Document:

Document

          

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

THIS PURCHASE WARRANT IS NOT EXERCISABLE PRIOR TO October 8, 2022. VOID AFTER 5:00 P.M., EASTERN TIME, October 7, 2027. 

          

COMMON STOCK PURCHASE WARRANT

For the Purchase of up to [__________] Shares of Common Stock 
of
UNIQUE FABRICATING, INC.

1.Purchase Warrant.  THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of the undersigned holder hereof (“Holder”), as owner of this Common Stock Purchase Warrant (the “Purchase Warrant”), to Unique Fabricating, Inc., a Delaware corporation (the “Company”), Holder is entitled, at any time or from time to time from October 8, 2022 (the “Commencement Date”), and at or before 5:00 p.m., Eastern time, October 7, 2027 (the “Expiration Date”), but not thereafter, to subscribe for, purchase and receive, in whole or in part, up to [__________] shares of the Company, par value $0.001 per share (the “Shares”), subject to adjustment as provided in Section 5 hereof.  This Purchase Warrant will not be exercisable more than five years from the date of issuance of this Purchase Warrant.  If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the next succeeding day which is not such a day in accordance with the terms herein.  This Purchase Warrant is initially exercisable at an exercise price of $0.52 per Share, provided, however, that upon the occurrence of any of the events specified in Section 5 hereof, the rights granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified.  The term “Exercise Price” shall mean the initial exercise price or the adjusted exercise price, depending on the context.

2.Exercise.

2.1    Exercise Form.  In order to exercise this Purchase Warrant, in whole or in part, the exercise form attached hereto (the “Notice of Exercise”) must be duly executed and completed and delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased payable by a check payable to the order of the Company or cash by wire transfer of immediately available funds to an account designated in writing from time to time by the Company.  If the purchase rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented hereby shall cease and expire. 

2.2    Cashless Exercise.  In lieu of exercising this Purchase Warrant by payment of cash by wire transfer or a check payable to the order of the Company pursuant to Section 2.1 above, Holder may elect to receive the number of Shares equal to the fair market value of this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase Warrant to the Company, together with the Notice of Exercise attached hereto, in which event the Company shall issue to Holder a number of Shares calculated in accordance with the following formula: 
                  X    =    Y(A-B) 
                                   A

Where,       X   =    The number of Shares to be issued to Holder; 

          

Y   =    The number of Shares for which the Purchase Warrant would be issuable upon exercise of this Purchase Warrant in accordance with the terms of this Purchase Warrant if such exercise were by means of a cash exercise rather than a cashless exercise;

              A   =    The Fair Market Value of one Share; and
   
  B   =    The Exercise Price. 

For purposes of this Section 2.2, the “Fair Market Value” of a Share is defined as follows: 

          (i)        if the Company’s common stock is traded on a securities exchange, the value shall be deemed to be the closing price on such exchange on the date immediately preceding the date of the Notice of Exercise being submitted in connection with the exercise of the Purchase Warrant; or (ii) if the Company’s common stock is not so traded but is actively quoted over-the-counter or another similar electronic securities quotation platform, the value shall be deemed to be the closing bid on the date immediately preceding the date of the Notice of Exercise being submitted in connection with the exercise of the Purchase Warrant, or if there is not any closing bid price quoted on such date then the last date for which there was a closing bid quoted.  If there is no public market of any kind, the value of a Share shall be the fair market value thereof, as determined in good faith by the Company’s Board of Directors. 

2.3    Delivery of Warrant Shares Upon Exercise.  The Company shall cause the Shares purchased hereunder to be transmitted by the Company’s transfer agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”), if the Company is then a participant in such system, and either (A) there is an effective registration statement permitting the issuance of the Shares to or resale of the Shares by the Holder or (B) the Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Purchase Warrant), and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the later of (i) two (2) trading days after the delivery to the Company of the Notice of Exercise, (ii) one (1) trading day after delivery of the aggregate Exercise Price to the Company and (iii) the number of trading days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Share Delivery Date”).  Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Shares with respect to which this Purchase Warrant has been exercised, irrespective of the date of delivery of such Shares, provided  that payment in cash of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) three (3) trading days and (ii) the number of trading days comprising the Standard Settlement Period following delivery of the Notice of Exercise.  The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Purchase Warrant remains outstanding and exercisable.  As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of trading days, on the Company’s primary trading market with respect to the Shares as in effect on the date of delivery of the Notice of Exercise.

