Document:

EX-10.1

 Exhibit 10.1 

CHANGE IN CONTROL AND SEVERANCE AGREEMENT 

THIS CHANGE IN CONTROL AND SEVERANCE AGREEMENT (this “Agreement”) is made and entered into this
         day of                     , 20        
(the “Effective Date”), by and between CareTrust REIT, Inc., a Maryland corporation for itself and its several subsidiaries and affiliates (collectively the “Company”), and
                    (the “Executive”). 

RECITALS 
 THE PARTIES
ENTER INTO THIS AGREEMENT on the basis of the following facts, understandings and intentions: 
 A.    The
Executive is currently, or in connection herewith will become, employed with the Company, and the Company desires to provide severance benefits to the Executive in the event the Executive’s employment with the Company or its successors
terminates under certain circumstances, on the terms and conditions set forth in this Agreement. 
 B.     This
Agreement shall be effective immediately and shall supersede and negate all previous agreements and understandings with respect to the subject matter hereof, except as expressly noted herein. 

AGREEMENT 
 NOW,
THEREFORE, in consideration of the above recitals, which are incorporated herein, and the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby expressly
acknowledged, the parties agree as follows: 
  

	1.	 Defined Terms. Except as otherwise set forth herein, capitalized terms used herein shall have the
meanings ascribed thereto in the Company’s Incentive Award Plan. The following terms mean and refer to: 

  

	 	1.1.	 “Accrued Obligations” means (i) any of the Executive’s base salary from the Company
that had accrued but had not been paid (including accrued and unpaid vacation time, subject to the Company’s vacation policies in effect from time to time) on or before the Severance Date; (ii) earned but unpaid incentive compensation due
under the Executive Compensation Plan for years prior to the year in which the Severance Date occurs, if any; and (iii) any reimbursement due to the Executive for expenses reasonably incurred by the Executive on or before the Severance Date and
documented (and pre-approved to the extent applicable), in accordance with the Company’s expense reimbursement policies in effect at the applicable time. 

 

	 	1.2.	 “Authorized Retirement” means the voluntary retirement by Executive, provided that Executive
(i) is over 62 years old; (ii) has worked in the Company and/or its predecessor or successor(s) for a cumulative period of at least ten (10) years; (iii) affirms in writing that he or she is retiring from full-time employment;
(iv) has provided the [Board][Chief 

  
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Executive Offer] with not less than 120 days prior written notice; and (v) has participated during such 120 day period in the recruitment and orientation of his or her replacement, as and to
the extent reasonably requested by the [Board][Chief Executive Officer]. 

  

	 	1.3.	 “Award” shall have the meaning given to such term in the Incentive Award Plan.

  

	 	1.4.	 “Cause” shall have the meaning given to such term in the Incentive Award Plan.

  

	 	1.5.	 “Change in Control” shall have the meaning given to such term in the Incentive Award Plan.

  

	 	1.6.	 “COBRA” shall mean and refer to the Consolidated Omnibus Budget Reconciliation Act.

  

	 	1.7.	 “COBRA Benefits” means the premiums charged pursuant to COBRA to continue the Executive’s
medical, dental and vision coverage following a termination, at the same or reasonably equivalent coverage under the group program(s) provided to the Executive (and, if applicable, the Executive’s spouse and eligible dependents) as in effect
immediately prior to the Severance Date. 

  

	 	1.8.	 “Confidential Information” means information that is not generally known to the public and
that is used, developed or obtained by the Company or its affiliates in connection with their respective businesses, including, but not limited to, information, observations and data obtained by the Executive while employed by the Company or its
affiliates or any predecessors or successors thereof (including those obtained prior to the Effective Date) concerning (i) the business or affairs of the Company or its affiliates (or such predecessors or successors), (ii) products or services,
(iii) fees, costs and pricing structures and strategies, (iv) designs, (v) analyses, (vi) drawings, photographs and reports, (vii) computer software, including operating systems, applications and program listings,
(viii) flow charts, manuals and documentation, (ix) data bases, (x) accounting and business methods, (xi) inventions, devices, new developments, product roadmaps, methods and processes, whether patentable or unpatentable and
whether or not reduced to practice, (xii) customers and clients, customer or client lists, and the preferences of, and negotiations with, customers and clients, (xiii) personnel information of other employees and independent contractors
(including their compensation, unique skills, experience and expertise, and disciplinary matters), (xiv) other copyrightable works, (xv) all production methods, processes, technology and trade secrets, and (xvi) all similar and
related information in whatever form. Confidential Information will not include any information that has been published (other than a disclosure by the Executive in breach of this Agreement) in a form generally available to the public prior to the
date the Executive proposes to disclose or use such information. Confidential Information will not be deemed to have been published merely because individual portions of the information have been separately published, but only if all material
features comprising such information have been published in combination. 

  

	 	1.9.	 “Disability” shall mean and refer to the inability of the Executive to perform the material
duties of his or her office due to a physical or mental injury, infirmity or incapacity which is determined to be permanent, by a physician selected by the Company and reasonably acceptable to the Executive, for one hundred eighty (180) days
(inclusive of weekends and holidays) in any 365-day period. 

  
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	 	1.10.	 “Excise Tax” shall mean and refer to the tax imposed under Section 4999 of the Code.

  

	 	1.11.	 “Executive Compensation Plan” shall mean and refer to the annual executive compensation plan
established by the Compensation Committee of the Board to incentivize and reward the performance of the Company’s management for the compensation year in which the Severance Date occurs, and will typically include target performance objectives
set at “Threshold,” “Target” and “High” levels. In the event that this Agreement calls for a calculation of a Severance Benefit based upon the Executive Compensation Plan for the year in which the Severance Date occurs
and no such plan has yet been finalized and approved for such year (or if the Executive was not selected as a participant for such year), then notwithstanding anything herein to the contrary such calculation shall be made based upon the last
approved Executive Compensation Plan, as if it had been the approved Executive Compensation Plan for the year in which the Severance Date occurs. 

  

	 	1.12.	 “Good Reason” means the occurrence (without the Executive’s consent) of any one or more
of the following conditions: (i) a material reduction in the Executive’s responsibilities resulting in material diminution of his or her position; (ii) a material diminution in the value of Executive’s aggregate annual
compensation opportunity, provided that the establishment or periodic amendment of applicable performance objectives or requirements as set by the Board of Directors in its sole discretion shall not be considered to have any impact on the value of
the Executive’s compensation opportunity; or (iii) a material breach by the Company of any agreement with the Company to which the Executive is a party; provided, however, that any such condition or conditions, as applicable, shall not
constitute Good Reason unless both (x) the Executive provides written notice to the Company of the condition(s) claimed to constitute Good Reason within sixty (60) days of the initial existence of such condition(s) (such notice to be
delivered in accordance with Section 7), and (y) the Company fails to remedy such condition(s) within thirty (30) days of receiving such written notice thereof; and provided, further, that in all events the
termination of the Executive’s employment with the Company shall not constitute a termination for Good Reason unless such termination occurs not more than one hundred twenty (120) days following the initial existence of the condition(s)
claimed to constitute Good Reason. 

  

	 	1.13.	 “Incentive Award Plan” shall mean the CareTrust REIT, Inc. and CTR Partnership, L.P. Incentive
Award Plan together with any successor or replacement equity award plan. 

  

	 	1.14.	 “Indemnification Agreement” means and refers to that certain CareTrust REIT, Inc.
Indemnification Agreement dated as of                     , 20         by and between the
Company and the Executive. 

  

	 	1.15.	 “Involuntary Termination” shall mean (i) a termination of the Executive’s employment
by the Company without Cause (and other than due to Executive’s death or in connection with a good faith determination by the Board that the Executive has a Disability), or (ii) a resignation by the Executive for Good Reason.

  
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	 	1.16.	 “Separation from Service” occurs when the Executive dies, retires, or otherwise has a
termination of employment with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional
alternative definitions available thereunder. 

  

	 	1.17.	 “Severance Benefit” shall mean and include, in addition to the standard rights and benefits
described in this Agreement, any or all of the “Termination Severance Benefit” described in subsection 2.2, the “Authorized Retirement Severance Benefit” described in subsection 2.3, and the “Change in Control
Severance Benefit” described in subsection 2.4, as the context may dictate. 

  

	 	1.18.	 “Severance Date” means the date on which the Executive’s employment with the Company or
its successor ends. 

  

	2.	 Separation from Service. 

 

	 	2.1.	 General Terms. Except as expressly provided for in this Section 2, if the
Executive’s employment with the Company is terminated by the Company or the Executive for any reason, then from and after the Severance Date the Company shall have no further obligation to make or provide to the Executive, and the Executive
shall have no further right to receive or obtain from the Company, any payments or benefits, other than such continuing rights and obligations as the Executive and the Company may have pursuant to the Indemnification Agreement, which Indemnification
Agreement is hereby reaffirmed and is neither amended, superseded nor terminated by this Agreement or any Separation from Service. Notwithstanding the foregoing, in all cases (i) any payments made hereunder shall be subject to tax withholding
and other authorized deductions, and (ii) the Company shall promptly pay or reimburse to the Executive (or, in the event of his or her death or Disability, to the Executive’s estate or custodian, as the case may be): 

 

	 	2.1.1.	 any and all Accrued Obligations; 

 

	 	2.1.2.	 any payments or benefits required by law, the Incentive Award Plan, the Executive Compensation Plan or this
Agreement; and 

  

	 	2.1.3.	 to the extent provided for by law, the Executive may elect to receive continued benefits under COBRA (but, for
the avoidance of doubt, the Executive shall not be entitled to any payment of COBRA Benefits from the Company except as provided in subsection 2.2, subsection 2.3 and subsection 2.4 below). 

  
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	 	2.2.	 Specific Separation Events. Upon a termination of the Executive’s employment with the Company under
the specific circumstances described below, then, in addition to any reimbursement or benefits to which Executive may be entitled under subsection 2.1 above, Company shall provide the following additional benefits to the Executive, but only
under the following terms and conditions: 

  

	 	2.2.1.	 Involuntary Termination without Cause. If the Executive’s employment with the Company terminates as
a result of an Involuntary Termination without Cause, the Company shall provide the following “Termination Severance Benefits” to the Executive, subject to Section 3: 

 

	 	2.2.1.1.	 pay the Executive, as a severance amount, the sum of (a)
[                (        )]1 times the Executive’s
annual base salary in effect on the Severance Date, plus (b) an amount equal to the Executive’s annual short-term cash incentive under the Executive Compensation Plan at the “Target” level for all performance objectives, prorated
from January 1 of the year in which the Severance Date occurs through the Severance Date. This severance amount shall be paid to the Executive in a lump sum as soon as practicable following the Severance Date (but in any event not later than
March 15 of the following calendar year); and 

  

	 	2.2.1.2.	 provide COBRA Benefits at the Company’s expense for not less than 18 full calendar months following the
Severance Date, commencing with COBRA Benefits for the month following the month in which the Executive’s Separation from Service occurs. Provision of the COBRA Benefits shall automatically end upon the Executive commencing full-time employment
with a subsequent employer. 

  

	 	2.2.2.	 Termination for Good Reason. If the Executive’s employment with the Company terminates as a result
of a termination for Good Reason, the Severance Benefit shall be the same as for an Involuntary Termination without Cause. 

  

	 	2.2.3.	 Death or Disability. The Company shall have the right, at the Company’s option and expense, to
acquire and maintain a “key man” life, disability and/or similar insurance policy to fund all or part of its obligations under this subsection 2.2.3. If the Executive’s employment with the Company terminates as a result of the
Executive’s death or Disability, the Company shall: 

  

	 	2.2.3.1.	 pay the Executive or the Executive’s estate, trustee or custodian, as the case may be, the
Executive’s target annual short term incentive under the Executive Compensation Plan for the plan year in which the Executive’s employment terminates, with such amount to be paid to the Executive in a lump sum as soon as practicable
following the Severance Date (but in any event not later than March 15 of the following calendar year); and 

  

	 	2.2.3.2.	 automatically accelerate the vesting of all of the Executive’s unvested Awards as of the Severance Date
(with any Awards then subject to performance-based vesting conditions vesting at the target performance level); and 

 

	1 	 Severance multiple to be 2 for CEO and 1 for all other executives. 

  
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	 	2.2.3.3.	 provide COBRA Benefits at the Company’s expense for not less than twelve (12) full calendar months
following the Severance Date, commencing with COBRA Benefits for the month following the month in which the Executive’s Separation from Service occurs. Provision of the COBRA Benefits shall automatically end upon the Executive commencing
full-time employment with a subsequent employer following a termination for Disability. 

  

	 	2.3.	 Authorized Retirement. If the Executive’s employment with the Company terminates as a result of an
Authorized Retirement, the Company shall provide the following “Authorized Retirement Severance Benefit” to the Executive, subject to Section 3 and 4.6: 

 

	 	2.3.1.	 automatically accelerate the vesting of all of the Executive’s unvested Awards as of the Severance Date
that are subject to vesting conditions based on continued employment, and any Awards then subject to performance-based vesting conditions as of the Severance Date shall remain outstanding and shall remain eligible to vest subject to satisfaction of
the Company attaining the applicable performance-based vesting conditions as if the Executive’s employment had not terminated; and 

  

	 	2.3.2.	 provide COBRA Benefits at the Company’s expense for not less than 18 full calendar months following the
Severance Date, commencing with COBRA Benefits for the month following the month in which the Executive’s Separation from Service occurs. Provision of the COBRA Benefits shall automatically end upon the Executive commencing full-time employment
with a subsequent employer. 

  

	 	2.4.	 Change in Control. If the Executive’s employment with the Company terminates as a result of an
Involuntary Termination that occurs at any time upon or following a Change in Control, the Company shall, subject to Section 3, provide the following “Change in Control Severance Benefit” to the Executive
in lieu of providing the Termination Severance Benefits: 

  

	 	2.4.1.	 pay the Executive, as a severance amount,
[                (        )]2 times the sum of (a) the
Executive’s annual base salary in effect on the Severance Date, plus (b) the Executive’s actual average annual short-term cash incentive paid under the Executive Compensation Plan for the three plan years immediately preceding the
plan year in which the Executive’s Severance Date occurs (or such shorter period that the Executive has been employed). This severance amount shall be paid to the Executive in a lump sum as soon as practicable following the Severance Date (but
in any event not later than March 15 of the following calendar year); and 

  

	 	2.4.2.	 automatically accelerate the vesting of all of the Executive’s unvested Awards as of the Severance Date
(with any Awards then subject to performance-based vesting conditions vesting at the target performance level); and 

 

	2 	 Severance multiple to be 3 for CEO and 2 for all other executives. 

  
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	 	2.4.3.	 provide COBRA Benefits at the Company’s expense for not less than 18 full calendar months following the
Severance Date, commencing with COBRA Benefits for the month following the month in which the Executive’s Separation from Service occurs. Provision of the COBRA Benefits shall automatically end upon the Executive commencing full-time employment
with a subsequent employer. 

  

	 	2.5.	 Savings Clause. The foregoing provisions of this Section 2 shall not reduce or
otherwise negatively affect: (i) the Executive’s receipt of benefits otherwise due terminated employees under group insurance coverage consistent with the terms of the applicable Company welfare benefit plan; (ii) the Executive’s
rights under the Incentive Award Plan, (iii) the Executive’s rights under COBRA; or (iv) the Executive’s receipt of benefits otherwise due in accordance with the terms of the Company’s 401(k) plan (if any).

  

	3.	 Release; Limitation of Liability. This Section 3 shall apply
notwithstanding anything else contained in this Agreement or any restricted stock, restricted stock unit or other equity-based award agreement to the contrary. 

 

	 	3.1.	 Release. The Company shall provide to Executive, and as a condition precedent to any Company obligation
to the Executive to pay or provide Severance Benefits, the Executive shall provide the Company, a valid, executed release agreement that shall release the Company, its officers, directors, affiliates and other applicable parties from all known and
unknown claims of any kind or nature in a form reasonably acceptable to the Company (the “Release”), and such Release shall have not been revoked by the Executive pursuant to any revocation rights afforded by applicable law. The
Company shall provide the form of Release to the Executive not later than fifteen (15) business days following the Severance Date, and the Executive shall be required to execute and return the Release within twenty one (21) days of
delivery (or forty-five (45) days if such longer period of time is required to make the Release maximally enforceable under applicable law). 

  

	 	3.2.	 Exclusive Remedy. The Executive agrees that his or her receipt of the Severance Benefits shall
constitute the exclusive and sole remedy for any termination of his or her employment, and the Executive covenants not to assert or pursue any other remedies, at law or in equity, with respect to any termination of employment. For the avoidance of
doubt, the Severance Benefits are being provided in lieu of any rights to receive any bonus payment (such as a pro-rata bonus payment) under the Executive Compensation Plan following any termination of
employment where Severance Benefits are payable, and the Executive agrees that he or she shall have no rights to receive any such bonus payments that may be payable under the generally applicable terms of the Executive Compensation Plan. The
Company’s obligation to deliver Severance Benefits hereunder, if any, shall not affect any set-off, counterclaim, recoupment (other than as provided for in Section 4.6), defense
or other claim, right or action which the Company may have against the Executive or others. The Company and the Executive acknowledge and agree that there is no duty of the Executive to mitigate damages under this Agreement. Except as provided above
for the COBRA Benefits, all Severance Benefits paid or provided to the Executive shall be paid and provided without regard to whether the Executive has taken or takes 

  
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actions to mitigate damages, and regardless of whether the Executive seeks or obtains alternate employment. The Executive hereby irrevocably resigns, on the Severance Date, from the Company and
any affiliate of the Company, as an officer and director of the Company and any affiliate, and as a fiduciary of any benefit plan of the Company or any affiliate of the Company (in each case, to the extent the Executive then has any such position),
and from each and every other position that the Executive may then otherwise hold with the Company or any of its affiliates. The Executive agrees to promptly execute and provide to the Company any further documentation, as requested by the Company
(whether before or after the Severance Date), to confirm such resignations. 

  

	4.	 Protective Covenants. 

 

	 	4.1.	 Confidential Information. The Executive shall not disclose or use at any time, either during the period
of his or her employment or thereafter, any Confidential Information of which the Executive is or becomes aware, whether or not such information is developed by him or her, except to the extent that such disclosure or use is directly related to and
required by the Executive’s performance in good faith of duties for the Company. The Executive will take all appropriate steps to safeguard Confidential Information in his or her possession and to protect it against disclosure, misuse,
espionage, loss and theft. The Executive shall deliver to the Company at the termination of the period of employment, or at any time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other
documents and data (and copies thereof) relating to the Confidential Information of the business of the Company or any of its affiliates which the Executive may then possess or have under his or her control. Notwithstanding the foregoing, the
Executive may truthfully respond to a lawful and valid subpoena or other legal process, but shall give the Company the earliest possible notice thereof and shall, as much in advance of the return date as reasonably possible, make available to the
Company and its counsel the documents and other information sought, and shall assist the Company and such counsel in resisting or otherwise responding to such process. The Executive understands that nothing in this Agreement is intended to limit the
Executive’s right (i) to discuss the terms, wages, and working conditions of the Executive’s employment to the extent permitted and/or protected by applicable labor laws, (ii) to report Confidential Information in a confidential
manner either to a federal, state or local government official or to an attorney where such disclosure is for the purpose of reporting or investigating a suspected violation of law, including disclosures that are protected under the whistleblower
provisions of federal law or regulations, or (iii) to disclose Confidential Information in an anti-retaliation lawsuit or other legal proceeding, so long as that disclosure or filing is made under seal and the Executive does not otherwise
disclose such Confidential Information, except pursuant to court order. The Company encourages Executive, to the extent legally permitted, to give the Company the earliest possible notice of any such report or disclosure. Pursuant to the Defend
Trade Secrets Act of 2016, the Executive acknowledges that he or she may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of Confidential Information that: (a) is made in confidence to a
federal, state, or local government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed in a
lawsuit or other proceeding, provided that such filing is made under seal. 

  
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Further, the Executive understands that the Company will not retaliate against him or her in any way for any such disclosure made in accordance with the law. In the event a disclosure is made,
and the Executive files any type of proceeding against the Company alleging that the Company retaliated against him or her because of his or her disclosure, the Executive may disclose the relevant Confidential Information to his or her attorney and
may use the Confidential Information in the proceeding if (x) the Executive files any document containing the Confidential Information under seal, and (y) the Executive does not otherwise disclose the Confidential Information except
pursuant to court or arbitral order. 

  

	 	4.2.	 Non-Solicitation of Employees and Consultants. While employed
and for a period of twenty-four months after the Severance Date, the Executive will not directly or indirectly through any other person (i) induce or attempt to induce any employee or independent contractor of the Company or any affiliate of
the Company to leave the employ or service, as applicable, of the Company or such affiliate, or in any way interfere with the relationship between the Company or any such affiliate, on the one hand, and any employee or independent contractor
thereof, on the other hand, or (ii) hire any person who was an employee of the Company or any affiliate of the Company until twelve months after such individual’s employment relationship with the Company or such affiliate has been
terminated. 

  

	 	4.3.	 Return of Company Property. Upon request by the Company in connection with any termination of
employment, the Executive will promptly deliver to the Company all property belonging to the Company then in the Executive’s custody, possession or control. The Executive may retain his or her mobile phone number, personal effects located on
Company property, all address books and contact data, and any personal data contained in any file, computer, server or storage facility of the Company or to which the Company has access. 

 

	 	4.4.	 Withholding of Taxes. Notwithstanding anything else herein to the contrary, the Company may withhold (or
cause to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such federal, state and local income, employment, or other taxes as may be required to be withheld pursuant to any applicable law
or regulation. 

  

	 	4.5.	 Section 280G Excise Tax. Notwithstanding anything contained in this Agreement to the
contrary, to the extent that the payments and benefits provided under this Agreement and benefits provided to, or for the benefit of, Executive under any other Company plan or agreement, including, for certainty, any or all of the Severance
Benefits, as applicable, and any benefits under the Incentive Award Plan (collectively, the “Benefits”) would be subject to the Excise Tax, the Benefits shall be reduced (but not below zero) if and to the extent that a reduction in
the Benefits would result in Executive retaining a larger amount, on an after-tax basis (taking into account federal, state and local income taxes and the Excise Tax), than if Executive received all of the
Benefits (such reduced amount is referred to hereinafter as the “Limited Benefit Amount”). The Company shall reduce or eliminate the Benefits by first reducing or eliminating any cash payments, then by reducing or eliminating any
accelerated vesting of any equity awards, and then by 

  
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reducing or eliminating any other Benefits, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the date of the transaction triggering
the Excise Tax. The provisions of this subsection 4.5 shall take precedence over the provisions of any other plan, arrangement or agreement governing the Executive’s right and entitlements to any benefits or compensation.

  

	 	4.6.	 Clawback. All payments made to Executive by the Company pursuant to this Agreement, the Incentive Award
Plan, the Executive Compensation Plan or any other plan or agreement are subject to the terms of the Company’s recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law,
any of which could in certain circumstances require repayment or forfeiture of bonuses or awards or any shares or other cash or property received with respect to the bonuses or awards (including any value received from a disposition of the shares
acquired upon payment of the bonuses or equity awards). In addition, if following the Executive’s Authorized Retirement, the Executive breaches the Executive’s affirmation that he or she is retiring from full-time employment and commences
full-time employment at any time following the Severance Date, the Executive shall be required to pay back to the Company the after-tax amount of the Authorized Retirement Severance Benefit within 60 days
following such breach. 

  

	5.	 Beneficiaries; Successors and Assigns. 

 

	 	5.1.	 Payment in the Case of Death and Disability. In the event any amount or other benefit is payable or
deliverable pursuant to this Agreement following the Executive’s death or Disability, payment and delivery shall be made to (a) in the event of a Disability, to the Executive to the extent the Executive has the capacity to receive amounts
and other such benefits, or if the Executive is deceased or lacks capacity, (b) to the trustee of a trust previously identified by the Executive in a formal written directive to the Company, or (c) to the executor of the Executive’s
estate or the Executive’s custodian, as the case may be. 

  

	 	5.2.	 Assignment. This Agreement is personal to the Executive and without the prior written consent of the
Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives. 

 

	 	5.3.	 Assumption. This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns. Without limiting the generality of the preceding sentence, the Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to assume and expressly agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor or assignee, as applicable, which assumes and agrees to perform this Agreement by operation of law or otherwise. 

