Document:

EXHIBIT 10.5

 

EXECUTION VERSION

 

THE
WARRANTS AND THE SECURITIES REPRESENTED BY THE WARRANTS HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED PURSUANT TO THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND SUCH SECURITIES MAY NOT
BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS THEY ARE REGISTERED AND QUALIFIED IN ACCORDANCE WITH THE SECURITIES ACT
AND ANY APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION AND QUALIFICATION SHALL APPLY.

 

This WARRANT AGREEMENT (this “Agreement”)
dated as of April 16, 2022 (the “Effective Date”), is entered into by and between Redbox Entertainment Inc., a
Delaware corporation, as issuer (the “Company”) and HPS Lenders (such entities, or their successors or permitted assignees,
each a “Holder”, and collectively, the “Holders”).

 

W I T N E S S E T H

 

WHEREAS, on April 15, 2022, Redwood Intermediate,
LLC, a subsidiary of the Company, and its subsidiaries Redbox Automated Retail, LLC, as Borrower (the “Borrower”) and
Redbox Incentives, LLC, as Guarantor, entered into that certain Incremental Assumption and Amendment Agreement No. 6 (the “Sixth
Incremental Amendment Agreement”) to the Credit Agreement originally dated October 20, 2017 (as amended from time to time
prior to the date hereof, the “Existing Credit Agreement”).

 

WHEREAS, pursuant to the Sixth Incremental Amendment
Agreement, the Borrower requested that the Existing Credit Agreement be amended to permit, among other things, the establishment of the
Sixth Amendment Incremental Revolving Commitments (as defined in the Sixth Incremental Amendment Agreement) in the aggregate principal
amount of $50,000,000.

 

WHEREAS, as a material inducement and partial consideration
to make certain amendments to the Existing Credit Agreement (as amended by the Sixth Incremental Amendment Agreement, the “Amended
Credit Agreement”), the Company has agreed to issue on the Effective Date to the Holders certain warrants (the “Warrants”),
that upon exercise initially entitle the Holders thereof to purchase, in the aggregate, up to 11,416,700 shares (the “Shares”)
of Class A common stock of the Company, par value $0.0001 per share (“Common Stock”), at the Exercise Price (as
defined below), on the terms and conditions and subject to the adjustments provided for in this Agreement.

 

WHEREAS, the Company desires to enter into this Agreement
to set forth the terms and conditions of the Warrants and the rights of the Holders thereof.

 

    

    

    

 

NOW, THEREFORE, in consideration of the premises
and mutual agreements herein set forth, the parties hereto agree as follows:

 

SECTION 1.     Certain
Defined Terms

 

Whenever
used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the meanings specified
in this Section.

 

“Affiliate”
means, as applied to any Person, any other Person directly or indirectly controlling, controlled by or under direct or indirect
common control with, such Person. For purposes of this definition, “control” (including with correlative meanings, the terms
 “controlling,” “controlled by” and “under common control with”), as applied to any Person, shall mean
the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise.

 

“Agreement” has the meaning specified
in the preamble hereof.

 

“Board” means the board of directors
of the Company.

 

“Business Day” means any date
other than a Saturday or a Sunday or a day on which commercial banking institutions in New York City, New York are authorized or required
by law to be closed.

 

“Cashless Exercise” has the meaning
specified in Section 5(c)(ii) hereof.

 

“Common Stock” has the meaning
specified in the preamble hereof.

 

“Company” has the meaning specified
in the preamble hereof.

 

“Effective
Date” has the meaning specified in the preamble hereof.

 

“Equity Interests” means, together,
the Company’s outstanding shares of Common Stock, and outstanding shares of Class B common stock, par value $0.0001.

 

“Exchange Act” means the Securities
Exchange Act of 1938, as amended.

 

“Exercise Price” means $0.0001,
subject to adjustment as provided in Section 6 hereof.

 

“Expiration Date” has the meaning
specified in Section 5(a) hereof.

 

“Holder”
has the meaning specified in the recitals hereof.

 

“Market
Price” means with respect to Common Stock or any Other Security (x) if the security is not listed or quoted on the
NASDAQ Global Market, New York Stock Exchange, or a U.S. national or regional securities exchange, the average of the reported closing
bid and asked prices of such security on such dates in the over-the-counter market or a comparable system as shown by a system of automated
dissemination of quotations of securities prices then in common use comparable to the National Association of Securities Dealers, Inc.
Automated Quotations System; provided, however, that if there is otherwise no established trading market for such security,
then “Market Price” means the value of such Common Stock or Other Security as determined in good faith by the Board or (y) if
the security is listed or quoted on the NASDAQ Global Market, New York Stock Exchange, or a U.S. national or regional securities exchange,
the arithmetic average of the VWAP of a share or single unit of such securities for the last five trading days on which such security
traded (or such lesser number of trading days as such security has been listed, quoted or traded) immediately preceding the date of measurement.

 

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“Options” means any warrants or
other rights or options to subscribe for or purchase Common Stock.

 

“Other
Securities” or “Other Security” means any stock (other than Common Stock) and other securities of the Company
or any other Person that the Holder at any time shall be entitled to receive or shall have received, upon the exercise of the Warrants,
in lieu of or in addition to Common Stock, or that at any time shall be issuable or shall have been issued in exchange for or in replacement
of Common Stock or Other Securities.

 

“Person” means any individual,
corporation, limited liability company, partnership, firm, joint venture, association, joint-stock company, trust or other entity.

 

“Securities
Act” has the meaning specified in the preamble hereof.

 

“Shares” has the meaning specified
in the recitals hereof, as may be adjusted in accordance with Section 6 hereof.

 

“Stockholders Agreement” means
the Stockholders Agreement of the Company, dated as of October 22, 2021, among the Company and the stockholders party thereto.

 

“Valuation
Firm” has the meaning specified in Section 14(a) hereof.

 

“VWAP” means for any trading day,
the price for securities (including Shares) determined by the daily volume weighted average price per unit of securities for such trading
day on the NASDAQ Global Market or New York Stock Exchange, as the case may be, in each case, for the regular trading session (including
any extensions thereof, without regard to pre-open or after hours trading outside of such regular trading session), or if such securities
are not listed or quoted on the NASDAQ Global Market, New York Stock Exchange, as reported by the principal U.S. national or regional
securities exchange on which such securities are then listed or quoted, whichever is applicable, as published by Bloomberg at 4:15 p.m.,
New York City time (or 15 minutes following the end of any extension of the regular trading session), on such trading day.

 

“Warrant Register” has the meaning
specified in Section 2(a) hereof.

 

“Warrant Shares” has the meaning
specified in Section 3(a) hereof.

 

“Warrants” has the meaning specified
in the recitals hereof.

 

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SECTION 2.     Registration.

  

(a)            Warrant
Register. The Company shall maintain books (the “Warrant Register”) for the registration of original issuance and
the registration of transfer of the Warrants. Upon the initial issuance of the Warrants in book entry form, the Company shall issue and
register the Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance with instructions
delivered to the Company by the Holder.

 

(b)            Registered
Holder. Prior to due presentment for registration of transfer of any Warrant, the Company may deem and treat the person in whose name
such Warrant is registered in the Warrant Register (the “Registered Holder”) as the absolute owner of such Warrant
and of each Warrant represented thereby (notwithstanding any notation of ownership or other writing on a Physical Certificate made by
anyone other than the Company), for the purpose of any exercise thereof, and for all other purposes, and the Company shall not be affected
by any notice to the contrary.

 

SECTION 3.     Issuance
of Warrants; Form, Execution and Delivery.

 

(a)            Issuance
of Warrants. The Company hereby issues and delivers the Warrants in the amounts and to the recipients specified in Schedule 1
hereto. Each Warrant entitles the Holder, upon proper exercise and payment of the Exercise Price, to receive from the Company, subject
to adjustment as provided herein, one duly authorized and validly issued share of Common Stock. The Shares (as provided pursuant to Section 6
hereof) and/or Other Securities deliverable upon proper exercise of the Warrants are referred to herein as the “Warrant Shares”.
The number of Warrant Shares and the Exercise Price are subject to adjustment as provided herein, and all references to “Warrant
Shares” and “Exercise Price” herein shall be deemed to include any such adjustment or series of adjustments.

 

(b)            Form of
Warrant. Each Warrant shall be issued in registered form only, and, if a physical certificate (a “Physical Certificate”)
is issued, shall be in substantially the form of Exhibit A hereto, the provisions of which are incorporated herein and shall
be signed by, or bear the facsimile signature of, the Chairman of the Board, Chief Executive Officer, Chief Financial Officer, Chief Legal
Officer, Secretary or other principal officer of the Company. In the event the person whose facsimile signature has been placed upon any
Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued, it may be issued
with the same effect as if he or she had not ceased to be such at the date of issuance. All of the Warrants shall initially be represented
by one (1) or more book-entry certificates (each, a “Book-Entry Warrant Certificate”).

 

SECTION 4.     Transfer
or Exchange. Each Holder may not sell, transfer, pledge, assign, encumber or otherwise dispose of all or any Warrant (including through
the grant of participation interests) without the Company’s express written consent, except that the Warrants and the rights hereunder
may be assigned or otherwise transferred by the Holder thereof to any one or more of its Affiliates without the Company’s consent
so long as the Representations, Warranties and Covenants of the Holder set forth in Section 7 herein are true and correct with respect
to the transferee Affiliate at and as of the date of such transfer. Subject to the conditions set forth in this Section 4, the Company
shall from time to time, update Schedule 1 hereto and the Warrant Register to appropriately reflect any changes in ownership made pursuant
to this Section 4.

 

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SECTION 5.     Duration
and Exercise of Warrants.