          

2.4    Rescission Rights.  If the Company fails to cause its transfer agent to transmit to the Holder the Shares with respect to which this Purchase Warrant has been exercised pursuant to Section 2.3 by the Share Delivery Date, then the Holder will have the right to rescind such exercise.

2.5    Holder’s Exercise Limitations.  The Company shall not effect any exercise of this Purchase Warrant, and a Holder shall not have the right to exercise any portion of this Purchase Warrant, pursuant to this Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s affiliates (such persons, the “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of the Company’s common stock beneficially owned by the Holder and its affiliates and Attribution Parties shall include the number of shares of the Company’s common stock issuable upon exercise of this Purchase Warrant with respect to which such determination is being made.  Except as set forth in the preceding sentence, for purposes of this Section 2.5, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.  To the extent that the limitation contained in this Section 2.5 applies, the determination of whether this Purchase Warrant is exercisable (in relation to other securities owned by the Holder together with any affiliates and Attribution Parties) and of which portion of this Purchase Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Purchase Warrant is exercisable (in relation to other securities owned by the Holder together with any affiliates and Attribution Parties) and of which portion of this Purchase Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.  In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 2.5, in determining the number of outstanding shares of the Company’s common stock, the Holder may rely on the number of outstanding shares of common stock as reflected in (A) the Company’s most recent periodic or annual report filed with the U.S. Securities and Exchange Commission (the “Commission”), as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or its transfer agent setting forth the number of shares of common stock outstanding.  Upon the written or oral request of a Holder, the Company shall within one (1) trading day confirm orally and in writing to the Holder the number of shares of common stock then outstanding.  In any case, the number of outstanding shares of the Company’s common stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Purchase Warrant, by the Holder or its affiliates or Attribution Parties since the date as of which such number of outstanding shares of the Company’s common stock was reported.  The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the 

          

Company’s common stock outstanding immediately after giving effect to the issuance of shares of common stock issuable upon exercise of this Purchase Warrant.  The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2.5, provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Company’s common stock outstanding immediately after giving effect to the issuance of shares of common stock upon exercise of this Purchase Warrant held by the Holder and the provisions of this Section 2.5 shall continue to apply.  Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2.5 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.  The limitations contained in this paragraph shall apply to a successor holder of this Purchase Warrant.] TBD

2.6    Legend.  Each certificate for the securities purchased under this Purchase Warrant shall bear a legend in substantially the following form unless such securities have been registered under the Securities Act of 1933, as amended (the “Act”):

“The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”), or applicable state law.  Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Act, or pursuant to an exemption from registration under the Act and applicable state law which, in the opinion of counsel to the Company, is available.”

3.Transfer.

3.1    Transferability.  Subject to compliance with any applicable securities laws and the conditions set forth in Section 3.4 hereof, this Purchase Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Purchase Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Purchase Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Purchase Warrant or Purchase Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Purchase Warrant evidencing the portion of this Purchase Warrant not so assigned, and this Purchase Warrant shall promptly be cancelled.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Purchase Warrant to the Company unless the Holder has assigned this Purchase Warrant in full, in which case, the Holder shall surrender this Purchase Warrant to the Company within three (3) trading days of the date on which the Holder delivers an assignment form to the Company 

          

assigning this Purchase Warrant in full.  The Purchase Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Shares without having a new Purchase Warrant issued.

3.2    Representation by the Holder.  The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Purchase Warrant and, upon any exercise hereof, will acquire the Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Shares or any part thereof in violation of the Act or any applicable state securities law, except pursuant to sales registered or exempted under the Act.

3.3    Warrant Register.  The Company shall register this Purchase Warrant, upon records to be maintained by or on behalf of the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time.  The Company may deem and treat the registered Holder of this Purchase Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

3.4    Transfer Restrictions.  If, at the time of the surrender of this Purchase Warrant in connection with any transfer of this Purchase Warrant, the transfer of this Purchase Warrant shall not be either (i) registered pursuant to an effective registration statement under the Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Purchase Warrant, as the case may be, provide the Company an opinion of counsel acceptable to the Company in its sole discretion that such transfer is exempt from the registration requirements of the Act.

4.New Purchase Warrants to be Issued.

