operated by the Company or any of its Subsidiaries.

 

Purchaser. This term means The Peninsula
Fund V Limited Partnership, a Delaware limited partnership, together with all of their respective transferees, successors and assigns
of all or any portion of the Senior Subordinated Note or the Senior Subordinated Obligations and any nominees on whose behalf any
of the foregoing purchase or otherwise acquire any of such Indebtedness of the Company, and shall include, but not be limited to,
each and every "Holder" as defined herein.

 

Register, registered, and
registration refer to a registration effected by preparing and filing a registration statement in compliance with the Securities
Act, and the declaration or ordering of the effectiveness of such registration statement.

 

Reportable Event. This term means
(i) any of the events set forth in Sections 4043(b) (other than a merger, consolidation or transfer of assets in which no Pension
Plan involved has any unfunded benefit liabilities), 4068(f) or 4063(a) of ERISA, (ii) any event requiring any member of the Controlled
Group to provide security under Section 401(a)(29) of the Code, or (iii) any failure to make payments required by Section 412(m)
of the Code.

 

Scheduled Debt Amortization. This
term means, for any period, the actual principal payments made by the Company and its Subsidiaries on Senior Debt, Senior Subordinated
Note and Capital Leases.

 

Securities Act. This term means
the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

Security Documents. This term means
all security agreements, pledge agreements, collateral assignments of life insurance (including the Assignment of Life Insurance),
the guarantees, mortgages, deeds of trust and other documents executed in connection with the Note Agreement and granting to Purchaser
liens and security interests in the Collateral, second in priority only to the liens and security interests of the Senior Lender
under and only to the extent provided by the Senior Loan Agreement, all renewals, modifications or extensions of such documents,
and any such documents hereafter executed in favor of Purchaser to secure payment of all or any part of the Senior Subordinated
Note and the Senior Subordinated Obligations, together with all financing statements and other documents necessary to record or
perfect the Liens granted by any of the foregoing.

 

    	44

    	 

    

 

Senior Debt. This term means, at
any given time, the Indebtedness (whether now outstanding or hereafter incurred) of the Company in respect of the Senior Loan Agreement,
in a principal amount not to exceed $12,500,000 in revolving credit and $11,000,000 in term loans (less the aggregate amount of
principal payments made by the Company or its Subsidiaries to the Senior Lender under such term loan), plus interest, fees, expenses,
indemnities and all other amounts payable under the Senior Loan Agreement and any notes, security documents, guaranties or other
loan documents referred to therein or pursuant thereto, secured by all assets of the Company or its Subsidiaries.

 

Senior Lender. This term means RBS
Citizens, N.A., a national banking association, and its successors and assigns.

 

Senior Loan Agreement. This term
means the Loan and Security Agreement between the Target and the Senior Lender, dated as of the date hereof, as amended from time
to time in compliance with the Subordination Agreement, and all documents and instruments delivered pursuant thereto in connection
with the loans and advances made thereunder.

 

Senior Loan Documents. This term
means the Senior Loan Agreement and the agreements, documents and instruments executed in connection therewith or contemplated
thereby, as amended from time to time in compliance with the Subordination Agreement.

 

Senior Subordinated Note. This term
means a term promissory note in the principal amount of $11,500,000 issued to Purchaser pursuant to the Note Agreement, together
with all renewals, modifications, extensions, substitutions and replacements thereof.

 

Senior Subordinated Obligations.
This term means and includes any and all Indebtedness and/or liabilities of the Company and its Subsidiaries to Purchaser of every
kind, nature and description, direct or indirect, secured or unsecured, joint, several, joint and several, absolute or contingent,
due or to become due, now existing or hereafter arising, under the Note Agreement, the Senior Subordinated Note, the Deferral Note
or any Other Agreement (regardless of how such Indebtedness or liabilities arise or by what agreement or instrument they may be
evidenced or whether or not evidenced by any agreement or instrument) and all obligations of the Company to Purchaser to perform
acts or refrain from taking any action under any of the aforementioned documents, together with all renewals, modifications, extensions,
increases, substitutions or replacements of any of such Indebtedness and/or liabilities.

 

Senior Term Debt. This term means
the term loans in the aggregate original principal amount of $11,000,000 made by the Senior Lender to the Company pursuant to the
Senior Loan Documents, maturing on the fifth anniversary of the Closing Date.

 

Stockholders Agreement. This term
means the Stockholders Agreement, dated as of the Closing Date, between the Buyer, the Purchaser and the other stockholders party
thereto.

 

Stock. This term means the Capital
Stock of the Buyer that is acquired by the Purchaser pursuant to the Stock Purchase Agreement.

 

    	45

    	 

    

 

Stock Documents. This term means
the Stock, the Stock Purchase Agreement and the agreements, documents and instruments executed in connection therewith or contemplated
thereby, as amended from time to time in accordance therewith.

 

Stock Purchase Agreement. This term
means the Stock Purchase Agreement of even date between Purchaser and Buyer, as amended.

 

Subordination Agreement. This term
means that certain Subordination and Intercreditor Agreement, dated as of the date hereof, among the Purchaser, the Senior Lender
and the other parties listed on the signature pages thereto, as the same may be amended or replaced from time to time in accordance
with the provisions hereof.

 

Subsequent Interest Deferral. This
term is defined in Section 2.1(c) hereof.

 

Subsidiary. This term means each
Person of which or in which the Company or its other Subsidiaries own directly or indirectly more than fifty percent (50%) of (i)
the combined voting power of all classes of stock having general voting power under ordinary circumstances to elect a majority
of the board of directors or equivalent body of such Person, if it is a corporation or similar person; (ii) the capital interest
or profits interest of such Person, if it is a partnership, joint venture, or similar entity; or (iii) the beneficial interest
of such Person, if it is a trust, association, or other unincorporated organization.

 

Taglich Founding Investors. This
term has the meaning set forth in the Stockholders Agreement as in existence on the date hereof.

 

Target. This term means Unique Fabricating
Incorporated, a Delaware corporation.

 

Tax Year. This term is defined in
Section 7.4 hereof.

 

Taxes. This term means cash taxes
paid on state and federal income during the specified time period.

 

Termination Event. This term means
(a) a Reportable Event, (b) the termination of a Pension Plan which has unfunded benefit liabilities (including an involuntary
termination under Section 4042 of ERISA), (c) the filing of a Notice of Intent to Terminate a Pension Plan, (d) the initiation
of proceedings to terminate a Pension Plan under Section 4042 of ERISA, or (e) the appointment of a trustee to administer a Pension
Plan under Section 4042 of ERISA.

Transfer. This term is defined in
Section 12.5 hereof.

 

Transferee. This term means any
Person to whom a Transfer is made.

 

UFM. This term means Unique Fabricating
de Mexico, S.A. de C.V., a Mexico variable capital company.

 

UFR. This term means Unique Fabricating
Realty, LLC, a Michigan limited liability company.

 

UFS. This term means Unique Fabricating
South, Inc., a Michigan corporation.

 

    	46

    	 

    

 

Yield Maintenance Fee. This term
is defined in Section 2.2 hereof and includes any Yield Maintenance Fee arising as a result of Purchaser's exercise of its rights
and remedies under Section 8.2 hereof.

 

(b)          Terms
which are defined in other Sections of this Agreement shall have the meanings specified therein. All other terms contained in this
Agreement shall have, when the context so indicates, the meanings provided for by the Uniform Commercial Code as adopted and in
force in the State of Michigan, as from time to time in effect.

 

11.2        Accounting
Principles. 

 

(a)          Where
the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation
or other accounting computation is required to be made for the purposes of this Agreement, the same shall be done, unless specified
otherwise, in accordance with GAAP, except where such principles are inconsistent with the requirements of this Agreement.

