Document:

Exhibit 4.2

 

EXECUTION VERSION

 

AMC ENTERTAINMENT INC.

 

5.75% Senior Subordinated Notes due 2025

 

REGISTRATION RIGHTS AGREEMENT

 

June 5, 2015

 

Citigroup Global Markets Inc.

388 Greenwich Street
 New York, New York 10013

 

As Representative of the Initial Purchasers

 

Ladies and Gentlemen:

 

AMC Entertainment Inc., a corporation organized under the laws of Delaware (the “Company”), proposes to issue and sell to certain purchasers (the “Initial Purchasers”), for whom you (the “Representative”) are acting as representative, its 5.75% Senior Subordinated Notes due 2025, together with any related Guarantees (such Guarantees to be provided on the Issue Date) (the “Securities”), upon the terms set forth in the purchase agreement, among the Company, the Guarantors party thereto and the Representative, dated June 2, 2015 (the “Purchase Agreement”), relating to the initial placement of the Securities (the “Initial Placement”).  The Securities and the New Securities (as defined herein) will be guaranteed on a senior subordinated unsecured basis by the Guarantors (as defined herein).  To induce the Initial Purchasers to enter into the Purchase Agreement and to satisfy a condition of your obligations thereunder, the Company and the Guarantors party hereto agree with you for your benefit and the benefit of the holders from time to time of the Securities (including the Initial Purchasers) and the Market Maker (as defined herein), as follows:

 

1.                                      Definitions.  Capitalized terms used herein without definition shall have their respective meanings set forth in the Purchase Agreement.  As used in this Agreement, the following capitalized defined terms shall have the following meanings:

 

“Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Affiliate” of any specified Person shall mean any other Person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such specified Person.  For purposes of this definition, control of a Person shall mean the power, direct or indirect, to direct or cause the direction of the management and policies of such Person whether by contract or otherwise; and the terms “controlling” and “controlled” shall have meanings correlative to the foregoing.

 

“Broker-Dealer” shall mean any broker or dealer registered as such under the Exchange Act.

 

 

“Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close in New York City.

 

“Commission” shall mean the Securities and Exchange Commission.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Exchange Offer” shall mean the exchange offer by the Company of Securities in exchange for New Securities pursuant to Section 2(b) hereof.

 

“Exchange Offer Registration” shall mean a registration under the 1933 Act effected pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration Period” shall mean the one-year period following the consummation of the Registered Exchange Offer, exclusive of any period during which any stop order shall be in effect suspending the effectiveness of the Exchange Offer Registration Statement.

 

“Exchange Offer Registration Statement” shall mean a registration statement of the Company on an appropriate form under the Act with respect to the Registered Exchange Offer, all amendments and supplements to such registration statement, including post-effective amendments thereto, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein.

 

“Exchanging Dealer” shall mean any Holder (which may include any Initial Purchaser) that is a Broker-Dealer and elects to exchange for New Securities any Securities that it acquired for its own account as a result of market-making activities or other trading activities (but not directly from the Company or any Affiliate of the Company).

 

“Existing Notes” shall mean AMC Entertainment Inc.’s 5.875% Senior Subordinated Notes due 2022 and its 9.75% Senior Subordinated Notes due 2020.

 

“Guarantees” shall mean the guarantees by the Guarantors of the Company’s obligations under the Securities and the New Securities entered into on or after the Issue Date.

 

“Guarantors” shall mean the subsidiaries of the Company that execute a Guarantee under the Indenture on or after the Issue Date.

 

“Holder” shall mean the Initial Purchasers, for so long as they own any Securities or New Securities, and each of the successors, assigns and direct and indirect transferees who become owners of Securities or New Securities under the Indenture; provided that for purposes of Sections 6 and 7 of this Agreement, the term “Holders” shall include, where the context requires, the Market Maker.

 

“Indenture” shall mean the Indenture relating to the Securities, dated as of June 5, 2015, among the Company, the guarantors party thereto from time to time and U.S. Bank, National

 

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Association, as trustee, as the same may be amended from time to time in accordance with the terms thereof.

 

“Initial Placement” shall have the meaning set forth in the preamble hereto.

 

“Initial Purchasers” shall have the meaning set forth in the preamble hereto.

 

“Issue Date” shall mean the date on which the Securities are initially issued.

 

“Losses” shall have the meaning set forth in Section 8(e) hereof.

 

“Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of Securities (or, after the consummation of any Exchange Offer in accordance with Section 2 hereof, of New Securities) registered under a Registration Statement.

 

“Managing Underwriters” shall mean the investment banker or investment bankers and manager or managers that shall administer an underwritten offering.

 

“Market Maker” shall have the meaning set forth in Section 6(a) hereof.

 

“Market Maker’s Information” shall have the meaning set forth in Section 6(d) hereof.

 

“Market Making Registration Statements” shall mean the registration statements referred to in Section 6(a)(i) hereof and all amendments and supplements to any such registration statement, including post-effective amendments, in each case including any Prospectus contained therein, all exhibits thereto and any document incorporated by reference therein.

 

“New Securities” shall mean debt securities of the Company identical in all material respects to the Securities (except that the cash interest and interest rate step-up provisions and the transfer restrictions shall be modified or eliminated, as appropriate) and to be issued under the Indenture.

 

“Person” shall mean an individual, partnership, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

“Prospectus” shall mean the prospectus included in any Registration Statement (including, without limitation, a prospectus that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Securities or the New Securities covered by such Registration Statement, and all amendments and supplements thereto and all material incorporated by reference therein.

 

“Purchase Agreement” shall have the meaning set forth in the preamble hereto.

 

“Registered Exchange Offer” shall mean the proposed offer of the Company to issue and deliver to the Holders of the Securities that are not prohibited by any law or policy of the

 

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Commission from participating in such offer, in exchange for the Securities, a like aggregate principal amount of the New Securities.

 

“Registration Statement” shall mean any Exchange Offer Registration Statement, Shelf Registration Statement or Market Making Registration Statement that covers any of the Securities, New Securities, or Existing Notes, as applicable, pursuant to the provisions of this Agreement, any amendments and supplements to such registration statement, including post-effective amendments (in each case including the Prospectus contained therein), all exhibits thereto and all material incorporated by reference therein.

 

“Securities” shall have the meaning set forth in the preamble hereto.

 

“Shelf Registration” shall mean a registration effected pursuant to Section 3 hereof.

 

“Shelf Registration Period” has the meaning set forth in Section 3(b)(ii) hereof.

 

“Shelf Registration Statement” shall mean a “shelf” registration statement of the Company pursuant to the provisions of Section 3 hereof which covers some or all of the Securities or New Securities, as applicable, on an appropriate form under Rule 415 under the Act, or any similar rule that may be adopted by the Commission, amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein.

 

“Trustee” shall mean the trustee with respect to the Securities under the Indenture.

 

“underwriter” shall mean any underwriter of Securities in connection with an offering thereof under a Shelf Registration Statement.

 

2.                                      Registered Exchange Offer.  (a)  The Company and the Guarantors shall prepare and, not later than 120 days after the Issue Date (or if such 120th day is not a Business Day, the next succeeding Business Day), shall file with the Commission the Exchange Offer Registration Statement with respect to the Registered Exchange Offer.  The Company and the Guarantors shall use their respective commercially reasonable efforts to cause the Exchange Offer Registration Statement to become effective under the Act within 210 days of the Issue Date (or if such 210th day is not a Business Day, the next succeeding Business Day).

 

(b)                                 Upon the effectiveness of the Exchange Offer Registration Statement, the Company and the Guarantors shall promptly commence the Registered Exchange Offer, it being the objective of such Registered Exchange Offer to enable each Holder electing to exchange Securities for New Securities (assuming that such Holder is not an Affiliate of the Company, acquires the New Securities in the ordinary course of such Holder’s business, has no arrangements with any Person to participate in the distribution of the New Securities and is not prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer) to trade such New Securities from and after their receipt without any limitations or restrictions under the Act and without material restrictions under the securities laws of a substantial proportion of the several states of the United States.

 

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(c)                                  In connection with the Registered Exchange Offer, the Company and the Guarantors shall:

 

(i)                                     mail to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents;

 

(ii)                                  keep the Registered Exchange Offer open for not less than 30 days and not more than 45 days after the date notice thereof is mailed to the Holders (or, in each case, longer if required by applicable law);

 

(iii)                               use their respective commercially reasonable efforts to keep the Exchange Offer Registration Statement continuously effective under the Act, supplemented and amended as required, to ensure that it is available for sales of New Securities by Exchanging Dealers during the Exchange Offer Registration Period;

 

(iv)                              utilize the services of a depositary for the Registered Exchange Offer with an address in the Borough of Manhattan in New York City, which may be the Trustee or an Affiliate of the Trustee;

 

(v)                                 permit Holders to withdraw tendered Securities at any time prior to the close of business, New York time, on the last Business Day on which the Registered Exchange Offer is open;

 

(vi)                              prior to effectiveness of the Exchange Offer Registration Statement, provide a supplemental letter to the Commission (A) stating that the Company is conducting the Registered Exchange Offer in reliance on the position of the Commission in Exxon Capital Holdings Corporation (pub. avail. May 13, 1988) and, Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991); and (B) including a representation that the Company has not entered into any arrangement or understanding with any Person to distribute the New Securities to be received in the Registered Exchange Offer and that, to the best of the Company’s information and belief, each Holder participating in the Registered Exchange Offer is acquiring the New Securities in the ordinary course of business and has no arrangement or understanding with any Person to participate in the distribution of the New Securities; and

 

(vii)                           comply in all respects with all applicable laws.

 

(d)                                 As soon as practicable after the close of the Registered Exchange Offer, the Company and the Guarantors shall:

 

(i)                                     accept for exchange all Securities tendered and not validly withdrawn pursuant to the Registered Exchange Offer;

 

(ii)                                  deliver to the Trustee for cancellation in accordance with Section 5(s) all Securities so accepted for exchange; and

 

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(iii)                               cause the Trustee promptly to authenticate and deliver to each Holder of Securities a principal amount of New Securities equal to the principal amount of the Securities of such Holder so accepted for exchange.

 

(e)                                  Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Registered Exchange Offer to participate in a distribution of the New Securities (x) could not under Commission policy as in effect on the date of this Agreement rely on the position of the Commission in Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991) and Exxon Capital Holdings Corporation (pub. avail. May 13, 1988), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply with the registration and prospectus delivery requirements of the Act in connection with any secondary resale transaction and such transaction must be covered by an effective registration statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K under the Act if the resales are of New Securities obtained by such Holder in exchange for Securities acquired by such Holder directly from the Company or one of its Affiliates.  Accordingly, each Holder participating in the Registered Exchange Offer shall be required to represent to the Company that, at the time of the consummation of the Registered Exchange Offer:

 

(i)                                     any New Securities received by such Holder will be acquired in the ordinary course of business;

 

(ii)                                  such Holder will have no arrangement or understanding with any Person to participate in the distribution of the Securities or the New Securities within the meaning of the Act; and

 

(iii)                               such Holder is not an Affiliate of the Company (or if it is, that it will comply with the registration and prospectus delivery requirements of the Act to the extent applicable).

 

(f)                                   If any Initial Purchaser determines that it is not eligible to participate in the Registered Exchange Offer with respect to the exchange of Securities constituting any portion of an unsold allotment, at the request of such Initial Purchaser, the Company shall issue and deliver to such Initial Purchaser or the Person purchasing New Securities registered under a Shelf Registration Statement as contemplated by Section 3 hereof from such Initial Purchaser, in exchange for such Securities, a like principal amount of New Securities.  The Company shall use its best efforts to cause the CUSIP Service Bureau to issue the same CUSIP number for such New Securities as for New Securities issued pursuant to the Registered Exchange Offer.

 

3.                                      Shelf Registration.  (a)  If (i) due to any change in law or applicable interpretations thereof by the Commission’s staff, the Company determines upon advice of its outside counsel that it is not permitted to effect the Registered Exchange Offer as contemplated by Section 2 hereof; (ii) for any other reason the Exchange Offer Registration Statement is not effective within 210 days after the Issue Date; (iii) any Initial Purchaser so requests with respect to Securities that are not eligible to be exchanged for New Securities in the Registered Exchange Offer and that are held by it following consummation of the Registered Exchange Offer; or (iv) any Holder (other than an Initial Purchaser) is not eligible to participate in the Registered

 

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Exchange Offer or does not receive freely tradeable New Securities in exchange for Securities constituting any portion of an unsold allotment (it being understood that the requirement that an Exchanging Dealer deliver a Prospectus in connection with sales of New Securities acquired in the Registered Exchange Offer in exchange for Securities acquired as a result of market-making activities or other trading activities shall not result in such New Securities being not “freely tradeable”), the Company and the Guarantors shall effect a Shelf Registration Statement in accordance with subsection (b) below.

 

(b)                                 (i)                                     The Company and the Guarantors shall as promptly as practicable (but in no event more than 90 days after so required or requested pursuant to this Section 3), file with the Commission and thereafter shall use their commercially reasonable best efforts to cause to be declared effective under the Act a Shelf Registration Statement relating to the offer and sale of the Securities or the New Securities, as applicable, by the Holders thereof from time to time in accordance with the methods of distribution elected by such Holders and set forth in such Shelf Registration Statement; provided, however, that no Holder (other than an Initial Purchaser) shall be entitled to have the Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all of the provisions of this Agreement applicable to such Holder; and provided, further, that with respect to New Securities received by an Initial Purchaser in exchange for Securities constituting any portion of an unsold allotment, the Company and the Guarantors may, if permitted by current interpretations by the Commission’s staff, file a post-effective amendment to the Exchange Offer Registration Statement containing the information required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of their respective obligations under this subsection with respect thereto, and any such Exchange Offer Registration Statement, as so amended, shall be referred to herein as, and governed by the provisions herein applicable to, a Shelf Registration Statement.

 

(ii)                                  The Company and the Guarantors shall use their respective commercially reasonable efforts to keep the Shelf Registration Statement continuously effective, supplemented and amended as required by the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for a period of two years after the Issue Date or such shorter period that will terminate when all the Securities or New Securities, as applicable, covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement (in any such case, such period being called the “Shelf Registration Period”).  The Company and the Guarantors shall be deemed not to have used their respective commercially reasonable efforts to keep the Shelf Registration Statement effective during the requisite period if they voluntarily take any action that would result in Holders of Securities covered thereby not being able to offer and sell such Securities during that period, unless (A) such action is required by applicable law; or (B) such action is taken by the Company and the Guarantors in good faith and for valid business reasons (not including avoidance of the Company’s and the Guarantors’ obligations hereunder), including the acquisition or divestiture of assets (to the extent permitted by the terms of the Indenture), so long as the Company and the Guarantors promptly thereafter comply with the requirements of Section 5(k) hereof, if applicable.

 

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(iii)                               Notwithstanding the foregoing provisions of this Section 3, the Company and the Guarantors may for valid business reasons (other than avoidance of their obligations hereunder), including without limitation, a potential material acquisition, divestiture of assets or other material corporate transaction, notify Holders in writing that the Shelf Registration Statement is no longer effective or the Prospectus included therein is no longer usable for offers and sales of Securities or New Securities; provided that the use of the Shelf Registration Statement or the Prospectus contained therein shall not be suspended for more than 45 days (whether or not consecutive) in the aggregate in any 12-month period.  Each Holder agrees that upon receipt of any notice from the Company pursuant to this Section 3(b)(iii), it will discontinue use of the Prospectus contained in the Shelf Registration Statement until receipt of copies of the supplemented or amended Prospectus relating thereto or until advised in writing by the Company that the use of the Prospectus contained in the Shelf Registration Statement may be resumed.

 

(iv)                              The Company and the Guarantors shall cause the Shelf Registration Statement and the related Prospectus and any amendment or supplement thereto, as of the effective date of the Shelf Registration Statement or such amendment or supplement, (A) to comply in all material respects with the applicable requirements of the Act and the rules and regulations of the Commission; and (B) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

4.                                      Special Interest.  If (a) on or prior to the 120th day following the Issue Date, neither the Exchange Offer Registration Statement nor the Shelf Registration Statement has been filed with the Commission, (b) on or prior to the 210th day following the Issue Date, the Exchange Offer Registration Statement has not been declared effective, or on or prior to the 90th day following the Company’s obligation to file the Shelf Registration Statement, the Shelf Registration Statement has not been filed, (c) on or prior to the 45th day following the date the Exchange Offer Registration Statement has been declared effective, the Registered Exchange Offer has not been consummated, or (d) after either the Exchange Offer Registration Statement or the Shelf Registration Statement has been declared effective, such Registration Statement thereafter ceases to be effective or usable in connection with resales of Securities or New Securities in accordance with and during the periods specified in this Agreement (each such event referred to in clauses (a) through (d), a “Registration Default”), interest (“Special Interest”) will accrue on the principal amount of the Securities and the New Securities (in addition to the stated interest on the Securities and New Securities) from and including the date on which any such Registration Default shall occur to but excluding the date on which all Registration Defaults have been cured.  Special Interest will accrue at a rate of $0.192 per week per $1,000 principal amount of notes.  Notwithstanding the foregoing, no Special Interest shall accrue during or with respect to any suspension period referred to in Section 3(b)(iii) above; provided, however, that if such suspension period exceeds 45 days in the aggregate in any 12-month period, then Special Interest shall accrue from and including the 46th day of such suspension period.

 

All obligations of the Company and the Guarantors set forth in the preceding paragraph that are outstanding with respect to any Security at the time such Security is exchanged for a

 

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New Security shall survive until such time as all such obligations with respect to such Security have been satisfied in full.

 

5.                                      Additional Registration Procedures.  In connection with any Shelf Registration Statement and, to the extent applicable, any Exchange Offer Registration Statement or Market Making Registration Statement, the following provisions shall apply.

 

(a)                                 The Company and the Guarantors shall:

 

(i)                                     furnish to you, not less than five Business Days prior to the filing thereof with the Commission, a copy of any Exchange Offer Registration Statement and any Shelf Registration Statement, and each amendment thereof and each amendment or supplement, if any, to the Prospectus included therein (including all documents incorporated by reference therein after the initial filing) and shall use their best efforts to reflect in each such document, when so filed with the Commission, such comments as you reasonably propose;

 

(ii)                                  include the information set forth in Annex A hereto on the facing page of the Exchange Offer Registration Statement, in Annex B hereto in the forepart of the Exchange Offer Registration Statement in a section setting forth details of the Exchange Offer, in Annex C hereto in the underwriting or plan of distribution section of the Prospectus contained in the Exchange Offer Registration Statement, and in Annex D hereto in the letter of transmittal delivered pursuant to the Registered Exchange Offer;

 

(iii)                               if requested by an Initial Purchaser, include the information required by Item 507 or 508 of Regulation S-K, as applicable, in the Prospectus contained in the Exchange Offer Registration Statement; and

 

(iv)                              in the case of a Shelf Registration Statement, include the names of the Holders that propose to sell Securities pursuant to the Shelf Registration Statement as selling security holders.

 

(b)                                 The Company and the Guarantors shall ensure that:

 

(i)                                     any Registration Statement and any amendment thereto and any Prospectus forming part thereof and any amendment or supplement thereto complies in all material respects with the Act and the rules and regulations thereunder; and

 

(ii)                                  any Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

 

(c)                                  The Company and the Guarantors shall advise you, the Holders of Securities covered by any Shelf Registration Statement and any Exchanging Dealer under any Exchange Offer Registration Statement that has provided in writing to the Company a telephone or facsimile number and address for notices, and, if requested by you or any such Holder or Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to clauses (ii)

 

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through (v) hereof shall be accompanied by an instruction to suspend the use of the Prospectus until the Company shall have remedied the basis for such suspension):

 

(i)                                     when a Registration Statement and any amendment thereto has been filed with the Commission and when the Registration Statement or any post-effective amendment thereto has become effective;

 

(ii)                                  of any request by the Commission for any amendment or supplement to the Registration Statement or the Prospectus or for additional information;

 

(iii)                               of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose, of the issuance by the Commission of a notification of objection to the use of the form on which the Registration Statement has been filed, and of the happening of any event that causes the Company to become an “ineligible issuer,” as defined in Commission Rule 405;

 

(iv)                              of the receipt by the Company or any Guarantor of any notification with respect to the suspension of the qualification of the securities included therein for sale in any jurisdiction or the initiation of any proceeding for such purpose; and

 

(v)                                 of the happening of any event that requires any change in the Registration Statement or the Prospectus so that, as of such date, the statements therein are not misleading and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading.

 

(d)                                 The Company and the Guarantors shall use their respective best efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration Statement or the qualification of the securities therein for sale in any jurisdiction at the earliest possible time.

 

(e)                                  The Company and the Guarantors shall furnish to each Holder of Securities covered by any Shelf Registration Statement, without charge, at least one copy of such Shelf Registration Statement and any post-effective amendment thereto, including all material incorporated therein by reference, and, if the Holder so requests in writing, all exhibits thereto (including exhibits incorporated by reference therein).

 

(f)                                   The Company and the Guarantors shall, during the Shelf Registration Period, deliver to each Holder of Securities covered by any Shelf Registration Statement, without charge, as many copies of the Prospectus (including each preliminary Prospectus) included in such Shelf Registration Statement and any amendment or supplement thereto as such Holder may reasonably request.  The Company and the Guarantors consent to the use of the Prospectus or any amendment or supplement thereto by each of the selling Holders of securities in connection with the offering and sale of the securities covered by the Prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement.

 

(g)                                  The Company and the Guarantors shall furnish to each Exchanging Dealer which so requests, without charge, at least one copy of the Exchange Offer Registration Statement and

 

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any post-effective amendment thereto, including all material incorporated by reference therein, and, if the Exchanging Dealer so requests in writing, all exhibits thereto (including exhibits incorporated by reference therein).

 

(h)                                 The Company and the Guarantors shall promptly deliver to the Initial Purchasers, each Exchanging Dealer and each other Person required to deliver a Prospectus during the Exchange Offer Registration Period, without charge, as many copies of the Prospectus included in such Exchange Offer Registration Statement and any amendment or supplement thereto as any such Person may reasonably request.  The Company and the Guarantors consent to the use of the Prospectus or any amendment or supplement thereto by the Initial Purchasers, any Exchanging Dealer and any such other Person that may be required to deliver a Prospectus following the Registered Exchange Offer in connection with the offering and sale of the New Securities covered by the Prospectus, or any amendment or supplement thereto, included in the Exchange Offer Registration Statement.

