Document:

Exhibit 10.2

 

Execution Copy

 

PROMISSORY NOTE

 

$1.6 Million

February 9, 2015

 

FOR VALUE RECEIVED, and intending
to be legally bound hereby, each of DFI Holdings, LLC, a Pennsylvania limited liability company, and KPS Holdco,
LLC, a Pennsylvania limited liability company (collectively, the “Borrowers” and each, a “Borrower”),
hereby jointly and severally unconditionally promises to pay to the order of American Republic Investment Co., a Delaware corporation
(hereinafter “Lender” and together with the Borrowers, the “Parties”),
the principal amount of ONE MILLION SIX HUNDRED THOUSAND AND 00/100 DOLLARS ($1,600,000.00), together with accrued, unpaid
interest thereon and any unpaid costs and expenses payable to the Lender hereunder.

 

		1.	Definitions. The definitions set forth on Annex A hereto are incorporated herein by reference. Capitalized terms
used but not defined herein, shall have the meaning set forth in the Stock Purchase Agreement, dated as of the date hereof (the
“SPA”), by and between, the Lender, as seller, and Borrowers, as buyers.

 

		2.	Guaranty and Security. This Note is made pursuant to the terms of the SPA, and evidences payment of a portion of the
purchase price of the assets sold thereunder. The payments and obligations of Borrowers, as makers, under this Note are secured
by Borrowers pursuant to the terms and conditions of the Security Agreement, and guaranteed and secured by the Company Group, pursuant
to the terms and conditions of the Guaranty and the Security Agreement.

 

		3.	Terms of Note.

 

		a.	Interest.

 

		(i)	Interest Rate: Interest shall accrue on all principal, interest and any other Obligations outstanding under this Note
at an annual rate equal at all times to the Interest Rate.

 

		(ii)	Default Rate. Upon the occurrence of an Event of Default, interest will be assessed at a rate equal to the Interest
Rate plus six percent (6%) (the “Default Rate”). Such Default Rate of interest shall also be charged
on any amounts owed by the Borrowers to the Lender pursuant to any judgment entered in favor of Lender with respect to this Note.

 

		b.	Computation of Interest; Place of Payment. Interest charged hereunder shall be computed daily on the basis of a 360-day
year for the actual number of days elapsed. All payments hereunder shall be made in lawful currency of the United States of America
and in immediately available funds. All payments made hereunder shall be made to the Lender at its offices set forth in the Notice
section of this Note or at such other address or in accordance with such instructions as Lender shall provide in writing to Borrowers
from time to time.

 

    	 

    	 

    

 

		c.	Payment and Prepayment. 

 

		(i)	Borrowers shall pay the principal amount of the Note in 24 equal monthly instalments, commencing on February 1, 2016, and continuing
on the first day of each month thereafter until the Maturity Date, on which date all outstanding principal and accrued interest
and any other Obligations under this Note shall be due and payable in full. In addition, interest shall be paid monthly in arrears
commencing on March 1, 2015, and, if principal is to be paid for such month, shall be paid to Lender with such monthly instalment
of principal.

 

		(ii)	Borrowers may make prepayments of principal amounts due hereunder in whole or in part at any time and from time to time without
penalty or premium upon notification to the Lender not later than 2:00 p.m. New York time, on the date prior to the proposed prepayment.
All payments or prepayments made under this Note, whether or not accompanied by instructions as to their application, shall be
applied to expenses and costs, interest and principal in such order as the Lender, in its sole discretion, shall determine.

 

		d.	Late Charge. If any payment under this Note is not paid in full when the same is due, the Borrowers shall pay the Lender
a fee on such unpaid amount equal to six percent (6%) of such amount.

 

		e.	Maturity. This Note shall mature and all then outstanding Obligations under this Note shall be due and owing as of January
1, 2018 (the “Maturity Date”).

 

		4.	Representations and Warranties. Each Borrower represents and warrants to the Lender that:

 

		a.	Existence; Compliance With Law.

 

		(i)	Each Borrower is duly formed and organized, validly existing and in good standing as a limited liability company under the
Laws of the state of its formation and is qualified to do business in each jurisdiction where its ownership of property or conduct
of business requires such qualification;

 

		(ii)	Each Borrower has the limited liability company power and authority and the legal right to own and operate its property and
to conduct business in the manner in which it does and proposes so to do; and

 

		(iii)	Each Borrower is in compliance with all requirements of Law and contractual obligations.

 

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		b.	Power; Authorization; Enforceable Obligations. Each Borrower has the limited liability company power and authority and
the legal right to execute, deliver and perform the Transaction Agreements to which it is a signatory, including the Note, and
has taken all necessary limited liability company action to authorize the execution, delivery and performance of the Transaction
Agreements to which it is a signatory. The Transaction Agreements to which it is a signatory have been duly executed and delivered
by each Borrower and constitute legal, valid and binding obligations of each Borrower enforceable against each Borrower in accordance
with their respective terms.

 

		c.	No Legal Bar. The execution, delivery and performance of the Transaction Agreements, the borrowing hereunder and the
use of the proceeds thereof, will not violate any contractual obligation of any Borrower or any requirement of Law.

 

		d.	Consents. No consent, approval, authorization of, or registration, declaration or filing with, any governmental authority
is required on the part of any Borrower in connection with the execution and delivery of the Transaction Agreements or the performance
of or compliance with the terms, provisions and conditions hereof or thereof.

 

		e.	Suits and Defaults. There are no actions, suits, proceedings, or claims pending or threatened against any Borrower or
any of its property that could reasonably be expected to have a material adverse effect on any Borrower’s ability to perform
their obligations hereunder. No Borrower is in default under any agreement to which such Borrower is a party or by which such Borrower
or any of its property is bound, or under any instrument evidencing any indebtedness of any Borrower. Each Borrower’s execution
of or performance under the Transaction Agreements will not create a default or any Lien under any such agreement or instrument
other than a Lien in favor of the Lender or that would not reasonably be expected to have a material adverse effect on any Borrower’s
ability to perform their obligations hereunder.

 

		f.	Compliance With Laws and Other Agreements. Each Borrower is in compliance in all material respects with all Laws, rules,
regulations, judgments, decrees, orders, agreements and requirements and has not received, and has no knowledge of, any order or
notice of any governmental investigation or of any violation or claim of violation of any Law, regulation, judgment, decree, order,
agreement, or other governmental requirement, except as would not reasonably be expected to have a material adverse effect on any
Borrower’s ability to perform their obligations hereunder.

 

		5.	Affirmative Covenants. Each Borrower covenants and agrees that so long as there are any outstanding Obligations, each
Borrower shall:

 

		a.	Tax Returns. Prepare and timely file all Tax Returns required to be filed by the Borrower and shall submit to the Lender
a copy of its federal Tax Return immediately after filing same with the Internal Revenue Service.

 

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		b.	Notice of Certain Events. Promptly give written notice to the Lender of (i) the occurrence of any event which alone
or with notice, the passage of time, or both, would constitute an Event of Default; (ii) the commencement of any proceeding or
litigation; and (iii) the formation of any subsidiary of the Borrower or any of its direct or indirect subsidiaries after the date
of this Note, which notice shall be accompanied by the resolution of the board of directors or other governing body of such subsidiary
authorizing such subsidiary to execute a guaranty of the Obligations, satisfactory in form and substance to the Lender, together
with such guaranty duly executed by such subsidiary.

 

		c.	Maintenance of Existence and Properties. Maintain its limited liability company existence and obtain and maintain all
rights, privileges, licenses, approvals, franchises, properties and assets necessary or desirable in the normal conduct of its
business, and comply in all material respects with all contractual obligations and requirements of applicable Law.

