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EXHIBIT 4.4

DESCRIPTION OF SECURITIES

The following summary of the material terms of our securities is not intended to be a complete summary of the rights and preferences of such securities, and is qualified by reference to our Charter, our Bylaws and the Warrant documents described herein, which are exhibits to the registration statement of which this prospectus is a part. We urge to you read each of the Charter, the Bylaws and the Warrant documents described herein in their entirety for a complete description of the rights and preferences of our securities.

Authorized and Outstanding Stock

The Charter authorizes the issuance of (a) 335,000,000 shares of common stock (the “Common Stock”), which consists of (i) 250,000,000 shares of Class A Common Stock, $0.0001 par value per share (the “Class A Common Stock”) and (ii) 75,000,000 shares of Class B Common Stock, $0.0001 par value per share (the “Class B Common Stock”), and (b) 10,000,000 shares of preferred stock, $0.0001 par value per share (the “Preferred Stock”). As of January 20, 2022, there were 14,929,982 shares of Class A Common Stock issued outstanding, 61,136,800 shares of Class B Common Stock issued and outstanding and no shares of Preferred Stock issued and outstanding.

Common Stock

The Charter provides the following with respect to the rights, powers, preferences and privileges of the Common Stock:

Voting Power

Except as otherwise required by law or as otherwise provided in any certificate of designation for any series of preferred stock, the holders of Common Stock possess all voting power for the election of the Company’s directors and all other matters requiring stockholder action. Holders of Common Stock are entitled to one vote per share on matters to be voted on by stockholders. Our Charter does not provide for cumulative voting rights.

Dividends

Subject to the rights, if any, of the holders of any outstanding shares of preferred stock, under the Charter, holders of Class A Common Stock will be entitled to receive such dividends, if any, as may be declared from time to time by the Company’s board of directors in its discretion out of funds legally available therefor. In no event will any stock dividends or stock splits or combinations of stock be declared or made on Class A Common Stock unless the shares of Class A Common Stock at the time outstanding are treated equally and identically. The holders of Class B Common Stock are not entitled to receive any dividends.

Liquidation, Dissolution and Winding Up
In the event of the Company’s voluntary or involuntary liquidation, dissolution, distribution of assets or winding-up, the holders of the Common Stock will be entitled to receive an equal amount per share of all of the Company’s assets of whatever kind available for distribution to stockholders, after the rights of the holders of the preferred stock have been satisfied.

Preemptive or Other Rights

There are no preemptive rights or sinking fund provisions applicable to the shares of the Company’s Common Stock.

Anti-Takeover Provisions

Charter and By-laws

Certain provisions of the Company’s Charter and Bylaws contain provisions that may delay, defer or discourage another party from acquiring control of the Company. The Company expects that these provisions, which are summarized below, will discourage coercive takeover practices or inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of the Company to first negotiate with the Board, which the Company believes may result in an improvement of the terms of any such acquisition in favor of the 

EXHIBIT 4.4

Company’s stockholders. However, they also give the Board the power to discourage mergers that some stockholders may favor.

Board Composition and Filling Vacancies

The Company’s board of directors is divided into three classes. Each Class I director has a term that expires at the Company’s annual meeting of stockholders in 2022, each Class II director has a term that expires at the Company’s annual meeting of stockholders in 2023 and each Class III director has a term that expires at the Company’s annual meeting of stockholders in 2024.

The Charter provides that directors may only be removed for cause and only by the affirmative vote of holders of a majority of the voting power of all then outstanding shares of capital stock of the Company entitled to vote generally in the election of directors, voting together as a single class. Any vacancy on the Board, however occurring, including a vacancy resulting from an increase in the size of the Board, may only be filled solely by a majority vote of the remaining directors then in office, even if less than a quorum, or by a sole remaining director (and not by stockholders), subject to the rights granted to certain stockholders under the Stockholders Agreement. The treatment of vacancies has the effect of making it more difficult for stockholders to change the composition of our board of directors. 

Special Meetings of Stockholders

The Charter provides that a special meeting of stockholders may be called by the (a) Chairman of the Board or Executive Chairman of the Board, as applicable, (b) Chief Executive Officer of the Company, or (c) the Board pursuant to a resolution adopted by a majority of the Board. The ability of the stockholders to call a special meeting is specifically denied. The Bylaws limit the business that may be conducted at an annual or special meeting of stockholders to those matters properly brought before the meeting.

Action by Written Consent

The Charter provides that any action required or permitted to be taken by the stockholders must be effected at an annual or special meeting of the stockholders, and may not be taken by written consent in lieu of a meeting. This limit may lengthen the amount of time required to take stockholder actions and would prevent the amendment of our Bylaws or removal of directors by our stockholders without holding a meeting of stockholders.