  
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	6.	 Arbitration. The Executive and the Company agree that any controversy arising out of or relating to this
Agreement, its enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection with any of its provisions, or any other controversy arising out of Executive’s employment, including, but not limited
to, any state or federal statutory claims, shall be submitted to arbitration in Orange County, California, before a sole arbitrator (the “Arbitrator”) selected from the Judicial Arbitration and Mediation Services, Inc., as the
exclusive forum for the resolution of such dispute; provided, however, that provisional injunctive relief may, but need not, be sought by either party to this Agreement in a court of law while arbitration proceedings are pending, and any provisional
injunctive relief granted by such court shall remain effective until the matter is finally determined by the Arbitrator. The arbitration shall be conducted in accordance with the laws of the State of California. Final resolution of any dispute
through arbitration may include any remedy or relief which the Arbitrator deems just and equitable, including any and all remedies provided by applicable state or federal statutes. At the conclusion of the arbitration, the Arbitrator shall issue a
written decision that sets forth the essential findings and conclusions upon which the Arbitrator’s award or decision is based. Any award or relief granted by the Arbitrator hereunder shall be final and binding on the parties hereto and may be
enforced by any court of competent jurisdiction. The parties acknowledge and agree that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties against the other in connection
with any matter whatsoever arising out of or in any way connected with this Agreement or Executive’s employment. The parties agree that the Company shall be responsible for payment of the forum costs of any arbitration hereunder, including the
Arbitrator’s fee, but that each party shall bear its own attorney’s fees and other expenses. 

  

	7.	 Notices. Any notice provided for in this Agreement must be in writing and must be either personally
delivered, transmitted via telecopier, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated or at such other
address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder and received when delivered personally, when received if
transmitted via telecopier, five days after deposit in the U.S. mail and one day after deposit with a reputable overnight courier service. 

If to the Company: 

Attention: [Board of Directors] [Chief Executive Officer] 

CareTrust REIT, Inc. 

905 Calle Amanecer, Suite 300 

San Clemente, CA 92673 

If to the Executive: 

to the address most recently on file in the payroll records 

of the Company, or such other address as the Executive 

may from time to time designate in writing and deliver to 

the Company in accordance herewith. 

  
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	8.	 Miscellaneous. 

 

	 	8.1.	 Number and Gender; Examples. Where the context requires, the singular shall include the plural, the
plural shall include the singular, and any gender shall include all other genders. Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in
any manner the construction of the general statement to which it relates. 

  

	 	8.2.	 At-Will Employment. The parties agree that the
Executive’s employment with the Company constitutes “at-will” employment and may be terminated at any time, with or without cause or notice, by the Company or the Executive. The Executive
understands and agrees that neither the Executive’s job performance nor promotions, commendations, bonuses or the like (in each case, if any) from the Company give rise to or in any way serve as the basis for modification, amendment, or
extension, by implication or otherwise, of the Executive’s employment with the Company. 

  

	 	8.3.	 Section Headings. The section headings of, and titles of paragraphs and subparagraphs contained
in, this Agreement are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof. 

 

	 	8.4.	 Governing Law. This Agreement shall be deemed to have been executed and delivered within the
State of California, and the rights and obligations of the parties hereunder shall be construed and enforced in accordance with, and governed by, the laws of the State of California without regard to principles of conflict of laws.

  

	 	8.5.	 Severability. If any provision of this Agreement or the application thereof is held invalid, the
invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.

  

	 	8.6.	 Survival. This Agreement shall survive any Separation from Service by Executive (including
without limitation for Executive’s death or Disability), any Change in Control of the Company, and any bankruptcy, dissolution, merger or other disposition of the Company or its assets. If the Company is not the surviving entity in any Change
of Control transaction, the Company shall require the successor to assume this Agreement in connection with any Change in Control. 

  

	 	8.7.	 Entire Agreement. This Agreement (and the other documents referred to herein) embodies the entire
agreement of the parties hereto respecting the matters within its scope. This Agreement supersedes all prior and contemporaneous agreements of the parties hereto that directly or indirectly bears upon the subject matter hereof. Any prior
negotiations, correspondence, agreements, proposals or understandings relating to the subject matter hereof shall be deemed to have been merged into this Agreement, and to the extent inconsistent herewith, such negotiations, correspondence,
agreements, proposals, or understandings shall be deemed to be of no force or effect. There are no 

  
 12 

	 	
representations, warranties, or agreements, whether express or implied, or oral or written, with respect to the subject matter hereof, except as expressly set forth herein. Notwithstanding
anything above in this subsection 8.7 to the contrary, and for purposes of clarity, any written equity award agreement evidencing the terms and conditions of an equity award granted by the Company to the Executive (as to such award only), as
well as the Company’s rights under any trade secret, confidentiality, inventions or similar agreement or policy, are not integrated into this Agreement and shall continue in effect. 

 

	 	8.8.	 Modifications. This Agreement may not be amended, modified or changed (in whole or in part),
except by a formal, definitive written agreement which is executed by both of the parties hereto; provided, however, that any such subsequent agreement that would contract the Executive’s rights under this Agreement must expressly refer to this
Agreement in order for it to amend, modify or change (in whole or in part) the Executive’s rights under this Agreement.  

  

	 	8.9.	 Waiver. No waiver of any breach of any term or provision of this Agreement shall be construed to
be, nor shall be, a waiver of any other breach of this Agreement. No waiver shall be binding unless in writing and signed by the party giving such waiver. 

  

	 	8.10.	 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken
together, shall bear the signatures of all of the parties reflected hereon as the signatories. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose. 

 

	 	8.11.	 Legal Counsel; Mutual Drafting. Each party recognizes that this is a legally binding contract and
acknowledges and agrees that they have had the opportunity to consult with legal counsel of their choice. Each party has cooperated in the drafting, negotiation and preparation of this Agreement. Hence, in any construction to be made of this
Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such language. The Executive agrees and acknowledges that he or she has read and understands this Agreement, is entering into it freely
and voluntarily, and has been advised to seek counsel prior to entering into this Agreement and has had ample opportunity to do so. 

  

	 	8.12.	 Section 409A. 

 

	 	8.12.1.	 It is intended that any amounts payable under this Agreement shall either be exempt from or comply with
Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) (“Code Section 409A”) so as not to subject the Executive to payment of any additional tax, penalty
or interest imposed under Code Section 409A. The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest
extent reasonably possible) the intended benefit payable to the Executive. 

  
 13 

	 	8.12.2.	 If the Executive is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Executive’s Separation from Service, the Executive shall not be entitled to any payment or benefit pursuant to Section 2 until the
earlier of (i) the date which is six (6) months after his or her Separation from Service for any reason other than death, or (ii) the date of the Executive’s death. The provisions of this subsection 8.12 shall only apply
if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A. Any amounts otherwise payable to the Executive upon or in the six (6) month period following the Executive’s
Separation from Service that are not so paid by reason of this subsection 8.12 shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the
Executive’s Separation from Service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of the Executive’s death). 

 

	 	8.12.3.	 To the extent that any benefits or reimbursements pursuant to this Agreement are taxable to the Executive, any
reimbursement payment due to the Executive pursuant to this Agreement shall be paid to the Executive on or before the last day of the Executive’s taxable year following the taxable year in which the related expense was incurred. The benefits
and reimbursements pursuant to this Agreement are not subject to liquidation or exchange for another benefit and the amount of such benefits and reimbursements that the Executive receives in one taxable year shall not affect the amount of such
benefits or reimbursements that the Executive receives in any other taxable year. The Executive agrees to promptly submit to the Company receipts and any other documentation reasonably required to substantiate any such benefits and reimbursements in
order to facilitate the timely payment or reimbursement of the same. 

 [The remainder of this page
has intentionally been left blank.] 

  
 14 

 IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of
the Effective Date. 
  

			
	“COMPANY”
	
	CARETRUST REIT, INC.,
	a Maryland corporation, for itself and its several subsidiaries and affiliates
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	“EXECUTIVE”
	
	  

	[NAME]

  
 15Exhibit 10.01

 

STOCK PURCHASE AGREEMENT

 

among

 

PAC INDUSTRIES, INC.,

 

FIRST BANKERS TRUST SERVICES, INC., 

 

as the Trustee of the 

 

 

PAC INDUSTRIES, INC. EMPLOYEE STOCK OWNERSHIP
TRUST

 

KAITLYN A. COSTABILE, PHILIP A. COSTABILE
II, CHRISTINA MARIE COSTABILE, EMILY M. BRADBURY, KARRAH D. DEVLIN, SOMMER COSTABILE AND ROCCO J. COSTABILE,

 

FRANK COSTABILE, 

 

as Representative of the Warrant Holders

 

and

 

EVI INDUSTRIES, INC. 

 

dated as of

 

January 18, 2019

 

     

     

    

	Table of Contents

	 	Page
	ARTICLE I DEFINITIONS	2
	ARTICLE II PURCHASE AND SALE	14
	Section 2.01   Purchase and Sale	14
	Section 2.02   Purchase Price; Estimated Closing Cash Payment.	14
	Section 2.03   Payment of the Estimated Closing Cash Payment	15
	Section 2.04   Closing	16
	Section 2.05   Adjustment of Closing Cash Payment.	16
	Section 2.06   Adjustments for Tax Purposes	19
	Section 2.07   Withholding Taxes	19
	ARTICLE III REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY	19
	Section 3.01   Organization, Authority and Qualification of the Company.	20
	Section 3.02   Capitalization.	20
	Section 3.03   Subsidiaries	20
	Section 3.04   No Conflicts; Consents	20
	Section 3.05   Financial Statements.	21
	Section 3.06   Undisclosed Liabilities	21
	Section 3.07   Absence of Certain Changes, Events and Conditions	22
	Section 3.08   Material Contracts.	22
	Section 3.09   Real Property; Title to Assets.	23
	Section 3.10   Intellectual Property.	23
	Section 3.11   Insurance	24
	Section 3.12   Legal Proceedings; Governmental Orders.	24
	Section 3.13   Compliance With Laws; Permits.	25
	Section 3.14   Environmental Matters	25
	Section 3.15   Employee Benefit Matters.	26
	Section 3.16   Employment Matters.	30
	Section 3.17   Taxes.	31
	Section 3.18   Affiliate Transactions.	34
	Section 3.19   Bank Accounts	34
	Section 3.20   Corruption and Anti-Terrorism.	34

 

    -i- 

     

    

Table
of Contents

(continued)

	 	Page
	Section 3.21   Material Customers and Material Suppliers.	35
	Section 3.22   Accounts Receivable	35
	Section 3.23   Brokers	35
	ARTICLE IV REPRESENTATIONS AND WARRANTIES REGARDING Warrant holders	35
	Section 4.01   Capacity	36
	Section 4.02   No Conflicts; Consents	36
	Section 4.03   Warrants	36
	Section 4.04   Legal Proceedings	36
	ARTICLE V REPRESENTATIONS AND WARRANTIES REGARDING SELLER AND TRUSTEE	37
	Section 5.01   Authorization	37
	Section 5.02   No Conflicts; Consents	37
	Section 5.03   Ownership	37
	Section 5.04   Legal Proceedings	37
	Section 5.05   Investigation	38
	ARTICLE VI REPRESENTATIONS AND WARRANTIES REGARDING BUYER	38
	Section 6.01   Organization and Authority of Buyer	38
	Section 6.02   No Conflicts; Consents	38
	Section 6.03   Brokers	39
	Section 6.04   Legal Proceedings	39
	Section 6.05   Buyer Common Stock	39
	Section 6.06   SEC Documents	39
	Section 6.07   Investment Intention	39
	Section 6.08   Independent Investigation	40
	ARTICLE VII COVENANTS	40
	Section 7.01   Employees; Benefit Plans.	40
	Section 7.02   Public Announcements	40
	Section 7.03   Further Assurances	41
	Section 7.04   Transfer Taxes	41
	Section 7.05   338(h)(10) Election.	41
	Section 7.06   Purchase Price Allocation	42

    -ii- 

     

    

Table
of Contents

(continued)

	 	Page
	Section 7.07   Amendments to Plans; Post-Closing Administration.	42
	Section 7.08   Conduct of Business	44
	Section 7.09   Restrictions on Business	45
	Section 7.10   Access, Information and Nondisclosure	47
	Section 7.11   Regulatory and Other Approvals	48
	Section 7.12   Investigations	48
	Section 7.13   No Shop	48
	Section 7.14   Release of Liens	49
	Section 7.15   Business Relationships	49
	Section 7.16   Financing	49
	Section 7.17   Termination	49
	Section 7.18   Effect of Termination.	50
	Section 7.19   Sale of Buyer Common Stock	50
	Section 7.20   Warrants	50
	Section 7.21   2018 Audited Financial Statements	51
	ARTICLE VIII CLOSING CONDITIONS AND DELIVERABLES	51
	Section 8.01   Company Deliveries	51
	Section 8.02   Trustee Deliveries	52
	Section 8.03   Buyer Deliveries	53
	Section 8.04   Conditions to Obligations of Seller	53
	Section 8.05   Conditions to Obligations of Buyer	54
	ARTICLE IX INDEMNIFICATION	55
	Section 9.01   Survival	55
	Section 9.02   Escrow	55
	Section 9.03   Indemnification By Buyer	56
	Section 9.04   Certain Limitations	56
	Section 9.05   Indemnification Procedures.	57
	Section 9.06   Tax Treatment of Indemnification Payments	59
	Section 9.07   Exclusive Remedies	59
	Section 9.08   Other Limitations	60
	ARTICLE X MISCELLANEOUS	60

    -iii- 

     

    

Table
of Contents

(continued)

 

	 	Page
	Section 10.01   Expenses	60
	Section 10.02   Notices	60
	Section 10.03   Interpretation	61
	Section 10.04   Headings	62
	Section 10.05   Severability	62
	Section 10.06   Entire Agreement	62
	Section 10.07   Successors and Assigns	62
	Section 10.08   No Third-Party Beneficiaries	62
	Section 10.09   Amendment and Modification; Waiver	62
	Section 10.10   Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.	63
	Section 10.11   Specific Performance	63
	Section 10.12   Counterparts	64
	Section 10.13   Disclosure Schedules	64
	Section 10.14   Non-recourse	64
	Section 10.15   Warrant Holder Representative	64

    -iv- 

      

    

 

STOCK PURCHASE AGREEMENT

This
Stock Purchase Agreement (this “Agreement”), dated as of January 18, 2019, is entered into by and among PAC
INDUSTRIES, INC., a Pennsylvania corporation (the “Company”), the PAC INDUSTRIES, INC. EMPLOYEE STOCK OWNERSHIP
TRUST (“Trust”) acting herein through FIRST BANKERS TRUST SERVICES, INC. (“FBTS” or “Trustee”),
not in an individual or corporate capacity but solely as Trustee of the Trust established in connection with the PAC INDUSTRIES,
INC. EMPLOYEE STOCK OWNERSHIP PLAN (the “Plan”) (the Plan and the Trust referred to herein collectively as the
“ESOP” or “Seller”), KAITLYN A. COSTABILE, PHILIP A. COSTABILE II, CHRISTINA MARIE COSTABILE,
EMILY M. BRADBURY, KARRAH D. DEVLIN, SOMMER COSTABILE AND ROCCO J. COSTABILE (each, a “Warrant Holder,”
and collectively, “Warrant Holders”), Frank Costabile, not in an individual capacity
but in his capacity as the representative of the Warrant Holders (the “Warrant Holder Representative”), and
EVI INDUSTRIES, INC., a Delaware corporation (“Buyer”). The Company, Buyer, Seller and the Warrant Holders
are referred to collectively in this Agreement as the “Parties.”

RECITALS

WHEREAS,
the Company established the Plan, a qualified tax-exempt retirement plan, and its related Trust, effective as of January 1, 2008
(as amended from time to time, the ESOP);

WHEREAS, the
Company (a) sells, distributes, brokers, and supplies new, used and rebuilt equipment, parts, accessories and supplies and provides
installation, maintenance, service and repairs of commercial, industrial, and vended laundry equipment, rail and conveyor equipment,
steam and hot water boilers and heaters, and water reuse and recycling systems, (b) designs and plans commercial, industrial and
vended laundry, rail, boiler and water systems, and (c) installs industrial, commercial and vended laundries, (collectively the
“Business”);

WHEREAS,
Seller owns three hundred thousand (300,000) shares (the “Shares”) of common stock, par value $0.01 per share
(the “Company Common Stock”), of the Company;

WHEREAS,
Warrant Holders own warrants to purchase an aggregate of 116,965 shares of Company Common Stock (each a “Warrant”
and collectively, the “Warrants”), each with any exercise price of $3.65 per share;

WHEREAS,
Seller wishes to sell to Buyer, and Buyer wishes to purchase from Seller, the Shares (the “Stock Purchase”),
subject to the terms and conditions set forth herein;

WHEREAS,
prior to the Closing, each Warrant Holder shall, in accordance with Section 2(f) of each Warrant, put such Warrant Holder’s
Warrant to the Company and the Company shall pay the put price for each Warrant by delivering to each Warrant Holder a promissory
note pursuant to Section 2(f)(ii) of each Warrant;

WHEREAS,
the Parties (as defined herein) intend that the sale of the Shares by Seller to Buyer hereunder shall qualify as a “qualified
stock purchase” within the meaning of Section 338(d) of the Internal Revenue Code of 1986, as amended (the “Code”),
and the Parties intend to make a joint election pursuant to Section 338(h)(10) of the Code with respect to such qualified stock
purchase;

     

      

    

WHEREAS,
the Board of Directors of the Company has reviewed the terms and conditions of the Stock Purchase and has approved the same and
has recommended the Stock Purchase as in the best interests of the sole stockholder of the Company;

WHEREAS,
the Trustee has determined that the Stock Purchase is in the best interests of the ESOP and the Plan participants and their beneficiaries
and that the Stock Purchase is consistent with the Trustee’s fiduciary duties under Title I of ERISA (the “ERISA
Fiduciary Standards”) to sell the Shares to Buyer;

WHEREAS,
the Trustee has relied upon the Fairness Opinion from the Advisor dated and effective as of the date hereof for the Trustee’s
execution of this Agreement;

WHEREAS,
the terms and conditions of the Stock Purchase have been reviewed by and taken into account by the Advisor in rendering the Fairness
Opinion dated as of the date hereof;

WHEREAS,
it is in the best interests of all Parties hereto to execute and deliver this Agreement.

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

ARTICLE
I

DEFINITIONS

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

“338(h)(10)
Election” means an election under Section 338(h)(10) of the Code (and any corresponding election under state, local,
and foreign Tax Law) with respect to the purchase and sale of the Shares hereunder.

“338(h)(10)
Election Forms” has the meaning set forth in Section 7.08(a).

“2017 Balance
Sheet” has the meaning set forth in Section 3.05(a).

“2017 Balance
Sheet Date” has the meaning set forth in Section 3.05(a).

“2018
Audited Financial Statements” has the meaning set forth in Section 7.21

“Accounting
Principles” means the same accounting practices, procedures, policies and methods used and applied by the Company in
preparation of the Financial Statements, all of which are in accordance with GAAP.

“Advisor”
means SC&H Tax & Advisory Services, LLC, the independent financial advisor to the Trustee.

     2

      

    

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

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

“Allocation
Schedule” has the meaning set forth in Section 7.09.

“Anti-Terrorism
Laws” has the meaning set forth in Section 3.20(b).

“Audited
Financial Statements” has the meaning set forth in Section 3.05(a).

“Bank Accounts”
has the meaning set forth in Section 3.19.

“Benefit
Plan” has the meaning set forth in Section 3.15(a).

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

“Business
Combination” means, with respect to any Person, any merger, consolidation or combination to which such Person is a party,
any sale, dividend, split or other disposition of capital stock or other equity interests of such Person or any sale, dividend
or other disposition of a material portion of the assets of such Person.

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in Miami, Florida are authorized
or required by Law to be closed for business.

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

“Buyer
Benefit Plans” has the meaning set forth in Section 7.01(a).

“Buyer
Common Stock” means shares of common stock, par value $0.025 per share, of Buyer.

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

“Cap”
has the meaning set forth in Section 9.05(b).

“Cash”
means cash and cash equivalents of the Company.

“Cash Consideration”
means Six Million Four Hundred Thousand Dollars ($6,400,000).

“Closing”
has the meaning set forth in Section 2.04.

“Closing
Balance Sheet” has the meaning set forth in Section 3.05(a).

     3

      

    

“Closing
Cash” means Cash of the Company as of the Effective Time.

“Closing
Cash Payment” has the meaning set forth in Section 2.02(a).

“Closing
Date” has the meaning set forth in Section 2.04.

“Closing
Indebtedness” means the Indebtedness of the Company as of the Effective Time, other than Permitted Indebtedness.

“Closing
Transaction Expenses” means the Transaction Expenses of the Company, without giving effect to the Closing.

“Closing
Working Capital” has the meaning provided in Schedule 1.01 of the Disclosure Schedules.

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

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

“Company
Common Stock” has the meaning set forth in the recitals.

“Company
Continuing Employee” has the meaning set forth in Section 7.04(a).

“Company’s
2018 Contribution” has the meaning set forth in Section 7.07(f).

“Contract”
means any contract, lease, evidence of Indebtedness, mortgage, indenture, security agreement or other agreement (whether written
or oral).

“Customer
Deposits” means customer deposits of the Company as of the Closing Date calculated in accordance with GAAP.

“Decrease
Amount” has the meaning set forth in Section 2.05(c)(i).

“Deductible”
has the meaning set forth in Section 9.05(a).

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

“Disclosure
Schedules” means the Disclosure Schedules delivered by the Company, Seller, Warrant Holders and Buyer concurrently with
the execution and delivery of this Agreement.

“Disputed
Amounts” has the meaning set forth in Section 2.05(b)(iii).

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

“Effective
Time” has the meaning set forth in Section 2.04.

“Election
Date” has the meaning set forth in Section 3.17(a)(iii).

     4

      

    

“Employees”
means those Persons employed by the Company immediately prior to the Closing, including those on vacation, taking approved time
off or on any other leave of absence or on a disability with the legal or contractual right to return to employment, as set forth
in Section 3.16(c) of the Disclosure Schedules.

“Environment”
or “Environmental” means all air, surface water, groundwater, or land, including land surface or subsurface,
including all fish, wildlife, biota and all other natural resources.

“Environmental
Claim” means any and all administrative or judicial proceedings pursuant to or relating to any applicable Environmental
Law by any Person relating to any actual or potential (x) violation of or liability under any Environmental Law, (y) violation
of any Environmental Permit, or (z) liability for any costs or damages related to the presence, Environmental Release, or threatened
Environmental Release into the Environment, of any Hazardous Substances at any location, including, but not limited to, any off-Site
location to which Hazardous Substances or materials containing Hazardous Substances were sent for handling.

“Environmental
Law” means any and all Laws relating to the Environment.

“Environmental
Permit” means any Permit under or in connection with any Environmental Law.

“Environmental
Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing of a Hazardous Substance into the Environment, except those permitted under Environmental Law.

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

“ERISA
Affiliate” means any trade or business (whether or not incorporated) that would be treated at the relevant time together
with the Company as a “single employer” within the meaning of Section 414 of the Code.

“ERISA
Fiduciary Standards” has the meaning given to it in the Recitals.

“Escrow”
means the escrow fund established pursuant to the Escrow Agreement

“Escrow
Agent” means Fifth Third Bank, an Ohio banking corporation.

“Escrow
Agreement” means the Escrow Agreement in substantially the form attached hereto as Exhibit A, and as modified by the
Parties prior to Closing.

“Escrow
Amount” means an amount equal to the ESOP Escrow Amount plus the Warrant Holders Escrow Amount.

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

     5

      

    

“ESOP Equity
Consideration” means a number of shares of Buyer Common Stock equal to the quotient of (i) Three Million Nine Hundred
Eighty Three Thousand Seven Hundred Twenty One Dollars ($3,983,721) divided by (ii) the average closing price per share of Buyer
Common Stock on the NYSE American for the thirty (30) trading days immediately prior to the Closing Date as reported by the NYSE
American.

“ESOP Escrow
Amount” means Seven Hundred Nineteen Thousand Four Hundred Eighty Five Dollars ($719,485).

“ESOP Loan”
has the meaning set forth in Section 7.07(f).

“Estimated
Closing Cash Payment” has the meaning set forth in Section 2.02(b).

“Estimated
Closing Date Statement” has the meaning set forth in Section 2.02(b).

“Excess
Adjustment Amount” has the meaning set forth in Section 2.05(c)(i).

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

“Existing
Leases” means any lease between the Company and an affiliate of the Company.

“Facility
Leases” means the Facility leases in substantially the form attached hereto as Exhibits B-1 and B-2, between the Company
and PAC LLC.

“Fairness
Opinions” means the opinions, in form and substance in accordance with Section 3(18) of ERISA, prepared by the Advisor,
an “independent appraiser” (within the meaning of Section 401(a)(28)(C) of the Code), and issued to the Trustee that:
(a) the consideration to be received by the ESOP hereunder is not less than adequate consideration as that term is defined in Section
3(18) of ERISA and (b) that terms of the Stock Purchase and related transactions, taken as a whole, are fair to the ESOP from a
financial point of view.

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

“Final
Closing Cash Payment” means the Closing Cash Payment, as finally determined in accordance with Section 2.05.

“Final
Closing Date Statement” has the meaning set forth in Section 2.05(a).

“Financial
Statements” has the meaning set forth in Section 3.05(a).