 

		d.	Preservation of Property; Insurance. Keep and maintain, and require its subsidiaries to keep and maintain, all of its
and their property and assets in good order and repair, maintain extended coverage, general liability, business interruption, hazard,
property and other insurance in amounts deemed sufficient by the Lender and as is customary for businesses similar to the Borrower’s
business, and deliver to the Lender certificates of all such insurance in effect; and cause all such policies covering any collateral
given by any Borrower or any of their subsidiaries to secure the Obligations and business interruption to contain loss payee endorsements
in favor of the Lender and to be subject to cancellation or reduction in coverage only upon thirty (30) days prior written notice
thereof to the Lender at its address set forth in the Notice section hereof.

 

		e.	Costs and Expenses. Pay all reasonable out-of-pocket costs and expenses (including reasonable fees and disbursements
of legal counsel) of the Lender in connection with the preparation and documentation of this Note and the Line of Credit Note (collectively,
the “Note Documentation Costs”). The Note Documentation Costs are capped at Twenty Five Thousand Dollars
($25,000.00) in the aggregate and shall be paid by Borrowers in six (6) equal monthly installments, the first installment due to
be paid on or before March 1, 2015 and each succeeding installment to be paid on the first Business Day of each month thereafter.

 

		f.	Compliance. Comply with and observe all terms and conditions of this Note and the other Transaction Agreements.

 

		g.	Taxes. Pay and discharge, and require its subsidiaries or Affiliates to pay and discharge, when due, all Taxes imposed
on them or any of their respective properties, unless the same are currently being contested in good faith by appropriate proceedings
and adequate reserves are maintained therefore.

 

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		h.	Further Actions. Cooperate and join with the Lender, at the Borrower’s own expense, in taking all such further
actions as the Lender, in its sole judgment, shall deem necessary to effectuate the provisions of this Note and the other Transaction
Agreements and to perfect or continue the perfected status of all Liens granted to the Lender pursuant to the Transaction Agreements,
including the execution, delivery and filing of financing statements, amendments thereto and continuation statements, the delivery
and filing of financing statements, amendments thereto and continuation statements, the delivery of chattel paper, documents or
instruments to the Lender and the notation of Liens in favour of the Lender on certificates of title.

 

		6.	Negative Covenants. So long as any Obligations are outstanding, no Borrower and no Member of the Company Group shall,
without the prior written consent of the Lender:

 

		a.	Payment of Dividends; Redemption of Stock. Pay any dividends, make any withdrawal from its capital, make any other distributions
or repurchase, redeem or otherwise acquire or set aside reserves to acquire, any of its outstanding stock, partnership or other
equity interests, other than distributions for the payment of taxes imposed as a result of ownership of equity interests in such
Person.

 

		b.	Guaranty Obligations. Become a guarantor, surety, borrower or otherwise become directly, indirectly or contingently
liable for the debts or obligations of others, except for the benefit of the Lender or its Affiliates, and except as an endorser
of checks or drafts negotiated in the ordinary course of business.

 

		c.	Other Liens and Encumbrances. Create, incur, assume or suffer to exist, any Lien on or with respect to any real or personal
property of any character (including accounts) whether now owned or hereafter acquired by any Borrower or any Member of the Company
Group, or sign or file or suffer to exist, under the Uniform Commercial Code of any jurisdiction, a financing statement that names
any Borrower or any Member of the Company Group as debtor, or sign or suffer to exist, any security agreement authorizing any secured
party thereunder to file such financing statement, or assign any accounts or other right to receive income, excluding, however,
Liens created in favor of the Lender or equipment Liens not to exceed $10,000 on financed equipment other than equipment Liens
solely with respect to KPS which shall not exceed $100,000.

 

		d.	Consolidation and Merger; Change of Business. Liquidate or dissolve or enter into any consolidation, merger, share exchange,
division, conversion, reclassification, recapitalization, reorganization, partnership, joint venture, syndicate or other combination,
sell or transfer ten percent (10%) or more of any of its capital stock, change its name or make any material change in the nature
of its business as presently conducted; provided, however, that one or more of the Borrowers and the Members of the Company Group
may effect a reorganization so long as, after giving effect to such reorganization, the Borrowers remain at all times a majority
owner, directly or indirectly, of each Member of the Company Group, with voting control over the capital stock of each Member of
the Company Group and with the right to receive 51% of the income or losses on distribution and liquidation of each Member of the
Company Group, and Michael P. Duloc remains at all times a majority owner, directly or indirectly, of each Borrower, with voting
control of each Borrower and with the right to receive 51% of the income or losses on distribution and liquidation of each Borrower.

 

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		e.	Dispose of Assets. Sell, transfer, lease or otherwise dispose of any assets, product line or process outside the ordinary
course of business.

 

		f.	Affiliate Transactions. Without the prior written consent of Lender, (i) enter into any transaction with any Affiliate
of Lender or Borrower that is not a Member of the Company Group, except as expressly contemplated by the Transaction Agreements,
or (ii) create, incur, assume or otherwise become or remain directly or indirectly liable for any intercompany amounts or indebtedness
owing to or for any Affiliate of Lender or Borrower that is not a Member of the Company Group.

 

		7.	Events of Default. The occurrence of any one of the following shall constitute an event of default (“Event
of Default”) under this Note:

 

		a.	Breach. A breach by any Borrower or any Member of the Company Group of any term, obligation, provision, covenant, representation
or warranty arising under (i) any Transaction Agreement, (ii) any present or future agreement with or in favor of the Lender or
any of its Affiliates, including the failure to make any payment when due or (iii) any present or future agreement or instrument
for borrowed money or other financial accommodations with any person or entity, in each case which is not cured within five (5)
days, if a monetary breach, and fifteen (15) days following written notice from Lender if a non-monetary breach.

 

		b.	Bankruptcy; Insolvency. (i) Any Borrower or any Member of the Company Group commences any bankruptcy, reorganization,
debt arrangement, or other case or proceeding under the United States Bankruptcy Code or under any similar foreign, federal, state,
or local statute, or any dissolution or liquidation proceeding, or makes a general assignment for the benefit of creditors, or
takes any action for the purpose of effecting any of the foregoing; (ii) any bankruptcy, reorganization, debt arrangement, or other
case or proceeding under the United States Bankruptcy Code or under any similar foreign, federal, state or local statute, or any
dissolution or liquidation proceeding, is involuntarily commenced against or in respect of any Borrower or any Member of the Company
Group or an order for relief is entered in any such proceeding and such proceeding is not dismissed within 60 days of being commenced;
(iii) the appointment, or the filing of a petition seeking the appointment, of a custodian, receiver, trustee, or liquidator for
any Borrower, any Member of the Company Group or any of their respective property, or the taking of possession of any part of the
property of any Borrower or any Member of the Company Group at the instance of any governmental authority, which is not dismissed
within 60 days; or (iv) any Borrower or any Member of the Company Group becomes insolvent (however defined), is generally not paying
its debts as they become due, or has suspended transaction of its usual business.

 

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		c.	Reorganization. The dissolution, merger, consolidation or reorganization of any Borrower or any Member of the Company
Group without the prior written consent of the Lender; provided, however, that a reorganization of one or more of the Borrowers
and the Members of the Company Group that is permitted under Section 6(d) hereof shall not be an Event of Default.

 

		d.	Material Misstatement. Any written statement, representation or warranty made in or pursuant to this Note or any other
Transaction Agreement or to induce the Lender to enter into this Note or any other Transaction Agreement shall prove to be untrue
or misleading in any material respect.