 

(b)          For
purposes of the definitions of Interest Coverage Ratio, Fixed Charge Coverage Ratio and Leverage to Cash Flow Ratio only, the following
five covenant variables: EBITDA, Current Interest Expense, CAPEX, Taxes and Scheduled Debt Amortization, are calculated as follows:

 

(i)          using
the latest available internally prepared, GAAP compliant, financial statements; and

 

(ii)         calculating
EBITDA, Current Interest Expense, CAPEX, Taxes and Scheduled Debt Amortization for the trailing twelve month (TTM) period through
the date of the internally prepared statements.

 

11.3        Directly
or Indirectly.

 

Where any provision
in this Agreement refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall
be applicable whether the action in question is taken directly or indirectly by such Person.

 

    	47

    	 

    

 

12.          MISCELLANEOUS

 

12.1        Expenses.

 

The Company agrees
to pay (a) all out-of-pocket expenses of Purchaser (including reasonable fees, expenses and disbursements of Purchaser's counsel)
in connection with the preparation, negotiation, enforcement, operation and administration of this Agreement, the Senior Subordinated
Note, the Other Agreements, or any documents executed in connection therewith, or any waiver, modification or amendment of any
provision hereof or thereof; (b) loan monitoring fees of Purchaser; and (c) if an Event of Default occurs, all court costs and
costs of collection, including, without limitation, reasonable fees, expenses and disbursements of counsel employed in connection
with any and all collection efforts. The attorneys' fees arising from such services, including those of any appellate proceedings,
and all expenses, costs, charges and other fees incurred by such counsel or Purchaser in any way or respect arising in connection
with or relating to any of the events or actions described in this Article XII shall be payable by the Company to Purchaser, on
demand, and shall be additional Senior Subordinated Obligations secured under this Agreement and the Other Agreements. Without
limiting the generality of the foregoing, such expenses, costs, charges and fees may include: recording costs, appraisal costs,
paralegal fees, costs and expenses; accountants' fees, costs and expenses; court costs and expenses; photocopying and duplicating
expenses; court reporter fees, costs and expenses; long distance telephone charges; air express charges, telegram charges; facsimile
charges; secretarial overtime charges; and expenses for travel, lodging and food paid or incurred in connection with the performance
of such legal services. The Company agrees to indemnify Purchaser from and hold it harmless against any documentary taxes, assessments
or charges made by any governmental authority by reason of the execution and delivery by the Company or any other Person of this
Agreement, the Other Agreements, and any documents executed in connection therewith.

 

12.2        Indemnification.

 

IN ADDITION TO AND
NOT IN LIMITATION OF THE OTHER INDEMNITIES PROVIDED FOR HEREIN OR IN ANY OTHER AGREEMENTS, THE COMPANY HEREBY INDEMNIFIES AND HOLDS
HARMLESS PURCHASER AND ANY OTHER HOLDERS, AND EVERY AFFILIATE OF ANY OF THE FOREGOING, AND THEIR RESPECTIVE OFFICERS, DIRECTORS,
EMPLOYEES AND AGENTS, FROM ANY CLAIMS, ACTIONS, DAMAGES, COSTS, ATTORNEYS' FEES AND EXPENSES (INCLUDING ANY OF THE SAME ARISING
OUT OF THE SOLE, COMPARATIVE OR CONTRIBUTORY NEGLIGENCE OF THE PERSON TO BE INDEMNIFIED) TO WHICH ANY OF THEM MAY BECOME SUBJECT,
INSOFAR AS SUCH LOSSES, LIABILITIES, CLAIMS, ACTIONS, DAMAGES, COSTS AND EXPENSES ARISE FROM OR RELATE TO THIS AGREEMENT OR THE
OTHER AGREEMENTS, OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREBY, OR FROM ANY INVESTIGATION, LITIGATION, OR OTHER PROCEEDING,
INCLUDING, WITHOUT LIMITATION, ANY THREATENED INVESTIGATION, LITIGATION OR OTHER PROCEEDING RELATING TO ANY OF THE FOREGOING, OR
FROM ANY VIOLATION OR CLAIM OF VIOLATION OF ANY APPLICABLE ENVIRONMENTAL LAWS WITH RESPECT TO ANY REAL OR PERSONAL PROPERTY, OR
FROM ANY GOVERNMENTAL OR JUDICIAL CLAIM, ORDER OR JUDGMENT WITH RESPECT TO ANY REAL OR PERSONAL PROPERTY OF THE COMPANY, OR FROM
ANY BREACH BY THE COMPANY OF THE WARRANTIES, REPRESENTATIONS OR COVENANTS CONTAINED IN THIS AGREEMENT OR THE OTHER AGREEMENTS.
THE FOREGOING INDEMNIFICATION INCLUDES ANY SUCH CLAIMS, ACTIONS, DAMAGES, COSTS, AND EXPENSES INCURRED BY REASON OF THE SOLE, COMPARATIVE
OR CONTRIBUTORY NEGLIGENCE OF THE PERSON TO BE INDEMNIFIED, BUT EXCLUDES ANY OF THE SAME INCURRED BY REASON OF SUCH PERSON'S GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED BY A FINAL AND NONAPPEALABLE JUDGMENT OF A COURT OF COMPETENT JURISDICTION.

 

    	48

    	 

    

 

12.3        Notices.

 

Except as otherwise
expressly provided herein, all communications provided for hereunder shall be in writing and delivered or mailed by the United
States mails, certified mail, return receipt requested, (a) if to Purchaser, addressed to Purchaser at the address specified on
Annex I hereto or to such other address as Purchaser may in writing designate, (b) if to any other Holder, addressed to such Holder
at such address as such Holder may in writing designate, and (c) if to the Company, addressed to the Company at the address set
forth next to its name on the signature pages hereto or to such other address as the Company may in writing designate. Notices
shall be deemed to have been validly served, given or delivered, and “the date of such notice” or words of similar
effect shall mean the date five (5) days after deposit in the United States mails, certified mail, return receipt requested, with
proper postage prepaid, or upon actual receipt thereof (whether by noncertified mail, telecopy, telegram, facsimile, express delivery
or otherwise), whichever is earlier.

 

12.4        Reproduction
of Documents.

 

This Agreement and
all documents relating hereto, including, without limitation (a) consents, waivers and modifications which may hereafter be
executed, (b) documents received by Purchaser at the closing of the purchase of the Senior Subordinated Note, and (c) financial
statements, certificates and other information previously or hereafter furnished to Purchaser, may be reproduced by Purchaser by
any photographic, photostatic, microfilm, microcard, miniature photographic or other similar process and Purchaser may destroy
any original document so reproduced. The Company agrees and stipulates that any such reproduction which is legible shall be admissible
in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and
whether or not such reproduction was made by you in the regular course of business) and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence; provided that nothing herein contained shall preclude
the Company from objecting to the admission of any reproduction on the basis that such reproduction is not accurate, has been altered,
is otherwise incomplete or is otherwise inadmissible.

 

    	49

    	 

    

 

12.5        Assignment;
Sale of Interest.

 

The Company may not
sell, assign or transfer and shall not permit its Subsidiaries to sell, assign or transfer this Agreement or any of the Other Agreements
or any portion thereof, including, without limitation, the Company's or its Subsidiaries’ rights, title, interests, remedies,
powers and/or duties hereunder or thereunder. The Company hereby consents to Purchaser's participation, sale, assignment, transfer
or other disposition (collectively, a “Transfer”), at any time or times hereafter, of this Agreement, or the Other
Agreements to which the Company or its Subsidiaries is a party, or of any portion hereof or thereof, including, without limitation,
Purchaser's rights, title, interests, remedies, powers and/or duties hereunder or thereunder. In connection with any Transfer,
the Company agrees to cooperate fully with Purchaser and any potential Transferee. Such cooperation shall include, but is not limited
to, reasonably cooperating with any audits or other due diligence investigation undertaken by any potential Transferee at no material
out-of-pocket cost to the Company.