4.1    Partial Exercise or Transfer.  This Purchase Warrant may be divided or combined with other Purchase Warrants upon presentation hereof and, with respect to a combination with other Purchase Warrants, such other Purchase Warrants at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Purchase Warrants are to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 3.1, Section 3.2 and Section 3.4 as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Purchase Warrant or Purchase Warrants in exchange for the Purchase Warrant or Purchase Warrants to be divided or combined in accordance with such notice.  All Purchase Warrants issued on transfers or exchanges shall be dated the Initial Exercise Date and shall be identical with this Purchase Warrant except, as applicable, as to the number of Shares issuable pursuant thereto.

4.2    Lost Purchase Warrant.  Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase Warrant of like tenor and date.  Any such new Purchase Warrant 

          

executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

5.Adjustments.

5.1    Adjustments to Exercise Price and Number of Securities.  The Exercise Price and the number of Shares underlying the Purchase Warrant shall be subject to adjustment from time to time as hereinafter set forth:

5.1.1    Share Dividends; Split Ups.  If, after the Issuance Date, and subject to the provisions of Section 5.3 below, the number of outstanding Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding shares, and the Exercise Price shall be proportionately decreased

5.1.2    Aggregation of Shares.  If, after the Issuance Date, and subject to the provisions of Section 5.3 below, the number of outstanding Shares is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding shares, and the Exercise Price shall be proportionately increased.

5.1.3    Replacement of Securities upon Reorganization, etc.  In case of any reclassification or reorganization of the outstanding Shares other than a change covered by Section 5.1.1 or Section 5.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share reorganization or amalgamation, merger, consolidation or share exchange of the Company with or into another corporation (other than a consolidation, merger or share exchange or amalgamation in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, share exchange, merger, amalgamation, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if any reclassification also results in a change in Shares covered by Section 5.1.1 or Section 5.1.2, then such adjustment shall be made pursuant to Section 5.1.1, Section 5.1.2 and this Section 5.1.3.  The provisions of this Section 5.1.3 shall similarly apply to successive reclassifications, reorganizations, amalgamations, mergers or consolidations, sales or other transfers.

5.1.4    Changes in Form of Purchase Warrant.  This form of Purchase Warrant need not be changed because of any change pursuant to this Section 5.1, and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated in the Purchase Warrants initially issued on the Issuance Date.  The acceptance by any Holder of the issuance of new Purchase Warrants reflecting a required or permissive change shall not be 

          

deemed to waive any rights to an adjustment occurring after the Commencement Date or the computation thereof.

5.2    Substitute Purchase Warrant.  In case of any consolidation of the Company with, or merger or amalgamation of the Company with or into, another corporation (other than a consolidation or share exchange or amalgamation which does not result in any reclassification or change of the outstanding Shares), the corporation formed by such consolidation, merger or share exchange or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable upon such consolidation, merger or share exchange or amalgamation, by a holder of the number of Shares of the Company for which such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation, sale or transfer.  Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided for in this Section 5. The above provision of this Section 5.2 shall similarly apply to successive consolidations or share reconstructions or amalgamations.

5.3    Elimination of Fractional Interests.  The Company shall not be required to issue certificates representing fractions of Shares upon the exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest whole number of Shares or other securities, properties or rights.

6.Reservation and Registration.  The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose of issuance upon exercise of the Purchase Warrants, such number of Shares or other securities, properties or rights as shall be issuable upon the exercise thereof.  The Company covenants and agrees that, upon exercise of the Purchase Warrants and payment of the Exercise Price therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder.  The Company further covenants and agrees that upon exercise of the Purchase Warrants and payment of the exercise price therefor, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder.

7.  Certain Notice Requirements.  

7.1    Holder’s Right to Receive Notice.  Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to receive notice as a stockholder for the election of directors or any other matter, or as having any rights whatsoever as a stockholder of the Company.  If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events described in Section 7.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholders entitled to such dividend, distribution, conversion or exchange of securities or 

          

subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale.  Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be.  Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other stockholders of the Company at the same time and in the same manner that such notice is given to the stockholders. 

7.2    Events Requiring Notice.  The Company shall be required to give the notice described in this Section 7.2 upon one or more of the following events: (i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; (ii) the Company shall offer to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor; or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale of all or substantially all of its property, assets and business shall be proposed by the Company.

7.3    Notice of Change in Exercise Price.  The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section 5 hereof, send notice to the Holders of such event and change (“Price Notice”).  The Price Notice shall describe the event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company’s Chief Financial Officer.