 

		e.	Debt, Liens, Loans, Lease Payments. Any Borrower or any Member of the Company Group (i) incurs or assumes additional
debt other than debt to the Lender, (ii) makes any loans or advances to officers, directors, shareholders, principals, partners
or Affiliates of any Borrower or any Member of the Company Group, (iii) creates, permits or grants any lien or security interest
in any of its property on which the Lender has a lien or security interest or (iv) incurs, creates or assumes any commitment, either
directly or indirectly, for rent, service fees or charges or finance charges under any lease, rental, sale-lease back or other
agreement for use of the property of any person or entity other than any Borrower or any Member of the Company Group, except with
the prior written consent of the Lender, which shall not be unreasonably withheld.

 

		f.	Entry of Judgment. (i) The filing, entry, or issuance of any judgment, execution, garnishment, attachment, distraint
or lien against any Borrower, any Member of the Company Group or any of their respective property in excess of $25,000.00 or (ii)
the entry of any order enjoining or restraining any Borrower or any Member of the Company Group or restraining or seizing any property
of any Borrower or any Member of the Company Group in excess of $25,000.00, in each case which is not dismissed within 60 days.

 

		g.	Transfer of Assets. Any Borrower or any Member of the Company Group transfers or sells all or substantially all of its
assets, without the prior written consent of the Lender.

 

		h.	Agreements Invalid. The validity, binding nature of, or enforceability of any material term or provision of this Note
or any other Transaction Agreement is disputed by, on behalf of, or in the right or name of any Borrower or any Member of the Company
Group or any material term or provision of any such Transaction Agreement is found or declared to be invalid, avoidable, or non-enforceable
by any court of competent jurisdiction.

 

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		8.	Remedies.

 

		a.	Acceleration of Obligations; Rights of Lender. Upon the occurrence of an Event of Default, the Obligations shall immediately
and automatically become due and payable in full, all without protest, presentment, demand or further notice of any kind to any
Borrower or any Member of the Company Group, all of which are expressly waived. Upon the occurrence of an Event of Default, the
Lender, at its option, may exercise any and all rights and remedies it has under this Note, any other Transaction Agreement and
under applicable Law, including the right to charge and collect interest on the Obligations at the Default Rate, which rate shall,
at the Lender’s option, apply upon the occurrence of and after an Event of Default, maturity, whether by acceleration or
otherwise, or the entry of judgment with respect to any or all of the Obligations. Upon the occurrence of an Event of Default,
the Lender may proceed to protect and enforce the Lender’s rights under any Transaction Agreement or under applicable Law
by action at law, in equity or other appropriate proceeding, including an action for specific performance to enforce or aid in
the enforcement of any provision contained herein or in any other Transaction Agreement. Upon the occurrence of any Event of Default,
Lender may exercise any and all rights and remedies provided for herein, under any other Transaction Agreement, under the Uniform
Commercial Code or at law or equity generally, including the right to foreclose the security interests granted herein and to realize
upon any Collateral by any available judicial procedure or to take possession of and sell any or all of the Collateral with or
without judicial process.

 

		b.	Remedies Cumulative; No Waiver. The rights, powers and remedies hereunder or under any other Transaction Agreement are
cumulative and concurrent, and are not exclusive of any other rights, powers or remedies available to the Lender. No failure or
delay on the part of the Lender in the exercise of any right, power or remedy shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or remedy preclude any other or further exercise thereof, or the exercise of any
other right, power or remedy.

 

		c.	Continuing Enforcement. If, after receipt of any payment of all or any part of the Obligations, the Lender is compelled
or agrees, for settlement purposes, to surrender such payment to any person or entity for any reason, then this Note and the other
Transaction Agreements shall continue in full force and effect or be reinstated, as the case may be. The provisions of this paragraph
shall survive the termination of this Note and the other Transaction Agreements and shall be and remain effective notwithstanding
the payment of the Obligations, the cancellation of the Note, the release of any security interest, lien or encumbrance securing
the Obligations or any other action which the Lender may have taken in reliance upon its receipt of such payment.

 

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		9.	Miscellaneous.

 

		a.	Waiver. Each Borrower (i) waives demand, presentment, protest, notice of protest and notice of dishonor of this Note;
(ii) consents to any and all waivers or modifications that may be granted by the Lender with respect to the payment or other provisions
of this Note; and (iii) agrees that makers, endorsers, guarantors and sureties for the indebtedness evidenced hereby may be added
or released without notice to any Borrower and without affecting any Borrower’s liability hereunder. The liability of each
Borrower hereunder shall be absolute and unconditional.

 

		b.	Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing
and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by
the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile (with
confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after
normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return
receipt requested, postage prepaid. Such communications must be sent to the Borrowers or Lender at the addresses set forth below
(or to such other address that may be designated by a party from time to time in accordance with this Section):

 

	Borrowers: 	
        KPS Holdco, LLC

        DFI Holdings, LLC

        3179 Deer Creek Road

        Collegeville, PA 19426

        Attention: Michael P. Duloc

        Fax: 815-734-5233

         

         

         
	
        with a required copy to (which shall not constitute notice):

        Fox Rothschild LLP

        2700 Kelly Road, Suite 300

        Warrington, PA 18976

        Attention: Jeffrey H. Nicholas

        Fax: 215-345-7507

         

	Lender: 	
        c/o AMREP Corporation

        300 Alexander Park, Suite 204

        Princeton, New Jersey 08540

        Attention: General Counsel

        Fax: 609-716-8255

         
	
        with a required copy to (which shall not constitute notice):

        Duane Morris LLP

        222 Delaware Avenue

        Suite 1600

        Wilmington, DE 19801

        Attention: Christopher Winter

        Fax: 302-397-2455 

 

		c.	Costs and Expenses. The Borrowers shall promptly pay (or reimburse, as the Lender may elect) all costs and expenses
which the Lender has incurred or may hereafter incur in connection with the reproduction, interpretation, perfection and protection
of Collateral, administration and enforcement of this Note and the Line of Credit Note, the collection of all amounts due under
this Note or the Line of Credit Note, and all amendments, modifications, consents or waivers, if any, to this Note and the Line
of Credit Note. The Borrowers’ reimbursement obligations under this paragraph shall survive any termination of this Note
and the Line of Credit Note. The obligations of Borrowers described in Section 5(e) above are in addition to Borrowers’ obligations
under this Section.

 

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		d.	Payment Due on a Day Other than a Business Day. If any payment due or action to be taken under this Note or any other
Transaction Agreement falls due or is required to be taken on a day other than a Business Day, such payment or action shall be
made or taken on the next succeeding Business Day and such extended time shall be included in the computation of interest.

 

		e.	Governing Law. This Note shall be governed by and construed in accordance with the internal substantive Laws of the
State of New York, without giving effect to any choice of Law or conflict of Laws rules or provisions (whether of the State of
New York or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of New
York.

 

		f.	Consent to Jurisdiction and Waiver of Jury Trial.  Each Party irrevocably submits to the exclusive jurisdiction of the
federal courts of the Southern District of New York or the courts of the State of New York located in the City of New York for
the purposes of any suit, action or other proceeding arising out of this Note or any transaction contemplated hereby. Each Party
further agrees that service of any process, summons, notice or document by U.S. registered mail to such Party’s respective
address set forth in the “Notices” section hereof shall be effective service of process for any action, suit or proceeding
with respect to any matters to which it has submitted to jurisdiction in this Section. Each Party irrevocably and unconditionally
waives any objection to the laying of venue of any action, suit or proceeding arising out of this Note or the transactions contemplated
hereby in federal courts of the Southern District of New York or the courts of the State of New York located in the City of New
York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such
action, suit or proceeding brought in any such court has been brought in an inconvenient forum. EACH PARTY HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT
OF OR RELATING TO THIS NOTE OR THE ACTIONS OF SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.