 

12.6        Successors
and Assigns.

 

This Agreement will
inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

 

12.7        Headings.

 

The headings of the
sections and subsections of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

 

12.8        Counterparts.

 

This Agreement may
be executed simultaneously in two or more counterparts, each of which shall be deemed an original, and it shall not be necessary
in making proof of this Agreement to produce or account for more than one such counterpart or reproduction thereof permitted by
Section 12.3.

 

12.9        Reliance
on and Survival Provisions.

 

All covenants, representations
and warranties made by the Company herein and in any certificates delivered pursuant hereto, whether or not in connection with
the closing, (a) shall be deemed to be material and to have been relied upon by Purchaser, notwithstanding any investigation heretofore
or hereafter made by Purchaser or on Purchaser's behalf, and (b) shall survive the delivery of this Agreement and the Senior Subordinated
Note until all obligations of the Company under this Agreement shall have been satisfied.

 

12.10      Integration
and Severability.

 

This Agreement and
the Other Agreements embody the entire agreement and understanding among Purchaser, the Company and its Subsidiaries, and supersedes
all prior agreements and understandings relating to the subject matter hereof. In case any one or more of the provisions contained
in this Agreement or in any Senior Subordinated Note, or any application thereof, shall be invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein, and any other
application thereof, shall not in any way be affected or impaired thereby.

 

    	50

    	 

    

 

12.11      LAW
GOVERNING.

 

THIS AGREEMENT HAS
BEEN SUBSTANTIALLY NEGOTIATED AND IS BEING EXECUTED, DELIVERED, AND ACCEPTED, AND IS INTENDED TO BE PERFORMED, IN THE STATE OF
MICHIGAN. ALL OBLIGATIONS, RIGHTS AND REMEDIES HEREUNDER, SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF MICHIGAN WITHOUT REFERENCE TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE. THE SENIOR SUBORDINATED NOTE
SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MICHIGAN. PURCHASER RETAINS ALL
RIGHTS UNDER THE LAWS OF THE UNITED STATES OF AMERICA, INCLUDING THOSE RELATING TO THE CHARGING OF INTEREST. THE COMPANY FURTHER
AGREES THAT ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT, THE NOTE OR ANY OTHER AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY MAY BE BROUGHT IN ANY COURT OF THE STATE OF MICHIGAN, OR IN ANY COURT OF THE UNITED STATES OF AMERICA SITTING
IN MICHIGAN, AND THE COMPANY HEREBY SUBMITS TO AND ACCEPTS GENERALLY AND UNCONDITIONALLY THE JURISDICTION OF THOSE COURTS WITH
RESPECT TO ITS PERSON AND PROPERTY, AND IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING
BY PERSONAL DELIVERY TO SUCH AGENT OR TO THE COMPANY OR BY THE MAILING THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID
TO THE COMPANY AT ITS ADDRESS SET FORTH IN SECTION 12.3, SUCH SERVICE TO BE EFFECTIVE AS THE EQUIVALENT OF PERSONAL DELIVERY FIVE
(5) DAYS AFTER THE DATE OF MAILING AND SUCH SERVICE WILL CONSTITUTE PERSONAL SERVICE. NOTHING IN THIS SECTION 12.11 SHALL AFFECT
THE RIGHT OF PURCHASER TO BRING ANY SUCH ACTION OR PROCEEDING AGAINST THE COMPANY OR PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION.
THE COMPANY HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUCH SUIT OR PROCEEDING IN THE ABOVE DESCRIBED
COURTS.

 

12.12      WAIVERS;
MODIFICATION.

 

NO PROVISION OF THIS
AGREEMENT MAY BE WAIVED, CHANGED OR MODIFIED, OR THE DISCHARGE THEREOF ACKNOWLEDGED, ORALLY, BUT ONLY BY AN AGREEMENT IN WRITING
SIGNED BY THE PARTY AGAINST WHOM THE ENFORCEMENT OF ANY WAIVER, CHANGE, MODIFICATION OR DISCHARGE IS SOUGHT.

 

    	51

    	 

    

 

12.13      CONFIDENTIALITY.

 

PURCHASER AGREES TO
KEEP ANY NON-PUBLIC INFORMATION DELIVERED OR MADE AVAILABLE TO IT BY THE COMPANY CONFIDENTIAL AND TO USE SUCH INFORMATION ONLY
FOR THE PURPOSE OF EVALUATING, APPROVING, STRUCTURING AND ADMINISTERING THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY
(COLLECTIVELY, THE “TRANSACTIONS”); PROVIDED THAT NOTHING HEREIN SHALL PREVENT PURCHASER FROM DISCLOSING SUCH INFORMATION
(I) TO PERSONS EMPLOYED OR RETAINED BY PURCHASER WHO ARE ENGAGED OR EXPECTED TO BE ENGAGED IN EVALUATING, APPROVING, STRUCTURING
OR ADMINISTERING THE TRANSACTIONS, (II) TO ANY OTHER PERSON IF REASONABLY INCIDENTAL TO THE ADMINISTRATION OF THE TRANSACTIONS,
(III) TO ANY OTHER PURCHASER OR HOLDER, (IV) PURSUANT TO ANY SUBPOENA OR EXPRESS DIRECTION OF ANY COURT OR OTHER AUTHORIZED GOVERNMENTAL
AGENCY OR AS OTHERWISE REQUIRED BY LAW, (V) UPON THE REQUEST OR DEMAND OF ANY REGULATORY AGENCY, EXAMINER OR COMPARABLE AUTHORITY,
(VI) WHICH HAS THERETOFORE BEEN PUBLICLY DISCLOSED OR IS OTHERWISE AVAILABLE TO PURCHASER ON A NON-CONFIDENTIAL BASIS FROM A SOURCE
THAT IS NOT, TO ITS KNOWLEDGE, SUBJECT TO A CONFIDENTIALITY AGREEMENT WITH THE COMPANY, (VII) IN CONNECTION WITH ANY LITIGATION
TO WHICH ANY PURCHASER OR ANY OF ITS AFFILIATES MAY BE A PARTY, (VIII) TO THE EXTENT NECESSARY IN CONNECTION WITH THE EXERCISE
OF ANY REMEDY HEREUNDER, (IX) TO PURCHASER'S AFFILIATES (INCLUDING ITS GENERAL AND LIMITED PARTNERS AND INVESTMENT COMMITTEE),
LEGAL COUNSEL AND INDEPENDENT AUDITORS (X) IN CONNECTION WITH ANY GENERAL ADVERTISING OR OTHER GENERAL WRITTEN DESCRIPTION BY PURCHASER
OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (DISCLOSING ONLY THE NAME OF THE COMPANY AND ITS SUBSIDIARIES, THEIR LOGO AND
THE AMOUNT AND/OR GENERAL NATURE OF THE INVESTMENT BY PURCHASER), AND (XI) SUBJECT TO PROVISIONS SUBSTANTIALLY SIMILAR TO THOSE
CONTAINED IN THIS SECTION 12.13, TO ANY ACTUAL OR PROPOSED TRANSFEREE OR ASSIGNEE. A PURCHASER THAT DISCLOSES CONFIDENTIAL INFORMATION
TO OTHER PERSONS AS CONTEMPLATED BY CLAUSE (I), (II) OR (IX) OF THE FOREGOING PROVISO SHALL INFORM SUCH OTHER PERSONS OF THE CONFIDENTIAL
NATURE OF SUCH INFORMATION AND SHALL INSTRUCT THEM TO KEEP SUCH INFORMATION CONFIDENTIAL (EXCEPT FOR DISCLOSURES PERMITTED BY THE
FOREGOING PROVISO). BEFORE ANY PURCHASER DISCLOSES CONFIDENTIAL INFORMATION PURSUANT TO CLAUSE (IV) AND (VII) OF THE FOREGOING
PROVISO, SUCH PURCHASER SHALL, TO THE EXTENT PERMITTED BY LAW, ADVISE THE COMPANY OF SUCH PROPOSED DISCLOSURE SO THAT THE COMPANY
MAY, IN ITS DISCRETION, SEEK AN APPROPRIATE PROTECTIVE ORDER.         

