Document:

Exhibit
10.9

 

INDEMNIFICATION
AGREEMENT

 

This
Indemnification Agreement (“Agreement”), dated as of February 2, 2018, is by and between Purple Innovation,
Inc., a Delaware corporation (the “Company”) and [NAME OF DIRECTOR/OFFICER] (the “Indemnitee”).

 

WHEREAS,
Indemnitee is a director and/or officer of the Company;

 

WHEREAS,
both the Company and Indemnitee recognize the increased risk of litigation and other claims being asserted against directors and
officers of public companies;

 

WHEREAS,
the board of directors of the Company (the “Board”) has determined that enhancing the ability of the Company
to retain and attract as directors and officers the most capable persons is in the best interests of the Company and that the
Company therefore should seek to assure such persons that indemnification and insurance coverage is available; and

 

WHEREAS,
in recognition of the need to provide Indemnitee with substantial protection against personal liability, in order to procure Indemnitee’s
continued service as a director and/or officer of the Company and to enhance Indemnitee’s ability to serve the Company in
an effective manner, and in order to provide such protection pursuant to express contract rights (intended to be enforceable irrespective
of, among other things, any amendment to the Company’s certificate of incorporation or bylaws (collectively, the “Constituent
Documents”), any change in the composition of the Board or any change in control or business combination transaction
relating to the Company), the Company wishes to provide in this Agreement for the indemnification of, and the advancement of Expenses
(as defined in Section 1(f) below) to, Indemnitee as set forth in this Agreement and for the coverage of Indemnitee under the
Company’s directors’ and officers’ liability insurance policies.

 

NOW,
THEREFORE, in consideration of the foregoing and the Indemnitee’s agreement to continue to provide services to the Company,
the parties agree as follows:

 

1.  Definitions.
For purposes of this Agreement, the following terms shall have the following meanings:

 

(a)  “Beneficial
Owner” has the meaning given to the term “beneficial owner” in Rule 13d-3 under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”).

 

(b)  “Change
in Control” means the occurrence after the date of this Agreement of any of the following events:

 

(i)  any
Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing thirty percent (30%)
or more of the Company’s then outstanding Voting Securities;

 

(ii)  the
consummation of a reorganization, merger or consolidation, unless immediately following such reorganization, merger or consolidation,
all of the Beneficial Owners of the Voting Securities of the Company immediately prior to such transaction beneficially own, directly
or indirectly, more than fifty percent (50%) of the combined voting power of the outstanding Voting Securities of the entity
resulting from such transaction;

 

    

     

    

 

(iii)  during
any period of two consecutive years, not including any period prior to the execution of this Agreement, individuals who at the
beginning of such period constituted the Board (including for this purpose any new directors whose election by the Board or nomination
for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors at the beginning of the period or whose election or nomination for election was previously
so approved) cease for any reason to constitute at least a majority of the Board; or

 

(iv)  the
stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement for the sale
or disposition by the Company of all or substantially all of the Company’s assets.

 

(c)  “Claim”
means:

 

(i)  any
threatened, pending or completed action, suit, proceeding or alternative dispute resolution mechanism, whether civil, criminal,
administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law; or

 

(ii)  any
inquiry, hearing or investigation that the Indemnitee determines might lead to the institution of any such action, suit, proceeding
or alternative dispute resolution mechanism.

 

(d)  “Delaware
Court” shall have the meaning ascribed to it in Section 9(e) below.

 

(e)  “Disinterested
Director” means a director of the Company who is not and was not a party to the Claim in respect of which indemnification
is sought by Indemnitee.

 

(f)  “Expenses”
means any and all expenses, including attorneys’ and experts’ fees, court costs, transcript costs, travel expenses,
duplicating, printing and binding costs, telephone charges, and all other costs and expenses incurred in connection with investigating,
defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or participate in,
any Claim. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Claim, including
without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond
or its equivalent, and (ii) for purposes of Section 5 only, Expenses incurred by Indemnitee in connection with the interpretation,
enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise. Expenses, however, shall
not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

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(g)  “Expense
Advance” means any payment of Expenses advanced to Indemnitee by the Company pursuant to Section 4 or Section 5 hereof.

 

(h)  “Indemnifiable
Event” means any event or occurrence, whether occurring before, on or after the date of this Agreement, related to the
fact that Indemnitee is or was a director, officer, employee or agent of the Company or any subsidiary of the Company, or is or
was serving at the request of the Company as a director, officer, employee, member, manager, trustee or agent of any other corporation,
limited liability company, partnership, joint venture, trust or other entity or enterprise (collectively with the Company, “Enterprise”)
or by reason of an action or inaction by Indemnitee in any such capacity (whether or not serving in such capacity at the time
any Loss is incurred for which indemnification can be provided under this Agreement).

 

(i)  “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither
presently performs, nor in the past five years has performed, services for either: (i) the Company or Indemnitee (other than in
connection with matters concerning Indemnitee under this Agreement or of other indemnitees under similar agreements) or (ii) any
other party to the Claim giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights
under this Agreement.

 

(j)  “Losses”
means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil, criminal or other), ERISA
excise taxes, amounts paid or payable in settlement, including any interest, assessments, any federal, state, local or foreign
taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement and all other charges paid or payable
in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend,
be a witness or participate in, any Claim.

 

(k)  “Person”
means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association,
organization, governmental entity or other entity and includes the meaning set forth in Sections 13(d) and 14(d) of the Exchange
Act.

 

(l)  “Standard
of Conduct Determination” shall have the meaning ascribed to it in Section 9(b) below.

 

(m)  “Voting
Securities” means any securities of the Company that vote generally in the election of directors.

 

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2.  Services
to the Company. Indemnitee agrees to continue
to serve as a director or officer of the Company for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders
Indemnitee’s resignation or is no longer serving in such capacity. This Agreement shall not be deemed an employment agreement
between the Company (or any of its subsidiaries or Enterprise) and Indemnitee. Indemnitee specifically acknowledges that Indemnitee’s
service to the Company or any of its subsidiaries or Enterprise is at will and the Indemnitee may be discharged at any time for
any reason, with or without cause, except as may be otherwise provided in any written employment agreement between Indemnitee
and the Company (or any of its subsidiaries or Enterprise), other applicable formal severance policies duly adopted by the Board
or, with respect to service as a director or officer of the Company, by the Company’s Constituent Documents or Delaware
law.

 

3.  Indemnification.
Subject to Section 9 and Section 10 of this Agreement, the Company shall indemnify Indemnitee, to the fullest extent permitted
by the laws of the State of Delaware in effect on the date hereof, or as such laws may from time to time hereafter be amended
to increase the scope of such permitted indemnification, against any and all Losses if Indemnitee was or is or becomes a party
to or participant in, or is threatened to be made a party to or participant in, any Claim by reason of or arising in part out
of an Indemnifiable Event, including, without limitation, Claims brought by or in the right of the Company, Claims brought by
third parties, and Claims in which the Indemnitee is solely a witness.

 

4.  Advancement
of Expenses. Indemnitee shall have the right
to advancement by the Company, prior to the final disposition of any Claim by final adjudication to which there are no further
rights of appeal, of any and all Expenses actually and reasonably paid or incurred by Indemnitee in connection with any Claim
arising out of an Indemnifiable Event. Indemnitee’s right to such advancement is not subject to the satisfaction of any
standard of conduct. Without limiting the generality or effect of the foregoing, within ten (10) days after any request by Indemnitee,
the Company shall, in accordance with such request, (a) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds
in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such Expenses. In connection with any request for
Expense Advances, Indemnitee shall not be required to provide any documentation or information to the extent that the provision
thereof would undermine or otherwise jeopardize attorney-client privilege. In connection with any request for Expense Advances,
Indemnitee shall execute and deliver to the Company an undertaking (which shall be accepted without reference to Indemnitee’s
ability to repay the Expense Advances) to repay any amounts paid, advanced, or reimbursed by the Company for such Expenses to
the extent that it is ultimately determined, following the final disposition of such Claim, that Indemnitee is not entitled to
indemnification hereunder. Indemnitee’s obligation to reimburse the Company for Expense Advances shall be unsecured and
no interest shall be charged thereon.

 

5.  Indemnification
for Expenses in Enforcing Rights. To the
fullest extent allowable under applicable law, the Company shall also indemnify against, and, if requested by Indemnitee, shall
advance to Indemnitee subject to and in accordance with Section 4, any Expenses actually and reasonably paid or incurred by Indemnitee
in connection with any action or proceeding by Indemnitee for (a) indemnification or reimbursement or advance payment of Expenses
by the Company under any provision of this Agreement, or under any other agreement or provision of the Constituent Documents now
or hereafter in effect relating to Claims relating to Indemnifiable Events, and/or (b) recovery under any directors’ and
officers’ liability insurance policies maintained by the Company. However, in the event that Indemnitee is ultimately determined
not to be entitled to such indemnification or insurance recovery, as the case may be, then all amounts advanced under this Section
5 shall be repaid. Indemnitee shall be required to reimburse the Company in the
event that a final judicial determination is made that such action brought by Indemnitee was frivolous or not made in good faith.

 

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6.  Partial
Indemnity. If Indemnitee is entitled under
any provision of this Agreement to indemnification by the Company for a portion of any Losses in respect of a Claim related to
an Indemnifiable Event but not for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
thereof to which Indemnitee is entitled.

 

7.  Notification
and Defense of Claims.

 

(a)  Notification
of Claims. Indemnitee shall notify the Company in writing as soon as practicable of any Claim which could relate to an Indemnifiable
Event or for which Indemnitee could seek Expense Advances, including a brief description (based upon information then available
to Indemnitee) of the nature of, and the facts underlying, such Claim. The failure by Indemnitee to timely notify the Company
hereunder shall not relieve the Company from any liability hereunder except that the Company shall not be liable to indemnify
Indemnitee under this Agreement with respect to any judicial award in a Claim related to an Indemnifiable Event if the Company
was not given a reasonable and timely opportunity to participate at its expense in the defense of such action.

 

(b)  Defense
of Claims. The Company shall be entitled to participate in the defense of any Claim relating to an Indemnifiable Event at
its own expense and, except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof
with counsel reasonably satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to assume the
defense of any such Claim, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently
directly incurred by Indemnitee in connection with Indemnitee’s defense of such Claim other than reasonable costs of investigation
or as otherwise provided below. Indemnitee shall have the right to employ its own legal counsel in such Claim, but all Expenses
related to such counsel incurred after notice from the Company of its assumption of the defense shall be at Indemnitee’s
own expense; provided, however, that if (i) Indemnitee’s employment of its own legal counsel has been authorized by the
Company, (ii) Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company
in the defense of such Claim, (iii) after a Change in Control, Indemnitee’s employment of its own counsel has been approved
by the Independent Counsel or (iv) the Company shall not in fact have employed counsel to assume the defense of such Claim, then
Indemnitee shall be entitled to retain its own separate counsel (but not more than one law firm plus, if applicable, local counsel
in respect of any such Claim) and all Expenses related to such separate counsel shall be borne by the Company.

