Document:

Exhibit 10.14

 

SECOND AMENDMENT TO NOTE PURCHASE AGREEMENT

 

THIS SECOND AMENDMENT
TO NOTE PURCHASE AGREEMENT (this "Amendment"), by and among UFI ACQUISITION, INC., a Delaware corporation (“UFI
Acquisition”), UNIQUE FABRICATING INCORPORATED, a Delaware corporation (“Unique Fabricating”), UNIQUE
FABRICATING REALTY, LLC, a Michigan limited liability company (“UFR”), UNIQUE FABRICATING SOUTH, INC., a Michigan
corporation (“UFS”), UNIQUE-PRESCOTECH, INC., a Delaware corporation (“Unique-Presco”, and
together with UFI Acquisition, Unique Fabricating, UFR and UFS, collectively, the “Companies”), and THE PENINSULA
FUND V LIMITED PARTNERSHIP, a Delaware limited partnership (the “Purchaser”), is dated and effective as of February
6, 2014 (the “Effective Date”).

 

RECITALS

 

A.           UFI
Acquisition, UFI Merger Sub, Inc., a Delaware corporation (“Merger Sub”) and the Purchaser are parties to that
certain Note Purchase Agreement, dated as of March 18, 2013, as amended by that certain First Amendment to Note Purchase Agreement,
dated as of December 18, 2013, among the Companies (other than Unique-Presco) and the Purchaser (as further amended, restated,
supplemented or otherwise modified from time to time, the "Note Purchase Agreement"), pursuant to which the Purchaser
agreed, subject to the terms and conditions thereof, to purchase certain senior subordinated debt of the Companies.

 

B.           Pursuant
to an Agreement and Plan of Merger, dated as of February 19, 2013, by and among UFI Acquisition, Merger Sub, Unique Fabricating,
and American Capital, Ltd., on March 18, 2013, Merger Sub merged with and into Unique Fabricating.

 

C.           Unique
Fabricating, UFS and UFR are parties to that certain Joinder Agreement, dated as of March 18, 2013, pursuant to which such parties
each (i) became a party, as if an original signatory thereto, to the Note Purchase Agreement and the Senior Subordinated Note (as
defined in the Note Purchase Agreement), and (ii) became jointly and severally liable for all of the Senior Subordinated Obligations
(as defined in the Note Purchase Agreement).

 

D.           Unique-Presco
is a party to that certain Joinder Agreement, dated as of December 18, 2013, pursuant to which such party (i) became a party, as
if an original signatory thereto, to the Note Purchase Agreement and the Senior Subordinated Note, and (ii) became jointly and
severally liable for all of the Senior Subordinated Obligations.

 

E.           
The Companies and the Purchaser now desire to further amend the Note Purchase Agreement on the terms and conditions set forth herein.

 

AGREEMENTS

 

For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and upon fulfillment of the conditions set forth in
Article 4 of this Amendment, the parties agree as follows:

 

    	 

    	 

    

 

ARTICLE 1.

AMENDMENTS

 

Subject to the terms
and conditions set forth in this Amendment, the Purchaser and the Companies hereby agree to amend the Note Purchase Agreement as
follows:

 

1.1         Subsection
6.7 of the Note Purchase Agreement is hereby amended and restated in its entirety to read as follows:

 

6.7         Performance
of Obligations. 

 

The Company
will duly and punctually pay and/or perform, and will cause its Subsidiaries to duly and punctually pay and/or perform, its obligations
under this Agreement, the Senior Loan Documents, the Acquisition Documents, the Prescotech Acquisition Documents, the Chardan Acquisition
Documents and the Other Agreements to which it is a party.

 

1.2         Subsection
7.4 of the Note Purchase Agreement is hereby amended by inserting the following paragraph at the end thereof:

 

Notwithstanding
the foregoing, subject to the terms and conditions set forth in the Chardan Subordination Agreement, the Company may make (and
Chardan may receive) (i) scheduled payments of accrued interest at the current rate of interest set forth in the Chardan Note,
and (ii) principal due and payable upon the maturity of the Chardan Note.

 

1.3         Subsection
7.8 of the Note Purchase Agreement is hereby amended and restated in its entirety to read as follows:

 

7.8         Modification
of Senior Loan Documents/Acquisition Documents. 

 

Neither the Company nor any of
its Subsidiaries will agree or consent to any modification, amendment or waiver of any of the terms or provisions of the Senior
Loan Documents, Acquisition Documents, Prescotech Acquisition Documents, Chardan Acquisition Documents, Certificate of Incorporation
or Bylaws (or other similar organizational documents), in effect on the date hereof, that could reasonably have a Material Adverse
Effect on Purchaser’s rights or obligations hereunder, without Purchaser's prior written consent, which consent shall not
be unreasonably withheld or delayed.

 

1.4           Subsection
11.1(a) of the Note Purchase Agreement is hereby amended by inserting the following defined terms into such Subsection in appropriate
alphabetical order:

 

Chardan. This term means
Chardan, Corp., an Ohio corporation.

