Document:

EX-10.28

 Exhibit 10.28 

STANDARD LEASE 
 Tenant: KYKLOS BEARING
INTERNATIONAL, INC., a Delaware corporation 
 Address : 2509 HAYES AVENUE, SANDUSKY, OHIO 44870 

Square Feet: 1,321,947     Commencement Date: August 7, 2008 

Term: 25 YEARS              Expiration Date: August 6, 2033 

 Table of Contents 

 

					
	 	  	Page	 
	 1.      Basic Provisions
	  	 	1	  
	 1.1 Parties
	  	 	1	  
	 1.2 Premises
	  	 	1	  
	 1.3 Term
	  	 	1	  
	 1.4 Base Rent
	  	 	1	  
	 1.7 Permitted Use
	  	 	1	  
	 1.8 Exhibits
	  	 	2	  
		
	 2.      Premises, Parking and Common Areas
	  	 	2	  
	 2.1 Letting
	  	 	2	  
	 2.2 Condition and Acceptance
	  	 	2	  
	 2.3 Vehicle Parking
	  	 	2	  
	 2.4 Common Areas - Definition
	  	 	2	  
	 2.5 Common Areas - Tenant’s Rights
	  	 	2	  
	 2.6 Common Areas - Rules and Regulations
	  	 	2	  
	 2.7 Common Areas - Changes
	  	 	3	  
	 2.8 Delphi License
	  	 	3	  
		
	 3.      Term
	  	 	3	  
	 3.1 Term
	  	 	3	  
	 3.2 Possession
	  	 	3	  
		
	 4.      Rent
	  	 	3	  
	 4.1 Base Rent
	  	 	3	  
	 4.2 Additional Rent
	  	 	4	  
	 4.3 Maintenance
	  	 	4	  
		
	 5.      Use
	  	 	4	  
	 5.1 Permitted Use
	  	 	4	  
	 5.2 Hazardous Substances
	  	 	4	  
	 5.3 Tenant’s Compliance with Requirements
	  	 	6	  
	 5.4 Inspection; Compliance with Law
	  	 	6	  
	 5.5 Landlord’s Compliance and Indemnification
	  	 	7	  
		
	 6.      Maintenance, Repairs, Utility Installations, Trade Fixtures and Alterations
	  	 	7	  
	 6.1 Tenant’s Obligations
	  	 	7	  
	 6.2 Utility Installations, Trade Fixtures, Alterations
	  	 	8	  
	 6.3 Ownership, Removal, Surrender, and Restoration
	  	 	9	  
		
	 7.      Insurance, Indemnity
	  	 	9	  
	 7.1 Liability Insurance Carried by Tenant
	  	 	9	  
	 7.3 Property Insurance-Building, Improvements
	  	 	10	  
	 7.4 Tenant’s Insurance
	  	 	10	  
	 7.5 Insurance Policies
	  	 	10	  
	 7.6 Waiver of Subrogation
	  	 	11	  
	 7.7 Indemnity
	  	 	11	  

  
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	 8.      Damage or Destruction
	  	 	12	  
	 8.1 Definitions
	  	 	12	  
	 8.2 Partial Damage - Insured Loss
	  	 	12	  
	 8.3 Partial Damage - Uninsured Loss
	  	 	12	  
	 8.4 Total Destruction
	  	 	12	  
	 8.5 Damage Near End of Term
	  	 	12	  
	 8.6 Abatement of Rent; Tenant’s Remedies
	  	 	12	  
	 8.7 Termination - Advance Payments
	  	 	13	  
		
	 9.      Real Property Taxes
	  	 	13	  
	 9.1 Payment of Taxes
	  	 	13	  
	 9.2 Tenant’s Property Taxes
	  	 	13	  
		
	 10.    Utilities and Services
	  	 	13	  
		
	 11.    Assignment and Subletting
	  	 	14	  
	 11.1 Landlord’s Consent Required
	  	 	14	  
	 11.2 Terms and Conditions Applicable to Assignment
	  	 	14	  
	 11.3 Terms and Conditions Applicable to Subletting
	  	 	15	  
		
	 12.    Default; Remedies
	  	 	15	  
	 12.1 Default
	  	 	15	  
	 12.2 Remedies
	  	 	15	  
	 12.3 Breach by Landlord
	  	 	17	  
		
	 13.    Condemnation
	  	 	18	  
		
	 14.    Brokers’ Fees
	  	 	18	  
		
	 15.    Tenancy Statements
	  	 	19	  
		
	 16.    Landlord’s Liability
	  	 	19	  
		
	 17.    Severability
	  	 	19	  
		
	 18.    Interest on Past-Due Obligations
	  	 	19	  
		
	 19.    Time of Essence
	  	 	19	  
		
	 20.    Rent Defined
	  	 	19	  
		
	 21.    No Prior or other Agreements
	  	 	19	  
		
	 22.    Notices
	  	 	19	  
	 22.1 Notice Requirements
	  	 	19	  
	 22.2 Date of Notice
	  	 	20	  
		
	 23.    Waivers
	  	 	20	  
		
	 24.    Recording
	  	 	20	  
		
	 25.    No Right to Holdover
	  	 	20	  
		
	 26.    Cumulative Remedies
	  	 	21	  
		
	 27.    Binding Effect; Choice of Law
	  	 	21	  
		
	 28.    Subordination and Attornment
	  	 	21	  
	 28.1 Subordination
	  	 	21	  
	 28.2 Attornment
	  	 	21	  

  
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	 29.    Landlord’s Access; Showing Premises; Repairs
	  	 	21	  
		
	 30.    Signs
	  	 	21	  
		
	 31.    Authority
	  	 	21	  
		
	 32.    Offer
	  	 	22	  
		
	 33.    Amendments
	  	 	22	  
		
	 34.    Multiple Parties
	  	 	22	  
		
	 35.    Quiet Possession
	  	 	22	  
		
	 36.    Waiver of Landlord Lien
	  	 	22	  
		
	 37.    Substation Lease Agreement
	  	 	22	  
		
	 38.    Guaranty
	  	 	22	  

  
 iii 

 STANDARD INDUSTRIAL LEASE 

1. Basic Provisions (“Basic Provisions”). 

1.1 Parties: This Lease (“Lease”), dated for reference purposes only, August 7, 2008, is made by and between 2509
HAYES LLC, a Delaware limited liability company (“Landlord”) and KYKLOS BEARING INTERNATIONAL, INC., a Delaware corporation (“Tenant”), (collectively the “Parties”, or individually a
“Party”). 
 1.2 Premises: That certain building containing 1,321,947 rentable square feet (the
“Building”), including all improvements therein, commonly known by the street address of 2509 Hayes Avenue, Sandusky, Ohio, County of Erie with zip code 44870, together with (i) the Common Areas (as defined in Paragraph
2.4 below), (ii) the land upon which the Building and the Common Areas are located as described on Exhibit D attached hereto and incorporated herein by this reference (the “Land”), and (iii) all other
buildings and improvements on such Land, all as outlined on Exhibit A attached hereto (collectively, the “Premises”). 

1.3 Term: Twenty-five (25) years (“Term”), commencing August 7, 2008 (“Commencement Date”)
and ending at midnight on August 6, 2033 (“Expiration Date”), provided that Tenant’s obligation to pay Base Rent shall not commence until the first day of the thirteenth (13th) full month of the Term (the
“Rent Commencement Date”). 
 1.4 Base Rent: Beginning on the Rent Commencement Date, Tenant shall pay base rent
(“Base Rent”) for the Premises in the amount set forth on Exhibit B attached hereto, due and payable in equal monthly installments on the first (1st) day of each month of the Term to Landlord at the address
provided in Section 22.1 below or to such other address as may be specified by Landlord by written notice to Tenant. Any rent (whether Base Rent or additional rent) or other amount due from Tenant to Landlord under this Lease not paid
when due shall incur a late fee of ten percent (10%) of the amount due; provided however, that no such late fee shall be assessed unless Landlord has first provided Tenant with notice of such missed payment and Tenant fails to pay such sum
within five (5) business days following such notice. 
 1.5 Operating Expenses: Tenant will pay all expenses reasonably
necessary to operate the Premises including but not limited to property taxes, insurance, and maintenance of the interior, exterior, roof and structural components of the Building. 

1.6 Security Deposit: None. 

1.7 Permitted Use: Manufacturing, distribution, office and any other lawful purposes. 

  
 1 

 1.8 Exhibits: The Exhibits are as follows, constitute a part of this Lease and are hereby
incorporated by reference: 
 Exhibit A - Premises 

Exhibit B - Base Rent 
 Exhibit C
- Site Plan 
 Exhibit D - Legal Description of Land 

Exhibit E - Guaranty of Lease 

Exhibit F - Second Guaranty 

2. Premises, Parking and Common Areas. 

2.1 Letting. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises, for the term, at the rental, and
upon all of the terms, covenants and conditions set forth in this Lease. Unless otherwise provided herein, any statement of square footage set forth in this Lease, or that may have been used in calculating rental is an approximation which Landlord
and Tenant agree is reasonable and the rental based thereon is not subject to revision whether or not the actual square footage is more or less. 

2.2 Condition and Acceptance. Tenant accepts the Premises as suited for the use intended by Tenant and Landlord shall have no
responsibility or duty to modify same to accommodate Tenant’s use. Tenant’s acceptance thereof is subject to all Applicable Requirements (as defined in Paragraph 6.3 below). Except as may be expressly set forth herein, Landlord has
made no representation or warranty as to the suitability of the Premises for the conduct of Tenant’s business and Tenant waives any implied warranty of suitability. The taking of possession of the Premises shall be conclusive evidence that
Tenant accepts the Premises in good condition and working order. 
 2.3 Vehicle Parking. Tenant shall be entitled to the exclusive
use of the parking areas in the Common Areas designated for parking on the Site Plan of the Premises attached hereto as Exhibit C and incorporated herein by this reference, as well as other Common Areas. 

