Document:

ARC Group Worldwide 8-K

 

Exhibit 10.35

 

EXECUTION
VERSION

 

ESCROW AGREEMENT

 

This ESCROW AGREEMENT
(this “Escrow Agreement”) is made and entered into to be effective as of the 25th day of June, 2014,
by and among ARC Metal Stamping, LLC, a Delaware limited liability company (“Buyer”), ARC Group Worldwide, Inc.,
a Utah corporation (“ARC Worldwide”), Kecy Corporation, a Michigan corporation (“Kecy”),
and Wuersch & Gering LLP, a New York law firm having an office at 100 Wall Street, 10th Floor, New York, NY 10005
(the “Escrow Agent”).

 

WHEREAS, Buyer and
Kecy, along with 4111 Munson Holding, LLC, a Michigan limited liability company, and ARC Worldwide, entered into a certain Asset
Purchase Agreement, dated as of the date hereof (the “Purchase Agreement”), pursuant to which Buyer shall purchase
certain assets and real property;

 

WHEREAS, the Purchase
Agreement provides that ten percent (10%) of the Purchase Price shall be deposited by Buyer into escrow to be held and distributed
by the Escrow Agent in accordance with the terms of this Escrow Agreement; and

 

WHEREAS, the execution
and delivery of this Escrow Agreement is a condition to Buyer and Kecy’s obligations under the Purchase Agreement.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties agree as follows:

 

1.                 
Defined Terms. All capitalized terms used in this Escrow Agreement, but not otherwise defined herein, are given the
meanings set forth in the Purchase Agreement.

 

2.                 
Escrow Deposit. On or within three (3) Business Days prior to the Closing Date, the number of newly issued shares
of ARC Common Stock equal to ten percent (10%) of the Purchase Price (i.e., Two Million Six Hundred Thousand Dollars ($2,600,000)),
valued by reference to the average VWAP for the twenty (20) Trading Day period prior to the Closing Date, shall be deposited with
the Escrow Agent pursuant to Section 2.06(a) of the Purchase Agreement. All Escrow Shares shall be certificated in the name of
“Wuersch & Gering LLP as Escrow Agent.” The Escrow Shares shall be replaced by Buyer with cash equal to ten percent
(10%) of the Purchase Price (i.e., Two Million Six Hundred Thousand Dollars ($2,600,000)) immediately prior to the final
disbursement of the Escrow Fund, unless an earlier replacement cash deposit to the Escrow is required under the Purchase Agreement
(specifically Section 2.11(d) thereof) (the “Escrow Cash”, and referred herein together with the Escrow Shares
as the “Escrow Corpus”). The Escrow Corpus will be available: (a) for the payment of any Post-Closing Adjustment
owed by Kecy to Buyer pursuant to and in accordance with Section 2.07(a) of the Purchase Agreement; and (b) to satisfy any of Kecy
or 4111 Munson Holding, LLC’s indemnification obligations to Buyer incurred or sustained by, or imposed upon, the Kecy Indemnitees
or Munson Indemnitees that are recoverable by the Buyer against Kecy or 4111 Munson Holding, LLC pursuant to and in accordance
with the provisions of Section 9.01 of the Purchase Agreement. The Escrow Agent hereby acknowledges and agrees to hold the Escrow
Corpus in a separate and distinct account, in the name of “ARC-Kecy Escrow Account”, as Escrow Agent for Kecy
and Buyer (the “Escrow Account”), subject to the terms and conditions of this Escrow Agreement and the Purchase
Agreement. The Escrow Corpus shall be held as a segregated trust fund and shall not be subject to any lien, attachment, trustee
process or any other judicial process of any creditor of any party hereto. The Escrow Agent shall not distribute or release the
Escrow Corpus except in accordance with the express terms and conditions of this Escrow Agreement and the Purchase Agreement. The
Escrow Corpus will not be held in an attorney trust account and nothing herein shall be construed to establish an attorney-client
relationship by and between the Escrow Agent and any other party hereto. Kecy and the Buyer expressly acknowledge that Escrow Agent
serves as counsel to the Buyer and such capacity shall not be deemed to constitute a conflict with any services to be rendered
by the Escrow Agent hereunder. During any and all periods in which Escrow Shares are held by the Escrow Agent, (i) the sole
right to vote such shares shall be held by the Escrow Agent and may be exercised at the sole discretion of the Escrow Agent; and
(ii) any and all dividends (other than stock dividends) issued by the Buyer in respect of the same class of capital stock as the
Escrow Shares shall be tendered and returned by the Escrow Agent to ARC Worldwide.

 

    	

    	 

    

 

Escrow Agreement

 

 

3.                 
Investments. The Escrow Agent shall not invest any of the Escrow Corpus and the Escrow Account shall be maintained
only in cash or as Escrow Shares. No interest shall be due or payable to any party by the Escrow Agent in respect of the Escrow
Corpus.

 

4.                 
Release of Escrow Corpus. The Escrow Corpus held pursuant to this Escrow Agreement is intended to serve as security
and provide a non-exclusive source of funds for the payment of any amounts which may become payable in respect of the claims and
matters described in Section 2 above, on or prior to the Escrow Release Date. The Escrow Corpus shall only be distributed and released
as follows:

 

(a)               
Purchase Price Adjustment. Upon the Escrow Agent's receipt of a joint written instruction signed by Kecy and Buyer stating
that there has been a final determination of the Post-Closing Adjustment to be paid by Kecy to Buyer pursuant to Section 2.07 of
the Purchase Agreement, the Escrow Agent shall promptly, and in any event within five (5) Business Days of its receipt of that
instruction, either: (i) if the Escrow then contains Escrow Cash, release, by wire transfer to an account or accounts designated
by Buyer, an amount of the Escrow Corpus from the Escrow Account equal to the Post-Closing Adjustment specified in such instruction;
or (ii) if the Escrow then contains Escrow Shares, release to ARC Worldwide an amount of the Escrow Corpus from the Escrow Account
equal to the Post-Closing Adjustment specified in such instruction.

 

(b)              
Indemnification Related Claims. In accordance with Section 9.01 of the Purchase Agreement, upon receipt of joint written
instructions signed by Kecy and Buyer or such final and non-appealable order or award of arbitration, as the case may be, the Escrow
Agent shall release to Buyer such amount in value of the Escrow Corpus in the Escrow Account in accordance with such written instructions
or final and non-appealable order.

 

    	2

    	 

    

 

Escrow Agreement

 

  

(c)               
Maintenance of and Distribution Procedures for the Escrow Account.

 

                                                 
i.                  
Subject to the following provisions
of this Section 4(c) and the provisions of Section 2.11 of the Purchase Agreement, the Escrow Fund shall be released by Escrow
Agent to Kecy at 10:00 a.m., New York time, on the Escrow Release Date. If the Escrow Amount is not fully and timely paid to Kecy
in cash, the Escrow Agent shall deliver such number of Escrow Shares to Kecy (or such broker or agent of Kecy as specified in
writing to the Escrow Agent) together with duly executed medallion guaranteed stock powers, sufficient to pay any such deficiency
in respect of the Escrow to Kecy, as determined by reference to the average VWAP of the ARC Common Stock for the twenty (20) Trading
Day period preceding the last Trading Day of the immediately preceding calendar month.

 

                                              
ii.                  
If the average VWAP of the ARC Common Stock for the twenty (20) Trading Days preceding the last Trading Day of any calendar
quarter between the Closing Date and the Escrow Release Date is decreased by twenty percent (20%) or more since the average VWAP
of the ARC Common Stock on the Closing Date, then the number of Escrow Shares will be increased so that the VWAP of the Escrowed
Shares again equals ten percent (10%) of the Purchase Price (i.e., Two Million Six Hundred Thousand Dollars ($2,600,000)).

 

                                            
iii.                  
If the average VWAP of the ARC Common Stock for the twenty (20) Trading Days preceding the last Trading Day of any calendar
quarter between the Closing Date and the Escrow Release Date is decreased by fifty percent (50%) or more since the average VWAP
of the ARC Common Stock on the Closing Date, then the Escrow Shares will be replaced with cash representing ten percent (10%)
of the Purchase Price (i.e., Two Million Six Hundred Thousand Dollars ($2,600,000)).