 

Chardan Acquisition. This
term means the transactions described in the Chardan Acquisition Agreement, upon the completion of which Unique-Chardan will purchase
and acquire substantially all of the operating assets of Chardan.

 

    	 

    	 

    

 

Chardan Acquisition Agreement.
This term means that certain Asset Purchase Agreement, dated as of February 6, 2014, by and among Unique Fabricating, Unique-Chardan,
as "Buyer," Chardan, as "Seller," and Daniel M. Johns, as "Stockholder".

 

Chardan Acquisition Documents.
This term means the Chardan Acquisition Agreement, the Chardan Note, the Chardan Subordination Agreement and all other documents,
agreements, instruments, and certificates executed and delivered in connection therewith or related thereto. 

 

Chardan Note. This term
means that certain promissory note, dated as of February 6, 2014, made by Unique Fabricating and Unique-Chardan for the benefit
of Chardan, in the original principal amount of Five Hundred Thousand Dollars ($500,000).

 

Chardan Subordination Agreement.
This term means the Subordination Agreement, dated as of February 6, 2014, among Chardan, the Companies, Senior Lender and the
Purchaser, as amended from time to time.

 

Unique-Chardan. This term
means Unique-Chardan, Inc., a Delaware corporation and wholly-owned subsidiary of Unique Fabricating.

 

1.5           The
following defined term in Subsection 11.1(a) of the Note Purchase Agreement is hereby amended and restated in its entirety to read
as follows:

 

Permitted Indebtedness.
This term means (a) any Indebtedness in favor of the Senior Lender under the Senior Loan Agreement and created pursuant thereto,
(b) any Indebtedness in favor of Purchaser under the Note Agreement and/or the Other Agreements and created pursuant thereto, (c)
presently existing or hereafter arising purchase money Indebtedness incurred by the Company to finance the acquisition of capital
assets by the Company, subject to the limitations placed on Capital Expenditures in Section 7.9 hereof, (d) to the extent not covered
in (c) above, Indebtedness incurred by the Company to finance a portion of the purchase price needed to complete the Chardan Acquisition,
as provided in the Chardan Acquisition Documents, (e) indebtedness consisting of the financing of insurance premiums (by grant
to the insurer of right of offset against payment of benefits under the relevant policy) with respect to a $2,000,000 term life
insurance policy on the life of each of John Weinhardt and Tom Tekiele, and (f) the Indebtedness as of the Closing Date, set forth
on Schedule 4.10 hereto. Any Permitted Indebtedness which consists of royalties or other contingent deferred purchase price payments
to sellers in connection with future acquisitions shall be subordinated to the Senior Subordinated Obligations on terms satisfactory
to Purchaser.

 

1.6           Schedule
4.16 (Subsidiaries and Capitalization) and Schedule 4.17 (Current Locations) to the Note Purchase Agreement are hereby amended
and restated in their entirety as set forth on Exhibit A hereto.

 

    	 

    	 

    

 

ARTICLE 2.

CONSENTS

 

2.1           Unique
Fabricating has informed the Purchaser that it desires to (a) enter into the Chardan Acquisition Documents to which it is a party
and consummate the Chardan Acquisition pursuant to the terms and conditions of such documents (the “Chardan Transaction”),
and (b) amend the Senior Loan Documents as provided in that certain Third Amendment to Loan and Security Agreement, dated as of
the Effective Date, between Senior Lender and Unique Fabricating (the “Senior Debt Amendment”), and the documents
contemplated thereby. The Companies have requested that the Purchaser consent to the Chardan Transaction and the Senior Debt Amendment,
and the Purchaser hereby consents to the Chardan Transaction and the Senior Debt Amendment, subject to the satisfaction of all
conditions set forth in Section 4 of this Amendment and the Companies’ other representations, warranties, covenants and obligations
set forth in this Agreement. Further, Purchaser agrees that the Company’s entering into and consummation (as applicable)
of the Chardan Transaction and the Senior Debt Amendment shall not be deemed to be a Default or Event of Default under the Note
Purchase Agreement, including without limitation Sections 7.1, 7.3, 7.4, 7.8 and 8.1 thereof.

 

2.2           The
consents in Section 2.1 shall be strictly limited as stated above and nothing herein shall be construed as a waiver of, a consent
to, or any modification or amendment, or limitation of, any other term or condition of the Note Purchase Agreement or any Other
Agreement or of any right of the Purchaser under the Note Purchase Agreement or the Other Agreements to declare an Event of Default
or to exercise the remedies provided to the Purchaser thereunder in any other circumstances.