 

12.14      WAIVER
OF JURY TRIAL.

 

TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE COMPANY AND PURCHASER HEREBY IRREVOCABLY AND EXPRESSLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT,
THE SENIOR SUBORDINATED NOTE OR ANY OF THE OTHER AGREEMENTS OR OTHER DOCUMENTS ENTERED INTO IN CONNECTION THEREWITH OR THE TRANSACTIONS
CONTEMPLATED THEREBY OR THE ACTIONS OF PURCHASER IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF.

 

[SIGNATURE PAGE FOLLOWS]

 

    	52

    	 

    

 

IN WITNESS WHEREOF,
the Company and Purchaser have caused this Agreement to be executed and delivered by their respective officers thereunto duly authorized.

 

	 	BUYER AND MERGER SUB:
	 	 
	 	UFI ACQUISITION, INC.
	 	 
	 	By:	 
	 	 	Richard L. Baum, Jr., as President
	 	 
	 	UFI MERGER SUB, INC.
	 	 
	 	By:	 
	 	 	Richard L. Baum, Jr., as President
	 	 
	 	Company's Address for Notices:
	 	Unique Fabricating Incorporated
	 	800 Standard Parkway
	 	Auburn Hills, MI  48326
	 	Attn:  John Weinhardt
	 	Facsimile:  (248) 853-7720
	 	Email:  jweinhardt@uniquefab.com
	 	 
	 	with a copy to:
	 	 
	 	Sills Cummis & Gross P.C.
	 	One Riverfront Plaza
	 	Newark, New Jersey  07102
	 	Attn:  Ira A. Rosenberg
	 	Facsimile:  (973) 643-6500
	 	Email:  irosenberg@sillscummis.com

 

[ADDITIONAL SIGNATURE PAGE FOLLOWS]

 

    	53

    	 

    

 

	 	PURCHASER:
	 	 
	 	THE PENINSULA FUND V LIMITED PARTNERSHIP
	 	 
	 	By:	Peninsula Fund V Management L.L.C.
	 	 	Its: General Partner
	 	 
	 	By:	Peninsula Capital Partners L.L.C.
	 	 	Its:  Manager
	 	 
	 	By:	 
	 	 	Scott A. Reilly
	 	 	President and Chief Investment Officer

 

[NOTE
PURCHASE AGREEMENT]

 

    	54

    	 

    

 

Execution Version

ANNEX I

to

Note Purchase Agreement

 

Information Concerning Purchaser

 

	Purchaser:	The Peninsula Fund V Limited Partnership
	 	 
	Aggregate Principal Amount of Senior Subordinated Note:	$11,500,000
	 	 
	Common Stock:	350,000 shares, representing 19.425% of the Company's Common Stock on a fully diluted basis
	 	 
	Address for notices:	The Peninsula Fund V Limited Partnership
	 	c/o Peninsula Capital Partners L.L.C.
	 	500 Woodward Avenue, Suite 2800
	 	Detroit, Michigan 48226
	 	Attn: Scott A. Reilly, President
	 	Phone: (313) 237-5100
	 	Facsimile: (313) 237-5111
	 	reilly@peninsulafunds.com
	 	 
	With a copy to:	Dickinson Wright PLLC
	 	500 Woodward Avenue, Suite 4000
	 	Detroit, Michigan 48226
	 	Attn: Richard M. Bolton, Esq.
	 	Facsimile: (313) 223-3598
	 	rbolton@dickinsonwright.com
	 	 
	Payments to be made by wire transfer to:	Comerica Bank/Master Trust
	 	ABA#: 072-000-096
	 	Unique Fabricating
	 	16.0% Senior Subordinated Note
	 	Further Credit to:  The Peninsula Fund V
	 	Limited Partnership
	 	Master Trust Account #: 2158598546
	 	Further Credit A/C #: 1085006914
	 	Bank Contact:  Ralph Johnston
	 	(313)222-9053

 

    	 

    	 

    

 

Execution Version

 

EXHIBIT A-1

to

Note Purchase Agreement

 

Form of Senior Subordinated Note

 

(See Attached)

 

    	 

    	 

    

 

Execution Version

 

EXHIBIT A-2

to

Note Purchase Agreement

 

Form of Deferral Note

 

(See Attached)

 

    	 

    	 

    

 

Execution Version

 

Exhibit B

to

Note Purchase Agreement

 

Form of Covenant Compliance Certificate

 

(See Attached)

    	 

    	 

    

 

Execution Version

 

Exhibit C

to

Note Purchase Agreement

 

Trailing Twelve Months Financial Information

 

(See Attached)

 

    	 

    	 

    

 

Exhibit D

to

Note Purchase Agreement

 

Form of Landlord’s Agreement

 

(See Attached)

 

    	2

    	 

    

 

Execution Version

 

 

 

NOTE PURCHASE AGREEMENT

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	1.                     DESCRIPTION OF SENIOR SUBORDINATED NOTE AND COMMITMENT	1
	 	 	 	 
	 	1.1	Description of Senior Subordinated Note.	1
	 	 	 	 
	 	1.2	Commitment; Funding.	1
	 	 	 	 
	 	1.3	Origination Points.	1
	 	 	 	 
	 	1.4	Use of Proceeds.	2
	 	 	 	 
	2.                     PAYMENT AND PREPAYMENT OF SENIOR SUBORDINATED NOTE	2
	 	 	 	 
	 	2.1	Principal and Interest Payments.	2
	 	 	 	 
	 	2.2	Optional Prepayments.	3
	 	 	 	 
	 	2.3	Mandatory Prepayments.	3
	 	 	 	 
	 	2.4	Reasonableness of Yield Maintenance Fee.	5
	 	 	 	 
	 	2.5	Additional Payments.	5
	 	 	 	 
	 	2.6	Direct Payment.	5
	 	 	 	 
	 	2.7	Payments Payable on Business Days.	5
	 	 	 	 
	 	2.8	Interest Laws.	5
	 	 	 	 
	 	2.9	Security.	6
	 	 	 	 
	 	2.10	Joint and Several Obligations.	6
	 	 	 	 
	3.                     REPRESENTATIONS AND WARRANTIES OF PURCHASER	7
	 	 	 	 
	 	3.1	Existence.	7
	 	 	 	 
	 	3.2	Authority.	7
	 	 	 	 
	 	3.3	Investor Status.	7

 

    	i

    	 

    

 