 

                                            
iv.                  
Subject to the restrictions set forth in Section 4(c)(v) of this Escrow Agreement and Section 2.11(e) of the Purchase Agreement,
the Escrow Shares will be replaced with cash representing ten percent (10%) of the Purchase Price (i.e., Two Million Six
Hundred Thousand Dollars ($2,600,000) not less than five (5) Business Days prior to the Escrow
Release Date (unless earlier replaced by cash in accordance with Section 2.11(c) of the Purchase Agreement, in which case such
replacement is not necessary). If no Notice of Loss has been duly delivered prior to the Escrow Release Date by Buyer to Kecy
and the Escrow Agent in conformity with all of the applicable procedures set forth in this Agreement, then the Escrow Fund shall
be released by Escrow Agent to Seller at 10:00 a.m., New York time, on the Escrow Release Date consistent with Section 4(c)(i)
of this Escrow Agreement and Section 2.11(a) of the Purchase Agreement.

 

                                               
v.                  
The Escrow Shares will be replaced with cash representing ten
percent (10%) of the Purchase Price (i.e., Two Million
Six Hundred Thousand Dollars ($2,600,000) not less than five (5) Business Days prior to the
Escrow Release Date; provided, however, that if a Notice of Loss has been duly delivered prior to the Escrow Release Date
by Buyer to Kecy and the Escrow Agent in conformity with all of the applicable procedures set forth in this Agreement and the
Purchase Agreement, then the Escrow Fund may remain in the form of Escrow Shares (unless earlier replaced by cash in accordance
with Section 4(c)(iii) of this Escrow Agreement and Section 2.11(c) of the Purchase Agreement, in which case the Escrow Fund shall
remain in the form of cash) until the definitive determination and resolution of the claimed Losses relating to such Notice of
Loss.

 

    	3

    	 

    

Escrow Agreement

 

  

                                            
vi.                  
After definitive determination and resolution of the Losses relating to such Notice of Loss, the Escrow Shares, less
the amount of such Losses incurred by Buyer, shall within three (3) Business Days thereafter be replaced by cash in an amount
equal to ten percent (10%) of the Purchase Price (i.e., Two Million Six Hundred Thousand Dollars ($2,600,000)
(unless earlier replaced by cash in accordance with Section 4(c)(iii) of this Escrow Agreement and Section 2.11(c) of the Purchase
Agreement, in which case such replacement is not necessary), less the amount of any and all Losses due or payable to Buyer,
and thereafter such replacement cash shall be released to Kecy.

 

5.                 
Inspection Rights and Account Statements. Buyer and Sellers shall have the right to inspect and obtain copies of
the records of the Escrow Agent pertaining to this Escrow Agreement and to receive monthly reports of the status of the Escrow
Account. Upon written request to the Escrow Agent by any party hereto on or before the seventh (7th) Business Day following
each month during the term hereof, the Escrow Agent shall deliver account statements to Buyer and Sellers with respect to the Escrow
Account for the prior month, which statements shall include the account balance and any disbursements made pursuant to Section
4 hereof.

 

6.                 
Termination. This Escrow Agreement shall terminate when the entire Escrow Account has been distributed in accordance
with Section 4 of this Escrow Agreement and Section 2.11 of the Purchase Agreement.

 

7.                 
Conditions to Escrow. The Escrow Agent agrees to hold the Escrow Corpus in the Escrow Account and to perform in accordance
with the terms and provisions of this Escrow Agreement. Sellers and Buyer agree that the Escrow Agent does not assume any responsibility
for the failure of Sellers or Buyer to perform in accordance with the Purchase Agreement or this Escrow Agreement. The acceptance
by the Escrow Agent of its responsibilities hereunder is subject to the following terms and conditions, which the parties hereto
agree shall govern and control with respect to the Escrow Agent's rights, duties, liabilities and immunities:

 

(a)               
The Escrow Agent shall have only those duties as are specifically provided herein, which shall be deemed purely ministerial
in nature, and shall under no circumstance be deemed a fiduciary for any of the other parties to this Escrow Agreement. The Escrow
Agent shall not be required to take any action hereunder involving any expense unless the payment of such expense is made or provided
for in a manner reasonably satisfactory to it.

 

(b)              
The Escrow Agent shall be protected in acting upon any written notice, consent, receipt or other paper or document furnished
to it, not only as to its due execution and validity and effectiveness of its provisions, but also as to the truth and accuracy
of any information therein contained, which the Escrow Agent in good faith believes to be genuine and what it purports to be. Should
it be necessary for the Escrow Agent to act upon any instructions, directions, documents or instruments issued or signed by or
on behalf of any corporation, fiduciary or individual acting on behalf of another party hereto, which the Escrow Agent in good
faith believes to be genuine, it shall not be necessary for the Escrow Agent to inquire into such corporation's, fiduciary's or
individual's authority.

 

    	4

    	 

    

 

Escrow Agreement

 

 

(c)               
The Escrow Agent shall not be liable for any error of judgment or for any act done or step taken or omitted by it in good
faith, or for anything which it may do or refrain from doing in connection herewith, except for its own gross negligence or willful
misconduct.

 

(d)              
In the event of any dispute or controversy among the parties hereto, the Escrow Agent may consult with, and obtain advice
from, legal counsel in the event of any question as to any of the provisions hereof or the duties hereunder, and it shall incur
no liability and shall be fully protected in acting in good faith in accordance with the opinion and instructions of such counsel.
The reasonable and documented costs of such counsel's services shall be paid to the Escrow Agent in accordance with Section 12
below.

 

(e)               
The Escrow Agent shall neither be responsible for, nor chargeable with knowledge of, the terms and conditions of any other
agreement, instrument or document between the other parties hereto, except for the Purchase Agreement. This Escrow Agreement and
the Purchase Agreement set forth all matters pertinent to the escrow contemplated hereunder, and no additional obligations of the
Escrow Agent shall be inferred from the terms of any other agreement, instrument, or document.

 

(f)               
In the event that the Escrow Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions,
claims or demands from Buyer or Sellers which, in its opinion, conflict with any of the provisions of this Escrow Agreement and
the Purchase Agreement, it shall be entitled to refrain from taking any action and its sole obligation shall be to keep safely
all property held in the Escrow until it shall be directed otherwise in writing jointly by Buyer and Sellers or by a final and
non-appealable order of a court of competent jurisdiction. The Escrow Agent shall have the option, after seven (7) days' notice
to Buyer and Sellers of its intention to do so, to file notice of arbitration requiring Buyer and Sellers to answer and arbitrate
any claims and rights among themselves. Any such arbitration shall be subject to the terms and conditions of arbitration as set
forth in the Purchase Agreement.

 

(g)              
Any partnership, corporation or association into which the Escrow Agent may be converted or merged, or with which it may
be consolidated, or to which it may sell or transfer its escrow business and assets as a whole or substantially as a whole, or
any corporation or association resulting from any such conversion, sale, merger, consolidation or transfer to which it is a party,
shall be and become the successor escrow agent hereunder and vested with all of the title to the whole property or trust estate
and all of the trusts, powers, immunities, privileges, protections and all other matters as was its predecessor, without the execution
or filing of any instrument or any further act, deed or conveyance on the part of any of the parties hereto, anything herein to
the contrary notwithstanding.

    	5

    	 

    

 

Escrow Agreement

 

 

8.                 
Resignation of Escrow Agent.

 

(a)               
The Escrow Agent reserves the right to resign at any time by giving seven (7) days written notice of resignation, specifying
the effective date thereof. On the effective date of such resignation, the Escrow Agent shall deliver this Escrow Agreement together
with the Escrow Corpus and any and all related instruments or documents to any successor escrow agent mutually agreeable to Buyer
and Sellers as confirmed in writing. If a successor escrow agent has not been appointed and has not accepted such appointment prior
to the expiration of seven (7) days following the date of the notice of such resignation, the Escrow Agent may, but shall not be
obligated to, apply to a court of competent jurisdiction for the appointment of a successor Escrow Agent. Any such resulting appointment
shall be binding upon all of the parties to this Escrow Agreement. Notwithstanding anything to the contrary in the foregoing, the
Escrow Agent or any successor escrow agent shall continue to act as Escrow Agent until a successor is appointed and qualified to
act as Escrow Agent.