 

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES

 

3.1           The
Companies represent and warrant to the Purchaser that: (a) the execution, delivery and performance of this Amendment by the Companies
are within its powers, have been duly authorized by all requisite action on the part of the Companies and are not in contravention
with any law, of the terms of their respective organizational documents, as amended, or any undertaking to which they are a party
or by which they are bound; (b) this Amendment is the legal, valid and binding obligation of the Companies, enforceable against
the Companies in accordance with the terms hereof, except as may be limited by bankruptcy, insolvency, moratorium, reorganization,
fraudulent conveyance, fraudulent transfer, or other laws of general application relating to the enforcement of creditors' rights
and by equitable principles and the availability of equitable remedies; (c) after giving effect to the amendments herein contained,
each of the representations and warranties of the Companies contained in the Note Purchase Agreement are true and correct in all
material respects on and as of the date hereof with the same force and effect as if made on and as of the date hereof, except to
the extent that such representations and warranties specifically relate solely to projections; and (d) except as expressly waived
hereby, no Default or Event of Default exists or has occurred and is continuing on the date hereof.

 

    	 

    	 

    

 

ARTICLE
4.

CONDITIONS OF EFFECTIVENESS

 

This Amendment shall
become effective as of the Effective Date once each of the following conditions has been satisfied or waived by Purchaser in writing:

 

4.1         This
Amendment shall have been duly executed and delivered by the Companies and the Purchaser.

 

4.2         Purchaser
shall have received the following, each in form and substance satisfactory to Purchaser:

 

(a)          Copies
of all resolutions, consents, authorizations and approvals required in connection with the execution, delivery and performance
by the Companies of, or the validity and enforceability of, this Amendment and all other documents, instruments and agreements
anticipated hereby or executed in connection herewith;

 

(b)         Executed
copies of consents to this Amendment and the Chardan Acquisition executed by the Senior Lender, in form and substance satisfactory
to the Purchaser (to the extent not satisfactorily addressed in the Senior Debt Amendment);

 

(c)         Executed
copies of the Senior Debt Amendment and the agreements, documents and instruments executed in connection therewith or contemplated
thereby, in form and substance acceptable to the Purchaser, together with an executed certificate of the President and Chief Executive
Officer of Unique Fabricating certifying that such copies are true, correct and complete;

 

(d)         Executed
copies of the Chardan Acquisition Documents, in form and substance acceptable to the Purchaser, together with an executed certificate
of the President and Chief Executive Officer of Unique Fabricating certifying that such copies are true, correct and complete;

 

(e)         A
Joinder Agreement executed by Unique-Chardan, in form and substance acceptable to Purchaser;

 

(f)          The
Second Amendment to Pledge and Security Agreement and Irrevocable Proxy executed by Unique Fabricating, in form and substance acceptable
to Purchaser;

 

(g)         The
Security Agreement executed by Unique-Chardan, in form and substance acceptable to Purchaser;

 

(h)         The
Second Amendment to Subordination and Intercreditor Agreement executed by the Senior Lender, in form and substance acceptable to
Purchaser;

 

(i)          The
Chardan Subordination Agreement, subordinating the obligations of Unique Fabricating and Unique-Chardan under the Chardan Note
to the Senior Subordinated Obligations, in form and content satisfactory to Purchaser; and

 

    	 

    	 

    

 

(j)          The
Acknowledgment and Consent of Subordinated Creditor, executed by Taglich Private Equity, LLC, in form and substance acceptable
to Purchaser.

 

4.3         The
Purchaser shall have received such other information, documents, agreements, commitments and undertakings as the Purchaser or the
Purchaser's counsel may reasonably request.

 

4.4         The
Companies shall have paid the reasonable fees and expenses of legal counsel to the Purchaser incurred in connection with this Amendment,
together with all past due fees and expenses of Purchaser's counsel in connection with the Note Purchase Agreement and the Other
Agreements.

 

ARTICLE 5.

MISCELLANEOUS

 

5.1         References
in the Note Purchase Agreement or in any note, certificate, instrument or other document to the "Note Purchase Agreement"
shall be deemed to be references to the Note Purchase Agreement as amended hereby and as further amended from time to time.

 

5.2         The
Companies agree to indemnify and hold harmless the Purchaser for the payment of all costs and expenses arising in connection with
this Amendment, including the reasonable fees of counsel to the Purchaser in connection with preparing this Amendment.

 

5.3         The
Companies acknowledge and agree that the Purchaser has fully performed all of its obligations under all documents executed in connection
with the Note Purchase Agreement and the Other Agreements and all actions that have been taken by the Purchaser have been reasonable
and appropriate under the circumstances and within its rights under the Note Purchase Agreement and the Other Agreements and all
other documents executed in connection therewith and otherwise available. Each Company represents and warrants that it is not aware
of any claims or causes of action as of the Effective Date against the Purchaser, and hereby waives all such claims and causes
of action as of the Effective Date.

 

5.4         Except
as expressly amended hereby, the Companies agree that the Note Purchase Agreement, the Other Agreements and all other documents
and agreements executed by the Companies in connection with the Note Purchase Agreement in favor of the Purchaser are ratified
and confirmed and shall remain in force and effect, enforceable against the Companies in accordance with their respective terms,
except as may be limited by bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance, fraudulent transfer, or
other laws of general application relating to the enforcement of creditors' rights and by equitable principles and the availability
of equitable remedies, and that they have no set off, counterclaim or defense with respect to any of the foregoing.

 

5.5         Defined
terms used, but not defined, herein shall have the respective meanings ascribed thereto in the Note Purchase Agreement.