2.4 Common Areas - Definition. The term “Common Areas” is defined as all areas and facilities located outside the
Building and on the Land, which Common Areas are included in the Premises and are hereby designated for the exclusive use of Tenant and its employees, suppliers, shippers, customers, contractors and invitees, including parking areas, loading and
unloading areas, trash and dumpster areas, roadways, sidewalks, walkways, parkways, driveways and landscaped areas. 
 2.5 Common Areas -
Tenant’s Rights. Landlord hereby grants to Tenant, for the benefit of Tenant and its employees, suppliers, shippers, contractors, customers and invitees (collectively, the “Tenant Group”) during the term of this Lease, the
exclusive right to use the Common Areas as they exist from time to time, subject to any rights, powers, and privileges reserved by Landlord under the terms hereof. 

2.6 Common Areas - Rules and Regulations. Tenant or such other person(s) as Tenant may appoint shall have the exclusive control and
management of the Common Areas, subject to compliance with all applicable legal requirements. 

  
 2 

 2.7 Common Areas - Changes. Landlord shall have no right to make any changes to the Common
Areas, including, without limitation, changes in the location, size, shape and number of driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways or utility
raceways, without the consent of Tenant (not to be unreasonably withheld); however, Landlord may (a) enter into commercially reasonable easement agreements with respect to the Common Areas and/or (b) use the Common Areas while engaged in
making repairs or alterations to the Common Areas which are approved by Tenant as aforesaid as long as none of Landlord’s activities in connection with clauses (a) and (b) above shall have a material adverse effect on
(i) Tenant’s or the Tenant Group’s access to the Premises or the parking available to the Premises, or (ii) Tenant’s operation of its business at the Premises for the Permitted Use. In the event any such material adverse
effect occurs, Tenant’s obligation to pay Base Rent and other charges hereunder shall be abated for the period that such activities of Landlord shall have a material adverse effect as stated above. 

2.8 Delphi License. Landlord acknowledges that pursuant to that certain Transition Services Agreement dated April 30, 2008, by and
between Tenant and Delphi Automotive Systems LLC, a Delaware limited liability company (“Delphi”), Tenant has granted a license (the “Delphi License”) to Delphi to use and occupy a portion of the Premises consisting
of approximately 3,000 rentable square feet on the second floor of the Building, together with certain rights to use the Common Areas. Notwithstanding anything contained herein to the contrary, Landlord hereby consents to the Delphi License;
provided that Tenant shall in no way be relieved of any liability under this Lease with respect to any portion of the Premises that Delphi may use or occupy pursuant to the Delphi License. 

3. Term. 
 3.1 Term.
The Commencement Date, Expiration Date and Term of this Lease are as specified in Paragraph 1.3. 
 3.2 Possession.
Landlord shall deliver possession of the Premises to Tenant on the Commencement Date. 
 4. Rent. 

4.1 Base Rent. Beginning on the Rent Commencement Date, Tenant shall pay Base Rent and other rent charges, as the same may be adjusted
from time to time, to Landlord in lawful money of the United States, without offset or deduction except as expressly set forth in this Lease, for receipt by Landlord on or before the day on which it is due under the terms of this Lease. Base Rent
and all other rent and charges for any period during the Term hereof which is for less than one full month shall be prorated based upon the actual number of days of the month involved. Payment of Base Rent and other charges shall be made to Landlord
at its address stated herein or to such other persons or at such other addresses as Landlord may from time to time designate in writing to Tenant. 

  
 3 

 4.2 Additional Rent. If any existing or future Security Device (as defined in
Section 28.1 below) requires the owner to pay to the mortgagee under such Security Device monthly deposits for Real Property Taxes (as defined in Section 9.1 below) and premiums for the insurance required under such Security
Device, then Tenant shall pay such amounts (as such amounts are determined pursuant to the Security Device) to Landlord as additional rent on the first day of each and every month of the Term, which monthly deposits shall be paid by Landlord to the
mortgagee in accordance with the terms of the Security Device. The payment of deposits shall not limit or alter Tenant’s obligation to pay Real Property Taxes and/or premiums for insurance required under this Lease; provided, however, that said
deposits shall be fully utilized for the payment of Real Property Taxes and/or such insurance premiums. The amount of the deposits shall be re-adjusted annually, on the first day of the month after the tax bills showing the actual amount of the Real
Property Taxes are issued in each year of the Term, to reflect the actual amount of Real Property Taxes and/or insurance premiums. Tenant shall not be entitled to interest on said deposits. 

4.3 Maintenance. Tenant shall, at all times during the entire Term, operate, manage, maintain, repair and replace the Premises
in a lawful, efficient and businesslike manner in accordance with sound property management practices consistent with comparable industrial sites in the Sandusky, Ohio area; provided, however, that Tenant’s obligations under this Paragraph
4.2 shall be subject to the provisions of Paragraphs 2.2, 5, 6, 8 and 13. 
 5. Use. 

5.1 Permitted Use. Tenant shall use and occupy the Premises only for the Permitted Use set forth in Paragraph 1.7. Tenant shall
not use or permit the use of the Premises in a manner that is unlawful, creates waste or a nuisance, violates any Applicable Requirements (as hereinafter defined). 

5.2 Hazardous Substances. 

(a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease shall mean
any product, substance, chemical, material or waste whose presence, nature, quantity and/or intensity of existence, use, manufacture, disposal, transportation, spill, release or effect, either by itself or in combination with other materials
expected to be on the Premises, is regulated or monitored by any governmental authority under any Applicable Requirement. Hazardous Substance shall include, but not be limited to, hydrocarbons, petroleum, gasoline, crude oil or any products or
by-products thereof. Other than any such activities Tenant is engaged in as of the Commencement Date, Tenant shall not engage in any activity in or about the Premises which constitutes a Reportable Use (as hereinafter defined) of Hazardous
Substances without the express prior written consent of Landlord, such consent not to be unreasonably withheld, and compliance in a timely manner (at Tenant’s sole cost and expense) with all Applicable Requirements (as defined in Paragraph
5.3). “Reportable Use” shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires
a permit from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority, and (iii) the presence in, on or about the Premises of a Hazardous Substance with respect to which
any Applicable Requirements require that a notice be given to persons entering or occupying the 

  
 4 

 
Premises or neighboring properties or which if spilled or released would be in quantities sufficient to subject Landlord to liability therefor. Notwithstanding the foregoing, Landlord agrees that
Tenant may use and store certain Hazardous Substances resulting in a Reportable Use in the conduct of Tenant’s business, and Landlord consents to the use of such Hazardous Substances by Tenant, provided Tenant handles, uses, stores, and
disposes of such Hazardous Substances in compliance with all Applicable Requirements. 
 (b) Duty to Inform. If
Tenant knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, or under or about the Premises in violation of Applicable Requirements, Tenant shall immediately give Landlord written notice thereof,
together with a copy of any statement, report, notice, registration, application, permit, business plan, license, claim, action, or proceeding given to, or received from, any governmental authority or private party concerning the presence, spill,
release, discharge of, or exposure to, such Hazardous Substance. Tenant shall not cause or permit any Hazardous Substance to be spilled or released in, on, under or about the Premises (including, without limitation, through the plumbing or sanitary
sewer system) except in accordance with all Applicable Requirements. If Landlord knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, or under or about the Premises in violation of Applicable
Requirements, Landlord shall immediately give Tenant written notice thereof, together with a copy of any statement, report, notice, registration, application, permit, business plan, license, claim, action, or proceeding given to, or received from,
any governmental authority or private party concerning the presence, spill, release, discharge of, or exposure to, such Hazardous Substance including but not limited to all such documents as may be involved in any Reportable Use involving the
Premises. Landlord shall not cause or permit any Hazardous Substance to be spilled or released in, on, under or about the Premises (including, without limitation, through the plumbing or sanitary sewer system) except in accordance with all
Applicable Requirements. 
 (c) Indemnification. Except as may arise from acts or omissions of Landlord or
Landlord’s employees, agents or contractors, Tenant shall indemnify, protect, defend and hold Landlord, its agents, employees, Lenders and ground landlord, if any, harmless from and against any and all damages, liabilities, judgments, costs,
claims, liens, expenses, penalties, fines, loss of permits and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Tenant or Tenant’s agents, employees or
contractors. Tenant’s obligations under this Paragraph 5.2(c) shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Tenant, and the cost of
investigation (including consultants’ and attorneys’ fees and testing), studies, sampling and testing procedures, removal, remediation, restoration and/or abatement thereof, or of any contamination therein involved, in accordance with all
applicable environmental laws and to the satisfaction of Landlord. These indemnification obligations shall survive the expiration or earlier termination of this Lease. No termination, cancellation or release agreement entered into by Landlord and
Tenant shall release Tenant from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Landlord in writing at the time of such agreement. Except as may arise from acts or omissions of Tenant or
Tenant’s employees, agents or contractors, Landlord shall 

  
 5 

 
indemnify, protect, defend and hold Tenant, its agents, employees, and lenders, if any, harmless from and against any and all damages, liabilities, judgments, costs, claims, liens, expenses,
penalties, fines, loss of permits and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Landlord or Landlord’s agents, employees or contractors. Landlord’s
obligations under this Paragraph 5.2(c) shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Landlord, and the cost of investigation (including
consultants’ and attorneys’ fees and testing), studies, sampling and testing procedures, removal, remediation, restoration and/or abatement thereof, or of any contamination therein involved, in accordance with all applicable environmental
laws and to the satisfaction of Tenant. These indemnification obligations shall survive the expiration or earlier termination of this Lease. No termination, cancellation or release agreement entered into by Landlord and Tenant shall release Landlord
from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Tenant in writing at the time of such agreement. 