Advance Notice Requirements

The Bylaws establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors or new business to be brought before meetings of the Company’s stockholders. These procedures provide that notice of stockholder proposals must be timely given in writing to the corporate secretary of the Company prior to them meeting at which the action is to be taken. Generally, to be timely, notice must be received at the principal executive offices of the Company not less than 90 days nor more than 120 days prior to the first anniversary date of the annual meeting for the preceding year. The Bylaws specify the requirements as to form and content of all stockholders’ notices. These requirements may preclude stockholders from bringing matters before the stockholders at an annual or special meeting.

Amendment to Certificate of Incorporation

The Company reserves the right to amend, alter, change or repeal any provision contained in the Charter, in the manner now or hereafter prescribed by the Charter and applicable law.

Delaware Anti-Takeover Law

The Company has opted out of Section 203 of the Delaware General Corporation Law. Section 203 of the DGCL provides that if a person acquires 15% or more of the voting stock of a Delaware corporation, such person becomes an “interested stockholder” and may not engage in certain “business combinations” with such corporation for a period of three years from the time such person acquired 15% or more of such corporation’s voting stock, unless: (i) the board of directors of such corporation approves the acquisition of stock or the merger transaction before the time that the person becomes an interested stockholder, (ii) the interested stockholder owns at least 85% of the 

EXHIBIT 4.4

outstanding voting stock of such corporation at the time the merger transaction commences (excluding voting stock owned by directors who are also officers and certain employee stock plans), or (iii) the merger transaction is approved by the board of directors and at a meeting of stockholders, not by written consent, by the affirmative vote of 2∕3 of the outstanding voting stock which is not owned by the interested stockholder.

Warrants

As of January 20, 2022, there were 11,578,000 registered warrants (the “Public Warrants”) and 10,837,400 private placement warrants (the “Private Placement Warrants” and together with the Public Warrants, the “Warrants”) issued and outstanding, respectively.

Each Public Warrant entitles the registered holder to purchase one share of the Company’s Class A Common Stock at a price of $11.50 per share, subject to adjustment as discussed below, at any time commencing on the later of 12 months from the closing of Roman DBDR initial public offering or thirty (30) days after the consummation of an initial business combination. Pursuant to the warrant agreement, a warrantholder may exercise its Warrants only for a whole number of shares. This means that only a whole warrant may be exercised at any given time by a warrantholder. However, no Public Warrant will be exercisable for cash unless we have an effective and current registration statement covering the shares of the Company’s Class A Common Stock issuable upon exercise of the Public Warrants and a current prospectus relating to such shares of the Company’s Class A Common Stock. Notwithstanding the foregoing, if a registration statement covering the shares of the Company’s Class A Common Stock issuable upon exercise of the Public Warrants is not effective within 60 business days from the closing of our initial business combination, warrantholders may, until such time as there is an effective registration statement and during any period when we shall have failed to maintain an effective registration statement, exercise warrants on a cashless basis pursuant to an available exemption from registration under the Securities Act. The warrants will expire five years from the closing of our initial business combination at 5:00 p.m., New York City time or earlier upon redemption or liquidation, as described in the prospectus of Roman DBDR’s initial public offering.

The Private Placement Warrants are identical to the Public Warrants underlying the units issued in Roman DBDR’s initial public offering except that such Private Placement Warrants are exercisable for cash (even if a registration statement covering the shares of the Company’s Common Stock issuable upon exercise of such warrants is not effective) or on a cashless basis, at the holder’s option, and will not be redeemable by us, in each case so long as they are still held by the Sponsor or certain permitted transferees.

We may call the outstanding Public Warrants, in whole and not in part, at a price of $0.01 per Public Warrant:

a.at any time while the warrants are exercisable,
b.upon not less than 30 days’ prior written notice of redemption to each warrant holder, if, and only if, the reported last sale price of the shares of the Company’s Class A Common Stock equals or exceeds $18.00 per share, for any 20 trading days within a 30-day trading period ending three business day prior to the notice of redemption to warrant holders, and
c.if, and only if, there is a current registration statement in effect with respect to the shares of the Company’s Common Stock underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption.

The redemption rights described above will only be available for the Private Placement Warrants once, if ever, that the Private Placement Warrants are no longer owned by the Sponsor or certain permitted transferees of the Sponsor.

The right to exercise will be forfeited unless the Warrants are exercised prior to the date specified in the notice of redemption. On and after the redemption date, a record holder of a warrant will have no further rights except to receive the redemption price for such holder’s warrant upon surrender of such warrant.

The redemption criteria for our Warrants have been established at a price which is intended to provide warrant holders a reasonable premium to the initial exercise price and provide a sufficient differential between the then-prevailing share price and the Warrant exercise price so that if the share price declines as a result of our redemption call, the redemption will not cause the share price to drop below the exercise price of the warrants. If we call the Warrants for redemption, we plan to notify our securityholders by issuing a Current Report on Form 8-K and well as a broadly disseminated press release.