	 	3.4	Investment for own Account.	7
	 	 	 	 
	 	3.5	Legend on Notes and Stock.	7
	 	 	 	 
	4.                     REPRESENTATIONS AND WARRANTIES OF THE COMPANY	7
	 	 	 	 
	 	4.1	Corporate Existence and Authority.	8
	 	 	 	 
	 	4.2	Financial Statements.	8
	 	 	 	 
	 	4.3	Default.	8
	 	 	 	 
	 	4.4	Authorization and Compliance with Laws and Material Agreements.	9
	 	 	 	 
	 	4.5	Environmental Condition of the Property.	9
	 	 	 	 
	 	4.6	Solvency.	10
	 	 	 	 
	 	4.7	Litigation and Judgments.	10
	 	 	 	 
	 	4.8	Rights in Properties; Liens.	11
	 	 	 	 
	 	4.9	Enforceability.	11
	 	 	 	 
	 	4.10	Indebtedness.	11
	 	 	 	 
	 	4.11	Taxes.	11
	 	 	 	 
	 	4.12	Use of Proceeds: Margin Securities.	12
	 	 	 	 
	 	4.13	ERISA.	12
	 	 	 	 
	 	4.14	Delivery of Senior Loan Documents and Acquisition Documents.	12
	 	 	 	 
	 	4.15	Disclosure.	13
	 	 	 	 
	 	4.16	Subsidiaries and Capitalization.	13
	 	 	 	 
	 	4.17	Current Locations.	13
	 	 	 	 
	 	4.18	Investment Company Act.	13
	 	 	 	 
	 	4.19	Securities Laws.	14
	 	 	 	 
	 	4.20	No Labor Disputes.	14
	 	 	 	 
	 	4.21	Brokers.	14
	 	 	 	 
	 	4.22	Liens.	14

 

    	ii

    	 

    

 

	 	4.23	Insurance.	14
	 	 	 	 
	 	4.24	Conduct of Business.	14
	 	 	 	 
	 	4.25	Officers, Directors, Management Group, Etc.	14
	 	 	 	 
	 	4.26	Foreign Assets Control Regulations and Anti-Money Laundering.	15
	 	 	 	 
	5.                     CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER	15
	 	 	 	 
	 	5.1	Effectiveness of Senior Loan Documents.	15
	 	 	 	 
	 	5.2	Effectiveness of Subordination Agreement.	15
	 	 	 	 
	 	5.3	Minimum Availability.	15
	 	 	 	 
	 	5.4	Stockholders Equity.	16
	 	 	 	 
	 	5.5	No Litigation; Consummation of Transactions.	16
	 	 	 	 
	 	5.6	Documents.	16
	 	 	 	 
	 	5.7	Material Adverse Change.	18
	 	 	 	 
	 	5.8	Origination Points; Other Expenses.	19
	 	 	 	 
	 	5.9	No Default or Event of Default.	19
	 	 	 	 
	 	5.10	Representations and Warranties.	19
	 	 	 	 
	 	5.11	Due Diligence.	19
	 	 	 	 
	 	5.12	Acquisition Consummated.	19
	 	 	 	 
	 	5.13	Employment Agreements and Covenants.	19
	 	 	 	 
	6.                      AFFIRMATIVE COVENANTS	19
	 	 	 	 
	 	6.1	Financial Statements.	19
	 	 	 	 
	 	6.2	Certificates; Other Information.	20
	 	 	 	 
	 	6.3	Books and Records.	21
	 	 	 	 
	 	6.4	Financial Disclosure.	21
	 	 	 	 
	 	6.5	Accountants.	22
	 	 	 	 
	 	6.6	Disclosure of Material Matters.	22

 

    	iii

    	 

    

 

	 	6.7	Performance of Obligations.	22
	 	 	 	 
	 	6.8	Preservation of Existence and Conduct of Business.	22
	 	 	 	 
	 	6.9	Maintenance of Properties.	23
	 	 	 	 
	 	6.10	Payment of Taxes and Claims.	23
	 	 	 	 
	 	6.11	Compliance with Laws.	23
	 	 	 	 
	 	6.12	Payment of Leasehold Obligations.	23
	 	 	 	 
	 	6.13	Insurance.	24
	 	 	 	 
	 	6.14	Inspection Rights.	24
	 	 	 	 
	 	6.15	Notices.	25
	 	 	 	 
	 	6.16	Senior Loan Document Amendments.	25
	 	 	 	 
	 	6.17	Further Assurances.	25
	 	 	 	 
	 	6.18	Compliance with ERISA and the Code.	25
	 	 	 	 
	 	6.19	Compliance with Regulations T, U and X.	26
	 	 	 	 
	 	6.20	Fiscal Year.	26
	 	 	 	 
	 	6.21	Environmental Costs.	26
	 	 	 	 
	 	6.22	Management.	26
	 	 	 	 
	 	6.23	Inspection; Board of Directors.	26
	 	 	 	 
	 	6.24	Actions Consistent With Agreements.	28
	 	 	 	 
	 	6.25	Budget Approval.	28
	 	 	 	 
	 	6.26	Post-closing Deliveries.	29
	 	 	 	 
	7.                     NEGATIVE COVENANTS	29
	 	 	 	 
	 	7.1	Indebtedness.	29
	 	 	 	 
	 	7.2	Limitation on Liens.	29
	 	 	 	 
	 	7.3	Merger, Acquisition, Dissolution and Sale of Assets.	29
	 	 	 	 
	 	7.4	Restricted Payments.	30

 

    	iv

    	 

    

 

	 	7.5	Loans and Investments.	30
	 	 	 	 
	 	7.6	Transactions with Affiliates.	30
	 	 	 	 
	 	7.7	Nature of Business.	30
	 	 	 	 
	 	7.8	Modification of Senior Loan Documents/Acquisition Documents.	31
	 	 	 	 
	 	7.9	Capital Expenditures.	31
	 	 	 	 
	 	7.10	Financial Covenants.	31
	 	 	 	 
	 	7.11	Remuneration.	32
	 	 	 	 
	 	7.12	Use of Proceeds.	32
	 	 	 	 
	 	7.13	Stock Issuances.	32
	 	 	 	 
	 	7.14	Acquisition of Senior Debt.	32
	 	 	 	 
	8.                     EVENTS OF DEFAULT	32
	 	 	 	 
	 	8.1	Events of Default.	32
	 	 	 	 
	 	8.2	Remedies of Holders upon Occurrence of Event of Default.	34
	 	 	 	 
	 	8.3	Annulment of Acceleration.	34
	 	 	 	 
	 	8.4	Payment of Subordinated Obligations.	34
	 	 	 	 
	 	8.5	Remedies.	35
	 	 	 	 
	 	8.6	Conduct No Waiver.	35
	 	 	 	 
	9.                     SUBORDINATION	35
	 	 	 	 
	10.                   FORM OF SENIOR SUBORDINATED NOTE; REGISTRATION, TRANSFER AND REPLACEMENT	36
	 	 	 	 
	 	10.1	Form of Senior Subordinated Note.	36
	 	 	 	 
	 	10.2	Subordinated Note Register.	36
	 	 	 	 
	 	10.3	Issuance of New Senior Subordinated Note upon Exchange or Transfer.	36
	 	 	 	 
	 	10.4	Replacement of Senior Subordinated Note and/or Deferral Note.	36
	 	 	 	 
	 	10.5	Deferral Note.	37
	 	 	 	 
	11.                   INTERPRETATION OF AGREEMENT	37

 

    	v

    	 

    

 

	 	11.1	Certain Terms Defined.	37
	 	 	 	 
	 	11.2	Accounting Principles.	47
	 	 	 	 
	 	11.3	Directly or Indirectly.	47
	 	 	 	 
	12.                   MISCELLANEOUS	48
	 	 	 	 
	 	12.1	Expenses.	48
	 	 	 	 
	 	12.2	Indemnification.	48
	 	 	 	 
	 	12.3	Notices.	49
	 	 	 	 
	 	12.4	Reproduction of Documents.	49
	 	 	 	 
	 	12.5	Assignment; Sale of Interest.	50
	 	 	 	 
	 	12.6	Successors and Assigns.	50
	 	 	 	 
	 	12.7	Headings.	50
	 	 	 	 
	 	12.8	Counterparts.	50
	 	 	 	 
	 	12.9	Reliance on and Survival Provisions.	50
	 	 	 	 
	 	12.10	Integration and Severability.	50
	 	 	 	 
	 	12.11	LAW GOVERNING.	51
	 	 	 	 
	 	12.12	WAIVERS; MODIFICATION.	51
	 	 	 	 
	 	12.13	CONFIDENTIALITY.	52
	 	 	 	 
	 	12.14	WAIVER OF JURY TRIAL.	52

 

    	vi

    	 