“Fundamental
Representations” means the representations and warranties contained in Section 3.01 (Organization, Authority and Qualification
of the Company); Section 3.02 (Capitalization); Section 3.03 (Subsidiaries); Section 3.04 (No Conflicts; Consents); Section 3.14
(Environmental Matters); Section 3.15 (Employee Benefit Matters); Section 3.17 (Tax Matters); Section 3.23 (Brokers); Section 4.01
(Authorization), Section 4.02 (No Conflicts; Consents), 4.03 (Warrants), Section 5.01 (Authorization); Section 5.02 (No Conflicts;
Consents); Section 

     6

      

    

5.03 (Ownership); Section 6.01 (Organization and Authority of Buyer); Section 6.02 (No Conflicts; Consents);
Section 6.03 (Brokers); and Section 6.05 (Buyer Common Stock).

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

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

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

“Hazardous
Substance” means perchloroethylene, petroleum, petroleum hydrocarbons or petroleum products, petroleum by-products, radioactive
materials, asbestos or asbestos-containing materials, gasoline, diesel fuel, pesticides, radon, urea formaldehyde, lead or lead-containing
materials, polychlorinated biphenyls; and any other chemicals, materials, substances or wastes in any amount or concentration which
are now included in the definition of “hazardous substances,” “hazardous materials,” “hazardous wastes,”
“extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic
pollutants,” “pollutants,” “regulated substances,” “solid wastes,” or “contaminants”
or words of similar import, under any Environmental Law, in each case to the extent in excess of amounts or concentrations permitted
by applicable Environmental Law.

“Immediate
Family Member” of any Person, means, any child, stepchild, parent, stepparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law of such security holder, and any person (other than a tenant or employee)
sharing the household of such Person.

“Income
Tax Returns” means any Tax Return with respect to any Income Tax. “Increase Amount” has the meaning set forth
in Section 2.05(c)(ii).

“Income
Taxes” means any United States federal, state, local or non-U.S. Tax that, in whole or in part, is based on, measured
by or calculated by reference to income, profits, receipts or gains.

“Increase
Amount” has the meaning set forth in Section 2.05(c)(i).

“Indebtedness”
of any Person means, without duplication, all obligations of such Person (i) means as of any date: either (a) any Liability of
such Person (i) for borrowed money, (ii) under any reimbursement obligation relating to a letter of credit, bankers’ acceptance,
note purchase facility or similar instruments, (iii) evidenced by a bond, note, debenture or similar instrument (including a purchase
money obligation), (iv) for the payment of money relating to any lease that is required to be classified as a capitalized lease
obligation in accordance with GAAP, (v) for all or any part of the deferred purchase price of property or services, including 

     7

      

    

any
“earnout” or similar payments or any non-compete payments, (b) any Liability of others described in the preceding clause
(a) that such Person has guaranteed, that is recourse to such Person or any of its assets or that is otherwise its legal Liability
or that is secured in whole or in part by the assets of such Person. For purposes of this Agreement, “Indebtedness”
includes (A) any and all accrued interest, success fees, prepayment premiums, make whole premiums or penalties and fees or expenses
actually incurred (including attorneys’ fees) with respect to the prepayment of any Indebtedness, (B) all “cut”
but uncashed checks issued by the Company that are outstanding as of the Closing Date, (C) cash, book or bank account overdrafts,
including negative balance cash accounts and (D) any and all amounts owed by the Company to any of its respective Affiliates, including
Seller or any of its Affiliates.

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

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

“Independent
Accountant” has the meaning set forth in Section 2.05(c)(iii).

“Intellectual
Property” means (a) all trademarks, service marks, trade names, trade dress, product names and slogans both registered
and unregistered, and any common law rights and good will appurtenant thereto, and all applications and registrations thereof;
(b) all copyrights in copyrightable works and all other ownership rights in any works of authorship, any derivations thereof and
all moral rights appurtenant thereto and all applications and registrations thereof; (c) all registered, reserved and unregistered
domain names, uniform resource locators and keywords; (d) all computer and electronic data, documentation and software, including
both source and object code, computer and database applications and operating programs; (e) all rights relating to the use of any
name, image or likeness of any Person or the portrayal of a Person, either individually or together with others; (f) all trade
secrets and confidential business, technical and proprietary information, including ideas, research notes, development notes, know-how,
residuals, formulas, business methods and techniques, supplier lists, and marketing, financial and pricing data; (g) the right
to sue both in equity and for past, present and future damages of any or all of the foregoing; (h) all existing copies and tangible
embodiments of any or all of the foregoing, in whatever form or medium; (i) all right, title and interest (free and clear) in and
to the Company’s website(s), including without limitation, the framework and infrastructure of such website(s), the layout
design and the “look and feel” thereof, all related software, source code and object code, all CGI, HTML, XML or other
coding, all scripts and applets, all web graphics and data, all navigational buttons, all server configurations, and any and all
attendant intellectual property rights therein; and (j) all other intellectual property rights relating to any or all of the foregoing
including any renewals, continuations or extensions thereof.

“Interim
Balance Sheet” has the meaning set forth in Section 3.05(a).

“Interim
Balance Sheet Date” has the meaning set forth in Section 3.05(a).

“Interim
Financial Statements” has the meaning set forth in Section 3.05(a).

     8

      

    

“Key Employee”
means each of Frank Costabile, Rocco Costabile, Joseph Leo and Curt Smith.

“Knowledge
of the Company or Company’s Knowledge” or any other similar knowledge qualification, means the actual knowledge
of Key Employees, and such knowledge that such individuals would reasonably be expected to have in the normal course of exercising
his duties based on applicable title or position.

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

“Liability”
and “Liabilities” means any and all debts, liabilities, commitments and obligations, whether direct or indirect,
fixed, contingent or absolute, matured or unmatured, liquidated or unliquidated, accrued or not accrued, due or to become due,
known or unknown, asserted or not asserted, ascertained or ascertainable.

“Lien”
means any claim, lien, charge, mortgage, pledge, hypothecation, assessment, security interest, lease, lien (statutory or other),
option, levy, charge, economic interest, right of use, conditional sale Contract, title retention Contract, or other encumbrance
of any kind whatsoever, or other Contract to give any of the foregoing.

“Losses”
means losses, damages, liabilities, claims, awards, judgments, costs or expenses, including reasonable attorneys’ fees.

“Material
Adverse Effect” means (a) with respect to the Company, the assets of the Company, or liabilities (including contingent
liabilities), (i) a change in (or effect on) the condition (financial or otherwise), properties, assets of the Company or liabilities
(including contingent liabilities), rights, obligations, system of internal controls, operations, operating results, business or
prospects (including, without limitation, the Company’s equipment sales pipeline and equipment sales backlog), which change
(or effect) is materially adverse to the financial condition, properties, assets or liabilities, rights, obligations, system of
internal controls, operations, operating results, business or prospects (including, without limitation, the Company’s equipment
sales pipeline and equipment sales backlog) of the Company; or (ii) a material adverse effect on the ability of the Company or
Seller to consummate the transactions contemplated hereby, and (b) with respect to Buyer, a material adverse effect on its ability
to consummate the transactions contemplated hereby; provided, however, that with respect to the Company, “Material Adverse
Effect” shall not include any event, occurrence, fact, condition or change, directly or indirectly, arising out of or attributable
to: (i) general economic or political conditions; (ii) conditions generally affecting the industries in which the Company operates;
(iii) any changes in financial or securities markets in general; (iv) acts of war (whether or not declared), armed hostilities
or terrorism, or the escalation or worsening thereof; (v) any action required or permitted by this Agreement; (vi) any changes
in applicable Laws or accounting rules, including GAAP; or (vii) the public announcement, pendency or completion of the transactions
contemplated by this Agreement; provided further, however, that any event, occurrence, fact, condition or change referred to in
clauses (i) through (iv) immediately above shall be taken into account in determining whether a Material Adverse Effect has occurred
or 

     9

      

    

could reasonably be expected to occur to the extent that such event, occurrence, fact, condition or change has a disproportionate
effect on the Company compared to other participants in the industries in which the Company conducts its Business.

“Material
Contracts” has the meaning set forth in Section 3.08(a).

“Material
Customer” has the meaning set forth in Section 3.21(a).

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

“Minimum
Cash Amount” means cash in an amount equal to Customer Deposits.

“Non-Competition
Agreements” means the Non-Competition Agreements in substantially the form attached hereto as Exhibit C, between the
Company and each of the Key Employees, and Warrant Holders.

“Nondisclosure
Agreement” has the meaning set forth in Section 7.10.

“Organizational
Documents” means, with respect to any Person that is not a natural person, the organizational documents of such Person,
as amended to the date in question. The term Organizational Documents includes articles or certificates of incorporation, by-laws,
stockholders agreements, certificates or articles of formation, operating agreements, limited partnership agreements, joint venture
agreements, and other similar documents pertaining to the governance and organization of the Person in question (including those
pertaining to any trust).

“Owned
Intellectual Property” has the meaning set forth in Section 3.1(b).

“Parties”
shall mean collectively, Buyer, Seller and the Company.

“Party”
shall mean any of Buyer, Seller or the Company.

“Patriot
Act” has the meaning set forth in Section 3.20(b).

“Permits”
means all permits, licenses, franchises, approvals, authorizations, and consents required to be obtained from Governmental Authorities.

“Permitted
Indebtedness” means that certain Promissory Note, dated February 1, 2017, issued by the Company to East Coast Equipment
Service, provided that the outstanding principal amount of such Promissory Note at the Effective Time does not exceed $200,000.

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

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

“PPCA”
has the meaning set forth in Section 3.15(k).

“Pre-Closing
Period” has the meaning set forth in Section 7.08.

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“Pre-Closing
Taxes” means (i) any Taxes of the Company for all taxable periods ending on or before the Closing Date and the portion
through the end of the Closing Date for any taxable period that includes (but does not end on) the Closing Date, (ii) any Taxes
of Seller with respect to matters contemplated in clause (i), (iii) Taxes arising out of the transactions contemplated by this
Agreement, (iv) any Tax imposed under Section 1374 of the Code, (v) any Taxes arising out of any failure of the Company to be a
valid S corporation within the meaning of Section 1361 of the Code at any time since the Election Date for federal, state or local
income Tax purposes in all jurisdictions in which the Company has been obligated to file income Tax Returns, (vi) any Taxes arising
out of an invalid or ineffective 338(h)(10) Election or an inability to make a 338(h)(10) Election (in each case, other than those
Taxes directly resulting from an action or inaction by Buyer), (vii) any amount required to be paid by the Company under an indemnification
agreement (other than this Agreement) or on a transferee or successor liability theory, in respect of any Taxes of any Person,
which indemnification agreement or application of transferee or successor liability theory relates to an acquisition, disposition
or similar transaction occurring on or prior to the Closing Date, and (viii) any Taxes of any Person under Treasury Regulations
section 1.1502-6 (or any similar provision of state, local, or foreign law) with respect to any Tax period or portion thereof ending
on or prior to the Closing Date.

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

“Put Notice”
has the meaning set forth in Section 7.20.

“Qualified
Benefit Plan” has the meaning set forth in Section 3.15(b).

“Recovery”
has the meaning set forth in Section 9.09.

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

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

“Resolution
Period” has the meaning set forth in Section 2.05(b)(ii).

“Review
Period” has the meaning set forth in Section 2.05(b)(i).

“Sale Notice”
has the meaning set forth in Section 7.20

“SEC”
means the United States Securities and Exchange Commission.

“SEC Documents”
means all forms, proxy statements, registration statements, reports, schedules, and other documents filed, or required to be filed,
by Buyer or any of its subsidiaries with the SEC pursuant to the federal Securities Laws.

     11

      

    

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

“Securities
Laws” means the Securities Act and the Exchange Act and the rules and regulations promulgated thereunder.

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

“Seller
Indemnified Party” has the meaning set forth in Section 9.04.

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

“Site”
means any of the real properties currently or previously owned, leased, used or operated by the Company, including, without limitation,
all soil, subsoil, surface waters, and ground water thereat.

“Statement
of Objections” has the meaning set forth in Section 2.05(b)(ii).

“Stock
Purchase” has the meaning set forth in the recitals.

“Stockholders
Agreement” means the Stockholder Agreement in substantially the form attached hereto as Exhibit D, between the Company
and each of the Key Employees, and Warrant Holders.

“Target
Working Capital” means a range between Three Million One Hundred Thousand Dollars ($3,100,000) (the “Minimum
Target Working Capital”) and Four Million Two Hundred Fifty Thousand Dollars ($4,250,000) (the “Maximum Target
Working Capital”).

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

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

“Third-Party
Claim” has the meaning set forth in Section 9.06(a).

“Transaction
Documents” means this Agreement, the Escrow Agreement, the Non-Competition Agreements, the Stockholders Agreement, and
the Facility Leases.

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“Transaction
Expenses” means (i) all of the fees, expenses and other payments incurred by the Company, Warrant Holders, Warrant Holder
Representative, or Trustee on behalf of the ESOP or Seller in connection with the transactions contemplated by this Agreement (on
their own behalf and/or on behalf of Trustee or Seller), (ii) all fees and expenses of legal, accounting and financial advisors,
the Trustee, the Advisor, data room providers, and other advisors of Seller, Trustee, the Company or the Warrant Holders, (iii)
one-half of the fees and expenses of the Escrow Agent under the Escrow Agreement, and (iv) all fees, expenses and other payments
of the Company, Warrant Holders, Trustee on behalf of the ESOP or Seller including, without limitation, change of control sale
bonuses or payments, phantom equity, deferred compensation, severance payments to any current or former employee, director or independent
contractor of the Company, but not including ordinary and usual expenses in connection with maintenance of the ESOP as an employee
benefit plan, that the Company, Trustee on behalf of the ESOP, or Seller are obligated to pay at or after Closing (plus the employer
portion of any employment, payroll, and/or any other Taxes thereon), in each case to the extent payable from the general assets
of the Company and not paid in full prior to the Closing.

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

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

“Uncollected
Accounts Receivable” has the meaning set forth in Section 2.05(d).

“Volume
Submitter Plan” has the meaning set forth in Revenue Procedure 2015–36, Internal Revenue Bulletin, 2015-27.

“WARN Act”
means the federal Worker Adjustment and Retraining Notification Act of 1988, and similar state, local and foreign Laws related
to plant closings, relocations, mass layoffs and employment losses.

“Warrant”
or “Warrants” means has the meaning set forth in the preamble.

“Warrant
Holders” has the meaning set forth in the preamble.

“Warrant
Holders Equity Consideration” means a number of shares of Buyer Common Stock equal to the quotient of (i) Two Million
Two Hundred Sixty Six Thousand Two Hundred Seventy Nine Dollars ($2,266,279) divided by (ii) the average closing price per share
of Buyer Common Stock on the NYSE American for the thirty (30) trading days immediately prior to the Closing Date as reported by
the NYSE American.

“Warrant
Holders Escrow Amount” means Two Hundred Eighty Thousand Five Hundred Fifteen Dollars ($280,515).

“Warrant
Holders Notes” means the notes to be issued by the Company to the Warrant Holders upon exercise by the Warrant Holders
of the of the Put Option under the Warrants.

“Warrant
Holders Payment” has the meaning set forth in Section 2.03(e).

“Warrant
Holder Representative” has the meaning set forth in the preamble.

 

     13

      

    

ARTICLE
II

PURCHASE AND SALE

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

Section 2.02       
Purchase Price; Estimated Closing Cash Payment.

(a)               
Purchase Price. The aggregate purchase price for the Shares shall be an amount equal to TWELVE MILLION EIGHT HUNDRED
FIFTY THOUSAND DOLLARS ($12,850,000) (the “Purchase Price”). Buyer shall (1) at the Closing, deliver to Seller
the ESOP Equity Consideration, and (2) at the times and in the manner and amounts set forth in Section 2.03 and Section
2.05 hereof, pay to Seller an amount equal to the following (the “Closing Cash Payment”):

(1)              
the Cash Consideration:

(2)              
plus the amount, if any, by which the Closing Working Capital exceeds the Maximum Target Working Capital (for the
avoidance of doubt, if the Closing Working Capital is within the range of Target Working Capital, the adjustment provided pursuant
to this Section 2.02(a)(2) shall be zero);

(3)              
minus the amount, if any, by which the Minimum Target Working Capital exceeds the Closing Working Capital (for the
avoidance of doubt, if the Closing Working Capital is within the range of Target Working Capital, the adjustment provided pursuant
to this Section 2.02(a)(3) shall be zero);

(4)              
minus, the amount, if any, by which the Minimum Cash Amount exceeds the Closing Cash;

(5)              
minus the amount of Closing Indebtedness, including with limitation, the cash portion of the Warrant Holders Payment;
and

(6)              
minus the amount of Closing Transaction Expenses (not otherwise accounted for in the calculation of the Target Working
Capital).

Notwithstanding the foregoing, any amounts
in excess of the Cash Consideration shall be allocated and paid 71.95% to the ESOP and 28.05% to the Warrant Holders.

(b)              
Estimated Closing Cash Payment. No later than ten (10) Business Days prior to the Closing Date, Buyer shall prepare
and deliver to the Company and Seller a statement in accordance with the Accounting Principles and in the form attached hereto
as Exhibit E (the “Estimated Closing Date Statement”) setting forth Buyer’s good faith estimates of the
Closing Cash (together with evidence thereof satisfactory to Buyer and Seller), the Closing Indebtedness, the Closing Transaction
Expenses, the Closing Working Capital, and the calculation of the 

     14

      

    

estimated Closing Cash Payment, as determined in accordance with
Section 2.02(a) (the “Estimated Closing Cash Payment”). The Company shall permit Buyer, Seller, Warrant
Holder Representative and their respective Representatives to have access to the books, personnel, records and other documents
(including work papers) pertaining to or used in connection with the preparation of the Estimated Closing Date Statement.

Section 2.03       
Payment of the Estimated Closing Cash Payment. At the Closing, Buyer shall deliver the
Estimated Closing Cash Payment as follows:

(a)               
Consideration. The Estimated Closing Cash Payment, less the ESOP Escrow Amount, by wire transfer of immediately available
funds to an account of Seller designated in writing by Seller to Buyer no later than three (3) Business Days prior to the Closing
Date.

(b)              
Escrow Amount. An amount equal to the ESOP Escrow Amount and the Warrant Holders Escrow Amount (which amount will
be deducted from the Warrant Holders Payment) by wire transfer of immediately available funds to an account of the Escrow Agent
designated in writing by Escrow Agent to Buyer no later than three (3) Business Days prior to the Closing Date. The Escrow Amount
will be held and disbursed by the Escrow Agent in accordance with the terms of this Agreement and the Escrow Agreement. Pursuant
to the Escrow Agreement, on the date that is twelve (12) months following the Closing Date, the Escrow Agent shall distribute,
in immediately available funds to accounts designated by Seller and Warrant Holder Representative, the then remaining balance of
the Escrow Amount less the aggregate amount of any then-pending claims for indemnification by Buyer under ARTICLE IX, plus
accrued interest (if any) on such amount to be distributed. Upon resolution of any such then-pending claim for indemnification
by Buyer under ARTICLE IX, all amounts relating to any such then-pending claim for indemnification, together with any accrued
interest thereon, shall be released to Seller and Warrant Holder Representative, on the one hand, or Buyer, on the other hand,
by the Escrow Agent in accordance with the resolution of such claim.

(c)               
Indebtedness. No later than five (5) Business Days prior to the Closing Date, the Company shall deliver to Buyer
and Seller, from each holder of Closing Indebtedness (other than the holders of the Warrant Holders Notes which payoff letter shall
be delivered in accordance with Section 2.03(e)), a payoff letter, in form and substance satisfactory to Buyer, and wire
instructions indicating the amount required to discharge in full such Closing Indebtedness (other than the Warrant Holders Notes
which indebtedness shall be discharged in accordance with Section 2.03(e)) as of such estimated Closing Date for the transactions
contemplated by this Agreement plus a per diem amount for any days that the Closing Date occurs after such estimated Closing Date.
On behalf of the Company Buyer will cause payment to be delivered to such holder in respect of such Closing Indebtedness (other
than the Warrant Holders Notes which shall be paid in accordance with Section 2.03(e)) on the Closing Date.

(d)              
Transaction Expenses. No later than two (2) Business Days prior to the Closing Date, the Company shall deliver to
Buyer and Seller, for each Person owed Closing Transaction Expenses, a payoff letter or invoice, in form and substance satisfactory
to Buyer, and wire instructions indicating the amount required to discharge in full the Closing Transaction Expenses owed to that
Person as of the mutually agreed estimated Closing Date. On behalf of the Company Buyer will cause payment to be delivered to such
Persons in respect of such Closing Transaction Expenses on the Closing Date in the amount reflected in the applicable payoff letter
or invoice for each such Person. The Parties acknowledge that the Closing 

     15

      

    

Transaction Expenses are obligations of the Company and
nothing in this Agreement shall be deemed to make them obligations of Buyer. Payment of such Closing Transaction Expenses by Buyer
on behalf of the Company on the Closing Date is being made for convenience only.

(e)               
Warrant Holders Notes. No later than ten (10) Business Days prior to the Closing Date, the Company shall deliver
to Buyer, from the holders of Warrant Holders Notes, a payoff letter, in form and substance satisfactory to Buyer indicating the
amount required to discharge in full the Warrant Holders Notes held by the Warrant Holders (collectively the “Warrant
Holders Payment”) as of such estimated Closing Date. On behalf of the Company, Buyer will cause payment to be delivered
to the Warrant Holder Representative in respect of all Warrant Holders Notes an amount equal to the Warrant Holders Payment, which
Warrant Holders Payment shall consist of (i) Six Hundred Twenty Two Thousand Fifty Seven Dollars and Thirty Four Cents ($622,057.34),
less the Warrant Holders Escrow Amount, by wire transfer of immediately available funds to an account of Seller designated in writing
by Warrant Holder Representative no later than three (3) Business Days prior to the Closing Date, and (ii) the Warrant Holders
Equity Consideration.

Section 2.04       
Closing. The purchase and sale of the Shares contemplated hereby shall take place at a
closing (the “Closing”) to be held at the offices of Troutman Sanders LLP, 875 Third Avenue, New York, New York
10022, counsel to Buyer, at 10:00 a.m., local time, within three (3) Business Days after the satisfaction or waiver, in writing,
of all conditions to Closing set forth in this Agreement, or at such other date, time or place as may be agreed to in writing by
the Parties hereto (the “Closing Date”). At the joint written election of the Parties, the Closing may also
take place by either electronic or physical delivery of documents in escrow to Troutman Sanders LLP rather than meeting in one
place to accomplish the same. The Closing shall be deemed to take place at 12:01 a.m. on the Closing Date (the “Effective
Time”).

Section 2.05       
Adjustment of Closing Cash Payment.

(a)               
Final Closing Date Statement. Within one hundred and twenty days (120) days after the Closing Date, Buyer shall prepare
and deliver to Seller a statement (the “Final Closing Date Statement”) setting forth its calculations of the
(i) Closing Cash, (ii) Closing Indebtedness, (iii) Closing Transaction Expenses, (iv) Closing Working Capital, and (v) Final Closing
Cash Payment. The Final Closing Date Statement will be prepared consistent with the Accounting Principles and shall be in the form
attached hereto as Exhibit F.

(b)              
Examination and Review.

(i)                
Examination. After receipt of the Final Closing Date Statement, Seller and Warrant Holder Representative shall have
thirty (30) days (the “Review Period”) to review the Final Closing Date Statement. During the Review Period,
Buyer shall grant Seller, Warrant Holder Representative, and their respective Representatives reasonable access to the books, records
and work papers of the Company for the purpose of reviewing the Final Closing Date Statement and to prepare a Statement of Objections
(defined below), provided, that such access shall be in a manner that does not interfere in any material respect with the normal
business 

     16

      

    

operations of Buyer or the Company and shall be requested by Seller and the Warrant Holder Representative at reasonable
times and upon reasonable notice.

(ii)              
Objection. On or prior to the last day of the Review Period, Seller and Warrant Holder Representative may object
to the Final Closing Date Statement by delivering to Buyer a written statement setting forth Seller’s and Warrant Holder
Representative’s objections in reasonable detail, indicating each disputed item or amount and the basis for and Seller’s
and Warrant Holder Representative’s disagreement therewith (the “Statement of Objections”). If Seller
and Warrant Holder Representative fail to deliver the Statement of Objections before the expiration of the Review Period, the Final
Closing Date Statement and the calculations contained therein shall be deemed to have been accepted by Seller and Warrant Holder
Representative and shall be final and binding. In addition, all items not expressly disputed in a timely Statement of Objections
shall be deemed to have been accepted by Seller and Warrant Holder Representative and shall be final and binding. If Seller and
Warrant Holder Representative deliver the Statement of Objections before the expiration of the Review Period, Buyer, on the one
hand, and Seller and Warrant Holder Representative, on the other hand, shall negotiate in good faith to resolve such objections
within thirty (30) days after the delivery of the Statement of Objections (the “Resolution Period”), and, if
the same are so resolved within the Resolution Period, the Final Closing Date Statement and the calculations contained therein,
in each case with such changes as may have been previously agreed in writing by Buyer, on the one hand, and Seller and Warrant
Holder Representative, on the other hand, shall be final and binding and shall not be subject to judicial review.

