Document:

Exhibit 10.2

 

SERVICES AGREEMENT

This SERVICES AGREEMENT (this “Agreement”), effective as of January 2, 2019 is entered into by and among STAR PROCUREMENT, LLC, a Delaware limited liability Company (the “Company”) and KBS Builders, Inc. a Delaware Corporation (“KBS”). The Company and KBS are sometimes are referred to in this Agreement collectively as the “Parties” and individually as a “Party”.  Capitalized terms used in this Agreement but not otherwise defined in this Agreement will have the meanings set forth in the LLC Agreement (defined below).

RECITALS

WHEREAS, ATRM Holdings, Inc., a Minnesota corporation (“ATRM”) and Digirad Corporation, a Delaware corporation (“Digirad”) are the sole members of the Company, and together with the Company are parties to that certain Limited Liability Company Agreement of the Company dated the date hereof (the “LLC Agreement”); and

WHEREAS, the Company was formed for purposes of creating a joint venture in which the Company will purchase and sell building materials and related goods and entry into this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and agreements contained in this Agreement, and intending to be legally bound hereby, the Parties agree as follows:

1.    DEFINITIONS

1.1    “Services” means the services, functions, and tasks to be provided by the Company to KBS pursuant to this Agreement as described in the Service Schedule, as such services, functions and tasks may be changed or supplemented pursuant to the terms of this Agreement.

1.2    “Service Schedule” means a Schedule to this Agreement, describing (among other things) the particular Services being provided and the timing for such Services.

		
	
        2.
	
        SERVICES

2.1    Performance of Services.  Subject to the other terms and conditions of this Agreement, KBS hereby grants the Company the right of first refusal to provide the Services to KBS (and, as necessary, its subsidiaries) during the Term (defined below) in accordance with and subject to the terms and conditions of this Agreement.  Upon the mutual written agreement of the Parties, the Parties may modify the Services described on the existing Service Schedule or add additional Services to be performed by the Company.  The Company has no obligation to provide any services other than the Services.  

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2.2    First Refusal Right.  KBS shall provide written notice to the Company containing all of the terms and conditions of the required Services (a “Service Notice”), and the Company shall be entitled to provide such Services on such (or better) terms and conditions.  If the Company intends to exercise its first refusal right, it must deliver to KBS a commitment (a “Service Commitment”) to do so as soon as practicable and in no event later than thirty (30) days after receipt of the Service Notice from KBS or its subsidiaries.  If the Company fails to provide a Service Commitment within the 30-day period or waives its first refusal right prior to that time, then KBS will be free to obtain such Services from any third party.  All Services to be provided by the Company pursuant to this Agreement shall be provided by the Company in its sole discretion.

2.3    Affiliates and Subcontractors.  The Company may use personnel of its Affiliates, or engage, consistent with past practice, the services of third parties to provide or assist the Company (or its Affiliates) to provide the Services.

2.4    Standard of Performance.  Notwithstanding anything to the contrary in this Agreement, KBS understands and agrees that the standard of performance to which the Company and its Affiliates will be accountable under this Agreement will be to achieve a comparable level of service as KBS achieved with respect to the Services during the twelve (12) months prior to the date hereof.

2.5    Additional Resources and Consents.  Notwithstanding anything to the contrary in this Agreement, the Company shall not be required to perform any Service if doing so would require the Company to violate any law or breach any contract by which the Company or its Affiliates are bound.  In addition and without limiting the foregoing, if the Company reasonably believes that performance of a particular Service requires the Company to obtain any third-party licenses or consents, or any software, technology or other goods, services or materials not already in the Company’s possession, then the Company shall promptly inform KBS, and KBS shall cooperate with the Company to obtain such licenses, consents or other or items at KBS’s sole expense if so requested by KBS.  If KBS does not agree to pay the costs associated with obtaining such licenses, consents or other items, the Company shall be under no obligation to obtain such licenses, consents or other or items.

2.6    Cooperation.  In order to enable the Company to perform the Services, KBS shall provide the Company with such cooperation and assistance (including access to employees) as is reasonably necessary for the Company or its Affiliates or contractors to timely perform the Services, as well as such other cooperation and assistance as the Company reasonably requests in connection with the provision of the Services hereunder.

2.7    Employees.  The Parties agree that the employees and contractors of the Company providing the Services are the employees and contractors of the Company alone, and are not the employees or contractors of KBS for any purpose whatsoever.

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        3.
	
        PAYMENT TERMS

3.1    Fees and Costs.  

(a)    Unless otherwise set forth in the Service Schedule, KBS shall reimburse the Company, on a monthly basis in accordance with Section 0, for the Company’s actual cost (excluding the Materials Purchase Amounts (defined below)) in providing the Services (the “Service Fees”).

(b)    Unless otherwise set forth in the Service Schedule, KBS shall pay the Company for all Building Materials, on a monthly basis in accordance with Section 0, a purchase price equal to the full cost of Building Materials (as defined in the Service Schedule) (excluding any Service Fees) during such period, plus 3% of the cost of such Building Materials. The amount(s) payable pursuant to this Section 3.1(b) is referred to herein as the “Materials Purchase Amount(s).”

3.2    Invoicing and Payment.  Each calendar month during the Term, the Company shall issue to KBS an invoice for the amount of the Service Fees and the Materials Purchase Amounts payable to Company for the Services rendered during that month.  KBS shall pay the amount invoiced by the Company within thirty (30) days after receipt thereof.  All payments made pursuant to this Section 3.2 must be made in U.S. Dollars, by wire transfer of immediately available funds to the bank account previously designated by the Company to KBS.  The amount of any due but unpaid Service Fees and Materials Purchase Amounts shall bear interest from and including the due date of such fees to, and including, the date of payment at a rate per annum equal to 5%.  Such interest shall be calculated daily on the basis of a 365-day year and the actual number of days elapsed, without compounding

3.3    Taxes.  The fees for Services provided pursuant to this Agreement exclude all excise, sales, use, gross receipts, value added, goods and services or similar transaction or revenue-based taxes (excluding any income Taxes) applicable to the provision of the Services and imposed by any federal, state, or local taxing authority (such taxes, together with any applicable interest, penalties, or additions to tax imposed with respect to such taxes, “Taxes”), and KBS shall be responsible for payment of all such Taxes.

3.4    Expenses.  Except as otherwise expressly provided in this Agreement, each Party shall bear its own costs and expenses incurred in the performance of this Agreement.

		
	
        4.
	
        PROPRIETARY RIGHTS.  This Agreement and the performance of this Agreement will not affect the ownership of any intellectual property rights.  No Party will gain, by virtue of this Agreement, any rights of ownership of any rights related to the intellectual property owned by any other Party.

		
	
        5.
	
        CONFIDENTIALITY.  Each Party shall keep any confidential or proprietary information of the other Party acquired pursuant to or in connection with this Agreement strictly confidential.

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6.    INDEMNIFICATION; LIMITATIONS OF LIABILITY

6.1    Indemnification.  Each Party agrees to protect, defend, indemnify and hold harmless each other Party from and against any and all losses, claims, suits and actions (whether threatened or pending) arising out of or related to any (a) breach of any covenant or obligation of such Party contained in this Agreement or (b) negligence or willful misconduct of such Party or its employees or agents in connection with the performance of the Services hereunder.  The rights to indemnification hereunder shall be in addition to any rights to indemnification that a Party may have under the LLC Agreement.

		
	
        7.
	
        TERM AND TERMINATION

7.1    Term of Agreement.  The term of this Agreement begins on the date hereof and will continue until terminated in accordance with the terms hereof (the “Term”).

7.2    Termination of Service.  This Agreement shall automatically terminate upon the dissolution and winding-up of the Company pursuant to the LLC Agreement, or upon the written agreement of all Parties to the termination of this Agreement or the Services.  If a Party breaches this Agreement, the other Party may terminate upon 30 days prior written notice if such breach is not cured.

7.3    Effect of Termination.  Upon expiration or termination of this Agreement for any reason, the Company shall no longer be obligated to provide the terminated Services, and KBS shall no longer be obligated to pay for such Services, except with respect to any Service Fees and Materials Purchase Amounts incurred up to the date of termination or expiration (all such fees, including any applicable late fees, will become immediately due and payable by KBS to the Company upon the effective date of such termination).  

7.4    Survival.  The following provisions of this Agreement will survive its termination or expiration: Sections 1, 3 (with respect to Services performed prior to termination or expiration), 4, 5, 6, 7.3, 7.4 and 8.

		
	
        8.
	
        MISCELLANEOUS. 

8.1    Notices. Any and all notices, requests, demands or other communications required to be given pursuant to this Agreement by any Party shall be in writing and shall be validly given or made to the applicable Party if served personally, by overnight mail, by nationally recognized overnight courier or sent by electronic mail, receipt confirmed. If the notice, request, demand or other communications are served personally, service shall be conclusively deemed made at the time of service. If the notice, request, demand or other communications are sent by electronic mail, service shall be conclusively deemed made the first (1st) business day following successful transmission or upon confirmation of receipt from the recipient. If the notice, demand or other communications are given by overnight mail, service shall be conclusively deemed made one (1) business day after sent in the United States mail, addressed to the applicable Party to whom the notice, demand or other communication is to be given, and when received if delivered by hand or 

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overnight courier service on any business day. Notices shall be provided to the following addresses (any of which may be changed upon like notice to the other Parties):

If to KBS to:

KBS BUILDERS, INC. 
300 Park St. 
South Paris, ME 04281 
Attention:  Matt Mosher 
Telephone: (207) 744-0402 
Fax:  (207) 739-2223 
Email: mmosher@kbs-homes.com

If to the Company to:

STAR PROCUREMENT, LLC

1048 Industrial Court

Suwanee, GA 30024

Attention:  Matthew G. Molchan

Telephone: 858-726-1600

Fax:  858-726-1700

Email: Matt.Molchan@digirad.com

8.2    Assignment. No Party may assign this Agreement or its rights or obligations hereunder, in whole or in part, voluntarily or by operation of law, without the written consent of the other Party, and any attempted assignment without such consent shall be void and without legal effect.