 

(i)                                     Prior to the Registered Exchange Offer or any other offering of Securities or New Securities pursuant to any Registration Statement, the Company and the Guarantors shall arrange, if necessary, for the qualification of the Securities or the New Securities for sale under the laws of such jurisdictions as any Holder shall reasonably request and will maintain such qualification in effect so long as required; provided that in no event shall the Company or the Guarantors be obligated to qualify to do business in any jurisdiction where it is not then so qualified or to take any action that would subject it to service of process in suits, other than those arising out of the Initial Placement, the Registered Exchange Offer or any offering pursuant to a Shelf Registration Statement, in any such jurisdiction where it is not then so subject.

 

(j)                                    The Company and the Guarantors shall cooperate with the Holders of Securities to facilitate the timely preparation and delivery of certificates representing New Securities or Securities to be issued or sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as Holders may request.

 

(k)                                 Upon the occurrence of any event contemplated by subsections (c)(ii) through (v) above, the Company and the Guarantors shall promptly prepare a post-effective amendment to the applicable Registration Statement or an amendment or supplement to the related Prospectus or file any other required document so that, as thereafter delivered to initial purchasers of the securities included therein, the Prospectus will not include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  In such circumstances, the period of effectiveness of the Exchange Offer Registration Statement provided for in Section 2 and the Shelf Registration Statement provided for in Section 3(b) shall each be extended by the number of days from and including the date of the giving of a notice of suspension pursuant to Section 5(c) to and including the date when the Initial Purchasers, the Holders of the Securities and any known Exchanging Dealer shall have received such amended or supplemented Prospectus pursuant to this Section.

 

(l)                                     Not later than the effective date of any Registration Statement, the Company and the Guarantors shall provide a CUSIP number for the Securities or the New Securities, as the case may be, registered under such Registration Statement and provide the Trustee with printed

 

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certificates for such Securities or New Securities, in a form eligible for deposit with The Depository Trust Company.

 

(m)                             The Company and the Guarantors shall comply with all applicable rules and regulations of the Commission and shall make generally available to their security holders as soon as practicable after the effective date of the applicable Registration Statement an earnings statement satisfying the provisions of Section 11(a) of the Act.

 

(n)                                 The Company and the Guarantors shall cause the Indenture to be qualified under the Trust Indenture Act in a timely manner.

 

(o)                                 The Company and the Guarantors may require each Holder of securities to be sold pursuant to any Shelf Registration Statement to furnish to the Company and the Guarantors such information regarding the Holder and the distribution of such securities as the Company and the Guarantors may from time to time reasonably require for inclusion in such Registration Statement.  The Company and the Guarantors may exclude from such Shelf Registration Statement the Securities or New Securities of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such request.

 

(p)                                 In the case of any Shelf Registration Statement, the Company and the Guarantors shall enter into such agreements and take all other appropriate actions (including if requested an underwriting agreement in customary form) in order to expedite or facilitate the registration or the disposition of the Securities or New Securities, and in connection therewith, if an underwriting agreement is entered into, cause the same to contain indemnification provisions and procedures no less favorable than those set forth in Section 8 (or such other provisions and procedures acceptable to the Majority Holders and the Managing Underwriters, if any, with respect to all parties to be indemnified pursuant to Section 8).

 

(q)                                 In the case of any Shelf Registration Statement, the Company and the Guarantors shall:

 

(i)                                     make reasonably available for inspection by the Holders of Securities or New Securities to be registered thereunder, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney, accountant or other agent retained by the Holders or any such underwriter all relevant financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries;

 

(ii)                                  use their reasonable best efforts to cause the Company’s and the Guarantors’ officers, directors and employees to supply all relevant information reasonably requested by the Holders or any such underwriter, attorney, accountant or agent in connection with any such Registration Statement as is customary for similar due diligence examinations; provided, however, that any information that is designated in writing by the Company or the Guarantors, in good faith, as confidential at the time of delivery of such information shall be kept confidential by the Holders or any such underwriter, attorney, accountant or agent, unless such disclosure is made in connection with a court proceeding or required by law, or such information becomes available to the

 

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public generally or through a third party without an accompanying obligation of confidentiality;

 

(iii)                               make such representations and warranties to the Holders of Securities or New Securities registered thereunder and the underwriters, if any, in form, substance and scope as are customarily made by issuers to underwriters in primary underwritten offerings and covering matters including, but not limited to, those set forth in the Purchase Agreement;

 

(iv)                              obtain opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the Managing Underwriters, if any) addressed to each selling Holder and the underwriters, if any, covering such matters as are customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such Holders and underwriters;

 

(v)                                 obtain “cold comfort” letters and updates thereof from the current and, as applicable, past independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement), addressed to each selling Holder of Securities or New Securities registered thereunder and the underwriters, if any, in customary form and covering matters of the type customarily covered in “cold comfort” letters in connection with primary underwritten offerings; and

 

(vi)                              deliver such documents and certificates as may be reasonably requested by the Majority Holders and the Managing Underwriters, if any, including those to evidence compliance with Section 5(k) and with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company.

 

The actions set forth in clauses (iii), (iv), (v) and (vi) of this Section 5(q) shall be performed at (A) the effectiveness of such Registration Statement and each post-effective amendment thereto; and (B) each closing under any underwriting or similar agreement as and to the extent required thereunder.

 

(r)                                    In the case of any Exchange Offer Registration Statement, the Company and the Guarantors shall:

 

(i)                                     make reasonably available for inspection by such Initial Purchaser, and any attorney, accountant or other agent retained by such Initial Purchaser, all relevant financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries;

 

(ii)                                  use their reasonable best efforts to cause the Company’s and the Guarantors’ officers, directors and employees to supply all relevant information reasonably requested by such Initial Purchaser or any such attorney, accountant or agent in connection with any such Registration Statement as is customary for similar due

 

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diligence examinations; provided, however, that any information that is designated in writing by the Company or the Guarantors, in good faith, as confidential at the time of delivery of such information shall be kept confidential by such Initial Purchaser or any such attorney, accountant or agent, unless such disclosure is made in connection with a court proceeding or required by law, or such information becomes available to the public generally or through a third party without an accompanying obligation of confidentiality;

 

(iii)                               make such representations and warranties to such Initial Purchaser, in form, substance and scope as are customarily made by issuers to underwriters in primary underwritten offerings and covering matters including, but not limited to, those set forth in the Purchase Agreement;

 

(iv)                              obtain opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to such Initial Purchaser) and its counsel, addressed to such Initial Purchaser, covering such matters as are customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such Initial Purchaser or its counsel;

 

(v)                                 obtain “cold comfort” letters and updates thereof from the current and, as applicable, past independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement), addressed to such Initial Purchaser, in customary form and covering matters of the type customarily covered in “cold comfort” letters in connection with primary underwritten offerings, or if requested by such Initial Purchaser or its counsel in lieu of a “cold comfort” letter, an agreed-upon procedures letter under Statement on Auditing Standards No. 35, covering matters requested by such Initial Purchaser or its counsel; and

 

(vi)                              deliver such documents and certificates as may be reasonably requested by such Initial Purchaser or its counsel, including those to evidence compliance with Section 5(k) and with conditions customarily contained in underwriting agreements.

 

The foregoing actions set forth in clauses (iii), (iv), (v), and (vi) of this Section 5(r) shall be performed at the close of the Registered Exchange Offer and the effective date of any post-effective amendment to the Exchange Offer Registration Statement.

 

(s)                                   If a Registered Exchange Offer is to be consummated, upon delivery of the Securities by Holders to the Company (or to such other Person as directed by the Company) in exchange for the New Securities, the Company shall mark, or cause to be marked, on the Securities so exchanged that such Securities are being canceled in exchange for the New Securities.  In no event shall the Securities be marked as paid or otherwise satisfied.

 

(t)                                    The Company and the Guarantors will use their respective commercially reasonable best efforts (i) if the Securities have been rated prior to the initial sale of such Securities, to confirm such ratings will apply to the Securities or the New Securities, as the case

 

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may be, covered by a Registration Statement; or (ii) if the Securities were not previously rated, to cause the Securities covered by a Registration Statement to be rated with at least one nationally recognized statistical rating agency, if so requested by Majority Holders with respect to the related Registration Statement or by any Managing Underwriters.

 

(u)                                 In the event that any Broker-Dealer shall underwrite any Securities or participate as a member of an underwriting syndicate or selling group or “assist in the distribution” (within the meaning of the Rules of Fair Practice and the By-Laws of the Financial Industry Regulatory Authority) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, assist such Broker-Dealer in complying with the requirements of such Rules and By-Laws, including, without limitation, by:

 

(i)                                     if such Rules or By-Laws shall so require, engaging a “qualified independent underwriter” (as defined in such Rules) to participate in the preparation of the Registration Statement, to exercise usual standards of due diligence with respect thereto and, if any portion of the offering contemplated by such Registration Statement is an underwritten offering or is made through a placement or sales agent, to recommend the yield of such Securities;

 

(ii)                                  indemnifying any such qualified independent underwriter to the extent of the indemnification of underwriters provided in Section 8 hereof; and

 

(iii)                               providing such information to such Broker-Dealer as may be required in order for such Broker-Dealer to comply with the requirements of such Rules.

 

(iv)                              The Company and the Guarantors shall use their respective reasonable best efforts to take all other steps necessary to effect the registration of the Securities or the New Securities, as the case may be, covered by a Registration Statement.

 

6.                                      Market Making.  (a)   At such time and for so long as any of the Securities, New Securities or Existing Notes are outstanding and any of the Initial Purchasers (each in such capacity, the “Market Maker”) or any of their Affiliates is an Affiliate of the Company, the Guarantors or any of their Affiliates and proposes to make a market in the Securities, New Securities or Existing Notes, as applicable, as part of its business in the ordinary course, the following provisions shall apply for the sole benefit of the Market Maker:

 

(i)                                     The Company and the Guarantors shall (A) on the date that the Exchange Offer Registration Statement or, if required hereby, the Shelf Registration Statement is filed with the Commission, file one or more registration statements (the “Market Making Registration Statements”) (which may be the Exchange Offer Registration Statement or the Shelf Registration Statement if permitted by the rules and regulations of the Commission) and use their commercially reasonable best efforts to cause such Market Making Registration Statements to be declared effective by the Commission on or prior to the consummation of the Registered Exchange Offer or the effective date of the Shelf Registration Statement, as applicable; (B) periodically amend such Market Making Registration Statements so that the information contained therein complies with the requirements of Section 10(a) under the Act; (C) amend the Market Making Registration

 

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Statements or amend or supplement the related Prospectuses when necessary to reflect any material changes in the information provided therein; and (D) amend the Market Making Registration Statements when required to do so in order to comply with Section l0(a)(3) of the Act; provided, however, that (1) prior to filing the Market Making Registration Statements, any amendment thereto or any supplement to the related Prospectuses, the Company shall furnish to the Market Maker copies of all such documents proposed to be filed, which documents will be subject to the review of the Market Maker and its counsel and (2) the Company and the Guarantors will not file any Market Making Registration Statement, any amendment thereto or any amendment or supplement to the related Prospectus to which the Market Maker and its counsel shall reasonably object unless the Company is advised by counsel that such Market Making Registration Statement, amendment or supplement is required to be filed under applicable securities laws and the Company will provide the Market Maker and its counsel with copies of such Market Making Registration Statement and each amendment and supplement filed.  The Company, in its sole discretion, may determine to include Prospectuses relating to each of the Securities, the New Securities or one or more series of the Existing Notes in the same or different Market Making Registration Statements so long as each such registration statement complies with this Section 6.  The term “Prospectus” in this Section 6 includes any Prospectus contained in a Market Making Registration Statement relating to any or all of the Securities, the New Securities or the Existing Notes, as applicable.

 

(ii)                                  The Company shall notify the Market Maker and, if requested by the Market Maker, confirm such advice in writing, (A) when any Market Making Registration Statement, any post-effective amendment to any Market Making Registration Statement or any amendment or supplement to the related Prospectus has been filed, and, with respect to any Market Making Registration Statement or any post-effective amendment, when the same has become effective; (B) of any request by the Commission for any post-effective amendment to any Market Making Registration Statement, any supplement or amendment to the related Prospectus or for additional information; (C) the issuance by the Commission of any stop order suspending the effectiveness of any Market Making Registration Statement or the initiation of any proceedings for that purpose, including the receipt by the Company of any notice of objection of the Commission to the use of the Market Making Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act; (D) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Securities, New Securities or Existing Notes, as applicable, for sale in any jurisdiction or the initiation or threatening of any proceedings for that purpose; and (E) of the happening of any event that makes any statement made in any Market Making Registration Statement, the related Prospectus or any amendment or supplement thereto untrue or that requires that making of any changes in any Market Making Registration Statement, such Prospectus or any amendment or supplement thereto, in order to make the statements therein not misleading.

 

(iii)                               If any event contemplated by Section 6(a)(ii)(B) through (E) occurs during the period for which the Company and the Guarantors are required to maintain an effective Market Making Registration Statement, the Company and the Guarantors shall promptly prepare and file with the Commission a post-effective amendment to each

 

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Market Making Registration Statement or an amendment or supplement to the related Prospectus or file any other required document so that the Prospectus will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(iv)                              In the event of the issuance of any stop order suspending the effectiveness of any Market Making Registration Statement, any notice of objection pursuant to Rule 401(g)(2) under the Act or of any order suspending the qualification of the Securities, New Securities or Existing Notes for sale in any jurisdiction, the Company and the Guarantors shall promptly use their reasonable best efforts to obtain the withdrawal of such order or the resolution of such objection, including by filing an amendment to the Market Making Registration Statement on the proper form as necessary.

 

(v)                                 The Company shall furnish to the Market Maker, without charge, (A) at least one conformed copy of any Market Making Registration Statement and any post-effective amendment thereto and (B) as many copies of the related Prospectus and any amendment or supplement thereto as the Market Maker may reasonably request.

 

(vi)                              The Company and the Guarantors shall consent to the use of any Prospectus contained in any Market Making Registration Statement or any amendment or supplement thereto by the Market Maker in connection with its market-making activities.

 

(vii)                           Notwithstanding the foregoing provisions of this Section 6, the Company and the Guarantors may for valid business reasons, including without limitation, a potential material acquisition, divestiture of assets or other material corporate transaction, notify the Market Maker in writing that a Market Making Registration Statement is no longer effective or the Prospectus included therein is no longer usable for offers and sales of Securities, New Securities or Existing Notes; provided that the use of a Market Making Registration Statement or the Prospectus contained therein shall not be suspended for more than 75 days (whether or not consecutive) in the aggregate in any 12-month period.  The Market Maker agrees that upon receipt of any notice from the Company pursuant to this Section 6(a)(vii), it will discontinue use of the Prospectus contained in such Market Making Registration Statement until receipt of copies of the supplemented or amended Prospectus relating thereto or until advised in writing by the Company that the use of the Prospectus contained in such Market Making Registration Statement may be resumed.

 

(b)                                 In connection with any Market Making Registration Statement, the Company and the Guarantors shall (i) make reasonably available for inspection by a representative of, and counsel acting for, the Market Maker all relevant financial and other records, pertinent corporate documents and properties of the Company, the Guarantors and their respective subsidiaries and (ii) use their respective reasonable best efforts to have their respective officers, directors, employees, accountants and counsel supply all relevant information reasonably requested by such representative or counsel or the Market Maker; provided, however, that any information that is designated in writing by the Company or the Guarantors, in good faith, as confidential at the time of delivery of such information shall be kept confidential by the Market Maker or any

 

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representative or counsel, unless such disclosure is made in connection with a court proceeding or required by law, or such information becomes available to the public generally or through a third party without an accompanying obligation of confidentiality;

 

(c)                                  Prior to the initial effective date of any Market Making Registration Statement, the Company and the Guarantors shall arrange, if necessary, for the qualification of the Securities, New Securities or Existing Notes, as applicable, for sale under the laws of such jurisdictions as the Market Maker reasonably requests in writing, will maintain such qualification in effect so long as required and shall cooperate with the Market Maker in connection with any filings required to be made with the Financial Industry Regulatory Authority to enable the offer and sale in such jurisdictions of the Securities, New Securities or Existing Notes, as applicable, covered by such Market Making Registration Statement; provided that in no event shall the Company and the Guarantors be obligated to (i) qualify as a foreign corporation or other entity or as a dealer in securities in any jurisdiction where it would not otherwise be required to so qualify, (ii) file any general consent to subject itself to service of process in any such jurisdictions or (iii) subject itself to taxation in any such jurisdiction if it not so subject.

 

(d)                                 The Company and the Guarantors represent and agree that any Market Making Registration Statement, any post-effective amendments thereto, any amendments or supplements to the related Prospectus and any documents filed by them under the Exchange Act will, when they become effective or are filed with the Commission, as the case may be, conform in all respects to the requirements of the Act and the Exchange Act and the rules and regulations of the Commission thereunder and will not, as of the effective date of such Market Making Registration Statement or post-effective amendments and as of the filing date of amendments or supplements to such Prospectus or filings under the Exchange Act, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that no representation or warranty is made as to information contained in or omitted from any Market Making Registration Statement or the related Prospectus in reliance upon and in conformity with written information furnished to the Company by the Market Maker specifically for inclusion therein, which information the parties hereto agree will be limited to the statements concerning the market-making activities of the Market Maker to be set forth on the cover page and in the “Plan of Distribution” section of the related Prospectus (the “Market Maker’s Information”).

 

(e)                                  At the time of effectiveness of any Market Making Registration Statement and concurrently with each time such Market Making Registration Statement shall be amended by post-effective amendment by including the filing of any annual report incorporated by reference into the Market Making Registration Statement or the related Prospectus shall be amended or such Prospectus shall be supplemented, the Company shall (if requested by the Market Maker) furnish the Market Maker and its counsel with a certificate of its Chairman of the Board of Directors or Chief Executive Officer and its Chief Financial Officer to the effect that:

 

(i)                                     such Market Making Registration Statement has been declared effective;

 

(ii)                                  in the case of an amendment to such Market Making Registration Statement, such amendment has become effective under the Act as of the date and time

 

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specified in such certificate, if applicable; and in the case of an amendment or supplement to the Prospectus, such amendment or supplement to the Prospectus was filed with the Commission pursuant to the subparagraph of Rule 424(b) under the Act specified in such certificate on the date specified therein;

 

(iii)                               to the knowledge of such officers, no stop order suspending the effectiveness of such Market Making Registration Statement has been issued and no proceeding for that purpose is pending or threatened by the Commission, including any notice of objection of the Commission to the use of the Market Making Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act, and no proceeding for that purpose is pending or threatened by the Commission; and

 

(iv)                              such officers have carefully examined such Market Making Registration Statement and the Prospectus (and, in the case of an amendment or supplement, such amendment or supplement) and as of the date of such Market Making Registration Statement, amendment or supplement, as applicable, the Market Making Registration Statement and the Prospectus, as amended or supplemented, if applicable, did not include any untrue statement of a material fact and did not omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

 

(f)                                   At the time of effectiveness of any Market Making Registration Statement and concurrently with each time any Market Making Registration Statement or the related Prospectus shall be amended or such Prospectus shall be supplemented, the Company shall (if requested by the Market Maker) furnish the Market Maker and its counsel with the written opinion of counsel for the Company satisfactory to the Market Maker to the effect that:

 

(i)                                     such Market Making Registration Statement has been declared effective;

 

(ii)                                  in the case of an amendment to such Market Making Registration Statement, such amendment has become effective under the Act as of the date and time specified in such opinion, if applicable; and in the case of an amendment or supplement to the Prospectus, such amendment or supplement to the Prospectus was filed with the Commission pursuant to the subparagraph of Rule 424(b) under the Act specified in such opinion on the date specified therein;

 

(iii)                               to the knowledge of such counsel, no stop order suspending the effectiveness of such Market Making Registration Statement has been issued and no proceeding for that purpose is pending or threatened by the Commission, including notice of any objection of the Commission or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act, and no proceeding for that purpose is pending or threatened by the Commission; and

 

(iv)                              such counsel has reviewed such Market Making Registration Statement and the Prospectus (and, in the case of an amendment or supplement, such amendment or supplement) and participated with officers of the Company and independent public accountants for the Company in the preparation of such Market Making Registration Statement and Prospectus (and, in the case of an amendment or supplement, such

 

19

 

amendment or supplement) and has no reason to believe that (except for the financial statements and other financial and statistical data contained therein as to which such counsel need express no belief) as of the date of such Market Making Registration Statement, amendment or supplement, as applicable, the Market Making Registration Statement and the Prospectus, as amended or supplemented, if applicable, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

 

(g)                                  At the time of effectiveness of any Market Making Registration Statement and concurrently with each time such Market Making Registration Statement or the related Prospectus shall be amended or such Prospectus shall be supplemented to include audited annual financial information, the Company shall (if requested by the Market Maker) furnish the Market Maker and its counsel with letters of (i) KPMG LLP (or other independent public accountants for the Company or the Guarantors of nationally recognized standing) (ii) CohnReznick LLP and (iii) Deloitte & Touche LLP, in form satisfactory to the Market Maker, addressed to the Market Maker and dated the date of delivery of such letter, (i) confirming that they are independent public accountants within the meaning of the Act and are in compliance with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X of the Commission and (ii) in all other respects, substantially in the form of the letters delivered to the Initial Purchasers pursuant to the Purchase Agreement, with, in the case of an amendment or supplement that includes audited financial information, such changes as may be necessary to reflect the amended or supplemented financial information.

 

(h)                                 The Company and the Guarantors, on the one hand, and the Market Maker, on the other hand, hereby agree to indemnify each other, and, if applicable, contribute to the other, in accordance with Section 8 of this Agreement.

 

(i)                                     The Company and the Guarantors will comply with the provisions of this Section 6 at their own expense and will reimburse the Market Maker for its expenses associated with this Section 6 (including reasonable fees of counsel for the Market Maker).

 

(j)                                    The agreements contained in this Section 6 and the representations, warranties and agreements contained in this Agreement shall survive all offers and sales of the Securities and New Securities and shall remain in full force and effect, regardless of any termination or cancellation of this Agreement or any investigation made by or on behalf of any indemnified party.

 

(k)                                 For purposes of this Section 6, (i) any reference to the terms “amend,” “amendment” or “supplement” with respect to any Market Making Registration Statement or the Prospectus contained therein shall be deemed to refer to and include the filing under the Exchange Act of any document deemed to be incorporated therein by reference and (ii) any reference to the terms “Securities,” “New Securities” or “Existing Notes” shall be deemed to refer to and include any securities issued in exchange for or with respect to such Securities, New Securities or Existing Notes.

 

7.                                      Registration Expenses.  The Company and the Guarantors shall bear all expenses incurred in connection with the performance of their respective obligations under Sections 2, 3, 5

 

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and 6 hereof and, in the event of any Shelf Registration Statement, will reimburse the Holders for the reasonable fees and disbursements of one firm or counsel designated by the Majority Holders to act as counsel for the Holders in connection therewith, and, in the case of any Exchange Offer Registration Statement, will reimburse the Initial Purchasers for the reasonable fees and disbursements of counsel acting in connection therewith.