 

5.6         This
Amendment may be signed upon any number of counterparts with the same effect as if the signatures thereto and hereto were upon
the same instrument.

 

    	 

    	 

    

 

5.7         This
Amendment is a contract made under, and shall be governed by and construed in accordance with, the law of the State of Michigan
applicable to contracts made and to be performed entirely within such State and without giving effect to choice of law principles
of such State.

 

[SIGNATURE PAGES FOLLOW]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties have caused this Second Amendment to Note Purchase Agreement to be executed and delivered on the Effective Date.

 

	COMPANIES:	 
	 	 
	UFI ACQUISITION, INC.	 
	 	 
	By:	 	 
	Name: Richard L. Baum, Jr.	 
	Its:       President	 
	 	 	 
	UNIQUE FABRICATING INCORPORATED	 
	 	 
	By:	 	 
	Name: John Weinhardt	 
	Its:      President and Chief Executive Officer	 

 

	UNIQUE FABRICATING REALTY, LLC	 
	 	 	 
	By:	Unique Fabricating Incorporated	 
	Its:	Sole Member	 

 

	 	By:	 	 
	 	Name: John Weinhardt
	 	Its:      President and Chief Executive Officer

 

	UNIQUE FABRICATING SOUTH, INC.	 
	 	 	 
	By:	 	 
	Name: John Weinhardt	 
	Its:      President and Chief Executive Officer	 

 

	UNIQUE-PRESCOTECH, INC.	 
	 	 	 
	By:	 	 
	Name: 	John Weinhardt	 
	Its:	President	 

 

    	 

    	 

    

 

[ADDITIONAL SIGNATURE PAGE FOLLOWS]

 

    	 

    	 

    

 

	PURCHASER:	 
	 	 
	THE PENINSULA FUND V LIMITED PARTNERSHIP	 
	 	 	 	 
	By:	Peninsula Fund V Management L.L.C.	 
	Its:	General Partner	 
	 	 	 	 
	 	By:	Peninsula Capital Partners L.L.C.	 
	 	Its: 	Manager	 
	 	 	 	 
	 	By:	 	 
	 	 	Scott A. Reilly	 
	 	 	President and Chief Investment Officer	 

 

[Second Amendment to Note Purchase Agreement]

 

    	 

    	 

    

 

EXHIBIT A

 

Updated Schedules to Note Purchase
Agreement

 

See Attached.

 

    	 

    	 

    

 

Schedule
4.16

 

Subsidiaries
and Capitalization

 

Subsidiaries

 

UFI Acquisition, Inc. has the following
Subsidiaries:

 

		1.	Unique Fabricating Incorporated: The authorized capital
of Unique Fabricating consists of 100 shares of common stock, of which 100 shares are issued and outstanding.

 

		2.	All Subsidiaries of Unique Fabricating Incorporated.

 

Unique Fabricating Incorporated has the
following Subsidiaries:

 

		3.	Unique Fabricating South, Inc.: The authorized capital
of Unique Fabricating South, Inc. consists of 60,000 shares of common stock, of which 900 shares are issued and outstanding. 
The Company is the owner of record of all issued and outstanding shares.

 

		4.	Unique Fabricating de Mexico, S.A. de C.V.: The authorized
capital of Unique Fabricating de Mexico S.A. de C.V. consists of 50,000 shares of Series A common stock, of which 50,000 shares
are issued and outstanding.  The Company is the owner of record of 49,999 shares, and Unique Fabricating South, Inc. is the
owner of record of one share.

 

		5.	Unique-Prescotech, Inc. The authorized capital of Unique-Prescotech,
Inc. consists of 100 shares of common stock, of which 100 shares are issued and outstanding. Unique Fabricating Incorporated is
the owner of record of all issued and outstanding shares.

 

		6.	Unique-Chardan, Inc. The authorized capital of Unique-Chardan,
Inc. consists of 100 shares of common stock, of which 100 shares are issued and outstanding. Unique Fabricating Incorporated is
the owner of record of all issued and outstanding shares.

 

		7.	Unique Fabricating Realty, LLC: All of the membership
interests are owned by the Company.

 

Unique Fabricating Incorporated owns a
49% membership interest in Diversified Acoustics LLC, a Michigan limited liability company. Diversified Solutions Group, LLC owns
the remaining 51% membership interest. Diversified Acoustics LLC intends to pursue certification as a minority business enterprise
and pursue supply opportunities in the automotive die-cut fabrication business.

 

Unique Fabricating Incorporated owns less
than 10% of the issued and outstanding shares of common stock of Entrotech, Inc., an Ohio corporation (“Entrotech”).
The identity of the other holders of the capital stock of Entrotech is not specifically known by the Target. Entrotech is a provider
of advanced material solutions.

 

    	 

    	 

    

 

Unique Fabricating Realty, LLC owns a 5%
membership interest interest in Joslyn-Collier I LLC, a Michigan limited liability company (“J-C I”). The identity
of the other members of J-C I is not specifically known by the Company. J-C I was formed for the purpose of holding title to the
real property occupied by the Company in Auburn Hills, Michigan.