EXHIBIT 4.4

If we call the Warrants for redemption as described above, our management will have the option to require all holders that wish to exercise Warrants to do so on a “cashless basis.” In such event, each holder would pay the exercise price by surrendering the Warrants for that number of shares of the Company’s Class A Common Stock equal to the quotient obtained by dividing (x) the product of the number of shares of the Company’s Class A Common Stock underlying the Warrants, multiplied by the difference between the exercise price of the Warrants and the “fair market value” (defined below) by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the Company’s Class A Common Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of Warrants. Whether we will exercise our option to require all holders to exercise their Warrants on a “cashless basis” will depend on a variety of factors including the price of shares of the Company’s Class A Common Stock at the time the Warrants are called for redemption, our cash needs at such time and concerns regarding dilutive share issuances.

The Warrants are issued under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant agent, and us. The warrant agreement provides that the terms of the Warrants may be amended without the consent of any holder to cure any ambiguity or correct any defective provision, but requires the approval, by written consent or vote, of the holders of a majority of the then outstanding Public Warrants in order to make any change that adversely affects the interests of the registered holders.

The exercise price and number of shares of the Company’s Class A Common Stock issuable on exercise of the Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or our recapitalization, reorganization, merger or consolidation. However, the Warrants will not be adjusted for issuances of shares of the Company’s Class A Common Stock at a price below their respective exercise prices.

The Warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant agent, with the exercise form on the reverse side of the warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price (or on a cashless basis, if applicable), by certified or official bank check payable to us, for the number of warrants being exercised. The Warrant holders do not have the rights or privileges of holders of shares of the Company’s Class A Common Stock and any voting rights until they exercise their Warrants and receive shares of the Company’s Class A Common Stock. After the issuance of shares of the Company’s Class A Common Stock upon exercise of the Warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by stockholders.

Except as described above, no Public Warrants will be exercisable for cash and we will not be obligated to issue shares of the Company’s Class A Common Stock unless at the time a holder seeks to exercise such Warrant, a prospectus relating to the shares of the Company’s Class A Common Stock issuable upon exercise of the Warrants is current and the shares of the Company’s the Company’s Class A Common Stock have been registered or qualified or deemed to be exempt under the securities laws of the state of residence of the holder of the Warrants. Under the terms of the warrant agreement, we have agreed to use our best efforts to meet these conditions and to maintain a current prospectus relating to the shares of the Company’s Class A Common Stock issuable upon exercise of the Warrants until the expiration of the Warrants. However, we cannot assure you that we will be able to do so and, if we do not maintain a current prospectus relating to the shares of the Company’s Class A Common Stock issuable upon exercise of the Warrants, holders will be unable to exercise their Warrants and we will not be required to settle any such Warrant exercise. If the prospectus relating to the shares of the Company’s Class A Common Stock issuable upon the exercise of the Warrants is not current or if the Company’s Class A Common Stock is not qualified or exempt from qualification in the jurisdictions in which the holders of the Warrants reside, we will not be required to net cash settle or cash settle the Warrant exercise, the Warrants may have no value, the market for the Warrants may be limited and the Warrants may expire worthless.

Warrant holders may elect by notifying us in writing that it chooses to be subject to a restriction on the exercise of their Warrants such that an electing warrant holder would not be able to exercise their warrants to the extent that, after giving effect to such exercise, such holder would beneficially own in excess of 4.9% or 9.8% (or such other amount as the Warrant holder may specify) of the shares of the Company’s Class A Common Stock outstanding.

Redemption Procedures and Cashless Exercise. If we call the warrants for redemption as described above, our management will have the option to require all holders that wish to exercise warrants to do so on a “cashless basis.” In determining whether to require all holders to exercise their warrants on a “cashless basis,” our management will consider, among other factors, our cash position, the number of warrants that are outstanding and the dilutive effect 

EXHIBIT 4.4

on our stockholders of issuing the maximum number of shares of Class A Common Stock issuable upon the exercise of our Warrants. In such event, each holder would pay the exercise price by surrendering the Warrants for that number of shares of the Company’s Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of the Company’s Class A common stock underlying the Warrants, multiplied by the difference between the price per share at which shares of Class A Common Stock may be purchased at the time the Warrant is exercised and the fair market value (as defined below) by (y) the fair market value. The “fair market value” shall mean the average closing price per share of the Company’s Class A Common Stock for the ten (10) trading days ending on the third trading day prior to the date on which the notice of exercise of the Warrant is sent to the warrant agent. If our management takes advantage of this option, the notice of redemption will contain the information necessary to calculate the number of shares of the Company’s Class A common stock to be received upon exercise of the Warrants, including the “fair market value” in such case. Requiring a cashless exercise in this manner will reduce the number of shares to be issued and thereby lessen the dilutive effect of a Warrant redemption. If we call our Warrants for redemption and our management does not take advantage of this option, the Sponsor and its permitted transferees would still be entitled to exercise their Private Placement Warrants for cash or on a cashless basis using the same formula described above that other Warrant holders would have been required to use had all Warrant holders been required to exercise their Warrants on a cashless basis.