8.3    Amendment and Modification; Waiver. This 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. No waiver by any Party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

8.4    Entire Agreement. This Agreement (including the schedule attached hereto) constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

8.5    Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. 

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A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

8.6    Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction).

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IN WITNESS WHEREOF, the undersigned have caused this Services Agreement to be executed by their duly authorized representatives as of the day and year first set written above.

	
				
	 
	STAR
                                         PROCUREMENT, LLC

	 
	 

	 
	By:
	/s/
                                         David J. Noble

	 
	 
	Name:
	David J. Noble
 
	 
	 
	Title:
	Manager

	 
	 

	 
	 

	 
	STAR
                                         PROCUREMENT, LLC

	 
	 

	 
	By:
	/s/
    Stephen Clark

	 
	 
	Name:
	Stephen Clark

	 
	 
	Title:
	Manager

	 	 	 	 
	 	 	 	 
	 	KBS BUILDERS, INC.
	 	 	 	 
	 	By:	 
    /s/ Daniel M. Koch
	 	 	Name:	Daniel M. Koch
	 	 	Title:	President

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[Signature Page to Services Agreement]

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SERVICE SCHEDULE

		
	
        1.
	
        Services.  

KBS shall submit a Service Notice to the Company for ALL Building Materials required by KBS and is subsidiaries in the conduct of their respective businesses.

Subject to the Company’s right of first refusal set forth on Section 2.2 of the Agreement, the Company shall source and purchase from a supplier (the “Materials Supplier”) all Building Materials requested by KBS in Service Notices and arrange for such materials to be delivered directly to KBS or its subsidiaries, as directed. 

For purposes of this Agreement, “Building Materials” shall mean any and all goods, products, raw materials and similar items used to manufacture, produce, construct and/or build modular building unites (including, but not limited to, single-family homes, apartment buildings, condominiums, and other commercial structures).

		
	
        2.
	
        Additional Terms Related to Services.

KBS shall bear the risk of loss of all Building Materials upon any transfer of such risk by the Materials Supplier, even if related Materials Purchase Amounts are unpaid.  In no event shall the Company bear the risk of loss for any Building Materials.Exhibit 10.3

 

 

 

 

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

dated as of April 1, 2019

by and among

ATRM HOLDINGS, INC., a Minnesota corporation,

LONE STAR VALUE MANAGEMENT, LLC, a Connecticut limited liability company,

 

and

JEFFREY E. EBERWEIN

     

     

    

 

 

 

 

 

	ARTICLE I   PURCHASE AND SALE	1
	Section 1.1   Purchase and Sale of the Membership Interests	1
	Section 1.2   Working Capital Adjustment	2
	Section 1.3   Closing	2
	ARTICLE II   REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE MEMBER	3
	Section 2.1   Organization, Etc	3
	Section 2.2   Capitalization	3
	Section 2.3   Authority Relative to this Agreement	3
	Section 2.4   Consents and Approvals; No Violations	4
	Section 2.5   Financial Statements	4
	Section 2.6   No Undisclosed Liabilities; Discharge of Obligations	4
	Section 2.7   Compliance with Law	4
	Section 2.8   Material Contracts	5
	Section 2.9   Litigation	5
	Section 2.10   Taxes	5
	Section 2.11   Owned and Leased Properties	6
	Section 2.12   Intellectual Property; Personal Information	7
	Section 2.13   Insurance	7
	Section 2.14   Environmental Laws	7
	Section 2.15   Employee and Labor Matters	8
	Section 2.16   Employee Plans	8
	Section 2.17   Brokers and Finders	9
	Section 2.18   Absence of Questionable Payments	9
	Section 2.19   Books and Records	10
	Section 2.20   Bank Accounts; Powers of Attorney	10
	Section 2.21   Certain Transactions	10
	ARTICLE III   REPRESENTATIONS AND WARRANTIES OF THE MEMBER	10
	Section 3.1   Ownership of Membership Interests	10
	Section 3.2   Authority Relative to this Agreement	11
	Section 3.3   Consents and Approvals; No Violations	11
	Section 3.4   Litigation	11
	Section 3.5   Brokers and Finders	11
	ARTICLE IV   REPRESENTATIONS AND WARRANTIES OF THE BUYER	11
	Section 4.1   Corporate Organization, Etc	11
	Section 4.2   Authority Relative to this Agreement	12

 

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	Section 4.3   Consents and Approvals; No Violations	12
	Section 4.4   Financial Statements	12
	Section 4.5   Compliance with Law	12
	Section 4.6   Litigation	13
	Section 4.7   Brokers and Finders	13
	Section 4.8   Insurance	13
	Section 4.9   Environmental Laws	13
	ARTICLE V   COVENANTS	13
	Section 5.1   Public Announcements	13
	Section 5.2   Tax Covenants	13
	ARTICLE VI   INDEMNIFICATION	15
	Section 6.1   Indemnification	15
	ARTICLE VII   MISCELLANEOUS	17
	Section 7.1   Entire Agreement; Binding Effect; Assignment	17
	Section 7.2   Notices	17
	Section 7.3   Governing Law; Waiver of Jury Trial	18
	Section 7.4   Expenses	18
	Section 7.5   Severability	18
	Section 7.6   Specific Performance	19
	Section 7.7   Counterparts	19
	Section 7.8   Interpretation	19
	Section 7.9   Amendment and Modification; Waiver	19
	Section 7.10   Legal Counsel	20
	Section 7.11   Definitions	20

 

 

    	ii

     

    

MEMBERSHIP INTEREST PURCHASE AGREEMENT

THIS MEMBERSHIP INTEREST
PURCHASE AGREEMENT (this “Agreement”), dated as of April 1, 2019, is by and among ATRM HOLDINGS, INC., a Minnesota
corporation (the “Buyer”), LONE STAR VALUE MANAGEMENT, LLC, a Connecticut limited liability company (the “Company”),
and JEFFREY E. EBERWEIN, the sole member of the Company (the “Member”).

RECITALS

WHEREAS, as of the
date of this Agreement, 100% of the issued and outstanding membership interests of the Company (the “Membership Interests”)
are owned by the Member;

WHEREAS, the parties
desire to enter into this Agreement to provide for the acquisition by the Buyer of the Company through the purchase by the Buyer
from the Member of all of the Membership Interests, effective as of January 1, 2019 for accounting purposes;

WHEREAS, the Buyer
issued a promissory note dated December 17, 2018 in the principal amount of $300,000.00 for benefit of the Company in exchange
for the same amount in cash, with any then accrued and unpaid interest and any other amounts payable under such note due and payable
on November 30, 2020 (the “Buyer Note”);

WHEREAS, the Member
currently serves as Chairman of the Buyer’s Board of Directors and directly owns 418,017 shares of the Buyer’s common
stock (the “Buyer Common Stock”), or approximately 17% of the shares outstanding, and may be deemed to beneficially
own (i) 374,561 shares of the Buyer’s 10.00% Series B Cumulative Preferred Stock (the “Buyer Series B Stock”)
and unsecured promissory notes with aggregate principal and interest outstanding in the amount of $1,505,031 held by Lone Star
Value Co-Invest I, LP (“LSV Co-Invest I”), and (ii) 222,577 shares of Buyer Series B Stock held by Lone Star
Value Investors, LP (“LSVI”), due to the Member’s status as the general partner of LSVI and LSV Co-Invest
I; and

WHEREAS, the Buyer’s
entry into this Agreement and the consummation of the Contemplated Transactions (as defined below) were approved by the independent
members of the Buyer’s Board of Directors.

AGREEMENT

NOW, THEREFORE, in
consideration of the foregoing premises and the representations, warranties, covenants and agreements herein contained, and intending
to be legally bound hereby, the parties hereto hereby agree as follows:

ARTICLE
I

PURCHASE AND SALE

Section 1.1
Purchase and Sale of the Membership Interests. Upon the terms and subject to the conditions of this Agreement, the
Member agrees to sell to the Buyer, and the Buyer agrees to purchase from the Member, all of the Membership Interests at the Closing
(the “Membership Interest Purchase”), with such transaction deemed effective as of January 1, 2019 for accounting
purposes. The aggregate purchase price for the Membership Interests shall be $100.00, subject to adjustment as provided in Section
1.2.

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Section 1.2
Working Capital Adjustment.

(a)
The Member has delivered to the Buyer a statement setting forth the Member’s determination of Working Capital as of
immediately prior to January 1, 2019 (the “Working Capital Statement”), which Working Capital Statement contains
all information reasonably necessary to determine Working Capital as of immediately prior to January 1, 2019, includes appropriate
supporting documentation, and is certified by the Member to be true and correct. “Working Capital” shall mean
the total current assets of the Company less than total current liabilities of the Company, each as determined in accordance with
generally accepted accounting principles in the United States of America, consistently applied; provided, however, any accrued
and unpaid interest and any other amounts payable under the Buyer Note shall be deemed to constitute a current asset of the Company
to be reflected in the calculation of Working Capital.

(b)
The Buyer shall give written notice to the Member of any objection to the Working Capital Statement (the “Objection
Notice”) within thirty (30) days after the Closing Date. The Objection Notice shall specify in reasonable detail the
items in the Working Capital Statement to which the Buyer objects and shall provide a summary of reasons for such objections. In
the event the Buyer does not deliver the Objection Notice within such thirty (30) day period, the Member’s determination
of Working Capital as set forth in the Working Capital Statement shall be deemed to be final and binding on the Buyer.

(c)
The Buyer and the Member shall use good faith efforts to resolve any dispute involving any matter set forth in the Objection
Notice. If the parties are unable to resolve any dispute involving any matter set forth in the Objection Notice within thirty (30)
days after receipt by the Member thereof, such dispute shall be referred for decision to a nationally recognized independent accounting
firm chosen by the Buyer and reasonably acceptable to the Member (the “Accounting Firm”) to decide the dispute
within thirty (30) days of such referral. The scope of the Accounting Firm’s engagement shall be limited to the resolution
of the disputed items described in the Objection Notice that the Member and the Buyer are unable to resolve, and the recalculation,
if any, of the Working Capital in light of such resolution. The decision by the Accounting Firm with respect to such disputed items
shall be final and binding on the Member and the Buyer and shall be based upon a review of any relevant books and records or other
documents requested by the Accounting Firm. The cost of retaining the Accounting Firm shall be borne equally by the Member and
the Buyer.