 

(b)              
Upon delivery of the Escrow Corpus to a successor escrow agent in accordance with this Section 8, the Escrow Agent shall
thereafter be discharged from any further obligations hereunder. All power, authority, duties and obligations of the Escrow Agent
shall apply to any successor escrow agent.

 

9.                 
Indemnification of Escrow Agent. Buyer shall indemnify and hold the Escrow Agent harmless from and against any liability,
loss, damage or expense (including, without limitation, reasonable and documented attorneys' fees) that the Escrow Agent may incur
in connection with this Escrow Agreement and its performance hereunder or in connection herewith, except to the extent such liability,
loss, damage or expense arises from its willful misconduct or gross negligence. The indemnification provided for under this Section
9 shall be allocated and paid in the same manner as fees and expenses under Section 12 below and shall survive the termination
of this Escrow Agreement and the resignation or removal of the Escrow Agent.

 

10.             
Taxes.

 

(a)               
Ownership for Tax Purposes. Each of Buyer and Sellers agree that, solely for purposes of United States federal and other
taxes based on income, and for no other purpose, Buyer shall be treated as the owner of the Escrow Corpus and that Buyer shall
report the income, if any, that is earned on, or deemed earned upon, or derived from, the Escrow Corpus as income, if any, in the
taxable year or years in which such income is properly includible and pay any taxes attributable thereto.

 

(b)              
Tax Forms. Prior to the date hereof, Buyer shall provide the Escrow Agent with a fully executed Internal Revenue Service
Form W-9, or W-8, properly completed and signed, and such other forms and documents that the Escrow Agent may reasonably request.

 

(c)               
Withholding. The Escrow Agent shall be entitled to deduct and withhold from any amount distributed or released from the
Escrow Corpus all taxes which may be required to be deducted or withheld under any provision of applicable tax law. All such withheld
amounts shall be treated as having been delivered to the party entitled to the amount distributed or released in respect of which
such tax has been deducted or withheld.

    	6

    	 

    

 

Escrow Agreement

 

  

11.             
Business Days. If any date on which the Escrow Agent is required to make an investment or a delivery pursuant to
the provisions hereof is not a day on which the Escrow Agent is open for business, then the Escrow Agent shall make such investment
or delivery on the next succeeding Business Day.

 

12.             
Escrow Costs. Buyer shall pay all of the fees and expenses (including reasonable and documented attorneys' fees)
of the Escrow Agent for the services to be rendered by the Escrow Agent pursuant to this Escrow Agreement. The Escrow Agent agrees
to serve as Escrow Agent in accordance with the fee schedule attached as Exhibit A hereto.

 

13.             
Force Majeure. No party shall be liable or responsible to the other parties, nor be deemed to have defaulted under
or breached this Escrow Agreement, for any failure or delay in fulfilling or performing any term of this Escrow Agreement, when
and to the extent such failure or delay is caused by or results from acts beyond the affected party's reasonable control, including,
without limitation: (a) acts of God; (b) flood, fire or explosion; (c) war, invasion, riot or other civil unrest; (d) government
order or law; (e) actions, embargoes or blockades in effect on or after the date of this Escrow Agreement; (f) action by any governmental
authority; (g) national or regional emergency; and (h) strikes, labor stoppages or slowdowns or other industrial disturbances (each,
a “Force Majeure Event”). The party suffering a Force Majeure Event shall give notice to the other party, stating the
period of time the occurrence is expected to continue and shall use diligent efforts to end the failure or delay and ensure the
effects of such Force Majeure Event are minimized.

 

14.             
Notices. All notices and other communications under this Escrow Agreement shall be in writing and shall be deemed
to have been duly received (a) if given by e-mail, when transmitted so long as affirmative confirmation is given in writing
to the sender by the recipient thereof (e-mail receipt answer-backs will not suffice for such purpose) on the same Business Day
and during normal business hours of the recipient; (b) if given by certified or registered mail, return receipt requested,
postage prepaid, three Business Days after being deposited in the US mails, and (c) if given by courier or other means, when
received or personally delivered, and addressed as follows (or at such other address as the intended recipient shall have specified
in a written notice given to the other party hereto):

 

	 	If to Buyer:
	 	 	 
	 	 	ARC Group Worldwide, Inc.
	 	 	Attn: Drew M. Kelley, Chief Financial Officer
	 	 	810 Flightline Blvd.
	 	 	Deland, FL 32724
	 	 	e-mail:  dkelley@arcgroupworldwide.com
	 	 	 	 

 

    	7

    	 

    

 

Escrow Agreement

 

  

	 	If to Escrow Agent:
	 	 	 	 
	 	 	Wuersch & Gering LLP
	 	 	100 Wall Street, 10th Floor
	 	 	New York, NY 10005
	 	 	Attention: Travis L. Gering, Esq. 
	 	 	e-mail: travis.gering@wg-law.com
	 	 	 
	 	If to Kecy:
	 	 	 	 
	 	 	Kecy Corporation
	 	 	Attn: Mr. Raymond Cox, President
	 	 	9506 State Route 100
	 	 	Napoleon, Ohio 43545
	 	 	e-mail: RCox@kecycorporation.com
	 	 	 	 
	 	 	with a copy to:	Eastman & Smith Ltd.
	 	 	 	One SeaGate, 24th Floor
	 	 	 	Toledo, Ohio 43604
	 	 	 	Attention: Jon B. Liebenthal, Esq.
	 	 	 	e-mail:
    jbliebenthal@eastmansmith.com

 

15.             
Entire Agreement. This Escrow Agreement, together with the Purchase Agreement and related exhibits and schedules,
constitutes the sole and entire agreement of the parties to this Escrow Agreement with respect to the subject matter contained
herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such
subject matter. Notwithstanding the foregoing, in the event of any inconsistency between the statements in the body of this Escrow
Agreement and those of the Purchase Agreement, (i) with respect to any inconsistency as between Buyer and Sellers, the statements
in the body of the Purchase Agreement shall control; and (ii) with respect to any inconsistency as between the Escrow Agent, on
the one hand, and either Buyer or Sellers or both, on the other hand, the statements in the body of this Escrow Agreement shall
control.

 

16.             
Successor and Assigns. This Escrow Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and permitted assigns. No party may assign any of its rights or obligations hereunder without
the prior written consent of the other parties hereto, which consent shall not be unreasonably withheld or delayed; provided, however,
Buyer may, without the prior written consent of the other parties hereto, assign its rights under this Escrow Agreement to any
subsidiary of the Buyer. No assignment shall relieve the assigning party of any of its obligations hereunder.

 

17.             
No Third-Party Beneficiaries. This Escrow Agreement is for the sole benefit of the parties hereto and their respective
successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any
legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Escrow Agreement.

 

    	8

    	 

    

 

Escrow Agreement

 

  

 

18.             
Headings. The headings in this Escrow Agreement are for reference only and shall not affect the interpretation of
this Escrow Agreement.

 

19.             
Amendment and Modification; Waiver. This Escrow Agreement may only be amended, modified or supplemented by an agreement
in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly
set forth in writing and signed by the party so waiving. Except as otherwise set forth in this Escrow Agreement, no failure to
exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Escrow Agreement shall operate or be
construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

20.             
Severability. If any term or provision of this Escrow Agreement is invalid, illegal or unenforceable in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect any other term or provision of this Escrow Agreement or invalidate
or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision
is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Escrow Agreement so as to
effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

21.             
Governing Law. This Escrow Agreement shall be construed in accordance with, and governed in all respects by, the
laws of the State of Delaware (without giving effect to principles of conflicts of law).

 

22.             
Arbitration. Any Action seeking to enforce any provision of, or based on any matter arising out of or in connection
with, this Agreement or the transactions contemplated by this Agreement, shall be resolved by arbitration
before a panel of three (3) arbitrators, administered by JAMS under its arbitration rules then in effect and held in Chicago, Illinois,
and judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The parties
agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof
and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they
are entitled.