 

Capitalization

 

See attached Capitalization Chart of the
UFI Acquisition, Inc.

 

See “Subsidiaries” section
above for discussion of the capitalization of Subsidiaries of UFI Acquisition, Inc.

 

Outstanding Agreements Giving Right
to Purchase or Acquire Shares

 

Warrant in favor of Taglich Brothers, Inc.
to purchase 36,656 shares of the common stock of UFI Acquisition, Inc. at a purchase price of $10 per share.

 

Warrant in favor of Peninsula to purchase
9,744 shares of the common stock of UFI Acquisition, Inc. at a purchase price of $10 per share.

 

175,135 options to purchase one (1) share
of UFI Acquisition, Inc. common stock at a purchase price of $10 per share have been or will be granted to employees, directors
and/or consultants of the Company and/or its Subsidiaries under UFI Acquisition Inc.’s 2013 Stock Incentive Plan.

 

    	 

    	 

    

 

Schedule
4.17

 

Current
Locations

 

		(a)	Principal Place of Business and Chief Executive Office

 

800 Standard Parkway

Auburn Hills, Michigan
48326

 

(b through
d)

 

Books and Records Maintained;
Additional Locations of Business and Locations of Assets Held

 

1737 Hillsdale Rd., Lafayette,
GA 30728. – Owned by Unique Fabricating South, Inc.

 

1001 West Oak St., Louisville,
KY 40201. – Owned by Unique-Prescotech, Inc.

 

2000 N. New York Ave., Evansville,
IN 47711. – Owned by Unique-Prescotech, Inc.

 

1124 Haley Rd., Murfreesboro.
TN 37129. – Owned by Unique-Prescotech, Inc.

 

3233 South Zero St., Fort Smith,
AR 72908. – Owned by Unique-Prescotech, Inc.

 

772 Outlook Lane, Chattanooga,
GA 37419. Note: Residential Lease Agreement for Single-Family Dwelling between Unique Fabricating South, Inc., and John and Amy
Eldridge, dated December 2011, for property located at 772 Outlook Lane, Chattanooga, GA 37419. – Leased by Unique Fabricating
South, Inc.

 

552 Jacob Way, Rochester, MI
48307 Note: Apartment Lease Contract between Unique Fabricating Incorporated and Village Green of Rochester, dated August 27, 2012,
for property located at 552 Jacob Way, Rochester, MI 48307. – Leased by Unique Fabricating Incorporated.

 

Av. Hiperion 901, Parque Industrial
Kalos, Guadalupe, Nuevo Léon, México. Note: Lease Contract between Urbanizaciones Gamma S.A. de C.V. and Unique Fabricating
de Mexico, S.A. de C.V., dated December 16, 2010, for property located at Av. Hiperion 901, Parque Industrial Kalos, Guadalupe,
Nuevo Léon, México. – Leased by Unique Fabricating de Mexico, S.A. de C.V.

 

820 Park Avenue, Murfreesboro,
TN 37129. Note: Lease Agreement between Unique-Prescotech, Inc. and Swanson Developments, LP, dated as of November 4, 2013, for
property located at 820 Park Avenue, Murfreesboro, TN 37129. – Leased by Unique-Prescotech, Inc.

 

    	 

    	 

    

 

705 South Union Street, Bryan,
OH 43506. Note: Lease Agreement between Unique-Chardan, Inc. and Chardan Properties, LLC, dated as of February 6, 2014, for property
located at 705 South Union Street, Bryan, OH 43506. – Leased by Unique-Chardan, Inc.

 

935 West Oak Street, Louisville,
KY 40203. Note: Easement Agreement among Unique-Prescotech, Inc., Diversified Designs, Inc. and GML Properties, LLC, dated as of
December 1, 2006, granting a 10 year easement for an annual fee of $1000 for use of the lot at 935 West Oak Street, Louisville,
KY. – Leased by Unique-Prescotech, Inc.

 

1600 Webster Road, Dayton, OH
45404, where certain inventory, valued at approximately $10,000, is held on consignment by Behr America. Neither lease nor owed
by the Company or any Subsidiaries but by a customer of the Unique Fabricating Incorporated.

 

Unique-Prescotech, Inc. keeps
some tangible assets off-site for customer use, including returnable containers used by Rheem Mfg.Exhibit 10.15

 

PLEDGE AND SECURITY AGREEMENT

AND IRREVOCABLE PROXY

 

This Pledge and Security
Agreement and Irrevocable Proxy ("Agreement") is effective as of March 18, 2013, between UFI ACQUISITION, INC.,
a Delaware corporation, whose address is 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808 ("Debtor"), and
THE PENINSULA FUND V LIMITED PARTNERSHIP, a Delaware limited partnership, whose address is 500 Woodward Avenue, Suite 2800,
Detroit, Michigan 48226 ("Secured Party"), who hereby agree as follows:

 

1.          Grant
of Security Interest. To secure the payment and performance of the Secured Obligations (defined in Section 2 below), Debtor
grants to Secured Party a security interest in, and pledges, assigns and transfers to Secured Party, all of Debtor's rights, title
and interests in and to the securities listed on Schedule A attached hereto (the "Pledged Securities"), including any
and all substitutions, replacements, and renewals thereof, all interest, dividends or proceeds therefrom ("Earnings"),
and any and all other funds or property which Debtor is now or may hereafter be entitled to receive therefrom (collectively, the
"Collateral").