(d)
If the Working Capital as of immediately prior to January 1, 2019, as finally determined in accordance with this Section
1.2, is greater than $0.00, then the Buyer shall pay the difference to the Member by the later of (x) fifteen (15) days after
its final determination and (y) June 30, 2019, by wire transfer of immediately available United States funds into such accounts
as shall have been designated by the Member in writing to the Buyer. If the Working Capital as of immediately prior to January
1, 2019, as finally determined, is less than $0.00, then the Member shall pay the difference to the Buyer by the later of (x) fifteen
(15) days after its final determination and (y) June 30, 2019, by wire transfer of immediately available United States funds into
such account or accounts as shall have been designated by the Buyer in writing to the Member.

Section 1.3
Closing.

(a)
Subject to the terms and conditions of this Agreement, the consummation of the Contemplated Transactions (the “Closing”)
shall take place simultaneously with the execution and delivery of this Agreement, and the date and time of the completion of the
foregoing shall be deemed the “Closing Date”. The Closing shall take place via the electronic exchange of documents
and signatures. The Closing shall be deemed effective as of 11:59 p.m., Eastern Time, on the Closing Date.

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(b)
At the Closing, the Member will deliver to the Buyer good and valid title to the Membership Interests, free and clear of
all Encumbrances other than Permitted Liens (if any), together with an executed form of assignment for the Membership Interests
in a form reasonably acceptable to the Buyer.

ARTICLE
II

REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE MEMBER

Except as set forth
in the Company’s disclosure schedule provided herewith (the “Company Disclosure Schedule”), the Company
and the Member, jointly and severally, hereby represent and warrant to the Buyer, as of the date hereof and as of the Closing Date,
except to the extent certain representations and warranties are limited to a certain date set forth in the applicable section,
as follows:

Section 2.1
Organization, Etc. The Company is duly formed, validly existing and in good standing under the Laws of the State
of Connecticut and has all requisite limited liability company power and authority to conduct its business as it is now being conducted
and to own, lease and operate its properties and assets. The Company is qualified to do business and is in good standing in each
jurisdiction in which the ownership of its properties or the conduct of its business requires such qualification, except where
the failure to be so qualified or in good standing would not, individually or in the aggregate, could not reasonably be expected
to have a Company Material Adverse Effect. True and complete copies of the organizational and governing documents of the Company
as presently in effect have been heretofore made available to the Buyer. The Company is not in violation of any term or provision
of its organizational or governing documents. The Company does not have, and has never had, any subsidiaries.

Section 2.2
Capitalization. The Member is the sole member of the Company and the owner of all outstanding Membership Interests.
All outstanding Membership Interests were duly authorized, validly issued, fully paid and non-assessable, and issued free from
preemptive rights and in compliance with all applicable securities Laws. There are no outstanding (a) securities convertible into
or exchangeable for Membership Interests of the Company, (b) options, warrants or other rights to purchase or subscribe for securities
of the Company, or (c) contracts, commitments, agreements, understandings or arrangements of any kind relating to the issuance
of any securities of the Company, any such convertible or exchangeable securities or any such options, warrants or rights, pursuant
to which, in any of the foregoing cases, the Company is subject or bound. There are no voting trusts, voting agreements, proxies,
Membership Interest holders’ agreements or other similar instruments restricting or relating to the rights of the Member
to vote, transfer or receive dividends with respect to any Membership Interests or with respect to the management or control of
the Company.

Section 2.3
Authority Relative to this Agreement. The Company has all requisite limited liability company power and authority
to execute and deliver the Transaction Documents to which it is a party, to perform its obligations thereunder and to consummate
the Contemplated Transactions. The execution and delivery of the Transaction Documents to which it is a party, the performance
of its obligations thereunder and the consummation of the Contemplated Transactions have been duly and validly authorized by all
required limited liability company or other action on the part of the Company and no other limited liability company or other proceedings
on the part of the Company are necessary to authorize the Transaction Documents to which it is a party or to consummate the Contemplated
Transactions. This Agreement has been, and each of the other Transaction Documents to which it is a party will be, duly and validly
executed and delivered by the Company and, assuming this Agreement has been, and each of the other Transaction Documents to which
it is a party will be, duly authorized, executed and delivered by the other parties thereto, this Agreement constitutes, and each
of the other Transaction Documents to which it is a party will constitute, a legal, valid and binding obligation of the Company,
enforceable against it in accordance with their respective terms, except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar Laws now or hereafter in effect relating to or affecting creditors’ rights generally, including
the effect of statutory and other Laws regarding fraudulent conveyances and preferential transfers and subject to the limitations
imposed by general equitable principles (regardless whether such enforceability is considered in a proceeding at law or in equity)
(collectively, the “Bankruptcy and Equity Principles”).

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Section 2.4
Consents and Approvals; No Violations. Except as set forth on Section 2.4 of the Company Disclosure Schedule,
none of the execution or delivery of any of the Transaction Documents by the Company, the performance by the Company of any of
its obligations thereunder, or the consummation of any of the Contemplated Transactions by the Company will (a) violate any provision
of the organizational or governing documents of the Company, (b) require it to obtain or make any consent, waiver, approval, exemption,
declaration, license, authorization or permit of, or registration or filing with or notification to, any federal, state, local
or foreign government, executive official thereof, governmental, administrative or regulatory authority, agency, body or commission,
including any court of competent jurisdiction, domestic or foreign (each, a “Governmental Entity”), (c) require
a consent under, result in a violation or breach of, constitute (with or without notice or lapse of time or both) a default (or
give rise to any right of termination, cancellation, amendment or acceleration or any obligation) under, or result in the creation
of any Encumbrance on any of the properties or assets of the Company pursuant to, any of the terms, conditions or provisions of
any Material Contract, except for any consents obtained prior to the Closing, or (d) violate any Law of any Governmental Entity
applicable to the Company or by which the Company or any of its properties or assets is bound.

Section 2.5
Financial Statements. The Company has previously delivered or made available to the Buyer true and complete copies
of the balance sheet of the Company as of June 30, 2018 and December 31, 2018 (collectively, the “Company Balance Sheet”).
The Company Balance Sheet (A) has been prepared from, and is in accordance with, the books and records of the Company, and
(B) fairly presents in all material respects the financial position of the Company as of the date thereof.

Section 2.6
No Undisclosed Liabilities; Discharge of Obligations. The Company has no outstanding liabilities, indebtedness or
known, defined financial obligations over $5,000, except as and to the extent set forth, disclosed in, reflected in or otherwise
described in the Company Balance Sheet or in Section 2.6 of the Company Disclosure Schedule. The Company has no indebtedness
for borrowed money immediately prior to Closing.

Section 2.7
Compliance with Law.

(a)
Except as set forth on Section 2.7 of the Company Disclosure Schedule, (i) neither the Company nor the Member nor,
to the Knowledge of the Company, any officer, manager or employee of the Company, in such capacity, has received notice from any
Governmental Entity of, or to the Knowledge of the Company, is charged or threatened with or under investigation with respect to,
any violation of any provision of any applicable Law and (ii) the Company is, and has been for the past three (3) years, in compliance
in all material respects with all Laws applicable to it or any of its businesses, properties or assets.

(b)
The Company currently is not required to be registered as an investment adviser with the U.S. Securities and Exchange Commission
(“SEC”), and is currently an exempt reporting advisor with the State of Connecticut reporting to the SEC.

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Section 2.8
Material Contracts.

(a)
Section 2.8(a) of the Company Disclosure Schedule sets forth a list of all Contracts that are material to the Company
to which it is a party or by which it or any of its properties or assets is bound, including, without limitation, (i) any employment
Contract or other Contract for services that is not terminable at will without liability for any penalty or severance payment,
(ii) any Contract involving annual payments or receipts by the Company of $25,000 or more, (iii) any Contract containing an exclusivity
provision that restricts the Company’s business or any Contract limiting the Company’s freedom to compete in any line
of business, in any geographic area or with any Person, and (iv) any Contract providing for the borrowing or lending of money or
any guarantee except for those providing funds to Buyer or Buyer’s direct or indirect subsidiaries (collectively, the “Material
Contracts”). The Company has made available to the Buyer true, correct and complete copies of all Material Contracts.

(b)
Each of the Material Contracts constitutes the valid, legally binding and enforceable obligation of the Company and, to
the Knowledge of the Company, each of the other parties thereto, except as may be limited by applicable Bankruptcy and Equity Principles.
Each Material Contract is in full force and effect.

(c)
The Company is not in breach or default in any material respect, and no event has occurred that with notice or lapse of
time or both would constitute such a breach or default by the Company or permit termination, modification or acceleration, of or
under any of the Material Contracts and, to the Knowledge of the Company, no other party to any Material Contract is in breach
or default in any material respect, and no event has occurred that with notice or lapse of time or both would constitute such a
breach or default by such party, of or under any Material Contract. The Company has not received written notice of a claim against
the Company by any party to a Material Contract in respect of any breach or default thereunder, except as otherwise described in
Section 2.8(c) of the Company Disclosure Schedule.

(d)
The Company has not received any impending or forthcoming notice of termination, cancellation, material reduction of services
or non-renewal that is currently in effect with respect to any Material Contract and, to the Knowledge of the Company, no other
party to a Material Contract plans to terminate, cancel or not renew, or materially reduce the services provided to it under, any
such Material Contract.

Section 2.9
Litigation. Except as set forth on Section 2.7 of the Company Disclosure Schedule or otherwise previously
disclosed in writing to the Buyer, there is no action, suit or proceeding pending or, to the Knowledge of the Company, threatened
against the Company or any of its properties by or before any Governmental Entity. The Company is not subject to any outstanding
injunction, writ, judgment, order or decree of any Governmental Entity. There is no action, suit or proceeding pending or, to Knowledge
of the Company, threatened against any current or former officer, manager, employee or consultant of the Company in his or her
capacity as such, except as otherwise disclosed in Section 2.9 of the Company Disclosure Schedule or otherwise previously
disclosed in writing to the Buyer. There is no action, suit or proceeding pending or, to the Knowledge of the Company, threatened
against the Company by or before any Governmental Entity that questions the validity of any of the Transaction Documents or any
action to be taken in connection with the consummation of any of the Contemplated Transactions or would otherwise prevent or materially
delay the consummation of any of the Contemplated Transactions.