7.4    Transmittal of Notices.  All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company, to the following address or to such other address as the Company may designate by notice to the Holders:
 
            Unique Fabricating, Inc.
            800 Standard Parkway
            Auburn Hills, MI 48326
Attn: Doug Cain, President & CEO

With a copy (which shall not constitute notice) to: 
Sills Cummis & Gross
One Riverfront Plaza 
Newark, NJ 07102 
Attn: Ira A. Rosenberg, Esq.

8.Miscellaneous.  

8.1    Amendments.  The Company and each Holder may from time to time supplement or amend this Purchase Warrant without the approval of any of the other Holders in order to cure any ambiguity, to correct or supplement any provision contained herein that may 

          

be defective or inconsistent with any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company and such Holder may deem necessary or desirable and that the Company and such Holder deem shall not adversely affect the interest of the other Holders.  All other modifications or amendments shall require the written consent of and be signed by Holders holding Purchase Warrants representing a majority of the shares issuable upon exercise of the Purchase Warrants then outstanding.

8.2    Headings.  The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Warrant. 

8.3    Binding Effect.  This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions herein contained.

8.4    Governing Law; Submission to Jurisdiction.  This Purchase Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof.  Any legal suit, action or proceeding arising out of or based upon this Purchase Warrant shall be instituted in (i) the federal courts of the United States of America located in the City and County of New York, Borough of Manhattan or (ii) the courts of the State of New York located in the City and County of New York, Borough of Manhattan (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court, as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding.  Service of any process, summons, notice or document by mail to such party’s address set forth above 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 other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum.

8.5    Waiver, etc.  The failure of the Company or any Holder to at any time enforce any of the provisions of this Purchase Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase Warrant.  No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment. 

[Remainder of page intentionally left blank.]

          

IN WITNESS WHEREOF, the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the ___ day of _________, 2022. 
UNIQUE FABRICATING, INC. 

By:                                                                              
Name:                                                                         
Title:                                                                           

            Agreed and Acknowledged:

By:                                                                              
Name:                                                                         
Title:                                                                           

          

Notice of Exercise
Date: __________, 20___ 

The undersigned hereby elects irrevocably to exercise the Purchase Warrant for ______ Shares of Unique Fabricating, Inc., a Delaware corporation (the “Company”) and hereby makes payment by a check payable to the order of Company or in cash by wire transfer of $____ (at the rate of $● per Share) in payment of the Exercise Price pursuant thereto.  Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.

or 

The undersigned hereby elects irrevocably to purchase ______ Shares pursuant to Section 2.2 of the Purchase Warrant by cashless exercise, with the consideration to be paid for such Shares being equal to the reduction in the number of Shares for which the Purchase Warrant was otherwise exercisable calculated in accordance with the following formula: 

                  X    =    Y(A-B) 
                                     A 
Where,       X   =    The number of Shares to be issued to Holder; 
            Y   =    The number of Shares for which the Purchase Warrant would be issuable upon exercise of this Purchase Warrant in accordance with the terms of this Purchase Warrant if such exercise were by means of a cash exercise rather than a cashless exercise; 

                  A   =    The fair market value of one Share; and 
                  B   =    The Exercise Price. 

The undersigned agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with respect to the calculation shall be resolved by the Company in its sole discretion. 

Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been converted.  The undersigned acknowledges and agrees that the issuance of Shares or, if applicable, a new Purchase Warrant to any person (including any entity) other than the undersigned is subject to the restrictions contained in, and compliance with, Section 3 of the Purchase Warrant. 

Signature 

Signature Guaranteed 

NOTICE: The signature to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange. 

          

Form to be used to assign Purchase Warrant:

ASSIGNMENT

(To be executed by the registered Holder to effect a transfer of the within Purchase Warrant): 

FOR VALUE RECEIVED, __________________ does hereby sell, assign and transfer unto the right to purchase shares of Unique Fabricating, Inc., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant and does hereby authorize the Company to transfer such right on the books of the Company. 