 

		g.	Integration. This Note embodies the entire agreement and understanding of the Parties hereto in respect of the subject
matter contained herein. This Note supersedes all prior agreements and understandings between the Parties with respect to the subject
matter thereof.

 

		h.	Amendment. Any provision of this Note may be amended if, and only if, such amendment is in writing and is signed by
each Party to this Note.

 

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		i.	Successors and Assigns. This Note (i) shall be binding upon each Borrower and the Lender and, where applicable, their
successors and permitted assigns, and (ii) shall inure to the benefit of each Borrower and the Lender and, where applicable, their
successors and permitted assigns; provided, however, that no Borrower may assign its rights or obligations hereunder or any interest
herein without the prior written consent of the Lender, and any such assignment or attempted assignment by any Borrower shall be
void and of no effect with respect to the Lender. The Lender may from time to time sell or assign, in whole or in part, or grant
participations in the Credit Facility, the Note or the Obligations evidenced thereby. The Borrowers authorize the Lender to provide
information concerning the Borrowers to any prospective purchaser, assignee or participant; provided that the recipient signs a
customary non-disclosure agreement.

 

		j.	Severability. Whenever possible, each provision of this Note shall be interpreted in such manner as to be effective
and valid under applicable Law. If any provision of this Note is held to be prohibited by or invalid under applicable Law, such
provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Note. Upon such determination that any term or other provision is invalid, illegal
or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Note so as to effect the original
intent of the Parties as closely as possible to the fullest extent permitted by applicable Law in an acceptable manner to the end
that the transactions contemplated hereby are fulfilled to the extent possible.

 

		k.	Savings. This Note is subject to the express condition that, at no time shall any Borrower be obligated or required
to pay interest at a rate that could subject Lender to either civil or criminal liability as a result of such interest rate exceeding
the maximum rate (the “Highest Lawful Rate”) that such Borrower is permitted by applicable Law to contract
to agree to pay. If the rate of interest at any time exceeds the Highest Lawful Rate, the outstanding amount of the Obligations
shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which
would have been due hereunder if the stated rates of interest set forth in this Note had at all times been in effect. In addition,
if when the Obligations are repaid in full the total interest due hereunder (taking into account the increase provided for above)
is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this
Note had at all times been in effect, then to the extent permitted by applicable Law, each applicable Borrower shall pay to Lender
an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if
the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it is the intention of Lender and Borrowers
to conform strictly to any applicable usury Laws. Accordingly, if Lender contracts for, charges, or receives any consideration
which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if
previously paid, shall at such Lender’s option be applied to the Obligations or be refunded to Borrowers.

 

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		l.	Joint and Several Liability. Each Borrower is jointly and severally liable for the Obligations under the Note.

 

		m.	Joint Drafting.

 

		n.	The Parties have participated jointly in the negotiation and drafting of this Note. In the event an ambiguity or question of
intent or interpretation arises, this Note 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 of the provisions of this Note.

 

		o.	Survival of Covenants. This Note and all covenants, agreements, representations and warranties made herein and in any
certificates delivered pursuant hereto shall survive the execution and delivery of the Note, and shall continue in full force and
effect until all of the Obligations have been fully paid, performed, satisfied and discharged.

 

		p.	Counterparts.

 

		q.	This Note may be executed in two or more counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument. Execution and delivery of this Note by delivery of a facsimile or electronically
recorded copy in .pdf file format bearing a copy of the signature of a Party shall constitute a valid and binding execution and
delivery of this Note by such Party. Such copies shall constitute enforceable original documents.

 

		r.	Headings. The section headings contained in this Note are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Note.

 

		s.	Interpretation.

 

		t.	When a reference is made in this Note to an Article, Section or Exhibit, such reference will be to an Article or Section of,
or an Exhibit to, this Note unless otherwise indicated. Whenever the words “include,” “includes” or “including”
are used in this Note, they will be deemed to be followed by the words “without limitation.” The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Note will refer to this Note as
a whole and not to any particular provision of this Note. Unless the context expressly provides otherwise, any approval, determination,
election or authorization required to be obtained from a Party shall be at such Party’s sole discretion. The word “or”
is not exclusive. All terms used herein with initial capital letters have the meanings ascribed to them herein and all terms defined
in this Note will have such defined meanings when used in any certificate or other document made or delivered pursuant hereto unless
otherwise defined therein. The definitions contained in this Note 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 term. Unless otherwise indicated, 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, modified or supplemented, including (in the case of agreements or instruments)
by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments
thereto and instruments incorporated therein. References to a Person are also to its permitted successors and assigns.

 

    	12

    	 

    

  

		u.	Disclosure. Borrowers consent to Lender or
its Affiliates publicly disclosing this Note and the other Transaction Agreements, including by filing such documents with the
Securities and Exchange Commission or the New York Stock Exchange.

 

		v.	Independent Counsel. Each Party certifies that it has read the terms of this Note, that it understands the terms of
this Note, and that it is entering into this Note of its own volition. Each Party warrants and represents that it has (a) been
represented by an attorney of its choice in connection with the Note and received independent legal advice from its attorney regarding
its decision with respect to the advisability of making and entering into this Note, or (b) had sufficient time, opportunity and
means to engage an attorney of its choice in order to be represented by such attorney in connection with the Note and to receive
independent legal advice from such attorney regarding its decision with respect to the advisability of making and entering into
this Note, and has made a knowing and voluntary decision not to do so.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK] 

 

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IN WITNESS WHEREOF, the Parties have
caused this Note to be duly executed and delivered as of the date first written above.

  

	 	DFI HOLDINGS, LLC
	 	 	 
	 	By: 	/s/ Michael P. Duloc
	 	 	Name: Michael P. Duloc
	 	 	Title:  Manager

 

	 	KPS HOLDCO, LLC
	 	 	 
	 	By:	/s/ Michael P. Duloc
	 	 	Name: Michael P. Duloc
	 	 	Title:  Manager

 

	 	 	AMERICAN REPUBLIC INVESTMENT CO.
	 	 	 
	 	By:	/s/ Peter M. Pizza
	 	 	Name: Peter M. Pizza
	 	 	Title:  Vice President

 

Signature Page to Buyer Promissory Note

(1/1)

 

    	 

    	 

    

 

ANNEX A

 

 

		a.	Closing Date. The term “Closing Date” shall mean February 9, 2015.

 

		b.	Company Group. The term “Company Group” shall mean Kable Media Services, Inc., a Delaware corporation, Kable
Distribution Services, Inc., a Delaware corporation, Kable News Company, Inc., an Illinois corporation, Kable News International,
Inc., a Delaware corporation, Kable Distribution Services of Canada, Ltd., a Canadian corporation incorporated in Ontario, Canada,
and Kable Product Services, Inc., a Delaware corporation.

 

		c.	Guaranty. The term “Guaranty” shall mean the Guaranty Agreement, dated as of the date hereof, by each of
the Borrowers and the Company Group, as guarantors, in favor of the Lender, entered into in connection with the SPA, this Note
and certain other documents and agreements.

 

		d.	Interest Rate. The term “Interest Rate” shall mean an interest rate per annum as determined on the first
Business Day of each month as the rate that is equal to three percent (3%) plus the Prime Rate, or, if applicable hereunder,
the Default Rate. For each month between the Closing Date until Obligations are satisfied in full, the Interest Rate for such month
(as determined on the first Business Day of such month) shall be determined in accordance with the definition of “Interest
Rate” without notice to any Borrower.