Section 2.10
Taxes. Except as set forth in Section 2.10 of the Company Disclosure Schedule:

(a)
The Company or the Member has:

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(i)
duly and timely filed, or caused to be filed, in accordance with applicable Law all Company Tax Returns, each of which is
true, correct and complete,

(ii)
duly and timely paid in full, or caused to be paid in full, all Company Taxes (including but not limited to withholding,
payroll and employment Taxes) due and payable (whether or not shown on any Company Tax Return) on or prior to the Closing Date,
and

(iii)
properly accrued on its books and records a provision for the payment of all Company Taxes that are due, are claimed to
be due, or may or will become due with respect to any Pre-Closing Period or the portion ending on the Closing Date of any Straddle
Period.

(b)
There is no power of attorney in effect with respect or relating to any Company Tax or Company Tax Return.

(c)
No audit, action, assessment, examination, hearing, inquiry or investigation is pending, or to the Knowledge of the Company,
threatened or proposed with regard to any Company Tax or Company Tax Return.

(d)
The statute of limitations applicable or relating to any Company Tax or any Company Tax Return has never been modified,
extended or waived, nor has any request been made in writing for any such modification, extension or waiver.

(e)
No jurisdiction where a Company Tax Return has not been filed or Company Tax has not been paid has made or, to the Knowledge
of the Company, threatened to make a claim for the payment of any Company Tax or the filing of any Company Tax Return.

(f)
The Company is and always has been treated as a disregarded entity for federal income tax purposes. The Company has never
filed an entity classification election under Code Section 7701.

Section 2.11
Owned and Leased Properties.

(a)
The Company owns no interest in any real property. Section 2.11 of the Company Disclosure Schedule contains a correct
and complete description of all leases, licenses, permits, subleases and occupancy agreements or arrangements, together with any
amendments thereto (each a “Real Property Lease” and collectively, the “Real Property Leases”),
with respect to real property to which the Company is a party to, bound by or enjoys the benefits of (the “Leased Real
Property”), including the address and a description of uses by the Company of the Leased Real Property.

(b)
The Leased Real Property constitutes all of the land, buildings, structures, improvements, fixtures and other interests
and rights in real property that are used or occupied by the Company in connection with the business of the Company.

(c)
The Company does not have any oral or written agreement with any real estate broker, agent or finder with respect to the
Leased Real Property.

(d)
True, complete and accurate copies of the Real Property Leases have been provided to the Buyer and the Real Property Leases
are listed in Section 2.11(d) of the Company Disclosure Schedule.

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(e)
Each Real Property Lease is valid and binding on the Company and, to the Company’s Knowledge, each other party thereto,
and is in full force and effect. Except as set forth in Section 2.11(e) of the Company Disclosure Schedule, the Company
has not assigned, transferred, conveyed, mortgaged, deeded in trust or encumbered any interest in any Real Property Lease, subleased
all or any part of the space demised thereby, or granted any right to the possession, use, occupancy or enjoyment of any Leased
Real Property, to any third party. No option has been exercised under any of such Real Property Leases, except options whose exercise
has been evidenced by a written document, a true, correct and complete copy of which has been made available to Buyer with the
corresponding Real Property Lease. No Real Property Lease will cease to be legal, valid, binding, enforceable and in full force
and effect on terms identical to those currently in effect or require consent or notice solely as a result of the consummation
of any of the Contemplated Transactions, nor will the consummation of any such transactions constitute a breach or default under
any such Real Property Lease or otherwise give the landlord a right to terminate such Real Property Lease. The Company has not
received any written notice that it has violated any Law applicable to the operation of the Leased Real Property or any covenant,
condition, easement or restriction of record affecting any of the Leased Real Property. All brokerage commissions and other compensation
and fees payable by the Company by reason of the Real Property Leases, if any, have been paid in full, and to the Company’s
Knowledge, all brokerage commissions and other compensation and fees payable by any other Persons by reason of the Real Property
Leases have been paid in full.

Section 2.12
Intellectual Property; Personal Information.

(a)
There is no Intellectual Property owned or used by the Company that is material to the Company’s business as currently
being conducted. Immediately following the Closing Date, Company will continue to have, and will be permitted to exercise all of
Company’s rights under, and will have the same rights with respect to, all Intellectual Property necessary to enable the
Company to conduct its business to the same extent Company would have had, and been able to exercise, had the Contemplated Transactions
not occurred.

(b)
To the Knowledge of the Company, there is no unauthorized use, disclosure, infringement or misappropriation of any Intellectual
Property of the Company by any third party. The Company has not received any notice or other communication (in writing or otherwise)
of any actual, alleged, possible or potential infringement, misappropriation or unlawful use of, and, to the Knowledge of the Company,
the Company is not infringing, misappropriating or making unlawful use of, any Intellectual Property owned by any third party. 
There are no actions, suits or proceedings that are pending or, to the Knowledge of the Company, threatened against the Company
with respect to any infringement, misappropriation or unlawful use of any Intellectual Property owned or used by any third party.

Section 2.13
Insurance. The Company’s liability insurance policies are listed on Section 2.13 of the Company Disclosure
Schedule. True, complete and accurate copies of the Company’s insurance policies have been provided to the Buyer. There are
no pending claims under any of such policies.

Section 2.14
Environmental Laws. To the Knowledge of the Company, the Company (i) is in material compliance with any and all applicable
foreign, federal, state and local laws and regulations relating to the protection of human health and safety or the environment
and with respect to hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”),
(ii) has received all material permits, licenses or other approvals required of it under applicable Environmental Laws to conduct
its business, if any, and (iii) is in material compliance with all terms and conditions of any such permit, license or approval,
if any, except where, in each of the three foregoing clauses, the failure to so comply or receive such approvals could not reasonably
be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

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Section 2.15
Employee and Labor Matters. The Company is not a party to any collective bargaining or other labor union Contract
applicable to Persons employed by it, no collective bargaining agreement is being negotiated by the Company, and, to the Knowledge
of the Company, there are no activities or proceedings of any labor union to organize any of the employees of the Company. Except
as set forth in Section 2.15 of the Company Disclosure Schedule, (a) the Company is in compliance in all material respects
with all applicable Laws relating to employment and employment practices, wages, hours, occupational safety, health standards,
severance payments, equal opportunity, payment of social security, national insurance and other Taxes, and terms and conditions
of employment, (b) there are no charges with respect to or relating to the Company, or to the Knowledge of the Company, threatened
by or before any Governmental Entity responsible for the prevention of unlawful or discriminatory employment practices or unfair
labor practices, and (c) there is no strike, work stoppage, work slowdown, lockout, picketing, concerted refusal to work overtime,
or other similar labor activity pending or, to the Knowledge of the Company, threatened against or involving the Company or within
the last three years. All sums due for employee, consultant and independent contractor compensation and benefits, including pension
and severance benefits, and all vacation time owing to any employees of the Company have been duly and adequately accrued on the
accounting records of the Company. Except to the extent a failure to correctly characterize or treat would not result in material
liability to the Company, all individuals characterized and treated by the Company as consultants or independent contractors are
properly treated as independent contractors under all applicable Laws. Except to the extent a failure to correctly classify would
not result in material liability to the Company, all employees of the Company classified as exempt under the Fair Labor Standards
Act and state and local wage and hour Laws are properly classified.

Section 2.16
Employee Plans.

(a)
Section 2.16(a) of the Company Disclosure Schedule sets forth a true, correct and complete list of:

(i)
all “employee benefit plans,” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”), with respect to which the Company has any obligation or liability, contingent or otherwise
(the “Benefit Plans”);

(ii)
all current managers and officers of the Company; and

(iii)
all employment, consulting, termination, profit sharing, severance, change of control, individual compensation and indemnification
agreements, and all bonus and other incentive compensation, deferred compensation, salary continuation, disability, severance,
equity award, option, equity purchase, educational assistance, legal assistance, club membership, employee discount, employee loan,
credit union and vacation agreements, policies and arrangements under which the Company has any obligation or liability (contingent
or otherwise) in respect of any current or former officer, manager, employee, consultant or contractor of the Company (the “Employee
Arrangements”), other than as previously provided to the Buyer in writing.

(b)
If applicable, in respect of each Benefit Plan and Employee Arrangement, a complete and correct copy of each of the following
documents (if applicable) has been made available to the Buyer: (i) the most recent plan and related trust documents, and all amendments
thereto; (ii) the most recent summary plan description, and all related summaries of material modifications thereto; (iii) the
most recent Form 5500 (including schedules and attachments); and (iv) each written Employee Arrangement, and all amendments thereto.
The Company does not maintain any qualified retirement plans.

    	8

     

    

(c)
If applicable, all premium payments required to have been made by the Company have been timely and properly made or accrued.

(d)
If applicable, the Benefit Plans and Employee Arrangements have been maintained and administered in accordance with their
terms and applicable Laws in all material respects; unless otherwise disclosed within Section 2.16(d) of the Company Disclosure
Schedule.

(e)
Except as set forth on Section 2.16(e) of the Company Disclosure Schedule or otherwise previously disclosed in writing
to the Buyer, there are no pending or, to the Knowledge of the Company, threatened actions, claims, suits or proceedings against
or relating to any Benefit Plan or Employee Arrangement (other than routine benefit claims by persons entitled to benefits thereunder)
and, to the Knowledge of the Company, there are no facts or circumstances which could reasonably be expected to form the basis
for any of the foregoing.

(f)
Except as set forth on Section 2.16(f) of the Company Disclosure Schedule, the Company has no obligation or liability
(contingent or otherwise) to provide post-retirement life insurance or health benefits coverage for current or former officers,
managers, employees, consultants or contractors except (i) as may be required under Part 6 of Title I of ERISA, (ii) a medical
expense reimbursement account plan pursuant to Section 125 of the Code, or (iii) through the last day of the calendar month in
which the participant terminates employment.