 

(a)            Duration
of Warrants. A Warrant may be exercised at the election of the Holder at any time and from time to time only during the period (the
 “Exercise Period”) commencing on the Signing Deadline Date (as defined in the Amended Credit Agreement) if the Signing
Event (as defined in the Amended Credit Agreement) shall have not occurred by the Signing Deadline Date and terminating at 5:00 p.m.,
New York City time on the date that is the five year anniversary of the Signing Date Deadline, provided that if such date is not a Business
Day, on the next Business Day (the “Expiration Date”). Each outstanding Warrant not exercised on or before the Expiration
Date shall become void, and all rights thereunder and all rights in respect thereof under this Agreement shall cease at 5:00 p.m. New
York City time on the Expiration Date. Furthermore, in the event the Signing Event shall occur by the Signing Deadline Date, each outstanding
Warrant shall become void, and all rights and all rights thereunder and all rights in respect thereof under this Agreement shall cease.

 

(b)            Each
Warrant shall be exercisable upon payment of the Exercise Price for each such Share so receivable upon exercise of such Warrant and compliance
with the procedures set forth in this Agreement.

 

(c)            Manner
of Exercise.

 

(i)            Cash
Payment. Subject to the provisions of this Agreement, a Warrant may be exercised by the Registered Holder thereof by delivering to
the Company (i) the Physical Certificate evidencing the Warrants to be exercised, or, in the case of a Book-Entry Warrant Certificate,
the Warrants to be exercised on the records of the Company, (ii) an election to purchase (“Election to Purchase”)
shares of Common Stock pursuant to the exercise of a Warrant, properly completed and executed by the Holder in the form presented on the
reverse of the Physical Certificate attached hereto as Exhibit A, and (iii) payment in full of the Exercise Price (to be rounded
up to nearest whole cent) for each full Warrant Share as to which the Warrant is exercised and any and all applicable taxes due in connection
with the exercise of the Warrant, the exchange of the Warrant for the Warrant Shares and the issuance of such shares of Common Stock,
by tendering in cash, by certified check payable to the order of the Company or by wire transfer of immediately available funds to an
account designated by the Company.

 

(ii)            Cashless
Exercise. Each Holder shall have the right, in lieu of paying the Exercise Price in cash, to instruct the Company to pay the Exercise
Price by reducing the number of Warrant Shares issuable pursuant to the exercise of the Warrants (the “Cashless Exercise”)
in accordance with the following formula:

 

N = P ÷ M

 

where:

 

N = the number of Warrant Shares to be subtracted from the
aggregate number of Warrant Shares issuable upon exercise of the Warrants;

 

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P = the aggregate price which would otherwise be payable in
cash for all of the Warrant Shares for which the Warrants are being exercised at the Exercise Price; and

 

M = the Market Price of a Warrant Share measured as of the
Business Day immediately preceding the day the Company receives an Election to Purchase.

 

If the Exercise Price exceeds the Market Price at the time
of exercise, then no Warrant Shares will be issuable via the Cashless Exercise.

 

(d)            The
number of Warrant Shares to be issued on such exercise will be determined by the Company in accordance with Section 5(c). For the
avoidance of doubt, the number of Warrant Shares determined pursuant to the foregoing formula to be subtracted from the aggregate number
of Warrant Shares issuable shall, if not a whole number, be rounded up to the nearest whole number.

 

(e)            Any
exercise of a Warrant pursuant to the terms of this Agreement shall be irrevocable and shall constitute a binding agreement between the
Holder and the Company, enforceable in accordance with its terms.

 

(f)            As
promptly as practicable after the exercise of any Warrant and the clearance of the funds in payment of the Exercise Price (if payment
is pursuant to Section 5(c)(i)), and in any event within three Business Days thereafter, the Company shall issue to the Holder of
such Warrant a book-entry position or certificate, as applicable, for the number of full Warrant Shares to which he, she or it is entitled,
registered in such name or names as may be directed by him, her or it, and if such Warrant shall not have been exercised in full, a new
book-entry position or countersigned Warrant, as applicable, for the number of Warrant Shares as to which such Warrant shall not have
been exercised. If fewer than all the Warrants evidenced by a Book-Entry Warrant Certificate are exercised, a notation shall be made to
the records maintained by the Company, evidencing the balance of the Warrants remaining after such exercise. The Company agrees that the
Warrant Shares so issued will be deemed to have been issued to the Holder as of the close of business on the date on which the Warrant
and payment of the Exercise Price are delivered to the Company in accordance with the terms of this Warrant.

 

(g)            Holders’
Exercise Limitations.

 

(i)            Limitation
on Exercise. No Holder shall have the right to exercise any Warrant, pursuant to Section 5(a) or otherwise, and no such
exercise shall be effective, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Election
to Purchase, the Holder (together with the Holder’s Affiliates, and any other Person whose beneficial ownership of Common Stock
would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act and the applicable rules and
regulations of the SEC, including any “group” (within the meaning of the Exchange Act) of which the Holder or any such other
Person is a member (such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below), provided that (X) a Holder may waive the application of the limitations in this Section 5(g)(i) to
such Holder upon sixty-one (61) calendar days’ prior written notice to the Company by such Holder and (Y) the limitations in
this Section 5(g)(i) shall not apply in the event of a Fundamental Transaction (as defined below). For the avoidance of doubt,
a Holder shall be permitted to exercise a number of Warrants, at any time, sufficient for the Holder and Attribution Parties to maintain
in the aggregate beneficial ownership of Common Stock in an amount equal to or less than the then-applicable Beneficial Ownership Limitation,
including if and to the extent that the Company issues additional Common Stock for any reason (including, for the avoidance of doubt,
any exercise, exchange or conversion of warrants, options or convertible securities or other securities into Common Stock).

 

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(ii)            Calculation
of Limitation. To the extent that the limitation contained in Section 5(g)(i) applies, the determination of whether a Warrant
is exercisable (in relation to other securities owned by the Holder thereof together with any Affiliates and Attribution Parties) shall
be in the sole discretion of such Holder. The submission of an Election to Purchase by a Holder shall be deemed to be such Holder’s
representation (upon which the Company shall be entitled to rely without any investigation or verification) that either (i) such
Holder has waived the application of the limitations in Section 5(g)(i) pursuant to Section 5(g)(i)(X) and such waiver
has become effective or (ii) such proposed exercise of the Warrant or Warrants subject to such Election to Purchase is not in excess
of the limitation contained in Section 5(g)(i). The Company shall not have any liability to a Holder or any other Person in respect
of the Company’s reliance on such Holder’s representation contained (or deemed contained) in an Election to Purchase, any
breach of such representation, error in any underlying calculation or understanding of the facts or legal determinations on which it is
based, or any other actual or apparent non-compliance by such Holder with the limitation set forth herein. For purposes of this Section 5(g),
in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock
as reflected in (A) the Company’s most recent periodic or annual report filed with the SEC, as the case may be, (B) a
more recent public announcement by the Company or (C) a more recent written notice by the Company setting forth the number of shares
of Common Stock outstanding; provided, that ̧ in the case of clause (B) and (C), the Holder may rely only on the most recent
such announcement or notice. In each case, the number of outstanding shares of Common Stock shall be determined by the Holder after giving
effect to the conversion or exercise of securities of the Company, including any Warrant then being exercised, by the Holder or otherwise
included in the Holder’s beneficial ownership since the date as of which such number of outstanding shares of Common Stock was reported.

 

(iii)            Beneficial
Ownership Limitation Percentage. The “Beneficial Ownership Limitation” shall be 4.9% of the shares of Common Stock
outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of any Warrants in respect
of which an Election to Purchase has been delivered to the Company.

 

(iv)            Limitation
on Number of Shares of Common Stock Issuable. Notwithstanding anything to the contrary herein, the maximum number of shares of Common
Stock issuable pursuant to all Warrants issued pursuant to this Agreement shall not exceed 19.9% of either (a) the total number of
outstanding Equity Interests on the date hereof or (b) the total voting power of the Equity Interests outstanding on the date hereof
that are entitled to vote on a matter being voted on by holders of the Company’s Equity Interests, unless and until the Company
has obtained any necessary stockholder approval; provided that in the event such stockholder approval is required for issuance of any
shares of Common Stock issuable pursuant to the Warrants issued pursuant to this Agreement, the Company shall use reasonable best efforts
to obtain such approval as soon as possible.

 

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(h)            Notwithstanding
any adjustment pursuant to Section 6 in the number of Warrant Shares purchasable upon the exercise of a Warrant, the Company shall
not be required to issue Warrants to purchase fractions of Warrant Shares, or to issue fractions of Warrant Shares upon exercise of the
Warrants, or to distribute certificates which evidence fractional Warrant Shares. If any fractional Warrant Shares would, except for the
provisions of this Section 5(h), be issuable on the exercise of any Warrant (or specified portion thereof), the Company shall, pay
an amount in cash equal to the fair market value of the Warrant Shares so issuable (as determined in good faith and on a reasonable basis
by the Board with the prior written consent of the Holders (such consent not to be unreasonably withheld, conditioned or delayed)), multiplied
by such fraction. If more than one Warrant shall be presented for exercise at the same time by the same Holder, the number of full Warrant
Shares which shall be issuable upon the exercise thereof shall be computed on the basis of the aggregate number of Warrant Shares purchasable
on exercise of the Warrants so presented. All Warrants held by a Holder shall be aggregated for purposes of determining any such adjustment.

 

(i)            The
Company shall pay all expenses in connection with, and all taxes and other governmental charges that may be imposed with respect to, the
issuance or delivery of Warrant Shares upon exercise of Warrants; provided, that the Company shall not be required to pay any income
or franchise tax incurred in connection with the exercise of the Warrants (whether payable by withholding or otherwise) or any tax or
governmental charge that may be imposed with respect to any applicable withholding or the issuance or delivery of the Warrant Shares to
any Person other than the Holder of the Warrants underlying such Warrant Shares, and no such issuance or delivery shall be made unless
and until the Person requesting such issuance has paid to the Company the amount of any such tax, or has established to the satisfaction
of the Company that such tax has been paid.