 

8.                                      Indemnification and Contribution.  (a)  Each of the Company and the Guarantors agrees, jointly and severally, to indemnify and hold harmless each Holder of Securities or New Securities, as the case may be, covered by any Registration Statement (including each Initial Purchaser, the Market Maker and, with respect to any Prospectus delivery as contemplated in Section 5(h) hereof, each Exchanging Dealer), the directors, officers, employees and agents of each such Holder and each Person who controls any such Holder within the meaning of either the Act or the Exchange Act against any and all Losses, joint or several, to which they or any of them may become subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or any Market Making Registration Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company and the Guarantors will not be liable in any case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information or the Market Maker Information furnished to the Company and the Guarantors by or on behalf of any such Holder or the Market Maker specifically for inclusion therein.  In addition, the Company and the Guarantors agree to indemnify and hold harmless the Market Maker from and against any and all Losses that arise out of, or are based upon, any breach by the Company and the Guarantors of their respective representations, warranties and agreements contained in Section 6 hereof.  This indemnity agreement will be in addition to any liability which the Company and the Guarantors may otherwise have.

 

(b)                                 Each of the Company and the Guarantors also agrees, jointly and severally, to indemnify or contribute as provided in Section 8(e) to Losses of each underwriter of any Securities or New Securities, as the case may be, registered under a Shelf Registration Statement, their directors, officers, employees or agents and each Person who controls such underwriter on substantially the same basis as that of the indemnification of the Initial Purchasers and the selling Holders provided in this Section 8(a) and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement, as provided in Section 5(p) hereof.

 

(c)                                  With respect to any untrue statement or omission of material fact made in any preliminary Prospectus, the indemnity agreement contained in this Section 8(a) shall not inure to the benefit of any indemnified person from whom the person asserting any such loss, claim, damage or liability purchased the securities concerned, to the extent that any such loss, claim,

 

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damage or liability of such indemnified person occurs under the circumstance where it shall have been determined by a court of competent jurisdiction by final and non-appealable judgment that (w) the Company had previously furnished copies of the preliminary Prospectus to such indemnified person, (x) delivery of the final Prospectus was required by the Act to be made to such person, (y) the untrue statement or omission of a material fact contained in the preliminary Prospectus was corrected in the final Prospectus and (z) there was not sent or given to such person, at or prior to the written confirmation of the sale of such securities to such person, a copy of the final Prospectus.

 

(d)                                 Each Holder of securities covered by a Registration Statement (including each Initial Purchaser and, with respect to any Prospectus delivery as contemplated in Section 5(h) hereof, each Exchanging Dealer) severally agrees to indemnify and hold harmless the Company, each Guarantor, each of their respective directors, each of their respective officers who signs such Registration Statement and each Person who controls the Company and the Guarantors within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company and the Guarantors to each such Holder, but only with reference to written information relating to such Holder furnished to the Company and the Guarantors by or on behalf of such Holder specifically for inclusion in the documents referred to in the foregoing indemnity.  This indemnity agreement will be in addition to any liability which any such Holder may otherwise have.

 

(e)                                  The Market Maker agrees to indemnify and hold harmless the Company, each Guarantor, each of their respective directors, each of their respective officers who signs any Market Making Registration Statement and each Person who controls the Company and the Guarantors within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company and the Guarantors to the Market Maker, but only with respect to any Losses which arise out of or are based upon any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any Market Maker’s Information furnished to the Company and the Guarantors in writing by the Market Maker specifically for inclusion in such Market Making Registration Statement and any Prospectus.  This indemnity agreement will be in addition to any liability which any Market Maker may otherwise have.

 

(f)                                   Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a), (b) or (c) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a), (b) or (c) above.  The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified party.  Notwithstanding the indemnifying

 

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party’s election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party.  Any such separate counsel (w) for any Initial Purchaser, its affiliates, directors and officers and any control Persons of such Initial Purchaser shall be designated in writing by the Representative, (x) for any Market Maker, its affiliates, directors and officers and any control Persons of such Market Maker shall be designated in writing by the respective Market Maker, (y) for any Holder, its directors and officers and any control Persons of such Holder shall be designated in writing by the Majority Holders and (z) in all other cases shall be designated in writing by the Company.  An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding.

 

(g)                                  In the event that the indemnity provided in paragraph (a), (b) or (c) of this Section is unavailable to or insufficient to hold harmless an indemnified party for any reason, then each applicable indemnifying party shall have a joint and several obligation to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending same) (collectively “Losses”) to which such indemnified party may be subject in such proportion as is appropriate to reflect the relative benefits received by such indemnifying party, on the one hand, and such indemnified party, on the other hand, from the Initial Placement and the Registration Statement which resulted in such Losses; provided, however, that in no case shall any Initial Purchaser or any subsequent Holder of any Security or New Security be responsible, in the aggregate, for any amount in excess of the total fees received by such Initial Purchaser or subsequent Holder in connection with the purchase of such Security, or in the case of a New Security, applicable to the Security that was exchangeable into such New Security, nor shall any underwriter be responsible for any amount in excess of the underwriting discount or commission applicable to the securities purchased by such underwriter under the Registration Statement which resulted in such Losses; provided, further, that in no case shall the Market Maker be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by the Market Maker exceeds the amount of any damages that the Market Maker has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  If the allocation provided by the immediately preceding sentence is unavailable for any reason, the indemnifying party and the indemnified party shall contribute in such proportion as is appropriate to reflect not

 

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only such relative benefits but also the relative fault of such indemnifying party, on the one hand, and such indemnified party, on the other hand, in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations.  Benefits received by the Company shall be deemed to be equal to the sum of (x) the total net proceeds from the Initial Placement (before deducting expenses) and (y) the total amount of additional interest which the Company was not required to pay as a result of registering the securities covered by the Registration Statement which resulted in such Losses.  Benefits received by the Initial Purchasers (including the Market Maker) shall be deemed to be equal to the total fees received by the Initial Purchasers pursuant to Section 2 of the Purchase Agreement, and benefits received by any other Holders shall be deemed to be equal to the value of receiving Securities or New Securities, as applicable, registered under the Act.  Benefits received by any underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set forth on the cover page of the Prospectus forming a part of the Registration Statement which resulted in such Losses.  Relative fault shall be determined by reference to, among other things, whether any alleged untrue statement or omission relates to information provided by the indemnifying party, on the one hand, or by the indemnified party, on the other hand, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  The parties agree that it would not be just and equitable if contribution were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or any other method of allocation which does not take account of the equitable considerations referred to above.  Notwithstanding the provisions of this paragraph (e), no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section 8, each Person who controls a Holder within the meaning of either the Act or the Exchange Act and each director, officer, employee and agent of such Holder shall have the same rights to contribution as such Holder, and each Person who controls the Company or any of the Guarantors within the meaning of either the Act or the Exchange Act, each officer of the Company or any of the Guarantors who shall have signed the Registration Statement and each director of the Company or any of the Guarantors shall have the same rights to contribution as the Company and the Guarantors, subject in each case to the applicable terms and conditions of this paragraph (e).

 

(h)                                 The provisions of this Section 8 will remain in full force and effect, regardless of (i) the termination of this Agreement, (ii) any investigation made by or on behalf of the Market Maker, any Holder, the Company or the Guarantors or any of the officers, directors or controlling Persons referred to in this Section hereof, (iii) acceptance of any of the New Securities, and (iv) any sale by a Holder or the Market Maker of securities covered by a Registration Statement (including a Market Making Registration Statement).

 

9.                                      Underwritten Registrations.  (a)  If any of the Securities or New Securities, as the case may be, covered by any Shelf Registration Statement are to be sold in an underwritten offering, the Managing Underwriters shall be selected by the Majority Holders.

 

(b)                                 No Person may participate in any underwritten offering pursuant to any Shelf Registration Statement, unless such Person (i) agrees to sell such Person’s Securities or New Securities, as the case may be, on the basis reasonably provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements; and (ii)

 

24

 

completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

 

10.                               No Inconsistent Agreements.  Neither the Company nor the Guarantors have, as of the date hereof, entered into, nor shall they, on or after the date hereof, enter into, any agreement with respect to their securities that is inconsistent with the rights granted to the Market Maker or the Holders herein or otherwise conflicts with the provisions hereof.

 

11.                               Amendments and Waivers.  The provisions of this Agreement, including the provisions of this sentence, may not be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company and the Guarantors have obtained the written consent of the Majority Holders and, with respect to the provisions of Section 6 and 7, the Market Maker; provided that with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser hereunder, the Company and the Guarantors shall obtain the written consent of each such Initial Purchaser against which such amendment, qualification, supplement, waiver or consent is to be effective.  Notwithstanding the foregoing, a waiver or consent to departure from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose Securities or New Securities, as the case may be, are being sold pursuant to a Registration Statement and that does not directly or indirectly affect the rights of other Holders may be given by Holders representing a majority of the aggregate principal amount of Securities or New Securities, as the case may be, being sold rather than registered under such Registration Statement, voting together as a single class.

 

12.                               Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail, telex, telecopier or air courier guaranteeing overnight delivery:

 

(a)                                 if to a Holder, at the most current address given by such Holder to the Company in accordance with the provisions of this Section, which address initially is, with respect to each Holder, the address of such Holder maintained by the Registrar under the Indenture, with a copy in like manner to Citigroup Global Markets Inc.;

 

(b)                                 if to you, initially at the address set forth in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 12;

 

(c)                                  if to a Market Maker, initially at Citigroup Global Markets Inc., 388 Greenwich Street, New York, New York 10013 (fax no.: (212) 816-7912), Attention:  General Counsel, as applicable, and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 12; and

 

(d)                                 if to the Company or any of the Guarantors, initially at the Company’s address set forth in the Purchase Agreement, and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 12.

 

25

 

All such notices and communications shall be deemed to have been duly given when received.

 

The Initial Purchasers or the Company by notice to the other parties may designate additional or different addresses for subsequent notices or communications.

 

13.                               Successors.  This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including, without the need for an express assignment or any consent by the Company or any of the Guarantors thereto, subsequent Holders of Securities and the New Securities.  The Company and the Guarantors hereby agree to extend the benefits of this Agreement to any Holder of Securities and the New Securities, and any such Holder may specifically enforce the provisions of this Agreement as if an original party hereto.

 

14.                               Counterparts.  This Agreement may be in signed counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement.

 

15.                               Headings.  The headings used herein are for convenience only and shall not affect the construction hereof.

 

16.                               Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed in the State of New York.

 

17.                               Severability.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law.

 

18.                               Securities Held by the Company, etc.  Whenever the consent or approval of Holders of a specified percentage of principal amount of Securities or New Securities is required hereunder, Securities or New Securities, as applicable, held by the Company, any of the Guarantors or its Affiliates (other than subsequent Holders of Securities or New Securities if such subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such Securities or New Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

26

 

If the foregoing is in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall represent a binding agreement between the Company and the Initial Purchasers.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
AMC   ENTERTAINMENT INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Craig R. Ramsey
    
	
 
    	
 
    	
Name:
    	
Craig   R. Ramsey
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
Guarantors   Listed on Schedule I to This Agreement, as Guarantors
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Craig R. Ramsey
    
	
 
    	
 
    	
Name:
    	
Craig   R. Ramsey
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    

 

SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

 

 

The foregoing Agreement is hereby
 confirmed and accepted as of the date
 first above written.

 

	
CITIGROUP   GLOBAL MARKETS INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Ross MacIntyre
    	
 
    
	
Name:
    	
Ross   MacIntyre
    	
 
    
	
Title:
    	
Managing   Director
    	
 
    

 

SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

 

 

SCHEDULE I

 

AMC CARD PROCESSING SERVICES, INC.

AMC CONCESSIONAIRE SERVICES OF FLORIDA, LLC

AMC ITD, INC.

AMC LICENSE SERVICES, INC.

AMERICAN MULTI-CINEMA, INC.

CLUB CINEMA OF MAZZA, INC.

LOEWS CITYWALK THEATRE CORPORATION

WANDA AMC RELEASING, LLC

 

Schedule I

 

ANNEX A

 

Each Broker-Dealer that receives New Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of such New Securities.  The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a Broker-Dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Act.  This Prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of New Securities received in exchange for Securities where such Securities were acquired by such Broker-Dealer as a result of market-making activities or other trading activities.  The Company has agreed that, starting on the Expiration Date (as defined herein) and ending on the close of business one year after the Expiration Date, it will make this Prospectus available to any Broker-Dealer for use in connection with any such resale.  See “Plan of Distribution.”

 

Annex A

 

ANNEX B

 

Each Broker-Dealer that receives New Securities for its own account in exchange for Securities, where such Securities were acquired by such Broker-Dealer as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such New Securities.  See “Plan of Distribution.”

 

Annex B

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each Broker-Dealer that receives New Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of such New Securities.  This Prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of New Securities received in exchange for Securities where such Securities were acquired as a result of market-making activities or other trading activities.  The Company has agreed that, starting on the Expiration Date and ending on the close of business one year after the Expiration Date, it will make this Prospectus, as amended or supplemented, available to any Broker-Dealer for use in connection with any such resale.  In addition, until      , 2015, all dealers effecting transactions in the New Securities may be required to deliver a prospectus.

 

The Company will not receive any proceeds from any sale of New Securities by Brokers-Dealers.  New Securities received by Broker-Dealers for their own account pursuant to the Exchange Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the New Securities or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices.  Any such resale may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such Broker-Dealer and/or the purchasers of any such New Securities.  Any Broker-Dealer that resells New Securities that were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a distribution of such New Securities may be deemed to be an “underwriter” within the meaning of the Act and any profit of any such resale of New Securities and any commissions or concessions received by any such Persons may be deemed to be underwriting compensation under the Act.  The Letter of Transmittal states that by acknowledging that it will deliver and by delivering a prospectus, a Broker-Dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Act.

 

For a period of one year after the Expiration Date, the Company will promptly send additional copies of this Prospectus and any amendment or supplement to this Prospectus to any Broker-Dealer that requests such documents in the Letter of Transmittal.  The Company has agreed to pay all expenses incident to the Exchange Offer (including the expenses of one counsel for the holder of the Securities) other than commissions or concessions of any brokers or dealers and will indemnify the holders of the Securities (including any Broker-Dealers) against certain liabilities, including liabilities under the Act.

 

Annex C

 

ANNEX D

 

Rider A

 

CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

 

Name:
 Address:

 

Rider B

 

If the undersigned is not a Broker-Dealer, the undersigned represents that it acquired the New Securities in the ordinary course of its business, it has not engaged in, and does not intend to engage in, a distribution of New Securities and it has no arrangements or understandings with any Person to participate in a distribution of the New Securities.  If the undersigned is a Broker-Dealer that will receive Exchange Securities for its own account in exchange for Securities that were acquired as a result of market-making activities or other trading activities, it acknowledges that it will deliver a prospectus in connection with any resale of such New Securities; however, by so acknowledging and by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the Act.

 

Annex DExhibit 10.1

 

STOCK PURCHASE AGREEMENT

 

among

 

REL-TECH ELECTRONICS, INC.,

 

THE SHAREHOLDERS OF REL-TECH ELECTRONICS,
INC.,

 

and

 

RF INDUSTRIES, LTD.

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	ARTICLE I	 	DEFINITIONS	1
	 	 	 	 
	ARTICLE II	 	Purchase and Sale	8
	Section
    2.01	 	Purchase and Sale	8
	Section
    2.02	 	Purchase Price	9
	Section
    2.03	 	Closing Deliverables	9
	Section
    2.04	 	Purchase Price Adjustment	10
	Section
    2.05	 	Closing	11
	Section
    2.06	 	Withholding Tax	12
	 	 	 	 
	ARTICLE III	 	Representations and Warranties Concerning the Company	12
	Section
    3.01	 	Due Execution	12
	Section
    3.02	 	Organization, Authority and Qualification of the Company	12
	Section
    3.03	 	Capitalization	12
	Section
    3.04	 	No Subsidiaries	13
	Section
    3.05	 	No Conflicts	13
	Section
    3.06	 	Financial Statements	13
	Section
    3.07	 	Undisclosed Liabilities	14
	Section
    3.08	 	Absence of Certain Changes, Events and Conditions	14
	Section
    3.09	 	Material Contracts	16
	Section
    3.10	 	Title to Assets	17
	Section
    3.11	 	Condition And Sufficiency of Assets	18
	Section
    3.12	 	Intellectual Property	18
	Section
    3.13	 	Inventory	18
	Section
    3.14	 	Accounts Receivable	18
	Section
    3.15	 	Customers and Suppliers	19
	Section
    3.16	 	Insurance	19
	Section
    3.17	 	Legal Proceedings	20
	Section
    3.18	 	Compliance With Laws	20
	Section
    3.19	 	Environmental Matters	20
	Section
    3.20	 	Employee Benefit Matters	22
	Section
    3.21	 	Employment Matters	25
	Section
    3.22	 	Taxes	25
	Section
    3.23	 	Books and Records	28
	Section
    3.24	 	Brokers	28
	Section
    3.25	 	Full Disclosure	28
	 	 	 	 
	ARTICLE IV	 	 	28
	Section
    4.01	 	Due Execution	28
	Section
    4.02	 	Power and Authority	28
	Section
    4.03	 	No Conflicts	29
	Section
    4.04	 	No Actions	29
	Section
    4.05	 	Broker’s Fees	29
	Section
    4.06	 	Shares	29

 

    	i

    	 

    

 

TABLE OF CONTENTS (cont.) 

 

	 	 	 	Page
	 	 	 	 
	Section
    4.07	 	Share Consideration	29
	Section
    4.08	 	Investor Representations	29
	Section
    4.09	 	Access to Information	30
	 	 	 	 
	ARTICLE V	 	Representations and Warranties of Buyer	30
	Section
    5.01	 	Organization and Authority of Buyer	30
	Section
    5.02	 	No Conflicts	30
	Section
    5.03	 	Investment Purpose	30
	Section
    5.04	 	Legal Proceedings	31
	Section
    5.05	 	Validity of Issuance	31
	 	 	 	 
	ARTICLE VI	 	Covenants	31
	Section
    6.01	 	Confidentiality	31
	Section
    6.02	 	Non-competition	31
	Section
    6.03	 	Public Announcements	32
	Section
    6.04	 	Further Assurances	32
	Section
    6.05	 	LeBlanc Consulting	32
	Section
    6.06	 	Key Employee Employment Arrangements	33
	Section
    6.07	 	Location of the Company’s Facilities	33
	 	 	 	 
	ARTICLE VII	 	Tax Matters	33
	Section
    7.01	 	Tax Covenants	33
	Section
    7.02	 	Termination of Existing Tax Sharing Agreements	34
	Section
    7.03	 	Tax Indemnification	34
	Section
    7.04	 	Straddle Period	34
	Section
    7.05	 	Allocation of Purchase Price	34
	Section
    7.06	 	Contests	35
	Section
    7.07	 	Cooperation and Exchange of Information	35
	Section
    7.08	 	Tax Treatment of Indemnification Payments	35
	Section
    7.09	 	Survival	35
	Section
    7.10	 	Overlap	35
	 	 	 	 
	ARTICLE VIII	 	Earn-Out Payments	36
	Section
    8.01	 	Earn-Out	36
	 	 	 	 
	ARTICLE IX	 	Indemnification	38
	Section
    9.01	 	Survival	38
	Section
    9.02	 	Indemnification by Sellers	38
	Section
    9.03	 	Indemnification By Buyer	39
	Section
    9.04	 	Certain Limitations	39
	Section
    9.05	 	Indemnification Procedures	40
	Section
    9.06	 	Payments	42
	Section
    9.07	 	Tax Treatment of Indemnification Payments	42
	Section
    9.08	 	Effect of Investigation	42

 

    	ii

    	 

    

 

TABLE OF CONTENTS (cont.)

 

	 	 	 	Page
	 	 	 	 
	ARTICLE X	 	Shareholders’ Representative	42
	 	 	 	 
	ARTICLE XI	 	Miscellaneous	44
	Section
    11.01	 	Expenses	44
	Section
    11.02	 	Notices	45
	Section
    11.03	 	Interpretation	46
	Section
    11.04	 	Headings	46
	Section
    11.05	 	Severability	46
	Section
    11.06	 	Entire Agreement	46
	Section
    11.07	 	Successors and Assigns	46
	Section
    11.08	 	No Third-party Beneficiaries	46
	Section
    11.09	 	Amendment and Modification	46
	Section
    11.10	 	Governing Law	47
	Section
    11.11	 	Specific Performance	47
	Section
    11.12	 	Counterparts	47

 

	Schedule 1	Sellers’ Information
	Schedule 2	Third Party Consents
	Exhibit A	Employment Agreement
	Exhibit B	Form of Key Employee Employment Agreements

 

    	iii

    	 

    

 

STOCK PURCHASE AGREEMENT

 

This Stock Purchase Agreement (this “Agreement”),
dated June 5, 2015, is entered into among RF Industries, Ltd., a Nevada corporation (“Buyer”), Rel-Tech Electronics,
Inc., a Connecticut corporation (the “Company”), and each shareholder of the Company set forth on Schedule
1 hereto (each such shareholder individually “Seller” and, collectively, “Sellers” and,
together with the Company, the “Seller Parties” and, together with Buyer, the “Parties”).

 

RECITALS

 

WHEREAS, Sellers collectively own all of
the issued and outstanding shares of common stock (the “Shares”) of the Company; and

 

WHEREAS, Sellers wish to sell to Buyer,
and Buyer wishes to purchase from Sellers, the Shares, subject to the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

The following terms have the meanings specified
or referred to in this Article I:

 

“Accounts” has the meaning
set forth in Section 2.02.

 

“Action” means any claim,
action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons,
subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or in equity.

 

“Affiliate” of a Person
means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under
common control with, such Person. The term “control” (including the terms “controlled by”
and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement” has the meaning
set forth in the preamble.

 

“Allocation Schedule”
has the meaning set forth in Section 7.05(b).

 

“Annual Financial Statements”
has the meaning set forth in Section 3.06.

 

“Balance Sheet” has the
meaning set forth in Section 3.06.

 

“Balance Sheet Date”
has the meaning set forth in Section 3.06.

 

“Basket” has the meaning
set forth in Section 9.04(a).

 

    	 

    	 

    

 

“Benefit Plan” has the
meaning set forth in Section 3.20(a).

 

“Business Day” means
any day except Saturday, Sunday or any other day on which commercial banks located in either San Diego, California, or Milford,
Connecticut, are closed.

 

“Buyer” has the meaning
set forth in the preamble.

 

“Buyer Indemnitees” has
the meaning set forth in Section 9.02.