    

 

ANNEX, SCHEDULES AND EXHIBITS:

 

	Annex I	Information Concerning Purchaser
	 	 
	Schedule 4.2	Financial Statements / Material Adverse Change
	Schedule 4.3	Defaults Under Existing Agreements
	Schedule 4.4	Authorizations, Approvals, Consents and Filings
	Schedule 4.5	Environmental Condition of Property
	Schedule 4.7	Litigation and Judgments
	Schedule 4.8	Liens
	Schedule 4.10	Indebtedness
	Schedule 4.16	Subsidiaries and Capitalization
	Schedule 4.17	Current Locations
	Schedule 4.21	Brokers
	Schedule 6.1(b)	MD&A
	 	 
	Exhibit A-1	Form of Senior Subordinated Note
	Exhibit A-2	Form of Deferral Note
	Exhibit B	Form of Covenant Compliance Certificate
	Exhibit C	Trailing Twelve Months Financial Information
	Exhibit D	Form of Landlord’s Agreement

 

    	viiExhibit 10.13

 

FIRST AMENDMENT TO NOTE PURCHASE AGREEMENT

 

THIS FIRST AMENDMENT
TO NOTE PURCHASE AGREEMENT (this "Amendment"), by and among UFI ACQUISITION, INC., a Delaware corporation (“UFI
Acquisition”), UNIQUE FABRICATING INCORPORATED, a Delaware corporation (“Unique Fabricating”), UNIQUE
FABRICATING REALTY, LLC, a Michigan limited liability company (“UFR”), UNIQUE FABRICATING SOUTH, INC., a Michigan
corporation (“UFS”, and together with UFI Acquisition, Unique Fabricating, and UFR, collectively, the “Companies”),
and THE PENINSULA FUND V LIMITED PARTNERSHIP, a Delaware limited partnership (the “Purchaser”), is dated and
effective as of December _____, 2013 (the “Effective Date”).

 

RECITALS

 

A.          UFI Acquisition,
UFI Merger Sub, Inc., a Delaware corporation (“Merger Sub”) and the Purchaser are parties to that certain Note
Purchase Agreement, dated as of March 18, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the
"Note Purchase Agreement"), pursuant to which the Purchaser agreed, subject to the terms and conditions thereof,
to purchase certain senior subordinated debt of the Companies.

 

B.          Pursuant to an
Agreement and Plan of Merger, dated as of February 19, 2013, by and among UFI Acquisition, Merger Sub, Unique Fabricating, and
American Capital, Ltd., on March 18, 2013, Merger Sub merged with and into Unique Fabricating.

 

C.          Unique Fabricating,
UFS and UFR are parties to that certain Joinder Agreement, dated as of March 18, 2013, pursuant to which such parties each (i)
became a party, as if an original signatory thereto, to the Note Purchase Agreement and the Senior Subordinated Note (as defined
in the Note Purchase Agreement), and (ii) became jointly and severally liable for all of the Senior Subordinated Obligations (as
defined in the Note Purchase Agreement).

 

D.          The Companies
and the Purchaser now desire to amend the Note Purchase Agreement on the terms and conditions set forth herein.

 

AGREEMENTS

 

For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and upon fulfillment of the conditions set forth in
Article 4 of this Amendment, the parties agree as follows:

 

ARTICLE 1. 

AMENDMENTS

 

Subject to the terms
and conditions set forth in this Amendment, the Purchaser and the Companies hereby agree to amend the Note Purchase Agreement as
follows:

 

1.1          The principal
amount of the Senior Subordinated Note set forth in Subsections 1.1 and 1.2 of the Note Purchase Agreement, and set forth in Annex
I to the Note Purchase Agreement, shall be amended to be “$13,000,000”. 

    	 

    	 

    

1.2          Subsection
1.1 of the Note Purchase Agreement is hereby further amended by adding the following sentence at the end of such Subsection:

 

Interest on $1,500,000 of the
principal amount of the Senior Subordinated Note shall commence on the First Amendment Effective Date.

 

1.3          Subsection
1.3 of the Note Purchase Agreement is hereby amended and restated in its entirety to read as follows:

 

1.4          Use of Proceeds. 

 

The proceeds
from the sale of the Senior Subordinated Note shall be used solely (a) to fund the Acquisition and the Prescotech Acquisition,
(b) to pay all fees, costs and expenses payable pursuant to this Agreement and the Other Agreements, and (c) prior to such proceeds
being used for the purposes set forth in the preceding clauses (a) and (b), for Permitted Investments on a temporary basis.

 

1.4          Subsection
6.7 of the Note Purchase Agreement is hereby amended and restated in its entirety to read as follows:

 

6.7          Performance of
Obligations. 

 

The Company
will duly and punctually pay and/or perform, and will cause its Subsidiaries to duly punctually pay and/or perform, its obligations
under this Agreement, the Senior Loan Documents, the Acquisition Documents, the Prescotech Acquisition Documents and the Other
Agreements to which it is a party.

 

1.5          Subsection
7.5 of the Note Purchase Agreement is hereby amended and restated in its entirety to read as follows:

 

7.5          Loans and
Investments.

 

Except for
Permitted Investments, the Company will not, and shall not permit its Subsidiaries to, make any advance, loan, extension of credit,
or capital contribution to or investment in, or purchase any stock, bonds, notes, debentures, or other securities of any Person,
including without limitation its officers and employees other than: (a) advances to its employees, including its officers, with
respect to expenses incurred or to be incurred by such employees in the ordinary course of business which expenses do not exceed
Fifty Thousand Dollars ($50,000) at any time outstanding; (b) trade credit extended in the ordinary course of business in accordance
with customary trade practices; (c) working capital advances made from time to time by Unique Fabricating to its domestic Subsidiaries;
and (d) so long as no Event of Default has occurred, loans to its officers and/or other management personnel in an aggregate amount
not to exceed One Hundred Thousand Dollars ($100,000), the proceeds of which (i) shall be used solely for the purchase of the capital
stock of UFI Acquisition, and (ii) shall be repaid in full no later than March 31, 2014.

 

    	 

    	 

    

 

1.6          Subsection
7.8 of the Note Purchase Agreement is hereby amended and restated in its entirety to read as follows:

 

7.8          Modification
of Senior Loan Documents/Acquisition Documents. 

 

Neither the Company nor any of
its Subsidiaries will agree or consent to any modification, amendment or waiver of any of the terms or provisions of the Senior
Loan Documents, Acquisition Documents, Prescotech Acquisition Documents, Certificate of Incorporation or Bylaws (or other similar
organizational documents), in effect on the date hereof, that could reasonably have a Material Adverse Effect on Purchaser’s
rights or obligations hereunder, without Purchaser's prior written consent, which consent shall not be unreasonably withheld or
delayed.

 

1.7          Subsection
7.9 of the Note Purchase Agreement is hereby amended and restated in its entirety to read as follows:

 

Neither the
Company nor any of its Subsidiaries will make any Capital Expenditures if, as a result thereof, the Capital Expenditures (excluding
Capital Expenditures relating to acquisitions which require Purchaser's approval pursuant to Section 7.3 hereof) of the Company
and its Subsidiaries in the aggregate would, as a result thereof, exceed $1,350,000 for the fiscal year 2013 and $1,350,000 for
any fiscal year thereafter. In the event that the Company or any of its Subsidiaries enters into a capital lease with respect to
fixed assets, for purposes of calculating Capital Expenditures under this Section 7.9, the lesser of (a) the aggregate amount of
the present value of all minimum payments (excluding executory costs) due for the entire term of such capital lease, or (b) the
cost of such fixed asset at the inception of such capital lease shall be considered expended in full on the date that the Company
or such Subsidiary enters into such capital lease. Notwithstanding the generality of the foregoing, the purchase of assets pursuant
to the Prescotech Acquisition shall not be included in the calculation of Capital Expenditures for the purpose of the foregoing
covenant.