(iii)            
Resolution of Disputes. If Seller and Warrant Holder Representative, on the one hand, and Buyer, on the other hand,
fail to reach an agreement with respect to all of the matters set forth in the Statement of Objections before expiration of the
Resolution Period, then any amounts remaining in dispute (“Disputed Amounts”) shall be submitted for resolution
to an independent, nationally recognized accounting firm (the “Independent Accountant”) who, acting as experts
and not arbitrators, shall resolve the Disputed Amounts only and make any adjustments to the Final Closing Date Statement and the
calculations contained therein. The Independent Accountant shall be a firm with no business ties to any of Warrant Holder Representative,
Warrant Holders, Seller, Company or Buyer, or any of their respective Affiliates, within the past three (3) years, and shall be
mutually agreed to and selected by Seller and Warrant Holder Representative, on the one hand, and Buyer, on the other hand. The
Parties hereto agree that all adjustments shall be made without regard to materiality and that the items set forth on the Final
Closing Date Statement shall be determined in accordance with the definitions and provisions of this Agreement. The Independent
Accountant shall only decide the specific items under dispute by the Parties and their decision for each Disputed Amount must be
within the range of values assigned to each such item in the Final Closing Date Statement and the Statement of Objections, respectively.
Each of Buyer, on the one hand, and Seller and Warrant Holder Representative, on the other hand, shall be afforded the opportunity
to present to the Independent Accountant any materials related to the determination and to discuss the determination with the Independent
Accountant; provided, however, that each such party will provide the other with copies of any materials provided to the Independent
Accountant.

(iv)            
Fees of the Independent Accountant. The fees and expenses of the Independent Accountant shall be paid based upon
the percentage that the amount actually 

     17

      

    

contested but not awarded to Warrant Holder Representative and Seller, on the one hand,
or Buyer on the other hand, respectively, bears to the aggregate amount actually contested by Seller and Warrant Holder Representative,
on the one hand, and Buyer, on the other hand, as determined by the Independent Accountant. For example, if Buyer claims that the
Closing Working Capital is $1,000,000, and Seller and Warrant Holder Representative claim that the Closing Working Capital is $1,500,000,
and the Independent Accountant determines that the Closing Working Capital is $1,200,000, then the costs and expenses of the Independent
Accountant will be allocated 60% (i.e., 300,000 ÷ 500,000) to Seller and Warrant Holder Representative and 40% (i.e., 200,000
÷ 500,000) to Buyer. If Seller and Warrant Holder Representative are obligated to pay the Independent Accountant any fee
pursuant to this Section 2.05(b), then such fee shall only be payable on behalf of Seller and Warrant Holder Representative
from the Escrow Amount.

(v)              
Determination by Independent Accountant. Buyer, on the one hand, and Seller and Warrant Holder Representative, on
the other hand, shall use their commercially reasonable efforts to cause the Independent Accountant to make its determination as
soon as practicable within thirty (30) days (or such other time as the Parties hereto shall agree in writing) after their engagement,
and their resolution of the Disputed Amounts; provided, however, that any delay on the part of the Independent Accountant in its
determination shall not invalidate such determination or deprive the Independent Accountant of jurisdiction to resolve disputes
submitted to it. The Independent Accountant’s adjustments to the Final Closing Date Statement and the calculations contained
therein shall be conclusive and binding upon the Parties hereto and shall not be subject to judicial review.

(c)               
Adjustment Payment. Upon final determination of the Final Closing Cash Payment, whether by Seller’s and Warrant
Holder Representative’s failure to object to the Final Closing Date Statement within the thirty (30) day period provided
above, by mutual agreement of Seller and Warrant Holder Representative, on the one hand, and Buyer, on the other hand or by determination
of the Independent Accountant, the Purchase Price will be adjusted as follows:

(i)                
If the Final Closing Cash Payment is less than the Estimated Closing Cash Payment (the amount by which the Final Closing
Cash Payment is less than the Estimated Closing Cash Payment will be referred to herein as the “Decrease Amount”),
but such Decrease Amount is less than the Escrow Amount, then, within five (5) Business Days of the final determination of the
Final Closing Cash Payment pursuant to this Section 2.05, Buyer, Warrant Holder Representative and Seller will jointly instruct
the Escrow Agent to pay the Decrease Amount (less any amounts to be paid to the Independent Accountant and allocable to Seller
pursuant to Section 2.05(b), if any) to Buyer, by wire transfer of immediately available funds to the account designated in writing
by Buyer. If the Decrease Amount exceeds the Escrow Amount, then Buyer, Warrant Holder Representative and Seller shall jointly
instruct the Escrow Agent to pay Buyer the entire Escrow Amount (less any amounts to be paid to the Independent Accountant and
allocable to Seller pursuant to Section 2.05(b), if any), by wire transfer of immediately available funds to the account
designated in writing by Buyer, Seller and Warrant Holder Representative. For the avoidance of doubt, Seller and Warrant Holders
shall have no liability under the preceding sentence beyond the portion of the Escrow Amount then-remaining in the Escrow, and
Buyer’s sole and exclusive remedy for any adjustment to the Purchase Price 

     18

      

    

made pursuant to Section 2.05 shall be
the portion of the Escrow Amount then-remaining in the Escrow.

(ii)              
If the Final Closing Cash Payment is greater than the Estimated Closing Cash Payment (the amount by which the Final Closing
Cash Payment is greater than the Estimated Closing Cash Payment will be referred to herein as the “Increase Amount”),
then, within five (5) Business Days of the final determination of the Final Closing Cash Payment pursuant to this Section 2.05,
Buyer will pay (or cause the Company to pay) to Seller 71.95% of the Increase Amount and to Warrant Holders Representative 28.05%
of the Increase Amount (but less any amounts to be paid to the Independent Accountant and allocable to Seller and Warrant Holders
Representative pursuant to Section 2.05(b), if any), in each case by wire transfer of immediately available funds to the
accounts designated in writing by Seller and Warrant Holder Representative.

(iii)            
If the Final Closing Cash Payment is equal to the Estimated Closing Cash Payment, then, within five (5) Business Days of
the final determination of the Final Closing Cash Payment pursuant to this Section 2.05, Buyer, Warrant Holder Representative
and Seller shall jointly instruct the Escrow Agent to pay to the Independent Accountant any amounts to be paid to the Independent
Accountant and allocable to Seller and Warrant Holder Representative pursuant to Section 2.05(b)), if any, by wire transfer
of immediately available funds to the account designated in writing by the Independent Account.

Section 2.06       
Adjustments for Tax Purposes. Any payments made pursuant to Section 2.05 shall
be treated as an adjustment to the Purchase Price by the Parties for Tax purposes, unless otherwise required by Law.

Section 2.07       
Withholding Taxes. The Company, Buyer, its Affiliates, and Escrow Agent shall be entitled
to deduct and withhold from the amounts otherwise payable by it pursuant to this Agreement to any Person such amounts as it reasonably
determines it is required to deduct and withhold with respect to the making of such payment for Taxes, and to collect any necessary
forms relating to Taxes, including Forms W-8 or W-9, as applicable, or any similar information, from Seller and other recipients
of payments hereunder. The party seeking to withhold under this Section 2.07 shall provide written notice of any such required
withholding no later than five (5) Business Days prior to the Closing Date and shall use commercially reasonable efforts to reduce
or eliminate any such withholding. To the extent such amounts are so withheld and/or paid over to or deposited with the relevant
Governmental Authority by the Company, Buyer, its Affiliates, or Escrow Agent, such withheld amounts shall be treated for all purposes
of this Agreement as having been paid to such Person in respect to which such deduction and withholding was made.

ARTICLE
III

REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY

The Company represents
and warrants to Buyer that, except as provided in a schedule to this Agreement, the statements contained in this ARTICLE III
are true, correct and complete as of the date hereof.

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Section 3.01       
Organization, Authority and Qualification of the Company.

(a)               
The Company is a corporation, duly organized, validly existing and in good standing under the Laws of the Commonwealth of
Pennsylvania and has all necessary corporate power and authority to own, operate or lease the properties and assets now owned,
operated or leased by it and to carry on its business as it is currently conducted. The Company is duly qualified, licensed or
admitted to do business and is in good standing in the States of Pennsylvania, Maryland, Delaware, New Jersey, Virginia, and West
Virginia, which are the only jurisdictions in which the Company is required to be qualified, licensed or admitted to do business.

(b)              
The execution and delivery by the Company of this Agreement and the Transaction Documents, the performance by the Company
of its obligations hereunder and thereunder, and the consummation by the Company of the transactions contemplated hereby and thereby
have been duly authorized by all requisite corporate action on the part of the Company. This Agreement and each other Transaction
Document have been duly executed and delivered by the Company, and (assuming due authorization, execution and delivery by Seller
and Buyer) this Agreement and the other Transaction Documents constitute legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, except as such enforceability may be limited by ERISA or bankruptcy, insolvency,
reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless
of whether enforcement is sought in a proceeding at law or in equity).

Section 3.02       
Capitalization.

(a)               
Section 3.02(a) of the Disclosure Schedules sets forth a complete and correct list of the authorized and issued capital
stock of the Company. Such capital stock includes all of the issued and outstanding capital stock of the Company. Such capital
stock has been duly authorized and validly issued, is fully paid and non-assessable and was not issued in violation of, and is
not subject to, any preemptive rights or other similar rights of any Person. Except as set forth on Section 3.02(b) of the
Disclosure Schedules, there are no outstanding or authorized options, warrants, convertible securities or other rights, agreements,
arrangements or commitments of any character relating to the capital stock of the Company or obligating Seller or the Company to
issue or sell any shares of capital stock of, or any other interest in, the Company. Except as set forth on Section 3.02(c)
of the Disclosure Schedules, the Company does not have outstanding or authorized any stock appreciation, phantom stock, profit
participation or similar rights. There are no voting trusts, stockholder agreements, proxies or other agreements or understandings
in effect with respect to the voting or transfer of any of the Shares.

Section 3.03       
Subsidiaries. The Company does not own, directly or indirectly (or possesses any options
or other rights to acquire), any direct or indirect ownership interests in any business, corporation, partnership, limited liability
company, association, joint venture, trust, or other entity.

Section 3.04       
No Conflicts; Consents. The execution, delivery and performance by Seller and the Company
of this Agreement and the other Transaction Documents, and the consummation of the transactions contemplated hereby, do not and
will not: (a) result in a 

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violation or breach of any provision of the Organizational Documents of the Company; (b) result in a
material violation or breach of any provision of any Law or Governmental Order applicable to the Company or any of its respective
assets; or (c) except as set forth in Section 3.04 of the Disclosure Schedules, require the consent, notice or other action
by any Person under, conflict with, result in a violation or breach of, constitute a default under or result in the acceleration
of any supplier agreement, distributor agreement, note, bond, mortgage, indenture, deed of trust, lease, agreement or contract
to which the Company is party or by which any of its properties or assets are bound. No consent, approval, Permit, Governmental
Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to the Company in connection
with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.

Section 3.05       
Financial Statements.

(a)               
Section 3.05(a) of the Disclosure Schedules contains copies of the Company’s (i) audited consolidated financial
statements consisting of the consolidated balance sheet of the Company as at December 31, 2017 and the related consolidated statements
of income, stockholders’ equity and cash flows for the year then ended (the “Audited Financial Statements”),
(ii) unaudited consolidated financial statements consisting of the balance sheet of the Company as at September 30, 2018, and the
related consolidated statements of income and cash flow for the three and nine month period then ended, and (ii) unaudited consolidated
financial statements consisting of the balance sheet of the Company as at November 30, 2018, and the related consolidated statements
of income for the eleven month period then ended (collectively (ii) and (iii), the “Interim Financial Statements”).
No later than ten (10) Business Days prior to the Closing Date, the Company shall deliver to Buyer a balance sheet of the Company
as of the Closing Date (the “Closing Balance Sheet”) (all of the documents identified under this Section
3.05(a) collectively, the “Financial Statements”).

(b)              
The Financial Statements have been prepared in accordance with the Accounting Principles applied on a consistent basis throughout
the period involved, subject, in the case of the Interim Financial Statements, to normal and recurring year-end adjustments (the
effect of which will not be material) and the absence of notes (that, if presented, would not differ materially from those presented
in the Audited Financial Statements). The Financial Statements fairly present in all material respects the financial condition
of the Company as of the respective dates they were prepared and the results of the operations of the Company for the periods indicated.
The consolidated balance sheet of the Company as of December 31, 2017, is referred to herein as the “2017 Balance Sheet”
and the date thereof as the “2017 Balance Sheet Date” and the consolidated balance sheet of the Company as of
November 30, 2018, is referred to herein as the “Interim Balance Sheet” and the date thereof as the “Interim
Balance Sheet Date”.

Section 3.06       
Undisclosed Liabilities. Except as set forth on Section 3.06 of the Disclosure
Schedules, the Company does not have any obligations or liabilities which are material individually or in the aggregate (whether
accrued, absolute, contingent, unliquidated or otherwise, whether due or to become due and regardless of when and by whom asserted)
at or as of the Closing Date, except (i) liabilities reflected on the Interim Balance Sheet and (ii) liabilities and obligations
which have arisen after the Interim Balance Sheet Date in the ordinary course of business and which are not material individually
or in the aggregate.

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Section 3.07       
Absence of Certain Changes, Events and Conditions. Except as set forth on Section 3.07
of the Disclosure Schedules, since the 2017 Balance Sheet Date.

(a)               
the Company has been operated in the ordinary course consistent with past practice and there has not been any Material Adverse
Effect with respect to the Company or any event or development that, individually or together with any or all other such events,
could reasonably be expected to result in a Material Adverse Effect with respect to the Company;

(b)              
there has not been any material loss, damage or destruction to, or any material interruption in the use of, any of the assets
of the Company used in, or held for use in, the operation of the business of the Company (whether or not covered by insurance);

(c)               
the Company has have not taken any action that would be prohibited by the terms of Sections 7.08 and 7.09 if proposed
to be taken after the date of this Agreement.

(d)              
the Company has not (i) granted bonuses, whether monetary or otherwise, or increased wages, salary, bonus opportunities,
severance, pension or other compensation or benefits in respect of any current or former employees, officers, directors, independent
contractors or consultants of the Company or their spouses, dependents or beneficiaries other than as required by Law or as provided
for in any existing written agreements as of the date hereof; (ii) changed terms of employment or service for any such person or
(iii) taken any action to increase the amount of or accelerate the vesting, funding or payment of any compensation or benefits
to any such Person;

(e)               
the Company has not adopted, modified or terminated any (i) employment, severance, retention, change in control or other
compensation or benefit agreement, plan or arrangement with any current or former employees, officers, directors, independent contractors
or consultants of the Company or their spouses, dependents or beneficiaries, or (ii) other than as required by Law, Benefit Plan
or any plan or arrangement that would constitute a Benefit Plan if in existence on the date hereof; and

(f)               
the Company has not issued, sold or otherwise disposed of any of its capital stock, or granted any options, warrants, or
other rights to purchase or acquire (including upon conversion, exchange or exercise) any of its capital stock, or granted any
stock appreciation rights, phantom stock, profit participation or similar rights.

Section 3.08       
Material Contracts.

(a)               
Section 3.08(a) of the Disclosure Schedules lists each agreement of the Company involving the payment of estimated
aggregate consideration in excess of $50,000 in the 12 months ended December 31, 2018 or requiring performance by any party more
than one year from the date hereof, which cannot be cancelled by the Company without penalty or without more than ninety (90) days’
notice.

(b)              
Each Material Contract is in full force and effect and constitutes a legal, valid and binding agreement of, enforceable
in accordance with its terms against, the Company as a party thereto and, to the Knowledge of the Company, the other party thereto.
Neither the Company nor, to the Knowledge of the Company, any other party to any Material Contract, is in violation 

     22

      

    

or breach of
or default under any such Material Contract (or, with notice or lapse of time or both, would be in violation or breach of or default
under any such Material Contract). The Company has not received any notice (whether written or oral) from any other party to any
Material Contract to the termination or non-renewal of such Material Contract, whether as a result of the consummation of the transactions
contemplated hereunder.

Section 3.09       
Real Property; Title to Assets.

(a)               
The Company will not own any real property at Closing. All real property leased for a period greater than one (1) month
by the Company is listed on Section 3.09(a) of the Disclosure Schedules (collectively, the “Leased Real Property”).
The Company (i) has a valid and enforceable leasehold interest with respect to each item of Leased Real Property leased by it,
subject to no Liens, and (ii) is in possession of and has quiet enjoyment of each item of Leased Real Property leased by it. None
of the Leased Real Property is subject to any sublease of all or any portion thereof and no Person other than the Company has any
right to occupy any of the Leased Real Property. The Company is not required to and does not pay any real estate taxes on the Leased
Real Property except as additional rent under the terms of the lease. The Leased Real Property is adequate for the current needs
of the Company and the anticipated needs of the Company. All of the leasehold improvements at the Leased Real Property are adequate
for the current needs of the Company and are in good condition. There is no pending or, to the Knowledge of the Company, proposed,
anticipated or contemplated, annexation, condemnation, eminent domain or similar proceeding, or any zoning or tax or assessment
proceeding affecting, or that may affect, all or any portion of the Leased Real Property.

(b)              
All tangible personal property owned by the Company is free and clear of all Liens, other than Liens disclosed on Section
3.09(b) of the Disclosure Schedules. is in, in all material respects, good working order and condition, ordinary wear and tear
excepted. The tangible personal property has been maintained in accordance with reasonably prudent standards. The Company is in
possession of and has good title to, or has valid leasehold interests in or valid rights under a Contract to use, all tangible
personal property used in the conduct of the Business including, but not limited to, all tangible personal property reflected on
the 2017 Balance Sheet and tangible personal property acquired since the 2017 Balance Sheet Date, in each case other than tangible
personal property disposed of since such date in the ordinary course of the Company’s business consistent with past practice.

Section 3.10       
Intellectual Property.

(a)               
Other than commercially available off-the-shelf software, Section 3.10(a) of the Disclosure Schedules sets forth
all Intellectual Property that is licensed by the Company and used in the conduct of the Company’s Business (the “Licensed
Intellectual Property”) and the names of the licensors of such Licensed Intellectual Property. Except as set forth in
Section 3.10(a) of the Disclosure Schedules, the Company has no obligation to compensate any Person for the license of any
Licensed Intellectual Property. The Company has not granted to any Person any license, option or other rights to use any of the
Licensed Intellectual Property, whether or not requiring the payment of royalties. No license for any Licensed Intellectual Property
will terminate by reason of the execution, delivery and performance of this Agreement or any Transaction Document or the consummation
of the transactions contemplated hereby and 

     23

      

    

thereby. The Company has such rights to use the Licensed Intellectual Property, free
and clear of all Liens, as are necessary in connection with the conduct of the business of the Company in the ordinary course consistent
with past practice.

(b)              
Section 3.10(b) of the Disclosure Schedules sets forth (i) all material Intellectual Property owned by the Company
and used in the conduct of the business of the Company (the “Owned Intellectual Property”) and (ii) the Company’s
existing registrations, and applications for registration, for or with respect to any of the Owned Intellectual Property. The Company
has taken reasonable steps to maintain its confidential information. To the Knowledge of the Company, the use by the Company of
its Owned Intellectual Property does not infringe upon or otherwise violate the rights of any other Person in or to such Owned
Intellectual Property. The Company has not granted to any Person any license, option or other rights to use any Owned Intellectual
Property, whether or not requiring the payment of royalties.

(c)               
Except as set forth on Section 3.10(c) of the Disclosure Schedules, there are no pending or, to the Knowledge of
the Company, threatened actions, suits, claims, investigations or other legal proceedings pending (i) relating to the Company’s
use of any Licensed Intellectual Property or Owned Intellectual Property or (ii) claiming that such Person has any ownership of,
right to use or other rights with respect to any Licensed Intellectual Property or Owned Intellectual Property. The Licensed Intellectual
Property and the Owned Intellectual Property constitute all of the Intellectual Property necessary for the conduct of the business
of the Company in the ordinary course consistent with past practice.

Section 3.11       
Insurance. Section 3.11 of the Disclosure Schedules contains a true and complete
list of all liability, property, workers’ compensation, automobile, directors’ and officers’ liability and other
insurance policies currently in effect that insure the business of the Company or the operations or employees of the Company, or
affect or relate to the ownership, use or operation of any of the assets of the Company (including the names and addresses of the
insured party thereunder and the insurers, the expiration dates thereof, the annual premiums and payment terms thereof, the amounts
of coverage and deductibles thereunder, a brief description of the interests insured thereby and a copy of a detail loss history
report issued by the insurer with respect to the prior six (6) year period). The insurance policies listed on Section 3.11
of the Disclosure Schedules are sufficient for compliance in all material respects with all applicable Laws and Contracts to which
the Company is a party or by which it is bound. The Company has not has received notice (whether written or oral) that any insurer
under any policy referred to in this Section 3.11 is denying liability with respect to a claim thereunder or defending under
a reservation of rights clause. Section 3.11 of the Disclosure Schedules lists each claim filed by the Company under any
of the foregoing policies during the period covered by the loss runs referred to above and the results of each of such claims.

Section 3.12       
Legal Proceedings; Governmental Orders.

(a)               
Except as set forth in Section 3.12(a) of the Disclosure Schedules, (i) there are no actions, suits, claims, investigations
or other legal proceedings pending or, to the Company’s Knowledge, threatened against or by the Company affecting any of
its properties or assets, and (ii) to the Company’s Knowledge, no event has occurred or circumstances exist that may give

     24

      

    

rise to, or serve as a basis for, any such action, suit, claim, investigation or other legal proceeding.

(b)              
Except as set forth in Section 3.12(b) of the Disclosure Schedules, there are no outstanding Governmental Orders
and no unsatisfied judgments, penalties or awards against or affecting the Company or any of its properties or assets. To the Company’s
Knowledge, no officer, director, or key employee of the Company is subject to any Governmental Order that prohibits such Person
from engaging in or continuing any conduct, activity or practice related to the business of the Company.

Section 3.13       
Compliance With Laws; Permits.

(a)               
Except as set forth in Section 3.13(a) of the Disclosure Schedules, the Company is, and has been during the prior
four (4) years, in compliance with all Laws applicable to the Company, its Business, properties or assets. The Company has not
received during the prior four (4) years any written notice or other communication from any Governmental Authority regarding any
actual, alleged, possible or potential violation of, or failure to comply with, any applicable Laws. The Company is not subject
to any audits, examinations or, to the Company’s Knowledge, investigations by any Governmental Authority.

(b)              
All material Permits required for the Company to conduct its business have been obtained by the Company and are valid and
in full force and effect.

Section 3.14       
Environmental Matters. Except as would not have a Material Adverse Effect with respect
to the Company, (i) the Company is in compliance with all Environmental Laws, has all required Environmental Permits and is in
compliance with the terms thereof; (ii) no Site is a treatment, storage or disposal facility, as defined in and regulated under
the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., is on or ever was listed or is proposed for listing
on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.
§ 9601 et seq., or on any similar state list of sites requiring investigation or cleanup; (iii) there are no pending or outstanding
corrective actions by any Governmental Authority for the investigation, remediation or cleanup of any Site for which the Company
will be liable; (iv) prior to or during the Company’s operations on of the Site, there has been no Environmental Release
of a Hazardous Substance at, from, in, to, on or under any Site and no Hazardous Substances are present in, on, about or migrating
to or from any Site for which the Company will be liable; (v) there are no past, pending, or, to the Knowledge of the Company,
threatened Environmental Claims against the Company; (vi) neither the Company nor any predecessor thereof has transported or arranged
for the treatment of any Hazardous Substance to any Site location; (vii) there are no (A) underground storage tanks, (B) polychlorinated
biphenyl containing equipment, or (C) asbestos containing material, on any Site for which the Company will be liable; and (viii)
there have been no environmental investigations conducted by or on behalf of, the Company with respect to any Site or any treatment
of any Hazardous Substance on any Site. 

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Section 3.15       
Employee Benefit Matters.

(a)               
Section 3.15(a) of the Disclosure Schedules contains a correct and complete list of each benefit, retirement, employee
stock ownership, employment, consulting, compensation, incentive, bonus, stock option, restricted stock, stock appreciation right,
phantom equity, change in control, severance, vacation, paid time off, group health, life insurance, disability, welfare, fringe-benefit
and other material benefit agreement, plan, policy and program, whether or not reduced to writing, funded or otherwise, including
without limitation any “employee benefit plan” within the meaning of Section 3(3) of ERISA, whether or not subject
to ERISA, that is maintained, sponsored, contributed to, or required to be contributed to by the Company, for the benefit of any
current or former director, officer, employee or independent contractor of the Company or any spouse, dependent or beneficiary
of any such Person, or under which the Company has any liability, contingent or otherwise, including as the result of any ERISA
Affiliate, by reason of partnership, guaranty or indemnity or with respect to any previously-terminated benefit agreement, plan,
policy or program (as listed on Section 3.15(a) of the Disclosure Schedules, each, a “Benefit Plan”).