5.3 Tenant’s Compliance with Requirements. Tenant shall, at Tenant’s sole cost and expense, fully, diligently and in a timely
manner, comply with all “Applicable Requirements”, which for purposes of this Lease shall mean all laws, statutes, codes, rules, regulations, ordinances, directives or permits relating to the Premises (including but not limited to
matters pertaining to (i) industrial hygiene, (ii) environmental conditions on, in, under or about the Premises, including soil and groundwater conditions, and (iii) the use, generation, manufacture, production, installation,
maintenance, removal, transportation, storage, spill, or release of any Hazardous Substance), now in effect or which may hereafter come into effect. Tenant shall notify Landlord in writing (with copies of any documents involved) of any threatened or
actual claim, notice, warning, complaint or report pertaining to or involving failure by Tenant or the Premises to comply with any Applicable Requirements of which Tenant has actual knowledge or receives notification. 

5.4 Inspection; Compliance with Law. Landlord, Landlord’s agents, employees, contractors and designated representatives, and the
holders of any mortgages, deeds of trust or ground leases on the Premises (“Lenders”) shall have the right to enter the Premises at any time in the case of an emergency, and otherwise at reasonable times and upon reasonable prior
notice to Tenant, for the purpose of inspecting the condition of the Premises and for verifying compliance by Tenant with this Lease and all Applicable Requirements (provided that such entry shall not have a material adverse effect on Tenant’s
conduct of its business operations at the Premises), and Landlord shall be entitled to employ experts and/or consultants in connection therewith to advise Landlord with respect to Tenant’s activities, including but not limited to Tenant’s
installation, operation, use, monitoring, maintenance, or removal of any Hazardous Substance on or from the Premises. If a violation of Applicable Requirements caused by Tenant is found to exist (an “Event of Non-compliance”),
Landlord will have the right, but not the obligation, in addition to Landlord’s other remedies available at law and in equity, to enter upon the Premises immediately and take such action as Landlord in its reasonable judgment deems
appropriate to remediate any actual or threatened contamination caused by an Event of Non-compliance. 

  
 6 

 5.5 Landlord’s Compliance and Indemnification. Throughout the Term, Landlord shall
not knowingly cause, permit or allow any Hazardous Substances to be placed, stored, dumped, dispensed, released, discharged, used, sold, transported, or located on or within any portion of the Premises, by itself or its servants, agents, and
employees. Landlord agrees to promptly clean up any Hazardous Substance (other than those permitted above) which are placed in, on or about the Premises by Landlord or its servants, agents and employees and to remediate and remove any such
contamination of the Premises resulting from the acts of Landlord and its servants, agents and employees, at Landlord’s cost and expense, in compliance with all applicable requirements then in effect, at no cost or expense to Tenant. This
Paragraph 5.5 shall survive the termination or expiration of this Lease. 
 6. Maintenance, Repairs, Utility Installations, Trade
Fixtures and Alterations. 
 6.1 Tenant’s Obligations. 

(a) Subject to the provisions of Paragraphs 2.2, 5, 8 and 13, Tenant shall, at Tenant’s sole cost and expense and
at all times, keep the Premises and every part thereof in good order, condition and repair and free from infestation by insects, rodents or other pests (whether or not such portion of the Premises requiring repair or replacement, or the means of
repairing or replacing the same, are reasonably or readily accessible to Tenant, and whether or not the need for such repairs occurs as a result of Tenant’s use, any prior use, the elements or the age of such portion of the Premises),
including, without limiting the generality of the foregoing, all equipment or facilities specifically and exclusively serving the Premises, such as: capital improvements, any telephone and cable facilities; plumbing, heating, air conditioning, gas
and ventilating systems; electrical and lighting systems and facilities (including bulbs and ballasts), boilers, fired or unfired pressure vessels, fire hose connections if within the Premises, fixtures, interior walls and interior surfaces of
exterior walls of the Premises, ceilings, floors, windows, doors, window and door frames, plate glass, skylights, emergency exits and exit lights, fire extinguishers, smoke detectors, sprinkler systems, fire and/or other safety equipment, Trade
Fixtures, Alterations and Tenant Owned Alterations and Utility Installations (each as hereinafter defined). Tenant, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices in compliance with
all Applicable Requirements. Tenant’s obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair.
Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be responsible for (and Landlord will be responsible for) any repair or improvement necessitated by reason of negligence, willful misconduct or by the breach of or
failure to perform any covenants, obligations or agreements of Landlord, its employees or agents under this Lease. 
 (b)
Tenant shall procure and maintain a contract to for the inspection and maintenance of the heating, air conditioning and ventilation system for the Premises. 

  
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 (c) Tenant shall keep in good order, condition and repair the foundations,
exterior surface of exterior walls, structural condition of interior load bearing walls, exterior roof, fire sprinkler and/or standpipe and hose or other automatic fire extinguishing system including fire alarm and/or smoke detection systems and
equipment in the Premises, fire hydrants, parking lots, walkways, parkways, driveways, landscaping, fences, signs and utility systems serving the Premises and all parts thereof; provided, however, Landlord shall be obligated to repair any damage
caused by the negligence or willful misconduct of Landlord or Landlord’s agents, employees or contractors. In the event Tenant, in Landlord’s reasonable discretion, does not effect such required repairs promptly and adequately, Landlord
may, but shall not be required to, make such repairs and Tenant shall reimburse Landlord for the reasonable costs associated with such repairs. Notwithstanding the foregoing, prior to Landlord’s right to make such repairs on Tenant’s
behalf, Landlord must first provide Tenant with written notice detailing the lack of, or inadequacy of, such repairs, and must allow Tenant a reasonable time to perform or correct such repairs (with such reasonable time not to exceed thirty
(30) days). In the event that Tenant has not performed such actions described in Landlord’s written notice within the time period above described, Landlord may then proceed, at its sole option, to perform such actions on Tenant’s
behalf. In addition, if Landlord does so perform such repairs, Landlord must provide Tenant with a written accounting of the reasonable expenses incurred in connection therewith, together with invoices evidencing same. 

(d) If Landlord elects to repair or restore the Premises under the provisions of Paragraph 6.1 and does not complete the
repair or restoration of the Premises within two hundred seventy (270) days after such obligation shall accrue, Tenant may, at any time prior to the completion of such repair or restoration, give written notice to Landlord and to any Lenders of
which Tenant has actual notice of Tenant’s election to terminate this Lease on a date not less than sixty (60) days following the giving of such notice. 

6.2 Utility Installations, Trade Fixtures, Alterations. 

(a) Definitions. The term “Utility Installations” is used in this Lease to refer to all air lines,
power panels, electrical distribution, security and fire protection systems, communications systems, lighting fixtures, ventilating and air conditioning equipment, plumbing, and fencing in, on or about the Premises. The term “Trade
Fixtures” shall mean Tenant’s machinery and equipment which can be removed without materially damaging the Premises. The term “Alterations” shall mean any modification of the improvements on the Premises, other than
Utility Installations or Trade Fixtures. “Tenant-Owned Alterations and/or Utility Installations” are defined as Alterations and/or Utility Installations made by Tenant that are not yet owned by Landlord pursuant to Paragraph
6.3(a). Tenant shall not make nor cause to be made any structural Alterations or Utility Installations in, on, under or about the Premises without Landlord’s prior written consent, such consent not to be unreasonably withheld. Any other
Utility Installations and Alterations may be made by Tenant without Landlord’s consent. 
 (b) Consent. Any
Alterations or Utility Installations that Tenant shall desire to make shall be presented to Landlord in written form with detailed plans, whether or not Landlord’s consent to same is required. Any consent given by Landlord of Tenant’s
plans or drawings means only that Landlord does not find the plans objectionable, and any such consent or approval shall not imply or be deemed to express any representation that the plans or drawings or specifications therein, or the resulting
structures or improvements, 

  
 8 

 
are safe or suitable for any particular purpose or are free from design defects. All such consents given by Landlord shall be deemed conditioned upon: (i) Tenant’s acquiring all
applicable permits required by governmental authorities; and (ii) the compliance by Tenant with all conditions of said permits. All Alterations and Utility Installations made by Tenant during the term of this Lease shall be done in a good
workmanlike manner, with good and sufficient materials, and be in compliance with all Applicable Requirements. 
 (c) Lien
Protection. Tenant shall pay when due all claims for labor or materials furnished or alleged to have been furnished to or for Tenant at or for use on the Premises, which claims are or may be secured by any mechanics’ or materialmen’s
lien against the Premises or any interest therein. If Tenant shall, in good faith, contest the validity of any such lien, claim or demand, then Tenant shall, at its sole expense, defend and protect itself, Landlord and the Premises, against the same
and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof against the Landlord or the Premises. If necessary to prevent any applicable lien from being foreclosed on against the Premises, Tenant
shall furnish a surety bond in an amount equal to the amount of such contested lien claim or demand, indemnifying Landlord against liability for same (or such other amount as may be required by law for the holding of the Premises free from the
effect of such lien or claim). 
 6.3 Ownership, Removal, Surrender, and Restoration. 