Dated: __________, 202__ 

Signature 

Signature Guaranteed 

NOTICE: The signature to this form must correspond with the name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.Document

INTERCREDITOR AGREEMENT

            This Intercreditor Agreement (“Agreement”) is made this ___ day of October, 2022 by and between Alvin Fund, LLC, a Delaware limited liability company, whose address is 215 West 98th Street, New York, NY 10025 (“Alvin”), and ROBERT TAGLICH, an individual, whose address is 37 Main Street, Cold Spring Harbor, NY 11724 (“Robert”), and MICHAEL and CLAUDIA TAGLICH, individuals in their joint capacity, whose address is 37 Main Street, Cold Spring Harbor, NY 11724 ( collectively, “MC”) (Alvin, Robert and MC are collectively, the “Creditor”) and CITIZENS BANK, NATIONAL ASSOCIATION, a national banking association, in its capacity as Agent for the Lenders under the Loan Agreement (as defined below) (the “Agent”), whose address is 28 State Street, Mail Code: MSW24114, Boston, MA  02109 and UNIQUE FABRICATING NA, INC., a Delaware corporation (“US Borrower”) and UNIQUE-INTASCO CANADA, INC., a corporation organized under the laws of the province of British Columbia (“CA Borrower”, and together with the US Borrower, the “Borrower”), whose address is 800 Standard Parkway, Auburn Hills, MI  48326.

RECITALS:

            Borrower, Agent and Lenders are parties to an Amended and Restated Credit Agreement dated November 8, 2018, as amended (the “Loan Agreement”) pursuant to which Agent and the Lenders party thereto made certain Loans available to Borrower and Borrower remains indebted to the Lenders under the Loan Agreement.  The Loans and Borrower’s obligations under the Loan Agreement and the other Loan Documents are secured by, among other things, a first pledge and security interest in all of the issued and outstanding shares of stock in the US Borrower and the Domestic Subsidiaries and sixty-five (65%) of all the issued and outstanding shares of stock in the CA Borrower and Unique Mexico pursuant to a Pledge Agreement dated April 29, 2016, as affirmed by a Consent and Affirmation of Pledge Agreement dated November 8, 2018 (collectively, the “Pledge Agreement”).

            Borrower defaulted under the terms and conditions of the Loan Agreement. Borrower requested that: (i) Agent and Lenders temporarily forebear from exercising their rights and remedies under the Loan Documents in order to give Borrower adequate time to arrange for refinancing of the Loan.  Agent and Lenders were willing to do so.  Accordingly, Borrower, Agent and Lenders entered into a Forbearance Agreement, dated April 9, 2021, as amended, most recently by an Eleventh Amendment to Forbearance Agreement (the Eleventh Amendment”) of even date herewith (collectively, the “Forbearance Agreement”), pursuant to which Agent and Lenders agreed to temporarily forbear from exercising their rights and remedies on certain terms and conditions.

            Each Creditor is an Affiliate of one or more shareholders of Borrower’s Parent, and on even date herewith has made two loans (the “Creditor Loans”) to US Borrower which are to be secured by: (i) US Borrower’s Employee Retention Credit refund (the “ERC Credit”) available to Borrower under the CARES Act; and (ii) Borrower’s 5% ownership interest in Entrotech, Inc. (the “Entrotech Interest”) and the proceeds thereof.  The terms of the Creditor Loans are described in the documents (the “Creditor Loan Documents”) that are attached hereto as Exhibit A.  Entering into the Creditor Loan Documents is prohibited by the Loan Documents. 

            Accordingly, Borrower has requested that Agent and Lenders: (i) consent to US Borrower entering into the Creditor Loan Documents; and (ii) allow Borrower to grant to Creditor a security interest in the ERC Credit and the Entrotech Interest and the proceeds thereof (the “Creditor Collateral”); and (iii) subordinate Agent’s security interest in the Creditor Collateral to the security interest of Creditor in the Creditor Collateral.  The Agent and Lenders have agreed to do so on the terms and conditions of the Eleventh Amendment.  A precondition to Agent and Lenders entering into the Eleventh Amendment is Agent, Creditor and Borrower entering into this Agreement to establish certain rights and understandings among each other concerning the Loans and the Creditor Loan.

            NOW, THEREFORE, in consideration of the forgoing recitals and the mutual promises and covenants contained herein, Agent, Borrower and Creditor hereby agree as follows:

1.RECITALS.  The foregoing recitals of facts are incorporated into and shall form a part of this Agreement.  Capitalized terms used herein, but not defined herein, shall have the meaning ascribed to them in the Forbearance Agreement and the Loan Agreement, as applicable.