(b)              
Except as set forth in Section 3.15(b) of the Disclosure Schedules, each Benefit Plan and related trust has been
established, maintained and administered in accordance with, and complies with, in all material respects, all applicable Laws (including
ERISA, the Code and applicable local Laws) and has been administered consistent with its terms and all written representations
made by officers and human resources personnel of the Company to the current and former employees, directors, officers, consultants
and independent contractors of the Company and their spouses, dependents and beneficiaries. Each Benefit Plan that is intended
to be qualified under Section 401(a) of the Code (a “Qualified Benefit Plan”) is so qualified and has received
a favorable determination letter from the Internal Revenue Service, or with respect to a Volume Submitter Plan, can rely on an
advisory letter from the Internal Revenue Service to the Volume Submitter Plan sponsor, to the effect that the current form of
such Qualified Benefit Plan is so qualified and that the plan and the trust related thereto are exempt from federal income Taxes
under Sections 401(a) and 501(a), respectively, of the Code, and nothing has occurred that could reasonably be expected to cause
the revocation of such determination letter from the Internal Revenue Service or the unavailability of reliance on such determination
or advisory letter from the Internal Revenue Service. Except as set forth in Section 3.15(b) of the Disclosure Schedules,
all benefits, contributions and premiums required by and due under the terms of each Benefit Plan or applicable Law have been timely
paid in accordance with the terms of such Benefit Plan and the terms of all applicable Laws, and all benefits, contributions and
premiums required by but not yet due under the terms of each Benefit Plan or applicable Law are properly accrued on the Financial
Statements and Interim Balance Sheet as required by GAAP or applicable Law. There are no outstanding defaults or violations by
any party to any Benefit Plan. Neither the Company nor any other party has been in breach of any fiduciary obligation with respect
to any Benefit Plan or the trusts or other funding media relating thereto. With respect to each Benefit Plan, no events have occurred
or are reasonably expected to occur that have resulted in or would subject the Company to a Tax under Sections 4971 or 4975 of
the Code or Section 406 of ERISA or the assets of the Company to a lien under Section 430(k) of the Code or Section 303(k) of ERISA.

     26

      

    

(c)               
No Benefit Plan: (i) is subject to the minimum funding standards of Section 302 of ERISA or Section 412 of the Code or subject
to Title IV of ERISA; (ii) is a “multiemployer plan” (as defined in Section 3(37) of ERISA); (iii) is a multiple employer
plan within the meaning of Sections 4063 or 4064 of ERISA; or (iv) is a multiple employer welfare arrangement within the meaning
of Section 3(40) of ERISA, and neither the Company nor any ERISA Affiliate has or has ever had any liability with respect to any
such type of Benefit Plan. The Company: (i) has not withdrawn from, or previously terminated, any pension plan or multiemployer
plan under circumstances resulting (or expected to result) in a liability to the Pension Benefit Guaranty Corporation or such pension
plan or multiemployer plan; or (ii) has not engaged in any transaction which would give rise to a liability of the Company or Buyer
or any of its Affiliates under Section 4069 or Section 4212(c) of ERISA.

(d)              
Other than as required under Section 4980B of the Code or other applicable Law, with respect to which the recipient pays
the full premium for such continuation coverage, no Benefit Plan provides benefits or coverage in the nature of health, life, disability
or other welfare insurance or benefits following retirement or other termination of employment or service. Nothing has occurred
with respect to any Benefit Plan that has subjected or could reasonably be expected to subject the Company or any of its ERISA
Affiliates or, with respect to any period on or after the Closing Date, Buyer or any of its Affiliates, to a penalty under Section
502 of ERISA or to Tax or penalty under Section 4975, 4980B or 4980H of the Code.

(e)               
Except as set forth in Section 3.15(e) of the Disclosure Schedules: (i) there is no pending or, to the Company’s
Knowledge, threatened action relating to a Benefit Plan (other than for benefit claims in the ordinary course pursuant to the express
terms of the applicable Benefit Plan); and (ii) no Benefit Plan is currently or has within the six years prior to the date hereof
been the subject of an examination or audit by a Governmental Authority or an application or filing under any correction or similar
program of any Governmental Authority. The Company has not incurred, and no facts exist which reasonably could be expected to result
in, any liability, tax, fee or penalty to the Company with respect to any Benefit Plan under any applicable Law including without
limitation the Code or ERISA (other than to pay premiums, contributions or benefits in the ordinary course consistent with the
terms of such plans).

(f)               
Except as set forth in Section 3.15(f) of the Disclosure Schedules, no Benefit Plan exists that could: (i) result
in the payment to any current or former director, officer, employee or independent contractor of the Company or any spouse, dependent
or beneficiary of any such Person of any money or other property, except as a result of any plan termination of any Benefit Plan
specifically provided for in this Agreement; (ii) accelerate the vesting or time of payment of or provide any additional rights
or benefits (including an increase in or funding of compensation or benefits through a trust or otherwise) to any current or former
director, officer, employee or independent contractor of the Company or any spouse, dependent or beneficiary of any such Person,
except as a result of any plan termination of any Benefit Plan specifically provided for in this Agreement; or (iii) limit or restrict
the ability of Buyer or its Affiliates to merge, amend or terminate any Benefit Plan, in each case, as a result of the execution
of this Agreement and/or the consummation of the transactions that are the subject of this Agreement (either alone or in connection
with any concurrent or subsequent event). Neither the execution of this Agreement nor the consummation of the transactions contemplated
hereby (either alone or in connection 

     27

      

    

with any concurrent or subsequent event) will result in “excess parachute payments”
within the meaning of Section 280G(b) of the Code.

(g)              
Each Person who is classified by the Company as an employee or independent contractor has been properly classified as such
for all purposes, including for Taxes and for purposes of participation in and accrual of benefits under any Benefit Plan. There
exists no condition or set of circumstances that could subject the Company or any Benefit Plan to any liability, tax, penalty or
fee under ERISA, the Code or any applicable Law relating to the failure to properly classify any service provider of the Company
as an “employee” or “independent contractor” for any purpose whatsoever.

(h)              
Each Benefit Plan that is subject to Section 409A of the Code has been maintained in form and operated in compliance with
the operational and documentary requirements of Section 409A of the Code and has been administered in compliance with its terms.
The Company has no obligation to gross up, reimburse or otherwise indemnify any Person for any Taxes that might be incurred as
the result of Sections 280G, 409A or 4999 of the Code.

(i)                
Without limiting the foregoing, the ESOP has been administered according to its terms and has been established, maintained
and administered in accordance in all material respects with the Code, ERISA and other applicable Laws, including, but not limited
to, the requirements of Sections 401(a), 409 and 4975 of the Code and the regulations promulgated thereunder. The ESOP constitutes
an “employee stock ownership plan” (as such term is defined in Section 4975(e)(7) of the Code and Section 407(d)(6)
of ERISA). Except as disclosed in Section 3.15(i) of the Disclosure Schedules, no corrections to the administration of the
ESOP have been made or are required, and there are no voluntary correction requests in process with the U.S. Department of Labor,
the IRS or any other Governmental Authority. All allocations of the Shares and payments to participants of amounts in exchange
for the Shares, if any, have been made in accordance with the terms of the ESOP, including the requirement that any allocation
or sale or exchange of the Shares be made at a fair market value determined by an independent appraiser. No sale (or purchase)
of the Shares by the ESOP to the Company or to any other disqualified person (within the meaning of Section 4975 of the Code) or
party-in-interest (within the meaning of ERISA) has constituted a non-exempt prohibited transaction under Section 4975 of the Code
or under ERISA; and each sale (or purchase) of the Shares by or to the ESOP has been made, with respect to any sale, for no less
than (or, with respect to any purchase, no more than) adequate consideration (as that term is defined in Section 3(18) of ERISA).
No sale (or purchase) of the Shares has, or will, result in an imposition of penalties upon the Company or the ESOP under Section
4978 of the Code or Section 4979A of the Code. There is not currently in effect any “verified written statement” signed
by the Company or any predecessor in connection with any sale of the Shares to the ESOP under a Section 1042 transaction (within
the meaning of Section 1042 of the Code). With respect to the ESOP, (i) allocations to participants were made in accordance with
Section 409(b) of the Code, to the extent applicable under Section 409(a) of the Code; (ii) all the Company contributions to the
ESOP were deductible under Section 404 of the Code for the year made; (iii) the voting requirements of the ESOP and Section 409(e)
of the Code and the valuation requirements of Section 408(e) of ERISA have always been complied with and (iv) no allocations were
ever made in violation of Sections 409(n) or 409(p) of the Code. Neither the Trustee nor any participant or beneficiary had or
has any right to vote on the transactions contemplated by this Agreement, or any portion thereof, under the terms of the 

     28

      

    

ESOP or
applicable Law. Except as set forth in Section 3.15(i) of the Disclosure Schedules, there are no current legal proceedings or,
to the Knowledge of the Company, any threatened legal proceedings against the ESOP, any fiduciaries (within the meaning of ERISA)
of the ESOP (with respect to their fiduciary duties to the ESOP), or the Company or Seller in connection with its administration
of the ESOP by current or former participants or beneficiaries, the U.S. Department of Labor or the IRS, and neither the U.S. Department
of Labor nor the IRS is auditing or investigating the ESOP or has made inquiries about the form, establishment or administration
of the ESOP or any transaction in which the ESOP engaged during the last five (5) full calendar years. Except as disclosed in Section
3.15(i) of the Disclosure Schedules, no fiduciary (within the meaning of ERISA) of the ESOP is indemnified by, or has any rights
to indemnity from, the Company or the ESOP for any fiduciary liability he, she or it may incur or may have incurred as a fiduciary
of the ESOP. The Company has fully complied with all of its obligations under the ESOP and under ERISA and the Code with respect
to the ESOP.

(j)                
Each Benefit Plan that is an “employee pension benefit plan” within the meaning of Section 3(2) of ERISA and
not a Qualified Benefit Plan is exempt from Parts 2, 3 and 4 of Title I of ERISA as an unfunded plan that is maintained primarily
for the purpose of providing deferred compensation for a select group of management or highly compensated employees pursuant to
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. Except as set forth in Schedule 3.15(j), no assets of the Company are allocated
to or held by a “rabbi trust” or similar funding vehicle.

(k)              
All Benefit Plans that are group health plans have been operated and administered in compliance with the Patient Protection
and Affordable Care Act (“PPACA”), the Health Care and Education Reconciliation Act of 2010 and all applicable
regulations and guidance thereunder. To the extent any Benefit Plan is intended to be grandfathered under the terms of PPACA, the
Company has complied with the applicable provisions of PPACA, the Code, ERISA and applicable Laws in all material respects, and
the Company has not taken, or failed to take, any action which would cause such Benefit Plan to lose such grandfathered status.

(l)                
The Company has delivered to Buyer accurate and complete copies of all documents setting forth the terms of each Benefit
Plan, including, if applicable, (i) any amendments thereto and all related trust documents; (ii) the three most recent annual reports
thereto (Forms 5500 and all schedules and financial statements attached thereto); (iii) the most recent summary plan description
together with any summaries of material modifications; (iv) all material contracts relating to each Benefit Plan, including administrative
and service agreements and insurance contracts; (v) the most recent IRS determination letter or opinion letter issued with respect
to any Qualified Benefit Plan, (vi) all material written materials provided to employees regarding benefits under any Benefit Plans
that could result in liability to the Company, (vii) all correspondence related to any audit, investigation, review or request
for information from any Governmental Authority relating to any Benefit Plan in the prior five (5) years; (viii) all coverage,
discrimination and related testing with respect to each Benefit Plan within the last three years, and (ix) the most recent appraisal
of the Company prepared by the Company’s financial advisor in connection with the transactions contemplated by this Agreement.

(m)            
The Company has the right under the terms of each Benefit Plan and under applicable Law to amend, revise, merge or terminate
such plan (or its participation in such plan) 

     29

      

    

at any time exclusively and unilaterally by action of the Company, and no additional
expenses, costs, contributions or funding would be required to properly effect such termination.

(n)              
Neither the Company nor any of its directors, officers or executives has made any commitment (written or oral, binding or
otherwise) to adopt or establish any new Benefit Plan or to modify or amend any Benefit Plan.

(o)              
The ESOP constitutes an “employee stock ownership plan” (as such term is defined in Section 4975(e)(7) of the
Code and Section 407(d)(6) of ERISA. Assuming (i) the consideration to be received by the ESOP hereunder will be no less than adequate
consideration (within the meaning of ERISA Section 3(18), (ii) the delivery of the Fairness Opinions to the Trustee and (iii) the
Buyer was a “disqualified person” and a “party in interest” under the Code and ERISA, respectively, the
execution, delivery and performance by the Trustee on behalf of Seller of this Agreement and the other Transaction Documents to
which Seller is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not (assuming
the passage of time or the giving of notice or both) constitute a non-exempt “prohibited transaction” as defined in
Code Section 4975 or ERISA Section 406 (and after the application of the exemptions under Code Section 4975(d)(13) and ERISA Section
408(e), respectively).

Section 3.16       
Employment Matters.

(a)               
Except as set forth in Section 3.16(a) of the Disclosure Schedules, the Company is not a party to, or bound by (and
for the prior two (2) years have not been a party to or bound by), any collective bargaining or other agreement with a labor organization
representing any of their Employees. To the Knowledge of the Company, no union organizing campaign or activity is in progress with
respect to any Employees and no question concerning representation exists respecting such Employees. Except as set forth in Section
3.16(a) of the Disclosure Schedules, during the prior two (2) years there has not been, nor, to the Company’s Knowledge,
has there been any threat of, any strike, slowdown, work stoppage, lockout, concerted refusal to work overtime or other similar
labor activity or dispute affecting the Company.

(b)              
The Company is now and for the prior four (4) years have been in compliance in all material respects with all applicable
Laws pertaining to employment and employment practices to the extent they relate to Employees of (or applicants for employment
with) the Company, including but not limited to Laws relating to labor relations, employment discrimination, harassment and retaliation,
reasonable accommodations, immigration, wages and hours, safety and health, workers’ compensation and leaves of absence.
Every U.S.-based employee of the Company is authorized to work in the United States. Except as set forth in Section 3.16(b)
of the Disclosure Schedules, there are no actions, suits, claims, investigations or other legal proceedings against the Company
pending, or to the Company’s Knowledge, threatened to be brought or filed, by or with any Governmental Authority or arbitrator
in connection with the employment of any current or former employee of the Company, including, without limitation, any claim relating
to unfair labor practices, employment discrimination, harassment, retaliation, equal pay, wage and hour, immigration or any other
employment related matter arising under applicable Laws.

     30

      

    

(c)               
Section 3.16(c) of the Disclosure Schedules contains a list of each Employee of the Company, as well as such Employee’s
(i) name, (ii) job title, (iii) location of employment, (iv) annual base compensation or regular hourly rate of pay, (v) commission
structure or bonus opportunity, (vi) status as exempt or non-exempt under the Fair Labor Standards Act, (vii) status as full-time,
part-time, and/or temporary, (viii) hire date, (ix) current or anticipated leave status (if applicable, and excluding any scheduled
vacation or paid time off to be taken in the ordinary course of business), (x) total compensation paid for the prior calendar year,
(xi) accrued and unused vacation or other paid time off, and (xii) a description of any other accrued and unpaid compensation.
Except as set forth in Section 3.16(c) of the Disclosure Schedules, no offer of employment has been made by the Company
that remains outstanding and has not yet been accepted, or which has been accepted but where the employment has not yet started.
To the Knowledge of the Company, none of the Employees has indicated to the Company that he or she intends to resign, retire or
terminate his or her employment with the Company. The Company have the right to terminate the employment of each of their Employees
at will and to terminate the engagement of any of their independent contractors without incurring any penalty or liability.

(d)              
The Company has correctly classified each Employee as exempt or nonexempt under the Fair Labor Standards Act and similar
state Laws. All independent contractors providing services to the Company have been properly classified as independent contractors
for purposes of federal and applicable state Laws, including but not limited to Laws concerning Taxes and the Company has not received
any notice from any Governmental Authority disputing such classification.

(e)               
Except as set forth in Section 3.16(e) of the Disclosure Schedules, all compensation, including wages, commissions
and bonuses payable to current or former employees, independent contractors or consultants for services performed on or prior to
the date hereof and the Closing Date, has been paid in full or is included in the Closing Working Capital as a current liability
and there are no outstanding agreements, understandings or commitments of the Company with respect to any compensation, commissions
or bonuses.

Section 3.17       
Taxes.

(a)               
Except as set forth in Section 3.17 of the Disclosure Schedules:

(i)                
All Tax Returns required to be filed by or on behalf of Seller and the Company have been properly prepared and duly and
timely filed (taking into account any valid extensions). All such Tax Returns are true, complete and correct in all respects. All
Taxes due and owing (whether or not shown or required to be shown on any Tax Return) by the Company have been fully and timely
paid. No claim has ever been made by a Governmental Authority in a jurisdiction where the Company does not file Tax Returns that
it is or may be subject to taxation by that jurisdiction which has not been resolved.

(ii)              
There are no Liens for unpaid Taxes on any assets of any of the Company (except for statutory liens for Taxes not yet due
and payable). The Company has withheld and paid all Taxes required by applicable Law to have been withheld in connection with amounts
paid or owing to any Person and has complied with all information reporting and recordkeeping requirements with respect thereto.
The unpaid Taxes of the Company did not, as of the dates of 

     31

      

    

the Financial Statements, exceed the reserve for Tax liability (excluding
any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of
the balance sheets (rather than in any notes thereto) contained in the Financial Statements. Since the Interim Balance Sheet Date,
the Company as not has incurred any liability for Taxes outside the ordinary course of business.

(iii)            
The Company has made an election under Section 1362(a) of the Code to be an “S corporation,” as defined in Section
1361(a)(1) (and any comparable provision of state and local Tax Law in jurisdictions in which such election was available), and
all persons who were shareholders of the Company on the day on which such election was made validly consented to such election.
Such election became effective as of the effective date of the election, January 1, 1992 (“Election Date”) and
has remained in effect properly and continuously from the Election Date to and including the Closing Date. No actions have been
taken and no omissions have occurred which would cause such election to terminate or to be revoked at any time prior to the Closing
Date. Since the Election Date, (A) all the shareholders of the Company have been eligible shareholders under Section 1361 of the
Code and the Treasury Regulations thereunder, and (B) the Company has had only a single class of stock within the meaning of Section
1361 of the Code and the Treasury Regulations thereunder.

(iv)            
Reserved.

(v)              
The Company shall not be liable for any Tax under Section 1374 of the Code in connection with the deemed sale of the Company’s
assets caused by the Section 338(h)(10) Election. The Company has not, in the past five (5) years: (A) acquired assets from another
corporation in a transaction in which the Company’s Tax basis for the acquired assets was determined, in whole or in part,
by reference to the Tax basis of the acquired assets (or any other property) in the hands of the transferor or (B) acquired the
stock of any corporation that is a qualified subchapter S subsidiary within the meaning of Section 1361(b)(3)(B) of the Code.

(vi)            
The Company has never been a party to or a partner in any joint venture, partnership or other arrangement or contract that
is treated as a partnership for Tax purposes. The Company does not own equity of any other entity.

(vii)          
There are no ongoing actions, suits, claims, investigations or other legal proceedings by any taxing authority against the
Company. No notice of deficiency, proposed assessment or adjustment with respect to any Tax or Tax Return of the Company has been
received by the Company. There are no Tax audits, claims, inquiries or other administrative proceedings, discussions or court proceedings
presently pending or threatened with regard to any Tax or Tax Return against the Company. The Company has not agreed to any extension
or waiver of the statute of limitation applicable to any Tax or Tax Return, or agreed to any extension of time with respect to
a Tax assessment or deficiency.

(viii)        
The Company has delivered or made available to Buyer (A) complete and correct copies of all federal income Tax Returns relating
to the Company for the last three (3) years, and (B) complete and correct copies of all private letter rulings, revenue agent reports,
information document requests, notices of proposed deficiencies, deficiency notices, protests, petitions, closing agreements, settlement
agreements, pending ruling requests and any similar 

     32

      

    

documents submitted by, received by, or agreed to by or on behalf of the Company,
or shareholder to the extent related to the Company’s qualification as an S corporation, relating to Taxes for the prior
three (3) years

(ix)            
The Company is not a party to any Tax allocation, Tax sharing, Tax indemnification or similar agreement under which the
Company could be liable for the Taxes of any other Person. The Company does not have any liability for the Taxes of any Person
(other than the Company) under Treasury Regulation Section 1.1502-6 (or any substantially similar provision of state, local or
non-U.S. Tax Law), or as a transferee or successor, or by contract, or otherwise. The Company has not been (A) a member of an Affiliated
group filing a consolidated federal income Tax Return or (B) included in any “consolidated”, “unitary”
or “combined” Tax Return provided for under the Laws of the United States, any state thereof, or any non-U.S. jurisdiction.

(x)              
The Company will not be required to include any item of income in, or exclude any item or deduction from, taxable income
for any Tax period or portion thereof ending after the Closing Date as a result of: (A) any change in a method of accounting under
Section 481 of the Code (or any comparable provision of state, local or foreign Tax Laws), or use of an improper method of accounting,
for a Tax period ending on or prior to the Closing Date; (B) an installment sale or open transaction occurring on or prior to the
Closing Date; (C) deferred revenue or any prepaid amount received on or before the Closing Date; (D) any closing agreement under
Section 7121 of the Code, or similar provision of state, local or foreign Law; or (E) any election under Section 108(i) of the
Code.

(xi)            
The Company is not a party to any contract, arrangement or plan that has resulted or could result, separately or in the
aggregate, in the payment of (A) any “excess parachute payment” within the meaning of Section 280G of the Code (or
any corresponding provision of state, local, or non-U.S. Tax Law) or (B) any amount that will not be fully deductible as a result
of Section 162(m) of the Code (or any corresponding provision of state, local, or non-U.S. Tax Law).

(xii)          
The Company is not a “United States real property holding corporation” within the meaning of Section 897(c)(2)
of the Code. The Company has not had a permanent establishment (within the meaning of an applicable Tax treaty) or otherwise had
an office or fixed place of business in a country other than the United States.

(xiii)        
None of the assets of the Company is (i) “tax-exempt use property” within the meaning of Section 168(h) of the
Code or (ii) directly or indirectly secures any debt the interest of which is exempt from Tax under Section 103(a) of the Code.

(xiv)        
The Company has not constituted a “distributing corporation” or a “controlled corporation” under
Section 355 (or any similar provision of applicable state, local or non-U.S. Law) in any distribution in the last two years or
pursuant to a plan or series of related transactions (within the meaning of Section 355(e) or similar Law) with any transaction
contemplated by this Agreement.

     33

      

    

(xv)          
The Company has not “participated” in or has any filing obligation with respect to a “reportable transaction”
within the meaning of Section 6707A(c)(1) and Treasury Regulation Section 1.6011-4(b) and all positions taken with respect to the
Company that could give rise to a “substantial understatement of income tax” within the meaning of Section 6662 of
the Code have been disclosed on the Tax Returns of the Company.

(b)              
The Company has not requested or is the subject of or bound by any private letter ruling, technical advice memorandum, closing
agreement or similar ruling, memorandum or agreement with any Governmental Authority with respect to Taxes, nor is any such request
outstanding. There is no outstanding power of attorney authorizing anyone to act on behalf of the Company in connection with any
Tax, Return or proceeding relating to any Tax.

Section 3.18       
Affiliate Transactions.

(a)               
Except as set forth in Section 3.18(a) of the Disclosure Schedules, neither the Company nor any of its Affiliates
or Immediate Family Members, and no manager, member, officer, director or employee of the Company nor any Affiliate of any such
Person is presently, or has been, in the past three (3) years, a party to any transaction or contract with the Company (other than
compensation for services as managers, officers, directors or employees of the Company, reimbursement for reasonable business expenses
or payment of dividends or distributions in the ordinary course consistent with past practice), including, without limitation,
any written or oral Contract (i) providing for the furnishing of services or assets by, (ii) providing for the rental of real or
personal property from, or (iii) otherwise requiring payments to, or on behalf of, any such Person or Affiliate thereof. Since
the Interim Balance Sheet Date, there has been no dividend, distribution or payment of any kind whatsoever by the Company to Seller
or any of their Affiliates.

(b)              
Except as set forth on Section 3.18(b) of the Disclosure Schedules, none of the or any of their Immediate Family
Members: (i) has any direct or indirect financial interest in any Person with whom the Company has consummated or entered into
any Material Contract; (ii) owns, directly or indirectly, in whole or in part, or has any other interest in, any tangible or intangible
property that is necessary for the conduct of the business of the Company; or (iii) has any contractual or financial relationship
or arrangement with, or otherwise receives or has the right to receive any payments from, any Person with whom the Company has
consummated or entered into any Material Contract.