 

8.  Procedure
upon Application for Indemnification. In
order to obtain indemnification pursuant to this Agreement, Indemnitee shall submit to the Company a written request therefor,
including in such request such documentation and information as is reasonably available to Indemnitee and is reasonably necessary
to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of the Claim.
Indemnification shall be made insofar as the Company determines Indemnitee is entitled to indemnification in accordance with Section
9 below.

 

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9.  Determination
of Right to Indemnification.

 

(a)  Mandatory
Indemnification; Indemnification as a Witness. 

 

(i)  To
the extent that Indemnitee shall have been successful on the merits or otherwise in defense of any Claim relating to an Indemnifiable
Event or any portion thereof or in defense of any issue or matter therein, including without limitation dismissal without prejudice,
Indemnitee shall be indemnified against all Losses relating to such Claim in accordance with Section 3 to the fullest extent allowable
by law.

 

(ii)  To
the extent that Indemnitee’s involvement in a Claim relating to an Indemnifiable Event is to prepare to serve and serve
as a witness, and not as a party, the Indemnitee shall be indemnified against all Losses incurred in connection therewith to the
fullest extent allowable by law.

 

(b)  Standard
of Conduct. To the extent that the provisions of Section 9(a) are inapplicable to a Claim related to an Indemnifiable Event
that shall have been finally disposed of, any determination of whether Indemnitee has satisfied any applicable standard of conduct
under Delaware law that is a legally required condition to indemnification of Indemnitee hereunder against Losses relating to
such Claim and any determination that Expense Advances must be repaid to the Company (a “Standard of Conduct Determination”)
shall be made as follows:

 

(i)  if
no Change in Control has occurred, (A) by a majority vote of the Disinterested Directors, even if less than a quorum of the Board,
(B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than
a quorum or (C) if there are no such Disinterested Directors, by Independent Counsel in a written opinion addressed to the Board,
a copy of which shall be delivered to Indemnitee; and

 

(ii)  if
a Change in Control shall have occurred, (A) if the Indemnitee so requests in writing, by a majority vote of the Disinterested
Directors, even if less than a quorum of the Board or (B) otherwise, by Independent Counsel in a written opinion addressed to
the Board, a copy of which shall be delivered to Indemnitee.

 

The
Company shall indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for,
or advance to Indemnitee, within ten (10) days of such request, any and all Expenses incurred by Indemnitee in cooperating with
the person or persons making such Standard of Conduct Determination.

 

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(c)  Making
the Standard of Conduct Determination. The Company shall use its reasonable best efforts to cause any Standard of Conduct
Determination required under Section 9(b) to be made as promptly as practicable. If the person or persons designated to make the
Standard of Conduct Determination under Section 9(b) shall not have made a determination within 30 days after the later of (A)
receipt by the Company of a written request from Indemnitee for indemnification pursuant to Section 8 (the date of such receipt
being the “Notification Date”) and (B) the selection of an Independent Counsel, if such determination is to
be made by Independent Counsel, then Indemnitee shall be deemed to have satisfied the applicable standard of conduct; provided
that such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person or persons making
such determination in good faith requires such additional time to obtain or evaluate information relating thereto. Notwithstanding
anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification under this Agreement
shall be required to be made prior to the final disposition of any Claim.

 

(d)  Payment
of Indemnification. If, in regard to any Losses:

 

(i)  Indemnitee
shall be entitled to indemnification pursuant to Section 9(a);

 

(ii)  no
Standard Conduct Determination is legally required as a condition to indemnification of Indemnitee hereunder; or

 

(iii)  Indemnitee
has been determined or deemed pursuant to Section 9(b) or Section 9(c) to have satisfied the Standard of Conduct
Determination, then the Company shall pay to Indemnitee, within five (5) days after the later of (A) the Notification Date or
(B) the earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) is satisfied, an amount equal
to such Losses.

 

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(e)  Selection
of Independent Counsel for Standard of Conduct Determination. If a Standard of Conduct Determination is to be made by Independent
Counsel pursuant to Section 9.1(b)(i), the Independent Counsel shall be selected by the Board of Directors, and the Company shall
give written notice to Indemnitee advising Indemnitee of the identity of the Independent Counsel so selected. If a Standard of
Conduct Determination is to be made by Independent Counsel pursuant to Section 9.1(b)(ii), the Independent Counsel shall be selected
by Indemnitee, and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel
so selected. In either case, Indemnitee or the Company, as applicable, may, within three (3) days after receiving written notice
of selection from the other, deliver to the other a written objection to such selection; provided, however, that such objection
may be asserted only on the ground that the Independent Counsel so selected does not satisfy the criteria set forth in the definition
of “Independent Counsel” in Section 1(i), and the objection shall set forth with particularity the factual basis of
such assertion. Absent a proper and timely objection, the person or firm so selected shall act as Independent Counsel. If such
written objection is properly and timely made and substantiated, (i) the Independent Counsel so selected may not serve as Independent
Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit; and (ii)
the non-objecting party may, at its option, select an alternative Independent Counsel and give written notice to the other party
advising such other party of the identity of the alternative Independent Counsel so selected, in which case the provisions of
the two immediately preceding sentences, the introductory clause of this sentence and numbered clause (i) of this sentence shall
apply to such subsequent selection and notice. If applicable, the provisions of clause (ii) of the immediately preceding sentence
shall apply to successive alternative selections. If no Independent Counsel that is permitted under the foregoing provisions of
this Section 9(e) to make the Standard of Conduct Determination shall have been selected within twenty (20) days after the Company
gives its initial notice pursuant to the first sentence of this Section 9(e) or Indemnitee gives its initial notice pursuant to
the second sentence of this Section 9(e), as the case may be, either the Company or Indemnitee may petition the Court of Chancery
of the State of Delaware (“Delaware Court”) to resolve any objection which shall have been made by the Company
or Indemnitee to the other’s selection of Independent Counsel and/or to appoint as Independent Counsel a person to be selected
by the Court or such other person as the Court shall designate, and the person or firm with respect to whom all objections are
so resolved or the person or firm so appointed will act as Independent Counsel. In all events, the Company shall pay all of the
reasonable fees and expenses of the Independent Counsel incurred in connection with the Independent Counsel’s determination
pursuant to Section 9(b).

 

(f)  Presumptions
and Defenses. 

 

(i)  Indemnitee’s
Entitlement to Indemnification. In making any Standard of Conduct Determination, the person or persons making such determination
shall presume that Indemnitee has satisfied the applicable standard of conduct and is entitled to indemnification, and the Company
shall have the burden of proof to overcome that presumption and establish that Indemnitee is not so entitled. Any Standard of
Conduct Determination that is adverse to Indemnitee may be challenged by the Indemnitee in the Delaware Court. No determination
by the Company (including by its directors or any Independent Counsel) that Indemnitee has not satisfied any applicable standard
of conduct may be used as a defense to any legal proceedings brought by Indemnitee to secure indemnification or reimbursement
or advance payment of Expenses by the Company hereunder or create a presumption that Indemnitee has not met any applicable standard
of conduct.

 

(ii)  Reliance
as a Safe Harbor. For purposes of this Agreement, and without creating any presumption as to a lack of good faith if the following
circumstances do not exist, Indemnitee shall be deemed to have acted in good faith and in a manner he or she reasonably believed
to be in or not opposed to the best interests of the Company if Indemnitee’s actions or omissions to act are taken in good
faith reliance upon the records of the Company, including its financial statements, or upon information, opinions, reports or
statements furnished to Indemnitee by the officers or employees of the Company or any of its subsidiaries in the course of their
duties, or by committees of the Board or by any other Person (including legal counsel, accountants and financial advisors) as
to matters Indemnitee reasonably believes are within such other Person’s professional or expert competence and who has been
selected with reasonable care by or on behalf of the Company. In addition, the knowledge and/or actions, or failures to act, of
any director, officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right
to indemnity hereunder.

 

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(iii)  No
Other Presumptions. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with
or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, will not create a presumption that
Indemnitee did not meet any applicable standard of conduct or have any particular belief, or that indemnification hereunder is
otherwise not permitted.

 

(iv)  Defense
to Indemnification and Burden of Proof. It shall be a defense to any action brought by Indemnitee against the Company to enforce
this Agreement (other than an action brought to enforce a claim for Losses incurred in defending against a Claim related to an
Indemnifiable Event in advance of its final disposition) that it is not permissible under applicable law for the Company to indemnify
Indemnitee for the amount claimed. In connection with any such action or any related Standard of Conduct Determination, the burden
of proving such a defense or that the Indemnitee did not satisfy the applicable standard of conduct shall be on the Company.

 

(v)  Resolution
of Claims. The Company acknowledges that a settlement or other disposition short of final judgment may be successful on the
merits or otherwise for purposes of Section 9.1(a)(i) if it permits a party to avoid expense, delay, distraction, disruption and
uncertainty. In the event that any Claim relating to an Indemnifiable Event to which Indemnitee is a party is resolved in any
manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such action, claim or proceeding
with our without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits
or otherwise for purposes of Section 9.1(a)(i). The Company shall have the burden of proof to overcome this presumption.

 

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10.  Exclusions
from Indemnification. Notwithstanding anything
in this Agreement to the contrary, the Company shall not be obligated to:

 

(a)  indemnify
or advance funds to Indemnitee for Expenses or Losses with respect to proceedings initiated by Indemnitee, including any proceedings
against the Company or its directors, officers, employees or other indemnitees and not by way of defense, except:

 

(i)  proceedings
referenced in Section 5 above (unless a court of competent jurisdiction determines that each of the material assertions made by
Indemnitee in such proceeding was not made in good faith or was frivolous); or

 

(ii)  where
the Company has joined in or the Board has consented to the initiation of such proceedings.

 

(b)  indemnify
Indemnitee if a final decision by a court of competent jurisdiction determines that such indemnification is prohibited by applicable
law.

 

(c)  indemnify
Indemnitee for the disgorgement of profits arising from the purchase or sale by Indemnitee of securities of the Company in violation
of Section 16(b) of the Exchange Act, or any similar successor statute.

 

(d)  indemnify
or advance funds to Indemnitee for Indemnitee’s reimbursement to the Company of any bonus or other incentive-based or equity-based
compensation previously received by Indemnitee or payment of any profits realized by Indemnitee from the sale of securities of
the Company, as required in each case under the Exchange Act (including any such reimbursements under Section 304 of the Sarbanes-Oxley
Act of 2002 in connection with an accounting restatement of the Company or the payment to the Company of profits arising from
the purchase or sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act).