 

SECTION 6.     Adjustment
of Number of Shares Purchasable or Number of Warrants. In order to prevent dilution of the rights granted under the Warrants, the
number of Warrant Shares issuable upon exercise of Warrants shall be subject to adjustment from time to time as provided in this Section 6
(in each case, after taking into consideration any prior adjustments pursuant to this Section 6); provided, that if more than
one subsection of this Section 6 is applicable to a single event, the subsection shall be applied that produces the largest adjustment
and no single event shall cause an adjustment under more than one subsection of this Section 6 so as to result in duplication:

 

(a)            Stock
Dividends, Subdivisions and Combinations of Shares. If after the date hereof the number of outstanding shares of Common Stock is increased
or decreased by a subdivision, combination or other reclassification of shares of Common Stock or a dividend or share distribution made
with respect to the shares of Common Stock or any other securities in the form of shares of Common Stock issued by the Company, in each
case payable in shares of Common Stock, then, in the case of such events, the amount of Common Stock issuable for each Warrant shall be
increased or decreased, as applicable, in proportion to such increase or decrease, as applicable, in the outstanding shares of Common
Stock.

 

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(b)            Distributions.
If after the date hereof the Company shall make or declare, or fix a record date for the determination of holders of shares of Common
Stock entitled to receive, a dividend or any other distribution payable in securities of the Company, cash or other property, or engage
in a redemption or repurchase of share of Common Stock (for cash, units or other securities of the Company, evidences of indebtedness
of the Company or any other Person or any other property, or any combination thereof) with a similar effect (excluding cash distributions
made as a dividend payable out of earnings or out of surplus legally available for dividends under the laws of the jurisdiction of incorporation
of the Company, and other than a dividend or distribution referred to in Section 6(a) (which shall be governed solely by such
Section) each such event, a “Dividend”), then, and in each such event, provision shall be made (including setting aside
of cash or other property, as applicable) so that the Holder (or any transferee, upon any transfer of the Warrants permitted hereunder)
shall become entitled to receive upon exercise of its Warrants, such Dividend, the kind and amount of securities, cash or other property
which the Holder would have been entitled to receive had the Warrants been exercised in full for the then applicable Warrant Shares on
the date of such Dividend (or, to the extent the Company fixes a record date for such Dividend, on such record date).

 

(c)            Adjustments
for Reorganization, Reclassification, Mergers and Consolidations. In case the Company, after the date hereof, shall merge, consolidate
or otherwise engage in a recapitalization, reclassification, reorganization, business combination, consolidation, statutory share exchange,
sale of all or substantially all of its assets or similar event (any such transaction, a “Fundamental Transaction”),
then proper provision shall be made so that, upon the basis and terms and in the manner provided in this Agreement, the Holders, upon
the exercise of the Warrants at any time after the consummation of such Fundamental Transaction, shall be entitled to receive (at the
aggregate Exercise Price in effect at the time of the Fundamental Transaction for all Common Stock or Other Securities issuable upon such
exercise immediately prior to such consummation), in lieu of the Common Stock or Other Securities issuable upon such exercise prior to
such consummation, the amount and kind of securities, cash or other property to which such Holder would have been entitled as a holder
of Common Stock (or Other Securities) upon such consummation if such Holder had exercised the rights represented by the Warrants held
by such Holder immediately prior thereto, subject to future adjustments (subsequent to such consummation) pursuant to Sections 6(a) and
6(b) (applied after giving effect to any adjustments necessary to reflect such Fundamental Transaction as the Board determines in
good faith are equitable under such circumstances and are in form and substance reasonably satisfactory to the Holder. Notwithstanding
anything to the contrary contained herein, with respect to any corporate event or other transaction contemplated by the provisions of
this Section 6(c), the Holder shall have the right to elect prior to the consummation of such event or transaction, to give effect
to the exercise rights contained in Section 5 instead of giving effect to the provisions contained in this Section 6(c) with
respect to this Warrant.

 

(d)            Notice
of Adjustment. Whenever the Warrant Shares issuable shall be adjusted as provided in this Section 6, the Company shall cause
a written notice setting forth any such adjustments, and in reasonable detail the method of calculation and the facts upon which such
calculation is based to be sent to each Registered Holder appearing on the Warrant Register at its address appearing on the Warrant Register
and,

 

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(e)            No
Change in Warrant Terms on Adjustment. Irrespective of any adjustments in the number of Warrant Shares (including any inclusion of
Other Securities) issuable upon exercise, Warrants theretofore or thereafter issued may continue to express the same prices and number
of Warrant Shares as are stated in the similar Warrants issuable initially, or at some subsequent time, pursuant to this Agreement, and
the Exercise Price and such number of Warrant Shares issuable upon exercise specified thereon shall be deemed to have been so adjusted.

 

(f)            Record
Date. For purposes of any adjustment to the number of Warrant Shares in accordance with this Section 6, if the Company fixes
a record date (or a record date will otherwise occur) prior to the Expiration Date for the purpose of entitling its holders of Common
Stock to (i) receive a dividend or other distribution payable in Common Stock or Options or (ii) subscribe for or purchase Common
Stock or Options, then such record date will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have
been issued or sold upon the date of the declaration of such dividend or the making of such other distribution or the date of the granting
of such right of subscription or purchase, as the case may be.

 

(g)            Par
Value. Notwithstanding anything to the contrary herein, in no event shall the Exercise Price be less than the par value of the Common
Stock.

 

(h)            Certain
Events. If any event of the type contemplated by this Section 6 but not expressly provided for by this Section 6 (including
the granting of stock appreciation rights, phantom stock rights or other rights or options with equity features) occurs, then the Board
and the Holders will jointly determine in good faith an appropriate adjustment in the number of Warrant Shares issuable upon exercise
of this Warrant so as to protect the rights of the Holder in a manner consistent with this Section 6.

 

(i)            Treasury
Shares. Shares of Common Stock at any time owned by the Company shall not be deemed to be outstanding for the purposes of any computation
under this Section 6.

 

(j)            Successive
Adjustments. Any adjustments made pursuant to this Section 6 will be made successively whenever an event referred to in this
Section 6 occurs.

 

SECTION 7.     Representations,
Warranties and Covenants of Holder.

 

(a)            Each
Holder, by its acceptance of the Warrants: (a) represents, warrants and agrees that it (i) is experienced in evaluating and
investing in securities, and the Warrants and any Warrant Shares issued upon exercise thereof are being acquired for its own account,
for investment and not with a view to the distribution thereof within the meaning of the Securities Act, and such Holder is prepared to
bear the economic risk of retaining such Warrants and the Warrant Shares, and (ii) is an “accredited investor” within
the meaning of Rule 501 under the Securities Act; (b) acknowledges and agrees that the Warrants (including any Warrant Shares
issued upon exercise thereof) have not been registered under the Securities Act or any state securities law, and such Holder may not sell
or transfer any Warrants or Warrant Shares in the absence of an effective registration statement under the Securities Act or an exemption
from registration thereunder; and (c) acknowledges, that such Holder has been given the opportunity to ask questions of, and receive
answers satisfactory to it from, the Company concerning the business, finances and operations of the Company and (c) has not acquired
the Warrants and the Warrant Shares issued upon exercise thereof as a result of any form of general solicitation or general advertising
(as such terms are used in Rule 502 of Regulation D under the Securities Act), including advertisements, articles, notices or other
communications published in any newspaper, magazine or similar media, or broadcast over radio, television, the internet or other form
of telecommunications, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.

 

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SECTION 8.     Representations,
Warranties and Covenants of the Company. The Company hereby represents, covenants and agrees as follows:

 

(a)            The
authorized capital stock of the Company consists of: (i) 500,000,000 shares of Common Stock and (ii) 100,000,000 shares of Class B
common stock, par value $0.0001 per share. As of the Effective Date: (A) 12,615,516 shares of Common Stock and 32,770,000 shares
of Class B common stock were issued and outstanding, respectively (not including shares held in treasury), and (B) no shares
of Common Stock were issued and held by the Company in its treasury and no shares of Class B common stock were held by the Company
in its treasury.

 

(b)            Each
Warrant is, and any Warrants issued in substitution for or replacement of any Warrant will, upon issuance, be duly authorized and validly
issued. All Warrant Shares shall be duly authorized and, when issued upon such exercise of the Warrants, shall be duly and validly issued,
and (if applicable) fully paid and nonassessable, free from any and all taxes, liens, charges, security interests, encumbrances and other
restrictions and issued without violation (i) of any preemptive or similar rights of any stockholder of the Company and (ii) by
the Company of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which the Warrant
Shares may be listed at the time of such exercise.

 

(c)            The
Company is a Delaware corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.

 

(d)            The
Company has all requisite power and authority to enter into, and perform its obligations under, this Agreement and to issue all Warrant
Shares required to be issued hereunder.

 

(e)            This
Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and legally binding obligation of the
Company, enforceable against it in accordance with its terms except as may be limited by or subject to any bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally.

 

(f)            The
execution, delivery and performance of this Agreement by the Company does not and will not conflict with, or result in breach of, any
agreement, instrument, order, judgment, decree, law or governmental regulation to which it is subject.

 

    11

     

    

 

(g)            The
Company covenants that its issuance of Warrants hereunder shall constitute full authority to its officers who are charged with recording
the shares of Common Stock in book entry form to issue and record the Warrant Shares in book entry form upon the valid exercise of Warrants
hereunder. The Company shall take all such actions as may be necessary or appropriate to ensure that the Warrant Shares may be issued
as provided herein without violation of any applicable law or regulation or of any requirement of any securities exchange on which the
Warrant Shares are listed or traded.

  

SECTION 9.     Mutilated
or Missing Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company may on such terms as to indemnity or otherwise
as they may in their discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant
of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute a
substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be
at any time enforceable by anyone.

 

SECTION 10.     Merger,
Consolidation, Etc. Notwithstanding anything contained herein to the contrary, the Company will not effect a Fundamental Transaction
unless, prior to the consummation of such transaction, each Person (other than the Company) resulting from such Fundamental Transaction,
if applicable, that may be required to deliver any Warrant Shares, cash or property upon the exercise of any Warrant as provided herein
shall assume, by written instrument substantially similar in form and substance to this Warrant and reasonably satisfactory in good faith
to the Holder, the obligations of the Company under this Agreement and under each of the Warrants, including, without limitation, the
obligation to deliver such Warrant Shares, cash or property as may be required pursuant to Section 6 hereof or the certificate or
articles of incorporation or other constituent document, and shall provide for adjustments equivalent to the adjustments provided for
in Section 6 hereof.