 

2.          Obligations
Secured. This Agreement is being made in connection with a certain Note Purchase Agreement, dated the same date hereof, among
Secured Party, Debtor, UFI Merger Sub, Inc., a Delaware corporation (“Merger Sub”), Unique Fabricating Incorporated,
a Delaware corporation ("Unique Fabricating"), as successor by merger to Merger Sub, and such other parties made a party
thereto from time to time (as amended, supplemented, or otherwise modified from time to time) (the “Loan Agreement”),
and shall secure all of the Senior Subordinated Obligations under the Loan Agreement and the Other Agreements (the "Secured
Obligations"). Capitalized terms used but not defined herein shall have the meaning given to such terms in the Loan Agreement.

 

3.          Possession
of the Collateral; Earnings; Right to Pledge. Within seven (7) calendar days of the execution of this Agreement, Debtor shall
deliver the Pledged Securities (with an endorsement on each certificate in the form set forth on Schedule A) to Secured Party and
Secured Party shall, subject to Section 4 below, retain possession of the Collateral until such time as all of the Secured Obligations
have been satisfied in full. All Earnings, if any, shall be held by Secured Party.

 

4.          Withdrawals
Prohibited. Debtor shall have no right to withdraw any portion of the Pledged Securities or the Collateral.

 

5.          Representations
and Warranties. Debtor represents and warrants to Secured Party that: (a) no consent or approval of any third party is necessary
for the valid execution, delivery, and performance of this Agreement by Debtor, (b) Debtor has full right, power, and authority
to enter into and perform this Agreement, and this Agreement constitutes a legally-binding obligation of Debtor, (c) the Collateral
is free and clear of all liens, charges, pledges, claims, security interests or any other encumbrances (collectively, "Liens"),
other than Permitted Liens, and (d) this Agreement creates a valid second priority security interest in the Pledged Securities
and the Collateral in favor of Secured Party.

 

6.          Covenants
of Debtor. Debtor shall (a) keep the Collateral free and clear of all Liens (other than Permitted Liens), (b) pay all taxes,
assessments, or other charges which might result in a Lien against the Collateral, and (c) not sell, transfer or assign any right,
title or interest in or to the Collateral to any person or entity (other than Senior Lender), without the prior written consent
of Secured Party.

 

    	 

    	 

    

  

7.          Irrevocable
Proxy. Subject to the terms, conditions and provisions hereinafter set forth, for so long as any of the Secured Obligations
remain outstanding, Debtor does hereby irrevocably nominate and appoint the Secured Party as its true and lawful proxy, with full
power of substitution, in its name, place and stead, to vote all of the Pledged Securities owned by Debtor and standing in such
Debtor's name, at any meeting of the stockholders of Unique Fabricating, and upon any matter in which the stockholders of Unique
Fabricating are entitled to vote; provided, that, for so long as no Default or Event of Default (as defined in the Loan Agreement)
has occurred or is occurring, Debtor shall be entitled to vote the Pledged Securities owned by Debtor and standing in Debtor's
name with respect to all such corporate matters. Upon the occurrence of a Default or Event of Default, Secured Party shall have
the irrevocable full power and authority, as the true and lawful proxy of the Debtor, to vote in person or by further proxy, the
Pledged Securities at all meetings of the stockholders of Unique Fabricating, or to give written consents in lieu of voting such
Pledged Securities in respect of any and all matters on which such Pledged Securities are entitled to vote, including, without
limitation, the election of directors. During any such period in which the Secured Party shall have the right to exercise voting
powers with respect to the Pledged Securities, the Secured Party shall have the right to waive notice of any meeting of the stockholders
of Unique Fabricating in respect of such Pledged Securities and may exercise any power or perform any act hereunder by an agent
or attorney duly authorized and appointed by it. The irrevocable proxy set forth above is a power coupled with an interest. Secured
Party's exercise of voting rights under this Section 7 shall not constitute and is independent of any other rights in favor of
Secured Party under Section 11 or otherwise under this Agreement or applicable law.

 

8.            Receipt
of Additional Stock Certificates.

 

(a)          In
the event that the Debtor shall receive any shares of Unique Fabricating or any successor or successors thereto issued by way of
dividend, split-up, recapitalization, reorganization, merger, consolidation or any other change or adjustment in respect of the
Pledged Securities held by any of them prior to the payment of the Secured Obligations, Debtor shall hold the stock certificates
representing such additional or changed shares, to the extent that such shares have voting rights (including voting rights contingent
upon the occurrence of specified events), subject to the terms of this Agreement, and the provisions of paragraph 7 above shall
apply thereto.