 

“Calculation Period”
means each of the 12-month periods years ended May 31, 2016, May 31, 2017 and May 31, 2018.

 

“CERCLA” means the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act
of 1986, 42 U.S.C. §§ 9601 et seq.

 

“Closing” has the meaning
set forth in Section 2.05.

 

“Closing Cash Consideration”
has the meaning set forth in Section 2.02.

 

“Closing Date” has the
meaning set forth in Section 2.05.

 

“Closing Working Capital”
means: (a) the Target Assets of the Company, less (b) the Target Liabilities of the Company, determined as of the close of business
on the day immediately preceding the Closing Date.

 

“Closing Working Capital Statement”
has the meaning set forth in Section 2.04(a)(i).

 

“Code” means the Internal
Revenue Code of 1986, as amended.

 

“Common Stock” has the
meaning set forth in Section 3.03(a).

 

“Company” has the meaning
set forth in the preamble.

 

“Contracts” means all
contracts, leases, deeds, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, joint ventures and all
other agreements, commitments and legally binding arrangements, whether written or oral.

 

“Direct Claim” has the
meaning set forth in Section 9.05(c).

 

“Disclosure Schedules”
means the Disclosure Schedules delivered by Sellers and Buyer concurrently with the execution and delivery of this Agreement.

 

“Disputed Amounts” has
the meaning set forth in Section 2.04(b)(iii).

 

“Dollars or $” means
the lawful currency of the United States.

 

“Earn-out Calculation”
has the meaning set forth in Section 8.01(b)(i).

 

    	2

    	 

    

 

“Earn-out Calculation Delivery
Date” has the meaning set forth in Section 8.01(b)(i).

 

“Earn-out Calculation Objection
Notice” has the meaning set forth in Section 8.01(b)(ii).

 

“Earn-out Calculation Statement”
has the meaning set forth in Section 8.01(b)(i).

 

“Earn-out Payment” has
the meaning set forth in Section 8.01(a).

 

“Earn-out Period” means
the period beginning on June 1, 2015 and ending on May 31, 2018.

 

“Earn-out Review Period”
has the meaning set forth in Section 8.01(b)(ii).

 

“Employment Agreement”
means the Employment Agreement between Ralph Palumbo and Buyer, in the form attached hereto as Exhibit A.

 

“Encumbrance” means any
charge, claim, community property interest, pledge, condition, equitable interest, lien (statutory or other), option, security
interest, mortgage, easement, encroachment, right of way, right of first refusal, or restriction of any kind, including any restriction
on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

 

“Environmental Claim”
means any Action, Governmental Order, lien, fine, penalty, or, as to each, any settlement or judgment arising therefrom, by or
from any Person alleging liability of whatever kind or nature (including liability or responsibility for the costs of enforcement
proceedings, investigations, cleanup, governmental response, removal or remediation, natural resources damages, property damages,
personal injuries, medical monitoring, penalties, contribution, indemnification and injunctive relief) arising out of, based on
or resulting from: (a) the presence, Release of, or exposure to, any Hazardous Materials; or (b) any actual or alleged non-compliance
with any Environmental Law or term or condition of any Environmental Permit.

 

“Environmental Law” means
any applicable Law, and any Governmental Order or binding agreement with any Governmental Authority: (a) relating to pollution
(or the cleanup thereof) or the protection of natural resources, endangered or threatened species, human health or safety, or the
environment (including ambient air, soil, surface water or groundwater, or subsurface strata); or (b) concerning the presence of,
exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse, treatment, generation, discharge,
transportation, processing, production, disposal or remediation of any Hazardous Materials. The term “Environmental Law”
includes, without limitation, the following (including their implementing regulations and any state analogs): the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act
of 1986, 42 U.S.C. §§ 9601 et seq.; the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery
Act of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§ 6901 et seq.; the Federal Water
Pollution Control Act of 1972, as amended by the Clean Water Act of 1977, 33 U.S.C. §§ 1251 et seq.; the Toxic Substances
Control Act of 1976, as amended, 15 U.S.C. §§ 2601 et seq.; the Emergency Planning and Community Right-to-Know Act of
1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air Act of 1966, as amended by the Clean Air Act Amendments of 1990, 42 U.S.C.
§§ 7401 et seq.; and the Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. §§ 651 et seq.

 

    	3

    	 

    

 

“Environmental Notice”
means any written directive, notice of violation or infraction, or notice respecting any Environmental Claim relating to actual
or alleged non-compliance with any Environmental Law or any term or condition of any Environmental Permit.

 

“Environmental Permit”
means any Permit, letter, clearance, consent, waiver, closure, exemption, decision or other action required under or issued, granted,
given, authorized by or made pursuant to Environmental Law.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“ERISA Affiliate” means
all employers (whether or not incorporated) that would be treated together with the Company or any of its Affiliates as a “single
employer” within the meaning of Section 414 of the Code.

 

“Financial Statements”
has the meaning set forth in Section 3.06.

 

“GAAP” means United States
generally accepted accounting principles in effect from time to time.

 

“Governmental Authority”
means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such
government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental
authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any
arbitrator, court or tribunal of competent jurisdiction.

 

“Governmental Order”
means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority.

 

“Gross Profit” means,
with respect to any Calculation Period, total net revenues minus total cost of sales of the Company for such period, based on the
Company’s financial statements. The following rules shall apply in calculating net revenues and cost of sales: (i) products,
parts and other items sold or transferred by the Company to Buyer (or any subsidiary of Buyer) shall be recorded as a sale by the
Company at a price equal to the price at which the Company would have sold such product, part to item to a third party; (ii) products,
parts and items purchased or otherwise received by the Company from Buyer (or any subsidiary of Buyer) shall be recorded as a purchase
by the Company at a price equal to the price at which Buyer would have purchased such product, part to item from a third party;
and (iii) any services provided by the Company to Buyer (or any subsidiary of Buyer) shall be valued at the price that the Company
would have charged to a third party for such services, and any services received by the Company from Buyer (or any subsidiary of
Buyer) shall be valued at the price that the Company would have paid for such services to a third party. For the purposes of calculating
Gross Profit, the Company’s financial statements for any Calculation Period shall be determined in accordance with GAAP.

 

    	4

    	 

    

 

“Hazardous Materials”
means: (a) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid, mineral or gas, in
each case, whether naturally occurring or manmade, that is hazardous, acutely hazardous, toxic, or words of similar import or regulatory
effect under Environmental Laws; and (b) any petroleum or petroleum-derived products, radon, radioactive materials or wastes, asbestos
in any form, lead or lead-containing materials, urea formaldehyde foam insulation, and polychlorinated biphenyls.

 

“Indemnified Party” has
the meaning set forth in Section 9.05.

 

“Indemnifying Party”
has the meaning set forth in Section 9.05.

 

“Independent Accountant”
means CohnReznick, LLP.

 

“Insurance Policies”
has the meaning set forth in Section 3.16.

 

“Intellectual Property”
means all intellectual property and industrial property rights and assets, and all rights, interests and protections that are associated
with, similar to, or required for the exercise of, any of the foregoing, however arising, pursuant to the Laws of any jurisdiction
throughout the world, whether registered or unregistered.

 

“Interim Balance Sheet”
has the meaning set forth in Section 3.06.

 

“Interim Balance Sheet Date”
has the meaning set forth in Section 3.06.

 

“Interim Financial Statements”
has the meaning set forth in Section 3.06.

 

“Knowledge of the Company”
or “Company’s Knowledge” or any other similar knowledge qualification, means the actual or constructive
knowledge of the Company, any Seller or any director or officer of the Company, after due inquiry.

 

“Law” means any statute,
law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement or rule of
law of any Governmental Authority.

 

“Lease” means the certain
Lease Agreement, as previously amended and extended, between D’Amato Investments, LLC and the Company pursuant to which the
Company leases its facilities at 215 Pepes Farm Road, Milford, Connecticut.

 

“Liabilities” has the
meaning set forth in Section 3.07.

 

“Losses” means losses,
damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs or expenses of whatever kind,
including reasonable attorneys’ fees and the cost of enforcing any right to indemnification hereunder and the cost of pursuing
any insurance providers; provided, however, that “Losses” shall not include punitive damages, except
in the case of fraud or to the extent actually awarded to a Governmental Authority or other third party.

    	5

    	 

    

 

“Material Adverse Effect”
means any event, occurrence, fact, condition or change that is, or could reasonably be expected to become, individually or in the
aggregate, materially adverse to (a) the business, results of operations, condition (financial or otherwise) or assets of the Company,
or (b) the ability of the Company or any Seller to consummate the transactions contemplated hereby on a timely basis.

 

“Material Contracts”
has the meaning set forth in Section 3.09(a).

 

“Material Customers”
has the meaning set forth in Section 3.15(a).

 

“Material Suppliers”
has the meaning set forth in Section 3.15(b).

 

“Multiemployer Plan”
has the meaning set forth in Section 3.20(c).

 

“Non-U.S. Benefit Plan”
has the meaning set forth in Section 3.20(a).

 

“Parties” has the meaning
set forth in the preamble.

 

“Permits” means all permits,
licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained, or required
to be obtained, from Governmental Authorities.

 

“Permitted Encumbrances”
has the meaning set forth in Section 3.10(a).

 

“Person” means an individual,
corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust,
association or other entity.

 

“Post-Closing Adjustment”
has the meaning set forth in Section 2.04(a)(ii).

 

“Post-Closing Tax Period”
means any taxable period beginning after the Closing Date and, with respect to any taxable period beginning before and ending after
the Closing Date, the portion of such taxable period beginning after the Closing Date.

 

“Pre-Closing Tax Period”
means any taxable period ending on or before the Closing Date and, with respect to any taxable period beginning before and ending
after the Closing Date, the portion of such taxable period ending on and including the Closing Date.

 

“Pre-Closing Taxes” means
Taxes of the Company for any Pre-Closing Tax Period.

 

“Pre-Tax Income” means,
with respect to any Calculation Period the net income of the Company determined in accordance with GAAP (and subject to the rules
used to calculate net revenues and cost of sales in “Gross Profit,” above), before (i) income taxes and (ii) amortization
and depreciation of assets attributable solely to the adjustment in those assets as a result of the acquisition of the Company.

 

“Purchase Price” has
the meaning set forth in Section 2.02.

 

“Qualified Benefit Plan”
has the meaning set forth in Section 3.20(c).

 

    	6

    	 

    

 

“Real Property” means
the real property owned, leased or subleased by the Company, together with all buildings, structures and facilities located thereon.

 

“Release” means any actual
or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping,
abandonment, disposing or allowing to escape or migrate into or through the environment (including, without limitation, ambient
air (indoor or outdoor), surface water, groundwater, land surface or subsurface strata or within any building, structure, facility
or fixture).

 

“Representative” means,
with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants and
other agents of such Person.

 

“Resolution Period” has
the meaning set forth in Section 2.04(b)(ii).

 

“Restricted Business”
means any commercial entity engaged in design, manufacturing, assembling, purchasing, selling or distributing telecommunications
and data products, including coaxial or fiber optic cables, patch cords, and wiring harnesses.

 

“Restricted Period” has
the meaning set forth in Section 5.02(a).

 

“Review Period” has the
meaning set forth in Section 2.04(b)(i).

 

“SEC Reports” means Buyer’s
Annual Report on Form 10-K for the year ended October 31, 2014 and all other reports filed with the Securities and Exchange Commission
under the Securities Exchange Act of 1934 after the date of such Form 10-K filing.

 

“Securities Act” has
the meaning set forth in Section 4.07.

 

“Seller” has the meaning
set forth in the preamble.

 

“Seller Indemnitees”
has the meaning set forth in Section 9.03.

 

“Seller Parties” has
the meaning set forth in the preamble.

 

“Shares” has the meaning
set forth in the recitals.

 

“Share Consideration”
has the meaning set forth in Section 2.02.

 

“Shareholders’ Representative”
means Ralph Palumbo.

 

“Statement of Objections”
has the meaning set forth in Section 2.04(b)(ii).

 

“Straddle Period” has
the meaning set forth in Section 7.04.

 

“Target Assets” means
all current assets of the Company determined in accordance with GAAP applied using the same accounting methods, practices, principles,
policies and procedures, with consistent classifications, judgments and valuation and estimation methodologies that were used in
the preparation of the Financial Statements for the most recent fiscal year end as if such accounts were being prepared and audited
as of a fiscal year end. The current assets that are included in the determination of Target Assets include, among other current
assets cash, marketable securities, inventories and accounts receivable that are collectible in full within the normal course of
business, but excluding receivables from any of the Company’s Affiliates, directors, employees, officers or stockholders
and any of their respective Affiliates.

 

    	7

    	 

    

 

“Target Liabilities”
means all current liabilities of the Company determined in accordance with GAAP applied using the same accounting methods, practices,
principles, policies and procedures, with consistent classifications, judgments and valuation and estimation methodologies that
were used in the preparation of the Financial Statements for the most recent fiscal year end as if such accounts were being prepared
and audited as of a fiscal year end. The current liabilities that are included in the determination of Target Liabilities include,
among other current liabilities, accounts payable, accrued payroll, accrued bonus and accrued liabilities. Target Liabilities shall
not include any fees or commissions payable to Generational Equity, LLC or any other broker/finder representing Sellers and/or
the Company in the transactions contemplated hereby, provided that such fees and commissions are, in fact, paid by Sellers as required
by Section 11.01.

 

“Target Working Capital”
means $900,000.

 

“Taxes” means all federal,
state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration,
profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental,
stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs, duties or other taxes,
fees, assessments or charges of any kind whatsoever, together with any interest, additions or penalties with respect thereto and
any interest in respect of such additions or penalties.

 

“Tax Claim” has the meaning
set forth in Section 7.06.

 

“Tax Return” means any
return, declaration, report, claim for refund, information return or statement or other document relating to Taxes, including any
schedule or attachment thereto, and including any amendment thereof.

 

“Territory” means the
United States of America.

 

“Third Party Claim” has
the meaning set forth in Section 9.05(a).

 

“Undisputed Amounts”
has the meaning set forth in Section 2.04(b)(iii).

 

“Union” has the meaning
set forth in Section 3.21(b).

 

ARTICLE II

Purchase and Sale

 

Section
2.01        Purchase and Sale. Subject to the terms and conditions set forth herein, at the Closing, Sellers shall
sell to Buyer, and Buyer shall purchase from Sellers, the Shares, free and clear of all Encumbrances, for the consideration specified
in Section 2.02.

 

    	8

    	 

    

 

Section
2.02        Purchase Price. The aggregate purchase price (the “Purchase Price”) for the Shares
shall be up to $3,100,000, subject to adjustment pursuant to Section 2.04 hereof. The Purchase Price shall be delivered by the
Buyer to the Sellers as follows: (a) a total of $2,100,000 in cash (the “Closing Cash Consideration”) will be
delivered by Buyer to Sellers at the Closing, pro-rata in the proportion of each Seller’s ownership of the Shares as set
forth on Schedule 1, by wire transfer to the accounts provided on Schedule 1 (the “Accounts”);
(b) a total of 50,467 shares of Buyer’s common stock (the “Share Consideration”), valued at $200,000 (based
on a per share price of $3.96, the volume weighted average price of Buyer’s common stock during the five trading days before
the Closing Date) will be delivered by Buyer to Sellers at the Closing, pro-rata in the proportion of each Seller’s ownership
of the Shares as set forth on Schedule 1; and (c) up to a total of $800,000 in additional cash to be delivered by Buyer
to Sellers as set out under Article VIII of this Agreement. The parties agree to allocate the Purchase Price for tax purposes as
provided in Section 7.05(c).

 

Section
2.03        Closing Deliverables.

 

(a)          At the Closing, Buyer shall deliver
to each Seller such Seller’s pro rata portion of the Closing Cash Consideration, in the manner set forth in Section 2.02.

 

(b)         At the Closing, Buyer shall deliver
to the Shareholders’ Representative:

 

(i)          a counterpart of this Agreement duly
executed by Buyer;

 

(ii)         a stock certificate in the name of
each Seller representing each such Seller’s pro rata portion of the Share Consideration; and

 

(iii)        a counterpart of the Employment Agreement
duly executed by the Company.

 

(c)         At the Closing, the Shareholders’
Representative shall deliver (or cause the Company to deliver) to Buyer:

 

(i)          a counterpart of this Agreement duly
executed by each Seller;

 

(ii)          a counterpart of the Employment Agreement
duly executed by Ralph Palumbo;

 

(iii)         all stock certificates evidencing
the Shares owned by each Seller, free and clear of all Encumbrances, duly endorsed in blank or accompanied by stock powers or other
instruments of transfer duly executed in blank, with all required stock transfer tax stamps affixed thereto;

 

(iv)         those Third Party Consents specified
on Schedule 2 hereto;

 

(v)         a certificate pursuant to Treasury
Regulations Section 1.1445-2(b) that each Seller is not a foreign person within the meaning of Section 1445 of the Code;

 

    	9

    	 

    

 

(vi)         a good standing certificate for the
Company from the Secretary of State of the State of Connecticut;

 

(vii)       written resignations, effective as
of the Closing Date, of the officers and directors of the Company and of each of Wilfred LeBlanc, Rosemary LeBlanc and Noreen Palumbo;
and

 

(viii)      a duly executed extension of the
Lease pursuant to which the term of the Lease has been extended by the landlord, on substantially the terms in effect prior to
the extension, for two years.

 

(ix)         evidence that the fees payable to
Generational Equity, LLC have been paid or assumed by the Sellers (and not by the Company) as required by Section 11.01.

 

Section
2.04       Purchase Price Adjustment.

 

(a)         Post-Closing
Adjustment.

 

(i)          Within 10 calendar days after the Closing
Date, Buyer shall prepare and deliver to the Shareholders’ Representative a statement setting forth its calculation of Closing
Working Capital (the “Closing Working Capital Statement”).

 

(ii)         The post-closing adjustment shall
be the amount, if any, by which the Target Working Capital exceeds the Closing Working Capital (the “Post-Closing Adjustment”),
and shall be paid by Sellers to Buyer as described below. For the sake of clarity, if the Closing Working Capital exceeds the Target
Working Capital, there shall be no post-closing adjustment.

 

(b)         Examination and Review.

 

(i)           Examination. After receipt of
the Closing Working Capital Statement, the Shareholders’ Representative shall have five calendar days (the “Review
Period”) to review the Closing Working Capital Statement. During the Review Period, the Shareholders’ Representative
shall have full access to the books and records of the Company, the personnel of, and work papers prepared by, Buyer to the extent
that they relate to the Closing Working Capital Statement and to such historical financial information (to the extent in Buyer’s
possession) relating to the Closing Working Capital Statement as the Shareholders’ Representative may reasonably request
for the purpose of reviewing the Closing Working Capital Statement and to prepare a Statement of Objections (defined below), provided,
that such access shall be in a manner that does not interfere with the normal business operations of Buyer or the Company.

 

    	10

    	 

    

 

(ii)          Objection. On or prior to the
last day of the Review Period, the Shareholders’ Representative may object to the Closing Working Capital Statement by delivering
to Buyer a written statement setting forth the Shareholders’ Representative’s objections in reasonable detail, indicating
each disputed item or amount and the basis for the Shareholders’ Representative’s disagreement therewith (the “Statement
of Objections”). If the Shareholders’ Representative fails to deliver the Statement of Objections before the expiration
of the Review Period, the Closing Working Capital Statement and the Post-Closing Adjustment, as the case may be, reflected in the
Closing Working Capital Statement shall be deemed to have been accepted by Sellers. If the Shareholders’ Representative delivers
the Statement of Objections before the expiration of the Review Period, Buyer and the Shareholders’ Representative shall
negotiate in good faith to resolve such objections within 10 days after the delivery of the Statement of Objections (the “Resolution
Period”), and, if the same are so resolved within the Resolution Period, the Post-Closing Adjustment and the Closing
Working Capital Statement with such changes as may have been previously agreed in writing by Buyer and the Shareholders’
Representative, shall be final and binding.

 

(iii)         Resolution of Disputes. If
the Shareholders’ Representative and Buyer fail to reach an agreement with respect to all of the matters set forth in the
Statement of Objections before expiration of the Resolution Period, then any amounts remaining in dispute (“Disputed Amounts”
and any amounts not so disputed, the “Undisputed Amounts”) shall be submitted for resolution to the Independent
Accountant who, acting as experts and not arbitrators, shall resolve the Disputed Amounts only and make any adjustments to the
Post-Closing Adjustment and the Closing Working Capital Statement, as the case may be. The Parties agree that all adjustments shall
be made without regard to materiality. The Independent Accountant shall only decide the specific items under dispute by the Parties
and their decision for each Disputed Amount must be within the range of values assigned to each such item in the Closing Working
Capital Statement and the Statement of Objections, respectively.

 

(iv)         Fees of the Independent Accountant.
The fees and expenses of the Independent Accountant shall be borne 50% by Sellers and 50% by Buyer.

 

(v)          Determination by Independent Accountant.
The Independent Accountant shall make a determination as soon as practicable within 30 days (or such shorter time as the Parties
shall agree in writing) after their engagement, and their resolution of the Disputed Amounts and their adjustments to the Closing
Working Capital Statement and/or the Post-Closing Adjustment shall be conclusive and binding upon the Parties.

 

(vi)         Payments of Post-Closing Adjustment.
Payment of the Post-Closing Adjustment, if any, shall (A) be due to Buyer (x) within five Business Days of acceptance of the Closing
Working Capital Statement or (y) if there are Disputed Amounts, then within five Business Days of the resolution described in clause
(v) above; and (B) be paid to Buyer by the Shareholders’ Representative by wire transfer of immediately available funds to
an account designated in writing by Buyer to the Shareholders’ Representative.

 

(c)           Adjustments for Tax Purposes.
Any payments made pursuant to Section 2.04 shall be treated as an adjustment to the Purchase Price by the parties for Tax purposes,
unless otherwise required by Law.

 

Section
2.05        Closing. The consummation of the transactions contemplated by this Agreement (the “Closing”)
shall take place by the exchange of documents and instruments via mail, courier, email and/or telecopy and by wire transfer of
funds on the date of execution by the Parties of this Agreement (the “Closing Date”), unless another time, date
or place is agreed to in writing by the Shareholders’ Representative, the Company and the Buyer.

 

    	11

    	 

    

 

Section
2.06        Withholding Tax. Buyer shall be entitled to deduct and withhold from the Purchase Price all Taxes that
Buyer may be required to deduct and withhold under any provision of Tax Law. All such withheld amounts shall be treated as delivered
to Sellers hereunder.

 

ARTICLE III

Representations and Warranties Concerning the Company

 

Except as set forth in the correspondingly
numbered Section of the Disclosure Schedules, each Seller Party jointly and severally represents and warrants to Buyer that the
statements contained in this Article III are true and correct as of the date hereof.