 

1.8          Subsection
7.10(b) of the Note Purchase Agreement is hereby amended and restated in its entirety to read as follows:

 

(b)          Leverage to Cash Flow Ratio.
The Company will not permit the Leverage to Cash Flow Ratio of the Company on a consolidated basis at any time during the month
to be greater than the ratio set forth below for such month:

 

	Month	 	Ratio	 
	Through December 31, 2014	 	 	4.10	 
	January 2015 – December 31, 2015	 	 	3.60	 
	January 2016 and thereafter	 	 	3.10	 

 

    	 

    	 

    

 

1.9          Schedule 4.5
(Environmental Condition of Property), Schedule 4.16 (Subsidiaries and Capitalization) and Schedule 4.17 (Current Locations) to
the Note Purchase Agreement are hereby amended and restated in their entirety as set forth on Exhibit A hereto.

 

1.10          Annex I of
the Note Purchase Agreement is hereby amended by deleting the phrase to the right of “Common Stock” and inserting the
following phrase in lieu thereof:

 

471,800 shares, representing 19.51%
of UFI Acquisition's Common Stock on a fully diluted basis

 

1.11          The following
defined terms set forth in Section 11.1 of the Note Purchase Agreement are hereby amended and restated in their entirety to read
as follows:

 

Senior Debt. This term
means, at any given time, the Indebtedness (whether now outstanding or hereafter incurred) of the Company in respect of the Senior
Loan Agreement, in a principal amount not to exceed $15,000,000 in revolving credit and $20,000,000 in term loans (less the aggregate
amount of principal payments made by the Company or its Subsidiaries to the Senior Lender under such term loan), plus interest,
fees, expenses, indemnities and all other amounts payable under the Senior Loan Agreement and any notes, security documents, guaranties
or other loan documents referred to therein or pursuant thereto, secured by all assets of the Company or its Subsidiaries.

 

Senior
Subordinated Note. This term means a term promissory note in the principal amount of $13,000,000 issued to Purchaser pursuant
to the Note Agreement, together with all renewals, modifications, extensions, substitutions and replacements thereof.

 

Senior Term Debt. This
term means the term loans in the aggregate original principal amount of $20,000,000 made by the Senior Lender to Unique Fabricating
pursuant to the Senior Loan Documents, maturing on the Term Loan Maturity Date (as defined in the Senior Loan Agreement as of the
First Amendment Effective Date).

 

1.12          Subsection
11.1 of the Note Purchase Agreement is hereby amended by inserting the following defined terms into such Subsection in appropriate
alphabetical order:

 

First Amendment Effective Date.
This term means the date on which the conditions to effectiveness of the First Amendment to Note Purchase Agreement executed by
the Companies and the Purchaser as of December _____, 2013, are met to the Purchaser’s satisfaction.

 

Prescotech. This term means,
collectively, PrescoTech Holdings, Inc., a Kentucky corporation, PrescoTech Industries, Inc., a Kentucky corporation, and PrescoTech
Real Estate Holdings, LLC, a Kentucky limited liability company.

 

    	 

    	 

    

 

Prescotech Acquisition.
This term means the transactions described in the Prescotech Acquisition Agreement, upon the completion of which 100% of the assets
of Prescotech shall be owned by Unique-Presco.

 

Prescotech Acquisition Agreement.
This term means that certain Asset Purchase Agreement, dated December _____, 2013, by and among Unique Fabricating, Unique-Presco,
as "Buyer," Prescotech, as "Companies," and Matthew T. Schoen and Duane E. Youngren, as "Stockholders".

 

Presecotech Acquisition Documents.
This term means the Prescotech Acquisition Agreement and all other documents, agreements, instruments, and certificates executed
and delivered in connection therewith or related thereto.

 

UFI Acquisition. This term
means Unique Acquisition, Inc., a Delaware corporation.

 

Unique Fabricating. This
term means Unique Fabricating Incorporated, a Delaware corporation.

 

Unique-Presco. This term
means Unique-Prescotech, Inc., a Delaware corporation.

 

1.13          Concurrently
with the execution and delivery of this Amendment, the Companies and Unique-Presco shall execute and deliver to the Purchaser an
Allonge to Senior Subordinated Note (the “Allonge”), evidencing the outstanding principal amount of the Senior
Subordinated Note (i.e., $13,000,000 upon the consummation of the transactions contemplated by this Amendment) in form and substance
satisfactory to the Purchaser. Subject to the satisfaction or waiver of the conditions precedent set forth in Article 4 of this
Amendment, upon receipt by the Purchaser of the Allonge, the principal amount of the Senior Subordinated Note, and all accrued
and unpaid interest thereon, shall thereafter be evidenced by the Senior Subordinated Note, as modified by the Allonge; and all
references to the “Senior Subordinated Note” in any documents relating thereto, including but not limited to the Note
Purchase Agreement, shall thereafter be deemed to refer to the Senior Subordinated Note, as modified by the Allonge. Without duplication,
any amounts currently outstanding under the existing Senior Subordinated Note shall continue to be amounts owed under and pursuant
to the terms of thereof, and the Allonge shall in no way constitute a novation of the existing Senior Subordinated Note or extinguish,
cancel or satisfy the Company's unconditional obligation to repay all indebtedness evidenced by the existing Senior Subordinated
Note, as modified by the Allonge. 

 

ARTICLE 2.

CONSENTS

 

2.1          Unique Fabricating
and Unique-Presco have informed the Purchaser that each desires to (a) enter into the Prescotech Acquisition Documents to which
it is a party and consummate the Prescotech Acquisition pursuant to the terms and conditions of such documents (the “Prescotech
Transaction”), and (b) amend the Senior Loan Documents as provided in that certain Second Amendment to Loan and Security
Agreement, dated as of the Effective Date, between Senior Lender and Unique Prescotech (the “Senior Debt Amendment”),
and the documents contemplated thereby. The Companies have requested that the Purchaser consent to the Prescotech Transaction and
the Senior Debt Amendment, and the Purchaser hereby consents to the Prescotech Transaction and the Senior Debt Amendment, subject
to the satisfaction of all conditions set forth in Section 4 of this Amendment and the Companies’ other representations,
warranties, covenants and obligations set forth in this Agreement. Further, Purchaser agrees that the Company’s entering
into and consummation (as applicable) of the Prescotech Transaction and the Senior Debt Amendment shall not be deemed to be a Default
or Event of Default under the Note Purchase Agreement, including without limitation Sections 7.3, 7.8 and 8.1 thereof.

 

    	 

    	 

    

 

2.2          The consents
in Section 2.1 shall be strictly limited as stated above and nothing herein shall be construed as a waiver of, a consent to, or
any modification or amendment, or limitation of, any other term or condition of the Note Purchase Agreement or any Other Agreement
or of any right of the Purchaser under the Note Purchase Agreement or the Other Agreements to declare an Event of Default or to
exercise the remedies provided to the Purchaser thereunder in any other circumstances.