 

23.             
Counterparts. This Escrow Agreement may be executed in counterparts, each of which shall be deemed an original, but
all of which together shall be deemed to be one and the same agreement. A signed copy of this Escrow Agreement delivered by facsimile,
e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed
copy of this Escrow Agreement.

 

(REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

 

    	9

    	 

    

 

Escrow Agreement

 

 

 

IN WITNESS WHEREOF, the parties
hereto have executed this Escrow Agreement as of this 25th day of June, 2014.

 

	 	 	BUYER:
	 	 	ARC METAL STAMPING, LLC
	 	 	 
		 	By:	/s/ Jason T. Young
	 	 	Name:	Jason T.
        Young
	 	 	Title:	CEO

 

	 	 	ARC WORLDWIDE:
	 	 	ARC GROUP WORLDWIDE,
INC.
	 	 	 
	 	 	By:	/s/ Jason T. Young
	 	 	Name:	Jason T.
        Young
	 	 	Title:	CEO

 

	 	 	KECY:
	 	 	KECY
    CORPORATION     
	 	 	 
	 	 	By:	/s/
Raymond Cox
	 	 	Name:	Raymond Cox
	 	 	Title:	President

 

	 	 	ESCROW AGENT:
	 	 	WUERSCH & GERING LLP
	 	 	 
	 	 	By:	/s/
Travis L. Gering
	 	 	Name:	Travis L. Gering
	 	 	Title:	Partner

 

 

    	10ARC Group Worldwide 8-K 

 

Exhibit 10.36

 

EXECUTION VERSION

  

LEASE AGREEMENT

 

This Lease Agreement (this
“Agreement” or this “Lease”) made this 25th day of June, 2014, between 447 WALNUT,
LLC, an Ohio Limited Liability Company (“Lessor”) and ARC METAL STAMPING, LLC, a Delaware limited liability
company (“Lessee”).

 

In consideration of the
mutual covenants contained herein and intending to be legally bound hereby, the parties to this Agreement (the “Parties”)
hereto agree as follows:

 

1.         PREMISES.
Lessor is the owner of the property located at 447 East Walnut Street, Wauseon, Ohio 43567 (the “Premises”)
described in Exhibit A attached hereto and made a part hereof. Lessor hereby leases to Lessee the Premises.

 

2.         DELIVERY.
Lessor shall deliver the Premises to Lessee on the date hereof, in its “AS IS” condition.

 

3.         TERM; RENTAL.

 

a.         This Agreement shall
be effective as of the date of execution by both Parties and the initial term shall end ten (10) years from the date of this Agreement.
Rental for the initial term shall be at a base annual rental (“Base Rent”) of $48,000.00. All Base Rent and
other amounts due under this Agreement shall be paid in equal monthly installments on the first day of the month, in advance, to
Lessor at the address set forth in Paragraph 22 below, or to such other person, firm or place as Lessor may, from time to time,
designate in writing at least thirty (30) days in advance of any rental payment date in accordance with Paragraph 22 herein. Upon
agreement of the Parties, Lessee may pay Base Rent by electronic funds transfer and in such event, Lessor agrees to provide to
Lessee bank routing information for such purpose upon request of Lessee. The initial term and all extensions, if any, shall be
collectively referred to herein as the “Term.”

 

4.         TAXES. Lessor
shall pay all real estate taxes and assessments relating to the Premises; provided, however, the Base Rent shall be increased on
a dollar for dollar basis to reflect any increase in real estate taxes and assessments over the current tax year’s amount
(being tax year 2013).

 

5.         UTILITIES.Lessee
agrees to pay, before delinquent, all charges for public utility services which accrue with respect to the Premises during the
Term. Lessor shall not be liable for any failure of any of the public utilities to furnish any such services nor shall any failure
for any length of time of any one or more of the utility companies to furnish any such services make this Lease void or voidable
or constitute a ground upon which Lessee may terminate or otherwise abrogate this Lease or any of Lessee’s obligations hereunder,
unless such failure is due to any intentional act of Lessor.

 

    	 

    	 

    

 

6.         INSURANCE.

 

a.         Lessee, at its sole
cost and expense, shall at all times during the Term carry and maintain in full force and effect, for the mutual benefit of Lessor
and Lessee, general public liability insurance against claims for personal injury, death or property damage, occurring in, on or
about the Premises or in, on, or about the streets, sidewalks or premises adjacent to the Premises, with the following minimum
limits: (i) Two Million Dollars ($2,000,000.00) on account of bodily injuries to, or death of, one person; (ii) Two Million Dollars
($2,000,000.00) on account of injuries or death resulting from one accident or disaster; and (iii) Five Hundred Thousand Dollars
($500,000.00) on account of damages to property. The commercial general liability insurance policy shall include coverages for
premises-operations, independent contractors and broad contractual liability coverage in support of any indemnity provisions of
this Lease.

 

b.         Lessee, at its sole
cost and expense, shall, during the Term, keep the Premises insured against loss or damage by fire and all risks comprehended by
standard extended coverage endorsements in the amount of the replacement value.

 

c.         All insurance provided
for in this Lease shall be obtained from an insurance company or companies authorized to do business in the State of Ohio. Lessor
and any mortgagee of Lessor shall be named as an additional insured in such insurance policies as their respective interests appear.
Originals of the policies of such insurance or certificates thereof shall be delivered to Lessor on the execution of this Lease
and originals or renewals thereof or certificates thereof shall be delivered not less than thirty (30) days prior to the expiration
dates of the respective policies. In case Lessee shall at any time fail to obtain and maintain the insurance required by subparagraphs
(a) and (b) hereof, then Lessor may at its option procure or renew such insurance and any amounts paid therefor shall be immediately
due and payable, upon demand.

 

7.         USE; GOVERNMENT
APPROVALS.

 

a.         Lessee shall use
the Premises for the purpose of operating a manufacturing facility and uses incidental thereto. Lessee further covenants and agrees
that Lessee will not use, or permit any person to use the Premises for any purpose which indirectly or directly is forbidden by
law, ordinance, or governmental regulation or order, or which may be dangerous to life, limb or property, or which may invalidate
any policy of insurance carried on the Premises. Lessee covenants that Lessee shall procure and maintain all necessary licenses
and permits required in connection with the operation of Lessee’s business on the Premises.

 

b.         It is understood
and agreed that Lessee’s ability to use the Premises is contingent upon its obtaining after the execution date of this Agreement
all of the certificates, permits and other approvals (collectively the “Government Approvals”) that may be required
by any Federal, State or Local authorities. Lessor shall cooperate with Lessee in its effort to obtain such approvals (including
any proceedings in connection therewith) and shall take no action which would adversely affect the status of the Premises with
respect to the proposed use thereof by Lessee. In the event that any of such applications for such Government Approvals should
be finally rejected, Lessee shall have the right to terminate this Agreement. Notice of Lessee’s exercise of its right to terminate
shall be given to Lessor in writing by certified mail, return receipt requested, and shall be effective upon the mailing of such
notice by Lessee, or upon such later date as designated by Lessee. All rentals paid to said termination date shall be retained
by Lessor. Upon such termination, this Agreement shall be of no further force or effect except to the extent of the representations,
warranties and indemnities made by each Party to the other hereunder. Otherwise, the Lessee shall have no further obligations for
the payment of rent to Lessor.

 

    	2

    	 

    

 

8.         MAINTENANCE; ALTERATIONS.

 

a.         Lessee, at Lessee’s
sole cost and expense, shall maintain, repair and replace the entire Premises, including, but not limited to, all structural walls,
the foundation, and the roof in good order and repair, tenantable, and in a clean, safe, and healthy condition and in compliance
with all Laws, but excluding any items which are the responsibility of the Lessor pursuant to Paragraph 8.b below.

 

b.         During the Term, Lessor
shall (i) maintain, in good operating condition and repair the parking areas and the means of ingress and egress to the Premises,
(ii) promptly remove all excess accumulations of snow and ice from the parking areas and sidewalks and (iii) maintain any lawn
areas; provided, however, the Base Rent shall be increased on a dollar for dollar basis for the cost of such repairs or maintenance
and shall be billed to Lessee on a monthly basis.