(a) Ownership. All Alterations and Utility Installations made to the Premises by Tenant shall be the property of and
owned by Tenant, but considered a part of the Premises. All Tenant-Owned Alterations and Utility Installations not removed from the Premises by Tenant shall, at the expiration or earlier termination of this Lease, become the property of Landlord.

 (b) Surrender/Restoration. Tenant shall surrender the Premises on the Expiration Date or any earlier termination
date, clean and free of debris and in good operating order, condition and state of repair, ordinary wear and tear and casualty and condemnation events excepted. The obligation of Tenant shall include the repair of any damage occasioned by the
installation, maintenance or removal of Tenant’s Trade Fixtures, furnishings, equipment, and Tenant-Owned Alterations and Utility Installations. Tenant’s Trade Fixtures shall remain the property of Tenant and shall be removed by Tenant,
subject to its obligation to repair and restore the Premises per this Lease. 
 7. Insurance, Indemnity. 

7.1 Liability Insurance Carried by Tenant. Tenant shall obtain and keep in force during the term of this Lease a Commercial General
Liability policy of insurance protecting Tenant, Landlord and any Lender(s) whose names have been provided to Tenant in writing (as additional insureds) against claims for bodily injury, personal injury and property damage based upon, involving or
arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage with broad form general liability endorsement in an amount
not 

  
 9 

 
less than $2,000,000.00 per occurrence. The limits of said insurance required by this Lease or as carried by Tenant shall not, however, limit the liability of Tenant nor relieve Tenant of any
obligation hereunder. All insurance to be carried by Tenant shall be primary to and not contributory with any similar insurance carried by Landlord, whose insurance shall be considered excess insurance only. 

7.2 Umbrella Insurance Carried by Tenant. Tenant shall obtain and keep in force during the term of this Lease a Commercial Umbrella
policy of insurance protecting Tenant, Landlord and any Lender(s) whose names have been provided to Tenant in writing (as additional insureds) against claims for bodily injury, personal injury and property damage based upon, involving or arising out
of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage with broad form general liability endorsement in an amount not less
than $5,000,000.00 per occurrence. The limits of said insurance required by this Lease or as carried by Tenant shall not, however, limit the liability of Tenant or relieve Tenant of any obligation hereunder. All insurance to be carried by Tenant
shall be primary to and not contributory with any similar insurance carried by Landlord, whose insurance shall be considered excess insurance only. 

7.3 Property Insurance-Building, Improvements. Tenant shall obtain and keep in force during the term of this Lease a standard all-risk
or special form policy or policies in the name of Tenant, with Landlord as an additional insured, insuring against loss or damage to the Premises in an amount equal to the full replacement value of the Building. Insurance deductibles shall be
maintained at commercially reasonable levels not to exceed $500,000.00. Tenant shall provide Landlord annually with an Accord 25 (certificate of liability) and Accord 28 (evidence of commercial property). Tenant-Owned Alterations and Utility
Installations, Trade Fixtures and Tenant’s personal property shall be insured by Tenant pursuant to Paragraph 7.3. 
 7.4
Tenant’s Insurance. Tenant shall, at Tenant’s sole cost and expense, obtain and maintain in force during the Term of this Lease the following insurance coverage with respect to the insurable losses contemplated by this Paragraph: 

(a) Property Insurance. Standard “all risk” insurance in an amount equal to full replacement cost on
Tenant’s personal property, Trade Fixtures and Tenant-Owned Alterations and Utility Installations including but not limited to carpeting, furnishings, equipment, furniture, inventory, and stock; and Loss of Rent Insurance covering the then
annual rental payments. 
 (b) Worker’s Compensation. Worker’s compensation insurance in the statutorily
required amounts covering all Tenant’s employees working in the Premises. 
 7.5 Insurance Policies. Insurance required
hereunder shall be in companies duly licensed to transact business in the state where the Premises are located, and maintaining during the policy term a “General Policyholders Rating” of at least A-, VIII as set forth in the most current
issue of “Best’s Insurance Guide.” Tenant shall not do or permit to be done anything which shall invalidate the insurance policies referred to in this Paragraph 7. Tenant shall cause to be delivered to Landlord, upon
Landlord’s request, certified copies of, or 

  
 10 

 
certificates evidencing, the existence and amounts of the insurance required under this Paragraph 7. No such policy shall be cancelable or subject to modification except after thirty
(30) days’ prior written notice to Landlord and any such certificates shall so state and also state that Landlord, as holder thereof, may rely upon same. Tenant shall at least thirty (30) days prior to the expiration of such policies,
furnish Landlord with evidence of renewals thereof. 
 7.6 Waiver of Subrogation. Landlord and Tenant shall each have included in all
policies of property insurance required to be carried hereunder, a waiver by the insurer of all right of subrogation against the other in connection with any loss or damage thereby insured against. Landlord and Tenant, to the fullest extent
permitted by law, each waive all right of recovery against the other for and agree to release the other from liability for, loss or damage to the extent such loss or damage to property is covered by valid and collectible insurance in effect at the
time of such loss or damage or would be covered had the applicable party carried the insurance required to be carried hereunder. 
 7.7
Indemnity. Except for Landlord’s negligence and/or intentional misconduct, Tenant shall indemnify, protect, defend and hold harmless Landlord and its agents, partners and Lenders, from and against any and all claims, loss of rents and/or
damages, costs, liens, judgments, penalties, loss of permits, attorneys’ and consultants’ fees, expenses and/or liabilities arising out of, involving, or in connection with any negligent act or omission or intentional misconduct of Tenant,
or Tenant’s employees, agents or contractors, and out of any failure of Tenant in the performance in a timely manner of any obligation on Tenant’s part to be performed under this Lease. The foregoing shall include, but not be limited to,
the defense or pursuit of any claim or any action or proceeding involved therein, and whether or not (in the case of claims made against Landlord) litigated and/or reduced to judgment. In case any action or proceeding be brought against Landlord by
reason of any of the foregoing matters, Tenant upon notice from Landlord shall defend the same at Tenant’s expense and Landlord shall cooperate with Tenant in such defense. Landlord need not have first paid any such claim in order to be so
indemnified. Tenant hereby waives and releases all claims against Landlord and its employees and agents with respect to any acts of third parties, any cause beyond Landlord’s control and any other matters for which Landlord has disclaimed
liability pursuant to the terms of this Lease. 
 Except for Tenant’s negligence and/or intentional misconduct, Landlord shall indemnify, protect,
defend and hold harmless Tenant and its employees, agents, contractors, partners and Lenders, from and against any and all claims, loss of rents and/or damages, costs, liens, judgments, penalties, loss of permits, attorneys’ and
consultants’ fees, expenses and/or liabilities arising out of, involving, or in connection with any negligent act or omission or intentional misconduct of Landlord, or Landlord’s employees, agents or contractors, and out of any default by
Landlord in the performance in a timely manner of any obligation on Landlord’s part to be performed under this Lease. The foregoing shall include, but not be limited to, the defense or pursuit of any claim or any action or proceeding involved
therein, and whether or not (in the case of claims made against Tenant) litigated and/or reduced to judgment. In case any action or proceeding be brought against Tenant by reason of any of the foregoing matters, Landlord upon notice from Tenant
shall defend the same at Landlord’s expense and Tenant shall cooperate with Landlord in such defense. Tenant need not have first paid any such claim in order to be so indemnified. Landlord hereby waives and releases all claims against Tenant
and its employees and agents with respect to any acts of third parties, any cause beyond Tenant’s control and any other matters for which Tenant has disclaimed liability pursuant to the terms of this Lease. 

  
 11 

 8. Damage or Destruction. 

8.1 Definitions. 

(a) “Premises Partial Damage” shall mean damage or destruction to the Building, the repair cost of which
damage or destruction is less than twenty-five percent (25%) of the Value of the Building (as defined in Paragraph 8.1(d)). 

(b) “Premises Total Destruction” shall mean damage or destruction to the Building, the repair cost of which
damage or destruction is twenty-five percent (25%) or more of the Value of the Building. 
 (c) “Insured
Loss” shall mean damage or destruction to the Premises, which was caused by an event covered by the insurance described in Paragraph 7 irrespective of any deductible amounts or coverage limits involved. 

(d) “Value of the Building” shall mean that amount as reasonably determined by Landlord from time to time.

 8.2 Partial Damage - Insured Loss. If Premises Partial Damage that is an Insured Loss occurs, then Tenant shall, at Tenant’s
expense, repair such damage as soon as reasonably practicable and this Lease shall continue in full force and effect. 
 8.3 Partial
Damage - Uninsured Loss. If Premises Partial Damage that is not an Insured Loss occurs, Tenant shall repair such damage as soon as reasonably practicable at Tenant’s expense and this Lease shall continue in full force and effect. 

8.4 Total Destruction. Notwithstanding any other provision hereof, if Premises Total Destruction occurs (including any destruction
required by any authorized public authority), Tenant shall have the option of terminating this Lease at any time within sixty (60) days following the date of such Premises Total Destruction. If Tenant does not elect to terminate this Lease, the
provisions of Paragraphs 8.2 and 8.3 above shall be applicable. 
 8.5 Damage Near End of Term. Notwithstanding
anything contained herein to the contrary, if at any time during the last twelve (12) months of the Term a Premises Total Destruction occurs, or Premises Partial Damage occurs and such damage has a material adverse effect on Tenant’s
ability to use the Premises for the Permitted Use, whether or not an Insured Loss, Tenant may terminate this Lease effective sixty (60) days following the date of occurrence of such damage by giving written notice to Landlord of Tenant’s
election to do so within sixty (60) days after the date of occurrence of such damage. 
 8.6 Abatement of Rent; Tenant’s
Remedies. In the event of Premises Partial Damage or Premises Total Destruction, the Base Rent payable by Tenant hereunder for the period during which such damage or condition, and its repair or restoration, continues, shall be abated in
proportion to the degree to which the Premises are rendered untenantable. 