Contractual Arrangements with respect to the Private Placement Warrants

We have agreed that so long as the Private Placement Warrants are still held by the Sponsor or certain of its permitted transferees, we will not redeem such Warrants and we will allow the holders to exercise such Warrants on a cashless basis (even if a registration statement covering the shares of the Company’s Class A Common Stock issuable upon exercise of such Warrants is not effective). However, once any of the foregoing Warrants are transferred from the Sponsor or certain of its permitted transferees, these arrangements will no longer apply. Furthermore, because the Private Placement Warrants have been issued in a private transaction, the holders and their transferees will be allowed to exercise the Private Placement Warrants for cash even if a registration statement covering the shares of the Company’s Class A Common Stock issuable upon exercise of such Warrants is not effective , in which case the Warrant holder would receive unregistered shares of the Company’s Class A Common Stock.

Registration Rights

Certain of the Company’s equityholders, holders of Holdings’ Exchangeable Notes, and the Sponsor hold registration rights with respect to the securities held by them. Stockholders holding registrable securities will be entitled to make a written demand for registration under the Securities Act of all or part of their registrable securities. Subject to certain exceptions, such stockholders will also have certain “piggy-back” registration rights with respect to registration statements filed by the Company, as well additional rights to provide for registration of registrable securities on Form S-3 and any similar short-form registration statement that may be available at such time.

Our Transfer Agent and Warrant Agent

The transfer agent for our shares of the Company’s Common Stock and warrant agent for our warrants is Continental Stock Transfer & Trust Company, 17 Battery Place, New York, New York 10004.Document

COMPOSECURE, L.L.C.
AMENDED AND RESTATED EQUITY INCENTIVE PLAN
1.Establishment, Purpose and Types of Awards
CompoSecure, L.L.C., a Delaware limited liability company (the “Company”), established the COMPOSECURE, L.L.C. EQUITY INCENTIVE PLAN (the “Original Plan”) in 2015. The Company now wishes to amend and restate the Plan in its entirety with the COMPOSECURE, L.L.C. AMENDED AND RESTATED EQUITY INCENTIVE PLAN (the “Plan”) in order to include awards of Incentive Units that may be issued to eligible persons directly, or indirectly through CompoSecure Employee L.L.C., in addition to the equity incentives established in the Original Plan. The purpose of the Plan is to promote the long-term growth and profitability of the Company by (i) providing key people with incentives to improve the value of the Company and to contribute to the growth and financial success of the Company through their future services, and (ii) enabling the Company to attract, retain and reward the best-¬available personnel. The Plan permits the granting of options, Class C Unit appreciation rights, restricted Class C Units, unrestricted Class C Unit awards, Incentive Units, and other awards.
2.Definitions
Under this Plan, except where the context otherwise indicates, the following definitions apply:
(a)“Administrator” means the Board or the committee(s) or officer(s) appointed by the Board that have authority to administer the Plan as provided in Section 3.
(b)“Affiliate” means any entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, the Company (including, but not limited to, joint ventures, limited liability companies, and partnerships). For this purpose, “control” means ownership of fifty percent (50%) or more of the total combined voting power or value of all classes of equity or interests of the entity, or the power to direct the management and policies of the entity, by contract or otherwise.
(c)“Award” means any awards of restricted Class C Units, unrestricted Class C Units, options to acquire Class C Units, UAR’s, or Incentive Units granted under the Plan.
(d)“Board” has the meaning specified in the LLC Agreement.
(e)“Class C Units” has the meaning specified in the LLC Agreement.
(f)“Code” means the Internal Revenue Code of 1986, as amended, and the Treasury regulations and guidance issued thereunder.
(g)“Corporate Transaction” means (i) any liquidation, dissolution or winding up of the Company, (ii) the consummation of any sale, lease, exchange or other Transfer in one transaction or a series of related transactions of all or substantially all of the assets of the Company and its subsidiaries (as determined on a consolidated basis), or any material assets of the Company and its subsidiaries (as determined on a consolidated basis) outside the ordinary course of business, or (iii) the consummation of any transfer, merger, consolidation or similar transaction involving the Company, whether in a single transaction or in a series of related transactions (whether by merger, consolidation, recapitalization, reorganization, redemption, transfer or issuance of Equity Securities or otherwise), (A) in which the Company is not the continuing or surviving entity, (B) if immediately following the transaction, Members holding voting Units of the Company immediately prior to the transaction own less than fifty percent 