 

11.  Settlement
of Claims. The Company shall not be liable
to Indemnitee under this Agreement for any amounts paid in settlement of any threatened or pending Claim related to an Indemnifiable
Event effected without the Company’s prior written consent, which shall not be unreasonably withheld. The Company shall
not settle any Claim related to an Indemnifiable Event in any manner that would impose any Losses on the Indemnitee without the
Indemnitee’s prior written consent.

 

12.  Duration.
All agreements and obligations of the Company contained herein shall continue during the period that Indemnitee is a director
or officer of the Company (or is serving at the request of the Company as a director, officer, employee, member, trustee or agent
of another Enterprise) and shall continue thereafter (i) so long as Indemnitee may be subject to any possible Claim relating to
an Indemnifiable Event (including any rights of appeal thereto) and (ii) throughout the pendency of any proceeding (including
any rights of appeal thereto) commenced by Indemnitee to enforce or interpret his or her rights under this Agreement, even if,
in either case, he or she may have ceased to serve in such capacity at the time of any such Claim or proceeding.

 

13.  Non-Exclusivity.
The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have under the Constituent Documents,
the General Corporation Law of the State of Delaware, any other contract or otherwise (collectively, “Other Indemnity
Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would have any greater right to indemnification
under any Other Indemnity Provision, Indemnitee will be deemed to have such greater right hereunder and (b) to the extent that
any change is made to any Other Indemnity Provision which permits any greater right to indemnification than that provided under
this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder.

 

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14.  Liability
Insurance. For the duration of Indemnitee’s
service as a director and/or officer of the Company, and thereafter for so long as Indemnitee shall be subject to any pending
Claim relating to an Indemnifiable Event, the Company shall use commercially reasonable efforts (taking into account the scope
and amount of coverage available relative to the cost thereof) to continue to maintain in effect policies of directors’
and officers’ liability insurance providing coverage that is at least substantially comparable in scope and amount to that
provided by the Company’s current policies of directors’ and officers’ liability insurance. In all policies
of directors’ and officers’ liability insurance maintained by the Company, Indemnitee shall be named as an insured
in such a manner as to provide Indemnitee the same rights and benefits as are provided to the most favorably insured of the Company’s
directors, if Indemnitee is a director, or of the Company’s officers, if Indemnitee is an officer (and not a director) by
such policy. Upon request, the Company will provide to Indemnitee copies of all directors’ and officers’ liability
insurance applications, binders, policies, declarations, endorsements and other related materials.

 

15.  No
Duplication of Payments. The Company shall
not be liable under this Agreement to make any payment to Indemnitee in respect of any Losses to the extent Indemnitee has otherwise
received payment under any insurance policy, the Constituent Documents, Other Indemnity Provisions or otherwise of the amounts
otherwise indemnifiable by the Company hereunder.

 

16.  Subrogation.
In the event of payment to Indemnitee under this Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee. Indemnitee shall execute all papers required and shall do everything that may be necessary
to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to
enforce such rights.

 

17.  Amendments.
No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties
hereto. No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the party
against whom enforcement of the waiver is sought, and no such waiver shall operate as a waiver of any other provisions hereof
(whether or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided herein, no failure
to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof.

 

18.  Binding
Effect. This Agreement shall be binding upon
and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or
indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of
the Company), assigns, spouses, heirs and personal and legal representatives. The Company shall require and cause any successor
(whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part of
the business and/or assets of the Company, by written agreement in form and substances satisfactory to Indemnitee, expressly to
assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform
if no such succession had taken place.

 

    	 	11	 

     

    

 

19.  Severability.
The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any portion thereof)
are held by a court of competent jurisdiction to be invalid, illegal, void or otherwise unenforceable, and the remaining provisions
shall remain enforceable to the fullest extent permitted by law. Upon such determination that any term or other provision is invalid,
illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby
be consummated as originally contemplated to the greatest extent possible.

 

20.  Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
if delivered by hand, against receipt, or mailed, by postage prepaid, certified or registered mail:

 

(a)  if
to Indemnitee, to the address set forth on the signature page hereto.

 

(b)  if
to the Company, to: Purple Innovation, Inc.

 

Attn:
Chief Legal Officer

 

123
East 200 North

 

Alpine,
Utah 84004

 

Notice
of change of address shall be effective only when given in accordance with this Section. All notices complying with this Section
shall be deemed to have been received on the date of hand delivery or on the third business day after mailing.

 

21.  Governing
Law and Forum. This Agreement shall be governed
by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed
in such state without giving effect to its principles of conflicts of laws. The Company and Indemnitee hereby irrevocably and
unconditionally: (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought
only in the Delaware Court and not in any other state or federal court in the United States, (b) consent to submit to the exclusive
jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement,
(c) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, Corporation Service
Company, 2711 Centerville Road, Suite 400, Wilmington, DE 19808, New Castle County as its agent in the State of Delaware for acceptance
of legal process in connection with any such action or proceeding against such party with the same legal force and validity as
if served upon such party personally within the State of Delaware and (d) waive, and agree not to plead or make, any claim that
the Delaware Court lacks venue or that any such action or proceeding brought in the Delaware Court has been brought in an improper
or inconvenient forum.

 

22.  Headings.
The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute
part of this Agreement or to affect the construction or interpretation thereof.

 

23.  Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original,
but all of which together shall constitute one and the same Agreement.

 

[signature
page follows]

 

    	 	12	 

     

    

 

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

 

	 	PURPLE INNOVATION, INC.
	 	 	 
	 	By:	                          
	 	

Name: Samuel D. Bernards

Title:   Chief Executive Officer

	 	 	 
	 	INDEMNITEE

	 	 
	 	                 
	 	

Name:__________________

	 	Address:______________________

 

 

13Exhibit
10.10

 

CREDIT
AGREEMENT

 

THIS
CREDIT AGREEMENT (this “Agreement”) is entered into as of February 2, 2018, by and among PURPLE INNOVATION, LLC, a
Delaware limited liability company (“Borrower”), COLISEUM CAPITAL PARTNERS, L.P. (“CCP”), BLACKWELL PARTNERS
LLC-SERIES A (“Blackwell”) and COLISEUM CO-INVEST DEBT FUND, L.P. (and together with CCP and Blackwell, “Lenders”).

 

RECITALS

 

Borrower
has requested that Lenders extend credit to Borrower as described below, and Lenders have agreed to provide such credit to Borrower
on the terms and conditions contained herein.

 

NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lenders and Borrower hereby
agree as follows:

 

Article
I

CREDIT TERMS

 

Section
1.1.         LOAN.

 

(a)           Loan.
Subject to the terms and conditions of this Agreement, Lenders hereby agree to make, ratably according to their respective loan
percentages set forth on Schedule 1.1 hereto (on a several and not joint basis), a loan to Borrower on the Closing Date (as defined
below), in an aggregate principal amount of Twenty-Five Million Dollars ($25,000,000.00) (the “Loan”), the proceeds
of which shall be used to finance Borrower’s working capital requirements and general corporate purposes.

 

(b)         Repayment;
Mandatory Prepayments.

 

		(i)	Following
                                         the first anniversary of the date hereof, Borrower may partially or wholly repay its
                                         outstanding borrowings hereunder subject to concurrent payment of any applicable Prepayment
                                         Premium, calculated on the amount prepaid. For purposes of the foregoing, “Prepayment
                                         Premium” shall mean (a) 6.00% on any date during the second year following the
                                         date hereof, (b) 4.00% on any date during the third year following the date hereof, (c)
                                         2.00% on any date during the fourth year following the date hereof and (d) thereafter,
                                         0%. The remaining outstanding principal amount of the Loan shall be repaid in full on
                                         the fifth anniversary of the date hereof (the “Maturity Date”). Notwithstanding
                                         anything to the contrary, in the event that Borrower desires to prepay the Loan on or
                                         prior to the first anniversary of the date hereof, such prepayment shall be permitted
                                         subject to the concurrent payment of the applicable Make-Whole Amount (as defined below).

 

“Make-Whole
Amount” means, with respect to any prepayment of the Loan pursuant to the terms of this Agreement at any time during the
first year following the date hereof, an amount equal to the sum of (a) the present value (discounted at a rate per annum equal
to the rate on five-year U.S. treasury bills at the time of prepayment as reasonably selected by Lenders plus 50 basis points)
of the interest that would have accrued through the first anniversary of the date hereof as though the full amount of the Loans
had been funded on the Closing Date and had remained outstanding during such one-year period plus (b) a prepayment premium equal
to 6% of the amount prepaid.

 

     

     

    

 

		(ii)	In
                                         addition, subject to customary obligations to repay other debt permitted hereunder, within
                                         five (5) business days following receipt of Net Proceeds (as defined below), Borrower
                                         shall make an offer to Lenders to prepay the outstanding principal amount of the Loan
                                         by such amount. Lenders shall thereafter accept or reject such offer within three (3)
                                         business days, and such payment shall, if accepted, be made within one (1) business day
                                         following such acceptance.

 

For
purposes of the foregoing, “Net Proceeds” means, without duplication: (v) (A) in the case of any sale, lease, transfer
or otherwise disposition or conveyance of any asset of Borrower not permitted by Section 5.4, 100% of the net cash proceeds received
by or on behalf of Borrower from such sale, lease, transfer or other disposition or conveyance and (B) 100% of any cash payments
received by or on behalf of, or paid to or for the account of, Borrower (other than in the ordinary course of business), in connection
with insurance payments, in the case of each of the foregoing clauses (A) and (B), that have not been reinvested by Borrower within
twelve (12) months to purchase assets used or useful in the business of Borrower; provided that the amounts set forth in this
clause (v) shall not constitute “Net Proceeds” until the aggregate amount of such net cash proceeds, for all sales,
leases, transfers or other dispositions or conveyances and all insurance payments (taken as a whole) have exceed $500,000.00,
(w) 100% of the net cash proceeds received by or on behalf of Borrower in connection with any incurrence of indebtedness
that is not permitted to be incurred pursuant to the terms of this Agreement, (x) 100% of any cash payments received by or
on behalf of, or paid to or for the account of, Borrower (other than in the ordinary course of business), in connection with condemnation
events, judgments, litigation settlements and indemnity payments, (y) 100% of the net cash proceeds received by or on behalf
of Borrower as a result of Borrower’s issuance or sale of its stock and (z) 100% of any indemnification payments made to
Borrower pursuant to the terms of the Merger Agreement.

 

(c)         Change
of Control Premium. In the event that all, or any portion, of the Loans is repaid (whether voluntarily, mandatorily, as a
result of acceleration, or otherwise) (i) upon the occurrence of a Change of Control during the first year after the date hereof,
Borrower shall pay a fee to Lenders, ratably in accordance with their respective commitment percentages set forth on Schedule
1.1 hereto, equal to the amount of interest that would have accrued through the first anniversary of the date hereof as though
the full amount of the Loans had been funded on the Closing Date and had remained outstanding during such one-year period or (ii)
upon the occurrence of a Change of Control at any time after the first anniversary of the Closing Date, such repayment (whether
voluntary, mandatory, as a result of acceleration, or otherwise) shall be subject to the applicable Prepayment Premium set forth
in 1.1(b)(i) above.