 

Section
3.01        Due Execution. This Agreement has been duly executed and delivered by the Company, and (assuming due
authorization, execution and delivery by the other parties thereto) constitutes a legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms. The Company has the corporate power and authority necessary to execute
and deliver this Agreement and to perform and consummate the transactions contemplated hereby. The Company has taken all action
necessary to authorize the execution and delivery by it of this Agreement, the performance of its obligations hereunder, and the
consummation by the Company of the transactions contemplated hereby.

 

Section
3.02       Organization, Authority and Qualification of the Company. The Company is a corporation duly organized,
validly existing and in good standing under the Laws of the State of Connecticut and has full corporate power and authority to
own, operate or lease the properties and assets now owned, operated or leased by it and to carry on its business as it has been
and is currently conducted. Section 3.02 of the Disclosure Schedules sets forth each jurisdiction in which the Company is licensed
or qualified to do business, and the Company is duly licensed or qualified to do business and is in good standing in each jurisdiction
in which the properties owned or leased by it or the operation of its business as currently conducted makes such licensing or qualification
necessary. The Company has the corporate power and authority necessary to execute and deliver this Agreement and to perform and
consummate the transactions contemplated hereby. The Company has taken all action necessary to authorize the execution and delivery
by it of this Agreement, the performance of its obligations hereunder, and the consummation by the Company of the transactions
contemplated hereby.

 

Section
3.03        Capitalization.

 

(a)           The authorized capital stock of the
Company consists of 1,000 shares of common stock (“Common Stock”), of which 230 shares are issued and outstanding
and constitute the Shares. No shares of preferred stock are authorized or outstanding. All of the Shares have been duly authorized,
are validly issued, fully paid and non-assessable, and are owned of record and beneficially by Sellers, free and clear of all Encumbrances.
Upon consummation of the transactions contemplated by this Agreement, Buyer shall own all of the Shares, representing 100% of the
outstanding shares of the Company’s capital stock, free and clear of all Encumbrances.

 

(b)          All of the Shares were issued in
compliance with applicable Laws. None of the Shares were issued in violation of any agreement, arrangement or commitment to which
any Seller or the Company is a party or is subject to or in violation of any preemptive or similar rights of any Person.

 

    	12

    	 

    

 

(c)          There are no outstanding or authorized
options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any character relating to
the capital stock of the Company or obligating any Seller or the Company to issue or sell any shares of capital stock of, or any
other interest in, the Company. The Company does not have outstanding or authorized any stock appreciation, phantom stock, profit
participation or similar rights. There are no voting trusts, stockholder agreements, proxies or other agreements or understandings
in effect with respect to the voting or transfer of any of the Shares.

 

Section
3.04         No Subsidiaries. The Company does not own, or have any interest in any shares or have an ownership interest
in any other Person.

 

Section
3.05         No Conflicts; Consents. The execution, delivery and performance by the Company of this Agreement and
the consummation of the transactions contemplated hereby, do not and will not: (a) conflict with or result in a violation
or breach of, or default under, any provision of the certificate of incorporation or by-laws of the Company; (b) conflict with
or result in a violation or breach of any provision of any Law or Governmental Order applicable to the Company; (c) except as set
forth in Section 3.05 of the Disclosure Schedules, require the consent, notice or other action by any Person under, conflict with,
result in a violation or breach of, constitute a default or an event that, with or without notice or lapse of time or both, would
constitute a default under, result in the acceleration of or create in any party the right to accelerate, terminate, modify or
cancel any Contract to which the Company is a party or by which the Company is bound or to which any of its properties or assets
are subject (including any Material Contract) or any Permit affecting the properties, assets or business of the Company; or (d)
result in the creation or imposition of any Encumbrance other than Permitted Encumbrances on any properties or assets of the Company.
No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required
by or with respect to the Company in connection with the execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby.

 

Section
3.06         Financial Statements. Complete copies of the Company’s unaudited financial statements, consisting
of the balance sheet of the Company as at December 31 in each of the years 2011, 2012, 2013 and 2014 and the related statements
of income and retained earnings, stockholders’ equity and cash flow for the years then ended (the “Annual Financial
Statements”), and unaudited financial statements consisting of the balance sheet of the Company as at March 31, 2015
and the related statements of income and retained earnings, stockholders’ equity and cash flow for the four- month period
then ended (the “Interim Financial Statements” and together with the Annual Financial Statements, the “Financial
Statements”) have been delivered to Buyer. The Financial Statements are based on the books and records of the Company,
and fairly present the financial condition of the Company as of the respective dates they were prepared and the results of the
operations of the Company for the periods indicated. The balance sheet of the Company as of December 31, 2014 is referred to herein
as the “Balance Sheet” and the date thereof as the “Balance Sheet Date” and the balance sheet
of the Company as of March 31, 2015 is referred to herein as the “Interim Balance Sheet” and the date thereof
as the “Interim Balance Sheet Date”.

 

    	13

    	 

    

 

Section
3.07        Undisclosed Liabilities. The Company has no liabilities, obligations or commitments of any nature whatsoever,
asserted or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise (“Liabilities”),
except (a) those which are adequately reflected or reserved against in the Balance Sheet as of the Balance Sheet Date, and (b)
those which have been incurred in the ordinary course of business consistent with past practice since the Balance Sheet Date and
which are not, individually or in the aggregate, material in amount.

 

Section
3.08        Absence of Certain Changes, Events and Conditions. Except
as set forth in Section 3.08 of the Disclosure Schedules, since the Balance Sheet Date, and other than in the ordinary course
of business consistent with past practice, there has not been, with respect to the Company, any:

 

(a)          event, occurrence or development
that has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

 

(b)          amendment of the charter, by-laws
or other organizational documents of the Company;

 

(c)          split, combination or reclassification
of any shares of its capital stock;

 

(d)          issuance, sale or other disposition
of any of its capital stock, or grant of any options, warrants or other rights to purchase or obtain (including upon conversion,
exchange or exercise) any of its capital stock;

 

(e)          declaration or payment of any dividends
or distributions on or in respect of any of its capital stock or redemption, purchase or acquisition of its capital stock;

 

(f)           material change in any method of
accounting or accounting practice of the Company, except as required by GAAP or as disclosed in the notes to the Financial Statements;

 

(g)          material change in the Company’s
cash management practices and its policies, practices and procedures with respect to collection of accounts receivable, establishment
of reserves for uncollectible accounts, accrual of accounts receivable, inventory control, prepayment of expenses, payment of trade
accounts payable, accrual of other expenses, deferral of revenue and acceptance of customer deposits;

 

(h)          entry into any Contract that would
constitute a Material Contract;

 

(i)          incurrence, assumption or guarantee
of any indebtedness for borrowed money except unsecured current obligations and Liabilities incurred in the ordinary course of
business consistent with past practice;

 

(j)          transfer, assignment, sale or other
disposition of any of the assets shown or reflected in the Balance Sheet or cancellation of any debts or entitlements;

 

(k)         material damage, destruction or loss
(whether or not covered by insurance) to its property;

 

    	14

    	 

    

 

(l)           any capital investment in, or any
loan to, any other Person;

 

(m)          acceleration, termination, material
modification to or cancellation of any material Contract (including, but not limited to, any Material Contract) to which the Company
is a party or by which it is bound;

 

(n)          any material capital expenditures;

 

(o)          imposition of any Encumbrance upon
any of the Company properties, capital stock or assets, tangible or intangible;

 

(p)          (i) grant of any bonuses, whether
monetary or otherwise, or increase in any wages, salary, severance, pension or other compensation or benefits in respect of its
current or former employees, officers, directors, independent contractors or consultants, other than as required by applicable
Law, (ii) change in the terms of employment for any employee or any termination of any employees, or (iii) action to accelerate
the vesting or payment of any compensation or benefit for any current or former employee, officer, director, independent contractor
or consultant;

 

(q)          hiring or promoting any person as
or to (as the case may be) an officer or hiring or promoting any employee below officer except to fill a vacancy in the ordinary
course of business;

 

(r)          adoption, modification or termination
of any: (i) employment, severance, retention or other agreement with any current or former employee, officer, director, independent
contractor or consultant, (ii) Benefit Plan or (iii) collective bargaining or other agreement with a Union, in each case whether
written or oral;

 

(s)          any loan to (or forgiveness of any
loan to), or entry into any other transaction with, any of its stockholders or current or former directors, officers and employees;

 

(t)          entry into a new line of business
or abandonment or discontinuance of existing lines of business;

 

(u)          adoption of any plan of merger, consolidation,
reorganization, liquidation or dissolution or filing of a petition in bankruptcy under any provisions of federal or state bankruptcy
Law or consent to the filing of any bankruptcy petition against it under any similar Law;

 

(v)          purchase, lease or other acquisition
of the right to own, use or lease any property or assets for an amount in excess of $10,000, individually (in the case of a lease,
per annum) or $25,000 in the aggregate (in the case of a lease, for the entire term of the lease, not including any option term),
except for purchases of inventory or supplies in the ordinary course of business consistent with past practice;

 

(w)          acquisition by merger or consolidation
with, or by purchase of a substantial portion of the assets or stock of, or by any other manner, any business or any Person or
any division thereof;

 

    	15

    	 

    

 

(x)           action by the Company to make, change
or rescind any Tax election, amend any Tax Return or take any position on any Tax Return, take any action, omit to take any action
or enter into any other transaction that would have the effect of increasing the Tax liability or reducing any Tax asset of Buyer
in respect of any Post-Closing Tax Period; or

 

(y)          any Contract to do any of the foregoing,
or any action or omission that would result in any of the foregoing.

 

Section
3.09        Material Contracts.

 

(a)         Section 3.09(a) of the Disclosure
Schedules lists each of the following Contracts of the Company (such Contracts, together with all Contracts concerning the occupancy,
management or operation of any Real Property listed or otherwise disclosed in Section 3.10(b) of the Disclosure Schedules being
“Material Contracts”):

 

(i)          each Contract of the Company involving
aggregate consideration in excess of $10,000 and which, in each case, cannot be cancelled by the Company without penalty or without
more than 90 days’ notice;

 

(ii)          all Contracts that provide for the
indemnification by the Company of any Person or the assumption by the Company of any Tax or other Liability of any Person;

 

(iii)         all Contracts that relate to the
acquisition or disposition of any business, a material amount of stock or assets of any other Person or any real property (whether
by merger, sale of stock, sale of assets or otherwise);

 

(iv)         all broker, distributor, dealer, manufacturer’s
representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts to which the
Company is a party;

 

(v)          all employment agreements and Contracts
with independent contractors or consultants (or similar arrangements) to which the Company is a party and which are not cancellable
without material penalty or without more than 90 days’ notice;

 

(vi)         except for Contracts relating to trade
receivables, all Contracts relating to indebtedness (including, without limitation, guarantees) of the Company;

 

(vii)        all Contracts with any Governmental
Authority to which the Company is a party;

 

(viii)       all Contracts that limit or purport
to limit the ability of the Company to compete in any line of business or with any Person or in any geographic area or during any
period of time;

 

(ix)         any Contracts to which the Company
is a party that provide for any joint venture, partnership or similar arrangement by the Company;

 

    	16

    	 

    

 

(x)          all Contracts between or among the
Company on the one hand and a Seller or any Affiliate of a Seller (other than the Company) on the other hand;

 

(xi)          all collective bargaining agreements
or Contracts with any Union to which the Company is a party; and

 

(xii)         any other Contract that is material
to business or operations the Company and not previously disclosed pursuant to this Section 3.09.

 

(b)          Each Material Contract is valid and
binding on the Company in accordance with its terms and is in full force and effect. None of the Company or, to the Company’s
Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under), or has
provided or received any notice of any intention to terminate, any Material Contract. No event or circumstance has occurred that,
with notice or lapse of time or both, would constitute an event of default under any Material Contract or result in a termination
thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of any benefit thereunder.
Complete and correct copies of each Material Contract (including all modifications, amendments and supplements thereto and waivers
thereunder) have been made available to Buyer.

 

Section
3.10        Title to Assets; Real Property.

 

(a)          The Company has good and valid title
to, or a valid leasehold interest in, all Real Property and personal property and other assets reflected in the Annual Financial
Statements or acquired after the Balance Sheet Date, other than properties and assets sold or otherwise disposed of in the ordinary
course of business consistent with past practice since the Balance Sheet Date. All such properties and assets (including leasehold
interests) are free and clear of Encumbrances except for the following (collectively referred to as “Permitted Encumbrances”):

 

(i)          liens for Taxes not yet due and payable;

 

(ii)          mechanics, carriers’, workmen’s,
repairmen’s or other like liens arising or incurred in the ordinary course of business consistent with past practice or amounts
that are not delinquent and which are not, individually or in the aggregate, material to the business of the Company;

 

(iii)         easements, rights of way, zoning
ordinances and other similar encumbrances affecting Real Property which are not, individually or in the aggregate, material to
the business of the Company; or

 

(iv)         liens arising under original purchase
price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of business consistent
with past practice which are not, individually or in the aggregate, material to the business of the Company.

 

    	17

    	 

    

 

(b)          Section 3.10(b) of the Disclosure
Schedules lists (i) the street address of each parcel of Real Property; (ii) if such property is leased or subleased by the Company,
the landlord under the lease, the rental amount currently being paid, and the expiration of the term of such lease or sublease
for each leased or subleased property; and (iii) the current use of such property. The Company does not own any Real Property.
The Company has delivered or made available to Buyer true, complete and correct copies of all leases affecting the Real Property.
The Company is not a sublessor or grantor under any sublease or other instrument granting to any other Person any right to the
possession, lease, occupancy or enjoyment of any leased Real Property. The use and operation of the Real Property in the conduct
of the Company’s business do not violate in any material respect any Law, covenant, condition, restriction, easement, license,
permit or agreement. No material improvements constituting a part of the Real Property encroach on real property owned or leased
by a Person other than the Company. There are no Actions pending nor, to the Company’s Knowledge, threatened against or affecting
the Real Property or any portion thereof or interest therein in the nature or in lieu of condemnation or eminent domain proceedings.

 

Section
3.11        Condition And Sufficiency of Assets. The buildings, plants, structures, furniture, fixtures, machinery,
equipment, vehicles and other items of tangible personal property of the Company are structurally sound, are in good operating
condition and repair, and are adequate for the uses to which they are being put, and none of such buildings, plants, structures,
furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property is in need of maintenance or
repairs except for ordinary, routine maintenance and repairs that are not material in nature or cost. The buildings, plants, structures,
furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property currently owned or leased by
the Company, together with all other properties and assets of the Company, are sufficient for the continued conduct of the Company’s
business after the Closing in substantially the same manner as conducted prior to the Closing and constitute all of the rights,
property and assets necessary to conduct the business of the Company as currently conducted.

 

Section
3.12        Intellectual Property. The Company does not own any Intellectual Property, nor does it utilize any Intellectual
Property that is material to its business.

 

Section
3.13        Inventory. All inventory of the Company, whether or not reflected in the Balance Sheet, consists of a
quality and quantity usable and salable in the ordinary course of business consistent with past practice, except for obsolete,
damaged, defective or slow-moving items that have been written off or written down to fair market value or for which adequate reserves
have been established. All such inventory is owned by the Company free and clear of all Encumbrances, and no inventory is held
on a consignment basis. The quantities of each item of inventory (whether raw materials, work-in-process or finished goods) are
not excessive, but are reasonable in the present circumstances of the Company.

 

Section
3.14         Accounts Receivable. The accounts receivable
reflected on the Interim Balance Sheet and the accounts receivable arising after the date thereof (a) have arisen from bona fide
transactions entered into by the Company involving the sale of goods or the rendering of services in the ordinary course of business
consistent with past practice; (b) constitute only valid, undisputed claims of the Company not subject to claims of set-off or
other defenses or counterclaims other than normal cash discounts accrued in the ordinary course of business consistent with past
practice; and (c) subject to a reserve for bad debts shown on the Interim Balance Sheet or, with respect to accounts receivable
arising after the Interim Balance Sheet Date, on the accounting records of the Company, are collectible in full within the normal
course of business. The reserve for bad debts shown on the Interim Balance Sheet or, with respect to accounts receivable arising
after the Interim Balance Sheet Date, on the accounting records of the Company have been determined in accordance with GAAP, consistently
applied, subject to normal year-end adjustments and the absence of disclosures normally made in footnotes.

 

    	18

    	 

    

 

Section
3.15         Customers and Suppliers.

 

(a)          Section 3.15(a) of the Disclosure
Schedules sets forth (i) each customer who has paid aggregate consideration to the Company for goods or services rendered in an
amount greater than or equal to $25,000 for each of the two most recent fiscal years (collectively, the “Material Customers”);
and (ii) the amount of consideration paid by each Material Customer during such periods. The Company has not received any notice,
and has no reason to believe, that any of its Material Customers has ceased, or intends to cease after the Closing, to use its
goods or services or to otherwise terminate or materially reduce its relationship with the Company.

 

(b)          Section 3.15(b) of the Disclosure
Schedules sets forth (i) each supplier to whom the Company has paid consideration for goods or services rendered in an amount greater
than or equal to $25,000 for each of the two most recent fiscal years (collectively, the “Material Suppliers”);
and (ii) the amount of purchases from each Material Supplier during such periods. The Company has not received any notice, and
has no reason to believe, that any of its Material Suppliers has ceased, or intends to cease, to supply goods or services to the
Company or to otherwise terminate or materially reduce its relationship with the Company.

 

Section
3.16        Insurance. Section 3.16 of the Disclosure Schedules
sets forth a true and complete list of all current policies or binders of fire, liability, product liability, umbrella liability,
real and personal property, workers’ compensation, vehicular, directors’ and officers’ liability, fiduciary
liability and other casualty and property insurance maintained by the Company or its Affiliates and relating to the assets, business,
operations, employees, officers and directors of the Company (collectively, the “Insurance Policies”) and true
and complete copies of such Insurance Policies have been made available to Buyer. Such Insurance Policies are in full force and
effect and shall remain in full force and effect following the consummation of the transactions contemplated by this Agreement.
None of the Company, the Sellers or any of their Affiliates have received any written notice of cancellation of, premium increase
with respect to, or alteration of coverage under, any of such Insurance Policies. All premiums due on such Insurance Policies
have either been paid or, if due and payable prior to Closing, will be paid prior to Closing in accordance with the payment terms
of each Insurance Policy. The Insurance Policies do not provide for any retrospective premium adjustment or other experience-based
liability on the part of the Company. All such Insurance Policies (a) are valid and binding in accordance with their terms; (b)
are provided by carriers who are financially solvent; and (c) have not been subject to any lapse in coverage. There are no claims
related to the business of the Company pending under any such Insurance Policies as to which coverage has been questioned, denied
or disputed or in respect of which there is an outstanding reservation of rights. The Company is not in default under, nor has
it otherwise failed to comply with, in any material respect, any provision contained in any such Insurance Policy. The Insurance
Policies are of the type and in the amounts customarily carried by Persons conducting a business similar to the Company and are
sufficient for compliance with all applicable Laws and Contracts to which the Company is a party or by which it is bound.

 

    	19

    	 

    

 

Section
3.17        Legal Proceedings; Governmental Orders.

 

(a)          There are no Actions pending or,
to the Company’s Knowledge, threatened (a) against or by the Company affecting any of its properties or assets; or (b) against
or by the Company that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.
No event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

 

(b)          There are no outstanding Governmental
Orders and no unsatisfied judgments, penalties or awards against or affecting the Company or any of its properties or assets.

 

Section
3.18        Compliance With Laws; Permits.

 

(a)          The Company has complied, and is
now complying, with all Laws applicable to it or its business, properties or assets.

 

(b)          All Permits required for the Company
to conduct its business have been obtained by it and are valid and in full force and effect. All fees and charges with respect
to such Permits as of the date hereof have been paid in full. Section 3.18(b) of the Disclosure Schedules lists all current Permits
issued to the Company, including the names of the Permits and their respective dates of issuance and expiration. No event has occurred
that, with or without notice or lapse of time or both, would reasonably be expected to result in the revocation, suspension, lapse
or limitation of any Permit set forth in Section 3.18(b) of the Disclosure Schedules.

 

Section
3.19        Environmental Matters.

 

(a)         The Company is currently and has
been in compliance with all Environmental Laws and has not, nor has any Seller, received from any Person any: (i) Environmental
Notice or Environmental Claim; or (ii) written request for information pursuant to Environmental Law, which, in each case, either
remains pending or unresolved, or is the source of ongoing obligations or requirements as of the Closing Date.

 

(b)         The Company has obtained and is in
material compliance with all Environmental Permits (each of which is disclosed in Section 3.19(b) of the Disclosure Schedules)
necessary for the ownership, lease, operation or use of the business or assets of the Company and all such Environmental Permits
are in full force and effect and shall be maintained in full force and effect by the Company through the Closing Date in accordance
with Environmental Law, and the Company is not aware of any condition, event or circumstance that might prevent or impede, after
the Closing Date, the ownership, lease, operation or use of the business or assets of the Company as currently carried out. With
respect to any such Environmental Permits, the Company has undertaken all measures necessary to facilitate transferability of the
same, and the Company is not aware of any condition, event or circumstance that might prevent or impede the transferability of
the same, nor have they received any Environmental Notice or written communication regarding any material adverse change in the
status or terms and conditions of the same.

 

    	20

    	 

    

 

(c)          No real property currently or formerly
owned, operated or leased by the Company is listed on, or has been proposed for listing on, the National Priorities List (or CERCLIS)
under CERCLA, or any similar state list.

 

(d)         There has been no Release of Hazardous
Materials in contravention of Environmental Law with respect to the business or assets of the Company or any real property currently
or formerly owned, operated or leased by the Company, and the Company has not received an Environmental Notice that any real property
currently or formerly owned, operated or leased in connection with the business of the Company (including soils, groundwater, surface
water, buildings and other structure located on any such real property) has been contaminated with any Hazardous Material which
could reasonably be expected to result in an Environmental Claim against, or a violation of Environmental Law or term of any Environmental
Permit by, the Company.

 

(e)         Section 3.19(e) of the Disclosure
Schedules contains a complete and accurate list of all active or abandoned aboveground or underground storage tanks owned or operated
by the Company.

 

(f)          Section 3.19(f) of the Disclosure
Schedules contains a complete and accurate list of all off-site Hazardous Materials treatment, storage, or disposal facilities
or locations used by the Company and any predecessors as to which the Company may retain liability, and none of these facilities
or locations has been placed or proposed for placement on the National Priorities List (or CERCLIS) under CERCLA, or any similar
state list, and the Company has not received any Environmental Notice regarding potential liabilities with respect to such off-site
Hazardous Materials treatment, storage, or disposal facilities or locations used by the Company.