 

c.         Lessee shall not make
alterations, modifications or other additions to or subtractions from the Premises which result in the Premises being non-conforming
or otherwise non-compliant with any Laws (“Prohibited Alterations”) or constitute a Prohibited Environmental
Alteration under Paragraph 28 herein. Except for the Prohibited Alterations and Prohibited Environmental Alteration, Lessee may
make such alterations, modifications, and changes to the Premises, inclusive of improvements therein, as may be proper, necessary
or desirable, in Lessee’s opinion, for the conduct of its operations or business and for the full beneficial use of the Premises
permitted herein (“Permitted Alterations”); provided, however, for any foundational or structural alteration,
or any alteration which affects the exterior appearance of the Premises, Lessee shall (i) furnish Lessor with complete plans and
specifications for the Permitted Alterations (“Plans”) which Plans shall be prepared and stamped/certified by
an architect or engineer licensed by the State of Ohio, (ii) obtain Lessor’s written consent to the Plans, which consent
shall not be unreasonably withheld, conditioned or delayed, (iii) pay all costs, expenses and charges relating to the preparation
and completion of the Plans and Permitted Alterations, and (iv) make the Permitted Alterations in accordance with the Plans, applicable
legal requirements and in a good and workmanlike manner. All Permitted Alterations, whether installed by Lessee or Lessor,
shall become Lessor’s property, and shall remain upon, and be surrendered with, the Premises without disturbance or injury
upon the termination of this Lease by lapse of time or otherwise, all without payment or credit to Lessee. Lessee shall have the
right to place in the Premises, at such locations therein as Lessee may from time to time determine, Lessee’s furniture,
standard equipment, and trade fixtures and such personal property shall be and remain the property of Lessee, and may be removed
by Lessee at any time during the Term of this Lease.

 

    	3

    	 

    

 

9.          INDEMNIFICATION.
Subject to Paragraph 11 below, each Party shall indemnify and hold the other harmless against any claim of liability or loss from
personal injury or property damage resulting from or arising out of the negligence or willful misconduct of the indemnifying Party,
its employees, contractors or agents, except to the extent such claims or damages may be due to or caused by the negligence or
willful misconduct of the other Party, or its employees, contractors or agents.

 

10.        WAIVER OF SUBROGATION.The
Parties hereby waive and release any and all rights of action for negligence against the other which may hereafter arise on account
of damage to the Premises resulting from any fire, or other casualty of the kind covered by insurance to the extent of any recovery
under a policy or policies of insurance. These waivers and releases shall apply between the Parties and they shall also apply to
any claims under or through either Parry as a result of any asserted right of subrogation. All such policies of insurance obtained
by either Party concerning the Premises shall waive the insurer’s right of subrogation against the other Party.

 

11.        LIMITATION OF
LIABILITY. Except for indemnifications set forth in this Lease, neither Party shall be liable to the other, or any of their
respective agents, representatives, employees for any lost revenue, lost profits, loss of technology, rights or services, incidental,
punitive, indirect, special or consequential damages, loss of data, or interruption or loss of use of service, even if advised
of the possibility of such damages, whether under theory of contract, tort (including negligence), strict liability or otherwise.

 

12.        ANNUAL TERMINATION.
Intentionally omitted.

 

13.        REMOVAL AT END
OF TERM. Lessee shall, upon expiration or earlier termination of this Agreement, remove its equipment, trade fixtures and all
personal property and restore the Premises to its original condition, reasonable wear and tear and casualty damage excepted. Lessor
agrees and acknowledges that all of the equipment, trade fixtures and personal property of Lessee shall remain the personal property
of Lessee and Lessee shall have the right to remove the same at any time during the Term, whether or not said items are considered
fixtures and attachments to real property under applicable Law. Any claims relating to the condition of the Premises must be presented
by Lessor in writing to Lessee within thirty (30) days after the termination or expiration of this Lease or Lessor shall be deemed
to have irrevocably waived any and all such claims.

 

14.        HOLDOVER.
Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of the Term,
unless the Parties are negotiating a new lease or lease extension in good faith. In the event that the Parties are not in the process
of negotiating a new lease or lease extension in good faith, Lessee holds over, then the Base Rent then in effect payable from
and after the time of the expiration of the Term shall be increased to one hundred twenty percent (120%) of the Base Rent applicable
during the month immediately preceding such expiration or earlier termination.

 

    	4

    	 

    

 

15.       RIGHT OF FIRST
REFUSAL; OPTION.

 

a.         If Lessor elects,
during the Term to (i) sell or otherwise transfer all or any portion of the Premises, whether separately or as part of a larger
parcel of which the Premises is a part, or (ii) grant to a third party by easement or other legal instrument an interest in and
to that portion of the Premises occupied by Lessee, or a larger portion thereof, with or without an assignment of this Agreement
to such third party, Lessee shall have the right of first refusal to meet any bona fide offer of sale or transfer on the same terms
and conditions of such offer. If Lessee fails to meet such bona fide offer, in writing, within ten (10) days after written notice
thereof from Lessor, Lessor may sell or grant the easement or interest in the Premises or portion thereof to such third person
in accordance with the terms and conditions of such third party offer. For purposes of this Paragraph, any transfer, bequest or
devise of Lessor’s interest in the Premises shall not be considered a sale of the Premises for which Lessee has any right of first
refusal.

 

b.         Lessee, as part of
the consideration herein, is hereby granted the exclusive right, option and privilege of purchasing the Premises (the “Option”),
in accordance with the terms and conditions set forth below. Provided, that Lessee is not then in default, Lessee may exercise
the Option by written notice to Lessor not more than ninety (90) days prior to the expiration of the Term. The Option, if not already
exercised, shall expire upon the earlier of the termination or expiration of the Term.

 

i.         The purchase price
for the Premises upon exercise of the Option shall be $50,000.00, payable in cash, certified check, or check at closing of the
Option exercise, as set forth below.

 

ii.        The Premises shall
also include all land, together with all improvements thereon, all appurtenant rights, privileges, easements, buildings, fixtures,
heating, electrical, plumbing and air conditioning fixtures and facilities.

 

iii.       Lessor shall
convey marketable title to the Premises with the above described inclusions, by good and sufficient general warranty deed in fee
simple absolute, on or before closing; said title to be free, clear, and unencumbered, subject to only to legal highways, governmental
ordinances, zoning ordinances, easements, reservations, agreements, conditions and restrictions of record and taxes and assessments.
Title shall be duly conveyed to Lessee and/or its assigns.

 

iv.       The deed shall
be delivered and the purchase price shall be paid at the title agency or other office of Lessee’s choice, no later than thirty
(30) days after the delivery of Lessee’s written notice notifying Lessor of Lessee’s exercise of the Option.

 

    	5

    	 

    

 

vi.       UPON CLOSING,
LESSOR SHALL SELL AND CONVEY TO LESSEE, AND LESSEE SHALL ACCEPT THE PREMISES “AS IS, WHERE IS, WITH ALL FAULTS.” LESSEE
WILL CONDUCT SUCH INVESTIGATIONS OF THE PREMISES, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF,
AS LESSEE DEEMS NECESSARY TO SATISFY ITSELF AS TO THE CONDITION OF THE PREMISES AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY
INFORMATION PROVIDED BY OR ON BEHALF OF LESSOR. UPON CLOSING, LESSEE SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT
NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY LESSEE’S
INVESTIGATIONS.

 

vii.      From and after
Closing, Lessee for itself, its successors and assigns, waives, releases, and forever discharges Lessor, its members, directors,
officers, employees, and agents, and their respective heirs, successors, personal representatives and assigns (collectively, the
“Released Parties”), of and from any and all causes of action, suits, legal or administrative proceedings, claims,
demands, actual damages, punitive damages, losses, costs, clean-up, removal or remediation costs, liabilities, injuries to persons,
including death, property or natural resources, interest, attorneys’ fees and expenses of whatever kind and nature, in law or in
equity, known or unknown (collectively, “Liabilities”), that Lessee ever had, now has, or in the future may
have, against any of the Released Parties, based upon, or arising directly or indirectly out of the use, maintenance, ownership
or operation of the Premises prior to closing.

 

viii.     The provisions
of this Paragraph 15 shall survive closing and delivery of the Deed.