2.DEFINITIONS. The following terms shall have the following meanings:

“Obligations” means any and all indebtedness, liabilities, and obligations of Borrower of every kind, nature and description, whether direct or indirect, absolute or contingent, joint, several, or joint and several, principal or interest, now due or to become due, now existing or later arising, and any and all renewals, extensions, modifications or novations thereof, and including reasonable attorney fees, costs and expenses incurred in the collection of any of the foregoing.

“Lender Debt” means all Obligations of Borrower to Agent and Lenders (or any of them) owing under the Loan Documents.

“Creditor Debt” means all Obligations of Borrower to Creditor owing under the Creditor Loan Documents.

3.CREDITOR’S AGREEMENTS. Creditor agrees that (a) the principal amount of the Creditor Debt is currently owed by Borrower to Creditor, (b) the Creditor Debt is not and will not be represented by any notes or other negotiable instruments, except such notes or other negotiable instruments, if any, as have been marked with a legend satisfactory to Agent giving notice of this Agreement, (c) Borrower and Creditor shall not change the terms of the Creditor Debt reflected on Exhibit A, including without limitation the payment terms of the Creditor Debt, so long as this Agreement remains in effect without the consent of Agent and Majority Lenders, (d) Creditor will not allow or agree to any new Obligations of Borrower without the prior written consent of Agent and Majority Lenders, (e) Creditor has not made or permitted any assignment or transfer of the Creditor Debt and shall not do so as long as this Agreement remains in effect, (f) Creditor has extended the Creditor Debt and entered into this Agreement based on its own independent investigation of (or decision not to investigate) the financial condition of Borrower, and is not relying on any information furnished by Agent or Lenders, (g) Borrower shall not prepay and the Creditor shall not accept prepayment of any portion of 

the Creditor Debt; (h) Creditor shall not accept any payment on the Creditor Debt from and after the occurrence of a Forbearance Termination Event (as defined in the Forbearance Agreement), except as permitted under Section 4(b) below; (i) it will not make any assertion, claim or argument in any action, suit or proceeding of any nature whatsoever in any way challenging the priority, validity or effectiveness of the mortgages, pledges, liens and security interests granted to Agent and Lenders; and (j) no entity other than Borrower or a Guarantor shall be obligated on the Creditor Debt.

4.SUBORDINATION. The Creditor Debt and the payment thereof by Borrower is hereby subordinated and postponed to Borrower’s prior payment and satisfaction in full of the Lender Debt, except to the extent that payment is to be made with proceeds of the Creditor Collateral solely in accordance with the term of section 7 of this Agreement, regardless of whether the Lender Debt or any lien securing the Lender Debt is declared or ruled to be invalid, unenforceable, subordinated, void or not allowed by court of competent jurisdiction and regardless of any action taken or not taken by Lender with respect to any document required to be executed or filed for the perfection of any such lien secured by the Lender Debt.  The Lender Debt shall be fully paid and discharged, with all commitments by Lenders to lend terminated, before Borrower may make or Creditor may accept any payment or other distribution whatsoever on account of the Creditor Debt; provided, however, that Agent agrees that only

a.PIK interest may accrue; and 

b.Borrower may pay the Creditor Debt from and Creditor shall be entitled to receive and accept proceeds of the Creditor Collateral solely in accordance with the term of section 7 of this Agreement.

5.SECURITY INTERESTS SUBORDINATED.  

a.Creditor, notwithstanding the order of attachment or perfection of any security interest(s) of Creditor in the property of Borrower, hereby subordinates to Agent any and all security interests which Creditor now has or in the future may have in any property of Borrower other than security interests in the Creditor Collateral.  Further Creditor shall not take, and represents and warrants that it does not have, any interest in any real or personal property of Borrower other than the Creditor Collateral.  

b.Agent hereby subordinates to Creditor any and all security interests held by Agent which Agent now has or in the future may have in the Creditor Collateral.  Creditor consents to the creation and continuance of all present and future security interests of the Agent in the Creditor Collateral and to the enforcement of those security interests in compliance with this Agreement.