 

SECTION 11.     Reservation
of Shares.

 

(a)            Reservation
of Shares. The Company shall at all times reserve and keep available, free and clear from liens, security interests, charges and other
encumbrances or restrictions on sale and free and clear of all from preemptive rights, out of its authorized but unissued shares of Common
Stock (or out of authorized Other Securities), solely for issuance and delivery upon exercise of Warrants, the full number of Warrant
Shares from time to time issuable upon the exercise of all Warrants and any other outstanding warrants, options or similar rights, from
time to time outstanding.

 

SECTION 12.     Notification
of Certain Events; Corporate Action. In the event of:

 

(a)            any
taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are
entitled to receive any dividend (excluding cash distributions made as a dividend payable out of earnings or out of surplus legally available
for dividends under the laws of the jurisdiction of incorporation of the Company) or other distribution of any kind, or any right to subscribe
for, purchase or otherwise acquire any shares of stock of any class or any other securities or property, or to receive any other right
or interest of any kind; or

 

    12

     

    

  

(b)            (i) any
capital reorganization of the Company, (ii) any reclassification of the capital stock of the Company (other than a change in par
value or from par value to no par value or from no par value to par value or as a result of a subdivision or combination), (iii) the
consolidation or merger of the Company with or into any other Person (other than a consolidation or merger in which the Company is the
continuing corporation and which does not result in any change in the shares of Common Stock), (iv) the sale or transfer of the properties
and assets of the Company as, or substantially as, an entirety to another Person, or (v) an exchange offer for Common Stock (or Other
Securities); or

 

(c)            the
voluntary or involuntary dissolution, liquidation, or winding up of the Company;

 

the Company
shall cause to be to each Registered Holder a notice, at its address appearing on the Warrant Register, specifying (x) the
date or expected date on which any such record is to be taken for the purpose of such dividend, distribution or right, and the amount
and character of any such dividend, distribution or right, or if a record is not to be taken, the date as of which the holders of Common
Stock of record to be entitled to such dividend, distribution, or right are to be determined, and the amount and character of such dividend,
distribution or right, or (y) the date or expected date on which any such reorganization, reclassification, consolidation, merger,
sale, transfer, exchange offer, dissolution, liquidation or winding up is expected to become effective, and the time, if any such time
is to be fixed, as of which holders of record of Common Stock (or Other Securities) shall be entitled to exchange their shares of Common
Stock (or Other Securities) for the securities or other property deliverable upon such reorganization, reclassification, consolidation,
merger, sale, transfer, exchange offer, dissolution, liquidation or winding up. Such notice shall be delivered not less than ten (10) calendar
days prior to such date therein specified, in the case of any such date referred to in clause (x) of the preceding sentence, and
not less than sixty (60) calendar days but no more than ninety (90) calendar days prior to such date therein specified, in the case of
any such date referred to in clause (y) of the preceding sentence. Failure to give such notice within the time provided or any defect
therein shall not affect the legality or validity of any such action.

 

SECTION 13.     Severability.
In the event that any one or more of the provisions contained herein or in the Warrants, or the application thereof in any circumstances,
is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provisions in every other respect and
of the remaining provisions contained herein and therein shall not be affected or impaired thereby. Furthermore, subject to the preceding
sentence, in lieu of any such invalid, illegal or unenforceable provision, the parties hereto intend that there shall be added as a part
of this Agreement a provision as similar in terms and commercial effect to such invalid, illegal or unenforceable provision as may be
possible and be valid and enforceable.

 

    13

     

    

 

SECTION 14.     No
Rights as Stockholders; Limitations on Liability; Stockholders Agreement.

  

(a)            Other
than as set forth in this Agreement (including in Section 6(b) hereof), prior to the exercise or conversion of any Warrants
into Warrant Shares, the Warrants do not entitle the Holder or the owner of any beneficial interest in such Warrants to any rights as
a stockholder of the Company, including, without limitation, any rights to vote, to receive dividends or other distributions, to exercise
any preemptive right, or to receive notice as stockholders in respect of any meetings of stockholders.

 

(b)            Nothing
in this Warrant will be construed as imposing any obligations or liabilities on the Holder to purchase any securities (other than upon
exercise of this Warrant) or as a stockholder of the Company, whether such liabilities are asserted by the Company, creditors of the Company
or any other third Persons.

 

(c)            In
connection with the exercise of this Warrant and as a condition to the issuance of Warrant Shares upon such exercise, the Holder shall
(if not already a party thereto) execute and deliver to the Company a joinder to the Stockholders Agreement in the form attached as Exhibit A
thereto and become a “Stockholder” party thereunder. The Company and the Holder acknowledge that upon delivery of the executed
counterparts to such joinder to the Stockholders Agreement (regardless of any amendments, supplements or other modifications to any joinder
to the Stockholders Agreement attached thereto), Holder, solely in its capacity as such, shall be entitled, as a Party and a beneficiary,
to the rights thereunder solely with regard to their Warrant Shares.

 

SECTION 15.     Remedies.

 

(a)            Certain
Disputes. If, with respect to the Market Price, if being determined pursuant to the proviso of clause (x) of such definition
under Section 5(c)(ii), the Holders of a majority of the outstanding Warrants (on an as exercised basis at the time of such determination)
object in writing to such determination and the Board and the Holders of a majority of the outstanding Warrants (on an as exercised basis
at the time of such determination) are unable to come to an agreement in good faith within five (5) days after such written objection,
such determination will be made by a nationally recognized investment banking, accounting or valuation firm jointly selected by the Board
and the Holders of a majority of the outstanding Warrants (on an as exercised basis at the time of such determination) (the “Valuation
Firm”). If such determination is being made under Section 5(c)(ii), in making such determination, the Valuation Firm will
assume an orderly sale transaction between a willing buyer and a willing seller and use valuation techniques then prevailing in the securities
industry. If such determination is being made under Section 5(c)(ii), it will be made without regard to the lack of liquidity of
the Common Stock due to any restrictions (contractual or otherwise) applicable thereto or any discount for minority interests and will
assume full disclosure of all relevant information and a reasonable period of time for effectuating such sale. The determination of the
Valuation Firm will be final and conclusive, and the fees and expenses of the Valuation Firm will be borne by the Company.

 

    14

     

    

 

 

(b)            Remedies
Cumulative. Except as set forth in Section 14(a), all remedies available under this Warrant, at law, in equity or otherwise will
be deemed cumulative and not alternative or exclusive of other remedies, and the exercise by the
Company or any Holder of a particular remedy will not preclude the exercise of any other remedy.

 

SECTION 16.     Notices
to Company and Holders. All notices, requests, instructions, or other documents to be given or made by any party to the other shall
be in writing (including by facsimile or other electronic means), and shall be deemed to have been duly given or made (a) on the
date of delivery if delivered personally, or by electronic mail, upon confirmation of receipt, (b) on the second Business Day following
the date of dispatch if delivered by a recognized next day courier service, , or (c) five Business Days after being deposited in
the United States mail. All notices hereunder shall be delivered, if to a Holder, at such Holder’s address set forth Schedule A,
or to such other address as such Holder may specify by written notice, and, if to the Company, at the address set forth below:

 

Redbox Entertainment Inc.

1 Tower Lane, Suite 800

Oakbrook Terrace, IL 60181

Attention: Galen C. Smith

Email: GSmith@redbox.com

 

With copies to:

 

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Attention:         Alexander
D. Lynch

Email:              Alex.Lynch@weil.com

 

SECTION 17.     Amendments
and Waivers. This Agreement and the Warrants may be amended or their provisions waived, only by a written instrument duly executed
by the Company and each Holder. Upon execution and delivery of any amendment pursuant to this Section 17, such amendment shall be
considered a part of this Agreement for all purposes.

 

SECTION 18.     Termination.
This Agreement shall terminate on the Expiration Date or, if later, upon settlement of all Warrants (i) validly exercised prior to
the Expiration Date and, (ii) if exercised pursuant to Section 5(c)(i) hereof, for which the Exercise Price was timely
paid. Notwithstanding the foregoing, this Agreement will terminate on any earlier date when all Warrants have been exercised, or cancelled.

 

SECTION 19.     Governing
Law and Consent to Forum. The validity, interpretation and performance of this Agreement shall be governed in accordance with the
laws of the State of Delaware, without giving effect to the principles of conflicts of laws thereof. The parties hereto irrevocably consent
to the exclusive jurisdiction of the Court of Chancery of the State of Delaware sitting in Wilmington, Delaware in connection with any
action, suit or proceeding arising out of or relating to this Agreement, and each irrevocably accepts for itself and in respect of its
property, generally and unconditionally, the jurisdiction of the aforesaid courts. Nothing herein shall affect the right of any Person
to serve process in any manner permitted by law or to commence legal proceedings or otherwise proceed against the Company.

 

    15

     

    

 

SECTION 20.     Waiver
of Jury Trial. The parties hereto waive all right to trial by jury in any action or proceeding to enforce or defend any rights hereunder.

 

SECTION 21.     Benefits
of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company and the Registered Holders
(who are express third party beneficiaries of this Agreement) any legal or equitable right, remedy or claim under this Agreement, and
this Agreement shall be for the sole and exclusive benefit of the Company and the Registered Holders.

 

SECTION 22.     Counterparts.
This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original,
and such counterparts shall together constitute but one and the same instrument.

 

SECTION 23.     Headings.
The headings of sections of this Agreement have been inserted for convenience of reference only, are not to be considered a part hereof
and in no way modify or restrict any of the terms or provisions hereof.

 

[Signature page follows]

 

    16

     

    

 

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

 

	 	REDBOX ENTERTAINMENT INC.
	 	 
	 	By:	/s/ Galen C. Smith
	 	Name: 	Galen C. Smith
	 	Title:	 Chief Executive Officer

 

[Signature Page to Warrant Agreement]

 

    

     

    

 

EXHIBIT A

 

[Form of Warrant Certificate]

[FACE]

 

THE
WARRANTS AND THE SECURITIES REPRESENTED BY THE WARRANTS HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED PURSUANT TO THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND SUCH SECURITIES MAY NOT
BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS THEY ARE REGISTERED AND QUALIFIED IN ACCORDANCE WITH THE SECURITIES ACT
AND ANY APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION AND QUALIFICATION SHALL APPLY.