 

16.        RIGHTS UPON SALE.
Should Lessor, at any time during the Term decide (i) to sell or transfer all or any part of the Premises to a purchaser other
than Lessee, or (ii) to grant to a third party by easement or other legal instrument an interest in and to that portion
of the Premises occupied by Lessee, or a larger portion thereof, such sale or grant of an easement or interest therein shall be
under and subject to this Agreement and any such purchaser or transferee shall recognize Lessee’s rights under the terms
of this Agreement.

 

17.        QUIET ENJOYMENT.
Lessor covenants that Lessee, on paying the Base Rent (and other amounts due pursuant to this Lease) and performing the covenants
herein, shall peaceably and quietly have, hold and enjoy the Premises.

 

18.        TITLE. Lessor
represents and warrants as of the date hereof and covenants during the Term that Lessor is seized of good and sufficient title
and interest to the Premises, has full authority to enter into and execute this Agreement without any other party’s approval, and
has taken all necessary action under its by-laws or other relevant documentation to approve this Agreement and has authorized the
signatories to sign same. Lessor further represents, covenants and warrants that there are no liens, judgments or impediments of
title on the Premises, or affecting Lessor’s title to the same and that there are no covenants, easements or restrictions or violations
which prevent or impede the use of the Premises by the Lessee as set forth above. Furthermore, the Premises is not designated a
landmark building or in a landmark district and has never been on any list of a Governmental authority requiring clean-up or closure
because of contamination by any hazardous materials.

 

    	6

    	 

    

 

19.        INTEGRATION.
It is agreed and understood that this Agreement contains all agreements, promises and understandings between Lessor and Lessee
and that no verbal or oral agreements, promises or understandings shall be binding upon either Lessor or Lessee in any dispute,
controversy or proceeding at law, and any addition, variation or modification to this Agreement shall be void and ineffective unless
made in writing signed by the Parties. In the event any provision of this Agreement is found to be invalid or unenforceable, such
finding shall not affect the validity and enforceability of the remaining provisions of this Agreement. The failure of either Party
to insist upon strict performance of any of the terms or conditions of this Agreement or to exercise any of its rights under this
Agreement shall not waive such rights and such Party shall have the right to enforce such rights at any time and take such action
as may be lawful and authorized under this Agreement, in law or in equity.

 

20.        GOVERNING LAW.
This Agreement and the performance thereof shall be governed, interpreted, construed and regulated by the laws of the State of
Ohio.

 

21.        ASSIGNMENT.
This Agreement may be sold, assigned or otherwise transferred by the Lessee without any approval or consent of the Lessor to the
Lessee’s principal, affiliates, subsidiaries of its principal or to any entity which acquires all or substantially all of Lessee’s
assets or to any entity which is the successor to Lessee by reason of a merger, acquisition or other business reorganization. As
to other parties, this Agreement may not be sold, assigned or transferred without the written consent of the Lessor, which such
consent will not be unreasonably withheld, delayed, or conditioned. No change of stock owner or corporate dissolution of Lessee
shall constitute an assignment hereunder. Notwithstanding any other provision of this Lease to the contrary, Lessee shall not be
relieved from any further liability or obligation accruing hereunder due to such assignment.

 

22.        NOTICES.
All notices hereunder must be in writing and shall be deemed validly given if sent by certified mail, return receipt requested
or by commercial courier, provided the courier’s regular business is delivery service and provided further that it guarantees delivery
to the addressee by the end of the next business day following the courier’s receipt from the sender, addressed as follows (or
any other address that the Party to be notified may have designated to the sender by like notice):

 

	 	Lessor:	447
Walnut, LLC
			Attn: Mr. David Zerbey, Member
	 	 	 
	 	 	 
			e-mail: DZerbey@kecycorporation.com

 

	 	with a copy to:	Eastman & Smith Ltd.
	 	 	One SeaGate, 24th Floor
	 	 	Toledo, Ohio 43604
	 	 	Attention: Jon B. Liebenthal, Esq.
	 	 	e-mail: jbliebenthal@eastmansmith.com

 

    	7

    	 

    

 

	 	Lessee:	ARC Metal Stamping,
LLC
	 	 	Attn:
Drew Kelley, Chief Financial Officer
	 	 	810
Flightline Blvd.
	 	 	Deland,
FL 32724
	 	 	e-mail: dkelley@arcgroupworldwide.com

 

	 	with a copy to:	Wuersch & Gering LLP
	 	 	100
Wall Street, 10th Floor
	 	 	New
York, NY 10005
	 	 	Attention:
Travis L. Gering, Esq.
	 	 	e-mail: travis.gering@wg-law.com

 

Notice shall
be effective upon actual receipt or refusal as shown on the receipt obtained pursuant to the foregoing.

 

23.        SUCCESSORS.
This Agreement shall extend to and bind the heirs, personal representative, successors and assigns of the Parties hereto.

 

24.        SUBORDINATION
AND NON-DISTURBANCE. Lessor shall obtain not later than fifteen (15) days following the execution of this Agreement, a Non-Disturbance
Agreement, as defined below, from its existing mortgagee(s), ground Lessor and master Lessor, if any, of the Premises. At Lessor’s
option, this Agreement shall be subordinate to any future master lease, ground lease, mortgage, deed of trust or other security
interest (a “Mortgage”) by Lessor which from time to time may encumber all or part of the Premises or right-of-way;
provided, however, as a condition precedent to Lessee being required to subordinate its interest in this Agreement
to any future Mortgage covering the Premises, Lessor shall obtain for Lessee’s benefit a non-disturbance and attornment agreement
for Lessee’s benefit in the form reasonably satisfactory to Lessee, and containing the terms described below (the “Non-Disturbance
Agreement”), and shall recognize Lessee’s right to remain in occupancy of and have access to the Premises as long as
Lessee is not in default of this Agreement beyond applicable notice and cure periods. The Non-Disturbance Agreement shall include
the encumbering party’s (“Lender’s”) agreement that, if Lender or its successor-in-interest or any purchaser
of Lender’s or its successor’s interest (a “Purchaser”) acquires an ownership interest in the Premises, Lender
or such successor-in-interest or Purchaser will (1) honor all of the terms of this Agreement and (2) fulfill Lessor’s obligations
under this Agreement. Such Non-Disturbance Agreement must be binding on all of its partnership interest or control and Lender’s
participants in the subject loan (if any) and on all successors and assigns of Lender and/or its participants and on all Purchasers.
In the event Lessor defaults in the payment and/or other performance of any mortgage or other real property interest encumbering
the Premises, Lessee, may, at its sole option and without obligation, cure or correct Lessor’s default and upon doing so, Lessee
shall be subrogated to any and all rights, titles, liens and equities of the holders of such mortgage or other real property interest
and Lessee shall be entitled to deduct and set off against all rents that may otherwise become due under this Agreement the sums
paid by Lessee to cure or correct such defaults.

 

    	8

    	 

    

 

25.        RECORDING.
Lessor agrees to execute a Memorandum of this Agreement, in form acceptable to the Parties, which Lessee may record with the appropriate
recording officer. The date set forth in the Memorandum of Lease is for recording purposes only and bears no reference to commencement
of either the Term or rent payments.

 

26.        DEFAULT.

 

a.         In the event there
is a breach by Lessee with respect to any of the provisions of this Agreement or its obligations under it, including the payment
of Base Rent (or any other amounts due pursuant to this Lease), Lessor shall give Lessee written notice of such breach. After receipt
of such written notice, Lessee shall have five (5) days in which to cure any monetary breach and thirty (30) days in which to cure
any non-monetary breach, provided Lessee shall have such extended period as maybe required beyond the thirty (30) days if the nature
of the cure is such that it reasonably requires more than thirty (30) days and Lessee commences the cure within the thirty (30)
day period and thereafter continuously and diligently pursues the cure to completion. Lessor may not maintain any action or effect
any remedies for default against Lessee unless and until Lessee has failed to cure the breach within the time periods provided
in this Paragraph.