 

    	 	- 2 -	 

     

    

 

Section
1.2.         INTEREST.

 

(a)         Interest.
The outstanding principal balance of the Loans shall bear interest at the rate of interest of 12.0% per annum (computed on the
basis of a 360-day year, actual days elapsed). At the election of Borrower prior to the Maturity Date (it being understood
that, if Borrower does not pay such interest in cash on the applicable Interest Payment Date (as defined below), Borrower shall
be deemed to have made such election for such Interest Payment Date), interest in excess of 5.0% per annum may, in lieu of being
paid in cash, be capitalized and added to the principal amount of the Loan (ratably owing to Lenders based on their respective
loan percentages as set forth on Schedule 1.1 hereto). Interest shall accrue and be payable on the last business day of each March,
June, September and December, commencing on June 29, 2018, (each, an “Interest Payment Date”) and on the Maturity
Date.

 

(b)         Default
Interest. From and after the Maturity Date, or such earlier date as all principal owing hereunder becomes due and payable
by acceleration or otherwise, or upon the occurrence and during the continuance of an Event of Default, then, the outstanding
principal amount of the Loan shall bear interest at an increased rate per annum (computed on the basis of a 360-day year, actual
days elapsed) equal to four percent (4.0%) above the rate of interest from time to time otherwise applicable to the Loan, which
increase shall take effect automatically and without further action (of the Lenders or otherwise).

 

Article
II

REPRESENTATIONS AND WARRANTIES

 

Borrower
makes the following representations and warranties to Lenders, which representations and warranties shall survive the execution
of this Agreement and shall continue in full force and effect until all indebtedness and other obligations (other than unasserted,
contingent indemnification obligations) arising under this Agreement and the other Loan Documents are paid in full.

 

Section
2.1.         LEGAL STATUS. Borrower is: (a) a
limited liability company, duly organized and existing and in good standing under the laws of Delaware, (b) is qualified
or licensed to do business (and is in good standing as a foreign corporation, if applicable) in all jurisdictions in which the
failure to so qualify or to be so licensed could have a Material Adverse Effect on Borrower; and (c) not the target of any
trade or economic sanctions promulgated by the United Nations or the governments of the United States, the United Kingdom, the
European Union, or any other jurisdiction in which Borrower is located or operates (collectively, “Sanctions”). As
used herein, “Material Adverse Effect” means (a) a material adverse effect on the operations, business, assets,
properties, financial prospects, liabilities (actual or contingent) or financial condition of Borrower, (b) a material impairment
of the ability of Borrower to perform its obligations under the Loan Documents to which it is a party, (c) a material impairment
of the rights and remedies of Lenders under any Loan Document or (d) an impairment of the legality, validity, binding effect
or enforceability against Borrower of any Loan Document to which it is a party.

 

Section
2.2.         AUTHORIZATION AND VALIDITY. This Agreement
and each guaranty, contract, instrument and other document required hereby or at any time hereafter delivered to Lenders in connection
herewith (collectively, the “Loan Documents”) have been duly authorized, and upon their execution and delivery in
accordance with the provisions hereof will constitute legal, valid and binding agreements and obligations of Borrower or the party
which executes the same, enforceable in accordance with their respective terms, except as enforcement thereof may be limited by
applicable bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or similar laws affecting the enforcement
of creditor’s rights, generally and by general principles of equity.

 

    	 	- 3 -	 

     

    

 

Section
2.3.         NO VIOLATION. The execution, delivery
and performance by Borrower of each of the Loan Documents do not violate any provision of any law or regulation, or contravene
any provision of the organizational and governing documents of Borrower, or result in any breach of or default under any contract,
obligation, indenture or other instrument to which Borrower is a party or by which Borrower may be bound, except as could not
have a Material Adverse Effect on the financial condition or operation of Borrower.

 

Section
2.4.         LITIGATION. There are no pending, or
to the best of Borrower’s knowledge threatened in writing, actions, claims, investigations, suits or proceedings by or before
any governmental authority, arbitrator, court or administrative agency which could have a Material Adverse Effect on the financial
condition or operation of Borrower, except as described on Schedule 2.4 hereto.

 

Section
2.5.         CORRECTNESS OF FINANCIAL STATEMENT. The
annual financial statement of Borrower dated December 31, 2016, and all interim financial statements of Borrower delivered
to Lenders (or set forth in public filings) since said date, true copies of which have been delivered by Borrower to Lenders (or
set forth in public filings) prior to the date hereof, (a) are complete and correct in all material respects and present
fairly the financial condition of Borrower, (b) disclose all liabilities of Borrower that, as of the date thereof, are required
to be reflected or reserved against under generally accepted accounting principles, whether liquidated or unliquidated, fixed
or contingent, and (c) have been prepared in accordance with generally accepted accounting principles consistently applied.
Since the dates of such financial statements there has been no material adverse change in the financial condition of Borrower,
nor has Borrower mortgaged, pledged, granted a security interest in or otherwise encumbered any of its assets or properties except
(i) such liens granted to Wells (as defined below) to secure certain obligations of Borrower existing prior to the Closing Date
pursuant to the Prior Bank Loan (as defined below), which obligations shall have been irrevocably paid in full prior to the Closing
Date in accordance with Section 3.1(d) and (ii) Permitted Liens (as defined below).

 

Section
2.6.         INCOME AND SALES TAX RETURNS. Borrower
has no knowledge of any pending assessments or adjustments (in an amount in excess of $10,000) of its income or sales tax payable
with respect to any year, except for (i) income or sales tax being contested or disputed in accordance with Section 4.7 or
(ii) such pending assessments or adjustments described on Schedule 2.6 hereto with respect to which the potential exposure does
not exceed $8,500,000 in the aggregate.

 

Section
2.7.         NO SUBORDINATION. There is no agreement,
indenture, contract or instrument to which Borrower is a party or by which Borrower may be bound that requires the subordination
in right of payment of any of Borrower’s obligations subject to this Agreement to any other obligation of Borrower.

 

Section
2.8.         PERMITS, FRANCHISES. Borrower possesses,
and will hereafter possess, all permits, consents, approvals, franchises and licenses required and rights to all trademarks, trade
names, patents, and fictitious names, if any, necessary to enable it to conduct the business in which it is now engaged in compliance
with applicable law, except as could not have a Material Adverse Effect on the financial condition or operation of Borrower.

 

    	 	- 4 -	 

     

    

 

Section
2.9.         ERISA. Borrower is in compliance in all
material respects with all applicable provisions of the Employee Retirement Income Security Act of 1974, as amended or recodified
from time to time (“ERISA”); Borrower has not violated any provision of any defined employee pension benefit plan
(as defined in ERISA) maintained or contributed to by Borrower (each, a “Plan”); no Reportable Event as defined in
ERISA has occurred and is continuing with respect to any Plan initiated by Borrower; Borrower has met its minimum funding requirements
under ERISA with respect to each Plan; and each Plan will be able to fulfill its benefit obligations as they come due in accordance
with the Plan documents and under generally accepted accounting principles.

 

Section
2.10.         OTHER OBLIGATIONS. Borrower is not in
default on any obligation for borrowed money in an amount in excess of $100,000, any purchase money obligation in an amount in
excess of $100,000 or any other material lease, commitment, contract, instrument or obligation. As of the Closing Date, the aggregate
amount of accounts payable greater than 60 days past due and owed by Borrower does not exceed $7,000,000.

 

Section
2.11.         ENVIRONMENTAL MATTERS. Except as specifically
disclosed on Schedule 2.11 hereto, Borrower is in compliance in all material respects with all applicable federal or state environmental,
hazardous waste, health and safety statutes, and any rules or regulations adopted pursuant thereto, which govern or affect any
of Borrower’s operations and/or properties, including without limitation, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, the Superfund Amendments and Reauthorization Act of 1986, the Federal Resource Conservation
and Recovery Act of 1976, and the Federal Toxic Substances Control Act, as any of the same may be amended, modified or supplemented
from time to time (collectively, “Environmental Laws”). None of the operations of Borrower is the subject of any federal
or state investigation evaluating whether any remedial action involving a material expenditure is needed to respond to a release
of any toxic or hazardous waste or substance into the environment. Borrower has no material contingent liability in connection
with any release of any toxic or hazardous waste or substance into the environment.

 

Article
III

CONDITIONS

 

Section
3.1.         CONDITIONS. The obligation of Lenders
to extend the credit contemplated by this Agreement shall not become effective until the date on which each of the following conditions
precedent shall have been satisfied or waived in a manner satisfactory to Lenders (the “Closing Date”):

 

(a)         Documentation.
Lenders shall have received, in form and substance satisfactory to Lenders, each of the following, duly executed:

 

		(i)	This
                                         Agreement.

 

		(ii)	Parent
                                         Guaranty in the form of Exhibit A hereto (the “Parent Guaranty”).

 

		(iii)	Limited
                                         Liability Company Certificate: Borrowing.

 

    	 	- 5 -	 

     

    

 

		(iv)	Such
                                         other documents as Lenders may require under any other Section of this Agreement.

 

(b)         Financial
Condition. There shall have been no material adverse change in the financial condition or business of Borrower hereunder,
if any, nor any material decline in the market value of a substantial or material portion of the assets of Borrower, if any.

 

(c)         Payment
of Fees. Lenders shall have received payment in full of any fee required by any of the Loan Documents to be paid concurrently
with the making of such credit extension.

 

(d)         Repayment
of Existing Debt. All of the indebtedness and obligations under that certain Credit Agreement dated as of October 9, 2017
(the “Prior Bank Loan”), between Borrower and Wells Fargo, National Association (“Wells”) shall have been
repaid and all commitments in respect thereof shall have been terminated and the Lenders shall have received reasonably satisfactory
evidence of the discharge (or the irrevocable and unconditional (except for receipt of the stated payoff amount) making of arrangements
for discharge) of all guarantees and related liens prior to the initial funding under this Agreement.

 

(e)         Sponsor
Shares and Warrants. Lenders shall have received (whether by assignment or transfer) not less than 2,500,000 warrants that
entitle the holder to purchase 1,250,000 shares of common stock of Purple Innovation, Inc., a Delaware corporation (“Parent
Guarantor”), which, in each case shall be allocated ratably to Lenders in accordance with their loan percentages on the
Closing Date as set forth on Schedule 1.1 hereto.

 

(f)         Closing
Date Merger. The merger of Borrower and a wholly-owned subsidiary of Parent Guarantor shall have been completed, or shall
concurrently be completed, in accordance with the terms of that certain Merger Agreement dated as of November 2, 2017 and as amended
on January 8, 2018, without any further amendment, waiver or modification that could reasonably be expected to be adverse to the
interests of Lenders.