6.PAYMENTS IN VIOLATION OF AGREEMENT. If Creditor receives any payment in violation of this Agreement, whether voluntarily made by Borrower or through the application of any property of Borrower, or otherwise, and whether in cash or otherwise, Creditor shall be liable and accountable to Agent therefor, shall be deemed to have received such payment for the use and benefit of Agent and as Agent’s trustee, shall not 

commingle the same with any other Creditor funds, and shall immediately pay over and deliver such payment to Agent, for application to the Lender Debt. If Creditor after receiving any such payment(s) from Borrower shall fail to immediately pay over and deliver such payment to Agent after Agent’s demand for same, then Creditor agrees that it shall be liable to Agent and Lenders for all of Agent’s and Lender’s cost of collection of any such payment(s) from Creditor, including reasonable attorney fees.

7.ACTION ON CREDITOR DEBT.  Should a default occur under the Creditor Loan Documents, Creditor shall promptly – and in any event within three business days of Creditor being notified by Borrower or providing notice to Borrower of such default  – notify Agent in writing of such occurrence.  Creditor will not: (a) commence any legal proceeding against Borrower or any Guarantor for the collection of the Creditor Debt; or (b) commence any legal proceeding or take any other action for the enforcement or application of any security interest(s) of Creditor in any of the property of Borrower, other than with respect to the Creditor Collateral as permitted under this Section 7.  After one hundred twenty (120) days after Creditor gives written notice to Agent that Borrower has defaulted under the terms of the Creditor Debt, if such default then remains uncured and unwaived, Creditor may exercise any right or remedy solely as to the Creditor Collateral, provided that such exercise does not interfere with Agent’s security interest in any property other than the Creditor Collateral.  Unless and until Agent gives Creditor notice (“Termination Notice”) that the Lender Debt has been paid in full (and all commitments to lend have terminated), any payment or recovery obtained by Creditor other than proceeds of the Creditor Collateral shall be held by Creditor for the benefit of Agent and Creditor shall be liable and accountable to Agent therefor, in accordance with the provisions of this Agreement.

8.EXCULPATION/DRAG ALONG.  

a.Creditor shall not enforce the liability and obligations of Borrower to perform and observe the obligations contained in the Creditor Loan Documents by any action or proceeding wherein a money judgment shall be sought against Borrower, or by any action or proceeding seeking to enable Creditor to realize upon any interest of the Borrower in any property of the Borrower, other than the Creditor Collateral, provided that nothing herein contained shall restrict the initiation or prosecution of any action or proceeding to enable Creditor to preserve or protect its rights or interest to realize upon or with respect to the Creditor Collateral.  

b.Recognizing that Agent by virtue of its security interests in the Collateral and the Pledge Agreement ultimately controls disposition of the operating assets of Borrower, Creditor agrees during the period commencing on the date of this Agreement (the “Standstill Period”), Creditor will not, in any manner, directly or indirectly, initiate, cause or participate in, or take any action which has the effect of interfering with, delaying, or hindering in any material way, Obligors consummation of a Refinancing Transaction in the event that Borrower proposes a Refinancing Transaction pursuant to its Repayment Plan that is acceptable to the Lenders or the sale or other disposition of the Creditor Collateral (or portion thereof) that is acceptable to the Lenders so long as the liens of Creditors in the Creditor Collateral attach to the net proceeds of such Creditor Collateral sale or 

other disposition to be applied in accordance with the payment priority set forth in this Agreement.  Creditor agrees to take such action and execute and deliver on behalf of Creditor such documents and instruments as may be necessary to allow obligors to consummate a Refinancing Transaction or sale or other disposition of the Creditor Collateral.  Agent and Lenders may seek specific performance of these provisions through appropriate action against the Creditor.  

9.INSOLVENCY PROCEEDINGS. This Agreement shall survive and remain in full force and effect in the event of any administration of the property or affairs of Borrower arising from any assignment for the benefit of creditors, bankruptcy, receivership, liquidation or other like proceedings, and no delay, forbearance, or omission by Agent or Lenders  in the exercise of any right or power accruing to it or them upon any default in the performance hereof by the other parties hereto, shall impair such right or power or be construed as a waiver of any such default or acquiescence.

10.CLAIMS IN INSOLVENCY PROCEEDINGS. Except as to identifiable proceeds of Creditor Collateral, Creditor agrees to take all necessary actions to ensure that any payment or transfer of anything of value that would others be, or actually is provided to Creditor in the course of any assignment for the benefit of creditors, bankruptcy, receivership, liquidation, or other similar proceedings involving Borrower and that would otherwise be applied against the Creditor Debt shall be paid directly to Agent for application against the Lender Debt until such time Creditor receives a Termination Notice. Creditor hereby irrevocably appoints Agent its attorney-in-fact to, as Agent deems advisable in its sole discretion, demand, sue for, vote, file claims and take other proceedings in Agent’s own name in its capacity as Agent or in the name of Creditor to insure payment to Agent of all payments and other distributions made on account of the Creditor Debt, but Agent has no obligation to take any such actions.