 

		e.	Lien. The term “Lien” shall mean any lien, security interest or other charge or encumbrance of any kind,
or any other type of preferential arrangement, including the lien or retained security title of a conditional vendor and any easement,
right of way or other encumbrance on title to real property.

 

		f.	Note. The term “Note” shall mean this Promissory Note together with all attachments hereto and all amendments
and modifications hereto in effect from time to time.

 

		g.	Obligations. The term “Obligations” shall mean any and all agreements, covenants, indebtedness, liabilities
and obligations of every kind and description of any one or more of the Borrowers or the Members of the Company Group (a) under
the Purchase Agreement, the Guaranty, any of the other Transaction Agreements (including the Note and the Line of Credit Note,
together with all attachments and amendments in effect from time to time), each of the documents, agreements, certificates and
instruments executed in connection with any Transaction Agreement or the Lease Agreement, dated November 7, 2008, between El Dorado
Utilities, Inc. and KPS (as successor-in-interest to Kable Specialty Packaging Services LLC) or (b) owing to the Lender or to any
Affiliate of the Lender, whether or not under the Transaction Agreements, and, in each case of clause (a) or clause (b), whether
such agreements, covenants, indebtedness, liabilities and obligations are primary or secondary, direct or indirect, absolute or
contingent, sole, joint or several, secured or unsecured, due or to become due, contractual or tortious, arising by operation of
law, by overdraft or otherwise, or now or hereafter existing, including advances, principal, interest, fees, late fees, expenses,
reasonable attorneys’ fees and costs or allocated fees and costs of Lender’s in-house legal counsel, that have been
or may hereafter be contracted or incurred. Notwithstanding the foregoing, and for the avoidance of doubt, the term Obligations
shall include Note Documentation Costs, which are subject to the cap set forth in Section 5(e), and no other attorneys’ fees
or costs of Lender or any Affiliates of Lender relating to negotiation and documentation of the Transaction Agreements on or prior
to the Closing Date.

 

    	 

    	 

    

 

		h.	Prime Rate. The term “Prime Rate” means for any day a per annum rate of interest equal to the “prime
rate,” as published in the “Money Rates” column of The Wall Street Journal, from time to time, or if for any
reason such rate is no longer available, the rate reasonably established by Lender as the prevailing prime rate.

 

		i.	Security Agreement. The term “Security Agreement” shall mean the Security Agreement, dated as of the date
hereof, by each Borrower and each Member of the Company Group, as grantors, in favor of the Lender, entered into in connection
with the SPA, this Note and certain other documents and agreements.

 

    	2Exhibit 10.3

 

Execution Copy

 

TRANSITION
SERVICES AGREEMENT

 

This TRANSITION
SERVICES AGREEMENT (“Agreement”), dated as of February 9, 2015 (the “Effective Date”),
is between DFI Holdings, LLC, a Pennsylvania limited liability company, and KPS Holdco, LLC, a Pennsylvania limited liability
company (collectively, “Buyers”), and American Republic Investment Co., a Delaware corporation (“Seller”,
and together with Seller, the “Parties”, and each, a “Party”). Capitalized
terms used but not defined herein shall have the meaning ascribed to such terms in the Stock Purchase Agreement, dated as of the
date hereof (the “Purchase Agreement”), between Seller and Buyers.

 

WITNESSETH:

 

WHEREAS, upon
consummation of the transactions contemplated by the Purchase Agreement, each of Seller and Buyers will provide to the other certain
services during a transitional period on the terms and conditions set forth herein.

 

NOW, THEREFORE,
in consideration of the premises set forth above and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties agree as follows:

 

1.   
       Services.

 

(a)          As
used herein, (i) the term “Provider” means Seller or Buyers, as the case may be, when such Party or
any of its Affiliates is providing Services (as defined below) pursuant to the terms of this Agreement, and (ii) the term “Recipient”
means Seller or Buyers, as the case may be, when such Party or any of its Affiliates is receiving Services pursuant to the terms
of this Agreement.

 

(b)          Seller
shall provide, or cause one or more of its Affiliates to provide, to the Company Group the services set forth on Annex A hereto
(the “Seller Services”).

 

(c)          Buyers
shall provide, or cause one or more of their Affiliates (including, after the consummation of the transactions contemplated by
the Purchase Agreement, the Company Group) to provide, to Seller the services set forth on Annex B hereto (the “Buyer
Services” and together with the Seller Services, the “Services”).

 

(d)          The
Parties have set forth on Annex A and Annex B the time period during which the Services will be provided (if different from the
Term as set forth in Section 4(a)), a description of the Service to be provided and any other terms applicable thereto.

 

(e)          Each
Provider shall provide, or cause one or more of its Affiliates to provide, the Services with the same degree of skill, attention
and care as it exercises in performing the same or similar services for itself and its Affiliates and in the manner and at a level
of service generally consistent with that provided by Provider or its Affiliates to the Recipient and its Affiliates immediately
preceding the date of this Agreement. Except as set forth in this Section 1(e), neither Party makes any warranties, express or
implied, with respect to the Services to be provided by such Party pursuant to this Agreement.

 

(f)          Nothing
in this Agreement shall preclude a Recipient from obtaining, in whole or in part, services of any nature that may be obtainable
from the Provider, from its own employees or from providers other than the Provider.

 

    	 

    	 

    

  

(g)          Unless
expressly provided otherwise on Annex A or Annex B, as the case may be, the Provider shall not be required to (i) expand its facilities,
incur new long-term capital expenses or employ additional personnel in order to provide the Services to the Recipient or (ii)
provide Services hereunder that are greater in nature and scope than the comparable services provided prior to the Effective Date.

 

(h)          In
providing the Services, the Provider, as it deems necessary or appropriate in its reasonable judgment, may (a) use the personnel
of the Provider or its Affiliates and (b) employ the services of third parties to the extent such third party services are routinely
utilized to provide similar services to other businesses of the Provider or are reasonably necessary for the efficient performance
of any of such Services; provided that any Services that were not provided by a third party prior to the Effective
Date shall be provided by a third party after the Effective Date only with the prior written consent of the Recipient, which consent
shall not be unreasonably withheld. The Provider will only employ the services of third parties who have entered into non-disclosure
agreements that obligate such third parties to maintain the confidentiality of the Recipient’s confidential information
and that prohibit the third party from using such confidential information for any purpose other than in connection with providing
the Services. The Recipient may retain at its own expense its own providers, consultants and other professional advisers.

 

(i)          All
employees and representatives of the Provider and its Affiliates shall be deemed for purposes of all compensation and employee
benefits matters to be employees or representatives, as the case may be, of such Provider and its Affiliates and in no event shall
be deemed employees or representatives of the Recipient. In performing the Services, such employees and representatives shall
be under the direction, control and supervision of the Provider (and not the Recipient) and the Provider shall have the sole right
to exercise all authority with respect to the employment (including termination of employment), assignment and compensation of
such employees and representatives. Whenever the Provider or its Affiliates utilize third-party providers to perform Services
pursuant to this Agreement, such third-party providers shall at all times remain subject to the direction and control of Provider
or such Affiliate. Recipient and its Affiliates shall have no liability to any employees or representatives of Provider or third-party
providers for any welfare, salaries, fringe benefits, legally-required employer contributions and tax obligations by virtue of
the provision of Services or as a result of the relationships established under this Agreement. No equipment or facility of Provider
used in performing Services for Recipient and its Affiliates shall be deemed to be transferred, assigned, conveyed or leased by
such performance or use. Provider shall maintain appropriate security, maintenance and insurance coverage on such equipment and
facilities.