 

(g)         The Company has not retained or assumed,
by contract or operation of Law, any liabilities or obligations of third parties under Environmental Law.

 

(h)         The Company has provided or otherwise
made available to Buyer and listed in Section 3.19(h) of the Disclosure Schedules: (i) any and all environmental reports, studies,
audits, records, sampling data, site assessments, risk assessments, economic models and other similar documents with respect to
the business or assets of the Company or any currently or formerly owned, operated or leased real property which are in the possession
or control of the Company related to compliance with Environmental Laws, Environmental Claims or an Environmental Notice or the
Release of Hazardous Materials; and (ii) any and all material documents concerning planned or anticipated capital expenditures
required to reduce, offset, limit or otherwise control pollution and/or emissions, manage waste or otherwise ensure compliance
with current or future Environmental Laws (including, without limitation, costs of remediation, pollution control equipment and
operational changes).

 

(i)          The Company is not aware of nor does
it reasonably anticipate, as of the Closing Date, any condition, event or circumstance concerning the Release or regulation of
Hazardous Materials that might, after the Closing Date, prevent, impede or materially increase the costs associated with the ownership,
lease, operation, performance or use of the business or assets of the Company as currently carried out.

 

    	21

    	 

    

 

Section
3.20        Employee Benefit Matters.

 

(a)         Section 3.20(a) of the Disclosure
Schedules contains a true and complete list of each pension, benefit, retirement, compensation, employment, consulting, profit-sharing,
deferred compensation, incentive, bonus, performance award, phantom equity, stock or stock-based, change in control, retention,
severance, vacation, paid time off, welfare, fringe-benefit and other similar agreement, plan, policy, program or arrangement (and
any amendments thereto), in each case whether or not reduced to writing and whether funded or unfunded, including each “employee
benefit plan” within the meaning of Section 3(3) of ERISA, whether or not tax-qualified and whether or not subject to
ERISA, which is or has been maintained, sponsored, contributed to, or required to be contributed to by the Company for the benefit
of any current or former employee, officer, director, retiree, independent contractor or consultant of the Company or any spouse
or dependent of such individual, or under which the Company or any of its ERISA Affiliates has or may have any Liability, or with
respect to which Buyer or any of its Affiliates would reasonably be expected to have any Liability, contingent or otherwise (as
listed on Section 3.20(a) of the Disclosure Schedules, each, a “Benefit Plan”). The Company has separately identified
in Section 3.20(a) of the Disclosure Schedules (i) each Benefit Plan that contains a change in control provision and (ii) each
Benefit Plan that is maintained, sponsored, contributed to, or required to be contributed to by the Company primarily for the benefit
of employees outside of the United States (a “Non-U.S. Benefit Plan”).

 

(b)          With respect to each Benefit Plan,
the Company has made available to Buyer accurate, current and complete copies of each of the following: (i) where the Benefit Plan
has been reduced to writing, the plan document together with all amendments; (ii) where the Benefit Plan has not been reduced to
writing, a written summary of all material plan terms; (iii) where applicable, copies of any trust agreements or other funding
arrangements, custodial agreements, insurance policies and contracts, administration agreements and similar agreements, and investment
management or investment advisory agreements, now in effect or required in the future as a result of the transactions contemplated
by this Agreement or otherwise; (iv) copies of any summary plan descriptions, summaries of material modifications, employee handbooks
and any other written communications (or a description of any oral communications) relating to any Benefit Plan; (v) in the case
of any Benefit Plan that is intended to be qualified under Section 401(a) of the Code, a copy of the most recent determination,
opinion or advisory letter from the Internal Revenue Service; (vi) in the case of any Benefit Plan for which a Form 5500 is required
to be filed, a copy of the two most recently filed Form 5500, with schedules and financial statements attached; (vii) actuarial
valuations and reports related to any Benefit Plans with respect to the two most recently completed plan years; (viii) the most
recent nondiscrimination tests performed under the Code; and (ix) copies of material notices, letters or other correspondence from
the Internal Revenue Service, Department of Labor, Pension Benefit Guaranty Corporation or other Governmental Authority relating
to the Benefit Plan.

 

    	22

    	 

    

 

(c)          Each Benefit Plan and related trust
(other than any multiemployer plan within the meaning of Section 3(37) of ERISA (each a “Multiemployer Plan”))
has been established, administered and maintained in accordance with its terms and in compliance with all applicable Laws (including
ERISA, the Code and any applicable local Laws). Each Benefit Plan that is intended to be qualified under Section 401(a) of the
Code (a “Qualified Benefit Plan”) is so qualified and has received a favorable and current determination letter
from the Internal Revenue Service, or with respect to a prototype plan, can rely on an opinion letter from the Internal Revenue
Service to the prototype plan sponsor, to the effect that such Qualified Benefit Plan is so qualified and that the plan and the
trust related thereto are exempt from federal income taxes under Sections 401(a) and 501(a), respectively, of the Code, and nothing
has occurred that could reasonably be expected to adversely affect the qualified status of any Qualified Benefit Plan. Nothing
has occurred with respect to any Benefit Plan that has subjected or could reasonably be expected to subject the Company or any
of its ERISA Affiliates or, with respect to any period on or after the Closing Date, Buyer or any of its Affiliates, to a penalty
under Section 502 of ERISA or to tax or penalty under Section 4975 of the Code. All benefits, contributions and premiums relating
to each Benefit Plan have been timely paid in accordance with the terms of such Benefit Plan and all applicable Laws and accounting
principles, and all benefits accrued under any unfunded Benefit Plan have been paid, accrued or otherwise adequately reserved to
the extent required by, and in accordance with, GAAP. All Non-U.S. Benefit Plans that are intended to be funded and/or book-reserved
are funded and/or book-reserved, as appropriate, based upon reasonable actuarial assumptions.

 

(d)          Neither the Company nor any of its
ERISA Affiliates has (i) incurred or reasonably expects to incur, either directly or indirectly, any material Liability under Title
I or Title IV of ERISA or related provisions of the Code or applicable local Law relating to employee benefit plans; (ii) failed
to timely pay premiums to the Pension Benefit Guaranty Corporation; (iii) withdrawn from any Benefit Plan; or (iv) engaged in any
transaction which would give rise to liability under Section 4069 or Section 4212(c) of ERISA.

 

(e)          With respect to each Benefit Plan
(i) no such plan is a “multiple employer plan” within the meaning of Section 413(c) of the Code or a “multiple
employer welfare arrangement” (as defined in Section 3(40) of ERISA); (ii) no Action has been initiated by the Pension
Benefit Guaranty Corporation to terminate any such plan or to appoint a trustee for any such plan; (iii) no such plan is subject
to the minimum funding standards of Section 412 of the Code or Title IV of ERISA, and none of the assets of the Company or any
ERISA Affiliate is, or may reasonably be expected to become, the subject of any lien arising under Section 302 of ERISA or Section
412(a) of the Code, (iv) no such plan is subject to the minimum funding standards of Section 412 of the Code or Title IV of ERISA,
and no plan listed in Section 3.20(e) of the Disclosure Schedules has failed to satisfy the minimum funding standards of Section
302 of ERISA or Section 412 of the Code; and (v) no “reportable event,” as defined in Section 4043 of ERISA,
has occurred with respect to any such plan.

 

(f)          Each Benefit Plan can be amended,
terminated or otherwise discontinued after the Closing in accordance with its terms, without material liabilities to Buyer, the
Company or any of their Affiliates other than ordinary administrative expenses typically incurred in a termination event. The Company
has no commitment or obligation and has not made any representations to any employee, officer, director, independent contractor
or consultant, whether or not legally binding, to adopt, amend, modify or terminate any Benefit Plan or any collective bargaining
agreement, in connection with the consummation of the transactions contemplated by this Agreement or otherwise.

 

    	23

    	 

    

 

(g)         Other than as required under Section
601 et. seq. of ERISA or other applicable Law, no Benefit Plan provides post-termination or retiree welfare benefits to any individual
for any reason, and neither the Company nor any of its ERISA Affiliates has any Liability to provide post-termination or retiree
welfare benefits to any individual or ever represented, promised or contracted to any individual that such individual would be
provided with post-termination or retiree welfare benefits.

 

(h)          There is no pending or, to the Company’s
Knowledge, threatened Action relating to a Benefit Plan (other than routine claims for benefits), and no Benefit Plan has within
the three years prior to the date hereof been the subject of an examination or audit by a Governmental Authority or the subject
of an application or filing under or is a participant in, an amnesty, voluntary compliance, self-correction or similar program
sponsored by any Governmental Authority.

 

(i)          There has been no amendment to, announcement
by the Company or any of its Affiliates relating to, or change in employee participation or coverage under, any Benefit Plan or
collective bargaining agreement that would increase the annual expense of maintaining such plan above the level of the expense
incurred for the most recently completed fiscal year with respect to any director, officer, employee, independent contractor or
consultant, as applicable. None of the Company or any of its Affiliates has any commitment or obligation or has made any representations
to any director, officer, employee, independent contractor or consultant, whether or not legally binding, to adopt, amend, modify
or terminate any Benefit Plan or any collective bargaining agreement.

 

(j)           Each Benefit Plan that is subject
to Section 409A of the Code has been administered in compliance with its terms and the operational and documentary requirements
of Section 409A of the Code and all applicable regulatory guidance (including notices, rulings and proposed and final regulations)
thereunder. The Company does not have any obligation to gross up, indemnify or otherwise reimburse any individual for any excise
taxes, interest or penalties incurred pursuant to Section 409A of the Code.

 

(k)          Each individual who is classified
by the Company as an independent contractor has been properly classified for purposes of participation and benefit accrual under
each Benefit Plan.

 

(l)           Neither the execution of this Agreement
nor any of the transactions contemplated by this Agreement will (either alone or upon the occurrence of any additional or subsequent
events): (i) entitle any current or former director, officer, employee, independent contractor or consultant of the Company to
severance pay or any other payment; (ii) accelerate the time of payment, funding or vesting, or increase the amount of compensation
due to any such individual; (iii) limit or restrict the right of the Company to merge, amend or terminate any Benefit Plan; (iv)
increase the amount payable under or result in any other material obligation pursuant to any Benefit Plan; (v) result in “excess
parachute payments” within the meaning of Section 280G(b) of the Code; or (vi) require a “gross-up”
or other payment to any “disqualified individual” within the meaning of Section 280G(c) of the Code.

 

    	24

    	 

    

 

Section
3.21         Employment Matters.

 

(a)          Section 3.21(a) of the Disclosure
Schedules contains a list of all persons who are employees, independent contractors or consultants of the Company as of the date
hereof, including any employee who is on a leave of absence of any nature, paid or unpaid, authorized or unauthorized, and sets
forth for each such individual the following: (i) name; (ii) title or position (including whether full or part time); (iii) hire
date; (iv) current annual base compensation rate; (v) commission, bonus or other incentive-based compensation; and (vi) a description
of the fringe benefits provided to each such individual as of the date hereof. As of the date hereof, all compensation, including
wages, commissions and bonuses, payable to all employees, independent contractors or consultants of the Company for services performed
on or prior to the date hereof have been paid in full (or accrued in full on the balance sheet contained in the Closing Working
Capital Statement) and there are no outstanding agreements, understandings or commitments of the Company with respect to any compensation,
commissions or bonuses.

 

(b)          The Company is not, and has not been
for the past five years, a party to, bound by, or negotiating any collective bargaining agreement or other Contract with a union,
works council or labor organization (collectively, “Union”), and there is not, and has not been for the past
five years, any Union representing or purporting to represent any employee of the Company, and no Union or group of employees is
seeking or has sought to organize employees for the purpose of collective bargaining. There has never been, nor has there been
any threat of, any strike, slowdown, work stoppage, lockout, concerted refusal to work overtime or other similar labor disruption
or dispute affecting the Company or any of its employees. The Company has no duty to bargain with any Union.

 

(c)          The Company is and has been in compliance
with all applicable Laws pertaining to employment and employment practices, including all Laws relating to labor relations, equal
employment opportunities, fair employment practices, employment discrimination, harassment, retaliation, reasonable accommodation,
disability rights or benefits, immigration, wages, hours, overtime compensation, child labor, hiring, promotion and termination
of employees, working conditions, meal and break periods, privacy, health and safety, workers’ compensation, leaves of absence
and unemployment insurance. All individuals characterized and treated by the Company as independent contractors or consultants
are properly treated as independent contractors under all applicable Laws. All employees of the Company classified as exempt under
the Fair Labor Standards Act and state and local wage and hour laws are properly classified. There are no Actions against the Company
pending, or to the Company’s Knowledge, threatened to be brought or filed, by or with any Governmental Authority or arbitrator
in connection with the employment of any current or former applicant, employee, consultant or independent contractor of the Company,
including, without limitation, any claim relating to unfair labor practices, employment discrimination, harassment, retaliation,
equal pay, wage and hours or any other employment related matter arising under applicable Laws.

 

Section
3.22         Taxes. Except as set forth in Section 3.22 of the Disclosure Schedules:

 

(a)          All Tax Returns required to be filed
on or before the Closing Date by the Company have been, or will be, timely filed. Such Tax Returns are, or will be, true, complete
and correct in all respects. All Taxes due and owing by the Company (whether or not shown on any Tax Return) have been, or will
be, timely paid.

 

    	25

    	 

    

 

(b)         The Company has withheld and paid
each Tax required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor,
creditor, customer, shareholder or other party, and complied with all information reporting and backup withholding provisions of
applicable Law.

 

(c)          No claim has been made by any taxing
authority in any jurisdiction where the Company does not file Tax Returns that it is, or may be, subject to Tax by that jurisdiction.

 

(d)         No extensions or waivers of statutes
of limitations have been given or requested with respect to any Taxes of the Company.

 

(e)         The amount of the Company’s
Liability for unpaid Taxes for all periods ending on or before April 30, 2015 does not, in the aggregate, exceed the amount of
accruals for Taxes (excluding reserves for deferred Taxes) reflected on the Financial Statements. The amount of the Company’s
Liability for unpaid Taxes for all periods following the end of the most recent period covered by the Financial Statements shall
not, in the aggregate, exceed the amount of accruals for Taxes (excluding reserves for deferred Taxes) as adjusted for the passage
of time in accordance with the past custom and practice of the Company (and which accruals shall not exceed comparable amounts
incurred in similar periods in prior years).

 

(f)          Section 3.22(f) of the Disclosure
Schedules sets forth:

 

(i)          the taxable years of the Company as
to which the applicable statutes of limitations on the assessment and collection of Taxes have not expired;

 

(ii)          those years for which examinations
by the taxing authorities have been completed; and

 

(iii)         those taxable years for which examinations
by taxing authorities are presently being conducted.

 

(g)          All deficiencies asserted, or assessments
made, against the Company as a result of any examinations by any taxing authority have been fully paid.

 

(h)          The Company is not a party to any
Action by any taxing authority. There are no pending or threatened Actions by any taxing authority.

 

(i)          The Company has delivered to Buyer
copies of all federal, state, local and foreign income, franchise and similar Tax Returns, examination reports, and statements
of deficiencies assessed against, or agreed to by, the Company for all Tax periods ending after January 1, 2010.

 

(j)           There are no Encumbrances for Taxes
(other than for current Taxes not yet due and payable) upon the assets of the Company.

 

    	26

    	 

    

 

(k)          The Company is not a party to, or
bound by, any Tax indemnity, Tax sharing or Tax allocation agreement.

 

(l)          No private letter rulings, technical
advice memoranda or similar agreement or rulings have been requested, entered into or issued by any taxing authority with respect
to the Company.

 

(m)         The Company has not been a member
of an affiliated, combined, consolidated or unitary Tax group for Tax purposes. The Company has no Liability for Taxes of any Person
(other than the Company) under Treasury Regulations Section 1.1502-6 (or any corresponding provision of state, local or foreign
Law), as transferee or successor, by contract or otherwise.

 

(n)          The Company will not be required
to include any item of income in, or exclude any item or deduction from, taxable income for any taxable period or portion thereof
ending after the Closing Date as a result of:

 

(i)          any change in a method of accounting
under Section 481 of the Code (or any comparable provision of state, local or foreign Tax Laws), or use of an improper method of
accounting, for a taxable period ending on or prior to the Closing Date;

 

(ii)         an installment sale or open transaction
occurring on or prior to the Closing Date;

 

(iii)        a prepaid amount received on or before
the Closing Date;

 

(iv)        any closing agreement under Section
7121 of the Code, or similar provision of state, local or foreign Law; or

 

(v)         any election under Section 108(i) of
the Code.

 

(o)         No Seller is a “foreign
person” as that term is used in Treasury Regulations Section 1.1445-2. The Company is not, nor has it been, a United
States real property holding corporation (as defined in Section 897(c)(2) of the Code) during the applicable period specified in
Section 897(c)(1)(a) of the Code.

 

(p)         The Company has not been a “distributing
corporation” or a “controlled corporation” in connection with a distribution described in Section
355 of the Code.

 

(q)         The Company is not, and has not been,
a party to, or a promoter of, a “reportable transaction” within the meaning of Section 6707A(c)(1) of the Code
and Treasury Regulations Section 1.6011 4(b).

 

(r)          There is currently no limitation
on the utilization of net operating losses, capital losses, built-in losses, tax credits or similar items of the Company under
Sections 269, 382, 383, 384 or 1502 of the Code and the Treasury Regulations thereunder (and comparable provisions of state, local
or foreign Law).

 

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(s)          Section 3.22(s) of the Disclosure
Schedules sets forth all foreign jurisdictions in which the Company is subject to Tax, is engaged in business or has a permanent
establishment. The Company has not entered into a gain recognition agreement pursuant to Treasury Regulations Section 1.367(a)-8.
The Company has not transferred an intangible the transfer of which would be subject to the rules of Section 367(d) of the Code.

 

Section
3.23       Books and Records. The minute books and stock record books of the Company have been made available to
Buyer. To the Company’s knowledge, the minute books and stock records of the Company that have been made available to Buyer
represent all of the written records of meetings, and actions taken by written consent of, the stockholders, the board of directors
and any committees of the board of directors of the Company in existence, and no minutes, written resolutions stock records have
been prepared that were not made available to Buyer. At the Closing, all of those books and records will be in the possession of
the Company.

 

Section
3.24        Brokers. Except for fees payable to Generational Equity, LLC by the Sellers as required by Section 11.01,
no broker, finder or investment banker is entitled to any brokerage, finders or other fee or commission in connection with the
transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company.

 

Section
3.25        Full Disclosure. No representation or warranty by the Company in this Agreement and no statement contained
in the Disclosure Schedules to this Agreement or any certificate or other document furnished or to be furnished to Buyer pursuant
to this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements
contained therein, in light of the circumstances in which they are made, not misleading.

 

ARTICLE IV

 

Except as set forth in the correspondingly
numbered Section of the Disclosure Schedule, each Seller severally and not jointly, represents and warrants to Buyer that the statements
contained in this Article IV as true and correct as of the date hereof.

 

Section
4.01        Due Execution. This Agreement has been duly executed and delivered by such Seller, and (assuming due
authorization, execution and delivery by the other parties thereto) constitutes a legal, valid and binding obligation of such Seller
enforceable against such Seller in accordance with its terms.

 

Section
4.02        Power and Authority. Such Seller has the requisite competence and authority to execute and deliver this
Agreement and to perform and consummate the transactions contemplated hereby. Such Seller has taken all action necessary to authorize
the execution and delivery by such Seller of this Agreement, the performance of such Seller’s obligations hereunder, and
the consummation by such Seller of the transactions contemplated hereby.

 

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Section
4.03        No Conflicts; Consents. The execution, delivery and performance by such Seller of this Agreement, and
the consummation of the transactions contemplated hereby, do not and will not: (a) conflict with or result in a violation or breach
of any provision of any Law or Governmental Order applicable to such Seller; (b) require the consent, notice or other action by
any Person under, conflict with, result in a violation or breach of, constitute a default or an event that, with or without notice
or lapse of time or both, would constitute a default under, result in the acceleration of or create in any party the right to accelerate,
terminate, modify or cancel any Contract to which such Seller is a party or by which such Seller is bound or to which any of his
or her properties or assets are subject or any Permit affecting his or her properties, assets or business; (c) result in the creation
or imposition of any Encumbrance other than Permitted Encumbrances on any properties or assets of the Company (including the Shares);
or (d) trigger any rights of first refusal, preferential purchase or similar rights with respect to any of the Shares. No consent,
approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with
respect to such Seller in connection with the execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby.

 

Section
4.04        No Actions; Status of Seller. There are no Actions pending or, to such Seller’s Knowledge, threatened
against or by such Seller (a) that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this
Agreement, or (b) resulting from or related to the insolvency of such Seller. No event has occurred or circumstances exist that
may give rise to, or serve as a basis for, any such Action.

 

Section
4.05        Broker’s Fees. Such Seller has no liability or obligation to pay any compensation to any broker,
finder or agent with respect to the transactions contemplated hereby for which Buyer or the Company could become directly or indirectly
liable.

 

Section
4.06        Shares; Seller Information.  Such Seller holds of record and owns beneficially the number of Shares as
set forth next to such Seller’s name in Schedule 1, free and clear of any Encumbrances. Schedule 1 also sets
forth the address, state of residence and social security number of such Seller as of the date hereof. Such Seller is not a party
to any Contract (other than this Agreement) that could require such Seller to sell, transfer, or otherwise dispose of any shares
of the Company. Such Seller is not a party to any other Contract with respect to any shares of the Company.

 

Section
4.07        Share Consideration. Such Seller understands and acknowledges that (i) none of the Share Consideration
has been registered under the Securities Act of 1933, as amended (the “Securities Act”) and such shares are
therefore restricted securities; (ii) none of the Share Consideration may be sold or transferred unless registered under the Securities
Act or an exemption from such registration is available; and (iii) a legend to that effect will be placed on the certificates representing
the Share Consideration.

 

Section
4.08        Investor Representations. Such Seller (i) is an accredited investor as defined in Regulation D under
the Securities Act; (ii) is acquiring the Share Consideration for his or her own account for investment and not with a view to
the distribution thereof except in compliance with the Securities Act or an exemption available thereunder; and (iii) has been
granted the opportunity to investigate the business and affairs of Buyer and to ask questions of its officers and employees, and
has availed himself or herself of such opportunity.