 

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES

 

3.1          The Companies
represent and warrant to the Purchaser that: (a) the execution, delivery and performance of this Amendment by the Companies are
within its powers, have been duly authorized by all requisite action on the part of the Companies and are not in contravention
with any law, of the terms of their respective organizational documents, as amended, or any undertaking to which they are a party
or by which they are bound; (b) this Amendment is the legal, valid and binding obligation of the Companies, enforceable against
the Companies in accordance with the terms hereof, except as may be limited by bankruptcy, insolvency, moratorium, reorganization,
fraudulent conveyance, fraudulent transfer, or other laws of general application relating to the enforcement of creditors' rights
and by equitable principles and the availability of equitable remedies; (c) after giving effect to the amendments herein contained,
each of the representations and warranties of the Companies contained in the Note Purchase Agreement are true and correct in all
material respects on and as of the date hereof with the same force and effect as if made on and as of the date hereof, except to
the extent that such representations and warranties specifically relate solely to projections; and (d) except as expressly waived
hereby, no Default or Event of Default exists or has occurred and is continuing on the date hereof.

 

ARTICLE 4.

CONDITIONS OF EFFECTIVENESS

 

This Amendment shall
become effective as of the Effective Date once each of the following conditions has been satisfied or waived by Purchaser in writing:

 

4.1          This Amendment
shall have been duly executed and delivered by the Companies and the Purchaser.

 

4.2          Purchaser shall
have received the following, each in form and substance satisfactory to Purchaser:

 

    	 

    	 

    

 

(a)          Copies of all
resolutions, consents, authorizations and approvals required in connection with the execution, delivery and performance by the
Companies of, or the validity and enforceability of, this Amendment and all other documents, instruments and agreements anticipated
hereby or executed in connection herewith;

 

(b)          Executed copies
of consents to this Amendment and the Prescotech Acquisition executed by the Senior Lender, in form and substance satisfactory
to the Purchaser (to the extent not satisfactorily addressed in the Senior Debt Amendment);

 

(c)          Executed copies
of the Senior Debt Amendment and the agreements, documents and instruments executed in connection therewith or contemplated thereby,
in form and substance acceptable to the Purchaser, together with an executed certificate of the President and Chief Executive Officer
of Unique Fabricating certifying that such copies are true, correct and complete;

 

(d)          Executed copies
of the Prescotech Acquisition Documents, in form and substance acceptable to the Purchaser, together with an executed certificate
of the President and Chief Executive Officer of Unique Fabricating certifying that such copies are true, correct and complete;

 

(e)          The Allonge executed
by the Companies and Unique-Presco, in form and substance acceptable to Purchaser;

 

(f)          A Joinder Agreement
executed by Unique-Presco, in form and substance acceptable to Purchaser;

 

(g)          The First Amendment
to Stock Purchase Agreement executed by Unique Acquisition, in form and substance acceptable to Purchaser;

 

(h)          The First Amendment
to Pledge and Security Agreement and Irrevocable Proxy executed by Unique Fabricating, in form and substance acceptable to Purchaser;

 

(i)          The
Security Agreement executed by Unique-Presco, in form and substance acceptable to Purchaser;

 

(j)          The Warrant to
purchase 9,744 shares of the common stock of Unique Acquisition, executed by Unique Acquisition for the benefit of Purchaser, in
form and substance acceptable to Purchaser;

 

(k)          The First Amendment
to Subordination and Intercreditor Agreement executed by the Senior Lender, in form and substance acceptable to Purchaser;

 

(l)          The Acknowledgment
and Consent of Subordinated Creditor, executed by Taglich Private Equity, LLC, in form and substance acceptable to Purchaser;

 

(m)          An executed opinion
of counsel to the Companies and Unique-Presco, in form and substance acceptable to Purchaser;

 

    	 

    	 

    

 

(n)          Payment of the
origination points due on the increased amount of the Senior Subordinated Note (i.e., $1,500,000), pursuant to Section 1.3(a) of
the Note Purchase Agreement.

 

4.3          The Purchaser
shall have received such other information, documents, agreements, commitments and undertakings as the Purchaser or the Purchaser's
counsel may reasonably request.

 

4.4          The Companies
shall have paid the reasonable fees and expenses of legal counsel to the Purchaser incurred in connection with this Amendment,
together with all past due fees and expenses of Purchaser's counsel in connection with the Note Purchase Agreement and the Other
Agreements.

 

ARTICLE 5.

MISCELLANEOUS

 

5.1          References in
the Note Purchase Agreement or in any note, certificate, instrument or other document to the "Note Purchase Agreement"
shall be deemed to be references to the Note Purchase Agreement as amended hereby and as further amended from time to time.

 

5.2          The Companies
agree to indemnify and hold harmless the Purchaser for the payment of all costs and expenses arising in connection with this Amendment,
including the reasonable fees of counsel to the Purchaser in connection with preparing this Amendment.

 

5.3          The Companies
acknowledge and agree that the Purchaser has fully performed all of its obligations under all documents executed in connection
with the Note Purchase Agreement and the Other Agreements and all actions that have been taken by the Purchaser have been reasonable
and appropriate under the circumstances and within its rights under the Note Purchase Agreement and the Other Agreements and all
other documents executed in connection therewith and otherwise available. Each Company represents and warrants that it is not aware
of any claims or causes of action as of the Effective Date against the Purchaser, and hereby waives all such claims and causes
of action as of the Effective Date.

 

5.4          Except as expressly
amended hereby, the Companies agree that the Note Purchase Agreement, the Other Agreements and all other documents and agreements
executed by the Companies in connection with the Note Purchase Agreement in favor of the Purchaser are ratified and confirmed and
shall remain in force and effect, enforceable against the Companies in accordance with their respective terms, except as may be
limited by bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance, fraudulent transfer, or other laws of general
application relating to the enforcement of creditors' rights and by equitable principles and the availability of equitable remedies,
and that they have no set off, counterclaim or defense with respect to any of the foregoing.

 

5.5          Defined terms
used, but not defined, herein shall have the respective meanings ascribed thereto in the Note Purchase Agreement.

 

5.6          This Amendment
may be signed upon any number of counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument.

    	 

    	 

    

 

5.7          This Amendment
is a contract made under, and shall be governed by and construed in accordance with, the law of the State of Michigan applicable
to contracts made and to be performed entirely within such State and without giving effect to choice of law principles of such
State.

 

[SIGNATURE PAGE FOLLOWS]

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties have caused this First Amendment to Note Purchase Agreement to be executed and delivered on the Effective Date.

 

 

	COMPANIES:	 
	 	 
	UFI ACQUISITION, INC.	 
	 	 	 
	By:	 	 
	Name:	Richard L. Baum, Jr.	 
	Its:	President	 
	 	 
	UNIQUE FABRICATING INCORPORATED	 
	 	 	 
	By:	 	 
	Name:	John Weinhardt	 
	Its:	President and Chief Executive Officer	 
	 	 	 
	UNIQUE FABRICATING REALTY, LLC	 
	 	 	 
	By:	Unique Fabricating Incorporated	 
	Its:	Sole Member	 
	 	 	 	 
	 	By:	 	 
	 	Name:	John Weinhardt	 
	 	Its:	President and Chief Executive Officer	 
	 	 	 	 
	UNIQUE FABRICATING SOUTH, INC.	 
	 	 	 
	By:	 	 
	Name:	John Weinhardt	 
	Its:	President and Chief Executive Officer	 

 

[ADDITIONAL SIGNATURE PAGE FOLLOWS]

    	 

    	 

    

 

	 	PURCHASER:
	 	 
	 	THE PENINSULA FUND V LIMITED PARTNERSHIP
	 	 	 
	 	By:	Peninsula Fund V Management L.L.C.
	 	Its:	General Partner
	 	 	 
	 	 	By:	Peninsula Capital Partners L.L.C.
	 	 	Its:	Manager
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	Scott A. Reilly
	 	 	 	 	President and Chief Investment Officer

 

[First Amendment to Note Purchase Agreement]

 

    	 

    	 

    

 

EXHIBIT A

 

Updated Schedules to Note Purchase
Agreement

 

See Attached.

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