(50%) of the issued and outstanding voting Equity Securities of the Company, or (C) with any Independent Third Party or group of Independent Third Parties pursuant to which such Person or Persons acquire Units (or other Equity Securities) of the Company or any subsidiary (or any surviving or resulting Person) constituting fifty percent (50%) or more of the issued and outstanding voting Equity Securities of the Company or any such subsidiary, or otherwise possessing the voting power to elect a majority of the Board of the Company or any comparable governing body of any such subsidiary (or the board of managers or comparable governing body of such surviving or resulting Person).
(h)“Equity Securities” has the meaning specified in the LLC Agreement.
(i)“Fair Market Value” means the fair market value of a Class C Unit or Incentive Unit using a reasonable application of a reasonable valuation method as determined by the Administrator in its discretion.
(j)“Grant Agreement” means a written document, including an electronic writing acceptable to the Administrator, memorializing the terms and conditions of an Award granted pursuant to the Plan and which shall incorporate the terms of the Plan.
(k)“Incentive Units” has the meaning specified in the LLC Agreement.
(l)“Independent Third Party” has the meaning specified in the LLC Agreement.
(m)“LLC Agreement” means the Second Amended and Restated Limited Liability Company Agreement of CompoSecure, L.L.C., effective July 26, 2016, as may be amended or replaced from time to time.
(n)“Member” has the meaning specified in the LLC Agreement.
(o)“Person” has the meaning specified in the LLC Agreement.
(p)“Transfer” has the meaning specified in the LLC Agreement.
(q)“Unit” has the meaning specified in the LLC Agreement.
3.Administration
(a)Administration of the Plan. The Plan shall be administered by the Board or by such committee or committees as may be appointed by the Board from time to time. To the extent allowed by applicable state law and subject to the limitations set forth in (and the terms of) this Plan, the Board by resolution may authorize an officer or officers to grant Awards to other officers and employees of the Company and its Affiliates, and, to the extent of such authorization, such officer or officers shall be the Administrator.
(b)Powers of the Administrator. The Administrator shall have full power and authority to take all other actions necessary to carry out the purpose and intent of the Plan, including, but not limited to, the authority to:
(i)determine the eligible persons to whom, and the time or times at which Awards shall be granted, or establish programs for granting Awards;
(ii)determine the types of Awards to be granted;
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(iii)determine the number of Class C Units or Incentive Units to be covered by or used for reference purposes for each Award;
(iv)impose such terms, limitations, restrictions and conditions upon any such Award as the Administrator shall deem appropriate and prescribe Grant Agreements evidencing such Awards;
(v)modify, amend, extend or renew outstanding Awards, or accept the surrender of outstanding Awards and substitute new Awards (provided however, that, except as provided in Section 7, any modification that would materially adversely affect any outstanding Award shall not be made without the consent of the holder);
(vi)accelerate or otherwise change the time in which an Award may be exercised or becomes payable and to waive or accelerate the lapse, in whole or in part, of any restriction or condition with respect to such Award, including, but not limited to, any restriction or condition with respect to the vesting or exercisability of an Award following termination of any grantee’s employment or other relationship with the Company;
(vii)establish objectives and conditions, if any, for earning Awards and determining whether Awards will be paid with respect to a performance period;;
(viii)for any purpose, including but not limited to, qualifying for preferred tax treatment under non-U.S. tax laws or otherwise complying with the regulatory requirements of local or non-U.S. jurisdictions, to establish, amend, modify, administer or terminate subplans, and prescribe, amend and rescind rules and regulations relating to such subplans; and
(ix)construe and interpret the Plan, Grant Agreements and all other documents relevant to the Plan and Awards issued thereunder, and to correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the extent the Administrator shall deem it desirable to carry it into effect.
(c)Non-¬Uniform Determinations. The Administrator’s determinations under the Plan (including without limitation, determinations of the persons to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such Awards, and the treatment of Awards in a Corporate Transaction) need not be uniform and may be made by the Administrator selectively among persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly situated.
(d)Limited Liability. To the maximum extent permitted by law, no member of the Administrator shall be liable for any action taken or decision made in good faith relating to the Plan or any Award thereunder.
(e)Indemnification. To the maximum extent permitted by law and by the Company’s organizational documents, the members of the Administrator shall be indemnified by the Company in respect of all their activities under the Plan.
(f)Effect of Administrator’s Decision. All actions taken and decisions and determinations made by the Administrator on all matters relating to the Plan pursuant to the powers vested in it hereunder shall be in the Administrator’s sole and absolute discretion and shall be conclusive and binding on all parties concerned, including the Company, its Members, any participants in the Plan and any other employee, consultant, or director of the Company, and their respective successors in interest.
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4.Class C Units and Incentive Units Available for the Plan