 

Number

 

Warrants

THIS WARRANT SHALL BE VOID IF NOT EXERCISED PRIOR TO

THE EXPIRATION OF THE EXERCISE PERIOD PROVIDED FOR

IN THE WARRANT AGREEMENT DESCRIBED BELOW

REDBOX ENTERTAINMENT INC.

Incorporated Under the Laws of the State of Delaware

 

Warrant Certificate

 

This
Warrant Certificate certifies that [●], or registered assigns, is the registered holder of [●] warrant(s) evidenced
hereby (the “Warrants” and each, a “Warrant”) to purchase shares of Class A common stock, $0.0001
par value per share (“Common Stock”), of Redbox Entertainment Inc., a Delaware corporation (the “Company”).
Each Warrant entitles the holder, upon exercise during the period set forth in that certain Warrant Agreement, dated April 16, 2022
(the “Warrant Agreement”), to receive from the Company that number of fully paid and non-assessable shares of Common
Stock as set forth below, at the exercise price (the “Exercise Price”) as determined pursuant to the Warrant Agreement
payable in lawful money (or through “cashless exercise” as provided for in the Warrant Agreement) of the United States of
America upon surrender of this Warrant Certificate and payment of the Exercise Price at the office or agency of the Company referred to
below, subject to the conditions set forth herein and in the Warrant Agreement. Defined terms used in this Warrant Certificate but not
defined herein shall have the meanings given to them in the Warrant Agreement.

 

Each Warrant is initially exercisable for one (1) fully
paid and non-assessable share of Common Stock. No fractional shares will be issued upon exercise of any Warrant. If, upon the exercise
of Warrants, a holder would be entitled to receive a fractional interest in a share of Common Stock, the Company will, upon exercise,
pay an amount in cash equal to the fair market value of the shares of Common Stock so issuable (as determined in good faith and on a reasonable
basis by the Board with the prior written consent of the holder (such consent not to be unreasonably withheld, conditioned or delayed)),
multiplied by such fraction. The number of shares of Common Stock issuable upon exercise of the Warrants is subject to adjustment upon
the occurrence of certain events set forth in the Warrant Agreement.

 

    

     

    

 

The initial Exercise Price
per share of Common Stock for any Warrant is equal to $0.0001 per share. The Exercise Price is subject to adjustment upon the occurrence
of certain events set forth in the Warrant Agreement.

 

Subject to the conditions set forth in the Warrant
Agreement, the Warrants may be exercised only during the Exercise Period and to the extent not exercised by the end of such Exercise Period,
such Warrants shall become void.

 

Reference is hereby made to the further provisions
of this Warrant Certificate set forth on the reverse hereof and such further provisions shall for all purposes have the same effect as
though fully set forth at this place.

 

This Warrant Certificate shall be governed by and
construed in accordance with the internal laws of the State of New York, without regard to conflicts of laws principles thereof.

 

	 	REDBOX ENTERTAINMENT INC.
	 	 
	 	By:	 
	 		Name:
	 		Title:

 

    

     

    

 

[Form of Warrant Certificate]

[Reverse]

 

The Warrants evidenced by this certificate (the “Warrant
Certificate”) are part of a duly authorized issue of Warrants entitling the holder on exercise to receive shares of Common Stock
and are issued or to be issued pursuant to a Warrant Agreement dated as of April 16, 2022 (the “Warrant Agreement”),
duly executed by the Company and the Holder, which Warrant Agreement is hereby incorporated by reference in and made a part of this instrument
and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the
Company and the holders (the words “holders” or “holder” meaning the Registered Holders or Registered Holder)
of the Warrants. A copy of the Warrant Agreement may be obtained by the holder hereof upon written request to the Company. Defined terms
used in this Warrant Certificate but not defined herein shall have the meanings given to them in the Warrant Agreement.

 

Warrants may be exercised at any time during the
Exercise Period set forth in the Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate may exercise them by
surrendering this Warrant Certificate, with the form of election to purchase set forth hereon properly completed and executed, together
with payment of the Exercise Price as specified in the Warrant Agreement (or through “cashless exercise” as provided for in
the Warrant Agreement) at the principal corporate office of the Company. In the event that upon any exercise of Warrants evidenced hereby
the number of Warrants exercised shall be less than the total number of Warrants evidenced hereby, there shall be issued to the holder
hereof or his, her or its assignee, a new Warrant Certificate evidencing the number of Warrants not exercised.

 

Notwithstanding anything else in this Warrant Certificate
or the Warrant Agreement, no Warrant may be exercised unless at the time of exercise (i) a registration statement covering the shares
of Common Stock to be issued upon exercise is effective under the Securities Act and (ii) a prospectus thereunder relating to the
shares of Common Stock is current, except through “cashless exercise” as provided for in the Warrant Agreement.

 

The Warrant Agreement provides that upon the occurrence
of certain events the number of shares of Common Stock issuable upon exercise of the Warrants set forth on the face hereof may, subject
to certain conditions, be adjusted. If, upon exercise of a Warrant, the holder thereof would be entitled to receive a fractional interest
in a share of Common Stock, the Company shall, upon exercise, pay an amount in cash equal to the fair market value of the shares of Common
Stock so issuable (as determined in good faith and on a reasonable basis by the Board with the prior written consent of the holder (such
consent not to be unreasonably withheld, conditioned or delayed)), multiplied by such fraction. Warrant Certificates, when surrendered
at the principal corporate trust office of the Company by the Registered Holder thereof in person or by legal representative or attorney
duly authorized in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement, but without
payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate a like
number of Warrants.

 

Upon due presentation for registration of transfer
of this Warrant Certificate at the office of the Company a new Warrant Certificate or Warrant Certificates of like tenor and evidencing
in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this Warrant Certificate, subject
to the limitations provided in the Warrant Agreement, without charge except for any tax or other governmental charge imposed in connection
therewith.

 

The Company may deem and treat the Registered Holder(s) hereof
as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone),
for the purpose of any exercise hereof, of any distribution to the holder(s) hereof, and for all other purposes, and the Company
shall not be affected by any notice to the contrary. Neither the Warrants nor this Warrant Certificate entitles any holder hereof to any
rights of a stockholder of the Company.

 

    

     

    

 

Election to Purchase

(To Be Executed Upon Exercise of Warrant)

 

The undersigned hereby irrevocably elects to exercise
the right, represented by this Warrant Certificate, to receive shares of Common Stock and herewith tenders payment for such shares of
Common Stock to the order of Redbox Entertainment Inc. (the “Company”) in the amount of $[●] in accordance with
the terms hereof. The undersigned requests that a certificate for such shares of Common Stock be registered in the name of [●],
whose address is [●] and that such shares of Common Stock be delivered to [●] whose address is [●]. If said number of
shares of Common Stock is less than all of the shares of Common Stock purchasable hereunder, the undersigned requests that a new Warrant
Certificate representing the remaining balance of such shares of Common Stock be registered in the name of [●], whose address is
[●] and that such Warrant Certificate be delivered to [●], whose address is [●].

 

In the event that the Warrant is to be exercised
on a “cashless” basis pursuant to Section 5(c)(ii) of the Warrant Agreement, the number of shares of Common
Stock that this Warrant is exercisable for shall be determined in accordance with Section 5(c)(ii) of the Warrant Agreement.

 

In the event that the Warrant may be exercised, to
the extent allowed by the Warrant Agreement, through “cashless exercise” as provided for in the Warrant Agreement (i) the
number of shares of Common Stock that this Warrant is exercisable for would be determined in accordance with the relevant section of the
Warrant Agreement which allows for such cashless exercise and (ii) the holder hereof shall complete the following: The undersigned
hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, through the cashless exercise provisions of
the Warrant Agreement, to receive shares of Common Stock. If said number of shares is less than all of the shares of Common Stock purchasable
hereunder (after giving effect to the cashless exercise), the undersigned requests that a new Warrant Certificate representing the remaining
balance of such shares of Common Stock be registered in the name of [●], whose address is [●] and that such Warrant Certificate
be delivered to [●], whose address is [●].

 

[Signature Page Follows]

 

    

     

    

 

Date:

 

	 	 
	(Signature)	 
	 	 
	 	 
	 	 
	 	 
	(Address)	 
	 	 
	(Tax Identification Number)Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made and entered into, effective as of the ____ day of _____________, 2022 (the “Effective
Date”), by and between Van Wert Federal Savings Bank (the “Bank”) and Mark K. Schumm (the “Executive”).
Any reference to the “Company” shall mean VWF Bancorp, Inc., the holding company of the Bank.

 

RECITALS

 

WHEREAS, the Bank
desires to continue to employ the Executive in an executive capacity in the conduct of its businesses, and the Executive desires to be
so employed on the terms contained in this Agreement;

 

NOW, THEREFORE, in
consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties hereby
agree as follows:

 

		1.	POSITION AND RESPONSIBILITIES.

 

 (a)       Employment.
Except as provided for in this Section 1(a), during the Term (as defined in Section 2(a)) of this Agreement, the Executive agrees to
serve as President, Chief Executive Officer and Senior Lending Officer of the Bank or any successor executive position(s) with the Bank
that is consented to, in writing, by the Executive (the “Executive Position”), and will perform the duties of and
have all powers associated with the Executive Position as are appropriate for a person in the position of the Executive Position, as
well as those as shall be assigned by the Board of Directors of the Bank (the “Board of Directors”). However, the
Bank and the Executive agree that the Executive will serve as the Chief Operating Officer and Chief Risk Officer of the Bank commencing
as of the employment start date of a new President and Chief Executive Officer of the Bank and at that time, the new Executive Position
will be that of Chief Operating Officer and Chief Risk Officer. The Executive agrees to voluntarily relinguish his title as Senior Lending
Officer at the time the bank employs a new Senior Lending Officer. As the President, Chief Executive Officer and Senior Lending Officer
of the Bank, the Executive will report directly to the Board of Directors. As Chief Operating Officer, Chief Risk Officer and Senior
Lending Officer the Executive will report to directly to the President and Chief Executive Officer. During the period provided for in
this Agreement, the Executive also agrees to serve, if elected, as an officer, director or trustee of any subsidiary or affiliate of
the Bank and in such capacity to carry out the duties and responsibilities reasonably appropriate to any such position. 