 

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

 

(h)         Representations
and Warranties. The representations and warranties of Borrower and the Parent Guarantor set forth in this Agreement and the
other Loan Documents shall be true and correct in all material respects.

 

Article
IV

AFFIRMATIVE COVENANTS

 

Borrower
covenants that so long as the Loan (or the commitments in respect thereof) remain outstanding, and until all indebtedness and
other obligations (other than unasserted, contingent indemnification obligations) arising under this Agreement and the other Loan
Documents are paid in full, Borrower shall, unless Lenders otherwise consent in writing:

 

Section
4.1.         PUNCTUAL PAYMENTS. Punctually pay all
principal, interest, fees or other liabilities due under any of the Loan Documents at the times and place and in the manner specified
therein, and immediately upon demand by Lenders, the amount by which the outstanding principal balance of any credit subject hereto
at any time exceeds any limitation on borrowings applicable thereto.

 

    	 	- 6 -	 

     

    

 

Section
4.2.         ACCOUNTING RECORDS. Maintain adequate
books and records in accordance with generally accepted accounting principles consistently applied, and permit any representative
of any Lenders, at any reasonable time during regular business hours, to inspect, audit and examine such books and records, to
make copies of the same, and to inspect the properties of Borrower. Notwithstanding anything to the contrary, such Lender shall
bear the cost and expense of such inspections, audits and examinations; provided that any such examinations, audits and examinations
conducted during an Event of Default shall be at the cost and expense of Borrower.

 

Section
4.3.         FINANCIAL STATEMENTS. Provide to Lenders
all of the following, in form and detail reasonably satisfactory to Lenders:

 

(a)         not
later than 90 days (or, if Borrower is required to include such financial statements in an Annual Report on Form 10-K,
such later date as may be permitted by the Securities Exchange Act or the rules thereunder) after and as of the end of each fiscal
year of Borrower, an audited financial statement of Borrower, prepared by a certified public accountant acceptable to Lenders,
to include balance sheet, income statement and statement of cash flows and sources, and within 30 days after filing,
but in no event later than each August 30, copies of Borrower’s filed federal income tax returns for such year. The
audited annual financial statements shall be accompanied by the unqualified opinion (as to scope of opinion and going concern)
of such accountant addressed to Lenders;

 

(b)         not
later than 45 days (or, if Borrower is required to include such financial statements in a Quarterly Report on Form 10-Q,
such later date as may be permitted by the Securities Exchange Act or the rules thereunder) after and as of the end of each fiscal
quarter, a financial statement of Borrower, prepared by Borrower, to include balance sheet, income statement and statement of
cash flows and sources;

 

(c)         contemporaneously
with each annual and quarterly financial statement of Borrower required hereby, a certificate of the president or chief financial
officer, a general partner or a member of Borrower, as applicable, substantially to the form of Exhibit B attached hereto
and incorporated herein by this reference that (i) said financial statements are complete and correct in all material respects
and fairly present the financial condition of Borrower as of the date thereof, and (ii) there exists no Default or Event
of Default, except as set forth in such certificate; and

 

(d)         from
time to time such other information regarding Borrower and its properties and operations as Lenders may reasonably request.

 

To
the extent any financial statements required by Section 4.3(a) or Section 4.3(b) are included in an Annual Report on
Form 10-K or Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, such financial statements
shall be deemed to have been provided to Lenders hereunder in form satisfactory to Lenders and shall be deemed delivered to Lenders
when such financial statements are filed for public availability on the Securities and Exchange Commission’s Electronic
Data Gathering and Retrieval System.

 

Section
4.4.         COMPLIANCE. (a) Preserve and maintain
all licenses, permits, governmental approvals, rights, privileges and franchises necessary for the conduct of its business, except
as could not have a Material Adverse Effect on the financial condition or operation of Borrower; (b) comply with the provisions
of all documents pursuant to which Borrower is organized and/or which govern Borrower’s continued existence; (c) comply
with the requirements of all laws, rules, regulations and orders of any jurisdiction in which Borrower is located or doing business,
or otherwise is applicable to Borrower, except as could not have a Material Adverse Effect on the financial condition or operation
of Borrower; (d) comply in all material respects with all Environmental Laws and (e) comply with (i) all Sanctions,
(ii) all laws and regulations that relate to money laundering, any predicate crime to money laundering, or any financial
record keeping and reporting requirements related thereto, (iii) the U.S. Foreign Corrupt Practices Act of 1977,
as amended, (iv) the U.K. Bribery Act of 2010, as amended, and (v) any other applicable anti-bribery or anti-corruption
laws and regulations.

 

    	 	- 7 -	 

     

    

 

Section
4.5.         INSURANCE. Maintain and keep in force,
for each business in which Borrower is engaged, insurance of the types and in amounts customarily carried in similar lines of
business, including but not limited to fire, extended coverage, commercial general liability, directors’ and officers’
liability, flood, and, if required, hurricane, windstorm, seismic property damage and workers’ compensation.

 

Section
4.6.         FACILITIES. Keep all properties useful
or necessary to Borrower’s business in good repair and condition (ordinary wear and tear excepted), and from time to time
make necessary repairs, renewals and replacements thereto so that such properties shall be fully and efficiently preserved and
maintained (ordinary wear and tear excepted).

 

Section
4.7.         TAXES AND OTHER LIABILITIES. Pay and
discharge when due any and all indebtedness, obligations, assessments and taxes, both real or personal, including without limitation
federal and state income taxes and state and local property taxes and assessments, in an amount exceeding $10,000 except (a) such
as Borrower may in good faith contest or as to which a bona fide dispute may arise, and (b) for which Borrower maintains
adequate reserves with respect thereto, in accordance with generally accepted accounting principles, for eventual payment thereof
in the event Borrower is obligated to make such payment.

 

Section
4.8.         LITIGATION. Promptly give notice in writing
to Lenders of any litigation pending or threatened against Borrower with a claim reasonably expected to be in excess of $500,000.00.

 

Section
4.9.         NOTICE TO LENDERS. Promptly (but in no
event more than five (5) days after the occurrence of each such event or matter) give written notice to Lenders in reasonable
detail of: (a) the occurrence of any Default or Event of Default; (c) the occurrence and nature of any Reportable Event
or Prohibited Transaction relating to Borrower, each as defined in ERISA, or any funding deficiency with respect to any Plan;
or (d) any termination or cancellation of any insurance policy which Borrower is required to maintain, or any uninsured or
partially uninsured loss through liability or property damage, or through fire, theft or any other cause affecting Borrower’s
property in an amount in excess of $100,000.

 

    	 	- 8 -	 

     

    

 

Article
V

NEGATIVE COVENANTS

 

Borrower
further covenants that so long as the Loan (or the commitments in respect thereof) remain outstanding, and until all indebtedness
and other obligations (other than unasserted, contingent indemnification obligations) arising under this Agreement and the other
Loan Documents are paid in full, Borrower will not without Lenders’ prior written consent:

 

Section
5.1.         USE OF FUNDS. Use any of the proceeds
of any credit extended hereunder except for the purposes stated in Article I hereof, or directly or indirectly use any such
proceeds for the purpose of (a) providing financing to, or otherwise funding, any targets of Sanctions; or (b) providing
financing for, or otherwise funding, any transaction which would be prohibited by Sanctions or would otherwise cause Lenders or
any affiliate of a Lender to be in breach of any Sanctions.

 

Section
5.2.         CAPITAL EXPENDITURES. Make any additional
investment in fixed assets in any fiscal year in excess of an aggregate of $20,000,000.00.

 

Section
5.3.         OTHER INDEBTEDNESS. Create, incur, assume
or permit to exist any indebtedness or liabilities (each to the extent resulting from borrowings, loans or advances of money),
whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several, except (a) the liabilities
of Borrower to Lenders, (b) any other liabilities of Borrower existing as of, and specifically disclosed on Schedule 5.3
hereto (and together with refinancings or replacements thereof that do not increase the principal amount thereof), (c) Capital
Lease Obligations and purchase money indebtedness in an aggregate amount not to exceed $10,000,000.00 at any time outstanding,
(d) (i) unsecured obligations under commercial credit cards in the ordinary course of business in an amount not exceeding $5,000,000
outstanding at any time and (ii) other unsecured indebtedness in an amount not exceeding $250,000 outstanding at any time, (e)
any indebtedness and obligations (each, an “Asset Based Credit Facility”) to a third party unaffiliated institutional
asset based lender (each, an “Asset Based Lender”) in an amount not to exceed $20,000,000 at any time outstanding;
provided, that Lenders agree to negotiate in good faith and enter into customary intercreditor arrangements with respect to any
such Asset Based Credit Facility entered into pursuant to this Section 5.3(e); provided, further that up to $10,000,000 of the
indebtedness permitted to be incurred under this Section 5.3(e) may be in the form of other secured or unsecured indebtedness
(the principal amount of any such indebtedness incurred pursuant to this proviso shall, for the avoidance of doubt, reduce dollar-for-dollar
the aggregate amount of indebtedness permitted to be incurred under this Section 5.3(e)); and (f) additional indebtedness
(each, an “Additional Debt Facility”) so long as after giving effect to the incurrence thereof Borrower is in compliance
with the Debt Incurrence Conditions. As used herein, (i) “Capital Lease Obligations” of any person or entity
means the obligations of such person or entity to pay rent or other amounts under any lease of (or other arrangement conveying
the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted
for as capital leases on a balance sheet of such person or entity under generally accepted accounting principles, and the amount
of such obligations shall be the capitalized amount thereof determined in accordance with generally accepted accounting principles,
consistently applied (“GAAP”); provided, that in the event that Borrower notifies Lenders that Borrower requests an
amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application
thereof on the operation of such provision, regardless of whether any such notice is given before or after such change in GAAP
or in the application thereof, then Borrower and Majority Lenders shall negotiate in good faith to enter into an amendment of
the relevant affected provisions (without the payment of any amendment or similar fee to any Lenders) to preserve the original
intent thereof in light of such change in GAAP or the application thereof, (ii) “Debt Incurrence Conditions”
means that (x) no Default or Event of Default is continuing or would result from the incurrence of such indebtedness and (y) after
giving effect to the incurrence of such indebtedness, Borrower would be in compliance (determined on a pro forma basis after giving
effect to such incurrence) with a Total Debt Ratio not to exceed 2.00:1.00 (iii) “Total Debt Ratio” means the
ratio of (A) (x) all indebtedness incurred by Borrower (for the avoidance of doubt, including (without limitation) Capital Lease
Obligations), plus (x) solely for the purpose of determining compliance with Section 5.7(c) hereof, all cash dividends and distributions
to be made pursuant to Section 5.7(c) of this agreement, together with all such cash dividends and distributions made prior to
the date of the proposed use of such amount in reliance on Section 5.7(c), to (B) net profit of Borrower before tax plus, to the
extent deducted in determining net profit before tax, interest expense (net of capitalized interest expense), depreciation expense,
amortization expense, non-cash compensation expense and, to the extent approved by Lenders (such approval not to be unreasonably
withheld, conditioned or delayed), transaction expenses incurred in connection with the GPAC Merger (as defined herein), each
as determined for the most recently ended period of four consecutive fiscal quarters of the Borrower (this clause (B) “Adjusted
Cash Flow”), and (iv) “GPAC Merger” means the merger of PRPL Acquisition, LLC with and into borrower, pursuant
to which Global Partner Acquisition Corp. acquires a minority interest in Borrower and the shareholders in Borrower existing on
the date of this Agreement maintain a minority interest in Borrower through rolled equity.