 

(b)          The
term "Pledged Securities," as used in this Agreement, shall include, in addition to the Pledged Securities owned of record
by Debtor on the date hereof, as indicated on Schedule A, all additional shares of stock or other securities of Unique Fabricating
having power to vote for the election of directors of Unique Fabricating acquired by Debtor pursuant to paragraph 8(a) above.

 

9.            Representations,
Warranties and Covenants. The Debtor hereby represents, warrants and covenants to Secured Party that:

 

(a)          Title.
(i) Debtor presently owns one hundred percent (100%) of the capital stock of Unique Fabricating, all of which is the subject of
this Agreement as of the date hereof; (ii) no other class of stock of Unique Fabricating has been authorized; (iii) neither Debtor
nor any other party holds any options, warrants, or other rights to acquire or purchase any voting securities of Unique Fabricating
or to convert other securities of Unique Fabricating into such voting securities; and (iv) no warrants, options or other rights
to purchase, acquire or convert any securities into voting stock of Unique Fabricating are outstanding.

 

(b)          No
Issuance of Stock. Prior to payment in full of the Secured Obligations, Unique Fabricating shall not, without Secured Party's
prior written consent, issue any common stock or other voting securities (or securities convertible into common stock or such voting
securities).

 

(c)          Existing
Assets. Debtor owns no other assets or property, tangible and intangible, other than the Collateral described herein, and Debtor
shall not acquire any right, title, or interest in any other assets or property, tangible and intangible, beyond the Collateral
described herein, without the Secured Party's prior written consent.

 

10.         Execution
of Documents. Debtor shall execute any documents and take any other actions requested by Secured Party from time to time to
perfect or protect the security interest granted or purported to be granted by this Agreement or to enable Secured Party to exercise
or enforce its rights or remedies under this Agreement.

 

    	2

    	 

    

 

11.         Event
of Default. Upon the occurrence of a Default or Event of Default under the Loan Agreement and/or a breach by Debtor of any
provision of this Agreement, Secured Party may exercise, with respect to the Collateral, all rights and remedies of a secured
party upon default under the Uniform Commercial Code as adopted and set forth in the Michigan Compiled Laws (including without
limitation, Michigan Compiled Laws, Sections 440.9101, et seq.) and all other rights and remedies under this Agreement
or otherwise available to Secured Party. In any action or proceeding to enforce its rights or remedies under this Agreement, Secured
Party shall be entitled forthwith to immediate exclusive possession and control of the Collateral and to receive directly all
payments due or otherwise being made on any of the Collateral, and, upon ex parte application by Secured Party to any court of
competent jurisdiction without notice to Debtor, shall be entitled to an order giving such immediate exclusive possession and
control to Secured Party or, if Secured Party so elects, to an order appointing a receiver for the Collateral and without any
requirement of bond or other security and without any showing that immediate or irreparable injury, loss or damage will result
if such an order is not issued by the court. For purposes of this Agreement, notice to Debtor prior to the date of public sale
of any Collateral or five (5) days prior to the date after which private sale or other disposition of any Collateral will be made
shall constitute reasonable notice of any such sale.

 

12.         Miscellaneous.

 

(a)          Notices.
All notices and other communications under this Agreement to be made to either Secured Party or Debtor shall be in writing and
shall be deemed given when delivered personally, telecopied (which is confirmed electronically), or mailed by certified mail (return
receipt requested) or sent by Federal Express, UPS or other nationally recognized overnight delivery service for overnight delivery
to that party at the address for that party as set forth in the introductory paragraph (or at such other address for such party
as such party shall have specified in notice to the other party).

 

(b)          Governing
Law.  All questions concerning the validity or meaning of this Agreement or relating to the rights and obligations of the parties
with respect to performance under this Agreement shall be construed and resolved under the laws of Michigan.

 

(c)          Severability.
The intention of the parties to this Agreement is to comply fully with all laws and public policies, and this Agreement shall be
construed consistently with all laws and public policies to the extent possible. If and to the extent that any court of competent
jurisdiction determines it is impossible to construe any provision of this Agreement consistently with any law or public policy
and consequently holds that provision to be invalid, such holding shall in no way affect the validity of the other provisions of
this Agreement, which shall remain in full force and effect.

 

(d)          Venue.
The parties to this Agreement hereby designate the Circuit Court of Oakland County, Michigan, as a court of proper jurisdiction
and exclusive venue for any actions or proceedings relating to this Agreement; hereby irrevocably consent to such designation,
jurisdiction, and venue; and hereby waive any objections or defenses relating to jurisdiction or venue with respect to any action
or proceeding initiated in the Oakland County Circuit Court.

 

(e)          Nonwaiver.
No failure by any party to insist upon compliance with any terms of this Agreement or to exercise any option, enforce any right,
or seek any remedy upon any default of any party shall affect or constitute a waiver of the first party's right to insist upon
such strict compliance, exercise that option, enforce that right, or seek that remedy with respect to that default or any prior,
contemporaneous, or subsequent default; nor shall any custom or practice of the parties at variance with any provision of this
Agreement affect, or constitute a waiver of, any party's right to demand strict compliance with the provisions of this Agreement.