(g)
None of the assets of any Benefit Plan is equity of the Company.

(h)
Except as set forth on Section 2.16(h) of the Company Disclosure Schedule, neither the execution and delivery of
any of the Transaction Documents nor the consummation of any of the Contemplated Transactions will (i) result in any payment becoming
due to any manager, officer, employee, consultant or contractor (current, former or retired) of the Company, (ii) increase any
benefits under any Benefit Plan or Employee Arrangement or (iii) result in the acceleration of the time of payment of, vesting
of, or other rights in respect of any such benefits (except as may be required by the partial or full termination of any Benefit
Plan intended to be qualified under Section 401 of the Code). No Benefit Plan or Employee Arrangement in effect immediately prior
to the Closing Date would result, individually or in the aggregate (including as a result of this Agreement, any of the Transaction
Documents or any of the Contemplated Transactions), in the payment of any “excess parachute payment” within the meaning
of Section 280G of the Code.

(i)
The Company has not entered into any non-qualified deferred compensation plan or arrangement with any employee or service
provider.

Section 2.17
Brokers and Finders. Neither of the Company nor any of its Representatives has employed any investment banker, broker
or finder or incurred any liability for any investment banking fees, brokerage fees, commissions or finders’ fees in connection
with any of the Contemplated Transactions for which the Buyer would be liable.

Section 2.18
Absence of Questionable Payments. None of the Company or, to the Knowledge of the Company, the Member, manager, officer,
employee, consultant or other Person acting on behalf of the Company has (a) used any funds for unlawful contributions, payments,
gifts or expenditures, (b) made any unlawful expenditures of funds relating to political activity to government officials or others
or (c) established or maintained any unlawful or unrecorded funds in violation of the Foreign Corrupt Practices Act of 1977, as
amended, or any other applicable domestic or foreign Law. None of the Company or, to the Knowledge of the Company, any manager,
officer, employee, consultant or other Person acting on behalf of the Company has offered, paid or agreed to pay to any Person
(including any governmental official), or solicited, received or agreed to receive from any such Person, directly or indirectly,
any unlawful contributions, payments, gifts, expenditures, money or anything of value for the purpose or with the intent of (a) obtaining
or maintaining business for the Company, (b) facilitating the purchase or sale of any product or service, or (c) avoiding
the imposition of any fine or penalty.

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Section 2.19
Books and Records. Except as set forth on Section 2.19 of the Company Disclosure Schedule, the books of account
and other books and records of the Company are complete and accurate in all material respects and have been maintained in accordance
with sound business practice, applicable requirements of Law. Except as set forth on Section 2.19 of the Company Disclosure
Schedule, the Company has (a) provided Buyer and its authorized Representatives reasonable access to all personnel, books, records
(including information related to financial, legal, environmental, regulatory and employee benefits matters), offices and other
facilities and properties of the Company as the Buyer may have reasonably requested, (b) permitted the Buyer and its authorized
Representatives to make such inspections thereof as the Buyer reasonably requested, and (c) furnished the Buyer with such financial
and operating data and other information with respect to the business and operations of the Company as the Buyer may have reasonably
requested.

Section 2.20
Bank Accounts; Powers of Attorney. Section 2.20 of the Company Disclosure Schedule sets forth a true, complete
and correct list showing: (a) all banks in which the Company maintains a bank account or safe deposit box (collectively, “Bank
Accounts”), together with, as to each such Bank Account, the type of account, and the names of all signatories thereof
; and (b) the names of all Persons holding powers of attorney from the Company. The account numbers for all Bank Accounts were
provided to the Buyer prior to Closing.

Section 2.21
Certain Transactions. Except as set forth on Section 2.21 of the Company Disclosure Schedule, neither the
Member nor any of his Affiliates or any member of his immediate family (for this purpose, “immediate family” means
such Person’s spouse, parents, children and siblings) is presently a party to any Contract or transaction with the Company,
including without limitation, any Contract (a) providing for the furnishing of services by, (b) providing for the rental of real
or personal property from, or (c) otherwise requiring payments to (other than for services in the foregoing capacities) any such
Person or any corporation, partnership, trust or other entity in which any such Person has a substantial interest as a member,
officer, manager, trustee or partner, and no such Person owns directly or indirectly any interest in (excluding passive investments
in less than 1% of the shares of any company that lists its shares on a national securities exchange), or serves as an officer
or manager or in another similar capacity of, any competitor or customer of the Company or any organization that has a Material
Contract with the Company.

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF THE MEMBER

Except as set forth
in the Company Disclosure Schedule, the Member hereby represents and warrants to Buyer, as of the date hereof, except to the extent
certain representations and warranties are limited to a certain date set forth in the applicable section, as follows:

Section 3.1
Ownership of Membership Interests. The Member owns all of the Membership Interests free and clear of all Encumbrances
except for any Permitted Liens, and, as a result of the Membership Interest Purchase, the Buyer will acquire good, valid and marketable
title to such Membership Interests free and clear of all Encumbrances.

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Section 3.2
Authority Relative to this Agreement. The Member has all requisite right, power and authority to execute and deliver
the Transaction Documents to which he is a party, to perform his obligations thereunder and to consummate the Contemplated Transactions.
This Agreement has been, and each of the other Transaction Documents to which the Member is a party will be, duly and validly executed
and delivered by the Member and, assuming this Agreement has been, and each of the other Transaction Documents to which the Member
is a party will be, duly authorized, executed and delivered by the other parties thereto, this Agreement constitutes, and each
of the other Transaction Documents to which the Member is a party will constitute, a legal, valid and binding obligation of the
Member, enforceable against the Member in accordance with their respective terms, except as limited by applicable Bankruptcy and
Equity Principles.

Section 3.3
Consents and Approvals; No Violations. None of the execution or delivery of any of the Transaction Documents by the
Member, the performance by the Member of its obligations thereunder, or the consummation of any of the Contemplated Transactions
by the Member will (a) require the Member to obtain or make any consent, waiver, approval, exemption, declaration, license, authorization
or permit of, or registration or filing with or notification to, any Governmental Entity, (b) require a consent under, result
in a material violation or material breach of, constitute (with or without notice or lapse of time or both) a material default
(or give rise to any right of termination, cancellation, amendment or acceleration or any obligation) under, or result in the creation
of any Encumbrance on any of the properties or assets of the Member pursuant to, any of the terms, conditions or provisions of
any Contract to which the Member is a party or by which the Member or any of his properties or assets is bound, except for any
consents obtained prior to the Closing, or (c) violate any Law of any Governmental Entity applicable to the Member or by which
he or any of his properties or assets is bound.

Section 3.4
Litigation. There is no action, suit or proceeding pending or, to the Knowledge of the Member, threatened against
the Member by or before any Governmental Entity that questions the validity of any of the Transaction Documents or any action to
be taken in connection with the consummation of any of the Contemplated Transactions or would otherwise prevent or materially delay
the consummation of any of the Contemplated Transactions.

Section 3.5
Brokers and Finders. The Member has not employed any investment banker, broker or finder or incurred any liability
for any investment banking fees, brokerage fees, commissions or finders’ fees in connection with any of the Contemplated
Transactions for which the Buyer or the Company would be liable.

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF THE BUYER

Except as set forth
in the Buyer’s disclosure schedule provided herewith (the “Buyer Disclosure Schedule”), the Buyer hereby
represents and warrants to the Company and the Member, as of the date hereof and as of the Closing Date, except to the extent certain
representations and warranties are limited to a certain date set forth in the applicable section, as follows:

Section 4.1
Corporate Organization, Etc. The Buyer is a corporation duly incorporated, validly existing and in good standing
under the Laws of the State of Minnesota and has all requisite corporate power and authority to conduct its business as it is now
being conducted and to own, lease and operate its properties and assets. The Buyer is qualified to do business as a foreign corporation
and is in good standing (to the extent such concept is recognized) in each jurisdiction in which the ownership of its properties
or the conduct of its business requires such qualification, except where the failure to be so qualified or in good standing (if
applicable) would not, individually or in the aggregate, could not reasonably be expected to have a Buyer Material Adverse Effect.
True and complete copies of the organizational and governing documents of the Buyer as presently in effect have been heretofore
made available to the Company. The Buyer is not in violation of any term or provision of its organizational or governing documents.
The Company is to become a separate and independent direct subsidiary of the Buyer upon the Closing.

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Section 4.2
Authority Relative to this Agreement. The Buyer has all requisite power and authority to execute and deliver the
Transaction Documents to which it is a party, to perform its obligations thereunder and to consummate the Contemplated Transactions.
The execution and delivery of the Transaction Documents to which it is a party, the performance of its obligations thereunder and
the consummation of the Contemplated Transactions, including, without limitation, the Membership Interest Purchase, have been duly
and validly authorized by all required corporate or other action on the part of the Buyer, and no other corporate or other proceedings
on the part of the Buyer are necessary to authorize the Transaction Documents to which it is a party or to consummate the Contemplated
Transactions. This Agreement has been, and each of the other Transaction Documents to which it is a party will be, duly and validly
executed and delivered by the Buyer and, assuming this Agreement has been, and each of the other Transaction Documents to which
it is a party will be, duly authorized, executed and delivered by the other parties thereto, this Agreement constitutes, and each
of the other Transaction Documents to which it is a party will constitute, a legal, valid and binding obligation of the Buyer,
enforceable against it in accordance with their respective terms, except as limited by applicable Bankruptcy and Equity Principles.

Section 4.3
Consents and Approvals; No Violations. None of the execution or delivery of any of the Transaction Documents by the
Buyer, the performance by the Buyer of any of its obligations thereunder, or the consummation of any of the Contemplated Transactions
by the Buyer will (a) violate any provision of the organizational or governing documents of the Buyer, (b) require it to obtain
or make any consent, waiver, approval, exemption, declaration, license, authorization or permit of, or registration or filing with
or notification to, any Governmental Entity, (c) require a consent under, result in a material violation or material breach
of, constitute (with or without notice or lapse of time or both) a material default (or give rise to any right of termination,
cancellation, amendment or acceleration or any obligation) under, or result in the creation of any Encumbrance on any of the properties
or assets of the Buyer pursuant to, any of the terms, conditions or provisions of any material Contract to which the Buyer is a
party or by which the Buyer or any of its properties or assets is bound, except for any consents obtained prior to the Closing,
(d) violate any Law of any Governmental Entity applicable to the Buyer or by which the Buyer or any of its properties or assets
is bound or (e) require the Buyer to obtain the approval of any holders of its capital stock by Law, the Buyer’s articles
of incorporation or bylaws or otherwise in order for the Buyer to consummate the Membership Interest Purchase and the Contemplated
Transactions.