 

(j)          If
there is an unavoidable conflict between the immediate needs of the Provider and those of the Recipient as to the use of or access
to a particular Service to be provided by the Provider, the Provider shall have the right, in its sole discretion, to establish
reasonable priorities, at particular times and under particular circumstances, as between the Provider and the Recipient. In any
such situation, the Provider shall provide notice to the Recipient of the establishment of such priorities at the earliest practicable
time.

 

2.     
     Cooperation. The Recipient shall, in a timely manner, take all such actions as may be
reasonably necessary or desirable in order to enable or assist the Provider in the Provider’s provision of Services,
including providing necessary information and specific written authorizations and consents, and the Provider shall be
relieved of its obligations hereunder to the extent that the Recipient’s failure to take any such action renders
performance by the Provider of such obligations unlawful or impracticable.

 

3.     
     Compensation. The Parties agree that the provision of the Services is included as part
of the consideration exchanged between the Parties in connection with the Closing and no additional amounts are to be paid by
the Recipient to the Provider for the provision of Services under this Agreement.

 

    	2

    	 

    

  

4.    
      Term; Termination. 

 

(a)          Subject
to the further provisions of this Section 4 and except as expressly provided with respect to a specific Service in Annex A or
Annex B, this Agreement shall commence on the Effective Date and, unless this Agreement is terminated earlier pursuant to any
of its express provisions, shall end on the date one year following the Effective Date (the “Termination Date”);
provided that if a Party desires and the other Party agrees to continue Services after the Termination Date, the
Parties shall negotiate in good faith to determine an agreed-upon extension period which shall only be effective if memorialized
in a writing signed by both Parties.

 

(b)          Notwithstanding
anything to the contrary contained herein or in Annex A or Annex B, the Recipient may terminate any individual Service on a Service-by-Service
basis (and/or location-by-location basis where an individual Service is provided at multiple locations of Recipient) upon prior
written notice to the Provider identifying the particular Service (or location) to be terminated and the effective date of termination,
which date shall be not less than thirty days after receipt of such notice.

 

(c)          
This Agreement may be terminated as to all or any portion of the Services prior to the expiration of the term of this Agreement
as set forth in Section 4(a), upon written notice as set forth below:

 

(i)          by
either Party, if the other Party commits a material breach of any provision of this Agreement and such material breach continues
for a period of 30 days following a written request to cure such breach; or

 

(ii)         by
either Party, upon written notice to the other Party, in the event that the other Party hereto shall (1) file a petition in bankruptcy,
(2) become or be declared insolvent, or become the subject of any proceedings (not dismissed within sixty (60) days) related to
its liquidation, insolvency or the appointment of a receiver, (3) make an assignment on behalf of all or substantially all of
its creditors, or (4) take any corporate action for its winding up or dissolution.

 

(d)          Following
any termination of this Agreement, each Provider shall cooperate in good faith with the Recipient to transfer records and take
all other actions reasonably requested by the Recipient to enable the Recipient to make alternative arrangements for the provision
of services substantially consistent with the Services provided pursuant to this Agreement.

 

(e)          Each
Recipient specifically agrees and acknowledges that all obligations of the Provider to provide each Service for which the Provider
is responsible hereunder shall immediately cease upon the termination of this Agreement. Upon the cessation of the Provider’s
obligation to provide any Service, the Recipient shall immediately cease using, directly or indirectly, such Service (including
any and all software of the Provider or third party software provided through the Provider, telecommunications services or equipment,
or computer systems or equipment).

 

(f)          Upon
termination of a Service with respect to which the Provider holds books, records or files, including current or archived copies
of computer files, owned by the Recipient and used by the Provider in connection with the provision of a Service to the Recipient,
the Provider will return all such books, records or files as soon as reasonably practicable; provided, however,
that the Provider may make a copy, at its expense, of such books, records or files for archival purposes only.

 

    	3

    	 

    

  

5.   
       Accounting Records and Documents. 

 

(a)          Each
Party shall be responsible for maintaining full and accurate accounts and records of all Services rendered by such Party pursuant
to this Services Agreement and shall provide such additional information as the other Party may reasonably request for purposes
of its internal bookkeeping, accounting, operations and management. Each Party shall maintain its accounts and records in accordance
with past practice.

 

(b)          At
any time during the Term of this Agreement, and for a period of one (1) year after termination or expiration of this Agreement,
each Party, its Affiliates, or an authorized independent auditor or counsel of such Party or such Affiliates, shall have the right
to inspect the other Party’s books and records relating to the Services upon five (5) Business Days prior written notice
during regular business hours and without undue disruption of the normal operations of the other Party.

 

(c)          All
information to which a Party, its Affiliates, or either of their representatives gain access pursuant to this Section 5 shall
be subject to the terms of the confidentiality provisions set forth in Section 7 of this Agreement.

 

6.    
      Liability and Indemnity. 

 

(a)          The
Provider hereby agrees to indemnify and hold the Recipient and its respective officers, directors, agents, employees and Affiliates
harmless from and against any and all liabilities, losses, damages, expenses, fines and penalties of any kind, including reasonable
attorneys’ fees and disbursements incurred by the Recipient, resulting from any demand, claim, lawsuit, action or proceeding
arising out of or resulting from the gross negligence or willful misconduct of the Provider or its Affiliates (or any third party
that provides a Service to the Recipient on behalf of Provider) in connection with the provision of Services (or failure to provide
Services). The Provider’s liability under this Section 6(a) shall be subject to the provisions of Section 6(b).

 

(b)          Notwithstanding
anything in this Agreement to the contrary, neither the Provider nor the Recipient shall be liable for any special, incidental
or consequential damages of any kind whatsoever, including loss of profits, business interruptions and claims of customers.

 

(c)          The
procedures and limitations for indemnification set forth in Article 6 of the Purchase Agreement shall be deemed incorporated into
and made a part of this Agreement.

 

7.    
      Proprietary Information. Each Party agrees to maintain the confidentiality of all
non-public information relating to the other Party, its Affiliates or any third party that may be disclosed by a Party to the
other Party in connection with the performance of the Services hereunder and to use such information solely for the purposes
of providing or receiving the Services hereunder. Each Party shall retain the entire right, interest and title to its
proprietary information. No license under any patent, copyright, trademark, other intellectual property right or any
application therefor, is hereby granted or implied by the provision of Services to the Recipient.

 

8.    
      Tax Liability. Each Party shall be responsible for all sales or use taxes imposed
or assessed as a result of the provision of Services by such Party.

 

    	4

    	 

    

  

9.        
  Assignment. Neither this Agreement nor any of the rights and obligations of the Parties hereunder may be
assigned by either of the Parties without the prior written consent of the other Party hereto, except that (a) each Party, in
its capacity as a Provider, may assign any of its rights and obligations hereunder to (i) any of its Affiliates or (ii) third
parties to the extent such third parties are routinely used to provide such Services to affiliates and businesses of the
Provider, in either case, without the prior written consent of the Recipient and (b) an assignment by operation of law in
connection with a merger or consolidation shall not require the consent of the other Party hereto. Notwithstanding the
foregoing, each of Seller and Buyers shall remain liable for all of their respective obligations under this Agreement.
Subject to the first sentence of this Section 10, this Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors and assigns and no other person shall have any right, obligation or benefit
hereunder. Any attempted assignment or transfer in violation of this Section 10 shall be void.

 

10.         Third
Party Beneficiaries. No provision of this Agreement is intended to confer upon any person other than the Parties any rights
or remedies hereunder, except for Affiliates of Seller who are to receive Services hereunder. Such Affiliates of Seller may enforce
this Agreement in connection with Services to be provided to them hereunder.