11.ACTION ON BANK DEBT. Without notice to or the consent of Creditor, Agent may take or refrain from taking any action regarding the Lender Debt that it deems appropriate.

12.NOTICE. Notice when required by this Agreement shall mean a written communication sent by certified or registered mail, or nationally recognized overnight courier, postage prepaid, addressed, in the case of notice to be given Agent, to:

Global Restructuring Group
28 State Street 
Mail Code: MSW24114
Boston, MA  02109
Email:  Seth.McIntyre@citizensbank.com 
                       Attention:  Seth McIntyre, Assistant Vice President

or, in the case of Notice to be given Creditor, to:

c/o Taglich Brothers, Inc. 
                      37 Main Street, 

Cold Spring Harbor, NY 11724
Attn:  Douglas Hailey 
                        hailey@taglichbrothers.com 

Either party may change the address for future notices to be received by it by communicating such change in conformance with the requirements of this paragraph.

13.REMEDIES UPON PAYMENT BY BORROWER. If Borrower or any Credit Party (as defined in the Loan Agreement) shall make payment of any part of the Creditor Debt to Creditor in violation of this Agreement, whether such payment be in cash or otherwise, Agent, at its option and without notice (including any notice to Creditor), may declare a Forbearance Termination Event and all the Lender Debt to be immediately due and payable, notwithstanding the terms and conditions of any Loan Document to the contrary.

14.CONTINUOUS EFFECT. Until Agent delivers a Termination Notice to Creditor, this Agreement shall continue in full force and effect, even though at times Borrower may not be indebted to Agent, and Agent and Lenders may make extensions of credit to Borrower in reliance upon this Agreement. 

15.WAIVER OF NOTICES. Borrower and Creditor each waive (a) notice of acceptance of this Agreement, and (b) demand, presentment, notice of dishonor and protest in the collection of the Lender Debt.

16.BINDING EFFECT. This Agreement shall be binding upon the parties hereto and their respective heirs, executors, administrators, successors, and assigns.

17.CHOICE OF LAW AND MODIFICATION. This Agreement shall be construed in accordance with, and governed by, the laws of the State of Michigan. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the authorized representatives of all parties hereto.

18.COUNTERPARTS; ELECTRONIC SIGNATURE.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery of an executed signature page counterpart hereof by telecopy, emailed .pdf or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart hereof. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include electronic signatures, the electronic association of signatures and records on electronic platforms,  deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, any other similar state laws based on the Uniform Electronic Transactions Act or the Uniform Commercial Code, each as amended, and the parties hereto hereby waive any objection to the contrary, 

provided that (x) nothing herein shall require Agent to accept electronic signature counterparts in any form or format and (y) Agent reserves the right to require, at any time and at its sole discretion, the delivery of manually executed counterpart signature pages to this Agreement or any document signed in connection with this Agreement and the parties hereto agree to promptly deliver such manually executed counterpart signature pages.

19.ACKNOWLEDGMENT.  Borrower joins in this Agreement to acknowledge and agree to the terms of this Agreement.

(Balance of Page Intentionally Blank)

            IN WITNESS WHEREOF, Creditor, Agent and Borrower have executed this Intercreditor Agreement as of the day and year first-above written.

Alvin Fund, LLC, a Delaware limited 
liability company 

By:       _________________________             _________________________________
                                                                        ROBERT TAGLICH
Its:       _________________________            

                        “Alvin”                                                “Robert”

____________________________________
MICHAEL TAGLICH 

____________________________________
CLAUDIA TAGLICH

            “MC”

CITIZENS BANK, National Association, a national                 banking association

By:       ____________________________________
             Seth McIntyre, Assistant Vice President

            “Agent”

UNIQUE FABRICATING NA, INC. 

By:                                                                   
            Byrd Douglas Cain III
Title:    President

UNIQUE-INTASCO CANADA, INC.

By:                                                                   
            Byrd Douglas Cain III
Title:    President

 “Borrower”   

Exhibit A

Creditor Loan Documents

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00350-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00350-of-00352.parquet"}]]