 

    	29

    	 

    

 

Section
4.09        Access to Information. Such Seller acknowledges that he or she has reviewed the SEC Reports and has been
afforded: (i) the opportunity to ask such questions as he or she has deemed necessary of, and to receive answers from, representatives
of Buyer concerning the terms and conditions of the sale of Buyer’s common stock and the merits and risks of investing in
Buyer’s common stock; (ii) access to information, including copies of any exhibits to the SEC Reports, about Buyer and its
financial condition, results of operations, business, properties, management and prospects sufficient to enable him or her to evaluate
his or her investment; and (iii) the opportunity to obtain such additional information that Buyer possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither
such inquiries nor any other investigation conducted by or on behalf of such Seller or his or her purchaser representatives or
counsel shall modify, amend or affect such Seller’s right to rely on the truth, accuracy and completeness of the SEC Reports
and Buyer’s representations and warranties contained in this Agreement.

 

ARTICLE V

Representations and Warranties of Buyer

 

Buyer represents and warrants to each Seller
that the statements contained in this Article V are true and correct as of the date hereof.

 

Section
5.01        Organization and Authority of Buyer. Buyer is a corporation duly organized, validly existing and in good
standing under the Laws of the State of Nevada. Buyer has full corporate power and authority to enter into this Agreement to carry
out its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery by Buyer of this
Agreement, the performance by Buyer of its obligations hereunder and the consummation by Buyer of the transactions contemplated
hereby have been duly authorized by all requisite corporate action on the part of Buyer. This Agreement has been duly executed
and delivered by Buyer, and (assuming due authorization, execution and delivery by the Company and each Seller) constitutes a legal,
valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms.

 

Section
5.02        No Conflicts; Consents. The execution, delivery and performance by Buyer of this Agreement, and the consummation
of the transactions contemplated hereby, do not and will not: (a) conflict with or result in a violation or breach of, or
default under, any provision of the certificate of incorporation, by-laws or other organizational documents of Buyer; (b) conflict
with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Buyer; or (c) require the
consent, notice or other action by any Person under any Contract to which Buyer is a party. No consent, approval, Permit, Governmental
Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to Buyer in connection
with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, except for such
filings as may be required under the federal and state securities laws.

 

Section
5.03        Investment Purpose. Buyer is acquiring the Shares solely for its own account for investment purposes
and not with a view to, or for offer or sale in connection with, any distribution thereof. Buyer acknowledges that the Shares are
not registered under the Securities Act, or any state securities laws, and that the Shares may not be transferred or sold except
pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and subject to state
securities laws and regulations, as applicable.

 

    	30

    	 

    

 

Section
5.04         Legal Proceedings. There are no Actions pending or, to Buyer’s knowledge, threatened against or
by Buyer or any Affiliate of Buyer that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by
this Agreement. No event has occurred or circumstances exist that may give rise or serve as a basis for any such Action.

 

Section
5.05         Validity of Issuance. The Share Consideration, when issued in accordance with the terms hereof, will
be duly and validly issued, fully paid and nonassessable.

 

ARTICLE VI

Covenants

 

Section
6.01          Confidentiality. From and after the Closing, each Seller shall hold in confidence any and all information,
whether written or oral, concerning the Company, except to the extent that such Seller can show that such information (a) is generally
available to and known by the public through no fault of such Seller, any of his or her Affiliates or their respective Representatives;
or (b) is lawfully acquired by such Seller, any of his or her Affiliates or their respective Representatives from and after the
Closing from sources which are not prohibited from disclosing such information by a legal, contractual or fiduciary obligation.
If a Seller or any of his or her Affiliates or their respective Representatives are compelled to disclose any information by judicial
or administrative process or by other requirements of Law, such Seller shall promptly notify Buyer in writing and shall disclose
only that portion of such information which such Seller is advised by his or her counsel in writing is legally required to be disclosed,
provided that such Seller shall use reasonable best efforts to obtain an appropriate protective order or other reasonable assurance
that confidential treatment will be accorded such information.

 

Section
6.02          Non-competition; Non-solicitation

 

(a)          For a period of three years commencing
on the Closing Date (the “Restricted Period”), each Seller agrees that he or she shall not, and that he or she
shall not permit any of his or her Affiliates to, directly or indirectly, (i) engage in or assist others in engaging in the Restricted
Business in the Territory; (ii) have an interest in any Person that engages directly or indirectly in the Restricted Business in
the Territory in any capacity, including as a partner, shareholder, member, employee, principal, agent, trustee or consultant;
or (iii) intentionally interfere in any material respect with the business relationships (whether formed prior to or after the
date of this Agreement) between the Company and customers or suppliers of the Company. Notwithstanding the foregoing, each Seller
may own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange if
such Seller is not a controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly
(including with his or her spouse), own 5% or more of any class of securities of such Person.

 

(b)         During the Restricted Period, each
Seller agrees that he or she shall not, and that he or she shall not permit any of his or her Affiliates to, directly or indirectly,
hire or solicit any employee of the Company or encourage any such employee to leave such employment or hire any such employee who
has left such employment, except pursuant to a general solicitation which is not directed specifically to any such employees; provided,
that nothing in this Section 6.02(b) shall prevent a Seller or any of his or her Affiliates from hiring (i) any employee whose
employment has been terminated by the Company or Buyer or (ii) after 180 days from the date of termination of employment, any employee
whose employment has been terminated by the employee.

 

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(c)          During the Restricted Period, each
Seller agrees that he or she shall not, and shall not permit any of his or her Affiliates to, directly or indirectly, solicit or
entice, or attempt to solicit or entice, any clients or customers of the Company or potential clients or customers of the Company
for purposes of diverting their business or services from the Company.

 

(d)          Each Seller acknowledges that a breach
or threatened breach of this Section 6.02 would give rise to irreparable harm to Buyer, for which monetary damages would not be
an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by such Seller of any such obligations,
Buyer shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled
to equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may
be available from a court of competent jurisdiction (without any requirement to post bond).

 

(e)          Each Seller acknowledges that the
restrictions contained in this Section 6.02 are reasonable and necessary to protect the legitimate interests of Buyer and constitute
a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated by this Agreement. In
the event that any covenant contained in this Section 6.02 should ever be adjudicated to exceed the time, geographic, product or
service, or other limitations permitted by applicable Law in any jurisdiction, then any court is expressly empowered to reform
such covenant, and such covenant shall be deemed reformed, in such jurisdiction to the maximum time, geographic, product or service,
or other limitations permitted by applicable Law. The covenants contained in this Section 6.02 and each provision hereof are severable
and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not
invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

 

Section
6.03        Public Announcements. Unless otherwise required by applicable Law (based upon the reasonable advice of
counsel), no Seller shall make any public announcements in respect of this Agreement or the transactions contemplated hereby or
otherwise communicate with any news media without the prior written consent of Buyer, and the parties shall cooperate as to the
timing and contents of any such announcement.

 

Section
6.04        Further Assurances. Following the Closing, each Party shall, and shall cause their respective Affiliates
to, execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may
be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

 

Section
6.05        LeBlanc Consulting. For the 36-month period following the Closing Date, Wilfred LeBlanc shall be available
to provide consulting services to the Company at the rate of compensation of $75 per hour, at the request of Buyer or the Company.

 

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Section
6.06         Key Employee Employment Arrangements. Effective as of the Closing, Buyer will cause the Company to offer
to employ each of John Barago, Richard Benoit, Wilfred LeBlanc III, Robert Benoit and Neryra Sanabria, each pursuant to an employment
agreement in the form attached hereto as Exhibit B.

 

Section
6.07        Location of the Company’s Facilities. Buyer hereby agrees that it will not, without the prior written
approval of Seller, relocate the Company’s principal facilities from its current location at 215 Pepes Farm Road, Milford,
Connecticut, during the term of the Lease.

 

ARTICLE VII

Tax Matters

 

Section
7.01       Tax Covenants.

 

(a)          Without the prior written consent
of Buyer, no Seller shall, to the extent it may affect, or relate to, the Company, make, change or rescind any Tax election, amend
any Tax Return or take any position on any Tax Return, take any action, omit to take any action or enter into any other transaction
that would have the effect of increasing the Tax liability or reducing any Tax asset of Buyer or the Company in respect of any
Post-Closing Tax Period. Each Seller agrees that Buyer is to have no liability for any Tax resulting from any action of any Seller
and agrees to indemnify and hold harmless Buyer and the Company against any such Tax or reduction of any Tax asset.

 

(b)          All transfer, documentary, sales,
use, stamp, registration, value added and other such Taxes and fees (including any penalties and interest) incurred in connection
with this Agreement (including any real property transfer Tax and any other similar Tax) shall be borne and paid by Sellers when
due. The Shareholders’ Representative shall, at Sellers’ expense, timely file any Tax Return or other document with
respect to such Taxes or fees (and Buyer shall cooperate with respect thereto as necessary).

 

(c)          The Shareholders’ Representative
shall prepare, or cause to be prepared, all Tax Returns required to be filed by the Company after the Closing Date with respect
to a Pre-Closing Tax Period. Any such Tax Return shall be prepared in a manner consistent with past practice (unless otherwise
required by Law) and without a change of any election or any accounting method and shall be submitted by the Shareholders’
Representative to Buyer (together with schedules, statements and, to the extent requested by Buyer, supporting documentation) at
least 45 days prior to the due date (including extensions) of such Tax Return. If Buyer objects to any item on any such Tax Return,
it shall, within ten days after delivery of such Tax Return, notify the Shareholders’ Representative in writing that it so
objects, specifying with particularity any such item and stating the specific factual or legal basis for any such objection. If
a notice of objection shall be duly delivered, the Shareholders’ Representative and Buyer shall negotiate in good faith and
use their reasonable best efforts to resolve such items. If Buyer and the Shareholders’ Representative are unable to reach
such agreement within ten days after receipt by the Shareholders’ Representative of such notice, the disputed items shall
be resolved by the Independent Accountant and any determination by the Independent Accountant shall be final. The Independent Accountant
shall resolve any disputed items within twenty days of having the item referred to it pursuant to such procedures as it may require.
If the Independent Accountant is unable to resolve any disputed items before the due date for such Tax Return, the Tax Return shall
be filed as prepared by the Shareholders’ Representative and then amended to reflect the Independent Accountant’s resolution.
The costs, fees and expenses of the Independent Accountant shall be borne equally by Buyer and Sellers. The preparation and filing
of any Tax Return of the Company that does not relate to a Pre-Closing Tax Period shall be exclusively within the control of Buyer.

 

    	33

    	 

    

 

Section
7.02       Termination of Existing Tax Sharing Agreements. Any and all existing Tax sharing agreements (whether
written or not) binding upon the Company shall be terminated as of the Closing Date. After such date none of the Company, Sellers
or any of Sellers’ Affiliates or their respective Representatives shall have any further rights or liabilities thereunder.

 

Section
7.03         Tax Indemnification. Sellers shall jointly and severally indemnify the Company, Buyer, and each Buyer
Indemnitee and hold them harmless from and against (a) any Loss attributable to any breach of or inaccuracy in any representation
or warranty made in Section 3.22; (b) any Loss attributable to any breach or violation of, or failure to fully perform, any covenant,
agreement, undertaking or obligation in Article VII; (c) all Taxes of the Company or relating to the business of the Company for
all Pre-Closing Tax Periods; (d) all Taxes of any member of an affiliated, consolidated, combined or unitary group of which the
Company (or any predecessor of the Company) is or was a member on or prior to the Closing Date by reason of a liability under Treasury
Regulation Section 1.1502-6 or any comparable provisions of foreign, state or local Law; and (e) any and all Taxes of any person
imposed on the Company arising under the principles of transferee or successor liability or by contract, relating to an event or
transaction occurring before the Closing Date, in each of the above cases, together with any out-of-pocket fees and expenses (including
attorneys’ and accountants’ fees) incurred in connection therewith. Sellers shall reimburse Buyer for any Taxes of
the Company that are the responsibility of Sellers pursuant to this Section 7.03 within ten Business Days after payment of such
Taxes by Buyer or the Company.

 

Section
7.04         Straddle Period. In the case of Taxes that are payable with respect to a taxable period that begins before
and ends after the Closing Date (each such period, a “Straddle Period”), the portion of any such Taxes that
are treated as Pre-Closing Taxes for purposes of this Agreement shall be:

 

(a)          in the case of Taxes (i) based upon,
or related to, income, receipts, profits, wages, capital or net worth, (ii) imposed in connection with the sale, transfer or assignment
of property, or (iii) required to be withheld, deemed equal to the amount which would be payable if the taxable year ended with
the Closing Date; and

 

(b)          in the case of other Taxes, deemed
to be the amount of such Taxes for the entire period multiplied by a fraction the numerator of which is the number of days in the
period ending on the Closing Date and the denominator of which is the number of days in the entire period.

 

Section
7.05         Allocation of Purchase Price. Following the
Closing, Buyer shall engage an independent valuation firm to allocate the Purchase Price and the Liabilities of the Company (plus
other relevant items) among the assets of the Company for all purposes (including Tax and financial accounting) and prepare an
allocation schedule (the “Allocation Schedule”). Buyer and Sellers agree to use the allocations set forth on
the Allocation Schedule for all Tax and accounting purposes.

 

    	34

    	 

    

 

Section
7.06        Contests. Buyer agrees to give written notice to the Shareholders’ Representative of the receipt
of any written notice by the Company, Buyer or any of Buyer’s Affiliates which involves the assertion of any claim, or the
commencement of any Action, in respect of which an indemnity may be sought by Buyer pursuant to this Article VII (a “Tax
Claim”); provided, that failure to comply with this provision shall not affect Buyer’s right to indemnification
hereunder. Buyer shall control the contest or resolution of any Tax Claim; provided, however, that Buyer shall obtain the prior
written consent of the Shareholders’ Representative (which consent shall not be unreasonably withheld or delayed) before
entering into any settlement of a claim or ceasing to defend such claim; and, provided further, that the Shareholders’ Representative
shall be entitled to participate in the defense of such claim and to employ counsel of his choice for such purpose, the fees and
expenses of which separate counsel shall be borne solely by Sellers.

 

Section
7.07        Cooperation and Exchange of Information. Sellers and Buyer shall provide each other with such cooperation
and information as either of them reasonably may request of the other in filing any Tax Return pursuant to this Article VII or
in connection with any audit or other proceeding in respect of Taxes of the Company. Such cooperation and information shall include
providing copies of relevant Tax Returns or portions thereof, together with accompanying schedules, related work papers and documents
relating to rulings or other determinations by tax authorities. Each of Sellers and Buyer shall retain all Tax Returns, schedules
and work papers, records and other documents in his, her or its possession relating to Tax matters of the Company for any taxable
period beginning before the Closing Date until the expiration of the statute of limitations of the taxable periods to which such
Tax Returns and other documents relate, without regard to extensions except to the extent notified by the other party in writing
of such extensions for the respective Tax periods. Prior to transferring, destroying or discarding any Tax Returns, schedules and
work papers, records and other documents in his, her or its possession relating to Tax matters of the Company for any taxable period
beginning before the Closing Date, Sellers or Buyer (as the case may be) shall provide the other party with reasonable written
notice and offer the other party the opportunity to take custody of such materials.

 

Section
7.08        Tax Treatment of Indemnification Payments. Any indemnification payments pursuant to this Article VII
shall be treated as an adjustment to the Purchase Price by the parties for Tax purposes, unless otherwise required by Law.

 

Section
7.09        Survival. Notwithstanding anything in this Agreement to the contrary, the provisions of Section 3.22
and this Article VII shall survive for the full period of all applicable statutes of limitations (giving effect to any waiver,
mitigation or extension thereof) plus 60 days.

 

Section
7.10        Overlap. To the extent that any obligation or responsibility pursuant to Article IX may overlap with
an obligation or responsibility pursuant to this Article VII, the provisions of this Article VII shall govern.

 

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ARTICLE VIII

Earn-Out Payments

 

Section
8.01         Earn-Out.

 

(a)          Earn-out Payments. As additional
consideration for the Shares, at such times as provided in Section 8.01(d), Buyer or, at the direction of Buyer, the Company or
another designee of Buyer, shall pay to Sellers, with respect to each Calculation Period within the Earn-out Period, an aggregate
amount, if any (each, an “Earn-out Payment”), equal to the lesser of (i) 22% of the Gross Profits for
such Calculation Period and (ii) the Pre-Tax Income for such Calculation Period. Notwithstanding the foregoing, the total Earn-out
Payments that Sellers shall be entitled to receive under this Article VIII shall not exceed, in the aggregate, $800,000.

 

(b)          Procedures Applicable to Determination
of the Earn-out Payments.

 

(i)          On or before the date which is 90 days
after the last day of each Calculation Period (each such date, an “Earn-out Calculation Delivery Date”), Buyer
shall prepare and deliver to the Shareholders’ Representative a written statement (in each case, an “Earn-out Calculation
Statement”) setting forth in reasonable detail its determination of Gross Profits and Pre-Tax Income for the applicable
Calculation Period and its calculation of the resulting Earn-out Payment (in each case, an “Earn-out Calculation”).

 

(ii)         The Shareholders’ Representative
shall have 10 days after receipt of the Earn-out Calculation Statement for each Calculation Period (in each case, the “Earn-out
Review Period”) to review the Earn-out Calculation Statement and the Earn-out Calculation set forth therein. During
the Earn-out Review Period, the Shareholders’ Representative and his accountants shall have the right to inspect the Company’s
books and records during normal business hours at the Company’s offices, upon reasonable prior notice and solely for purposes
reasonably related to the determinations of Gross Profits, Pre-Tax Income and the resulting Earn-out Payment. Prior to the expiration
of the Earn-out Review Period, the Shareholders’ Representative may object to the Earn-out Calculation set forth in the Earn-out
Calculation Statement for the applicable Calculation Period by delivering a written notice of objection (an “Earn-out
Calculation Objection Notice”) to Buyer. Any Earn-out Calculation Objection Notice shall specify the items in the applicable
Earn-out Calculation disputed by the Shareholders’ Representative and shall describe in reasonable detail the basis for such
objection, as well as the amount in dispute. If the Shareholders’ Representative fails to deliver an Earn-out Calculation
Objection Notice to Buyer prior to the expiration of the Earn-out Review Period, then the Earn-out Calculation set forth in the
Earn-out Calculation Statement shall be final and binding on Sellers. If the Shareholders’ Representative timely delivers
an Earn-out Calculation Objection Notice, Buyer and the Shareholders’ Representative shall negotiate in good faith to resolve
the disputed items and agree upon the resulting amount of the Gross Profit, Pre-Tax Income and the Earn-out Payment for the applicable
Calculation Period. If Buyer and the Shareholders’ Representative are unable to reach agreement within 15 days after such
an Earn-out Calculation Objection Notice has been given, all unresolved disputed items shall be promptly referred to the Independent
Accountant. The Independent Accountant shall be directed to render a written report on the unresolved disputed items with respect
to the applicable Earn-out Calculation as promptly as practicable, but in no event greater than 30 days after such submission to
the Independent Accountant, and to resolve only those unresolved disputed items set forth in the Earn-out Calculation Objection
Notice. If unresolved disputed items are submitted to the Independent Accountant, Buyer and the Shareholders’ Representative
shall each furnish to the Independent Accountant such work papers, schedules and other documents and information relating to the
unresolved disputed items as the Independent Accountant may reasonably request. The Independent Accountant shall resolve the disputed
items based solely on the applicable definitions and other terms in this Agreement and the presentations by Buyer and the Shareholders’
Representative, and not by independent review. The resolution of the dispute and the calculation of Gross Profit and Pre-Tax Income
that is the subject of the applicable Earn-out Calculation Objection Notice by the Independent Accountant shall be final and binding
on the Parties. The fees and expenses of the Independent Accountant shall be borne by Sellers and Buyer in proportion to the amounts
by which their respective calculations of Gross Profit and Pre-Tax Income differ from Gross Profit and Pre-Tax Income as finally
determined by the Independent Accountant.

 

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(c)          Independence of Earn-out Payments.
Subject to the last sentence of Section 8.01(a), Buyer’s obligation to pay each of the Earn-out Payments to Sellers in accordance
with Section 8.01(a) is an independent obligation of Buyer and is not otherwise conditioned or contingent upon the satisfaction
of any conditions precedent to any preceding or subsequent Earn-out Payment and the obligation to pay an Earn-out Payment to Sellers
shall not obligate Buyer to pay any preceding or subsequent Earn-out Payment.

 

(d)          Timing of Payment of Earn-out
Payments. Subject to Section 8.01(g), any Earn-out Payment that Buyer is required to pay pursuant to Section 8.01(a) hereof
shall be paid in full no later than five Business Days following the date upon which the determination of Gross Profit and Pre-Tax
Income for the applicable Calculation Period becomes final and binding upon the Parties as provided in Section 8.01(b)(ii) (including
any final resolution of any dispute raised by the Shareholders’ Representative in an Earn-out Calculation Objection Notice).
Buyer shall pay to each Seller his or her pro rata portion of the applicable Earn-out Payment (based on such Seller’s ownership
of Shares as set forth on Schedule 1) in cash by wire transfer of immediately available funds to such Seller’s Account.

 

(e)          Acceleration of Earn-out Payment.
In the event that the Employment Agreement is terminated by Buyer during the Term (as that term is defined in Section 3 of the
Employment Agreement) for any reason other than “Cause” (as that term is defined Section 7 of the Employment Agreement),
the maximum amount of the Earn-out Payment ($800,000) shall be deemed to have been earned, and the Sellers shall be entitled to
receive a cash payment equal to $800,000, less the amount of the Earn-out Payment that Buyer has paid through the date of the termination
of the Employment Agreement. The acceleration of the Earn-out Payment under this Section 8.01(e) shall not apply if Ralph Palumbo
voluntarily resigns, or if the Employment Agreement is terminated because of the death of Ralph Palumbo or his “Disability”
(as that term is defined in Section 7 of the Employment Agreement). Subject to Section 8.01(g), the accelerated Earn-out Payment
shall be paid in full no later than ten Business Days following the termination of the Employment Agreement. Buyer shall pay to
each Seller his or her pro rata portion of the applicable Earn-out Payment (based on such Seller’s ownership of Shares as
set forth on Schedule 1) in cash by wire transfer of immediately available funds to such Seller’s Account.

 

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(f)          Post-closing Operation of the
Company. Subject to the terms of this Agreement, subsequent to the Closing, Buyer shall have sole discretion with regard to
all matters relating to the operation of the Company; provided, that Buyer shall not, directly or indirectly, take any actions
in bad faith that would have the purpose of avoiding or reducing any of the Earn-out Payments hereunder. Notwithstanding the foregoing,
Buyer has no obligation to operate the Company in order to achieve any Earn-out Payment or to maximize the amount of any Earn-out
Payment.

 

(g)          Set-off. Buyer shall withhold
and set off against any amount otherwise due to be paid pursuant to this Section 8.01 the amount of any Losses to which any Buyer
Indemnitee may be entitled under Article IX of this Agreement.