 

b.         In the event there
is a breach by Lessor with respect to any of the provisions of this Agreement or its obligations under it, Lessee shall give Lessor
written notice of such breach. After receipt of such written notice, Lessor shall have thirty (30) days in which to cure any such
breach, provided Lessor shall have such extended period as may be required beyond the thirty (30) days if the nature of the cure
is such that it reasonably requires more than thirty (30) days and Lessor commences the cure within the thirty (30) day period
and thereafter continuously and diligently pursues the cure to completion. Lessee may not maintain any action or effect any remedies
for default against Lessor unless and until Lessor has failed to cure the breach within the time periods provided in this Paragraph.
Notwithstanding the foregoing to the contrary it shall be a default under this Agreement if Lessor fails, within five (5) days
after receipt of written notice of such breach, to perform an obligation required to be performed by Lessor if the failure to perform
such an obligation interferes with Lessee’s ability to conduct its business on the Premises; provided, however, that if the nature
of Lessor’s obligation is such that more than five (5) days after such notice is reasonably required for its performance, then
it shall note a default under this Agreement if performance is commenced within such five (5) day period and thereafter diligently
pursued to completion.

 

27.        REMEDIES.
Upon a default beyond all applicable notice and cure periods, the party not in default may at its option (but without obligation
to do so), perform the defaulting party’s duty or obligation on the defaulting party’s behalf, including but not limited
to obtaining insurance policies required hereunder. The costs and expenses of any such performance by the party not in default
shall be due and payable by by the defaulting party upon invoice therefor along with the additional fees as may be otherwise provided
in this Lease. In the event of a default beyond all applicable notice and cure periods, by either party with respect to a material
provision of this Agreement, without limiting the rights of the party not in default in the exercise of any right or remedy which
the party not in default may have by reason of such default, party not in default may terminate this Agreement and/or pursue any
remedy now or hereafter available under the laws or judicial decisions of the State of Ohio along with recovery of reasonable attorney’s
fees and court costs; provided, however, the party not in default shall use reasonable efforts to mitigate its damages in connection
with an uncured default by Lessee.

 

    	9

    	 

    

 

28.        ENVIRONMENTAL.

 

a.         Environmental Definitions.
For purposes of this Paragraph 28, the following capitalized terms shall have the meanings ascribed below:

 

“Environmental Law” means
any governmental law or statute, rule, regulation, permit, license, ordinance, code, policy or rule of common law now or hereafter
in effect, as may be amended from time to time, governing or relating in any way to the environment, natural resources, health,
safety or any Hazardous Substances.

 

“Hazardous Substances”
means (i) any toxic, radioactive, or dangerous substance, pollutant, contaminant, waste, material, or product; (ii) petroleum or
petroleum-derived product, radon gas, asbestos in any form that is or could become friable, urea formaldehyde foam insulation,
polychlorinated biphenyls (“PCBs”) or equipment that contains dielectric fluids containing PCBs; (iii) any substance,
gas, material, chemical, or product that is or may hereafter be defined as or included in the definition of “hazardous substances,”
“toxic substances,” “hazardous materials,” “hazardous wastes” or words of similar import
under any Environmental Law; and (iv) any other chemical, material, gas, vapor, radiation or substance, the exposure to or release
of which is or may hereafter be prohibited, limited or regulated by any governmental authority having jurisdiction over the Premises
or the operations or the authorized operations conducted on the Premises.

 

b.         Hazardous Substance
Compliance. Lessor acknowledges that Lessee may employ Hazardous substances in its operations. Lessee shall not cause any Hazardous
Substances to be treated, recycled, stored or disposed on the Premises that would require a treatment, storage, or disposal permit
under any Environmental Law. Lessee shall assume the responsibilities of “generator” for any regulated waste materials
generated on the Premises by its operations after the commencement date of this Lease.

 

Lessee shall promptly notify Lessor upon becoming
aware of any Hazardous Substance spill or release occurring subsequent to the commencement of this Lease in, on, under, or from
the Premises or threat of or reasonable suspicion of such spill or release, and shall take timely steps to investigate and/or remediate
the threatened, suspected, or actual spill or release as required to comply with Environmental Laws and/or this Paragraph 28.

 

c.         Environmental Law Compliance.
Lessee agrees to comply with all current or future Environmental Laws enacted by any jurisdiction, as well as all requirements
contained in this Paragraph 28. Lessee shall take immediate steps to correct any non-compliance with Environmental Laws or this
Paragraph 28. Lessee shall manage and, as appropriate, secure the Premises and its use of the Premises so as to prevent any violation
of Environmental Laws by any person on the Premises.

 

    	10

    	 

    

 

Notwithstanding the foregoing paragraph, Lessee
shall not install, use, or operate an “UST Facility” on the Premises without the prior written approval of Lessor,
which approval may be granted or denied in its sole discretion or may be conditioned at its discretion upon Lessee agreeing to
appropriate terms and conditions for the design, installation, and/or operation of such facility. “UST Facility” shall
include underground storage tanks, underground piping, dispensers, related underground and aboveground structures and equipment,
including, without limitation, spill containment features and oil/water separators, and the surrounding area used to operate same.

 

d.         Responsibility for
Condition of Premises. Lessee has conducted an Environmental Assessment of the Premises, the results of which are contained
in: (i) the Phase II Environmental Site Assessment, prepared by ASI Environmental Technologies, Inc. and dated May 23, 2014; and
(ii) the Analytical Laboratory Report of Merit Laboratories, Inc. dated June 20, 2014 (collectively the “Environmental Assessment
Data”).

 

Lessee shall have no responsibility or liability
for any Hazardous Substances identified in the Environmental Assessment Data, nor shall be responsible for any Hazardous Substances
which were spilled, released, discharged, or disposed of in, on, about, or adjacent to the Premises prior to the commencement of
the Lease. Lessee shall not take any actions without Lessor’s advanced approval to investigate, remediate or otherwise address
any releases or spills, or potential releases or spills, of Hazardous Substances occurring on the Premises before the commencement
of the Lease (“Prohibited Environmental Alterations”). Further, Lessee shall not notify or contact any governmental
entities or other third parties regarding releases or spills, or potential releases or spills, of Hazardous Substances occurring
on the Premises prior to the commencement of the Lease unless Lessee believes it is compelled to do so under Environmental Law
and has first provided Lessor with prompt notice of its potential disclosure so as to allow Lessor sufficient time to assess and
respond to Lessee’s disclosure claim and, as necessary and appropriate, to seek a protective order.

 

Lessee shall be solely responsible for investigating,
remediating, and otherwise responding to all other Hazardous Substances present and existing in, on, about, or from the Premises
during and through the date of termination of this Lease, regardless of when discovered

 

For purposes of assessing conditions at the
Premises and implementing this Paragraph 28, Lessor shall have the right, but not the obligation, upon reasonable notice and at
a reasonable time, to conduct at any time during the Term of this Lease a supplemental Environmental Assessment. If the results
of such supplemental Environmental Assessment identify a release of Hazardous Substances which is a violation of Environmental
Laws and is the responsibility of Lessee, then Lessee shall promptly undertake all actions necessary to address the release of
Hazardous Substances and remedy the violation of Environmental Laws. If the results of such supplemental Environmental Assessment
identify a release of Hazardous Substances which is a violation of Environmental Laws and is the responsibility of Lessor, then
Lessor shall promptly undertake all actions necessary to address the release of Hazardous Substances and remedy the violation of
Environmental Laws.

 

    	11

    	 

    

 

e.         Cooperation with Lessor.
Lessee agrees to cooperate with Lessor in Lessor’s efforts to comply with applicable Environmental Laws relating to the Premises.
Lessee further agrees to grant access to Lessor, after reasonable notice and at a reasonable time, to enter the Premises to undertake
inspections, evaluations, testing, or other activities, including without limitation, an Environmental Assessment, necessary to
facilitate Lessor’s compliance with Environmental Laws, and/or to inspect and evaluate Lessee’s management of Hazardous
Substances and/or compliance with Environmental Laws and this Paragraph 28.

 

f.         Environmental Indemnification.
The parties shall provide each other with copies of all communications regarding the Premises from any governmental agency relating
to any any claim relating to any release or threatened release of Hazardous Substances on the Premises, whether arising before
or after the commencement date of this Lease. (each, an “Environmental Claim”).