Section 3.19       
Bank Accounts. Section 3.19 of the Disclosure Schedules sets forth a complete and
correct list showing all banks in which the Company maintains a bank account or safe deposit box (collectively, the “Bank
Accounts”), together with, as to each Bank Account, the account number, and the names of all signatories thereon.

Section 3.20       
Corruption and Anti-Terrorism.

(a)               
None of the Company or any of its Affiliates, officers, directors, employees, agents or any other person authorized to act
on behalf of the Company, has (i) used any of the funds of the Company for unlawful contributions, payments, gifts or entertainment,
or made any unlawful expenditures relating to political activity, to governmental officials or others, or 

     34

      

    

established or maintained
any unlawful or unrecorded funds, in each case, in violation of Section 30A of the Securities Exchange Act of 1934 (Foreign Corrupt
Practices Act of 1977 (15 USC §78dd-1)), or any other foreign, provincial, federal or state Laws or (ii) accepted or received
for or on behalf of the Company any unlawful contributions, payments, expenditures or gifts.

(b)              
The Company is and has been in compliance with all Laws relating to anti-money laundering or anti-terrorism, including the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, H.R.
3162, Public Law 107-56 (commonly known as the “Patriot Act”) and Executive Order Number 13224 on Terrorism Financing,
effective September 24, 2001 and regulations promulgated pursuant thereto (collectively with the Patriot Act and any other antiterrorism
Laws, “Anti-Terrorism Laws”). The Company is not a Person with whom Buyer is restricted from doing business under any
of the Anti-Terrorism Laws, including Persons named on the Office of Foreign Asset Control Specially Designated Nationals and Blocked
Persons List.

Section 3.21       
Material Customers and Material Suppliers.

(a)               
Section 3.21(b) of the Disclosure Schedules sets forth the names and dollar amounts of the ten (10) largest customers
(based on revenue) of the Company for the twelve (12) month period ended December 31, 2018. The Company has not received any written
notice, and does not otherwise have any Knowledge that any such customer intends to cancel, modify or otherwise change its relationship
with the Company in any material manner.

(b)              
Section 3.21(a) of the Disclosure Schedules sets forth the names and dollar amounts of each of the ten (10) largest
suppliers (based on expenditures) of the Company for the twelve (12) month period ended December 31, 2018. The Company has not
received any written notice, and does not otherwise have any Knowledge that any such supplier intends to cancel, modify or otherwise
change its relationship with the Company in any material manner.

Section 3.22       
Accounts Receivable. Each Account Receivable: (i) arose from bona fide transactions
in the ordinary course of the Company’s business and are payable on ordinary trade terms, (ii) are legal, valid and binding
obligations of the respective debtors enforceable in accordance with their terms except to the extent that enforcement may be limited
by applicable bankruptcy, insolvency or similar laws, (iii) are not subject to any valid set-off or counterclaim, and (iv) to the
Knowledge of the Company, it has the right to collect the accounts receivable in the ordinary course of the Business consistent
with past practices in the aggregate recorded amounts thereof.

Section 3.23       
Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s
or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or
on behalf of Seller and no brokerage, finder’s or other fee or commission in connection with the transactions contemplated
by this Agreement based upon arrangements made by or on behalf of Seller shall be paid by the Trust.

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES REGARDING Warrant holders

     35

      

    

Each Warrant Holder,
as to himself or herself and for no other Warrant Holders, represents and warrants to Buyer that the statements contained in this
ARTICLE IV are true, correct and complete as of the date hereof.

Section 4.01       
Capacity. Such Warrant Holder has requisite legal capacity to enter into this Agreement
and the other Transaction Documents to which such Warrant Holder is a Party. This Agreement and each other Transaction Document
to which such Warrant Holder is a Party have been duly executed and delivered by such Warrant Holder, and (assuming due authorization,
execution and delivery by the Company, Seller and Buyer) this Agreement and the other Transaction Documents to which such Warrant
Holder is a party constitute legal, valid and binding obligations of such Warrant Holder, enforceable against such Warrant Holder
in accordance with their terms, except as such enforceability may be limited by ERISA or bankruptcy, insolvency, reorganization,
moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity).

Section 4.02       
No Conflicts; Consents. The execution, delivery and performance by such Warrant Holder
of this Agreement and the other Transaction Documents to which such Warrant Holder is a party, and the consummation of the transactions
contemplated hereby and thereby, do not and will not (assuming the passage of time or the giving of notice or both): (a) result
in a material violation or breach of any provision of any Law or Governmental Order applicable to such Warrant Holder or any of
his or her assets; (b) result in the imposition or creation of a Lien upon or with respect to such Warrant Holder’s
Warrant, or (c) except as set forth in Section 4.02 of the Disclosure Schedules, require the
consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default under
or result in the acceleration of any supplier agreement, distributor agreement, note, bond, mortgage, indenture, deed of trust,
lease, agreement or contract to which such Warrant Holder is party or by which any of his or her properties or assets are bound.
No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required
by or with respect to such Warrant Holder in connection with the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby.

Section
4.03        Warrants.
Such Warrant Holder holds of record and owns beneficially the Warrants set forth on Section 4.03 of the Disclosure Schedules
listed opposite such Warrant Holder’s name, free and clear of any restrictions on transfer (other than any restrictions under
the Securities Act and state securities laws), Taxes, Liens, options, warrants, purchase rights, contracts, commitments, equities,
claims, and demands. Such Warrant Holder is not a party to any option, warrant, purchase right, or other contract or commitment
(other than this Agreement) that could require such Warrant Holder to sell, transfer, or otherwise dispose of any capital stock
of the Company. Such Warrant Holder is not a party to any voting trust, proxy, or other agreement or understanding with respect
to the voting of any capital stock of the Company.

Section 4.04       
Legal Proceedings. Except as set forth in Section 4.04 of the Disclosure Schedules,
there are no actions, suits, claims, investigations or other legal proceedings pending or to such Warrant Holder’s knowledge,
threatened against or by such Warrant Holder that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated
by this 

     36

      

    

Agreement or the other Transaction Documents to which such Warrant Holder is party and the consummation of the transactions
contemplated hereby or thereby.

ARTICLE
V

REPRESENTATIONS AND WARRANTIES REGARDING SELLER AND TRUSTEE

Trustee, not in
an individual or corporate capacity but solely as Trustee of the Trust represents and warrants to Buyer that the statements contained
in this ARTICLE V are true, correct and complete as of the date hereof.

Section 5.01       
Authorization. The Trustee is qualified to serve as Trustee, has been duly appointed as
Trustee of the ESOP and has all requisite power and authority, for itself and on behalf of the Trust, to execute, deliver and perform
the obligations of Seller under this Agreement and the other Transaction Documents to which Seller is a party. This Agreement and
the other Transaction Documents to which Seller is a party and all transactions contemplated hereby and thereby have been duly
and validly authorized and approved by all necessary actions on the part of Seller. This Agreement and the other Transaction Documents
to which Seller is a party have been duly executed and delivered by the Trustee, on behalf of the ESOP, and constitute the legal,
valid and binding obligation of the ESOP enforceable in accordance with their respective terms, subject to ERISA and bankruptcy,
insolvency, reorganization and other similar Laws affecting creditors’ rights generally and subject, as to enforceability,
to general equitable principles (regardless of whether enforcement is sought in a proceeding in equity or at law). 

Section 5.02       
No Conflicts; Consents. The execution, delivery and performance by the ESOP, Seller and
Trustee of this Agreement and the other Transaction Documents to which Seller is a party, and the consummation of the transactions
contemplated hereby and thereby, do not and will not (assuming the passage of time or the giving of notice or both): (a) result
in a violation or breach of any provision of the ESOP or the organizational documents of the ESOP; (b) result in a violation or
breach of any provision of any Law or Governmental Order applicable to the ESOP or any agreement to which the ESOP is a party;
(c) result in a violation or breach of any judgment, decree, ruling or court order applicable to the ESOP; (d) except as set forth
in Section 5.02 of the Disclosure Schedules, require the consent, notice or other action by any Person under, conflict with,
result in a violation or breach of, constitute a default under or result in the acceleration or termination of any right under
any agreement to which the ESOP is a party. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice
to, any Governmental Authority is required by or with respect to the ESOP or the Trust, in connection with the execution and delivery
of this Agreement or the Transaction Documents to which they are party and the consummation of the transactions contemplated hereby
or thereby.

Section 5.03       
Ownership. Except as set forth in Section 5.03 of the Disclosure Schedules, all
of the Shares are owned of record by Seller free and clear of all Liens. Immediately upon consummation of the transactions contemplated
by this Agreement, Buyer shall own all of the Shares, free and clear of all Liens.

Section 5.04       
Legal Proceedings. Except as set forth in Section 5.04 of the Disclosure Schedules,
there are no actions, suits, claims, investigations or other legal proceedings pending 

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or to Trustee’s knowledge (which shall
include such knowledge that Trustee would reasonably be expected to have in the normal course of exercising his/her/its duties
as Trustee), threatened against or by Seller or the Trustee that challenge or seek to prevent, enjoin or otherwise delay the transactions
contemplated by this Agreement or the other Transaction Documents to which they are party and the consummation of the transactions
contemplated hereby or thereby.

Section 5.05       
Investigation. The Trustee acknowledges that the Trustee and the Advisor, acting on behalf
of Seller, have had access to the business records and documents of the Company and have made such investigations and due diligence
of the Company as each such Person has requested. 

ARTICLE
VI

REPRESENTATIONS AND WARRANTIES REGARDING BUYER

Buyer represents
and warrants to Seller that, except as provided in a schedule to this Agreement, the statements contained in this ARTICLE VI
are true and correct as of the date hereof.

Section 6.01       
Organization and Authority of Buyer. Buyer is a corporation duly organized, validly existing
and in good standing under the Laws of the state of Delaware. Buyer has all necessary corporate power and authority to enter into
this Agreement and the other Transaction Documents to which it is a party, to carry out its obligations hereunder and thereunder
and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Buyer of this Agreement and the
other Transaction Documents to which it is a party, the performance by Buyer of its obligations hereunder and thereunder and the
consummation by Buyer of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate
action on the part of Buyer. This Agreement and the other Transaction Documents to which Buyer is a party have been duly executed
and delivered by Buyer, and assuming due authorization, execution and delivery by Seller, the Company and the Warrant Holders of
this Agreement and the other Transaction Documents to which Buyer is a party, constitute a legal, valid and binding obligation
of Buyer, enforceable against Buyer in accordance with their terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

Section 6.02       
No Conflicts; Consents. Except as set forth in Section 6.02 of the Disclosure Schedules,
the execution, delivery and performance by Buyer of this Agreement, and the consummation of the transactions contemplated hereby,
do not and will not: (a) result in a violation or breach of any provision of the certificate of incorporation and bylaws of Buyer;
(b) result in a violation or breach of any provision of any Law or Governmental Order applicable to Buyer; or (c) require the consent,
notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default under or result
in the acceleration of any agreement to which Buyer is a party, except in the cases of clauses (b) and (c), where the violation,
breach, conflict, default, acceleration or failure to give notice would not have a Material Adverse Effect on Buyer. No consent,
approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with

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respect to Buyer in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby, except for such consents, approvals, Permits, Governmental Orders, declarations, filings or notices which would not have
a Material Adverse Effect on Buyer.

Section 6.03       
Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s
or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or
on behalf of Buyer and no brokerage, finder’s or other fee or commission in connection with the transactions contemplated
by this Agreement based upon arrangements made by or on behalf of Buyer is payable by Buyer.

Section 6.04       
Legal Proceedings. There are no actions, suits, claims, investigations or other legal
proceedings pending or, to Buyer’s knowledge, threatened against Buyer or any Affiliate of Buyer that challenge or seek to
prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.

Section 6.05       
Buyer Common Stock. The ESOP Equity Consideration and the Warrant Holders Equity Consideration
has been duly authorized, and upon consummation of the transactions contemplated by this Agreement, will be validly issued, fully
paid and nonassessable. 

Section 6.06       
SEC Documents. Buyer has filed all required SEC Documents required to be filed by it with
the SEC since July 1, 2017. As of their respective dates, the SEC Documents (a) were prepared in accordance and complied in
all material respects with the requirements of the Securities Laws applicable to such SEC Documents, and (b) did not at the
time they were filed (or if amended or superseded by a filing prior to the date of this Agreement then on the date of such filing)
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading. None of the
Company’s subsidiaries is required to file any forms, reports or other documents with the SEC. There have been no material
adverse developments in the business of Buyer and its subsidiaries since the respective dates of such SEC Documents that are required
to be disclosed pursuant to the Exchange Act that have not been disclosed. Any audited or unaudited financial statements and any
notes thereto or schedules included in the SEC Documents (i) complied as to form in all material respects with applicable accounting
requirements and with the published rules and regulations of the SEC with respect thereto, (ii) were prepared in accordance with
GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case
of unaudited statements, as permitted by applicable Securities Laws) and (iii) fairly present (subject in the case of unaudited
statements to normal, recurring and year-end audit adjustments) in all material respects the consolidated financial position of
Buyer and its subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods
then ended.

Section 6.07       
Investment Intention. Buyer is purchasing the Shares for its own account with the present
intention of holding such securities for investment purposes and not with a view to or for sale in connection with any public distribution
of such securities in 

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violation of any applicable Laws, including any Securities Laws. Buyer is an “accredited investor”
as defined in Regulation D promulgated under the Securities Act.

Section 6.08       
Independent Investigation. Buyer has conducted its own independent investigation, review
and analysis of the business, results of operations, prospects, condition (financial or otherwise) and assets of the Company, and
acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books and records, and other
documents and data of the Company for such purpose. Buyer acknowledges and agrees that: (a) in making its decision to enter into
this Agreement and to consummate the transactions contemplated hereby, Buyer has relied solely upon its own investigation and the
express representations and warranties of the Company set forth in Article III (including the related portions of the Disclosure
Schedules) and Seller and the Trustee set forth in Article IV (including the related portions of the Disclosure Schedules);
and (b) none of the Company, Seller, the Trustee or any other Person makes or has made any representation or warranty as to the
Company, Seller or the Trustee or this Agreement, except as expressly set forth in Article III or Article IV (including
the related portions of the Disclosure Schedules).

ARTICLE
VII

COVENANTS

Section 7.01       
Employees; Benefit Plans.

(a)               
With respect to any employee benefit plan maintained by Buyer or its Affiliates (collectively, “Buyer Benefit Plans”)
in which any Employee who remains employed immediately after the Closing (“Company Continuing Employee”) will
participate effective as of or after the Closing, Buyer shall recognize all service of the Company Continuing Employees with the
Company, as the case may be, as if such service were with Buyer and its Affiliates, for vesting and eligibility purposes in any
Buyer Benefit Plan in which such Company Continuing Employees may be eligible to participate after the Closing Date; provided,
however, such service shall not be recognized to the extent that (x) such recognition would result in a duplication of benefits,
(y) such service was not recognized under the corresponding Benefit Plan, or (z) such recognition applies to any Buyer Benefit
Plan that is a defined benefit plan (qualified or otherwise).

(b)              
This Section 7.01 shall be binding upon and inure solely to the benefit of each of the Parties to this Agreement,
and nothing in this Section 7.01, express or implied, shall confer upon any other Person any rights or remedies of any nature
whatsoever under or by reason of this Section 7.01. Nothing contained herein, express or implied, shall be construed to
establish, amend or modify any benefit plan, program, agreement or arrangement. The Parties hereto acknowledge and agree that the
terms set forth in this Section 7.01 shall not create any right in any Employee or any other Person to any continued employment
with the Company, Buyer or any of their respective Affiliates or compensation or benefits of any nature or kind whatsoever.

Section 7.02       
Public Announcements. Unless otherwise required by applicable Law or stock exchange requirements
(based upon the reasonable advice of counsel), no Party to this Agreement shall make any public announcements in respect of this
Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the 

     40

      

    

prior written consent
of the other party (which consent shall not be unreasonably withheld or delayed), and the Parties shall cooperate as to the timing
and contents of any such announcement.

Section 7.03       
Further Assurances. Following the Closing, each of the Parties hereto shall, and shall
cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances, and
take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions
contemplated by this Agreement and the other Transaction Documents.

Section 7.04       
Transfer Taxes; Tax Refunds. 

(a)               
All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties
and interest) incurred in connection with this Agreement (including any real property transfer Tax and any other similar Tax) shall
be borne by Seller. Seller shall, at its own expense, timely file any Tax Return or other document with respect to such Taxes or
fees (and Buyer shall cooperate with respect thereto as necessary).

(b)              
All refunds of Taxes relating to the Company with respect to any Pre-Closing Period will be for the account of Seller. To
the extent the Company receives any such refund after the Closing Date, Buyer shall, or shall cause the Company to, pay the amount
of such refund to Seller within five (5) Business Days of receipt.

Section 7.05       
338(h)(10) Election.

(a)               
Trustee, on behalf of Seller and Buyer shall join in timely making (or causing to be timely made) the Section 338(h)(10)
Election. Buyer shall prepare and file, or cause to be prepared and filed, all forms or documents as are required by applicable
Law for an effective 338(h)(10) Election, including, but not limited to IRS Form 8023, which forms and documents shall be prepared
substantially in compliance with the Allocation Schedule as defined below and in accordance with the rules set forth therein (the
“338(h)(10) Election Forms”). In this regard, Seller will provide to Buyer at or prior to the Closing two (2)
originally executed IRS Forms 8023 (together with any schedules or attachments thereto) consenting to the making of the 338(h)(10)
Election, to be held in escrow by Buyer’s counsel pending the Closing. Trustee, on behalf of Seller shall at all times cooperate
with Buyer in the making of the 338(h)(10) Election and executing such 338(h)(10) Election Forms.

(b)              
The Company and Buyer shall file all Tax Returns in a manner consistent with the 338(h)(10) Election and will not take any
position contrary thereto unless required to do so by applicable Laws.

(c)               
Seller shall not revoke the Company’s election to be taxed as, or take or allow any action (other than the transactions
contemplated by this Agreement) that would result in the termination of the Company’s status as, a validly existing S corporation
with the meanings of Code Section 1361, the Treasury Regulations promulgated thereunder or any analogous or similar provision of
state or local Law.

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Section 7.06       
Purchase Price Allocation. Buyer and the Company shall file all Income Tax Returns for
their respective tax years in which the Closing occurs in a manner that reflects an allocation of the Purchase Price and other
items of consideration under the Code and Treasury Regulations promulgated thereunder in accordance with the schedule prepared
by Buyer (the “Allocation Schedule”). Buyer and the Company agree (i) that the Allocation Schedule shall be
prepared in accordance with Code Sections 338 and 1060, as applicable, and the Treasury Regulations promulgated thereunder, (ii)
to prepare and timely file all Tax Returns, including, but not limited to Internal Revenue Service Form Forms 8594 and, if applicable,
8883, (and all supplements thereto) in a manner consistent with the Allocation Schedule, and (iii) in the course of any examination,
audit or other proceeding with respect to any Tax Return or Tax, will take no position, and cause its Affiliates to take no position,
inconsistent with the Allocation Schedule for Tax purposes, unless required by applicable Law. The Parties will revise the Allocation
Schedule in accordance with the principles set forth herein to the extent necessary to reflect any post-Closing payment or adjustment
made pursuant to or in connection with this Agreement. The Parties will not otherwise revise the Allocation Schedule for Tax purposes,
unless required by applicable Law.

Section 7.07       
Amendments to Plans; Post-Closing Administration.

(a)               
The Company shall adopt board resolutions and Benefit Plan amendments, to the extent necessary, effective as of and subject
to the consummation of the Closing, providing for the termination of any Benefit Plan (other than the ESOP) that Buyer directs
the Company to so terminate prior to the Closing. The form and substance of any resolutions, plan amendments, documents or notices
required to effect any such termination shall be subject to review and approval of Buyer in advance of execution and performance.
The termination and payout of any such plan that is subject to Section 409A of the Code shall be consummated consistent with the
rules under Section 409A of the Code.

(b)              
The Company shall adopt board resolutions and Plan amendments effective as of or prior to the Closing, subject to the consummation
of the Closing, providing for (i) freeze and suspension of eligibility, entry and further benefit accruals under the ESOP effective
as of the Closing, such that no further employees will become eligible under the ESOP and no further contributions shall be made
to the ESOP, in each case after the Closing; (ii) 100% vesting of all participants and all eligible beneficiaries in all benefits
under the ESOP; and (iii) such other amendments as Buyer may direct and as agreed to by the Company, such agreement not to be unreasonably
withheld or delayed. The form and substance of any resolutions, plan amendments, documents or notices required to effect any of
the foregoing shall be subject to review and approval of Buyer in advance of execution and performance. All costs and expenses
of the foregoing with respect to actions to be taken shall be a Transaction Expense of the Company.

(c)               
The Company then shall adopt board resolutions and a Plan amendment, no later than six (6) months after the Closing, providing
for (i) termination of the ESOP as of the six (6) month anniversary of the Closing, (ii) submission to the Internal Revenue Service
of an application for an IRS determination letter that the ESOP is qualified as of the termination of the ESOP, as soon as administratively
practicable thereafter, and (iii) distribution of ESOP accounts consistent with the terms of the Plan as follows: (i) one-third
(1/3) of each ESOP participant’s account in the form of one-third (1/3) of the cash and cash equivalents and one-third (1/3)
of the 

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number of shares of Buyer Common Stock then held in the ESOP account, as soon as administratively practicable after the
six (6)-month anniversary of the Closing; and (ii) the remainder of each ESOP participant’s account, as soon as administratively
practicable after receipt from the Internal Revenue Service of a favorable IRS determination letter on the tax-qualified status
of the ESOP; provided, however, if a favorable IRS determination letter on the tax-qualified status of the ESOP is not received
by the nine (9)-month anniversary of the Closing, the Company shall cause the distribution of one-half (1/2) of each ESOP participant’s
remaining ESOP account in the form of one-half (1/2) of the cash and cash equivalents and one-half (1/2) of the number of shares
of Buyer Common Stock then held in the ESOP account, as soon as administratively practicable after the nine (9)-month anniversary
of the Closing, and, if a favorable IRS determination letter on the tax-qualified status of the ESOP is not received by the twelve
(12)-month anniversary of the Closing, the Company shall cause the distribution of the remaining shares of Buyer Common Stock then
held in the ESOP account, as soon as administratively practicable after the twelve (12)-month anniversary of the Closing, with
the remainder of the ESOP participant’s ESOP account to be held and distributed as soon as administratively practicable after
receipt from the Internal Revenue Service of a favorable IRS determination letter on the tax-qualified status of the ESOP. After
distribution of the shares of Buyer Common Stock, the ESOP participants or the accounts to which the shares of the ESOP participant’s
Buyer Common Stock were distributed may elect to sell any shares of Buyer Common Stock received to the extent permitted by law
and any legal lock-up restrictions and securities requirements. Nothing herein however shall prohibit the ESOP from adjusting ESOP
accounts or making such corrections, or recouping or requiring the repayment of any amounts previously distributed from the ESOP,
as required to maintain the tax-qualified status of the ESOP and/or obtain from the Internal Revenue Service a favorable IRS determination
letter on the tax-qualified status of the ESOP at the time of termination. All costs and expenses of the foregoing with respect
to the actions to be taken shall be at the sole cost and expense of Buyer (and not considered a Transaction Expense of the Company).
Buyer agrees to cause the Company to make, in a timely manner, all amendments to the ESOP as may be reasonably required by the
IRS as a condition of a favorable determination letter in connection with the IRS determination letter submission on the tax-qualified
status of the ESOP as of termination. Buyer shall cause the Company to keep the Trustee apprised of the status of the IRS determination
letter submission and to provide notice to the Trustee within ten (10) Business Days of receipt any communications with, and inquiries
or requests for information from, the IRS in connection with the matters described in this section or otherwise with respect to
the ESOP, the Department of Labor, any participant or any other person, including a copy of the IRS favorable determination letter.

(d)              
The Company shall take such actions and adopt such amendments as may reasonably be necessary to maintain the tax-qualified
status of the ESOP and the tax exempt status of the related trust under the Code until the termination of the ESOP, distribution
of plan assets and related administration are completed.

(e)               
Should First Bankers Trust Services, Inc. cease to serve as the trustee of the ESOP, Buyer agrees to cause the Company to
appoint as the successor trustee an institutional fiduciary to serve in the capacity as trustee of the ESOP, to the extent an institutional
fiduciary is reasonably available and willing to serve, and to cause the Company to promptly notify First 

     43

      

    

Bankers Trust Services,
Inc. of any proposed termination of First Bankers Trust Services, Inc. as trustee of the ESOP.