 

11.         Force
Majeure.

 

(a)          The
Provider shall not be in default hereunder by reason of any failure or delay in the performance of its obligations hereunder where
such failure or delay is due to any cause beyond its reasonable control, including strikes, labor disputes, civil disturbances,
riot, rebellion, invasion, epidemic, hostilities, war, embargo, natural disaster, acts of God, acts of terrorism, flood, fire,
sabotage, accident, delay in transportation, loss and destruction of property, intervention by governmental entities, change in
laws, regulations or orders, other events or any other circumstances or causes beyond the Provider’s reasonable control.

 

(b)          Upon
learning of the occurrence of such event of force majeure, the Provider shall promptly notify the Recipient, either orally or
in writing. In the event of any failure or delay in performance of the Services, the Provider shall use its reasonable commercial
efforts to restore the Services as soon as may be reasonably possible in accordance with its existing contingency plans for such
services.

 

12.         Specific
Performance. The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement
were not performed by them in accordance with the terms hereof and that each Party shall be entitled to specific performance of
the terms hereof (without the need to post bond or any other security), in addition to any other remedy at law or equity.

 

13.         Independent
Contractor. Nothing contained in this Agreement shall be deemed or construed to create a partnership or joint venture, to
create the relationships of employee/employer or principal/agent, or otherwise create any liability whatsoever of either Party
with respect to the indebtedness, liabilities, obligations or actions of the other or any of their respective officers, directors,
employees, stockholders, agents or representatives, or any other person or entity.

 

14.         Survival.
The provisions of Sections 3 through 20 shall survive the expiration or earlier termination of this Agreement for any reason whatsoever.

 

15.         Waiver.
Any failure of Seller to comply with any of its obligations or agreements herein contained may be waived only in writing by Buyers.
Any failure of Buyers to comply with any of its obligations or agreements herein contained may be waived only in writing by Seller.
No waiver granted hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature. No failure
or delay by any Party in exercising any right or privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

    	5

    	 

    

  

16.         Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be
deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile (with confirmation
of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business
hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested,
postage prepaid. Such communications must be sent to the respective Parties at the addresses set forth below (or to such other
address that may be designated by a Party from time to time in accordance with this Section):

 

	Buyers: 	c/o DFI Holdings, LLC	with a required copy to (which shall not constitute notice):
	 	KPS Holdco, LLC	Fox Rothschild LLP
	 	3179 Deer Creek Road	2700 Kelly Road, Suite 300
	 	Collegeville, PA 19426	Warrington, PA 18976
	 	Attention: Michael P. Duloc	Attention: Jeffrey H. Nicholas
	 	Fax: 815-734-5233	Fax: 215-345-7507
	 	 	 
	Seller: 	c/o AMREP Corporation 	with a required copy to (which shall not constitute notice):
	 	300 Alexander Park, Suite 204	Duane Morris LLP
	 	Princeton, New Jersey 08540	222 Delaware Avenue
	 	Attention: General Counsel	Suite 1600
	 	Fax: 609-716-8255	Wilmington, DE 19801
	 	 	Attention: Christopher Winter
	 	 	Fax: 302-397-2455

 

17.         Governing
Law; Consent to Jurisdiction and Waiver of Jury Trial.

 

(a)          This
Agreement shall be governed by and construed in accordance with the internal substantive Laws of the State of New York, without
giving effect to any choice of Law or conflict of Laws rules or provisions (whether of the State of New York or any other jurisdiction)
that would cause the application of the Laws of any jurisdiction other than the State of New York.

 

(b)          Each
Party irrevocably submits to the exclusive jurisdiction of the federal courts of the Southern District of New York or the courts
of the State of New York located in the City of New York for the purposes of any suit, action or other proceeding arising out
of this Agreement or any transaction contemplated hereby. Each Party further agrees that service of any process, summons, notice
or document by U.S. registered mail to such Party’s respective address set forth in the “Notices” section hereof
shall be effective service of process for any action, suit or proceeding with respect to any matters to which it has submitted
to jurisdiction in this Section. Each Party irrevocably and unconditionally waives any objection to the laying of venue of any
action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in federal courts of the Southern
District of New York or the courts of the State of New York located in the City of New York, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in
any such court has been brought in an inconvenient forum. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE ACTIONS OF SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.

 

    	6

    	 

    

 

18.         Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument. Execution and delivery of this Agreement by delivery of a facsimile or electronically
recorded copy in .pdf file format bearing a copy of the signature of a Party shall constitute a valid and binding execution and
delivery of this Agreement by such Party. Such copies shall constitute enforceable original documents.

 

19.         Headings.
The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. 

 

20.         Entire
Agreement. This Agreement embodies the entire agreement and understanding of the Parties hereto in respect of the subject
matter herein. This Agreement supersedes all prior agreements and understandings between the Parties with respect to the subject
matter thereof.

 

21.         Amendment.
Any provision of this Agreement may be amended if, and only if, such amendment is in writing and is signed by each Party to this
Agreement.

 

22.         Binding
Effect; Benefits. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective
successors and permitted assigns; nothing in this Agreement, express or implied, is intended to confer on any Person, other than
the Parties and their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by
reason of this Agreement.

 

23.         Joint
Drafting. 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 of the provisions
of this Agreement.

 

24.         Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
Law. If any provision of this Agreement is held to be prohibited by or invalid under applicable Law, such provision shall be ineffective
only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced,
the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as
closely as possible to the fullest extent permitted by applicable Law in an acceptable manner to the end that the transactions
contemplated hereby are fulfilled to the extent possible.

 

25.         Interpretation.
When a reference is made in this Agreement to an Article, Section or Exhibit, such reference will be to an Article or Section
of, or an Exhibit to, this Agreement unless otherwise indicated. Whenever the words “include,” “includes”
or “including” are used in this Agreement, they will be deemed to be followed by the words “without limitation.”
The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Agreement will refer to this Agreement as a whole and not to any particular provision of this Agreement. All capitalized terms
used and defined in this Agreement shall have the meanings ascribed to them herein. All capitalized terms used but not otherwise
defined in this Agreement shall have the meanings ascribed to them in the Purchase Agreement. Unless the context expressly provides
otherwise, any approval, determination, election or authorization required to be obtained from a Party shall be at such Party’s
sole discretion. The word “or” is not exclusive. All terms defined in this Agreement will have such defined meanings
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 term. Unless otherwise indicated, 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, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent
and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments
incorporated therein. References to a Person are also to its permitted successors and assigns.

 

    	7

    	 

    

  

26.         Assignability.
This Agreement shall not be assignable by any Party hereto without the prior written consent of the other Party.

 

27.         Specific
Performance. Buyers and Seller each agree that irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed by them in accordance with the terms hereof and that each Party shall be entitled to specific performance
of the terms hereof, in addition to any other remedy at law or equity.

 

28.         Expenses.
Each Party shall bear its own costs and expenses in connection with this Agreement and the transactions contemplated hereby, including
all legal, accounting, financial advisory, consulting and all other fees and expenses of third parties, except where specifically
provided to the contrary.

 

29.         Disclosure.
Buyers consent to Seller or its Affiliates publicly disclosing this Agreement, including by filing such documents with the Securities
and Exchange Commission or the New York Stock Exchange.

 

30.         Independent
Counsel. Each Party certifies that it has read the terms of this Agreement, that it understands the terms of this Agreement,
and that it is entering into this Agreement of its own volition. Each Party warrants and represents that it has (a) been represented
by an attorney of its choice in connection with the Transaction and received independent legal advice from its attorney regarding
its decision with respect to the advisability of making and entering into this Agreement, or (b) had sufficient time, opportunity
and means to engage an attorney of its choice in order to be represented by such attorney in connection with the Transaction and
to receive independent legal advice from such attorney regarding its decision with respect to the advisability of making and entering
into this Agreement, and has made a knowing and voluntary decision not to do so.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	8

    	 

    

 

IN WITNESS WHEREOF,
the Parties have caused this Transition Services Agreement to be duly executed and delivered as of the date first written above.