 

i.         Lessee shall defend,
indemnify and hold harmless Lessor from and against all obligations, losses, claims, suits, judgments, liabilities, penalties,
damages, costs and expenses arising from third party claims (including reasonable attorneys’ and consultants’ fees
and expenses) of any kind or nature whatsoever that may be incurred by, or asserted against Lessor, resulting from (i) the actual
or alleged presence of Hazardous Substances on the Premises arising after the commencement date of this Lease for which Lessee
has responsibility and liability under this Paragraph 28 and (ii) any Environmental Claim relating to Lessee’s use of the
Premises, including, without limitation, any violations or alleged violations of Environmental Laws. The indemnification set forth
in this Paragraph 28(i) shall survive expiration or termination of this Lease.

 

ii.        Lessee’s right
of defense and indemnity from (i) the actual or alleged presence of Hazardous Substances on the Premises arising prior to the commencement
date of this Lease and (ii) any Environmental Claim relating to the use of the Premises prior to the commencement date of this
Lease, including, without limitation, any violations or alleged violations of Environmental Laws shall be governed solely by Article
IX of that certain Asset Purchase Agreement by and between Kecy Corporation, 4111 Munson Holding, LLC and ARC Metal Stamping, LLC,
dated June 25, 2014.

 

29.        CASUALTY.
In the event of damage by fire or other casualty to the Premises that cannot reasonably be expected to be repaired within one hundred
twenty (120) days following same or, then Lessee may terminate this Agreement upon fifteen (15) days prior written notice to Lessor.
Otherwise, Lessee shall repair, restore or rebuild the Premises to its condition immediately prior to such casualty using the proceeds
of any insurance. Lessor shall not be required to contribute any amounts to such repair, restoration or rebuilding. Any such notice
of termination shall cause this Agreement to expire with the same force and effect as though the date set forth in such notice
were the date originally set as the expiration date of this Agreement and the Parties shall make an appropriate adjustment, as
of such termination date, with respect to payments due to the other under this Agreement. Notwithstanding the foregoing, the rent
shall abate during the period of repair following such fire or other casualty in proportion to the degree to which Lessee’s use
of the Premises is impaired.

 

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30.        CONDEMNATION.
In the event of any condemnation of all or any portion of the Premises, this Agreement shall terminate as to the part so taken
as of the date the condemning authority takes title or possession, whichever occurs first. If as a result of a partial condemnation
of the Premises, Lessee, in Lessee’s discretion, is unable to use the Premises for the purposes intended hereunder, or if
such condemnation may reasonably be expected to disrupt Lessee’s operations at the Premises for more than forty-five (45) days,
Lessee may, at Lessee’s option, to be exercised in writing within fifteen (15) days after Lessor shall have given Lessee written
notice of such taking (or in the absence of such notice, within fifteen (15) days after the condemning authority shall have taken
possession) terminate this Agreement as of the date the condemning authority takes such possession. Lessee may on its own behalf
make a claim in any condemnation proceeding involving the Premises for losses related to the equipment, conduits, fixtures, its
relocation costs and its damages and losses. Any such notice of termination shall cause this Agreement to expire with the same
force and effect as though the date set forth in such notice were the date originally set as the expiration date of this Agreement
and the Parties shall make an appropriate adjustment as of such termination date with respect to payments due to the other under
this Agreement. If Lessee does not terminate this Agreement in accordance with the foregoing, this Agreement shall remain in full
force and effect as to the portion of the Premises remaining, except that the rent shall be reduced in the same proportion as the
rentable area of the Premises taken bears to the total area of the Premises. In the event that this Agreement is not terminated
by reason of such condemnation, Lessor shall promptly repair any damage to the Premises caused by such condemning authority.

 

31.        SUBMISSION OF
AGREEMENT / PARTIAL INVALIDITY / AUTHORITY. The submission of this Agreement for examination does not constitute an offer to
lease the Premises and this Agreement becomes effective only upon the full execution of this Agreement by the Parties. If any provision
herein is invalid, it shall be considered deleted from this Agreement and shall not invalidate the remaining provisions of this
Agreement. Each of the Parties hereto warrants to the other that the person or persons executing this Agreement on behalf of such
Party has the full right, power and authority to enter into and execute this Agreement on such Party’s behalf and that no
consent from any other person or entity is necessary as a condition precedent to the legal effect of this Agreement.

 

32.        MISCELLANEOUS.
The parties acknowledge that each has had an opportunity to review and negotiate this Lease and have executed this Lease only after
such review and negotiation. The parties further agree that this Lease shall be deemed to have been drafted by both Lessor and
Lessee and the terms and conditions contained herein shall not be construed any more strictly against one party or the other.

 

33.        SURVIVAL.
The provisions of this Agreement relating to indemnification from one Party to the other Party shall survive any termination
or expiration of this Agreement. Additionally, any provisions of this Agreement which require performance subsequent to the termination
or expiration of this Agreement shall also survive such termination or expiration.

 

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34.        CAPTIONS.
The captions contained in this Agreement are inserted for convenience only and are not intended to be part of this Agreement. They
shall not affect or be utilized in the construction or interpretation of this Agreement.

 

35.        ENCUMBRANCES.
The parties expressly covenant and agree that nothing in this Lease shall authorize Lessee to do any act which shall in any way
encumber the title of Lessor in and to the Premises. Lessee shall not permit any mechanics’, laborers’, materialmens’
or other liens to stand against the Premises for any labor or material furnished or claimed to have been furnished in connection
with work of any character performed or claimed to have been performed on, or pertaining to, the Premises, whether such work was
performed or materials furnished prior or subsequent to the date of this Lease. Nor shall the interest or estate of Lessor in the
Premises be in any way subjected to any claim by way of lien or encumbrance, whether by operation of law or by virtue of any express
or implied contract by Lessee. Any claim to or lien upon the Premises arising from any acts or omissions of Lessee shall in all
respects be subject and subordinate to the paramount title and rights of Lessor in and to the Premises. Lessee shall have the right
to contest the validity of any such lien or claimed lien, if Lessee shall give to Lessor such reasonable security as may be requested
by Lessor to insure payment thereof and to prevent any sale, foreclosure or forfeiture of the Premises by reason of nonpayment.
On final determination of the lien or claim of lien, Lessee shall immediately pay any judgment rendered with all proper costs and
charges and shall, at Lessee’s own cost and expense, have the lien released and any judgment satisfied.

 

36.        ESTOPPEL CERTIFICATES.
Lessee and Lessor agree at any time and from time to time, upon not less than ten (10) days prior written request from the other,
to execute, acknowledge and deliver to the other, a statement in writing certifying that this Lease is unmodified and in full force
and effect (or if there have been modifications, that the same is in full force and effect as modified and stating the modifications)
and that there are no uncured defaults hereunder, if such statement of fact shall be true or, if there be uncured defaults, stating
the same, and the dates to which the Base Rent and other charges have been paid in advance. It is intended that any such statement
delivered pursuant to this Paragraph may be relied upon by any prospective purchaser of the fee simple title to the Premises or
any mortgagee under any mortgage or the beneficiary of any deed of trust upon the fee of the Premises or upon Lessee’s leasehold
interest created by this Lease, or any assignee of the Lessor’s or Lessee’s interest in this Lease, any regulatory
authority, or third-party providing financing to Lessee or any affiliate of Lessee. Lessor further agrees to promptly execute and
deliver to Citizens Bank, N.A., its successors and assigns, and / or any other creditor of the Lessee (each, a “Creditor”),
upon not less than ten (10) days prior written request from Lessee, such Creditor’s customary landlord estoppels letter and
/ or bailee letter, in such form and substance as reasonably requested by such Creditor.

 

[Signature page follows]

 

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IN WITNESS
WHEREOF, the Parties hereto have set their hands and affixed their respective seals the day and year first above written.

 

		LESSOR:

447 WALNUT, LLC
	 	 	 
	 	By:	/s/ David Zerbey
	 	 	Name: David Zerbey
	 	 	Title: Manager
	 	 	 
	 	LESSEE:
 ARC METAL STAMPING, LLC
	 	 	 
	 	By:	/s/ Drew Kelley
	 	 	Name: Drew Kelley
	 	 	Title: Chief Financial Officer

 

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EXHIBIT
“A”

 

Premises Description

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