Subject to adjustment under Section 7(e), (i) the number of Class C Units that may be issued with respect to Awards granted under the Plan shall not exceed an aggregate of 12,222.22 Class C Units, and (ii) the number of Incentive Units that may be issued with respect to Awards granted under the Plan shall not exceed ten percent (10%) of the aggregate number of the Class A Units (as defined in the LLC Agreement), the Class B Units (as defined in the LLC Agreement), Class C Units and Incentive Units outstanding on a fully diluted basis as of the Effective Date (as defined in the LLC Agreement). The Company shall reserve such number of Class C Units and Incentive Units for Awards under the Plan, subject to adjustment under Section 7(e). If any Award, or portion of an Award, under the Plan expires or terminates unexercised, becomes unexercisable, or is forfeited or otherwise terminated, surrendered or canceled as to any Class C Units (or UARs) or Incentive Units, the Class C Units or Incentive Units subject to such Award and the surrendered and withheld Class C Units or Incentive Units shall thereafter be available for further Awards under the Plan. For clarity, for purposes of determining the number of Class C Units that may be issued with respect to Awards granted under the Plan, each UAR granted shall be deemed to be a Class C Unit issuable with respect to the applicable Award and shall reduce the number of Class C Units available for future Awards hereunder on a one-¬for-¬one basis.
5.Participation
Participation in the Plan shall be open to all employees, officers, and directors of, and other individuals providing bona fide services to or for, the Company, or of any subsidiary of the Company, as may be selected by the Administrator from time to time. The Administrator may also grant Awards to individuals in connection with hiring, retention or otherwise, prior to the date the individual first performs services for the Company or an Affiliate, provided that such Awards shall not become vested or exercisable, and no Class C Units or Incentive Units shall be issued to such individual, prior to the date the individual first commences performance of such services. Incentive Units may be issued to eligible persons described in this Section indirectly through the issuance of Incentive Units to CompoSecure Employee L.L.C. and with a corresponding issuance of Incentive Units in CompoSecure Employee L.L.C. to such eligible person, which will grant such eligible person the same general rights subject to the same general limitations in CompoSecure Employee L.L.C. as an Incentive Unit holder would have in the Company.
6.Awards
The Administrator, in its sole discretion, establishes the terms of all Awards granted under the Plan. All Awards are subject to the terms and conditions provided in the Grant Agreement.
(a)Options to Acquire Class C Units. The Administrator may from time to time grant to eligible participants Awards of options that are not intended to be incentive stock options under Code section 422. Options must have an exercise price at least equal to the Fair Market Value of a Class C Unit as of the date of grant and may not have a term in excess of ten (10) years’ duration.
(b)Class C Unit Appreciation Rights. The Administrator may from time to time grant to eligible participants Awards of Class C Unit Appreciation Rights (“UARs”). A UAR entitles the grantee to receive, subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value equal to the product of (i) the excess of (A) the Fair Market Value on the exercise date of one Class C Unit over (B) the base price per Class C Unit specified in the Grant Agreement, times (ii) the number of Class C Units specified by the UAR, or portion 
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thereof, which is exercised. The base price per Class C Unit specified in the Grant Agreement shall not be less than Fair Market Value on the grant date. No UAR shall have a term longer than ten (10) years’ duration. Payment by the Company of the amount receivable upon any exercise of a UAR may be made by the delivery of Class C Units or cash, or any combination of Class C Units and cash, as determined in the sole discretion of the Administrator. If upon settlement of the exercise of an UAR a grantee is to receive a portion of such payment in Class C Units, the number of Class C Units shall be determined by dividing such portion by the Fair Market Value of a Class C Unit on the exercise date, as determined by the Board. No fractional Class C Units shall be used for such payment and the Administrator shall determine whether cash shall be given in lieu of such fractional Class C Units or whether such fractional Class C Units shall be eliminated.
(c)Class C Unit Awards. The Administrator may from time to time grant restricted or unrestricted Class C Unit Awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine.
(d)Incentive Units. The Administrator may from time to time grant to eligible participants Awards of Incentive Units. Such Incentive Units may be issued for no cash consideration or other property. A participant receiving Incentive Units must agree to be bound by the terms of the LLC Agreement and the applicable Grant Agreement. A participant’s allocable share of Company income, gain, loss, deduction and credit for Federal income tax purposes shall be determined under the LLC Agreement and the limited liability agreement of CompoSecure Employee L.L.C. (as amended from time to time, the “Employee LLC Agreement”), taken in conjunction with this Plan and the terms of the participant’s Award. Vesting of such Incentive Units shall be as specified in the applicable Grant Agreement. Each participant holding Incentive Units will participate in distributions by the Company as and only to the extent set forth in the LLC Agreement and the Employee LLC Agreement. Except as specifically provided by the Plan, a Grant Agreement, the LLC Agreement or the Employee LLC Agreement, an Award of such Incentive Units shall not give a participant rights as a member of the Company or CompoSecure Employee L.L.C.; instead, such participant shall obtain such rights, subject to any limitations imposed by the Plan, the Grant Agreement, or the Employee LLC Agreement, upon such Incentive Units becoming Unrestricted Incentive Units (as defined in the LLC Agreement).
7.Miscellaneous