  
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 8.7 Termination - Advance Payments. Upon termination of this Lease pursuant to this
Paragraph 8, Landlord shall return to Tenant any unearned payment made by Tenant to Landlord. 
 8.8 Unused Insurance
Proceeds. In the event (i) Tenant actually receives insurance proceeds as a result of any damage or destruction described hereinabove; (ii) Tenant is not obligated to repair or restore the Premises in accordance with the terms hereof;
and (iii) Tenant does not repair or restore the Premises, then, such proceeds shall be available first, to any Lenders of which Tenant has actual notice of; second, to the Tenant for Tenant’s property (such property may include, but shall
not be limited to, equipment, machinery or personalty); and third, to the Landlord. 
 9. Real Property Taxes. 

9.1 Payment of Taxes. Tenant shall pay the Real Property Taxes, as defined in Paragraph 9.2(a), applicable to the Premises on or
before the date the Real Property Taxes fall due. To the extent that any bills for Real Property Taxes are delivered to Landlord instead of Tenant, Landlord agrees to promptly provide such bills to Tenant for payment. Tenant shall provide Landlord
with proof of payment of all Real Property Taxes no later than thirty (30) days after such payment is made. Tenant shall have the right to pay under protest any assessment which increases the amount of the Real Property Taxes and to contest any
such assessment subsequent to payment. 
 As used herein, the term “Real Property Taxes” shall include any form of real estate tax or
assessment, general, special, ordinary or extraordinary, or any rental taxes (other than Landlord’s inheritance, personal income or estate taxes) or any rental taxes imposed upon the Premises by any authority having the direct or indirect power
to tax, including any city, state or federal government, or any school, agricultural, sanitary, fire, street, drainage, or other improvement district thereof, levied against any legal or equitable interest of Landlord in the Premises or any portion
thereof. 
 9.2 Tenant’s Property Taxes. Tenant shall pay prior to delinquency all taxes assessed against and levied upon
Tenant-Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Tenant contained or stored in the Premises. 

10. Utilities and Services. Tenant shall pay directly for all utilities and services supplied to and exclusively serving the Premises,
including but not limited to electricity, telephone, security services (if any), gas and cleaning of the Premises, together with any taxes thereon. Notwithstanding the foregoing to the contrary, if any of the aforementioned services are interrupted
for a period of more than five (5) consecutive business days, and a material adverse effect on Tenant’s ability to conduct its business in the Premises results from the absence of such services, then Base Rent shall abate during the period
such service(s) is interrupted and shall continue until such date and such time as such service(s) is re-established. 

  
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 11. Assignment and Subletting. 

11.1 Landlord’s Consent Required. 

(a) Tenant shall not assign all or any part of Tenant’s interest in this Lease without Landlord’s prior written
consent, such consent not to be unreasonably withheld, conditioned or delayed (provided, however, and notwithstanding anything to the contrary contained herein, (a) Tenant shall be permitted to assign this Lease, without the consent of
Landlord, with no less than ten (10) days prior written notice to Landlord, (i) to a corporation or other entity into which Tenant may merge, which Tenant may acquire, or with which Tenant may consolidate, (ii) to any parent or
subsidiary entity of Tenant, or (iii) to a purchaser of substantially all of Tenant’s assets or a controlling interest in the outstanding voting stock or other equitable interests of Tenant) and (b) Tenant shall be permitted to sublet
all or any portion of the Premises from time to time. 
 (b) An assignment of Tenant’s interest in this Lease without
Landlord’s specific prior written consent, except as contemplated above, shall be an Event of Default curable after notice pursuant to Paragraph 12.1. 

11.2 Terms and Conditions Applicable to Assignment 

(a) Regardless of Landlord’s consent, any assignment shall not release Tenant of any obligation hereunder (provided Tenant
continues to exist as a separate legal entity). 
 (b) The consent of Landlord to any assignment shall not constitute a
consent to any subsequent assignment by Tenant or to any subsequent or successive assignment by the assignee. 
 (c) In the
event of any failure of Tenant to perform any obligation under this Lease past the applicable notice and cure period(s), Landlord may proceed directly against Tenant or anyone else responsible for the performance of the Tenant’s obligations
under this Lease without first exhausting Landlord’s remedies against any other person or entity responsible therefor to Landlord. 

(d) Each request for consent to an assignment shall be in writing, accompanied by reasonable information regarding the
financial and operational responsibility of the proposed assignee, including but not limited to the intended use and/or required modification of the Premises, if any. 

(e) Any assignee of this Lease shall, by reason of accepting such assignment, be deemed, for the benefit of Landlord, to have
assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Tenant during the term of said assignment, unless otherwise agreed to by Landlord in writing. 

  
 14 

 11.3 Terms and Conditions Applicable to Subletting. The following terms and conditions
shall apply to any subletting by Tenant of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein: 

(a) In the event of a failure of Tenant to perform any of its obligations under this Lease, Landlord, at its option and without
any obligation to do so, may require any subtenant to attorn to Landlord, in which event Landlord shall undertake the obligations of the Tenant under such sublease from the time of the exercise of said option to the expiration of such sublease. 

(b) No subtenant under a sublease shall further assign or sublet all or any part of the Premises without Landlord’s prior
written consent, such consent not to be unreasonably withheld. 
 12. Default; Remedies. 

12.1 Default. Each of the following shall constitute an “Event of Default” by Tenant under this Lease: 

(a) The failure by Tenant to make any payment of Base Rent, or any other monetary payment required to be made by Tenant hereunder as and when
due and such failure continues for a period of ten (10) days following written notice from Landlord to Tenant. 
 (b) A failure by
Tenant to comply with the terms, covenants, conditions or provisions of this Lease, other than those described in Subparagraphs 12.1(a) or (c), where such failure continues for a period of thirty (30) days after written notice thereof by or on
behalf of Landlord to Tenant; provided, however, that if the nature of Tenant’s failure is such that more than thirty (30) days are reasonably required for its cure, then it shall not be deemed to be an Event of Default under this Lease by
Tenant if Tenant commences such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion. 

(c) The occurrence of any of the following events: (i) the making by Tenant of any general arrangement or assignment for the benefit of
creditors; (ii) Tenant’s becoming a “debtor” as defined in 11 U.S. Code Section 101 or any successor statute thereto (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty
(60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant
within thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where such seizure is not discharged
within thirty (30) days; provided, however, in the event that any provision of this Subparagraph 12.1(c) is contrary to any applicable law, such provision shall be of no force or effect, and shall not affect the validity of the remaining
provisions. 
 12.2 Remedies. If an Event of Default occurs hereunder, Landlord may at its option (but without obligation to do so),
perform the duty or obligation subject to such Event of Default on Tenant’s behalf. The costs and expenses of any such performance by Landlord shall be due and payable by Tenant to Landlord upon invoice therefor together with reasonable
supporting documentation. In an Event of Default under this Lease by Tenant (as defined in Paragraph 12.1), with or without further notice or demand, and without limiting Landlord in the exercise of any right or remedy which Landlord may have
by reason of such Event of Default, Landlord may: 

  
 15 

 (a) Terminate Tenant’s right to possession of the Premises by any lawful
means, in which case this Lease and the term hereof shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant such damages as are caused by
Tenant’s default, including all costs of recovering and reletting the Premises, and Tenant shall remain liable to Landlord for the total amount of Rent and all other charges (which shall be payable by Tenant as and when due under the terms of
this Lease, unless Landlord elects to terminate this Lease in which event such amounts may, at Landlord’s election, be accelerated to be due and payable in full as of the date of default by Tenant and recoverable as damages in a lump sum in
accordance with the terms of this subparagraph (a)) as would have been payable by Tenant hereunder for the remainder of the Lease Term. Should Landlord elect to terminate this Lease, then Landlord may recover from Tenant as damages: (i) the
worth at the time of award of any unpaid rent which had been earned at the time of such termination; plus, (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time
of award exceeds the reasonable rental value of the Premises relative to such period; plus, (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the reasonable
rental value of the Premises relative to such period; plus, (iv) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the
ordinary course of events would be likely to result therefrom, including, but not limited to any costs or expenses incurred by Landlord in maintaining or preserving the Premises after such default and preparing the Premises for reletting to a new
tenant; and (v) at Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by the laws of the state where the Premises are situated. As used in subparagraphs (i),
(ii) and (iii) above, the “worth at the time of award” is computed by discounting such amount using a discount factor equal to the discount rate of the Money Rate Section of the Wall Street Journal in effect on the date of
acceleration, plus two percent (2%). For determining other charges, Landlord shall use such sums, if any, for the year of such termination as the basis for determining the amount which would have been due each year for the remaining portion of the
term had it not been terminated. 
 (b) Continue the Lease without Tenant’s right to possession in effect after an Event
of Default and recover rent as it becomes due; or 
 (c) Without terminating this Lease, and upon prior notice to Tenant,
Landlord may, in Landlord’s own name but as agent for Tenant, peaceably enter into and upon and take possession of the Premises or any part thereof, and, at Landlord’s option, lawfully remove persons and property therefrom, and such
property, if any, may be removed and stored in a warehouse or elsewhere at the cost of, and for the account of, Tenant, all without being deemed guilty of trespass or becoming liable for any loss or damage which may be occasioned thereby unless
caused by the negligence or willful misconduct of Landlord or Landlord’s agents and employees, and Landlord may rent the Premises or 