(f)               
Prior to the Closing, the Company will make a contribution to the ESOP (the “Company’s 2018 Contribution”)
for the plan year ending December 31, 2018 in an amount equal to the maximum amount allowable under Code Section 404 to be used
to pay accrued interest and principal on the outstanding loan balance under that certain ESOP Loan Agreement, dated as of July
16, 2009, by and between the Trust and the Company (the “ESOP Loan”). Shares released from the ESOP’s
unallocated company stock suspense account by reason of the Company’s 2018 Contribution will be allocated to the accounts
of eligible participants in accordance with the terms of the Plan. Effective as of the Closing, the Company and the ESOP will settle
the ESOP Loan as follows: (i) the ESOP will return shares held in its unallocated company stock suspense account having a fair
market value equal to the outstanding principal due on the ESOP Loan (after the Company’s 2018 Contribution and payment of
all accrued interest), and (ii) the remaining shares, if any, held in the ESOP’s unallocated company stock suspense account
will be allocated to participants and beneficiaries as of the loan settlement date proportionately based on their Company stock
account balances under the ESOP at such time (determined after the allocation of shares triggered by the Company’s 2018 Contribution),
and (iii) there will be no ESOP Loan outstanding as of the Closing.

Section 7.08       
Conduct of Business. Except as expressly contemplated by this Agreement, as set forth
in Section 7.08 of the Disclosure Schedules, or as Buyer may otherwise consent in writing, at all times from the date of
this Agreement until the earlier to occur of the Closing or the valid termination of this Agreement in accordance with the terms
hereof, the Company shall (the “Pre-Closing Period”):

(a)               
operate the Company’s Business in the usual, regular, and ordinary course consistent with past practice;

(b)              
take all reasonable steps to preserve and protect the assets of the Company in good working order and condition, ordinary
wear and tear excepted;

(c)               
comply with all requirements of Law, Permits, and material contractual obligations applicable to the operation of the Company’s
business;

(d)              
use commercially reasonable efforts to preserve intact the Business of the Company, keep available the services of the Company’s
officers, employees, and agents and maintain the Company’s current relations and good will with suppliers, customers, licensors,
landlords, creditors, employees, agents, and others having business relationships with the Company, including by promptly paying
all amounts owing to such Persons as and when such amounts are due (other than amounts being disputed in good faith);

(e)               
continue in full force and effect all insurance coverage pertaining to the business of the Company or its assets that are
in effect as of the date of this Agreement or obtain substantially equivalent policies;

     44

      

    

(f)               
confer with Buyer prior to implementing business operational decisions that materially impact the business of the Company,
and report periodically to Buyer concerning the status of the business of the Company; and

(g)              
maintain the books and records of the Company in the ordinary course of business consistent with past practice.

Section 7.09       
Restrictions on Business. Except as expressly contemplated by this Agreement, Sections
7.08 or 7.09 of the Disclosure Schedules, or as Buyer may otherwise consent in writing, such consent not to be unreasonably
withheld, at all times during the Pre-Closing Period, the Company shall not:

(a)               
amend any of its Organizational Documents;

(b)              
authorize for issuance, issue, sell, deliver or agree or commit to issue, sell or deliver (whether through the issuance
or granting of options, warrants, commitments, subscriptions, rights to purchase or otherwise) any shares of capital stock, or
any other securities or other ownership interests of the Company;

(c)               
split, combine or reclassify any shares of capital stock or other ownership interests, or declare, set aside or pay any
dividend or other distribution to any member, or otherwise in respect of its capital stock or other ownership interests or redeem
or otherwise acquire any of its securities or other ownership interests;

(d)              
(A)incur or assume any Indebtedness, other than (i) trade payables incurred in the ordinary course of the business of
the Company consistent with past practice (but in any event not any Indebtedness to Seller or any of their Affiliates) and (ii)
the Warrant Holders Notes; (B) assume, guarantee, endorse (except for checks or other negotiable instruments in the ordinary course
of business) or otherwise become liable or responsible (whether directly, contingently or otherwise) for any obligations of any
other Person; or (C) make any loans, advances or capital contributions to, or investments in, any other Person;

(e)               
adopt, modify or terminate any (i) employment, severance, retention, change in control or other compensation or benefit
agreement, plan or arrangement with any current or former employees, officers, directors, independent contractors or consultants
of the Company, or (ii) other than as required by Law, any Benefit Plan or any plan or arrangement that would constitute a Benefit
Plan if in existence on the date hereof;

(f)               
except in the ordinary course of business consistent with past practices of the Company and not in excess of $35,000 (individually
or cumulative), acquire, sell, lease, transfer or dispose of any properties or assets of the Company or enter into any other commitment
or transaction that is material to the Company;

(g)              
modify, other than in an immaterial manner, any policy or procedure with respect to the collection of receivables;

     45

      

    

(h)              
pay, discharge or satisfy before it is due any material claim or liability of the Company or fail to pay any such item in
a timely manner, in each case except in accordance with the Company’s prior practices;

(i)                
cancel any debts or waive any claims or rights of material value;

(j)                
except to the extent required by Law, change any accounting principle or method or make any election for purposes of foreign,
federal, state or local income Taxes;

(k)              
take or suffer any action that would result in (A) the creation, or consent to the imposition, of any Lien on any of the
properties or assets of the Company or (B) the cancellation, termination, lapse or non-renewal of any insurance policy (unless
such policy is replaced with comparable insurance);

(l)                
except in the ordinary course of business consistent with past practices of the Company and not in excess of $35,000 (individually
or cumulative), make or incur any expenditure, lease or commitment for additions to property or equipment or other tangible assets;

(m)            
enter into any contract restricting in any material respect the operation of the Business;

(n)              
make or change any material Tax election, adopt or change any Tax accounting method, enter into any closing agreement, settle
or compromise any Tax claim or assessment, file any amended Tax Return, any material Tax Return, or any claim for Tax refund, or
extend or waive the limitation period applicable to any Tax claim or assessment, in each case to the extent that it would affect
the assets or business of the Company after the Closing;

(o)              
(i) grant any bonuses, whether monetary or otherwise, or increase wages, salary, severance, pension or other compensation
or benefits in respect of any current or former employees, officers, directors, independent contractors or consultants of the Company
or their spouses, dependents or beneficiaries except (1) in the ordinary course of business consistent with past practices of the
Companies and so long as not in excess of $35,000 (individually or cumulative), (2) as required by Law or (3) as provided for in
any existing written agreements as of the date hereof; (ii) change the terms of employment or service for any such person; or (iii)
take any action to increase the amount of or accelerate the vesting, funding or payment of any compensation or benefits to any
such person;

(p)              
grant any severance, change-in-control, or similar pay benefits (in cash or otherwise) to any current or former employee,
officer, director, independent contractor or consultant of the Company or their spouses, dependents, or beneficiaries;

(q)              
establish, amend or terminate any Benefit Plan, except as required by applicable Law or as specifically provided in this
Agreement;

(r)                
adopt a plan of complete or partial liquidation, dissolution, restructuring, recapitalization, or other reorganization;

     46

      

    

(s)               
except in the ordinary course of business consistent with past practice, take or omit to take any action that has or would
reasonably be expected to have the effect of accelerating sales to customers or revenues of the business of the Company to pre-Closing
periods that would otherwise be expected to take place or be incurred in post-Closing periods;

(t)                
fail to make any capital expenditures or commitment therefore as set forth in Section 7.09(s) of the Disclosure Schedules
or make any capital expenditures or commitments not otherwise set forth in Section 7.09(s) of the Disclosure Schedules;

(u)              
commence any actions, suits, claims, investigations or other legal proceedings relating to the Company other than (i) for
the routine collection of amounts owed, or (ii) in such cases where the failure to commence litigation could have a Material
Adverse Effect, provided that the Company shall consult with Buyer prior to filing such litigation;

(v)              
except in the ordinary course of business consistent with past practices of the Company and so long as not in excess of
$35,000 (individually or cumulative), enter into any contract of any kind with any third party, which contract continues after
the Closing Date and cannot be terminated by the Company on not more than 30 days’ notice without any liability on the part
of the Company;

(w)            
except in the ordinary course of business consistent with past practice of the Company, amend, waive, surrender or terminate
or agree to the amendment, waiver, surrender or termination of any contract or any Permit;

(x)              
except in the ordinary course of Business consistent with past practice, exercise any right or option under or extend or
renew any contract;

(y)              
enter into or engage in any transaction with the officer, directors, or employee of the Company, any of any of their family
members or any Affiliate thereof other than any transaction that is described on Section 3.18(a) and Section 3.18(b) of
the Disclosure Schedules or is a Facility Lease;

(z)               
except in the ordinary course of business consistent with past practices of the Company and so long as not in excess of
$35,000 (individually or cumulative), sell, lease, license, transfer, or otherwise dispose of any assets of the Company;

(aa)           
except in the ordinary course of business consistent with past practices of the Company, sell any inventory of the Company;
or

(bb)          
enter into any contract to do, or take, or agree in writing or otherwise to take or consent to, any of the foregoing actions.

Section 7.10       
Access, Information and Nondisclosure. During the Pre-Closing Period, during normal business
hours, Company shall, upon reasonable advanced notice, afford to Buyer and its representatives (which shall include Buyer’s
Affiliates, lenders, counsel, accountants, and other representatives), reasonable access to the offices, properties, books, contracts,
commitments, records, vendor information, and customer information of Company, insofar as the same relate to the Company’s
business and does not unreasonably interfere with the conduct 

     47

      

    

of business of the Company, and shall make available to such persons
such information (including financial and operating data) concerning the Company as they reasonably may request. Requests for such
information shall be discreetly coordinated with Company’s designated representatives, and Company shall use its commercially
reasonable efforts to assist Buyer and its representatives in their examination; the Company shall not be obligated to respond
to any requests herein that are disruptive in any material respect to the Company’s business (for the avoidance of any doubt,
requests included on the due diligence checklist provided to the Company prior to the execution of this Agreement shall not be
considered disruptive). The Parties acknowledge that Company and Buyer have entered into a Mutual Nondisclosure Agreement, dated
September 11, 2015 (the “Nondisclosure Agreement”), the terms of which are hereby incorporated by this reference,
and Buyer confirms that Buyer will comply with their respective obligations thereunder and Buyer shall cause its representatives
to comply with such obligations as if such representatives were a party to such Nondisclosure Agreement.

Section 7.11       
Regulatory and Other Approvals. Each of Buyer, Seller and the Company shall take all commercially
reasonable steps necessary or desirable, and proceed diligently and in good faith and use all commercially reasonable efforts,
as promptly as practicable to: (i) obtain all consents and approvals of, make all filings with and give all notices to each Governmental
Authority or any other Person that are required to be obtained, made or given by Buyer, Seller or the Company, as the case may
be, including but not limited to all of the consents and approvals listed in Sections 3.02, 4.02, 5.02 and 6.02 of the Disclosure
Schedules in order to consummate the transactions contemplated by this Agreement and the Transaction Documents, including but not
limited to in compliance with all applicable Laws and all contracts, and (ii) satisfy each other condition to the obligations of
the Parties contained in this Agreement. 

Section 7.12       
Investigations. During the Pre-Closing Period, the Company shall, and shall cause all
of the officers, directors, employees, agents, accountants and counsel or other agents and Representatives of the Company to, (i)
promptly afford the Representatives of Buyer, during normal business hours, access to (A) the offices, books, Contracts and records
of the Company and any records concerning the Company maintained and accumulated by it and its Representatives, and (B) those Representatives
of the Company who have knowledge relating to the Business, and (ii) promptly furnish to Buyer and Representatives of Buyer such
additional financial and operating data and other information regarding the Company or the Business (including, without limitation,
any contracts or Permits in effect as of the date hereof and any contracts or Permits being negotiated or entered into between
the date hereof and the Closing Date), properties and goodwill as Buyer from time to time reasonably request. All such investigations
by Buyer and its Representatives shall be performed at such times and locations as are reasonably mutually agreed to by the Parties
and shall be performed upon reasonable prior written notice to the Company and in a manner that shall not be disruptive to the
operations of the Business. 

Section 7.13       
No Shop. During the Pre-Closing Period, Seller and the Company shall not, and Company
shall not permit any of their respective directors, officers, brokers, employees or Affiliates (or authorize or permit any investment
banker, financial advisor, attorney, accountant or other Person retained by or acting for or on behalf of Seller, the Company or
any such Affiliate) to, take, directly or indirectly, any action to initiate, assist, solicit, receive, 

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participate, negotiate,
encourage (including, without limitation, by way of furnishing non-public information) or accept any offer or inquiry from any
Person (a) to engage in any Business Combination with Seller or the Company, (b) to reach any agreement or understanding (whether
or not such agreement or understanding is absolute, revocable, contingent or conditional) for, or to engage in any discussions
or negotiations with respect to, or otherwise attempt to consummate, any Business Combination with Seller or the Company or (c)
to furnish or cause to be furnished any information with respect to the Company to any Person (other than as contemplated by Section
7.10) which Seller, the Company or any such Affiliate knows or has reason to believe is in the process of considering any Business
Combination with regard to the Company. Seller and the Company shall immediately terminate (in writing, with a copy to Buyer) any
and all discussions or negotiations of any type described in the first sentence of this Section 7.13. If, during the Pre-Closing
Period, Seller or the Company receives or becomes aware that any of Seller, the Company or any Affiliate thereof (or any such Person
acting for or on their behalf) has received from any Person (other than Buyer) any offer, inquiry or informational request referred
to in the first sentence of this Section 7.13, the Company shall promptly advise such Person, by written notice, of the
terms of this Section 7.13 and shall promptly, orally and in writing, advise Buyer of such offer, inquiry or request and
deliver a copy of such notice to Buyer. The restrictions on the activities provided in this Section 7.13 shall terminate
upon any termination of this Agreement. 

Section 7.14       
Release of Liens. At the Closing, the Company shall cause all Liens on any Contract to
which the Company is a party or on the assets of the Company to be released.

Section 7.15       
Business Relationships. Until the Closing, the Company shall cooperate with the reasonable
requests of Buyer in Buyer’s efforts to continue and maintain for the benefit of Buyer and the Company those business relationships
of the Business existing prior to the Closing, including relationships with customers, suppliers and others.

Section 7.16       
Financing. Buyer shall use its commercially reasonable efforts to obtain debt to fund
the transactions contemplated hereby and other transactions expected to be consummated on the Closing Date. Upon
request of Buyer, the Company shall provide reasonable cooperation and assistance to Buyer in connection with any debt financing
contemplated by Buyer for the funding of the transactions contemplated by this Agreement.

Section 7.17       
Termination. This Agreement may be terminated:

(a)               
by the mutual consent of Buyer and Seller;

(b)              
by Buyer if any condition in Section 8.05 has not been satisfied or if the required items therein have not been delivered
as of the Closing Date or if satisfaction of such a condition or delivery of an item by such date is or becomes impossible (in
either case, other than as a result of a breach or default by Buyer in the performance of its obligations hereunder) and Buyer
has not waived such condition in writing at or prior to the Closing Date;

(c)               
by Trustee acting on behalf of Seller, if any condition in Section 8.03 or the condition in Section 8.04 has
not been satisfied or if the required items therein have not been delivered as of the Closing Date or if satisfaction of such a
condition or delivery of an item by 

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such date is or becomes impossible (in either case other than as a result of a breach or default
by any of the Company or Seller in the performance of their obligations hereunder) and Trustee acting on behalf of Seller has not
waived such condition in writing at or prior to the Closing Date;

(d)              
by any Party (other than a Party that is in material default of its obligations under this Agreement) if the Closing has
not occurred on or before February 28, 2018; or

(e)               
by any Party if the other Party materially breaches any of the covenants or agreements in this ARTICLE VII or elsewhere
in the Agreement provided that such breach is not capable of being cured or has not been cured within thirty (30) days after the
giving of notice thereof by the nonbreaching Party.

Section 7.18       
Effect of Termination.

If this Agreement
is terminated, all obligations of the Parties under this Agreement will terminate; provided, however, that if this Agreement is
terminated because of fraud or an uncured willful or intentional breach of this Agreement by the non-terminating party, or because
one or more of the conditions to the terminating party’s obligations to close is not satisfied as a result of the non-terminating
party’s uncured willful or intentional breach of its obligations under this Agreement, the terminating party’s right
to pursue all legal remedies will survive such termination unimpaired.

Section 7.19       
Sale of Buyer Common Stock. Each of Seller and the Company acknowledge and agree that
the shares of Buyer Common Stock issuable to Seller pursuant to Section 2.02(a) shall constitute “restricted securities”
within the meaning of Rule 144 of the Securities Act and will be issued in a private placement transaction in reliance upon the
exemption from the registration and prospectus delivery requirements of Section 5 of the Securities Act afforded by Section 4(a)(2)
of the Securities Act and Regulation D promulgated thereunder. The certificates evidencing the shares of Buyer Common Stock to
be issued to Seller pursuant to Section 2.02(a) shall bear appropriate legends to identify such privately placed shares as being
“restricted securities” under the Securities Act to comply with state and federal securities laws and, if applicable,
to notice the restrictions on transfer of such shares. For so long as the ESOP is a holder of Buyer Common Stock, Buyer agrees
to use commercially reasonable efforts to timely (or within the periods permitted under Rule 12b-25 of the Exchange Act) file with
the SEC all reports required to be so filed under the Exchange Act, and the Buyer will not terminate its status as an issuer required
to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would permit such termination.

Section 7.20       
Warrants. No later than one (1) Business day following
the date hereof, the Company shall deliver to the Warrant Holders written notice (the “Sale Notice”) of the
proposed Stock Purchase. Within ten (10) Business Days of the Closing Date, each Warrant Holder shall, in accordance with Section
2(f) of each Warrant, put such Warrant Holder’s Warrant to the Company by delivering to the Company written notice (the “Put
Notice”) of such Warrant Holder’s election to put such Warrant Holder’s warrant to the Company. Upon receipt
of the Put Notice, the Company shall pay the put price for each Warrant by delivering to each Warrant Holder a promissory note
pursuant to Section 2(f)(ii) of each Warrant. 

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Section 7.21       
2018 Audited Financial Statements. The Company will prepare, or cause to be prepared, at its expense audited consolidated
financial statements consisting of the consolidated balance sheet of the Company as at December 31, 2018 and the related consolidated
statements of income, stockholders’ equity and cash flows for the year then ended (the “2018 Audited Financial Statements”),
and such 2018 Audited Financial Statements will be prepared in accordance with the Accounting Principles applied on a consistent
basis throughout the period involved and will fairly present in all material respects the financial condition of the Company as
of the date they were prepared and the results of the operations of the Company for the period indicated. The cost and expense
of the Company’s outside auditor in preparing the 2018 Audited Financial Statements shall be a Transaction Expense if incurred
prior to the Closing or deducted from the Escrow if incurred after the Closing.

ARTICLE
VIII

CLOSING CONDITIONS AND DELIVERABLES

Section 8.01       
Company Deliveries. At or prior to the Closing, Company shall deliver, or cause to be
delivered to Buyer, the following (which shall be in addition to the deliveries required to be delivered pursuant to ARTICLE
II):

(a)               
A certificate of the Secretary or an Assistant Secretary (or equivalent officer) of the Company certifying that attached
thereto are (i) the certificate of incorporation for the Company, certified by the Secretary of State of the Commonwealth of Pennsylvania;
(ii) the bylaws of the Company; and (iii) true and complete copies of all resolutions adopted by the board of directors of the
Company authorizing the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation
of the transactions contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the
resolutions adopted in connection with the transactions contemplated hereby;

(b)              
A certificate of the Secretary or an Assistant Secretary (or equivalent officer) of the Company certifying the names and
signatures of the officers of the Company authorized to sign this Agreement and the other documents to be delivered hereunder;

(c)               
Good standing certificates of the Company issued by the Secretary of State of the States of Pennsylvania, Maryland, Delaware,
New Jersey, Virginia, and West Virginia;

(d)              
Each of the other Transaction Documents to which Company, Warrant Holders or Warrant Holder Representative is a party;

(e)               
All consents, authorizations, orders and approvals from all third parties referred to on Sections 3.04, 4.02 and 5.02
of the Disclosure Schedules in form and substance reasonably satisfactory to Buyer, and no such consent, authorization, order and
approval shall have been revoked;

(f)               
Written resignations, effective as of the Closing Date, of the officers and directors of the Company set forth on Section
8.01(g) of the Disclosure Schedules;

(g)              
Evidence in form and substance reasonably satisfactory to Buyer that all Benefit Plans, including but not those limited
to those set forth in Section 7.10, have been terminated as 

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of the Closing Date and/or amended and all other related actions have
been taken, as requested by Buyer;

(h)              
Payoff letters (with wire instructions) with respect to the termination of all documents and agreements evidencing Indebtedness
and signed copies of Form UCC 3s or other applicable form releasing or authorizing the release of all Liens with respect thereto;

(i)                
Payoff letters (with wire instructions) with respect to all Transaction Expenses, including payments of any transaction
bonuses, change in control payments or phantom equity awards, with corresponding executed written releases from the counterparties
thereto with respect to full payment thereof by the Company;

(j)                
A certificate, dated the Closing Date and signed by the President and Chief Executive Officer of the Company, and the Warrant
Holder Representative, certifying as to the matters set forth in Sections 8.05(a), (b) and (c).

(k)              
The Stockholders Agreement, duly signed by each of the Key Employees, and Warrant Holders;

(l)                
The Non-Competition Agreements, duly signed by each of the Key Employees, and Warrant Holders;

(m)            
The Facility Leases, duly signed by the lessor and the termination of the Existing Leases, duly signed by the lessor thereunder;

(n)              
Evidence of the backlog of the Company as of the Closing Date, to be delivered one (1) business day prior to the Closing;
and

(o)              
Evidence of the satisfactory resolution, in the sole discretion of Buyer, of any and all pending
litigation between the Company and any of its officers, directors, stockholders, or any of their respective Affiliates.

Section 8.02       
Trustee Deliveries. At or prior to the Closing, Trustee, on behalf of Seller shall deliver,
or cause to be delivered, to Buyer, the following:

(a)               
Stock certificates evidencing the Shares (reduced by that number of Shares applied in repayment of the ESOP Loan in Section
7.07(f)), which shall constitute all of the then-issued and outstanding capital stock of the Company, free and clear of Liens,
duly endorsed in blank or accompanied by stock powers or other instruments of transfer duly executed in blank;

(b)              
A copy of the Fairness Opinion, dated as of the Closing Date, that (i) the consideration to be received by the ESOP hereunder
is not less than adequate consideration as that term is defined in Section 3(18) of ERISA and (ii) that the terms of the Stock
Purchase and related transactions, taken as a whole, are fair to the ESOP from a financial point of view;

(c)               
A copy of a certificate from the Trustee, duly executed by an authorized Person on behalf of the Trustee, substantially
the form attached hereto as Exhibit G;

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(d)              
All consents, authorizations, orders and approvals from all third parties referred to on Section 5.02 of the Disclosure
Schedules in form and substance reasonably satisfactory to Buyer, and no such consent, authorization, order or approval shall have
been revoked;

(e)               
Each of the other Transaction Documents to which Seller is a party;

(f)               
Two (2) IRS Forms 8023; and

(g)              
A certificate, in form satisfactory to Buyer, pursuant to Treasury Regulations Section 1.445-2(b) that such Seller is not
a foreign person within the meaning of Section 1445 of the Code.

Section 8.03       
Buyer Deliveries. At or prior to the Closing, Buyer shall deliver, or cause to be delivered,
to Seller and Warrant Holder Representative, the following:

(a)               
A certificate of the Secretary or an Assistant Secretary (or equivalent officer) of Buyer certifying the names and signatures
of the officers of Buyer authorized to sign this Agreement and the other documents to be delivered hereunder;

(b)              
Cash in an amount equal to Estimated Closing Cash Payment (less the Escrow Amount) by wire transfer in immediately available
funds, to an account or accounts designated at least two Business Days prior to the Closing Date by Seller in a written notice
to Buyer;

(c)               
Certificates representing the ESOP Equity Consideration and the Warrant Holders Equity Consideration;

(d)              
The other Transaction Documents to which Buyer is a party;

(e)               
A certificate, dated the Closing Date and signed by a duly authorized officer of Buyer, certifying as to the matters set
forth in Sections 8.04(a) and (b); and

(f)               
All consents, authorizations, orders and approvals from the Governmental Authorities referred to in Section 6.02
of the Disclosure Schedules in form and substance reasonably satisfactory to Seller, and no such consent, authorization, order
and approval shall have been revoked.

Section 8.04       
Conditions to Obligations of Seller. The obligations of Seller and Warrant Holders to
consummate the Closing and the other contemplated transactions shall be subject to the satisfaction or waiver, at or prior to the
Closing, of each of the following conditions:

(a)               
All covenants contained in this Agreement to be complied with by Buyer on or before the Closing shall have been complied
with in all material respects.

(b)              
Each of the representations and warranties of Buyer contained in ARTICLE VI shall be true and correct as of the Closing
Date as though made on and as of the Closing Date; except as (i) would not, materially delay, hinder or prevent the consummation
of the 

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contemplated transactions by Buyer, or (ii) would not have in the aggregate a Material Adverse Effect on Buyer or its ability
to perform its obligations under this Agreement.

(c)               
No Governmental Authority or court of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered
any statute, rule, regulation, injunction or other order (whether temporary, preliminary or permanent) that is in effect and has
the effect of making the contemplated transactions or the Closing illegal or otherwise restraining or prohibiting consummation
thereof.