 

    	 	- 9 -	 

     

    

 

Section
5.4.         MERGER, CONSOLIDATION, TRANSFER OF ASSETS.
Merge into or consolidate with any other entity (except for the GPAC Merger); make any substantial change in the nature of Borrower’s
business as conducted as of the date hereof; other than as permitted by Section 5.6 hereof, acquire all or substantially all of
the assets of any other entity; nor sell, lease, transfer or otherwise dispose of all or a substantial or material portion of
Borrower’s assets except in the ordinary course of its business and, so long as no Default or Event of Default is continuing
or would result therefrom, other sales and dispositions in an amount not exceeding $250,000 in any fiscal year of Borrower.

 

Section
5.5.         GUARANTIES. Guarantee or become liable
in any way as surety, endorser (other than as endorser of negotiable instruments for deposit or collection in the ordinary course
of business), accommodation endorser or otherwise for, nor pledge or hypothecate any assets of Borrower as security for, any liabilities
or obligations of any other person or entity, except, if applicable, any of the foregoing in favor of an Asset Based Lender pursuant
an Asset Based Credit Facility or any holder of any Additional Debt Facility otherwise permitted hereunder.

 

Section
5.6.         LOANS, ADVANCES, INVESTMENTS. Make any
loans or advances to or investments in any person or entity, except (a) any of the foregoing existing as of, and specifically
disclosed on Schedule 5.6 hereto (including investments existing on the date hereof in Equapressure LLC, which is an inactive
subsidiary of Borrower), (b) travel and other advances to management personnel and employees in the ordinary course of business;
(c) other readily marketable Investments in debt securities which are reasonably acceptable to Lenders, (d) [reserved];
(e) Permitted Acquisitions and (f) so long as no Default or Event of Default is continuing or would result therefrom, investments
not otherwise permitted hereunder which are made after the date hereof so long as the aggregate amount of all such Investments
does not exceed $250,000 at any one time outstanding. As used herein, “Permitted Acquisition” means any transaction
or series of related transactions by Borrower for (i) the direct or indirect acquisition of all or substantially all of the property
or assets of any U.S. person, or of any assets constituting a line of business, business unit or division of any person located
in the U.S., or, with respect to intellectual property assets related to the business, located in the U.S. or any other jurisdiction,
(ii) the acquisition (including by merger or consolidation) of the equity interests (other than director qualifying shares) of
any person that becomes a subsidiary of Borrower after giving effect to such transaction, or (iii) a merger or consolidation or
any other combination with any person (so long as a Loan Party, to the extent such Loan Party is a party to such merger or consolidation,
is the surviving entity); provided that each of the following conditions shall be met: (A) no Default or Event of Default shall
exist either at the time of the consummation of such acquisition or execution of applicable acquisition documentation, or in each
case would result therefrom, (B) such acquisition is consensual, (C) such acquisition shall not result in a decrease to the Adjusted
Cash Flow of Borrower prior to giving effect thereto, (D) Borrower shall have delivered to Lenders at least five (5) business
days prior to the consummation thereof (1) a due diligence package comprising such material and information that Borrower has
obtained during the course of its own diligence process, and (2) notice of such acquisition setting forth in reasonable detail
the terms and conditions of such acquisition, (e) Borrower shall be in pro forma compliance with the Debt Incurrence Conditions
after giving effect thereto and (F) the target shall be in a similar line of business as Borrower; provided, further, that any
acquired subsidiary shall execute a guaranty in substantially the form of the Parent Guaranty (a “Subsidiary Guarantor”;
any Subsidiary Guarantors together with the Parent Guarantor and Borrower are collectively referred to herein as “Loan Parties”).

 

    	 	- 10 -	 

     

    

 

Section
5.7.         DIVIDENDS, DISTRIBUTIONS. Declare or
pay any dividend or distribution either in cash, stock or any other property on Borrower’s stock now or hereafter outstanding,
nor redeem, retire, repurchase or otherwise acquire any shares of any class of Borrower’s stock now or hereafter outstanding;
provided however, that Borrower may (a) pay any Tax Distributions (as defined in the Limited Liability Company Agreement
of Borrower), (b) pay other cash dividends or distributions to its shareholders, members or partners, as applicable, in any
year to cover such shareholders’, members’ or partners’ federal and state income tax liability for the immediately
preceding year, to the extent not paid pursuant to Section 5.7(a) hereof, arising as a direct result of Borrower’s
reported income for said year, but not to exceed the minimum amount so required, and Borrower shall provide to Lenders, upon request,
any documentation required by Lenders to substantiate the appropriateness of amounts paid or to be paid and (c) pay other cash
dividends and distributions, so long as (x) no Default or Event of Default is continuing or would result from the payment of such
dividends or distributions and (y) after giving effect to the payment of such dividends or distributions, Borrower would be in
compliance (determined on a pro forma basis after giving effect to such payment) with a Total Debt Ratio not to exceed 2.00:1.00.

 

Section
5.8.         PLEDGE OF ASSETS. Mortgage, pledge, grant
or permit to exist a security interest in, or lien upon, all or any portion of Borrower’s assets now owned or hereafter
acquired, except the following (collectively, “Permitted Liens”): (a) any of the foregoing, in or upon assets,
in favor of the holder of any Additional Debt Facility or Asset Based Credit Facility permitted under Section 5.3, (b) security
interests in assets not constituting intellectual property securing indebtedness permitted under Section 5.3(c) herein (provided
that (i) such security shall be created substantially simultaneously with the acquisition of the related property, (ii) such
security interests do not at any time encumber any property other than the property financed and the proceeds thereof, (iii) the
amount of indebtedness secured thereby is not increased, except in connection with a refinancing or replacement thereof that does
not exceed the amount specified in Section 5.3(c) and (iv) the principal amount of indebtedness secured by any such
security interest shall at no time exceed one hundred percent (100%) of the original price for the purchase of such property(including
customary fees, costs and expenses) at the time of purchase), (c) deposits or pledges to secure payment of workers’
compensation, unemployment insurance, old age pensions or other social security obligations, in the ordinary course of business
of Borrower, (d) liens for taxes, fees, assessments and governmental charges not delinquent or to the extent that payment
therefor shall not at the time be required to be made in accordance with , the provisions of Section 4.7, (e) liens
of carriers, warehousemen, mechanics and materialmen, and other like liens arising in the ordinary course of business, for sums
not due or to the extent that payment therefor shall not at the time be required to be made in accordance with the provisions
of Section 4.7, (f) liens upon assets not constituting intellectual property incurred, or deposits or pledges made or
given in connection with, or to secure payment of, indemnity, performance or other similar bonds, (g) liens arising solely
by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar rights and remedies
as to deposit accounts or other funds maintained with a creditor depository institution; provided that (i) such deposit account
is not a dedicated cash collateral account and is not subject to restriction against access by Borrower in excess of those set
forth by regulations promulgated by the Federal Reserve Board, and (ii) such deposit account is not intended by Borrower
to provide collateral to the depository institution, (h) encumbrances in the nature of zoning restrictions, easements and
rights or restrictions of record on the use of real property and landlord’s liens under leases on the premises rented, which
do not materially detract from the value of such property or impair the use thereof in the business of Borrower, (i) leases
or subleases of real property granted in the ordinary course of Borrower’s business (or, if referring to another person
or entity, in the ordinary course of such person or entity’s business), and leases, subleases, non-exclusive licenses or
sublicenses of personal property (other than intellectual property) granted in the ordinary course of Borrower’s business
(or, if referring to another person or entity, in the ordinary course of such person or entity’s business), (j) non-exclusive
licenses of intellectual property rights granted to third parties in the ordinary course of business not interfering, individually
or in the aggregate, in any material respect with the conduct of the business of Borrower, (k) liens with respect to security
deposits given by Borrower to secure real estate leases not exceeding $1,000,000.00 in the aggregate outstanding at any time,
(l) deposits with Rocky Mountain Power in an amount up to $150,000 in connection with the change of the name of Borrower’s
account with Rocky Mountain Power from Edizone to Borrower and (m) exclusive licenses of intellectual property by or to EdiZONE,
LLC existing on the date of this Agreement and described on Schedule 5.8(m) hereto.

 

    	 	- 11 -	 

     

    

 

Section
5.9.         RESTRICTIONS ON ENCUMBRANCE OF INTELLECTUAL
PROPERTY. Without in any way limiting the generality of Section 5.8 hereof, mortgage, pledge, grant or permit to exist a
security interest in, or lien upon, all or any portion of Borrower’s intellectual property, including, without limitation,
patents, trademarks, copyrights, service marks and trade secrets, whether now owned or hereafter acquired, except (a) non-exclusive
licenses of intellectual property rights granted to third parties in the ordinary course of business not interfering, individually
or in the aggregate, in any material respect with the conduct of the business of Borrower and (b) exclusive licenses permitted
by Section 5.8(m) hereof.

 

Section
5.10.         TRANSACTIONS WITH AFFILIATES. Directly
or indirectly: (i) pay any funds to or for the account of any Affiliate, (ii) make any Investment in any Affiliate (whether by
acquisition of equity interests or Debt, by loan, advance, transfer of property, guarantee or other agreement to pay, purchase
or service, directly or indirectly, any Debt or otherwise), (iii) dispose of any property, tangible or intangible, to or from
any Affiliate or (iv) participate in, or effect, any transaction with any Affiliate (transactions of the nature described in clauses
(i) through (iv), “Affiliate Transactions”), except for (a) Affiliate Transactions entered into on an arm’s-length
(or better) basis and provided that all of the material terms thereof could have been obtained from a third party that was not
an Affiliate, (b) the GPAC Merger, (c) transactions described in Section 5.8(m) or (d) the commercial real estate lease existing
on the date hereof (without any modification thereto) between the Borrower and TNT Holdings LLC. As used herein, “Affiliate”
means, with respect to a specified person at any time, another person that directly or indirectly through one or more intermediaries,
Controls or is Controlled by, or is under common Control with, the person specified, and “Control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person, whether
through the ability to exercise voting power, by contract or otherwise.