 

(f)          No
Third Party Benefit. This Agreement is intended for the exclusive benefit of the parties to this Agreement and their respective
heirs, successors, and assigns, and nothing contained in this Agreement shall be construed as creating any rights or benefits in
or to any third party.

 

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(g)          Jury
Trial Waiver. DEBTOR, AFTER CONSULTING OR HAVING THE OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL, KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY OF THE LOAN DOCUMENTS OR ANY COURSE OF CONDUCT, DEALINGS, STATEMENTS, WHETHER ORAL OR WRITTEN, OR ACTIONS OF
ANY PARTY. DEBTOR SHALL NOT SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED
WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED.

 

(h)          Complete
Agreement. This Agreement (including any exhibits and any documents incorporated into this Agreement by reference) contains
the entire Agreement among the parties and supersedes any prior agreements, negotiations, representations, or discussions among
them with respect to the subject matter of this Agreement. No additions or other changes to this Agreement shall be binding upon
any party unless made in writing and signed by all parties.

 

(i)          Counterparts;
Facsimile Signatures. This Agreement may be executed in multiple counterparts, and all such executed counterparts shall constitute
one original Agreement, binding on all of the parties, whether or not any of the parties have executed the same counterparts and
whether or not the signature pages from different counterparts have been combined, and the signature of any party to any counterpart
shall be deemed to be that party's signature to any other counterpart and may be appended to any other counterpart. A facsimile
signature shall be effective as an original signature.

 

(j)          Captions.
The captions of the various sections of this Agreement are not part of the context of this Agreement, but are only labels to assist
in locating those sections, and shall be ignored in construing this Agreement.

 

(k)          Survival.
All agreements, obligations, warranties and representations under this Agreement shall survive any modifications made by any party
to this Agreement.

 

(l)          Genders
and Numbers. When permitted by the context, each pronoun used in this Agreement includes the same pronoun in other genders
or numbers and each noun used in this Agreement includes the same noun in other numbers.

 

(m)          Successors.
This Agreement shall be binding upon, inure to the benefit of and be enforceable by and against the respective heirs, personal
representatives, successors and assigns of each party to this Agreement.

 

(n)          Cumulative
Effect. This Agreement is intended as additional security to Secured Party and does not supersede, waive or otherwise affect
any other security interests, guarantees or other agreements between Secured Party and Debtor.

 

(o)          Other
Agreements; Conflict. This Agreement is subject to the terms and conditions of that certain Subordination and Intercreditor
Agreement, dated of even date herewith, among Debtor, Unique Fabricating, Senior Lender, Secured Party, and the other parties listed
on the signature pages thereto (as amended, supplemented, or otherwise modified from time to time) (the “Subordination Agreement”).
To the extent there is a conflict between the terms and conditions of this Agreement and the terms and conditions set forth in
(i) the Subordination Agreement, and/or (ii) the Pledge and Security Agreement and Irrevocable Proxy, dated at even date herewith,
between Debtor and Senior Lender (as amended, supplemented, or otherwise modified from time to time) (the “Senior Pledge
Agreement”), the provisions of the Subordination Agreement and/or the Senior Pledge Agreement shall apply.

 

[SIGNATURE PAGE FOLLOWS]

 

    	4

    	 

    

 

	 	DEBTOR:
	 	 
	 	UFI ACQUISITION, INC.,
	 	a Delaware corporation
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	Richard L. Baum, Jr.
	 	 	 
	 	Its:	President

 

	 	SECURED PARTY:
	 	 
	 	THE PENINSULA FUND V LIMITED PARTNERSHIP,
	 	a Delaware limited partnership
	 	 	 
	 	By:	Peninsula Fund V Management L.L.C.
	 	 	Its: General Partner
	 	 	 
	 	By:	Peninsula Capital Partners L.L.C.
	 	 	Its:  Manager

 

	 	By:	 
	 	 	Scott A. Reilly
	 	 	President and Chief Investment Officer

 

[Signature Page to Pledge and Security Agreement
– UFI Acquisition, Inc.]

 

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SCHEDULE A

TO

PLEDGE AND SECURITY AGREEMENT

 

List of Pledged Securities

 

	Security	 	Registered 

Owner	 	Certificate 

No.	 	Percentage of 

Shares/Membership Interests
	1. Capital Stock of Unique Fabricating Incorporated	 	UFI Acquisition, Inc.	 	1	 	100 shares of common stock, which is 100% of all issued and outstanding capital stock of Unique Fabricating Incorporated

 

Form of Endorsement

 

The holder of the shares represented
by this certificate has granted an irrevocable proxy to vote the shares to The Peninsula Fund V Limited Partnership, a Delaware
limited partnership, pursuant to the terms and conditions of a certain Pledge and Security Agreement and Irrevocable Proxy dated
March 18, 2013, a true copy of which is on file with the Secretary of the Corporation.

 

DETROIT 40396-17 1275998v3

 

    	6

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