 

(h)          No Security. The parties hereto
understand and agree that (i) the contingent rights to receive any Earn-out Payment shall not be represented by any form of certificate
or other instrument, are not transferable, except by operation of Laws relating to descent and distribution, divorce and community
property, and do not constitute an equity or ownership interest in Buyer or the Company, (ii) no Seller shall have any rights as
a security holder of Buyer or the Company as a result of such Seller’s contingent right to receive any Earn-out Payment hereunder,
and (iii) no interest is payable with respect to any Earn-out Payment.

 

ARTICLE IX

Indemnification

 

Section
9.01        Survival. Subject to the limitations and other provisions of this Agreement, the representations and
warranties contained herein (other than any representations or warranties contained in Section 3.22 which are subject to Article
VII) shall survive the Closing and shall remain in full force and effect until the date that is 36 months from the Closing Date;
provided, that the representations and warranties in (a) Section 3.01, Section 3.03, Section 3.24, Article IV and Section 5.01
shall survive indefinitely, (b) Section 3.19 shall survive for a period of five years after the Closing, and (c) Section 3.20 shall
survive for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof)
plus 60 days. All covenants and agreements of the parties contained herein (other than any covenants or agreements contained in
Article VII which are subject to Article VII) shall survive the Closing indefinitely or for the period explicitly specified therein.
Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time)
and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival
period shall not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive
until finally resolved.

 

Section
9.02         Indemnification by Sellers. Subject to the other terms and conditions of this Article IX, each Seller
shall jointly and severally indemnify and defend each of Buyer and its Affiliates (including the Company) and their respective
Representatives (collectively, the “Buyer Indemnitees”) against, and shall hold each of them harmless from and
against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Buyer
Indemnitees based upon, arising out of, with respect to or by reason of:

 

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(a)          any inaccuracy in or breach of any
of the representations or warranties of such Seller contained in this Agreement or in any certificate or instrument delivered by
or on behalf of such Seller pursuant to this Agreement (other than in respect of Section 3.22, it being understood that the sole
remedy for any such inaccuracy in or breach thereof shall be pursuant to Article VII), as of the date such representation or warranty
was made or as if such representation or warranty was made on and as of the Closing Date (except for representations and warranties
that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified
date);

 

(b)          any breach or non-fulfillment of
any covenant, agreement or obligation to be performed by such Seller pursuant to this Agreement (other than any breach or violation
of, or failure to fully perform, any covenant, agreement, undertaking or obligation in Article VII, it being understood that the
sole remedy for any such breach, violation or failure shall be pursuant to Article VII); or

 

(c)          without limiting the generality of
the indemnification obligations set forth above in Section 9.02(a), any retroactive adjustments or corrections made by Buyer or
the Company to the Financial Statements, provided that such adjustments or corrections are made on or prior to the one-year anniversary
of the Closing Date.

 

Section
9.03        Indemnification By Buyer. Subject to the other terms and conditions of this Article IX, Buyer shall indemnify
and defend each Seller and his or her Affiliates (collectively, the “Seller Indemnitees”) against, and shall
hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained
by, or imposed upon, the Seller Indemnitees based upon, arising out of, with respect to or by reason of:

 

(a)          any inaccuracy in or breach of any
of the representations or warranties of Buyer contained in this Agreement or in any certificate or instrument delivered by or on
behalf of Buyer pursuant to this Agreement, as of the date such representation or warranty was made or as if such representation
or warranty was made on and as of the Closing Date (except for representations and warranties that expressly relate to a specified
date, the inaccuracy in or breach of which will be determined with reference to such specified date); or

 

(b)          any breach or non-fulfillment of
any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement (other than Article VII, it being understood
that the sole remedy for any such breach thereof shall be pursuant to Article VII).

 

Section
9.04        Certain Limitations. The indemnification provided for in Section 9.02 and Section 9.03 shall be subject
to the following limitations:

 

(a)         Sellers shall not be liable to the
Buyer Indemnitees for indemnification under Section 9.02(a) or Section 9.02(c) until the aggregate amount of all Losses in respect
of indemnification under Section 9.02(a) and Section 9.02(c) exceeds $25,000 (the “Basket”), in which event
Sellers shall be required to pay or be liable for all such Losses from the first dollar.

 

(b)          Buyer shall not be liable to the
Seller Indemnitees for indemnification under Section 9.03(a) until the aggregate amount of all Losses in respect of indemnification
under Section 9.03(a) exceeds the Basket, in which event Buyer shall be required to pay or be liable for all such Losses from the
first dollar.

 

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(c)          For purposes of this Article IX,
any inaccuracy in or breach of any representation or warranty shall be determined without regard to any materiality, Material Adverse
Effect or other similar qualification contained in or otherwise applicable to such representation or warranty.

 

Section
9.05        Indemnification Procedures. The party making a claim under this Article IX is referred to as the “Indemnified
Party”, and the party against whom such claims are asserted under this Article VIII is referred to as the “Indemnifying
Party”.

 

(a)          Third Party Claims. If any
Indemnified Party receives notice of the assertion or commencement of any Action made or brought by any Person who is not a party
to this Agreement or an Affiliate of a party to this Agreement or a Representative of the foregoing (a “Third Party Claim”)
against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification under this
Agreement, the Indemnified Party shall give the Indemnifying Party reasonably prompt written notice thereof, but in any event not
later than 30 calendar days after receipt of such notice of such Third Party Claim. The failure to give such prompt written notice
shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying
Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Third Party
Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount,
if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall
have the right to participate in, or by giving written notice to the Indemnified Party, to assume the defense of any Third Party
Claim at the Indemnifying Party’s expense and by the Indemnifying Party’s own counsel, and the Indemnified Party shall
cooperate in good faith in such defense; provided, that if the Indemnifying Party is a Seller, such Indemnifying
Party shall not have the right to defend or direct the defense of any such Third Party Claim that (x) is asserted directly by or
on behalf of a Person that is a supplier or customer of the Company, or (y) seeks an injunction or other equitable relief against
the Indemnified Party. In the event that the Indemnifying Party assumes the defense of any Third Party Claim, subject to Section
9.05(b), it shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims
pertaining to any such Third Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the
right to participate in the defense of any Third Party Claim with counsel selected by it subject to the Indemnifying Party’s
right to control the defense thereof. The fees and disbursements of such counsel shall be at the expense of the Indemnified Party;
provided, that if in the reasonable opinion of counsel to the Indemnified Party, (A) there are legal defenses available
to an Indemnified Party that are different from or additional to those available to the Indemnifying Party; or (B) there exists
a conflict of interest between the Indemnifying Party and the Indemnified Party that cannot be waived, the Indemnifying Party shall
be liable for the reasonable fees and expenses of counsel to the Indemnified Party in each jurisdiction for which the Indemnified
Party determines counsel is required. If the Indemnifying Party elects not to compromise or defend such Third Party Claim, fails
to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement, or fails to diligently
prosecute the defense of such Third Party Claim, the Indemnified Party may, subject to Section 9.05(b), pay, compromise, defend
such Third Party Claim and seek indemnification for any and all Losses based upon, arising from or relating to such Third Party
Claim. Sellers and Buyer shall cooperate with each other in all reasonable respects in connection with the defense of any Third
Party Claim, including making available (subject to the provisions of Section 6.01) records relating to such Third Party Claim
and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, management
employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such Third Party Claim.

 

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(b)         Settlement of Third Party Claims.
Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third Party
Claim without the prior written consent of the Indemnified Party, except as provided in this Section 9.05(b). If a firm offer is
made to settle a Third Party Claim without leading to liability or the creation of a financial or other obligation on the part
of the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified Party from all liabilities
and obligations in connection with such Third Party Claim and the Indemnifying Party desires to accept and agree to such offer,
the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If the Indemnified Party fails to consent
to such firm offer within ten days after its receipt of such notice, the Indemnified Party may continue to contest or defend such
Third Party Claim and in such event, the maximum liability of the Indemnifying Party as to such Third Party Claim shall not exceed
the amount of such settlement offer. If the Indemnified Party fails to consent to such firm offer and also fails to assume defense
of such Third Party Claim, the Indemnifying Party may settle the Third Party Claim upon the terms set forth in such firm offer
to settle such Third Party Claim. If the Indemnified Party has assumed the defense pursuant to Section 9.05(a), it shall not agree
to any settlement without the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).

 

(c)          Direct Claims. Any Action
by an Indemnified Party on account of a Loss which does not result from a Third Party Claim (a “Direct Claim”)
shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof, but in any event
not later than 30 days after the Indemnified Party becomes aware of such Direct Claim. The failure to give such prompt written
notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that
the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe
the Direct Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated
amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party
shall have 30 days after its receipt of such notice to respond in writing to such Direct Claim. The Indemnified Party shall allow
the Indemnifying Party and its professional advisors to investigate the matter or circumstance alleged to give rise to the Direct
Claim, and whether and to what extent any amount is payable in respect of the Direct Claim and the Indemnified Party shall assist
the Indemnifying Party’s investigation by giving such information and assistance (including access to the Company’s
premises and personnel and the right to examine and copy any accounts, documents or records) as the Indemnifying Party or any of
its professional advisors may reasonably request. If the Indemnifying Party does not so respond within such 30 day period, the
Indemnifying Party shall be deemed to have rejected such claim, in which case the Indemnified Party shall be free to pursue such
remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this Agreement.

 

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(d)          Tax Claims. Notwithstanding
any other provision of this Agreement, the control of any claim, assertion, event or proceeding in respect of Taxes of the Company
(including, but not limited to, any such claim in respect of a breach of the representations and warranties in Section 3.22 hereof
or any breach or violation of or failure to fully perform any covenant, agreement, undertaking or obligation in Article VII) shall
be governed exclusively by Article VII hereof.

 

Section
9.06        Payments. Once a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant
to this Article IX, the Indemnifying Party shall satisfy its obligations within 15 Business Days of such final, non-appealable
adjudication by wire transfer of immediately available funds (provided that any obligations owing to Buyer shall be satisfied first
by offsetting against the amounts, if any then due and owing to Sellers pursuant to Article VIII). The Parties agree that should
an Indemnifying Party not make full payment of any such obligations within such 15 Business Day period, any amount payable shall
accrue interest from and including the date of agreement of the Indemnifying Party or final, non-appealable adjudication to include
the date such payment has been made at a rate per annum equal to 5%. Such interest shall be calculated daily on the basis of a
365 day year and the actual number of days elapsed.

 

Section
9.07       Tax Treatment of Indemnification Payments. All indemnification payments made under this Agreement shall
be treated by the Parties as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.

 

Section
9.08        Effect of Investigation. The representations, warranties and covenants of the Indemnifying Party, and
the Indemnified Party’s right to indemnification with respect thereto, shall not be affected or deemed waived by reason of
any investigation made by or on behalf of the Indemnified Party (including by any of its Representatives) or by reason of the fact
that the Indemnified Party or any of its Representatives knew or should have known that any such representation or warranty is,
was or might be inaccurate.

 

ARTICLE X

Shareholders’ Representative

 

(a)          Each Seller, by executing this Agreement,
makes, constitutes and appoints the Shareholders’ Representative such Person’s true, lawful and exclusive attorney-in-fact
for and in such Person’s name, place, and stead and for its use and benefit, to prepare, execute, certify, acknowledge, swear
to, file, deliver, or record any and all agreements, instruments or other documents, and to take any and all actions, that are
within the scope and authority of the Shareholders’ Representative provided for in this Section 10.01. The grant of authority
provided for in this Section 10.01 is coupled with an interest and is being granted, in part, as an inducement to the Parties to
enter into this Agreement and shall be irrevocable and survive the death, incompetency, bankruptcy or liquidation of any Seller
and shall be binding on any successor thereto.

 

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(b)          By virtue of his or her execution
of this Agreement, each Seller shall be deemed to have agreed to appoint the Shareholders’ Representative as his or her agent
and attorney-in-fact for and on behalf of the Sellers in connection with, and to facilitate the consummation of the transactions
contemplated by, this Agreement, and in connection with the activities to be performed on behalf of the Sellers under this Agreement,
for the purposes and with the powers and authority hereinafter set forth in this Article X, which shall include the full and exclusive
power and authority:

 

(i)          to take such actions and to execute
and deliver such amendments, modifications, waivers and consents in connection with this Agreement and the consummation of the
transactions contemplated hereby as the Shareholders’ Representative, in his reasonable discretion, may deem necessary or
desirable to give effect to the intentions of this Agreement;

 

(ii)          to receive any amounts due to
Sellers under this Agreement, and to disburse any such funds to Sellers;

 

(iii)         as the agent of the Sellers, to enforce
and protect the rights and interests of the Sellers and to enforce and protect the rights and interests of the Shareholders’
Representative arising out of or under or in any manner relating to this Agreement and, in connection therewith, to: (A) employ
such agents, consultants and professionals, to delegate authority to its agents, to take such actions and to execute such documents
on behalf of the Sellers in connection with this Agreement as the Shareholders’ Representative, in his reasonable discretion,
deems to be in the interest of the Sellers; (B) assert or institute any Action; (C) investigate, defend, contest or litigate
any Action initiated by Buyer or the Company, or any other Person, against the Shareholders’ Representative, and receive
process on behalf of any or all Sellers in any such Action and compromise or settle on such terms as the Shareholders’ Representative
shall determine to be appropriate, give receipts, releases and discharges on behalf of all of the Sellers with respect to any such
Action; (D) file any proofs, debts, claims and petitions as the Shareholders’ Representative may deem advisable or necessary;
(E) settle or compromise any claims asserted under this Agreement; (F) assume, on behalf of all of the Sellers, the defense
of any claim that is the basis of any claim asserted under this Agreement; (G) defend, settle and authorize payments to any
indemnified parties on behalf of the Sellers in connection with any claim for indemnification made by any indemnified parties pursuant
to Article VII or Article IX; and (H) file and prosecute appeals from any decision, judgment or award rendered in any of the
foregoing claims or Action;

 

(iv)         to enforce payment of any other amounts
payable to the Sellers, in each case on behalf of the Sellers, in the name of the Shareholders’ Representative;

 

(v)          to waive or refrain from enforcing
any right of the Sellers or any of them or of the Shareholders’ Representative arising out of or under or in any manner relating
to this Agreement; and

 

(vi)         to make, execute, acknowledge and
deliver all such other agreements, guarantees, orders, receipts, endorsements, elections, notices, requests, instructions, certificates,
stock powers, letters and other writings, and, in general, to do any and all things and to take any and all action that the Shareholders’
Representative, in his good faith judgment, may consider necessary or proper or convenient in connection with or to carry out the
activities described in paragraphs (i) through (v) above and the transactions contemplated by this Agreement.

 

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(c)         All decisions and actions by the
Shareholders’ Representative shall be binding upon all of the Sellers and no Seller shall have the right to object, dissent,
protest or otherwise contest the same.

 

(d)         In the event the Shareholders’
Representative becomes unable to perform his responsibilities hereunder or resigns from such position, the Sellers shall select
another representative to fill the vacancy of the Shareholders’ Representative (provided that any such replacement shall
be approved by Buyer), and such substituted representative shall be deemed to be a Shareholders’ Representative for all purposes
under this Agreement.

 

(e)         Buyer and the Company shall be entitled
to rely exclusively upon the communications of the Shareholders’ Representative relating to the foregoing as the communications
of Sellers. None of Buyer or the Company shall be held liable or accountable in any manner for any act or omission of the Shareholders’
Representative in such capacity.

 

(f)          Buyer and the Company shall be entitled
to unconditionally assume that any action taken or omitted, or any document executed by, Ralph Palumbo, purporting to act as the
Shareholders’ Representative under or pursuant to this Agreement has been unconditionally authorized by Sellers to be taken,
omitted to be taken, or executed on their behalf so that they will be legally bound thereby, and no Seller shall institute any
claim, lawsuit, arbitration or other proceeding against Buyer, the Company or any of their respective Affiliates alleging that
Ralph Palumbo did not have the authority to act as the Shareholders’ Representative on behalf of Sellers in connection with
any such action, omission or execution. No modification or revocation of the power of attorney granted by the Sellers herein to
Ralph Palumbo to serve as the Shareholders’ Representative shall be effective as against Buyer until Buyer has received a
document signed by all Sellers effecting said modification or revocation. Buyer, the Company and their respective Affiliates are
hereby relieved from any liability to any Person for any acts done by the Shareholders’ Representative and any acts done
by Buyer or the Company in accordance with any decision, act, consent or instruction of the Shareholders’ Representative.

 

ARTICLE XI

Miscellaneous

 

Section
11.01     Expenses. Except as otherwise expressly provided
herein, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants,
incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such
costs and expenses, whether or not the Closing shall have occurred. Without limiting the generality of the foregoing, the Sellers
(and not the Company) shall pay any fees or commissions payable to Generational Equity, LLC or any other broker/finder representing
Sellers and/or the Company in the transactions contemplated hereby.

 

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Section
11.02          Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder
shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b)
when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by
facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient,
and on the next Business Day if sent after normal business hours of the recipient or (d) on the third day after the date mailed,
by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective
parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance
with this Section 11.02):

 

	If to a Seller:	
        Ralph Palumbo

        c/o Rel-Tech Electronics, Inc.,

        215 Pepes Farm Road,

        Milford  CT 06460-3671

        

E-mail: RPalumbo@rel-tech.com 

	 	 
	with a copy to:	
        Michael P. A. Williams, Esq.

        Harlow, Adams & Friedman, P.C.,

        One New Haven Avenue,

        Milford  CT 06460-3398

        

        Facsimile: (203) 878-9568

        E-mail: mpaw@quidproquo.com 

	 	 
	If to Buyer:	
        RF Industries, Ltd.

        7610 Miramar Road,

        Building 6000

        San Diego, CA 92126

        Attention: Johnny Walker

        Facsimile: (858) 549-6345

        E-mail: jwalker@rfindustries.com

        Attention: President/CEO

	 	 
	with a copy to:	
        TroyGould PC

        1801 Century Park East, Suite 1600

        Los Angeles CA 90067

        Facsimile:      (310) 201-4746

        E-mail:            ibenko@troygould.com

        Attention:     Istvan Benko

	 	 

 

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Section
11.03     Interpretation. For purposes of this Agreement, (a) the words “include,” “includes”
and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or”
is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and
“hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles,
Sections, Disclosure Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to,
this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended,
supplemented and modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute
as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement
shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting
an instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed
with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

 

Section
11.04     Headings. The headings in this Agreement are for reference only and shall not affect the interpretation
of this Agreement.

 

Section
11.05     Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable
in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement
or invalidate or render unenforceable such term or provision in any other jurisdiction. Except as provided in Section 6.02(e),
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.

 

Section
11.06      Entire Agreement. This Agreement
constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein, and supersedes all
prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. In the event
of any inconsistency between the statements in the body of this Agreement and those in the Exhibits and Disclosure Schedules (other
than an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will
control.

 

Section
11.07      Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of the Parties and their respective successors and permitted assigns. No Party may assign his, her
or its rights or obligations hereunder without the prior written consent of the other Parties, which consent shall not be unreasonably
withheld or delayed.

 

Section
11.08       No Third-party Beneficiaries. Except as provided in Section 7.03 and Article IX, this
Agreement is for the sole benefit of the Parties and their respective successors and permitted assigns and nothing herein, express
or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of
any nature whatsoever under or by reason of this Agreement.

 

Section
11.09      Amendment and Modification; Waiver. This Agreement may only be amended, modified or supplemented
by an agreement in writing signed by Buyer, the Company and the Shareholders’ Representative. No waiver by any Party of any
of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the Party so waiving. No waiver
by any Party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by
such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure
to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed
as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

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Section
11.10       Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)          This Agreement shall be governed
by and construed in accordance with the internal laws of the State of California applicable to parties residing in California,
without regard to applicable principles of conflicts of law. Each of the Parties hereto irrevocably consents to the exclusive jurisdiction
of any court located within California, in connection with any matter based upon or arising out of this Agreement or the matters
contemplated hereby and covenants not to assert or plead any objection which he, she or it might otherwise have to such jurisdiction
and such process. Any process in any action or proceeding commenced in such courts may be served upon the applicable Parties by
mailing the same by certified mail, return receipt requested, to the Party at his, her or its address set forth in Section 11.02.
Any such service shall be deemed to have the same force and effect as personal service within the State of California.

 

(b)          Each Party acknowledges and agrees
that any controversy which may arise under this Agreement is likely to involve complicated and difficult issues and, therefore,
each such Party irrevocably and unconditionally waives any right he, she or it may have to a trial by jury in respect of any legal
action arising out of or relating to this Agreement or the transactions contemplated hereby. Each Party to this Agreement certifies
and acknowledges that (a) no representative of any other Party has represented, expressly or otherwise, that such other Party would
not seek to enforce the foregoing waiver in the event of a legal action, (b) such Party has considered the implications of this
waiver, (c) such Party makes this waiver voluntarily, and (d) such Party has been induced to enter into this Agreement by, among
other things, the mutual waivers and certifications in this Section 11.10(b).

 

Section
11.11      Specific Performance. The Parties agree that irreparable damage would occur if any provision
of this Agreement were not performed in accordance with the terms hereof and that the Parties shall be entitled to specific performance
of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.

 

Section
11.12      Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered
by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an
original signed copy of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

    	47

    	 

    

 

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

 

	 	/s/ Wilfred LeBlanc
	 	Wilfred LeBlanc
	 	 
	 	/s/ Rosemary T. LeBlanc
	 	Rosemary T. LeBlanc
	 	 
	 	/s/ Ralph Palumbo
	 	Ralph Palumbo
	 	 
	 	/s/ Noreen C. Palumbo
	 	Noreen C. Palumbo
	 	 
	 	REL-TECH ELECTRONICS, INC.
	 	 	 
	 	By:	/s/ Rosemary T. LeBlanc
	 	 	Name: Rosemary T. LeBlanc
	 	 	Title: President
	 	 
	 	RF INDUSTRIES, LTD.
	 	 	 
	 	By:	/s/ Mark Turfler
	 	 	Name:     Mark Turfler
	 	 	Title:       Chief Financial Officer

 

 

    	48

    	 

    

 

Schedule 1

 

Sellers’ Information

 

	Seller	 	Address/Social

Security Number	 	Wire Transfer

Instructions	 	Number of

Shares of

the

Company

Owned
	Wilfred D. LeBlanc, Jr. and Rosemary T. LeBlanc, JTROS	 	
        24 Manor House Ln.

        Milford CT 06461
	 	Harlow, Adams & Friedman, Trustee	 	125.5
	 	 	 	 	 	 	 
	Ralph Palumbo and Noreen C. Palumbo, JTROS	 	
        15 Hillcrest Ave.

        Milford, CT 06460
	 	Harlow, Adams & Friedman, Trustee	 	104.5

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