 

(b)       Responsibilities.
During the Executive’s employment hereunder, the Executive will be employed on a full-time basis and the Executive will devote
his full business time and best efforts, business judgment, skill and knowledge to the performance of the Executive’s duties and
responsibilities related to the Executive Position. Except as otherwise provided in Section 1(c), or as may be approved by the Board
of Directors, the Executive will not engage in any other business activity during the term of this Agreement.

 

(c)       Service
on Other Boards and Committees. The Bank encourages participation by the Executive on community boards and committees and in
activities generally considered to be in the public interest, but the Board of Directors shall have the right to approve or disapprove,
in its sole discretion, the Executive’s participation on those boards and committees.

 

    

    	 	 	 

    

 

		2.	TERM.

 

(a)      
Term and Annual Renewal. The initial term of this Agreement will begin as of the Effective Date and continue for
a period of two years (the “Term”). Commencing on the first anniversary date of this Agreement (the “Renewal
Date”) and continuing on each anniversary of the Renewal Date thereafter, the term of this Agreement shall renew for an additional
year such that the remaining term of this Agreement is two (2) years; provided, however, that in order for this Agreement to renew, the
disinterested members of the Board of Directors must take the following actions within the following time frames prior to each Renewal
Date: (i) at least thirty (30) days prior to the Renewal Date, conduct or review a comprehensive performance evaluation of the Executive
for purposes of determining whether to extend the Term; and (ii) affirmatively approve the renewal or non-renewal of the Term, which
decision will be included in the minutes of the meeting of the Board of Directors. If the decision of the disinterested members of the
Board of Directors is not to renew the Term, then the Board of Directors will provide the Executive with a written notice of non-renewal
(“Non-Renewal Notice”) prior to the applicable Renewal Date and the Agreement will expire at the end of the current
Term.

 

(b)       Change
in Control. Notwithstanding the foregoing, in the event the Bank or the Company has entered into an agreement to effect a transaction
that would be considered a Change in Control, as defined in Section 5, the Term of this Agreement will automatically extend so that it
expire no less than two (2) years beyond the effective date of the Change in Control, subject to extensions as set forth in Section 2(a).

 

(c)       Continued
Employment Following Expiration of Term. Nothing in this Agreement shall mandate or prohibit a continuation of the Executive’s
employment following the expiration of the Term.

 

		3.	COMPENSATION, BENEFITS
                                            AND REIMBURSEMENT.

 

(a)       Base
Salary. In consideration of the Executive’s performance of the responsibilities and duties set forth in this Agreement,
the Executive will receive an annual base salary of $201,250 per year (“Base Salary”); provided, however, that as
of January 1, 2023, the Executive’s Base Salary shall be $173,250. The Bank will pay the Base Salary in accordance with its customary
payroll practices. During the term of this Agreement, the Board of Directors (or the Compensation Committee of the Board of Directors
(the “Compensation Committee”)) may increase, but, except as provided above, not decrease, the Executive’s Base
Salary. Any increase in Base Salary will become the new “Base Salary” for purposes of this Agreement.

 

(b)       Bonus
and Incentive Compensation. The Executive (i) is eligible to participate in any bonus plan or arrangement of the Bank in which
senior management is eligible to participate, pursuant to which a bonus may be paid to the Executive in accordance with the plan or arrangement;
and/or (ii) may receive a bonus, if any, on a discretionary basis, as determined by the Board of Directors or the Compensation Committee.

 

(c)       Benefit
Plans. The Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites offered to senior
management of the Bank, on terms and conditions no less favorable than the plans, arrangements and perquisites are available to other
members of senior management of the Bank. Without limiting the generality of the foregoing, the Executive also will be entitled to participate
in any employee benefit plans including but not limited to retirement plans, profit-sharing plans, health-and-accident plans, or any
other employee benefit plan or arrangement made available by the Bank in the future to senior management or employees generally of the
Bank, subject to and on a basis consistent with the terms, conditions and overall administration of those plans and arrangements.

 

    2

    	 	 	 

    

 

 (d)       Leave
and Paid Time Off. The Executive will be entitled to paid time off each year during the term of this Agreement measured on a
calendar year basis, in accordance with the Bank’s customary practices and in accordance with the Bank’s policies and procedures
for officers, provided, however, that the Executive will be entitled to a minimum of 22 days of paid time off each year, in addition
to all holidays observed by the Bank. Any unused paid time off during an annual period will be treated in accordance with the Bank’s
personnel policies as in effect from time to time. 

 

(e)       Club
Membership. The Bank will pay the cost of the Executive’s social membership at Willow Bend Country Club.

 

(f)        Expense
Reimbursements. The Bank will reimburse the Executive for all reasonable travel, entertainment and other expenses incurred by
the Executive in performing the Executive’s obligations under this Agreement, including, without limitation, fees for memberships
in organizations that the Executive and the Board of Directors or the Compensation Committee mutually agree are necessary and appropriate
in connection with the performance of the Executive’s duties under this Agreement. All reimbursements will be made as soon as practicable
upon substantiation of the expenses by the Executive in accordance with the applicable policies and procedures of the Bank and, in any
event, not later than the last day of the calendar year immediately following the calendar year in which the Executive incurred the expense.

 

		4.	TERMINATION AND TERMINATION PAY.

 

Subject to Section 5, which
governs the occurrence of a Change in Control, the Executive’s employment under this Agreement will terminate under the circumstances
set forth in this Section 4.

 

(a)      
Definition of Accrued Obligations. For purposes of this Agreement, the term “Accrued Obligations”
means the sum of: (i) any Base Salary earned but unpaid through the Executive’s Date of Termination, (ii) unpaid expense reimbursements
(subject to, and in accordance with, Section 3(f)), (iii) unused paid time off accrued through the Date of Termination (subject to an
in accordance with Section 3(d)), (iv) any earned but unpaid short-term and long-term incentive compensation for the year immediately
preceding the year of termination and (v) any vested benefits the Executive may have under any employee benefit plan of the Bank through
the Date of Termination, which vested benefits will be paid and/or provided in accordance with the terms of the employee benefit plans.
Unless otherwise provided by the applicable employee benefit plan, the Accrued Obligations, if any, will be paid to the Executive (or
the Executive’s estate or beneficiary in the event of the Executive’s death) within thirty (30) days following the Executive’s
Date of Termination.

 

    3

    	 	 	 

    

 

(b)      
Death. This Agreement and the Executive’s employment with the Bank will terminate upon the Executive’s
death, in which event the Bank’s sole obligation will be to pay or provide the Executive’s estate or beneficiary with any
Accrued Obligations.

 

(c)       Disability.
The Bank may terminate the Executive’s employment and this Agreement due to the Executive’s Disability. If the Bank terminates
the Executive’s employment due to the Executive’s Disability, the Bank’s sole obligation under this Agreement shall
be to pay or provide the Executive with any Accrued Obligations. For these purposes, the term “Disability” means the
Executive is deemed disabled for purposes of the Bank’s long-term disability plan or policy that covers the Executive or is determined
to be disabled by the Social Security Administration.

 

(d)       Termination
for Cause. The Bank may terminate the Executive’s employment for “Cause” at any time. The Executive shall have
no right to receive compensation or other benefits, other than the Accrued Obligations, for any period after a termination for “Cause.”
For purposes of Agreement, “Cause” shall be deemed to exist if the Executive: (i) has engaged in any willful act or omission
that, in the judgment of the Board of Directors has caused or will likely cause substantial economic damage to the Bank or the Company
or substantial injury to the business reputation of the Bank or the Company; or (ii) has engaged in an act or acts of dishonesty or fraud
intended to result in enrichment or advantage to the Executive or a third party at the expense of the Bank or through the use of the
Bank’s assets (including proprietary or confidential information); or (iii) has engaged in the willful failure (other than due
to substantiated physical or mental incapacity) to carry out the Executive’s duties and responsibilities to the Bank, including
any reasonable directions from the Board or Directors, within the standards of performance which could reasonably be expected of an executive
working for a banking institution or bank holding company in a similar position, if the willful failure continues for ninety (90) days
or more after written notice of the failure is provided to the Executive by the Bank; or (iv) has willfully failed or refused (A) to
comply with any material term or provision of this Agreement, (B) to adhere to the material terms of any employment-related policies
or procedures as have been or may be established by the Bank, or (C) to execute and comply with the material terms of any instruments
as may reasonably be requested by the Bank consistent with the foregoing clauses (A) and (B), including, without limitation, the Bank’s
rules and policies with respect to conduct and ethics; or (v) has been convicted or enters a plea of guilty or nolo contendere or enters
into a pretrial diversion program or similar program relating to a felony or any crime involving moral turpitude; or (vi) is subject
to an order of a federal or state regulatory agency or a court of competent jurisdiction requiring the termination of the Executive's
employment with the Bank, unless the Executive has appealed that order and the appeal is pending; or (vii) abuses alcohol or any controlled
substance in a manner that materially negatively affects the Executive’s performance or abilities at the Bank, whether or not such
activity constitutes a crime; or (viii) is prohibited from employment with an FDIC-insured institution under applicable federal law or
by order of any bank-regulatory agency. Notwithstanding the foregoing, Cause shall not be deemed to exist unless there shall have been
delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership
of the Board of Directors at a meeting of the Board of Directors called and held for the purpose (after reasonable notice to the Executive
and an opportunity for the Executive to be heard before the Board of Directors), finding that in the good faith opinion of the Board
of Directors the Executive was guilty of conduct described above and specifying the particulars thereof. Prior to holding a meeting at
which the Board of Directors is to make a final determination whether Cause exists, if the Board of Directors determines in good faith
at a meeting of the Board of Directors, by not less than a majority of its entire membership, that there is probable cause for it to
find that the Executive was guilty of conduct constituting Cause as described above, the Board of Directors may suspend the Executive
from his duties hereunder for a reasonable period of time not to exceed twenty-one (21) days pending a further meeting at which the Executive
shall be given the opportunity to be heard before the Board of Directors. For purposes of this subparagraph, no act or failure to act
on the Executive’s part shall be considered “willful” unless done, or omitted to be done, by his/her not in good faith
without reasonable belief that his/her action or omission was in the best interest of the Bank.