  
 16 

 
any portion thereof as the agent of Tenant with or without advertisement, and by private negotiations and for any term upon such terms and conditions as Landlord may deem necessary or desirable
in order to relet the Premises. In such event, Landlord shall use commercially reasonable efforts to mitigate its damages. Upon each such reletting, all rentals received by Landlord from such reletting shall be applied: first, to the payment of any
indebtedness (other than Base Rent and any other rent due hereunder) from Tenant to Landlord; second, to the payment of any costs and expenses of such reletting; third, to the payment of Base Rent, additional rent, and other charges and sums then
due and unpaid hereunder; and fourth, the residue, if any, shall be held by Landlord to the extent of and for application in payment of future sums as the same may become due and payable hereunder. In reletting the Premises as aforesaid, Landlord
may grant rent concessions and Tenant shall not be credited therefor. If such rentals received from such reletting shall at any time or from time to time be less than sufficient to pay to Landlord the entire sums then due from Tenant hereunder,
Tenant shall pay any such deficiency to Landlord. Such deficiency shall, at Landlord’s option, be calculated and paid monthly. No such reletting shall be construed as an election by Landlord to terminate this Lease unless a written notice of
such election has been given to Tenant by Landlord. Notwithstanding any such reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for any such previous default provided same has not been cured; or 

(d) Pursue any other remedy now or hereafter available to Landlord at law or in equity. 

The expiration or termination of this Lease and/or the termination of Tenant’s right to possession shall not relieve
Tenant from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof. Efforts by Landlord to mitigate damages caused by an Event of Default under this Lease shall not waive Landlord’s
right to recover damages under this Paragraph 12.2. Acts of maintenance or preservation, efforts to relet the Premises, or the appointment of a receiver to protect the Landlord’s interest under this Lease, shall not constitute a
termination of the Tenant’s right to possession. 
 (e) In an Event of Default or breach by Tenant with respect to its
obligations hereunder, Landlord shall be obligated to use commercially reasonable efforts to mitigate its damages. 
 12.3
Breach by Landlord. If Landlord shall fail to keep or to perform any of its obligations under this Lease with respect to the making of any payment to Tenant or the performance of any other Lease obligation, and upon the continuance of such
failure on Landlord’s part for thirty (30) days (provided such 30-day notice and cure period shall be decreased, as reasonably required, in cases of emergency) after the delivery to Landlord (and any mortgagee of Landlord of which Tenant
has notice) of notice of such default from Tenant (or, in the case of any such failure which cannot reasonably be cured within thirty (30) days but which is curable and providing such default condition does not create an emergency situation,
within such additional period as may be reasonably required by Landlord or mortgagee to cure such failure, provided Landlord or mortgagee has promptly commenced such cure and thereafter diligently prosecutes such cure to completion), then Tenant
shall be entitled to (i) cure such 

  
 17 

 
default of Landlord by performing the relevant obligations of Landlord on Landlord’s behalf, in which case Landlord shall reimburse Tenant within thirty (30) days of receiving an
invoice from Tenant for such costs, for all reasonable costs expended by Tenant in performing such obligations and/or (ii) pursue all other remedies available to Tenant, at law or in equity, as a result of such default. In the event Tenant
proceeds under clause (i) hereinabove and is not reimbursed for its costs within thirty (30) days of its delivery of an invoice to Landlord, Tenant shall be entitled to offset the amount of such unreimbursed costs against the rental of
amounts next due and payable under this Lease. 
 13. Condemnation. If the Premises or any portion thereof are taken under the power
of eminent domain or sold under the threat of the exercise of said power (all of which are herein called “condemnation”), this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession,
whichever first occurs. If more than ten percent (10%) of the floor area of the Premises or the acreage of the Land is so taken, Tenant may, by election to be exercised in writing within ten (10) days after Landlord shall have given Tenant
written notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Tenant does
not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in the same proportion as the rentable floor area of
the Premises taken bears to the total rentable floor area of the Premises (or, if no portion of the Building is taken, by an amount which reflects the applicable reduction in utility of the Premises caused by the condemnation). Tenant acknowledges
that its right to any award for the taking of all or any part of the Premises under the power of eminent domain or any payment made under threat of the exercise of such power shall be subordinated to the rights of Landlord’s mortgagee, whether
such award shall be made as compensation for diminution of value of the leasehold or for the taking of the fee, or as severance damages; provided, however, that Tenant shall be entitled to any compensation applicable to Tenant’s interests in
the Premises including, without limitation, loss of Tenant’s leasehold interest, Tenant’s relocation expenses and/or loss of Tenant’s Trade Fixtures, Tenant’s personal property and Tenant-Owned Alterations and Utility
Installations and that Tenant’s rights to any award, while subordinated to the rights of Landlord’s mortgagee shall not be subordinated to the rights of Landlord. In the event that this Lease is not terminated by reason of such
condemnation, Landlord shall repair any damage to the Premises caused by such condemnation authority and restore same to a complete architectural unit. 

14. Brokers’ Fees. Tenant and Landlord each represent and warrant to the other that it has had no dealings with any person, firm,
broker or finder in connection with the negotiation of this Lease and/or the consummation of the transaction contemplated hereby, and that no broker or other person, firm or entity is entitled to any commission or finder’s fee in connection
with said transaction. Tenant and Landlord do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar
party by reason of any dealings or actions of the indemnifying party, including any costs, expenses, and/or attorneys’ fees reasonably incurred with respect thereto. 

  
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 15. Tenancy Statements. At any time and from time to time, either party, on or before the
date specified in a request made by the other party, which date shall not be earlier than fifteen (15) days from the making of such request, shall execute, acknowledge and deliver to such other party a certificate (the “Tenancy
Statement”) evidencing whether or not: (a) this Lease is in full force and effect; (b) this Lease has been amended in any way; (c) there are any existing defaults hereunder to the knowledge of such party and specifying the
nature of such default, if any; and (d) the date to which rent has been paid. Each Tenancy Statement may be relied on by any prospective purchaser, transferee or sublessee of the Premises or of Landlord’s or Tenant’s interest
hereunder or by any Lender or by any assignee of any such Lender. 
 16. Landlord’s Liability. The term
“Landlord” as used herein shall mean the owner or owners at the time in question of the fee title to the Premises. The obligations and/or covenants in this Lease to be performed by the Landlord shall be binding only upon the
Landlord as hereinabove defined. Landlord’s obligations and liability to Tenant with respect to this Lease shall be limited solely to Landlord’s interest in the Land and Premises, and Landlord shall not have any personal liability
whatsoever with respect to this Lease. 
 17. Severability. The invalidity of any provision of this Lease, as determined by a court
of competent jurisdiction, shall in no way affect the validity of any other provision hereof. 
 18. Interest on Past-Due Obligations.
Any monetary payment due Landlord hereunder, other than late charges, not received by Landlord within ten (10) days following the notice from Landlord that such amount is past due, shall bear interest from the date due at the rate of ten
percent (10%) per annum. 
 19. Time of Essence. Time is of the essence with respect to the performance of all obligations to be
performed or observed by the Parties under this Lease. 
 20. Rent Defined. All monetary obligations of Tenant to Landlord under the
terms of this Lease are deemed to be rent. 
 21. No Prior or other Agreements. This Lease contains all agreements between the
Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. 

22. Notices. 
 22.1
Notice Requirements. All notices required or permitted by this Lease shall be in writing and shall be delivered in person (by hand or by messenger or courier service) or by certified or registered mail or U.S. Postal Service Express Mail or
other nationally recognized overnight courier, with postage prepaid, or by facsimile transmission during normal business hours, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 22. All notices, demands,
consents and approvals which 

  
 19 

 
may or are required to be given by either party to the other hereunder, including any change of a change of address (or addressees) for invoices or payments hereunder, shall be addressed to the
party to be notified at the address for such party specified below and delivered as follows: 
  

			
	 If to Tenant:
	  	Kyklos Bearing International, Inc.
		  	 2509 Hayes Avenue
 Sandusky, Ohio 44807

Attention:     Plant Manager

		
	 If to Landlord:
	  	2509 HAYES LLC
		  	 c/o: Avgeris & Associates, Inc.
 Suite
103

		  	 2500 South Highland Blvd.
 Lombard, Illinois
60148

		  	Attention:
                                         
   
		
	 With a copy to:
	  	Lawrence M. Freedman Esq.
		  	 Ash Anos Freedman & Logan LLC
 Suite
1211

		  	 77 W. Washington Street
 Chicago, Illinois
60602

 22.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall
be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. Notices delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given
twenty-four (24) hours after delivery of the same to the United States Postal Service or courier. If any notice is transmitted by facsimile transmission or similar means, the same shall be deemed served or delivered upon telephone or facsimile
confirmation of receipt of the transmission thereof, provided a copy is also delivered via hand delivery or overnight courier. If notice is deemed received on a Saturday or a Sunday or a legal holiday, it shall be deemed received on the next
business day. 
 23. Waivers. No waiver by either party of a default or breach of any term, covenant or condition hereof by the other
party, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent default or breach by the other party of the same or any other term, covenant or condition hereof. Either party’s consent to, or approval of,
any such act shall not be deemed to render unnecessary the obtaining of such party’s consent to, or approval of, any subsequent or similar act by the other party, or be construed as the basis of an estoppel to enforce the provision or
provisions of this Lease requiring such consent. Regardless of Landlord’s knowledge of a default or breach at the time of accepting rent, the acceptance of rent by Landlord shall not be a waiver of any default or breach by Tenant of any
provision hereof. 
 24. Recording. Upon request by Tenant, Landlord shall execute a Memorandum of Lease in form and substance
reasonably requested by Tenant, which Tenant may record at Tenant’s sole cost and expense. 
 25. No Right to Holdover. Tenant
has no right to retain possession of the Premises or any part thereof beyond the expiration or earlier termination of this Lease. In the event that Tenant holds over in violation of this Paragraph 25 without Landlord’s consent, then the
Base 

  
 20 

 
Rent payable from and after the time of the expiration or earlier termination of this Lease shall be increased to one hundred fifty percent (150%) of the Base Rent applicable during the
month immediately preceding such expiration or earlier termination. Nothing contained herein shall be construed as a consent by Landlord to any holding over by Tenant. 

26. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all
other remedies at law or in equity. 
 27. Binding Effect; Choice of Law. The Lease shall be binding upon the parties hereto, their
personal representatives, successors and assigns and be governed by the laws of the state in which the Premises are located. Any litigation between the parties hereto concerning this Lease shall be initiated in the county in which the Premises are
located. 
 28. Subordination and Attornment. 

28.1 Subordination. As used herein, “Security Device” shall mean any ground lease, mortgage, security deed, or other
hypothecation or security device, now or hereafter placed by Landlord upon the real property of which the Premises are a part. With respect to any Security Device which may constitute a lien upon the Premises during the Term, Tenant agrees that,
subject to and only upon execution by Tenant and the relevant secured party of a subordination, nondisturbance and attornment agreement in form and content reasonably acceptable to Tenant and such secured party, Tenant’s interest in and to this
Lease shall be subordinate to such Security Device. 
 28.2 Attornment. Upon receipt of a subordination, nondisturbance and
attornment agreement in the form described above, executed by such secured party, Tenant agrees to attorn to a Lender or any other party who acquires ownership of the Premises by reason of a foreclosure of a Security Device. 

29. Landlord’s Access; Showing Premises; Repairs. Landlord and Landlord’s agents shall have the right to enter the Premises
at any time, in the case of an emergency, and otherwise at reasonable times and upon reasonable prior notice for the purpose of showing the same to prospective purchasers or lenders, and making such alterations, repairs, improvements or additions to
the Premises as are required by Landlord hereunder, provided that no such entry, alterations, repairs, improvements or additions shall have a material adverse effect on Tenant’s business operations at the Premises or Tenant’s access to the
Premises. If, as a result of such entry, alterations, repairs, improvements or additions, a material adverse effect on Tenant’s business operations or Tenant’s access to the Premises shall occur, all Base Rent and any other amounts due
under this Lease shall abate during the period of such material adverse effect. 
 30. Signs. Tenant may install from time to time
such signs as are reasonably required to identify, advertise and promote Tenant or Tenant’s business so long as such signs comply with Applicable Requirements. The installation of any sign on the Premises by or for Tenant shall be subject to
the provisions of Paragraph 6. 
 31. Authority. If either party hereto is a corporation, trust, limited liability company, or
general or limited partnership, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. If either party is a corporation, trust, limited
liability company, or partnership, such party shall, within thirty (30) days after request by the other party, deliver to the other party evidence satisfactory to the other party of such authority. 

  
 21 

 32. Offer. Preparation of this Lease by either Landlord or Tenant or Landlord’s agent
or Tenant’s agent and submission of same to Tenant or Landlord shall not be deemed an offer to lease. This Lease is not intended to be binding until executed and delivered by all parties hereto. 

33. Amendments. This Lease may be modified only in writing, signed by the parties in interest at the time of the modification. 

34. Multiple Parties. Except as otherwise expressly provided herein, if more than one person or entity is named herein as either
Landlord or Tenant, the obligations of such multiple parties shall be the joint and several responsibility of all persons or entities named herein as such Landlord or Tenant. 

35. Quiet Possession. Upon payment by Tenant of the rent for the Premises and the performance of all of the covenants, conditions and
provisions on Tenant’s part to be observed and performed under this Lease, Tenant shall have quiet possession of the Premises from Landlord for the entire term hereof, without hindrance on the part of Landlord or any other person or persons
lawfully or equitably claiming by, through or under Landlord, subject to all of the provisions of this Lease. 
 36. Waiver of Landlord
Lien. Landlord hereby waives and release all liens, right of distraint or security interests (whether arising by statute or at common law) in all property, chattels or merchandise which may be placed in or on the Premises and also upon all
proceeds of insurance which may accrue to Tenant by reason of damage to or destruction of any such property, chattels or merchandise. 

37. Substation Lease Agreement. Tenant acknowledges that the Premises is subject to that certain Substation Lease Agreement (the
“Substation Lease”) by and between Landlord, as successor-in-interest to Delphi Corporation, and Ohio Edison Company. Tenant hereby agrees that during the Term of this Lease, Tenant shall perform all obligations of Lessee (as such
term is defined in the Substation Lease) under the Substation Lease, including, without limitation, the payment of rent and other sums due thereunder. 

38. Guaranty. KPS Special Situations Fund II (A), L.P., a Delaware limited partnership and KPS Special Situations Fund II, L.P., a
Delaware limited partnership shall, collectively, contemporaneously with Tenant’s execution of the Lease, execute a Guaranty of Lease in the form attached hereto as Exhibit “E” and a Guaranty of Lease in the form attached
hereto as Exhibit “F” (the “Second Guaranty”). Landlord agrees to accept from MC Capital Inc., a Delaware corporation a substitute Guaranty of Lease which shall be in the form of the Second Guaranty. Upon receipt of
the substitute Guaranty of Lease from MC Capital Inc., Landlord shall release the Second Guaranty and the Second Guaranty shall be of no further force or effect. 

  
 22 

 LANDLORD AND TENANT HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND
BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF
LANDLORD AND TENANT WITH RESPECT TO THE PREMISES. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 23 

 The parties hereto have executed this Lease on the dates specified above their respective signatures. 

Executed on: August 1, 2008 
 TENANT 

 

			
	 KYKLOS BEARING INTERNATIONAL, INC.,

a Delaware corporation

		
	By:	 	/s/ Mike Johnson
	Name:	 	Mike Johnson
	Title:	 	CFO

  
 24 

 The parties hereto have executed this Lease on the dates specified above their respective signatures. 

Executed on: August 7, 2008 
 LANDLORD 

2509 HAYES LLC, 

			
	a Delaware limited liability company
		
	By:	 	/s/ Stewart W. Mills
	Name:	 	Stewart W. Mills
	Title:	 	Manager

  
 25 

 EXHIBIT A 

PREMISES 
 [Attached
hereto] 

  
 A-1 

 SEE SURVEY NUMBER 200800225-1 DATED 04/25/2008 

 
 

 

 

 

 

 

 

 

 EXHIBIT B 
  

									
	 Time Period
	  	Annual Base Rent	 	  	Monthly Base Rent
Installment	 
	 Lease Year 1
	  	 	N/A	  	  	 	N/A	  
	 Lease Year 2
	  	$	3,162,500.00	  	  	$	263,541.66	  
	 Lease Year 3
	  	$	3,241,562.50	  	  	$	270,130.21	  
	 Lease Year 4
	  	$	3,322,601.56	  	  	$	276,883.46	  
	 Lease Year 5
	  	$	3,405,666.60	  	  	$	283,805.55	  
	 Lease Year 6
	  	$	3,490,808.27	  	  	$	290,900.69	  
	 Lease Year 7
	  	$	3,578,078.48	  	  	$	298,173.21	  
	 Lease Year 8
	  	$	3,667,530.44	  	  	$	305,627.54	  
	 Lease Year 9
	  	$	3,759,218.70	  	  	$	313,268.23	  
	 Lease Year 10
	  	$	3,853,199.17	  	  	$	321,099.93	  
	 Lease Year 11
	  	$	3,949,529.15	  	  	$	329,127.43	  
	 Lease Year 12
	  	$	4,048,267.38	  	  	$	337,355.62	  
	 Lease Year 13
	  	$	4,149,474.06	  	  	$	345,789.51	  
	 Lease Year 14
	  	$	4,253,210.91	  	  	$	354,434.24	  
	 Lease Year 15
	  	$	4,359,541.18	  	  	$	363,295.10	  
	 Lease Year 16
	  	$	4,468,529.71	  	  	$	372,377.48	  
	 Lease Year 17
	  	$	4,580,242.95	  	  	$	381,686.91	  
	 Lease Year 18
	  	$	4,694,749.02	  	  	$	391,229.09	  
	 Lease Year 19
	  	$	4,812,117.75	  	  	$	401,009.81	  
	 Lease Year 20
	  	$	4,932,420.69	  	  	$	411,035.06	  
	 Lease Year 21
	  	$	5,055,731.21	  	  	$	421,310.93	  
	 Lease Year 22
	  	$	5,182,124.49	  	  	$	431,843.71	  
	 Lease Year 23
	  	$	5,311,677.60	  	  	$	442,639.80	  
	 Lease Year 24
	  	$	5,444,469.54	  	  	$	453,705.80	  
	 Lease Year 25
	  	$	5,580,581.28	  	  	$	465,048.44	  

  
 B-1 

 For purpose of this Exhibit B, a “Lease Year” shall mean a period of twelve
(12) consecutive calendar months. The first full Lease Year shall commence on the Commencement Date and each succeeding Lease Year shall commence upon the anniversary date of the first Lease Year. 