 

    	 	- 12 -	 

     

    

 

Article
VI

EVENTS OF DEFAULT

 

Section
6.1.         The occurrence of any of the following
shall constitute an “Event of Default” under this Agreement and any condition, act or event which with the giving
of notice or the passage of time or both would constitute an Event of Default shall constitute a “Default” under this
Agreement:

 

(a)         Borrower
shall fail to pay when due any principal, interest, fees or other amounts payable under any of the Loan Documents, and, except
as to principal, such failure shall continue unremedied for three (3) business days.

 

(b)         Any
financial statement or certificate furnished to Lenders in connection with, or any representation or warranty made by Borrower
or any other party under this Agreement or any other Loan Document shall prove to be incorrect, false or misleading in any material
respect when furnished or made.

 

(c)         Any
default in the performance of or compliance with any obligation, agreement or other provision contained herein or in any other
Loan Document (other than those specifically described as an “Event of Default” in this section 6.1), and with
respect to any such default that by its nature can be cured, such default shall continue for a period of twenty (20) days
from its occurrence.

 

(d)         Any
default in the payment or performance of any obligation, or any defined event of default, under the terms of any contract, instrument
or document (other than any of the Loan Documents) pursuant to which Borrower has incurred any debt or other liability to any
person or entity, including Lenders, and such default shall continue beyond any grace period applicable thereto.

 

(e)         Borrower
shall become insolvent, or shall suffer or consent to or apply for the appointment of a receiver, trustee, custodian or liquidator
of itself or any of its property, or shall generally fail to pay its debts as they become due, or shall make a general assignment
for the benefit of creditors; Borrower shall file a voluntary petition in bankruptcy, or seeking reorganization, in order to effect
a plan or other arrangement with creditors or any other relief under the Bankruptcy Reform Act, Title 11 of the United
States Code, as amended or recodified from time to time (“Bankruptcy Code”), or under any state or federal law granting
relief to debtors, whether now or hereafter in effect; or Borrower shall file an answer admitting the jurisdiction of the court
and the material allegations of any involuntary petition; or Borrower shall be adjudicated a bankrupt, or an order for relief
shall be entered against Borrower by any court of competent jurisdiction under the Bankruptcy Code or any other applicable state
or federal law relating to bankruptcy, reorganization or other relief for debtors.

 

(f)         The
filing of a notice of judgment lien in excess of $100,000 against Borrower and same shall not be vacated or stayed within 30 days
after the attachment thereof; or the recording of any abstract or transcript of judgment in excess of $100,000 against Borrower
in any county or recording district in which Borrower has an interest in real property and such judgment and same shall not be
vacated or stayed within 30 days after the attachment thereof; or the service of a notice of levy and/or of a writ of
attachment or execution, or other like process, against the assets of Borrower having a value exceeding $100,000 and same shall
not be vacated or stayed within 30 days after the attachment thereof; or the entry of a judgment against Borrower in
excess of $100,000 and same shall remain unsatisfied or undismissed for 30 days; or any involuntary petition or proceeding
pursuant to the Bankruptcy Code or any other applicable state or federal law relating to bankruptcy, reorganization or other relief
for debtors is filed or commenced against Borrower and same shall not be stayed or dismissed within 60 days.

 

    	 	- 13 -	 

     

    

 

(g)         The
dissolution or liquidation of Borrower; or Borrower, or any of its directors, stockholders or members shall take action seeking
to effect the dissolution or liquidation of Borrower (it being understood that the GPAC Merger does not effect a dissolution or
liquidation of Borrower).

 

(h)         The
occurrence of a Change of Control. “Change of Control” shall mean the withdrawal, resignation or expulsion of any
one or more of the general partners in Borrower or any change in control of Borrower or any entity or combination of entities
that directly or indirectly control Borrower, with “control” defined as ownership of an aggregate of twenty-five percent
(25%) or more of the common stock, members’ equity or other ownership interest (other than a limited partnership interest);
provided, however, that in no event shall a “Change of Control” of Borrower occur in connection with either (i) the
exchange by InnoHold, LLC (or any successor thereto) of Class B Common Stock of Parent Guarantor and Class B Units of Borrower
for Class A Common Stock of Parent Guarantor or (ii) a transfer by InnoHold, LLC of its interests in Borrower to an estate planning
entity controlled by a member of InnoHold, LLC.

 

Section
6.2.         REMEDIES. Upon the occurrence and during
the continuation of any Event of Default: (a) all principal, unpaid interest outstanding and other indebtedness of Borrower
under each of the Loan Documents, any term thereof to the contrary notwithstanding, shall at the Majority Lenders’ option
and without notice become immediately due and payable without presentment, demand, protest or any notices of any kind, including
without limitation, notice of nonperformance, notice of protest, notice of dishonor, notice of intention to accelerate or notice
of acceleration, all of which are hereby expressly waived by Borrower; (b) the obligation, if any, of Lenders to extend any
further credit under any of the Loan Documents shall immediately cease and terminate; and (c) Lenders shall have all rights,
powers and remedies available under each of the Loan Documents, or accorded by law, including without limitation the right to
exercise any or all of the rights of a beneficiary (provided, such exercise shall be by Majority Lenders on behalf of all other
applicable Lenders) pursuant to applicable law. All rights, powers and remedies of Lenders may be exercised at any time by the
Majority Lenders and from time to time during the continuance of an Event of Default, are cumulative and not exclusive, and shall
be in addition to any other rights, powers or remedies provided by law or equity.

 

Article
VII

MISCELLANEOUS

 

Section
7.1.         NO WAIVER. No delay, failure or discontinuance
of any Lender in exercising any right, power or remedy under any of the Loan Documents shall affect or operate as a waiver of
such right, power or remedy; nor shall any single or partial exercise of any such right, power or remedy preclude, waive or otherwise
affect any other or further exercise thereof or the exercise of any other right, power or remedy. Any waiver, permit, consent
or approval of any kind by such Lender of any breach of or default under any of the Loan Documents must be in writing and shall
be effective only to the extent set forth in such writing.

 

    	 	- 14 -	 

     

    

 

Section
7.2.         NOTICES. All notices, requests and demands
which any party is required or may desire to give to any other party under any provision of this Agreement must be in writing
delivered to each party at the following address:

 

	BORROWER:	PURPLE
    INNOVATION, LLC

 

123
East 200 North 

Alpine,
Utah 84004 

Attn:
Manager

 

	LENDERS:	COLISEUM
    CAPITAL PARTNERS, L.P.

 

105
Royaton Avenue 

Royaton,
CT 06853 

Attn:
Adam Gray 

Email:
agray@coliseumpartners.com

 

BLACKWELL
PARTNERS LLC – SERIES A

 

c/o
Coliseum Capital Management, LLC 

105
Royaton Avenue 

Royaton,
CT 06853 

Attn:
Adam Gray 

Email:
agray@coliseumpartners.com

 

COLISEUM
CO-INVEST DEBT FUND, L.P.

 

c/o
Coliseum Capital Management, LLC 

105
Royaton Avenue 

Royaton,
CT 06853 

Attn:
Adam Gray 

Email:
agray@coliseumpartners.com

 

 

or
to such other address as any party may designate by written notice to all other parties. Each such notice, request and demand
shall be deemed given or made as follows: (a) if sent by hand delivery, upon delivery; (b) if sent by mail, upon the
earlier of the date of receipt or three (3) days after deposit in the U.S. mail, first class and postage prepaid; and
(c) if sent by telecopy or e-mail, upon receipt.

 

Section
7.3.         COSTS, EXPENSES AND ATTORNEYS’
FEES. Borrower shall pay to Lenders immediately upon demand (a) the full amount of all reasonable out-of-pocket payments,
advances, charges, costs and expenses, including, to the extent permitted by applicable law, reasonable attorneys’ fees,
expended or incurred by Lenders in connection with the negotiation and preparation of (i) this Agreement and the other Loan Documents
(in an aggregate principal amount under this clause (a)(i) not to exceed $350,000), (ii) Lenders’ continued administration
hereof and thereof, and (iii) the preparation of any amendments and waivers hereto and thereto, (b) the full amount of all
out-of-pocket payments, advances, charges, costs and expenses, including, to the extent permitted by applicable law, attorneys’
fees, expended or incurred by Lenders in connection with the enforcement of Lenders’ rights and/or the collection of any
amounts which become due to Lenders (or any of them) under any of the Loan Documents, whether or not suit is brought, and (c) the
full amount of all out-of-pocket payments, advances, charges, costs and expenses, including, to the extent permitted by applicable
law, attorneys’ fees), expended or incurred by Lenders (or any of them) in connection with the prosecution or defense of
any action in any way related to any of the Loan Documents, including without limitation, any action for declaratory relief, whether
incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred
in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion
brought by any Lender or any other person) relating to Borrower or any other person or entity and related to any of the Loan Documents.
Notwithstanding anything in this Agreement to the contrary, reasonable attorneys’ fees shall not exceed the amount permitted
by law.

 

    	 	- 15 -	 

     

    

 

Section
7.4.         SUCCESSORS, ASSIGNMENT. This Agreement
shall be binding upon and inure to the benefit of the heirs, executors, administrators, legal representatives, successors and
assigns of the parties; provided however, that Borrower may not assign or transfer its interests or rights hereunder without Lenders’
prior written consent. Each Lender reserves the right to sell, assign, transfer, negotiate or grant participations in all or any
part of, or any interest in, such Lender’s rights and benefits under each of the Loan Documents with the prior written consent
of the Borrower (which consent shall not be unreasonably withheld, conditioned or delayed and shall not be required if (a) an
Event of Default is continuing or (b) such assignment or participation is to an affiliate of a Lender). In connection therewith,
the applicable Lender may disclose all documents and information which such Lender now has or may hereafter acquire relating to
any credit subject hereto, Borrower or its business, any guarantor hereunder or the business of such guarantor, provided that
prior to disclosing such documents and information, the Lender shall first obtain the agreement of such prospective assignee,
participant or other transferee to comply with the provisions of Section 7.12. Upon any such assignment, the applicable Lender
shall deliver an updated Schedule 1.1 to Borrower reflecting such assignment.

 

Section
7.5.         ENTIRE AGREEMENT; AMENDMENT. To the full
extent permitted by law, this Agreement and the other Loan Documents constitute the entire agreement between Borrower and Lenders
with respect to each credit subject hereto and supersede all prior negotiations, communications, discussions and correspondence
concerning the subject matter hereof. This Agreement may be amended or modified only in writing signed by each party hereto, except
that Borrower and Lenders holding not less than a majority in interest of the Loan (the “Majority Lenders”) may agree
to amendments or waivers that do not (a) extend the date of any payment or prepayment required hereunder or (b) decrease the principal
amount of the Loan, the interest rate hereunder or the amount of any prepayment or repayment premium.