 

    4

    	 	 	 

    

 

(e)       Resignation
by Executive without Good Reason. The Executive may resign from employment during the term of this Agreement without Good Reason
upon at least thirty (30) days prior written notice to the Board of Directors, provided, however, that the Bank may accelerate the Date
of Termination upon receipt of written notice of the Executive’s resignation. In the event the Executive resigns without Good Reason,
the Bank’s sole obligation under this Agreement will be to pay or provide any Accrued Obligations to the Executive.

 

(f)       Termination
Without Cause or With Good Reason.

 

		(i)	The Board of Directors may immediately
                                            terminate the Executive’s employment at any time for a reason other than Cause (a termination
                                            “Without Cause”), and the Executive may, by written notice to the Board
                                            of Directors, terminate his employment at any time within ninety (90) days following an event
                                            constituting “Good Reason” (a termination “With Good Reason”);
                                            provided, however, that the Bank will have thirty (30) days to cure the “Good Reason”
                                            condition, but the Bank may waive its right to cure. In the event of a termination employment
                                            described under this Section 4(f)(i) during the Term and subject to the requirements of Section
                                            4(f)(iii), the Bank will pay or provide the Executive the following:

 

(A)            
any Accrued Obligations;

 

(B)             
a gross cash payment equal to the remaining Base Salary and bonus opportunity (based on the highest target bonus opportunity during
the three most recently completed performance periods prior to the Executive’s Date of Termination) that would have been paid to
the Executive during the remaining Term; payable in a lump sum within sixty (60) days of the Executive’s Date of Termination; and

 

(C)             provided
that the Executive has elected continued health care coverage in accordance with the Consolidated Omnibus Budget Reconciliation Act (“COBRA”),
reimbursement of COBRA health care costs by the Bank for up to eighteen (18) consecutive months, or if less, for the period for which
the Executive has elected COBRA coverage (commencing with the first month following the Executive's Date of Termination and continuing
until the eighteenth month following the Executive's Date of Termination).

 

    5

    	 	 	 

    

 

		(ii)	“Good
                                            Reason” exists if, without the Executive’s express written consent, any of
                                            the following occur:

 

		(A)	a material reduction in the Executive’s
                                            Base Salary and/or aggregate incentive compensation opportunities under the Bank’s
                                            annual and long-term incentive plans or programs, as applicable;

 

		 (B) 	 a material reduction in the Executive’s
                                            authority, duties or responsibilities from the position and attributes associated with the
                                            Executive Position (as described, with the contemplated changes, in section 1(a)); 

 

		(C)	a relocation of the Executive’s
                                            principal place of employment by more than thirty-five (35) miles from the Bank’s main
                                            office; or

 

		(D)	a material breach of this Agreement
                                            by the Bank.

 

		(iii)	Notwithstanding anything to the
                                            contrary in Section 4(f)(i), the Executive will not receive any payments or benefits under
                                            Sections 4(f)(i)(B) or 4(f)(i)(C) unless and until the Executive executes a release of claims
                                            (the “Release”) against the Bank and any affiliate, and their officers,
                                            directors, successors and assigns, releasing said persons from any and all claims, rights,
                                            demands, causes of action, suits, arbitrations or grievances relating to the employment relationship,
                                            including claims under the Age Discrimination in Employment Act, but not including claims
                                            for benefits under tax-qualified plans or other benefit plans in which the Executive is vested,
                                            claims for benefits required by applicable law or claims with respect to obligations set
                                            forth in this Agreement that survive the termination of this Agreement. The Release must
                                            be executed and become irrevocable by the 60th day following the Date of Termination,
                                            provided that if the 60-day period spans two (2) calendar years, then, to the extent necessary
                                            to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Code”),
                                            the payments and benefits described in this Section 4(f) will be paid, or commence, in the
                                            second calendar year.

 

(g)       Effect
on Status as a Director. In the event of the Executive’s termination of employment under this Agreement for any reason,
unless otherwise agreed to by the mutual consent of the Executive and the Board of Directors, the termination will also constitute the
Executive’s resignation as a director of the Bank and the Company, as well as a director of any subsidiary or affiliate thereof,
to the extent the Executive is acting as a director of any of the aforementioned entities.

 

(h)       Notice;
Effective Date of Termination. Any Notice of Termination of employment under this Agreement must be communicated by or to the
Executive or the Bank, as applicable, in accordance with Section 17. For purposes of this Agreement, the term “Date of Termination”
means the Executive’s termination of employment pursuant to this Agreement, which will be effective on the earliest of: (i) immediately
after the Bank gives notice to the Executive of the Executive’s termination Without Cause, unless the parties agree to a later
date, in which case, termination will be effective as of such later date; (ii) immediately upon approval by the Board of Directors of
termination of the Executive’s employment for Cause; (iii) immediately upon the Executive’s death or Disability; (iv) thirty
(30) days after the Executive gives written notice to the Bank of the Executive’s resignation from employment (including With Good
Reason), provided that the Bank may set an earlier termination date at any time prior to the date of termination of employment, in which
case the Executive’s resignation shall be effective as of that date; or (v) in the event of the Executive’s termination With
Good Reason due to a material reduction in Base Salary, the date on which the Executive provides Notice of Termination in accordance
with Section 4(f)(i).

 

    6

    	 	 	 

    

 

		5.	CHANGE IN CONTROL.

 

(a)       Change
in Control Defined. For purposes of this Agreement, the term “Change in Control” means: (i) a change in the
ownership of the Corporation; (ii) a change in the effective control of the Corporation; or (iii) a change in the ownership of a substantial
portion of the assets of the Corporation as defined in accordance with Code Section 409A. For purposes of this Section 5(a), the term
 “Corporation” means the Bank, the Company or any of their successors, as applicable.

 

		(i)	A change in the ownership of a Corporation
                                            occurs on the date that any one person, or more than one person acting as a group (as defined
                                            in Treasury Regulation 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the Corporation
                                            that, together with stock held by such person or group, constitutes more than fifty (50)
                                            percent of the total fair market value or total voting power of the stock of the Corporation.

 

		(ii)	A change in the effective control
                                            of the Corporation occurs on the date that either (A) any one person, or more than one person
                                            acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vi)(D)) acquires (or
                                            has acquired during the 12-month period ending on the date of the most recent acquisition
                                            by such person or persons) ownership of stock of the Corporation possessing thirty (30) percent
                                            or more of the total voting power of the stock of the Corporation, or (B) a majority of the
                                            members of the board of directors is replaced during any twelve (12) month period by directors
                                            whose appointment or election is not endorsed by a majority of the members of the board of
                                            directors prior to the date of the appointment or election, provided that this subsection
                                            “(B)” is inapplicable where a majority stockholder of the Corporation is another
                                            corporation.

 

		(iii)	A change in a substantial portion
                                            of the Corporation’s assets occurs on the date that any one person or more than one
                                            person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vii)(C)) acquires
                                            (or has acquired during the twelve (12) month period ending on the date of the most recent
                                            acquisition by such person or persons) assets from the Corporation that have a total gross
                                            fair market value equal to or more than forty (40) percent of the total gross fair market
                                            value of (A) all of the assets of the Corporation, or (B) the value of the assets being disposed
                                            of, either of which is determined without regard to any liabilities associated with such
                                            assets.

 

    7

    	 	 	 

    

 

For all purposes hereunder,
the definition of Change in Control shall be construed to be consistent with the requirements of Treasury Regulation 1.409A-3(i)(5),
except to the extent that such regulations are superseded by subsequent guidance.

 

(b)       Change
in Control Benefits. Upon the termination of the Executive’s employment by the Bank (or any successor) Without Cause or
by the Executive With Good Reason during the Term on or within two years after the effective time of a Change in Control, the Bank (or
any successor) will pay or provide the Executive, or the Executive’s estate in the event of the Executive’s death, with the
following:

 

		(i)	any Accrued Obligations;

 

		(ii)	a gross payment (the “Change
                                            in Control Severance”) equal to two (2) times the sum of the Executive’s:
                                            (A) Base Salary at the Date of Termination (or the Executive’s Base Salary in effect
                                            during any of the prior three years, if higher); and (B) the highest target bonus earned
                                            or paid for any of the three (3) most recently completed annual performance periods prior
                                            to the Change Control; payable in a lump sum within sixty (60) days of the Executive’s
                                            Date of Termination; and

 

		(iii)	provided that the Executive has
                                            elected continued health care coverage in accordance with COBRA, reimbursement of the COBRA
                                            health care costs by the Bank for up to 18 consecutive months, or if less, for the period
                                            for which the Executive has elected COBRA coverage (commencing with the first month following
                                            the Executive's Date of Termination and continuing until the eighteenth month following the
                                            Executive's Date of Termination).

 

Notwithstanding the foregoing,
the payments and benefits provided in this Section 5(b) will be payable to the Executive in lieu of any payments or benefits that are
payable under Section 4(f).

 

		6.	COVENANTS OF EXECUTIVE.

 

(a)      
Non-Solicitation/Non-Compete. The Executive hereby covenants and agrees that during the “Restricted Period,”
the Executive will not, without the written consent of the Bank, either directly or indirectly:

 

		(i)	solicit, offer employment to, or
                                            take any other action intended (or that a reasonable person acting in like circumstances
                                            would expect) to have the effect of causing any officer or employee of the Bank, or any of
                                            its respective subsidiaries or affiliates, to terminate his or her employment with the Bank
                                            and/or accept employment with another employer; or

 

		(ii)	become an officer, employee, consultant,
                                            director, trustee, independent contractor, agent, joint venturer, partner or trustee of any
                                            savings bank, savings and loan association, savings and loan holding company, credit union,
                                            bank or bank holding company, insurance company or agency, any mortgage or loan broker or
                                            any other entity that competes with the business of the Bank or any of their direct or indirect
                                            subsidiaries or affiliates that: (A) has a headquarters within thirty-five (35) miles of
                                            the Bank’s headquarters (the “Restricted Territory”), or (B) has
                                            one or more offices, but is not headquartered, within the Restricted Territory, but in the
                                            latter case, only if the Executive would be employed, conduct business or have other responsibilities
                                            or duties within the Restricted Territory; or

 

    8

    	 	 	 

    

 

		(iii)	solicit, provide any information,
                                            advice or recommendation or take any other action intended (or that a reasonable person acting
                                            in like circumstances would expect) to have the effect of causing any customer of the Bank
                                            to terminate an existing business or commercial relationship with the Bank.