(a)Withholding of Taxes. Grantees and holders of Awards shall pay to the Company or its Affiliate, or make provision satisfactory to the Administrator for payment of, any taxes required to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability. The Company or its Affiliate may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award. In the event that payment to the Company or its Affiliate of such tax obligations is made in Class C Units, such Class C Units shall be valued at Fair Market Value on the applicable date for such purposes and shall not exceed in amount the minimum statutory tax withholding obligation.
(b)Call Right. A Grant Agreement may specify that an Award recipient shall sell to the Company any Class C Units or Incentive Units acquired in connection with an Award under conditions specified in the Grant Agreement (a “call”).
(c)Loans. To the extent otherwise permitted by law, the Company or its Affiliate may make or guarantee loans to grantees to assist grantees in exercising Awards and satisfying any withholding tax obligations.
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(d)Transferability; Exercisability. No Award granted under the Plan nor any Class C Unit obtained pursuant to exercise, transfer, or payment of any Award or any Incentive Units shall be transferable by a grantee other than for bona fide estate planning purposes, during the grantee’s lifetime or on death by will or intestacy to the grantee’s spouse, child (natural or adopted), or any other direct lineal descendant of the grantee (or the grantee’s spouse) (all of the foregoing collectively referred to as “family members”), or any other relative/person approved by the Manager of CompoSecure Employee L.L.C., or any custodian or trustee of any trust, partnership or limited liability company for the benefit of, or the ownership interests of which are owned wholly by the grantee or any of the grantee’s family members. An Award may be exercised during the lifetime of the grantee, only by the grantee, a transferee of the grantee pursuant to this Section 7(g) or, during the period the grantee is under a legal disability, by the grantee’s guardian or legal representative.
(e)Adjustments for Certain Transactions; Corporate Transactions.
(i)Subject to any required action by the Members, in the event of any change in the Class C Units or Incentive Units effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, conversion to another form of business entity, re-¬formation in another jurisdiction, recapitalization, reclassification, Class C Unit or Incentive Unit dividend, Class C Unit or Incentive Unit split, reverse Class C Unit or Incentive Unit split, split-¬up, split-¬off, spin-¬off, combination of Class C Units or Incentive Units, exchange of Class C Units or Incentive Units, or similar change in the capital structure of the Company, or in the event of payment of an extraordinary dividend or distribution to the Members of the Company in a form other than Class C Units or Incentive Units (excepting normal cash dividends and distributions) that has a material effect on the Fair Market Value of Class C Units or Incentive Units, adjustments shall be made in the number and class of Class C Units or Incentive Units subject to the Plan and to any outstanding Awards, and in the exercise or purchase price per Class C Unit or Incentive Unit of any outstanding Awards, and/or Awards may be exchanged for or substituted with other incentive awards, in order to prevent dilution or enlargement of participants’ rights under the Plan, and those adjustments, exchanges, or substitutions shall be made in the form and manner determined by the Administrator in its sole discretion. The Administrator shall be permitted to make such adjustments, exchanges, or substitutions without the consent of any Award holder. For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the Company.” Any fractional Class C Unit or Incentive Unit resulting from an adjustment pursuant to this Section 7(e) shall be rounded down to the nearest whole number. Such adjustments, exchanges, or substitutions shall be determined by the Administrator, and its determination shall be final, binding, and conclusive.
(ii)In the event of any Corporate Transaction, outstanding options and other Awards that are payable in or convertible into Class C Units or Incentive Units under this Plan will terminate upon the effective time of such Corporate Transaction unless otherwise provided in your Grant Agreement or unless provision is made in connection with the transaction for the continuation or assumption of such Awards by, or for the substitution of equivalent awards, as determined in the sole discretion of the Administrator, of, the surviving or successor entity or a parent thereof. In the event of such termination, the Administrator may, in its sole discretion, permit the holders of options and other Awards under the Plan, immediately before the Corporate Transaction, to exercise or convert all portions of such options or other Awards under the Plan that are then exercisable or convertible or which become exercisable or convertible upon or prior to the effective time of the Corporate Transaction. The Administrator may, in its sole discretion and without the consent of any Award holder, determine that, upon the 
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occurrence of a Corporate Transaction, each or any Award outstanding immediately prior to the Corporate Transaction and not previously exercised or settled shall be canceled in exchange for a payment with respect to each vested Class C Unit or Unrestricted Incentive Unit subject to such canceled Award in (I) cash, (II) equity of the Company or of a corporation or other business entity a party to the Corporate Transaction, or (III) other property which, in any such case, shall be in an amount having a Fair Market Value equal to the Fair Market Value of the consideration to be paid per Class C Unit or per Incentive Unit, as applicable, in the Corporate Transaction, reduced (but not below zero) by the exercise or purchase price per Class C Unit or Incentive Unit, if any, under such Award. In the event such determination is made by the Administrator, an Award having an exercise or purchase price per Class C Unit equal to or greater than the Fair Market Value of the consideration to be paid per Class C Unit in the Corporate Transaction may be canceled without payment of consideration to the holder thereof. If, immediately before the Corporate Transaction, no stock of the Company is readily tradable on an established securities market or otherwise, and the vesting of an Award or Awards pursuant to this Section 7(e) would be treated as a “parachute payment” (as defined in Section 280G of the Code), then such Award or Awards shall not vest unless the requirements of the Class C Unitholder or Incentive Unit holder approval exemption of Section 280G(b)(5) of the Code have been satisfied with respect to such Award or Awards.