(d)              
The Company shall have adopted the ESOP amendment described in Section 7.07(b) relating to the freeze of the ESOP.

(e)               
The Company shall have made the Company’s 2018 Contribution to the ESOP in accordance with Section 7.07(f).

(f)               
The Trustee shall: (i) have received the Fairness Opinion dated as of the Closing Date in form and substance reasonably
satisfactory to the Trustee, (ii) have concluded that Seller’s agreement to enter into and consummate Seller’s obligations
in connection with the transactions that are the subject of this Agreement and the other Transaction Documents do not violate the
ERISA Fiduciary Standards, and (iii) be satisfied in its sole discretion as of the Closing Date that the transactions that are
the subject of this Agreement and the other Transaction Documents are prudent and in the best interests of the Plan participants
and their beneficiaries.

(g)              
The Trustee shall have received the Closing Balance Sheet prior to the Closing Date.

(h)              
Buyer shall have executed and delivered, or be prepared to execute and deliver, the documents and other items set forth
in Section 8.03.

Section 8.05       
Conditions to Obligations of Buyer. The obligations of Buyer to consummate the Closing
and the other contemplated transactions shall be subject to the satisfaction or waiver, at or prior to the Closing, of each of
the following conditions:

(a)               
All covenants contained in this Agreement to be complied with by Seller, the Company and Warrant Holders on or before the
Closing shall have been complied with in all material respects.

(b)              
Other than the Fundamental Representations, each of the representations and warranties concerning the Company contained
in ARTICLE III, concerning the Warrant Holders contained in ARTICLE IV, and concerning Seller in ARTICLE V
hereof shall be true and correct in all respects (in the case of any representation or warranty qualified by materiality or the
absence of a Material Adverse Effect) or in all material respects (in the case of any representation or warranty not qualified
by materiality or the absence of a Material Adverse Effect) on and as of the date hereof and on and as of the Closing Date as though
made on and as of the Closing Date (except for those representations and warranties that address matters only as of a particular
date, the accuracy of which shall be determined as of that specified date in all respects). The Fundamental Representations shall
be true and correct in all respects on and as of 

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the date hereof and on as of the Closing Date as though made on and as of the
Closing Date, except for those representations and warranties that address matters only as of a particular date (the accuracy of
which shall be determined as of that specified date in all respects).

(c)               
Since the date of this Agreement, there shall not have occurred a Material Adverse Effect with respect to the Company, or
any change, fact, circumstance, condition, event or effect, or combination of changes, facts, circumstances, conditions, events
or effects, that individually or in the aggregate would reasonably be expected to have a Material Adverse Effect with respect to
the Company;

(d)              
There shall not exist any material Liens on any of the assets of the Company.

(e)               
Buyer shall have obtained debt financing sufficient to fund the transactions contemplated hereby on the Closing Date, on
terms and conditions reasonably acceptable to Buyer.

(f)               
No Governmental Authority or court of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered
any statute, rule, regulation, injunction or other order (whether temporary, preliminary or permanent) which is in effect and has
the effect of making the contemplated transactions or the Closing illegal or otherwise restraining or prohibiting consummation
of such transactions.

(g)              
Seller, Warrant Holders, Warrant Holder Representative and the Company shall have executed and delivered, or be prepared
to execute and deliver, the documents and other items set forth in Sections 8.01 and 8.02.

ARTICLE
IX

INDEMNIFICATION

Section 9.01       
Survival. Subject to the limitations and other provisions of this Agreement, the representations
and warranties contained herein shall survive the Closing and shall remain in full force and effect until the date that is one
(1) year following the Closing Date; provided, however, that the Fundamental Representations shall survive the Closing
and remain in effect until sixty (60) days following the expiration of the applicable statute of limitations. None of the covenants
or other agreements contained in this Agreement shall survive the Closing Date other than those which by their terms contemplate
performance after the Closing Date, and each such surviving covenant and agreement shall survive the Closing for the period contemplated
by its terms. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known
at such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the
applicable survival period shall not thereafter be barred by the expiration of such survival period and such claims shall survive
until finally resolved. 

Section 9.02       
Escrow. Subject to the other terms and conditions of this ARTICLE IX, Buyer, its
Affiliates (including the Company after the Closing Date) and their respective officers, directors, employees and representatives
(each, a “Buyer Indemnified Party”) shall be indemnified and held harmless by the Escrow from and against, any
and all Losses resulting 

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from, incurred or sustained by, or imposed upon, any Buyer Indemnified Party, based upon, arising out
of, with respect to or by reason of:

(a)               
any inaccuracy in or breach of any of the representations or warranties of the Company contained in ARTICLE III of
this Agreement;

(b)              
any inaccuracy in or breach of any of the representations or warranties of Warrant Holders contained in ARTICLE IV
of this Agreement;

(c)               
any inaccuracy in or breach of any of the representations or warranties of Seller or Trustee contained in ARTICLE V
of this Agreement;

(d)              
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller, the Company, Trustee or
Warrant Holders pursuant to this Agreement;

(e)               
any unpaid Indebtedness or unpaid Transaction Expenses of the Company; and

(f)               
any Pre-Closing Taxes.

Section 9.03       
Indemnification By Buyer. Subject to the other terms and conditions of this ARTICLE
IX, Buyer shall indemnify Warrant Holders, Seller, their Affiliates and their respective officers, directors, employees and
representatives (each, a “Seller Indemnified Party”), and shall hold Seller Indemnified Parties harmless from
and against, any and all Losses resulting from, incurred or sustained by, or imposed upon, any Seller Indemnified Party based upon,
arising out of, with respect to or by reason of:

(a)               
any inaccuracy in or breach of any of the representations or warranties of Buyer contained in ARTICLE VI of this
Agreement; or

(b)              
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement.

Section 9.04       
Certain Limitations. The party making a claim under this ARTICLE IX is referred
to as the “Indemnified Party”, and the party against whom such claims are asserted under this ARTICLE IX
(including, for the avoidance of doubt, the Escrow for a claim made by a Buyer Indemnified Party) is referred to as the “Indemnifying
Party”. The indemnification provided for in Section 9.02 and Section 9.03 shall be subject to the following
limitations:

(a)               
The Indemnifying Party shall not be liable to the Indemnified Party for indemnification under Section 9.02(a), Section
9.02(b) and Section 9.02(c), on the one hand, or Section 9.03(a) on the other hand, until the aggregate amount
of all Losses in respect of indemnification under Section 9.02(a), Section 9.02(b) and Section 9.02(c), on the one
hand, or Section 9.03(a), on the other hand, exceeds $25,000 (the “Deductible”), in which event the Indemnifying
Party shall only be required to pay or be liable for Losses in excess of the Deductible; provided, however, that the Deductible
shall not be applicable with respect to breaches of the Fundamental Representations.

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(b)              
The aggregate amount of all Losses for which an Indemnifying Party shall be liable pursuant to this Agreement, including
Section 9.02(a), Section 9.02(b) and Section 9.02(c), on the one hand, or Section 9.03(a), on the other hand,
shall not exceed an amount equal to the Escrow Amount (the “Cap”). Without limiting the foregoing, Seller’s,
Warrant Holders’ and the Trustee’s liability in all cases following the Closing is limited to amounts remaining available
under the Escrow Amount then remaining in the Escrow, and the sole source of payment for any indemnification obligation of Seller
and Warrant Holders shall be the escrow fund pursuant to the Escrow Agreement.

(c)               
Notwithstanding anything to the contrary set forth in this Section 9.04 or otherwise set forth in this ARTICLE
IX, the Deductible shall not be applicable to fraud or any willful or intentional breach of a representation or warranty made
by Seller.

(d)              
Payments by, or on behalf of, an Indemnifying Party pursuant to Section 9.02 or Section 9.03 in respect of
any Loss shall be limited to the amount of any liability or damage that remains after deducting therefrom any insurance proceeds
and any indemnity, contribution or other similar payment actually received by the Indemnified Party (or the Company) in respect
of any such claim.

(e)               
In no event shall any Indemnifying Party be liable to any Indemnified Party for any punitive, incidental, consequential,
special or indirect damages, including loss of future revenue or income, loss of business reputation or opportunity relating to
the breach or alleged breach of this Agreement, or diminution of value or any damages based on any type of multiple, except to
the extent any Indemnified Party may become obligated for such damages as a result of a Third-Party Claim.

(f)               
The Parties agree that for purposes of determining Losses pursuant to this ARTICLE IX, all qualifiers with respect
to materiality, Material Adverse Effect or other similar qualification contained in or otherwise applicable to such representation
or warranty shall be disregarded.

(g)              
No Indemnified Party shall be entitled to recover more than once from an Indemnifying Party for matters based on the same
inaccuracy or breach.

Section 9.05       
Indemnification Procedures.

(a)               
Third-Party Claims. If any Indemnified Party receives notice of the assertion or commencement of any action, suit,
claim or other legal proceeding made or brought by any Person who is not a party to this Agreement or an Affiliate of a party to
this Agreement or a Representative of the foregoing (a “Third-Party Claim”) against such Indemnified Party with
respect to which the Indemnifying Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall
give the Indemnifying Party prompt written notice thereof. For claims made against the Escrow by a Buyer Indemnified Party, notice
shall also be provided to Seller and the Trustee, who shall be deemed to be an Indemnifying Party under this Section 9.05
solely for the limited purposes of the indemnification claims procedures and resolving claims made by Buyer Indemnified Parties
hereunder while any amount in the Escrow remains outstanding. The failure to give such prompt written notice shall not, however,
relieve 

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the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party is
materially prejudiced thereby. Such notice by the Indemnified Party shall describe the Third-Party Claim in reasonable detail,
shall include copies of all material written evidence thereof and shall indicate the estimated amount of the Loss that has been
or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate in, or by giving written
notice to the Indemnified Party, to assume the defense of any Third-Party Claim at the Indemnifying Party’s expense and by
the Indemnifying Party’s own counsel, and the Indemnified Party shall cooperate in good faith in such defense; provided,
that if the Indemnifying Party is Seller or the Trustee, such Indemnifying Party shall not have the right to defend or direct
the defense of any such Third Party Claim that (x) is asserted directly by or on behalf of a Person that is a supplier or customer
of the Company, (y) seeks an injunction or other equitable relief against the Indemnified Party, or (z) involves a conflict of
interest between the Indemnifying Party and the Indemnified Party that cannot be waived. In the event that the Indemnifying Party
assumes the defense of any Third-Party Claim, subject to Section 9.05(b), it shall have the right to take such action as
it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to any such Third-Party Claim in the name
and on behalf of the Indemnified Party. The Indemnified Party shall have the right, at its own cost and expense, to participate
in the defense of any Third-Party Claim with counsel selected by it subject to the Indemnifying Party’s right to control
the defense thereof. If the Indemnifying Party elects not to compromise or defend such Third-Party Claim or fails to promptly notify
the Indemnified Party in writing of its election to defend as provided in this Agreement, the Indemnified Party may, subject to
Section 9.05(b), pay, compromise, defend such Third-Party Claim and seek indemnification, subject to the limitations set
forth herein, for any and all Losses based upon, arising from or relating to such Third-Party Claim. Seller and Buyer shall cooperate
with each other in all reasonable respects in connection with the defense of any Third-Party Claim, including making available
(subject to the provisions of Section 7.06) records relating to such Third-Party Claim and furnishing, without expense (other
than reimbursement of actual out-of-pocket expenses) to the defending party, employees of the non-defending party as may be reasonably
necessary for the preparation of the defense of such Third-Party Claim.

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

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shall not agree
to any settlement without the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).

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

Section 9.06       
Tax Treatment of Indemnification Payments. All indemnification payments made under this
Agreement shall be treated by the Parties as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by
Law.

Section 9.07       
Exclusive Remedies. Subject to Section 2.05 (which shall govern any Closing Working
Capital disputes in accordance with the dispute mechanism set forth therein) and Section 8.11, the Parties acknowledge and
agree that their sole and exclusive remedy with respect to any and all claims whether based on tort, contract or otherwise (other
than claims arising from fraud on the part of a party hereto) in connection with the transactions contemplated by this Agreement
for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the
subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this ARTICLE IX. In furtherance
of the foregoing, each party hereby waives, to the fullest extent permitted under Law, any and all rights, claims and causes of
action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating
to the subject matter of this Agreement it may have against the other parties hereto and their Affiliates and each of their respective
Representatives arising under or based upon any Law, except pursuant to the indemnification provisions set forth in this ARTICLE
IX. Nothing in this shall limit any Person’s right to seek and obtain any equitable relief to which any Person shall
be entitled pursuant to Section 10.11 or to seek any remedy on account of intentional fraud by any party hereto.

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Section 9.08       
Other Limitations. If at any time subsequent to the receipt by an Indemnified Party of
an indemnity payment hereunder, such Indemnified Party (or any Affiliate thereof) receives any recovery, settlement or other similar
payment with respect to the Loss for which it received such indemnity payment (the “Recovery”), such Indemnified
Party shall promptly pay to the Indemnifying Party an amount equal to the amount of such Recovery, less any expense incurred by
such Indemnified Party (or its Affiliates) in connection with such Recovery, but in no event shall any such payment exceed the
amount of such indemnity payment.

ARTICLE
X

MISCELLANEOUS

Section 10.01   
Expenses. Except as otherwise expressly provided herein, all costs and expenses, including,
without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement
and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the Closing
shall have occurred; provided, however, that the Company shall be responsible for paying the fees and expenses of the Trustee and
its Representatives.

Section 10.02   
Notices. All notices, requests, consents, claims, demands, waivers and other communications
hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of
receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the
date sent by e-mail of a PDF document if sent during normal business hours of the recipient, and on the next Business Day if sent
after normal business hours of the recipient (in each case, with a copy by another allowed method pursuant to this Section 10.02);
or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such
communications must be sent to the respective Parties at the following addresses (or at such other address for a party as shall
be specified in a notice given in accordance with this Section 10.02):

If to Seller:                                             PAC Industries, Inc.
Employee Stock Ownership Plan and Trust

c/o First Bankers Trust Services, Inc.

2321 Kochs Lane

P.O. Box 4005

Quincy, IL 62305

Email: Dawn.Goestenkors@FBTServices.com

Attn: Dawn Goestenkors

 

with a copy to:                                      Seyfarth Shaw LLP

233 S. Wacker Drive, Suite 8000

Chicago, Illinois 60606-6448

Email: slifson@seyfarth.com

Attn.: Steven R. Lifson

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If to the Company:                               PAC Industries, Inc.

5341 Jaycee Avenue,

Harrisburg, PA 17112

Fax No.: 717-657-8678

Email: Frank@pacindustries.com

Attn: Frank Costabile, President

 

with a copy to:                                      Steiker, Greenapple & Fusco, P.C.

555 City Avenue, Suite 910

Bala Cynwyd, PA 19004

Fax No.: 215-508-2500

Email: jsteiker@esoplegal.com

Attn.: James G. Steiker

 

If to Warrant Holder

Representative, on behalf

of Warrant Holders:                             PAC Industries, Inc.

5341 Jaycee Avenue,

Harrisburg, PA 17112

Fax No.: 717-657-8678

Email: Frank@pacindustries.com

Attn: Frank Costabile, President

 

 

If to Buyer:                                            EVI Industries, Inc.

290 Northeast 68th Street

Miami, Florida 33138

Tel. No.: (305) 754-4551

Fax No.: (305) 751-4903

Email: hnahmad@envirostarinc.com

Attn.: Mr. Henry M. Nahmad

 

 

with a copy to:                                     Troutman Sanders LLP

875 Third Avenue

New York, New York 10022

Tel. No.: (212) 704-6030

Fax No.: (212) 704-5919

E-mail: joseph.walsh@troutman.com

Attention: Joseph Walsh, Esq.

 

Section 10.03   
Interpretation. For purposes of this Agreement: (a) the words “include,” “includes”
and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or”
is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and
“hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles,
Sections, Disclosure Schedules and Exhibits mean the Articles 

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and Sections of, and Disclosure Schedules and Exhibits attached to,
this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended,
supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such
statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder.
This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the
party drafting an instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein
shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

Section 10.04   
Headings. The headings in this Agreement are for reference only and shall not affect the
interpretation of this Agreement.

Section 10.05   
Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable
in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement
or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or
other provision is invalid, illegal or unenforceable, the Parties hereto shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the greatest extent possible.

Section 10.06   
Entire Agreement. This Agreement constitutes the sole and entire agreement of the Parties
to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous representations,
warranties, understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency
between the statements in the body of this Agreement, the Exhibits and Disclosure Schedules (other than an exception expressly
set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

Section 10.07   
Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit
of the Parties hereto and their respective successors and permitted assigns. Neither party may assign its rights or obligations
hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. No
assignment shall relieve the assigning party of any of its obligations hereunder.

Section 10.08   
No Third-Party Beneficiaries. Except as provided in ARTICLE IX, this Agreement
is for the sole benefit of the Parties hereto and their respective successors and permitted assigns and nothing herein, express
or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any
nature whatsoever under or by reason of this Agreement.

Section 10.09   
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 

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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.

Section 10.10   
Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

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

(b)              
ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE DISTRICT
OF DELAWARE OR THE COURTS OF THE STATE OF DELAWARE, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS
IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS
SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE
PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH
COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

(c)               
EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS
IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER TRANSACTION
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A)
NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE
FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY
MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.10(c).

Section 10.11   
Specific Performance. The Parties agree that irreparable damage would occur if any provision
of this Agreement were not performed in accordance with the terms hereof 

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and that the Parties shall be entitled to seek specific
performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.

Section 10.12   
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed
an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered
by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an
original signed copy of this Agreement.

Section 10.13   
Disclosure Schedules. Any information disclosed in any Schedule shall be deemed fully
disclosed for the purposes of all of the Schedules and shall be deemed to qualify all representations and warranties in ARTICLES
III, IV and V to the extent such qualification is reasonably apparent from the face of such Schedule. Neither the specification
(directly or indirectly by reference to a defined term hereof) of any dollar amount in the representations and warranties set forth
in ARTICLES III, IV, V or VI or the indemnification provisions of ARTICLE IX nor the inclusion of any items
in the Schedules shall be deemed to constitute an admission by the Company, Seller or Buyer, or otherwise imply, that any such
amount or such items so included are material for the purposes of this Agreement. The inclusion of, or reference to, any item within
any particular Schedule does not constitute an admission by the Company, Seller or Buyer that such item meets any or all of the
criteria set forth in this Agreement for inclusion on such Schedule.

Section 10.14   
Non-recourse. This Agreement may only be enforced against, and any claim, action, suit
or other legal proceeding based upon, arising out of, or related to this Agreement, or the negotiation, execution or performance
of this Agreement, may only be brought against the entities that are expressly named as Parties hereto and then only with respect
to the specific obligations set forth herein with respect to such party. No past, present or future director, officer, employee,
incorporator, manager, member, partner, stockholder, Affiliate, agent, attorney or other Representative of any party hereto or
of any Affiliate of any party hereto, or any of their successors or permitted assigns, shall have any liability for any obligations
or liabilities of any party hereto under this Agreement or for any claim or action based on, in respect of or by reason of the
transactions contemplated hereby. Without limiting the foregoing, FBTS has executed and delivered this Agreement and related documents,
not in its individual or corporate capacity, but solely as Trustee of the Trust. Accordingly, the performance of this Agreement
and the related documents by FBTS and any and all duties, obligations and liabilities of the Trustee hereunder will be effected
by FBTS only as Trustee and not by FBTS in its individual or corporate capacity. Further, any employee, officer or agent of FBTS
shall be acting only on behalf of FBTS and shall not be considered to be acting in his or her individual capacity. Neither FBTS
nor its officers, employees, directors, agents or shareholders shall have any personal liability or obligation of any nature whatsoever
by virtue of the execution and delivery of this Agreement and the related documents or the representations, covenants or warranties
contained therein.

Section 10.15   
Warrant Holder Representative. Each Warrant Holder hereby irrevocably appoints Warrant
Holder Representative as agent and attorney-in-fact for such Warrant Holder, with full power and authority to represent Warrant
Holders and Warrant Holders’ successors and assigns with respect to all matters arising under this Agreement and the 

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other
Transaction Documents and all actions taken by Warrant Holder Representative under this Agreement or such other Transaction Documents
will be binding upon Warrant Holders and Warrant Holders’ successors and assigns as if expressly ratified and confirmed in
writing by them. Without limiting the generality of the foregoing, Warrant Holder Representative has full power and authority,
on behalf of Warrant Holders and Warrant Holders’ successors and assigns, (i) to accept on behalf of Warrant Holders any
and all payments of Purchase Price or other amounts payable hereunder and to distribute such payments to Warrant Holders in proportion
to their respective ownership of such Warrants; (ii) to interpret the terms and provisions of this Agreement, to dispute or fail
to dispute any claim under this Agreement or such other Transaction Documents, (iii) to negotiate and compromise any dispute that
may arise under this Agreement or such other Transaction Document, and (iv) to sign any releases or other documents with respect
to any such dispute. Each Warrant Holder will be deemed a party or a signatory to any agreement, document, instrument or certificate
for which Warrant Holder Representative signs on behalf of such Warrant Holders. All decisions, actions and instructions by Warrant
Holder Representative, including the defense or settlement of any claims for which any Warrant Holder may be required to indemnify
any Buyer Indemnified Party pursuant to ARTICLE IX hereof, will be conclusive and binding on Warrant Holders and Warrant
Holders have no right to object, dissent, protest or otherwise contest the same. The Warrant Holder will also pay and indemnify
and hold harmless Seller and any Buyer Indemnified Party from and against any Losses that they may suffer or sustain as the result
of any claim by any Person that an action taken by Warrant Holder Representative on behalf of Warrant Holders is not binding on,
or enforceable against, Warrant Holder Representative. Seller and the Buyer each has the right to rely conclusively on the instructions
and decisions of the Warrant Holder Representative as to the settlement of any claims for indemnification by the Buyer pursuant
to ARTICLE IX hereof, or any other actions required to be taken by the Warrant Holder Representative hereunder, and no Party
hereunder will have any cause of action against Seller or the Buyer for any action taken by Seller or the Buyer in reliance upon
the instructions or decisions of the Warrant Holder Representative. The appointment of Warrant Holder Representative is an agency
coupled with an interest and is irrevocable and any action taken by Warrant Holder Representative pursuant to the authority granted
in this Section 10.15 is effective and absolutely binding on Warrant Holders notwithstanding any contrary action of
or direction from Warrant Holders. The death or incapacity, or dissolution or other termination of existence, of any Warrant Holder
does not terminate the authority and agency of the Warrant Holder Representative (or successor thereto). The provisions of this
Section 10.15 are binding upon the executors, heirs, legal representatives and successors of Warrant Holders, and any references
in this Agreement to Warrant Holders means and includes the successors to Warrant Holders’ rights hereunder, whether pursuant
to testamentary disposition, the laws of descent and distribution or otherwise.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF,
the Parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto
duly authorized.

	 	COMPANY:
	 	 	 
	 	PAC INDUSTRIES, INC.
	 	 	 
	 	 	 
	 	By	:/s/ Frank Costabile
	 	 	Name: Frank Costabile
	 	 	Title: President
	 	 	 
	 	TRUSTEE:
	 	 	 
	 	PAC INDUSTRIES, INC. EMPLOYEE STOCK 

OWNERSHIP TRUST
	 	 	 
	 	 	 
	 	By:	/s/ Dawn Goestenkors, EVP
	 	 	First Bankers Trust Services, Inc., not in its corporate
	 	 	capacity, but solely in its capacity as Trustee of the
	 	 	PAC Industries, Inc. Employee Stock Ownership Trust
	 	 	 
	 	 	 
	 	BUYER:
	 	 	 
	 	EVI INDUSTRIES, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Henry M. Nahmad
	 	 	Name:  Henry M. Nahmad
	 	 	Title:  Chief Executive Officer

 

 

  

[Signature
Page to Stock Purchase Agreement]

     

      

    

	 	WARRANT HOLDERS:
	 	 
	 	 
	 	/s/ Kaitlyn A. Costabile
	 	Kaitlyn A. Costabile
	 	 
	 	 
	 	/s/ Phillip A. Costabile II
	 	Philip A. Costabile II
	 	 
	 	 
	 	/s/ Christina Marie Costabile
	 	Christina Marie Costabile
	 	 
	 	 
	 	/s/ Emily M. Bradbury
	 	Emily M. Bradbury
	 	 
	 	 
	 	/s/ Karrah D. Devlin
	 	Karrah D. Devlin
	 	 
	 	 
	 	/s/ Sommer Costabile
	 	Sommer Costabile
	 	 
	 	 
	 	/s/ Rocco J. Costabile
	 	Rocco J. Costabile
	 	 
	 	 
	 	WARRANT HOLDER REPRESENTATIVE:
	 	 
	 	 
	 	/s/ Frank Costabile
	 	Frank Costabile

 

[Signature
Page to Stock Purchase Agreement]

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