Section 4.4
Financial Statements. The Buyer has previously delivered or made available to the Company a true and complete copy
of the Buyer’s unaudited consolidated balance sheet as of September 30, 2018 (the “Buyer Balance Sheet”).
The Buyer Balance Sheet (A) has been prepared from, and is in accordance with, the books and records of the Buyer, and (B)
fairly presents in all material respects the financial position of the Buyer as of the date thereof.

Section 4.5
Compliance with Law. Except for the Buyer’s delinquent periodic reports required to be filed with the SEC,
(i) neither the Buyer nor subsidiaries of the Buyer nor, to the Knowledge of the Buyer, any officer, manager or employee of the
Buyer, in such capacity, has received notice from any Governmental Entity of, or to the Knowledge of the Buyer, is charged or threatened
with or under investigation with respect to, any violation of any provision of any applicable Law and (ii) the Buyer and the Buyer’s
subsidiaries are, and have been for the past three (3) years, in compliance in all material respects with all Laws applicable to
it or any of its businesses, properties or assets.

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Section 4.6
Litigation. Except as disclosed in the Buyer’s periodic reports filed with the SEC, there is no action, suit,
proceeding or investigation pending or, to the Knowledge of the Buyer, threatened against the Buyer or any of their respective
properties by or before any Governmental Entity. The Buyer is not subject to any outstanding injunction, writ, judgment, order
or decree of any Governmental Entity. There is no action, suit or proceeding pending or, to the Knowledge of the Buyer, threatened
against the Buyer by or before any Governmental Entity that questions the validity of any of the Transaction Documents or any action
to be taken in connection with the consummation of any of the Contemplated Transactions or would otherwise prevent or materially
delay the consummation of any of the Contemplated Transactions.

Section 4.7
Brokers and Finders. The Buyer has not employed any investment banker, broker or finder or incurred any liability
for any investment banking fees, brokerage fees, commissions or finders’ fees in connection with any of the Contemplated
Transactions for which either the Company or the Member would be liable.

Section 4.8
Insurance. The Buyer’s director’s and officer’s insurance policies are listed on Section 4.8
of the Buyer Disclosure Schedule. True, complete and accurate copies of such policies have been provided to the Company. There
are no pending claims under any of such policies.

Section 4.9
Environmental Laws. To the Knowledge of the Buyer, the Buyer (i) is in material compliance with any and all applicable
Environmental Laws, (ii) has received all material permits, licenses or other approvals required of it under applicable Environmental
Laws to conduct its business, if any, and (iii) is in material compliance with all terms and conditions of any such permit, license
or approval, if any, except where, in each of the three foregoing clauses, the failure to so comply or receive such approvals could
not reasonably be expected to have, individually or in the aggregate, a Buyer Material Adverse Effect.

ARTICLE
V

COVENANTS

Section 5.1
Public Announcements. The Buyer, on the one hand, and the Company and the Member, on the other hand, will consult
with one another before issuing any press release or otherwise making any public statements in respect of this Agreement or any
of the Contemplated Transactions, including the Membership Interest Purchase, and will not issue any such press release or make
any such public statement without the prior written consent of the other party; provided, however, that any party
may at any time make disclosures regarding the Contemplated Transactions if it is advised by legal counsel that such disclosure
is required under applicable Law or by a Governmental Entity or any listing agreement with a public securities exchange, in which
case the disclosing party will (a) consult with the other parties hereto prior to such disclosure, and (b) seek confidential treatment
for such portions of such disclosure as are reasonably requested by any other party hereto.

Section 5.2
Tax Covenants.

(a)
To the extent permitted under applicable Law, the Company shall close or terminate (or cause to be closed or terminated),
as of the close of business on the Closing Date, each Tax period relating to any Company Tax or Company Tax Return.

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(b)
The Buyer shall prepare and file each Company Tax Return that is due after the Closing Date and relates to a Pre-Closing
Period or a Straddle Period in accordance with applicable Law. At least twenty (20) days prior to the date on which any such Company
Tax Return is due (after taking into account any valid extension), the Buyer will deliver such Company Tax Return to the Member.
No later than fifteen (15) days prior to the date on which such Company Tax Return is due (after taking into account any valid
extension), the Member may make reasonable changes and revisions to such Company Tax Return. The Buyer shall cooperate fully in
making any reasonable changes and revisions to such Company Tax Return. At least three (3) days prior to the date on which such
Company Tax Return (as reasonably revised by a Member) is due (after taking into account any valid extension), the Member shall
pay to the Buyer an amount equal to the Company Tax on such Company Tax Return to the extent such Company Tax relates, as determined
under Section 5.2(c), to a Pre-Closing Period (except to the extent such Company Taxes were taken into account in the determination
of Working Capital).

(c)
In the case of a Company Tax payable for a Straddle Period, the portion of such Company Tax that relates to the portion
of the Straddle Period ending on the Closing Date will (i) in the case of a Tax other than a Tax based upon or related to income,
employment, sales or other transactions, franchise or receipts, be deemed to be the amount of such Tax for the entire Straddle
Period multiplied by a fraction the numerator of which is the number of days in the portion of the Straddle Period ending on the
Closing Date and the denominator of which is the number of all of the days in the Straddle Period; and (ii) in the case of a Tax
based upon or related to income, employment, sales or other transactions, franchise or receipts, be deemed equal to the amount
that would be payable if the Straddle Period ended on the Closing Date and such Tax was based on an interim closing of the books
as of the close of business on the Closing Date.

(d)
Each party will promptly forward to the other a copy of all written communications from any Governmental Entity relating
to any Company Tax or Company Tax Return for a Pre-Closing Period or Straddle Period. Upon reasonable request, each party will
make available to the other all information, records and other documents relating to any Company Tax or any Company Tax Return
for a Pre-Closing Period or Straddle Period. The parties will preserve all information, records and other documents relating to
a Company Tax or a Company Tax Return for a Pre-Closing Period or Straddle Period until the date that is six (6) months after the
expiration of the statute of limitations applicable to the Company Tax or the Company Tax Return. Prior to transferring, destroying
or discarding any information, records or documents relating to any Company Tax or any Company Tax Return for a Pre-Closing Period
or Straddle Period, the Company and the Member, as applicable, will give to Buyer reasonable written notice and, to the extent
Buyer so requests, the Company and the Member, as applicable, will permit Buyer to take possession of all such information, records
and documents. In addition, the parties will cooperate with each other in connection with all matters relating to the preparation
of any Company Tax Return or the payment of any Company Tax for a Pre-Closing Period or Straddle Period and in connection with
any audit, action, suit, claim or proceeding relating to any such Company Tax or Company Tax Return, and Buyer will have the right
to control any such audit, action, suit, claim or proceeding. Nothing in this Section 5.2(d) will affect or limit any indemnity
or similar provision or any representations, warranties or obligations of any of the parties. Each party will bear its own costs
and expenses in complying with the provisions of this Section 5.2(d).

(e)
Buyer, on the one hand, and the Member, on the other hand, shall each be liable for and each shall pay when due fifty percent
(50%) of all transfer taxes incurred in connection with this Agreement or any of the Contemplated Transactions (“Transfer
Taxes”). The party as determined and communicated by Buyer required by any legal requirement to file a Tax Return or
other documentation with respect to such Transfer Taxes shall do so within the time period prescribed by Law, and the other party
shall promptly reimburse such party for any Transfer Taxes for which the other party is responsible upon receipt of notice that
such Transfer Taxes are payable. To the extent permitted by any applicable legal requirement, the parties hereto shall cooperate
in taking reasonable steps to minimize any Transfer Taxes.

    	14

     

    

(f)
None of the Member or the Company shall make or request a refund of any Company Tax or with respect to any Company Tax Return
or amend any Company Tax Return, unless the Buyer, at its sole discretion, consents in writing thereto. The Buyer shall not be
obligated to seek or request any refund of any Company Tax or amend any Company Tax Return; provided that the Buyer shall pay to
the Member any refund or credit of Company Taxes with respect to a Pre-Closing Period (including any interest thereon).

(g)
Each of the Company and the Member shall terminate or cause to be terminated any Tax sharing or similar agreement with respect
to or involving the Company as of the Closing Date, without liability to any party, and any further effect for any year (whether
the current year, a future year or a past year) or with respect to any Post-Closing Period. Any amounts payable under any Tax sharing
or similar agreement will be cancelled as of the Closing Date, without any liability to the Company.

(h)
The Buyer and the Member hereby acknowledge and agree that the purchase and sale of Membership Interests contemplated by
this Agreement is intended to be treated as a sale of the Company’s assets for U.S. federal income tax purposes. The Buyer
and the Member further agree not to take any action or position that is inconsistent with such treatment unless otherwise required
to do so by applicable Law.

(i)
In accordance with Section 5.2(h), the Member shall prepare an allocation of the purchase price (together with all
other items treated as consideration for U.S. federal income tax purposes) among the Company’s assets in accordance with
Section 1060 and the Treasury regulations thereunder (and any similar provision of state, local, or non-U.S. law, as appropriate)
(the “Allocation”). The Allocation, as finally determined (and subject to any further amendment in accordance
with Section 1.2) (the “Final Allocation”), shall be binding upon the Member, the Buyer and the Company.
The Member, the Buyer and the Company shall report, act, and file all Tax Returns (including, but not limited to Internal Revenue
Service Form 8594) in all respects and for all purposes consistent with the Final Allocation prepared by the Member. Neither the
Member, the Buyer nor the Company shall take any action or position that is inconsistent with the Final Allocation unless otherwise
required to do so by applicable Law.