 

The restrictions contained
in this Section 6(a) shall not apply in the event of the Executive’s termination of employment on or after the effective time of
a Change in Control.

 

For purposes of this Section
6(a), the “Restricted Period” will be: (i) at all times during Executive’s period of employment with the Bank;
and (ii) except as provided above, during the period beginning on Executive’s Date of Termination and ending on the one-year anniversary
of the Date of Termination.

 

(b)     
Confidentiality. The Executive recognizes and acknowledges that the Executive has been and will be the recipient
of confidential and proprietary business information concerning the Bank, including without limitation, past, present, planned or considered
business activities of the Bank, and the Executive acknowledges and agrees that the Executive will not, during or after the term of the
Executive’s employment, disclose such confidential and proprietary information for any purposes whatsoever, except as may be expressly
permitted in writing signed by the Bank, or as may be required by regulatory inquiry, law or court order.

 

(c)        Information/Cooperation.
The Executive will, upon reasonable notice, furnish any information and assistance to the Bank as may be reasonably required by the Bank,
in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however,
that the Executive shall not be required to provide information or assistance with respect to any litigation between the Executive and
the Bank or any other subsidiaries or affiliates.

 

(d)       Reliance.
Except as otherwise provided, all payments and benefits to the Executive under this Agreement will be subject to the Executive’s
compliance with this Section 6, to the extent applicable. The parties hereto, recognizing that irreparable injury will result to the
Bank, its business and property in the event of the Executive’s breach of this Section 6, agree that, in the event of any such
breach by the Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an injunction to restrain
the violation hereof by the Executive and all persons acting for or with the Executive. The Executive represents and admits that the
Executive’s experience and capabilities are such that the Executive can obtain employment in a business engaged in other lines
of business than the Bank, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood.
Nothing herein will be construed as prohibiting the Bank from pursuing any other remedies available to them for such breach or threatened
breach, including the recovery of damages from the Executive.

 

    9

    	 	 	 

    

 

		7.	SOURCE OF PAYMENTS.

 

All payments provided in
this Agreement shall be timely paid by check or direct deposit from the general funds of the Bank (or any successor of the Bank).

 

		8.	EFFECT ON PRIOR AGREEMENTS
                                            AND EXISTING BENEFITS PLANS.

 

This Agreement contains the
entire understanding between the parties hereto and supersedes any prior employment agreement between the Bank or any predecessor of
the Bank and the Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to the
Executive under another plan, program or agreement (other than an employment agreement) between the Bank and the Executive.

 

		9.	NO ATTACHMENT; BINDING
                                            ON SUCCESSORS.

 

(a)       Except
as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by operation
of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no effect.

 

(b)       The
Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all the business or assets of the Bank, expressly and unconditionally to assume and agree to perform the Bank’s obligations
under this Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such succession or assignment
had taken place. A successor’s failure to assent to this Agreement following a Change in Control shall be deemed to be a material
breach of this Agreement under Section 4(f).

 

		10.	MODIFICATION AND
                                            WAIVER.

 

(a)       This
Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.

 

(b)       No
term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any
provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall
be deemed a continuing waiver unless specifically stated therein, and each waiver shall operate only as to the specific term or condition
waived and shall not constitute a waiver of the term or condition for the future as to any act other than that specifically waived.

 

    10

    	 	 	 

    

 

		11.	certain
                                            Applicable law.

 

Notwithstanding anything
herein contained to the contrary, the following provisions shall apply:

 

(a)       The
Bank may terminate the Executive’s employment at any time, but any termination by the Bank other than termination for Cause shall
not prejudice the Executive’s right to compensation or other benefits under this Agreement. The Executive shall have no right to
receive compensation or other benefits under this Agreement for any period after the Executive’s termination for Cause, other than
the Accrued Obligations.

 

(b)       In
no event shall the Bank (nor any affiliate) be obligated to make any payment pursuant to this Agreement that is prohibited by Section
18(k) of the Federal Deposit Insurance Act (codified at 12 U.S.C. sec. 1828(k)), 12 C.F.R. Part 359, or any other applicable law.

 

(c)       Notwithstanding
anything in this Agreement to the contrary, to the extent that a payment or benefit described in this Agreement constitutes “non-qualified
deferred compensation” under Section 409A of the Code, and to the extent that the payment or benefit is payable upon the Executive’s
termination of employment, then the payments or benefits will be payable only upon the Executive’s “Separation from Service.”
For purposes of this Agreement, a “Separation from Service” will have occurred if the Bank and the Executive reasonably
anticipate that either no further services will be performed by the Executive after the Date of Termination (whether as an employee or
as an independent contractor) or the level of further services performed is less than fifty (50) percent of the average level of bona
fide services in the thirty-six (36) months immediately preceding the termination. For all purposes hereunder, the definition of Separation
from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii).

 

(d)       Notwithstanding
the foregoing, if the Executive is a “Specified Employee” (i.e., a “key employee” of a publicly traded
company within the meaning of Section 409A of the Code and the regulations issued thereunder) and any payment under this Agreement is
triggered due to the Executive’s Separation from Service, then solely to the extent necessary to avoid penalties under Section
409A of the Code, no payment will be made during the first six (6) months following the Executive’s Separation from Service. Rather,
any payment which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump
sum on the first day of the seventh month following the Separation from Service. All subsequent payments shall be paid in the manner
specified in this Agreement.

 

(e)       To
the extent not specifically provided in this Agreement, any compensation or reimbursements payable to Executive shall be paid or provided
no later than two and one-half (2.5) months after the calendar year in which such compensation is no longer subject to a substantial
risk of forfeiture within the meaning of Treasury Regulation Section 1.409A-1(d).

 

(f)       Each
payment pursuant to this Agreement is intended to constitute a separate payment for purposes Treasury Regulation Section 1.409A-2(b)(2).

 

    11

    	 	 	 

    

 

(g)       Notwithstanding
anything in this Agreement to the contrary, the Executive understands that nothing contained in this Agreement limits the Executive’s
ability to file a charge or complaint with the Securities and Exchange Commission or any other federal, state or local governmental agency
or commission (“Government Agencies”) about a possible securities law violation without approval of the Bank (or any
affiliate). The Executive further understands that this Agreement does not limit the Executive’s ability to communicate with any
Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including
providing documents or other information, without notice to the Bank (or any affiliate) related to the possible securities law violation.
This Agreement does not limit the Executive’s right to receive any resulting monetary award for information provided to any Government
Agency. In addition, pursuant to the Defend Trade Secrets Act
of 2016, the Executive understands that an individual may not be held criminally or civilly liable under any federal or state trade secret
law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state or local government official, either
directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law;
or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  Further, an individual
who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the employer's trade secrets
to the attorney and use the trade secret information in the court proceeding if the individual (y) files any document containing the
trade secret under seal; and (z) does not disclose the trade secret, except pursuant to court order.

 

		12.	SEVERABILITY.

 

If any provision of this
Agreement is determined to be void or unenforceable, then the remaining provisions of this Agreement will remain in full force and effect.

 

		13.	GOVERNING LAW.

 

This Agreement shall be governed
by the laws of the State of Ohio, but only to the extent not superseded by federal law.

 

		14.	ARBITRATION.

 

Any
dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted by a
single arbitrator selected by the Bank (or in the case of arbitration following a Change in Control, selected by the Executive) within
fifty (50) miles of Van Wert, Ohio, in accordance with the Commercial Rules of the American Arbitration Association then in effect. 
Judgment may be entered on the arbitrators’ award in any court having jurisdiction.  The above notwithstanding, the Bank
may seek injunctive relief in a court of competent jurisdiction in Ohio to restrain any breach or threatened breach of any provision
of this Agreement, without prejudice to any other rights or remedies that may otherwise be available to the Bank.

 

		15.	INDEMNIFICATION.

 

The Bank will provide the
Executive (including the Executive’s heirs, executors and administrators) with coverage under a standard directors’ and officers’
liability insurance policy at its expense, and will indemnify the Executive (and the Executive’s heirs, executors and administrators)
in accordance with the charter and bylaws of the Bank and to the fullest extent permitted under applicable law against all expenses and
liabilities reasonably incurred by the Executive in connection with or arising out of any action, suit or proceeding in which the Executive
may be involved by reason of having been a trustee, director or officer of the Bank or any subsidiary or affiliate of the Bank.

 

    12

    	 	 	 

    

 

		16.	TAX
                                            Withholding.

 

The Bank may withhold from
any amounts payable to the Executive hereunder all federal, state, local or other taxes that the Bank may reasonably determine are required
to be withheld pursuant to any applicable law or regulation (it being understood that Executive is responsible for payment of all taxes
in respect of the payments and benefits provided herein).

 

		17.	Notice.

 

For the purposes of this
Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly
given when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed to the respective
addresses set forth below or if sent by facsimile or email, on the date it is actually received.

 

	To the Bank:	Van
                                            Wert Federal Savings Bank

    976 S. Shannon Street

    Van Wert, Ohio 45891

    Attention: Corporate Secretary

     

	To Executive:	Most recent address on file with the Bank

 

[Signature Page Follows]

 

    13

    	 	 	 

    

 

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

 

	 	VAN  WERT FEDERAL SAVINGS BANK
	 	 
	 	By:	                  
	 	Name:
	 	Title:  
	 	 
	 	EXECUTIVE
	 	 
	 	  
	 	Mark K. Schumm

 

    14

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