 

Section
7.6.         NO THIRD PARTY BENEFICIARIES. This Agreement
is made and entered into for the sole protection and benefit of the parties hereto and their respective permitted successors and
assigns, and no other person or entity shall be a third party beneficiary of, or have any direct or indirect cause of action or
claim in connection with, this Agreement or any other of the Loan Documents to which it is not a party.

 

Section
7.7.         TIME. Time is of the essence of each
and every provision of this Agreement and each other of the Loan Documents.

 

    	 	- 16 -	 

     

    

 

Section
7.8.         SEVERABILITY OF PROVISIONS. If any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent
of such prohibition or invalidity without invalidating the remainder of such provision or any remaining provisions of this Agreement.

 

Section
7.9.         COUNTERPARTS. This Agreement may be executed
in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all of which when
taken together shall constitute one and the same Agreement.

 

Section
7.10.         GOVERNING LAW. THIS AGREEMENT SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES
OF CONFLICTS OF LAW. BORROWER AGREES TO THE EXCLUSIVE JURISDICTION OF COURTS LOCATED IN THE STATE OF NEW YORK, UNITED STATES OF
AMERICA, OVER ANY DISPUTES ARISING UNDER OR RELATING TO THIS AGREEMENT.

 

Section
7.11.         BUSINESS PURPOSE. Borrower represents
and warrants that each credit subject hereto is made for (a) a business, commercial, investment, agricultural or other similar
purpose, (b) the purpose of acquiring or carrying on a business, professional or commercial activity, or (c) the purpose
of acquiring any real or personal property as an investment and not primarily for a personal, family or household use.

 

Section
7.12.         CONFIDENTIALITY OF INFORMATION. Each
Lender shall use reasonable efforts to assure that information about Borrower or the Parent Guarantor and their respective operations,
affairs and financial condition, not generally disclosed to the public or to trade and other creditors, that is furnished to such
Lender pursuant to the provisions hereof is used only for the purposes of this Agreement and the other Loan Documents and any
other relationship between such Lender and Borrower or the Parent Guarantor and shall not be divulged to any person or entity
other than such Lender, its affiliates and their respective officers, directors, employees and agents, except: (a) to their
attorneys and accountants; (b) in connection with the enforcement of the rights of such Lender hereunder and under the Loan
Documents or otherwise in connection with applicable litigation; (c) in connection with assignments and participations and
the solicitation of prospective assignees and participants referred to in Section 7.4 hereof; (d) if such information
is generally available to the public other than as a result of disclosure by such Lender; (e) to any direct or indirect contractual
counterparty in any hedging arrangement or such contractual counterparty’s professional advisor; and (f) as may otherwise
be required or requested by any regulatory authority having jurisdiction over such Lender or by any applicable law, rule, regulation
or judicial process, the opinion of such Lender’s counsel concerning the making of such disclosure to be binding on the
parties hereto. No Lender shall incur any liability to Borrower by reason of any disclosure permitted by this Section.

 

[Continues
With Signatures On Following Page]

    	 	- 17 -	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this Agreement to be executed as of the
day and year first written above.

 

	 	PURPLE
    INNOVATION, LLC
	 	 	 
	 	By:	/s/
    Samuel D. Bernards
	 	 	Samuel
    D. Bernards
	 	 	Chief
    Executive Officer
	 	 	 
	 	COLISEUM
    CAPITAL PARTNERS, L.P.
	 	By:	Coliseum
    Capital, LLC, its General Partner

   

	 	By: 	/s/
    Adam Gray
	 	 	Name: Adam
    Gray
	 	 	Title:  Manager
	 	 	 
	 	BLACKWELL
    PARTNERS LLC – Series A
	 	By:	Coliseum
    Capital Management, LLC, its Attorney-in-Fact

  

	 	By:	/s/
    Adam Gray
	 	 	Name: Adam
    Gray
	 	 	Title:   Manager
	 	 	 
	 	COLISEUM
    CO-INVEST DEBT FUND, L.P.
	 	By:	Coliseum
    Capital, LLC, its General Partner

  

	 	By:	/s/
    Adam Gray
	 	 	Name:  Adam
    Gray
	 	 	Title:  Manager

 

    	 	- 18 -	 

     

    

 

Exhibit
A

 

[Form
of]

 

PARENT
GUARANTY

 

For
value received, PURPLE INNOVATION, INC. (“Guarantor”), a corporation duly organized under the laws of the State of Delaware,
hereby unconditionally guarantees the prompt and complete payment in cash when due, whether by acceleration or otherwise, of all
obligations and liabilities (the “Guaranteed Obligations”), whether now in existence or hereafter arising, of PURPLE
INNOVATION, LLC, a limited liability company organized under the laws of the State of Delaware (“Borrower”) to Lenders
(as defined below) under and arising out of or under that certain Credit Agreement, among Borrower, COLISEUM CAPITAL PARTNERS,
L.P. (“CCP”), BLACKWELL PARTNERS LLC – SERIES A (“Blackwell”) and COLISEUM CO-INVEST DEBT FUND,
L.P. (and together with CCP and Blackwell, and their respective successors and assigns, “Lenders”) dated as of the
date hereof according to the terms thereof (as in effect on the date hereof, and as otherwise amended, restated, supplemented
or otherwise modified, the “Credit Agreement”). Capitalized terms used in this Guaranty but not defined in this Guaranty
shall have the meanings ascribed to such terms in the Credit Agreement. This Guaranty is one of payment and not of collection.

 

Guarantor
hereby waives notice of acceptance of this Guaranty and notice of any obligation or liability to which it may apply, and waives
presentment, demand for payment, protest, notice of dishonor or non-payment of any such obligation or liability, suit or the taking
of other action by any Lender against, and any other notice to, Borrower, Guarantor or others.

 

Lenders
may at any time and from time to time without notice to or consent of Guarantor and without impairing or releasing the obligations
of Guarantor hereunder: (1) agree with Borrower to make any change in the terms of any obligation or liability of Borrower to
Lenders, (2) take or fail to take any action of any kind in respect of any security for any obligation or liability of Borrower
to Lenders, (3) exercise or refrain from exercising any rights against Borrower or others, or (4) compromise or subordinate any
obligation or liability of Borrower to Lenders including any security therefor. Any other suretyship defenses (other than irrevocable
payment in full) are hereby waived by Guarantor.

 

This
Guaranty shall continue in full force and effect until the Guaranteed Obligations are satisfied, defeased, discharged or otherwise
terminated, and automatically, upon such satisfaction, defeasement, discharge or termination, without any action by any person,
the obligations and liabilities of Guarantor under this Guaranty shall automatically terminate. It is understood and agreed, however,
that notwithstanding any such termination this Guaranty shall continue in full force and effect with respect to the obligations
and liabilities set forth above which shall have been incurred prior to such termination.

 

    	 	- 1 -	 

     

    

 

Guarantor
may not assign its rights nor delegate its obligations under this Guaranty, in whole or in part, without prior written consent
of Lenders, and any purported assignment or delegation absent such consent is void, except for an assignment and delegation of
all of Guarantor’s rights and obligations hereunder in whatever form Guarantor determines may be appropriate to a partnership,
corporation, trust or other organization in whatever form that succeeds to all or substantially all of Guarantor’s assets and
business and that assumes such obligations by contract, operation of law or otherwise. Upon any such delegation and assumption
of obligations, Guarantor shall be relieved of and fully discharged from all obligations hereunder, whether such obligations arose
before or after such delegation and assumption.

 

Guarantor
hereby represents as follows:

 

		(a)	Guarantor
                                         is duly organized, validly existing, and in good standing under the laws of the State
                                         of Delaware and has full power and authority to execute and deliver this Guaranty.

 

		(b)	The
                                         execution and delivery of this Guaranty have been and remain duly authorized by all necessary
                                         action and do not contravene any provision of Guarantor’s certificate of incorporation
                                         or by-laws, as amended to date, or any law, regulation, decree, order, judgment, resolution
                                         or any contractual restriction binding on Guarantor or its assets that could affect,
                                         in a materially adverse manner, the ability of Guarantor to perform any of its obligations
                                         hereunder.

 

		(c)	All
                                         consents, licenses, clearances, authorizations, and approvals of, and registration and
                                         declarations with, any governmental or regulatory authority necessary for the due execution
                                         and delivery of this Guaranty have been obtained and remain in full force and effect
                                         and all conditions thereof have been duly complied with, and no other action by, and
                                         no notice to or filing with, any governmental or regulatory authority is required in
                                         connection with the execution or delivery of this Guaranty.

 

		(d)	This
                                         Guaranty constitutes the legal, valid, and binding obligation of Guarantor, enforceable
                                         against Guarantor in accordance with all of its terms and conditions (subject to the
                                         effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar
                                         law affecting creditors’ rights generally). The enforceability of Guarantor’s
                                         obligations is also subject to the effect of general principles of equity (regardless
                                         of whether such enforceability is considered in a proceeding in equity or at law).

 

THIS
GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT
TO PRINCIPLES OF CONFLICTS OF LAW. GUARANTOR AGREES TO THE EXCLUSIVE JURISDICTION OF COURTS LOCATED IN THE STATE OF NEW YORK,
UNITED STATES OF AMERICA, OVER ANY DISPUTES ARISING UNDER OR RELATING TO THIS GUARANTY.

 

    	 	- 2 -	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this Agreement to be executed as of the
day and year first written above.

 

	PURPLE INNOVATION INC.	 
	 	 	 
	By:	     	 
	 	Name:	 
	 	Title:	 

 

    	 	- 3 -	 

     

    

 

EXHIBIT B

FORM OF COMPLIANCE CERTIFICATE

 

I
am an officer of PURPLE INNOVATION, LLC (“Borrower”). Under the terms of that certain Credit Agreement dated as of
February 2, 2018, by and among Borrower and COLISEUM CAPITAL PARTNERS, L.P., BLACKWELL PARTNERS LLC-SERIES A and COLISEUM CO-INVEST
DEBT FUND, L.P. (the “Agreement”), I hereby certify that:

 

1.         The
attached financial statements of Borrower dated as of ______________ (the “Statement Date”) are true and correct
in all material respects and have been accurately prepared in accordance with generally accepted accounting principles and used
consistently with prior practices.

 

2.         Unless
expressly stated otherwise in a written statement attached to this Certificate, all representations and warranties contained in
the Agreement remain true and correct in all material respects, and as of the date hereof there exists no default or defined event
of default under the Agreement or any promissory note or other contract, instrument or document executed in connection therewith,
nor any condition, act or event which with the giving of notice or the passage of time or both would constitute such a default
or defined event of default.

 

	PURPLE INNOVATION, LLC	 	 	 
	 	 	 	 	 
	By: 	                   	 	Date:	                   
	Title:
	 	 	 	 

 

 -
1 -

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