ARTICLE
VI

INDEMNIFICATION

Section 6.1
Indemnification.

(a)
Indemnification by the Member. Subject to the other terms of this Section 6.1, the Member will defend, indemnify
and hold harmless the Buyer and its Representatives (collectively, the “Buyer Indemnified Parties”) from and
against and in respect of any and all losses, liabilities, obligations, claims, actions, damages, judgments, penalties, fines,
settlements and expenses, including reasonable attorneys’ fees (collectively, “Losses”), incurred by any
of the Buyer Indemnified Parties arising out of, based upon or related to (i) any inaccuracy or breach of any of the representations
or warranties made by either the Company or the Member in this Agreement, (ii) any breach of or failure to comply with any covenant
or agreement made by either the Company or the Member in this Agreement (except that as to the Company, only with respect to any
breach prior to Closing), (iii) any Company Taxes for any Pre-Closing Period (except to the extent such Company Taxes were taken
into account in the determination of Working Capital) or (iv) any matters described in Section 2.7 or Section 2.9
of the Company Disclosure Schedule, or any other action, suit, proceeding or investigation relating to periods prior to the Closing.

    	15

     

    

(b)
Indemnification by the Buyer. Subject to the other terms of this Section 6.1, the Buyer will defend, indemnify
and hold harmless the Member and each of his Representatives (collectively, the “Member Indemnified Parties”)
from and against and in respect of any and all Losses incurred by any of the Member Indemnified Parties arising out of, based upon
or related to (i) any inaccuracy or breach of any of the representations or warranties made by the Buyer in this Agreement, or
(ii) any breach of or failure to comply with any covenant or agreement made by the Buyer in this Agreement.

(c)
Indemnification Procedure.

(i)
The Person seeking indemnification under this Section 6.1 (the “Indemnified Party”) shall give
to the party(ies) from whom indemnification is sought (the “Indemnifying Party”) prompt written notice of any
third-party claim which may give rise to any indemnity obligation under this Section 6.1, and the Indemnifying Party will
have the right to assume the defense of any such claim through counsel of its own choosing, by so notifying the Indemnified Party
within ten (10) days of receipt of the Indemnified Party’s written notice; provided, however, that such counsel
shall be reasonably satisfactory to the Indemnified Party. Failure of the Indemnified Party to give prompt notice shall not affect
the Indemnifying Party’s indemnification obligations hereunder except to the extent the Indemnifying Party is materially
prejudiced by such failure. If the Indemnified Party desires to participate in any such defense assumed by the Indemnifying Party,
it may do so at its sole cost and expense; provided, however, that the Indemnified Party will be entitled to participate
in any such defense with separate counsel at the expense of the Indemnifying Party if, in the reasonable judgment of counsel to
the Indemnified Party, a conflict or potential conflict exists, or there are separate or additional defenses available to the Indemnified
Party, that would make such separate representation advisable. If the Indemnifying Party declines to assume any such defense or
fails to diligently pursue any such defense, then the Indemnifying Party will be liable for all reasonable costs and expenses incurred
by the Indemnified Party in connection with investigating, defending, settling and/or otherwise dealing with such claim, including
reasonable fees and disbursements of counsel. The parties hereto agree to cooperate with each other in connection with the defense
of any such claim. The Indemnifying Party will not, without the prior written consent of the Indemnified Party, settle, compromise,
or consent to the entry of any judgment with respect to any such claim, unless such settlement, compromise or judgment (A) does
not result in the imposition of a consent order, injunction or decree that would restrict the future activity or conduct of the
Indemnified Party or any Affiliate thereof, (B) does not involve any remedies other than monetary damages, and (C) includes an
unconditional release of the Indemnified Party and its Affiliates for all liability arising out of such claim and any related claim.
The Indemnified Party will not, without the prior written consent of the Indemnifying Party, which will not be unreasonably withheld,
delayed or conditioned, settle, compromise, or consent to the entry of any judgment with respect to any such claim.

(ii)
If an indemnification claim by any Indemnified Party is not disputed by the Indemnifying Party within thirty (30) days after
the Indemnifying Party’s having received written notice thereof, or has been resolved by a Law of a Governmental Entity,
by a settlement of the indemnification claim in accordance with Section 6.1(c)(i) or by agreement of the Indemnified Party
and the Indemnifying Party (any of the foregoing, a “Resolution”), then (A) in the case of indemnification under
Section 6.1(b), the Member will deliver evidence of such Resolution to the Buyer, whereupon the Buyer will pay to the Member
Indemnified Party promptly following such Resolution an amount in cash equal to the Losses of such Member Indemnified Party as
set forth in such Resolution, or (B) in the case of indemnification under Section 6.1(a), the Buyer will deliver evidence
of such Resolution to the Member, whereupon the Member will pay to the Buyer Indemnified Party promptly following such Resolution
an amount in cash equal to the Losses of such Buyer Indemnified Party as set forth in such Resolution.

    	16

     

    

(d)
Limitations. The foregoing indemnification obligations will survive the consummation of the Membership Interest Purchase
for a period of eighteen (18) months following the Closing Date; provided, however, that the right to indemnification
arising out of, based upon or related to any inaccuracy or breach of any of the representations or warranties contained in Sections
2.1 (Organization, Etc.), 2.2 (Capitalization), 2.3 (Authority Relative to this Agreement), 2.4 (Consents
and Approvals; No Violations), 2.10 (Taxes), 2.12 (Intellectual Property; Personal Information), 2.16 (Employee
Plans), 2.17 (Brokers and Finders), 3.1 (Ownership of Membership Interests), 3.2 (Authority Relative to this
Agreement), 3.3 (Consents and Approvals; No Violations), 3.5 (Brokers and Finders), 4.1 (Corporate Organization,
Etc.), 4.2 (Authority Relative to this Agreement), 4.3 (Consents and Approvals; No Violations), 4.5 (Brokers
and Finders), subsection (b) of Section 2.7, and the first sentence of Section 2.11(a) (collectively, the “Fundamental
Representations”) or arising under Section 6.1(a)(iii-iv) will survive the Closing until 60 days after the expiration
of the statute of limitations for any claim thereunder relating to the matters covered by the applicable Fundamental Representation,
including any extensions thereof, or, if no statute of limitations is applicable thereto, for a period of six (6) years after the
Closing Date; and provided, further, that claims first asserted in writing within the applicable survival period
will not thereafter be barred.

ARTICLE
VII

MISCELLANEOUS

Section 7.1
Entire Agreement; Binding Effect; Assignment. This Agreement (including the exhibits hereto and the Company Disclosure
Schedule) constitutes the entire agreement among the parties hereto in respect of the subject matter hereof and supersede all other
prior agreements and understandings, both written and oral, among the parties in respect of the subject matter hereof. This Agreement
shall be binding upon and inure solely to the benefit of each party hereto and its successors and permitted assigns. Neither this
Agreement nor any of the rights, interests or obligations hereunder shall be assigned, whether voluntarily or by operation of law,
including by way of sale of assets, merger or consolidation, by any of the Company or the Member, on the one hand, or the Buyer,
on the other hand, without the prior written consent of the other party(ies). Any assignment in violation of the preceding sentence
shall be void.

Section 7.2
Notices. All notices, requests, demands, instructions and other documents and communications to be given under this
Agreement shall be in writing and shall be deemed given (a) three (3) Business Days following sending by registered or certified
mail, postage prepaid, (b) when sent if sent by email, provided that the e-mail is not returned with an undeliverable,
delayed or similar message, provided, further, that such notice must also be sent via the method described in subsection
(c) or (d) hereof, (c) when delivered, if delivered personally to the intended recipient, and (d) one Business Day following
sending by overnight delivery via a nationally recognized overnight courier service wherein the courier provided proof of delivery,
and in each case, addressed to a party at the following address for such party:

	 	if to the Buyer, to:	ATRM Holdings, Inc.
	 	 	5215 Gershwin Avenue N.
	 	 	Oakdale, Minnesota 55128
	 	 	Attention:	Daniel M. Koch
	 	 	 	President and Chief Executive Officer
	 	 	Email:	dkoch@atrmholdings.com
	 	 	 

 

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	 	with a copy (which shall	 
	 	not constitute notice) to:	Olshan Frome Wolosky LLP
	 	 	1325 Avenue of the Americas
	 	 	New York, New York 10019
	 	 	Attention:	Adam W. Finerman, Esq.
	 	 	Email:	afinerman@olshanlaw.com
	 	 	 
	 	if to the Member, to:	Jeffrey Eberwein
	 	 	53 Forest Ave., 1st Floor
	 	 	Old Greenwich, CT 06870
	 	 	Email:	je@lonestarvm.com

or to such other address or email address
as the party to whom notice is given shall have previously furnished to the other parties in writing in the manner set forth above.

Section 7.3
Governing Law; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the Laws
of the State of New York, without giving effect to the choice of law principles thereof to the extent that the application of the
Laws of another jurisdiction would be required thereby. All actions, suits or proceedings arising out of or relating to this Agreement
or any of the other Transaction Documents shall be heard and determined exclusively in any New York state or federal court. The
parties hereto hereby (a) submit to the exclusive jurisdiction of any New York state or federal court located in New York
County, New York for the purpose of any action, suit or proceeding arising out of or relating to this Agreement or any of the other
Transaction Documents brought by any party hereto, and (b) irrevocably waive, and agree not to assert by way of motion, defense,
or otherwise, in any such action, suit or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named
courts, that its property is exempt or immune from attachment or execution, that the action, suit or proceeding is brought in an
inconvenient forum, that the venue of the action, suit or proceeding is improper, or that this Agreement, any of the other Transaction
Documents or any of the Contemplated Transactions may not be enforced in or by any of the above-named courts. Each of the parties
hereto agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by Law. Each of the parties hereto hereby consents to process being served by any party to this Agreement in any
suit, action or proceeding by delivery of a copy thereof in accordance with the provisions of Section 7.2. EACH PARTY HERETO
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL BY JURY IN ANY
SUIT, ACTION OR PROCEEDING ARISING HEREUNDER.