(f)Termination, Amendment and Modification of the Plan. The Board may terminate, amend or modify the Plan or any portion thereof at any time. Except as otherwise determined by the Board, termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. Termination of the Plan shall not affect any outstanding Award, unless otherwise specified in the Grant Agreement.
(g)Non-Guarantee of Employment or Service. Nothing in the Plan or in any Grant Agreement thereunder shall confer any right on an individual to continue in the service of the Company or shall interfere in any way with the right of the Company to terminate such service at any time with or without cause or notice and whether or not such termination results in (i) the failure of any Award to vest; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any other adverse effect on the individual’s interests under the Plan.
(h)Compliance with Securities Laws; Listing and Registration. If at any time the Administrator determines that the delivery of Class C Units or Incentive Units under the Plan is or may be unlawful under the laws of any applicable jurisdiction, or federal, state or non-U.S. securities laws, the right to exercise an Award or receive Class C Units or Incentive Units pursuant to an Award shall be suspended until the Administrator determines that such delivery is lawful. If at any time the Administrator determines that the delivery of Class C Units or Incentive Units under the Plan is or may violate the rules of the national exchange on which the Class C Units or Incentive Units are then listed for trade, the right to exercise an Award or receive Class C Units or Incentive Units pursuant to an Award shall be suspended until the Administrator determines that such delivery would not violate such rules. The Company shall have no obligation to effect any registration or qualification of the Class C Units or Incentive Units under federal, state or non-U.S. laws.
The Company may require that a grantee, as a condition to exercise of an Award, and as a condition to the delivery of any Class C Unit or Incentive Unit certificate, make such written representations (including representations to the effect that such person will not dispose of the Class C Units or Incentive Units so acquired in violation of federal, state or non-U.S. securities laws) and furnish such information as may, in the opinion of counsel for the Company, be appropriate to permit the Company to issue the Class C Units or Incentive Units in compliance 
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with applicable federal, state or non-U.S. securities laws. The Class C Unit or Incentive Unit certificates for any Class C Units or Incentive Units issued pursuant to this Plan may bear a legend restricting transferability of the Class C Units or Incentive Units unless such Class C Units or Incentive Units are registered or an exemption from registration is available under the Securities Act of 1933, as amended, and applicable state or non-U.S. securities laws.
(i)No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a grantee or any other person. To the extent that any grantee or other person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company.
(j)Governing Law. The validity, construction and effect of the Plan, of Grant Agreements entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and all persons having or claiming to have any interest therein or thereunder, shall be determined exclusively in accordance with applicable federal laws and the laws of the State of Delaware, without regard to its conflict of laws principles.
(k)Section 409A. The Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt from, Code section 409A. The Company, however, does not guarantee any particular tax effect of participation in the Plan. The Plan and all Awards granted under the Plan shall be administered, interpreted, and construed in a manner consistent with Code section 409A to the extent necessary to avoid the imposition of additional taxes under Code section 409A(a)(1)(B). Should any provision of the Plan, any Grant Agreement, or any other agreement or arrangement contemplated by the Plan be found not to comply with, or otherwise be exempt from, the provisions of Code section 409A, such provision shall be modified and given effect (retroactively if necessary), in the sole discretion of the Administrator, and without the consent of the holder of the Award, in such manner as the Administrator determines to be necessary or appropriate to comply with, or to effectuate an exemption from, Code section 409A. Notwithstanding anything in the Plan to the contrary, in no event shall the Administrator exercise its discretion to accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred compensation within the meaning of Code section 409A unless, and solely to the extent, that such accelerated payment or settlement is permissible under Treasury Regulation section 1.409A-¬3(j)(4) or any successor provision.
(l)Effective Date; Termination Date. The Plan is effective as of the date on which the Plan is adopted by the Board. No Award shall be granted under the Plan after the close of business on the day immediately preceding the tenth (10th) anniversary of the effective date of the Plan. Subject to other applicable provisions of the Plan, all Awards made under the Plan prior to such termination of the Plan shall remain in effect until such Awards have been satisfied or terminated in accordance with the Plan and the terms of such Awards.

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