 

	DFI HOLDINGS, LLC
	 
	By:	/s/ Michael P. Duloc
	 	Name:	Michael P. Duloc
	 	Title:	President & Chief Executive Officer
	 	 	 
	KPS HOLDco,
    LLC
	By:	/s/ Michael P. Duloc
	 	Name:	Michael P. Duloc
	 	Title:	President & Chief Executive Officer
	 	 	 	 

	AMERICAN REPUBLIC INVESTMENT CO.
	 
	By:	/s/ Peter M. Pizza
	 	Name:	Peter M. Pizza
	 	Title:	Vice President
	 	 	 	 

Signature
Page to Transition Services Agreement

(1/1)

  

    	 

    	 

    

 

ANNEX A

 

Schedule
of Seller Services

 

1.          Information
Technology

 

Service Description: Seller
or its Affiliates (or any third party that provides the Service to the Company Group on behalf of Seller) will provide the Company
Group with information technology support for the following services to the extent previously provided to the Company Group prior
to the Effective Date (but which shall not include (i) providing access to any software or hardware licensed or leased from third
parties if to do so would cause a breach or default thereunder or (ii) assisting or expending time, amounts or resources in the
transition, disconnection or reconnection of any such Services):

 

		a.	Helpdesk

 

		b.	Network Support and all ancillary
                                         services required to support the KDS and KPS information technology networks, including
                                         but not limited to firewalls, security services, etc.

 

		c.	Exchange (e-mail) support and all
                                         ancillary services required to support the KDS and KPS email servers, including but not
                                         limited to firewalls, spam filters, etc.

 

		d.	Security, including audit compliance
                                         and PCI certification

 

		e.	Saftx use and support

 

		f.	AS400 programming and technical
                                         support

 

		g.	Use of the credit card repository

 

		h.	Irista hardware and software support
                                         and usage

 

		i.	Support for AS400 backup hardware
                                         currently housed at PCD

 

Term of Service:           Six
months following the Effective Date unless terminated earlier by Buyers.

 

2.          Payroll
Processing

 

Service Description:    If
the Company Group timely (A) provides Seller or its Affiliates (or any third party that provides the Service to the Company Group
on behalf of Seller) specific instructions for each pay period during the Term of Service regarding (1) the amount to be paid
to each employee of the Company Group during such pay period, (2) the number of vacation or paid-time-off days used by each employee
of the Company Group during such pay period, (3) changes to payroll deductions for such employee of the Company Group during such
pay period and (4) any other information requested by Seller or its Affiliates (or any third party that provides the Service to
the Company Group on behalf of Seller) and (B) funds the full amount to be paid to all employees of the Company Group by transmitting
such funds to Seller or its Affiliates (or any third party that provides the Service to the Company Group on behalf of Seller),
Seller or its Affiliates (or any third party that will provide the Service to the Company Group on behalf of Seller) will process
the payroll for employees of the Company Group to the extent previously provided prior to the Closing, except that all deductions
relating to Benefit Plans (including deductions for health benefits and 401K) from employees’ pay will cease as of the Closing.

 

Term of Service:           Four
months following the Effective Date unless terminated earlier by Buyers.

 

If any of the Seller Services require
travel to Buyers’ facilities, Buyers shall pay the customary and reasonable costs of travel, hotel accommodations and meals
for such individuals.

  

    	 

    	 

    

 

ANNEX B

 

Schedule
of Buyer Services

 

1.          Assets
of Affiliates of the Company Group

 

Service Description:    Buyers
and the Company Group will promptly assign, transfer and deliver to Seller and its Affiliates, at the sole cost and expense of
the Company Group, the books, records and assets (including JD Edwards accounting information including all account detail, information
technology network files, websites (including amrepcorp.com and related web pages), web addresses and email accounts) of each
Affiliate of the Company Group (including Kable Staffing Resources LLC, Palm Coast Data LLC, FulCircle Media, LLC, Media Data
Resources, LLC, El Dorado Utilities, Inc., Two Commerce LLC and AMREP Corporation) that are in the possession or under the control
of Buyers or any Member of the Company Group, in native format (unless otherwise requested by Seller).

 

Term of Service:         No
later than the date that it is three months following the Effective Date.

 

2.          Information
Technology

 

Service Description:    Buyers
and the Company Group (or any third party that provides the Service to Seller or its Affiliates on behalf of the Company Group)
will provide Seller and its Affiliates information technology support, including access to software and hardware, to the extent
previously provided to Seller and its Affiliates prior to the Effective Date, and training on the WRSS customer solution to the
extent requested by Seller or any of its Affiliates, for the following:

 

		a.	WRSS – Term of Service: Six
                                         months following the Effective Date unless terminated earlier by Seller.

 

		b.	AMREP Corporate – management
                                         and transition to Palm Coast Data LLC of amrepcorp.com and related web pages. Term of
                                         Service: Six months following the Effective Date unless terminated earlier by Seller.

 

3.          Mt.
Morris Office Building

 

Service Description:    Buyers
and the Company Group will provide Seller and its Affiliates with continued access as a tenant to the building at 16 South Wesley
Ave., Mount Morris, IL 61054 to the extent previously provided to Seller and its Affiliates prior to the Effective Date, including
providing Seller and its Affiliates continued access to software systems, electricity, telephone systems, information technology
and network access, parking and employee time keeping services.

 

Term of Service:           Six
months following the Effective Date unless terminated earlier by Seller.

 

4.          Administration
of Benefit Plans and Retirement Plan

 

Service Description:     Buyers
and the Company Group will provide Seller and its Affiliates with continued administration of the Benefit Plans and the Retirement
Plan for Employees of AMREP Corporation to the extent previously provided to Seller and its Affiliates prior to the Effective
Date. Buyers and the Company Group will promptly (and in any event within the Term of Service) assign, transfer and deliver to
Seller and its Affiliates, at the sole cost and expense of the Company Group, the books and records of the Retirement Plan for
Employees of AMREP Corporation that are in the possession or under the control of Buyers or any Member of the Company Group, in
native format (unless otherwise requested by Seller).

 

    	 

    	 

    

  

Term of Service:           Six
months following the Effective Date unless terminated earlier by Seller.

 

5.          Treasury
Function

 

Service Description:     Buyers
and the Company Group will provide Seller and its Affiliates, subject to the specific direction and oversight of Seller and its
Affiliates, with continued administration of cash management and treasury functions with respect to bank accounts of Seller and
its Affiliates to the extent previously provided to Seller and its Affiliates prior to the Effective Date.

 

Term of Service:          Three
months following the Effective Date unless terminated earlier by Seller.

 

6.          Financial
Statements and Audits

 

Service Description:    Buyers
and the Company Group will provide Seller and its Affiliates, subject to the specific direction and oversight of Seller and its
Affiliates, with continued assistance and support in the preparation of financial statements for Seller and its Affiliates to
the extent previously provided to Seller and its Affiliates prior to the Effective Date, including providing information requested
by Seller and its Affiliates or their internal and external auditors.

 

Term of Service:          One
year following the Effective Date unless terminated earlier by Seller.

 

If any of the Buyer Services require
travel to Seller’s facilities, Seller shall pay the customary and reasonable costs of travel, hotel accommodations and meals
for such individuals.

 

    	2

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