Section 7.4
Expenses. All fees and out-of-pocket expenses incurred in connection with this Agreement, any of the other Transaction
Documents or any of the Contemplated Transactions (including, without limitation, the fees and expenses of counsel, accountants,
consultants and any broker, finder or financial advisor) will be paid by the party incurring such fees and expenses.

Section 7.5
Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of
any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement,
or the application thereof to any Person or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision
shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid
or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other Persons
or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect
the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

    	18

     

    

Section 7.6
Specific Performance. The parties hereto agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to seek an injunction or injunctions to prevent any breach or threatened breach of this Agreement
and to enforce specifically the terms and provisions of this Agreement, without the requirement to post a bond or other security,
this being in addition to any other remedy to which they are entitled at law or in equity.

Section 7.7
Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original
and all of which together shall be considered one and the same agreement and shall become effective when one or more counterparts
have been signed by each of the parties hereto and delivered to the other parties hereto. Facsimile or .pdf signatures shall have
the same force and effect as original signatures.

Section 7.8
Interpretation.

(a)
The words “hereof,” “herein,” “herewith” and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and article,
section, paragraph, exhibit and schedule references are to the articles, sections, paragraphs, exhibits and schedules of this Agreement
unless otherwise specified. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation.” All terms defined in this
Agreement shall have the defined meanings contained herein when used in any certificate or other document made or delivered pursuant
hereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well as
the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. Any agreement,
instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement,
instrument or statute as from time to time amended, qualified or supplemented, including (in the case of agreements and instruments)
by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and all attachments thereto and
instruments incorporated therein. References to a Person are also to its successors and permitted assigns.

(b)
The phrases “the date of this Agreement,” “the date hereof,” and terms of similar import, unless
the context otherwise requires, shall be deemed to refer to the date set forth in the opening paragraph of this Agreement.

(c)
The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

Section 7.9
Amendment and Modification; Waiver. This Agreement can be amended, supplemented or changed, and any provision hereof
can be waived, only by written instrument making specific reference to this Agreement signed by the Buyer, the Company and the
Member. No action taken pursuant to this Agreement, including, without limitation, any investigation by or on behalf of any party,
shall be deemed to constitute a waiver by the party taking such action of compliance with any representation, warranty, covenant
or agreement contained herein. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate
or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on
the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof
or the exercise of any other right, power or remedy.

    	19

     

    

Section 7.10
Legal Counsel. The Company and the Member acknowledge that Olshan Frome Wolosky LLP represents the Buyer and does
not, and did not, represent the Company or the Member in connection with this Agreement and the Contemplated Transactions. Each
of the Company and the Member acknowledges that it has been represented by Kleinberg, Kaplan, Wolff & Cohen, P.C. in connection
with this Agreement and the Contemplated Transactions. Accordingly, any rule of law or any legal decision that would provide any
party with a defense to the enforcement of the terms of this Agreement against such party based upon lack of legal counsel shall
have no application and is expressly waived.

Section 7.11
Definitions. As used herein:

“Affiliate”
has the meaning given to it in Rule 12b-2 of Regulation 12B under the Exchange Act.

“Business
Day” means any day other than a Saturday, a Sunday or a day on which banks in the State of New York generally are closed
for regular banking business.

“Buyer Material
Adverse Effect” means any event, development, change, circumstance, effect, occurrence or condition that, either individually
or in the aggregate, (a) has caused or would reasonably be expected to cause a material adverse effect on the business, operations,
financial condition or results of operations of Buyer and its subsidiaries, taken as a whole, or (b) prevents or materially impairs
or delays the ability, or would reasonably be expected to prevent or materially impair or delay the ability, of the Buyer to perform
any of its obligations under any of the Transaction Documents or to consummate any of the Contemplated Transactions.

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

“Company
Material Adverse Effect” means any event, development, change, circumstance, effect, occurrence or condition that, either
individually or in the aggregate, (a) has caused or would reasonably be expected to cause a material adverse effect on the business,
operations, financial condition or results of operations of the Company, or (b) prevents or materially impairs or delays the ability,
or would reasonably be expected to prevent or materially impair or delay the ability, of the Company to perform any of their respective
obligations under any of the Transaction Documents or to consummate any of the Contemplated Transactions.

“Company
Tax” means any Tax, if and to the extent that the Company is or may be potentially liable under applicable Law, under
Contract or on any other grounds (including, but not limited to, as a transferee or successor, under Code Section 6901 or Treasury
Regulation Section 1.1502-6, as a result of any Tax sharing or other agreement, or by operation of Law) for any such Tax.

“Company
Tax Return” means any Tax Return filed or required to be filed by the Company with any Governmental Entity, if, in any
manner or to any extent, relating to or inclusive of the Company, or any Company Tax (which, for the avoidance of doubt, shall
not include any personal income Tax Return of the Member).

“Contemplated
Transactions” means the transactions contemplated by this Agreement and the other Transaction Documents, including the
Membership Interest Purchase.

“Contract”
means any written or oral contract, agreement, arrangement, license, lease, instrument or note that creates a legally binding obligation.

    	20

     

    

“Encumbrance”
means any lien, encumbrance, security interest, claim, charge, surety, mortgage, option, pledge, easement, limitation or restriction
(including on any right to vote or Transfer any asset or security) of any nature whatsoever.

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

“Intellectual
Property” means all intellectual property rights arising from or in respect of the following: (a) all patents and applications
therefor, including continuations, divisionals, provisionals, continuations-in-part, or reissues of patent applications and patents
issuing thereon; (b) all trademarks, service marks, trade names, service names, brand names, trade dress rights, logos, slogans,
Internet domain names and individual, limited liability company and business names, together with the goodwill associated with
any of the foregoing, and all applications, registrations and renewals thereof; (c) copyrights and registrations and applications
therefor, works of authorship and mask work rights; (d) all computer programs and software (including any and all software implementations
of algorithms, models and methodologies, whether in source code, object code or other form, but excluding off-the-shelf commercial
or shrink-wrap software), databases and compilations (including any and all data and collections of data), and all descriptions,
flow-charts and other work product used to design, plan, organize or develop any of the foregoing, screens, user interfaces, report
formats, firmware, development tools, templates, menus, buttons and icons, all technology supporting any of the foregoing, and
all documentation, including user manuals and other training documentation, related to any of the foregoing; and (e) all trade
secrets, designs, formulae, algorithms, procedures, methods, techniques, ideas, know-how, research and development, technical data,
programs, specifications, processes, inventions (whether patentable or unpatentable and whether or not reduced to practice), creations,
improvements and other similar materials, and all recordings, graphs, drawings, reports, analyses and other works of authorship,
and other tangible embodiments of the foregoing, in any form, and all related technology.

“Knowledge”
means (a) in the case of the Company or the Member, the actual or constructive knowledge of Jeffrey E. Eberwein, after due inquiry,
and (b) in the case of the Buyer, the actual knowledge of each of Daniel M. Koch and Stephen A. Clark, separately and collectively.

“Law”
means any order, writ, injunction, decree, judgment, permit, license, ordinance, law, statute, rule, regulation, administrative
interpretation, directive or other requirement of any Governmental Entity.

“Permitted
Lien” means (a) liens for Taxes, assessments of other governmental charges not yet due and payable, (b) landlord’s,
supplier’s, materialmens’, mechanics’, workmen’s, repairmen’s, warehousemen’s, carriers’
or other like liens arising or incurred in the ordinary course of business if the underlying obligations are not past due, (c)
any interest or title of a lessor under an operating lease or capitalized lease or of any licensor or licensee under a license
or (d) liens of lessors under Real Property Leases and licensors under intellectual property licenses.

“Person”
means an individual, corporation, limited liability company, partnership, association, trust, unincorporated organization, other
entity or group (as defined in the Exchange Act).

“Pre-Closing
Period” means any Tax period ending on or before the Closing Date, and the portion of any Straddle Period ending on and
including the Closing Date.

“Post-Closing
Period” means any Tax period beginning after the Closing Date.

    	21

     

    

“Representative”
means, with respect to any Person, each of such Person’s Affiliates, managers, officers, employees, partners, members, managers,
consultants, advisors, accountants, attorneys, representatives and agents.

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

“Straddle
Period” means any Tax period beginning before the Closing Date and ending after the Closing Date.

“Tax”
means any tax, charge, deficiency, duty, fee, levy, toll or other amount (including, without limitation, any net income, gross
income, profits, gross receipts, excise, property, sales, ad valorem, withholding, social security, retirement, excise, employment,
unemployment, minimum, alternative, add-on minimum, estimated, severance, stamp, occupation, environmental, premium, capital stock,
disability, windfall profits, use, service, net worth, payroll, franchise, license, gains, customs, transfer, recording, registration
or other tax) assessed or otherwise imposed by any Governmental Entity or under applicable Law, together with any interest, penalties
or any other additions or increases.

“Tax Return”
means mean any return, election, declaration, report, schedule, information return, document, information, opinion, statement,
or any amendment to any of the foregoing (including, without limitation, any consolidated, combined or unitary return and any related
or supporting information) with respect to Taxes.

“Transaction
Documents” means this Agreement, the Working Capital Statement, the assignment for the Membership Interests and any Schedule,
Annex or Exhibit to any of the foregoing.

“Transfer”
means any sale, assignment, pledge, hypothecation or other disposition.

“Treasury
Regulations” means the regulations promulgated under the Code.

[Signature page follows]

    	22

     

    

IN WITNESS WHEREOF,
each of the parties has caused this Agreement to be duly executed on its behalf as of the date first above written.

	 	
        BUYER:

         

        ATRM HOLDINGS, INC. 

	 	 
	 	By:	
        /s/ Daniel M. Koch

	 	 	Name:	Daniel M. Koch
	 	 	Title:	President and Chief Executive Officer

 

	 	
        COMPANY:

         

        LONE STAR VALUE MANAGEMENT, LLC

	 	 
	 	By:	
        /s/ Jeffrey E. Eberwein

	 	 	Name:	Jeffrey E. Eberwein
	 	 	Title:	Sole Member

 

	 	MEMBER:
	 	 
	 	 
	 	
        /s/ Jeffrey E. Eberwein

	 	JEFFREY E. EBERWEIN

 

 

 

[Signature Page to Membership Interest Purchase
Agreement]

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