  
 B-2 

 EXHIBIT “B”  

BASE RENT 
 Original Term:

  

													
	YEAR	  	ANNUAL	 	  	MONTHLY	 	  	PSF	 
	 1
	  	$	3,162,500.00	  	  	$	263,541.67	  	  	$	2.39	  
	 2
	  	$	3,241,562.50	  	  	$	270,130.21	  	  	$	2.45	  
	 3
	  	$	3,322,601.56	  	  	$	276,883.46	  	  	$	2.51	  
	 4
	  	$	3,405,666.60	  	  	$	283,805.55	  	  	$	2.58	  
	 5
	  	$	3,490,808.27	  	  	$	290,900.69	  	  	$	2.64	  
	 6
	  	$	3,578,078.47	  	  	$	298,173.21	  	  	$	2.71	  
	 7
	  	$	3,667,530.44	  	  	$	305,627.54	  	  	$	2.77	  
	 8
	  	$	3,759,218.70	  	  	$	313,268.22	  	  	$	2.84	  
	 9
	  	$	3,853,199.16	  	  	$	321,099.93	  	  	$	2.91	  
	 10
	  	$	3,949,529.14	  	  	$	329,127.43	  	  	$	2.99	  
	 11
	  	$	4,048,267.37	  	  	$	337,355.61	  	  	$	3.06	  
	 12
	  	$	4,149,474.06	  	  	$	345,789.50	  	  	$	3.14	  
	 13
	  	$	4,253,210.91	  	  	$	354,434.24	  	  	$	3.22	  
	 14
	  	$	4,359,541.18	  	  	$	363,295.10	  	  	$	3.30	  
	 15
	  	$	4,468,529.71	  	  	$	372,377.48	  	  	$	3.38	  
	 16
	  	$	4,580,242.95	  	  	$	381,686.91	  	  	$	3.46	  
	 17
	  	$	4,694,749.03	  	  	$	391,229.09	  	  	$	3.55	  
	 18
	  	$	4,812,117.75	  	  	$	401,009.81	  	  	$	3.64	  
	 19
	  	$	4,932,420.69	  	  	$	411,035.06	  	  	$	3.73	  
	 20
	  	$	5,055,731.21	  	  	$	421,310.93	  	  	$	3.82	  
	 21
	  	$	5,182,124.49	  	  	$	431,843.71	  	  	$	3.92	  
	 22
	  	$	5,311,677.60	  	  	$	442,639.80	  	  	$	4.02	  
	 23
	  	$	5,444,469.54	  	  	$	453,705.80	  	  	$	4.12	  
	 24
	  	$	5,580,581.28	  	  	$	465,048.44	  	  	$	4.22	  
	 25
	  	$	5,720,095.82	  	  	$	476,674.65	  	  	$	4.33	  

  
 B-1 

 Exhibit C 

SITE PLAN 
 [Attached
hereto] 

  
 C-1 

 SITE PLAN 
  

 

 Exhibit D 

LEGAL DESCRIPTION OF LAND 
 Situated
in the Township of Perkins, County of Erie and State of Ohio: Being that part of the Mitchell 1369 acre tract, so-called, in Section No. Three (3) Township six (6) North, Range Twenty-three (23) west, bounded and described as follows:
Beginning at the intersection of the north line of Perkins Township and the centerline of the Columbus-Sandusky Road of Hayes Avenue, so-called, running thence North 87°11’ west along the north line of Perkins Township, a distance of
3167.00 feet the northeast corner of a 5.65 acre parcel of land conveyed to Scott Perkson by deed dated January 16, 1915 and recorded in Volume 101 of Deeds, Page 152, Erie County Ohio Records said point being 417.6 feet easterly measured along
the north line of Perkins Township from its intersection with the centerline of the Old Railroad Road so-called; thence South 27°38’ west along the east line of said 5.65 acre parcel conveyed to Scott Perkson as aforesaid and parallel with
the centerline of the Old Railroad Road, a distance of 630.83 feet to the north line of an 8.00 acre parcel of land now or formerly owned by Jay K. Schoewe and Helen M. Schoewe; thence south 89°49’ east along the north line of said 8.00
acre parcel now or formerly owned by Jay K. Schoewe and Helen M. Schoewe, a distance of 323.80 feet to the northeast corner thereof; thence along the east line of said 8.0 acre parcel now or formerly owned by Jay K. Schoewe and Helen M. Schoewe;
South 29°11’ west a distance of 318.44 feet; thence South 00°01’ west a distance of 246.70 feet to the north line of a 17.50 acre parcel of land conveyed to Gottleib Epple by deed dated January 7, 1902 and recorded in Volume
71 of Deeds, Page 249, Erie County Ohio Records; thence North 87°36’ west along said last mentioned line same being the south line of said 8.00 acre parcel of land now or formerly owned by Jay K. Schoewe and Helen M. Schoewe, a distance of
853.52 feet to the centerline of the Old Railroad Road, so-called; thence South 27°37’ west along the centerline of said Old Railroad Road, a distance of 550.33 feet, the northwest corner of a 25.00 acre parcel of land conveyed to George
Homegardner and Hiram A. Arnold by deed dated February 24, 1849 and recorded in Volume 7 of Deeds, Page 192, Erie County Ohio Records; thence South 87°13’ east along the north line of said 25.00 acre parcel conveyed to George
Homegardner and Hiram A. Arnold as aforesaid, a distance of 1792.52 feet to the northeast corner thereof; thence South 00°03’ east along the east line of said 25.00 acre parcel conveyed to George Homegardner and Hiram A. Arnold as aforesaid
a distance of 570.00 feet to the north line of a 30.00 acre parcel of land conveyed to H.W. Otto by deed dated December 12, 1913 and recorded in Volume 98 of Deeds, Page 347, Erie County Ohio Records; thence South 86°55’30” east
along the north line of said 30.00 acre parcel conveyed to H.W. Otto as aforesaid, a distance of 1793.18 feet to the centerline of the Columbus-Sandusky Road; thence North 20°52’ east along the centerline of the Columbus-Sandusky Road, a
distance of 2284.38 feet to the place of beginning, containing 145.648 acres more or less according to a survey made by Judson Civil Engineering Co., dated December 5, 1944 and recorded in Volume 11 of Plats, Page 21, Erie County Ohio Records
but subject to all legal highways known as Perkins Avenue, Columbus-Sandusky Road or Hayes Avenue and Old Railroad Road. 

  
 D-1 

 EXCEPTING THEREFROM a 10.0182 acre parcel as conveyed to Ohio Edison Company by deed dated
September 7, 1966 and recorded in Volume 369 of Deeds, Page 261, and described as follows: 
 Situated in the Township of Perkins,
County of Erie, and State of Ohio: Being that part of the Mitchell 1369 Acre Tract in Section 3, as follows: 
 Beginning at an iron pin
monument in the center line of Old Railroad Road, South 27°37’ West, 17.57 feet from its intersection with the North line of Perkins Township, the same point of beginning at a Southwest corner of lands now owned by General Motors
Corporation; thence South 87°13’ East, along said General Motors Corporation South line, the same being the Northerly line of lands nor or formerly owned by Roy Homegardner and Louis Fieg, a distance of 985.00 feet to the Easterly line of
the Ohio Edison Company easement for transmission lines, thence North 2°58’30” East, along last mentioned line, a distance of 504.49 feet to a Northerly line of General Motors Corporation lands; thence North 87°36’ West, along
last mentioned line, a distance of 755.58 feet to the center line of Old Railroad Road; thence South 27°37’ West, along the center line of Old Railroad Road, a distance of 550.33 feet to the place of beginning and containing 10.0182 acres,
more or less. 
 ALSO EXCEPTING an 0.0034 acre parcel as conveyed to Board of County Commissioners of Erie County Ohio by deed dated
September 10, 1975 and recorded in Volume 445 of Deeds, Page 489 and described as follows: 
 Situate in the township of Perkins, County
of Erie and State of Ohio, and in Section 3, Town 6 North, Range 23 West, and bounded and described as follows: Being a parcel of land lying on the right side of the centerline of a survey, made by the Department of Highways, and recorded in
Book 14, Pages 99 and 100, of the records of Erie County and being located within the following described points in the boundary thereof; Beginning at a monument in the centerline of said survey being Station 171+22.08 Perkins Avenue and centerline
Station 10+00.00 Hayes Avenue; Thence along said centerline of Hayes Avenue South 16°41’41” West a distance of 63.07 feet to a point in said centerline of Hayes Avenue being 60.00 feet right of Station 171+02.67; Thence along a line
being parallel to said centerline of Perkins Avenue, South 88°44’34” West a distance of 52.56 feet to a point in the intersection of the proposed southerly right-of-way line of Perkins Avenue and the existing westerly right-of-way line
of Hayes Avenue; being 60.00 feet right of Station 170+50.11; thence along said proposed Southerly right-of-way line North 46°24’46” West a distance of 21.27 feet to a point in the existing South right-of-way line of Perkins Avenue
being 45.00 feet right of Station 170+35.00; thence along a line being perpendicular to said existing South right-of-way North 01°15’26” West a distance of 45.00 feet to a point in the centerline of survey being Station 170+35+00;
Thence along said centerline of survey North 88°44’34” East a distance of 87.08 feet to the place of beginning. 

  
 D-2 

 ALSO EXCEPTING an 0.104 acre parcel as conveyed to Board of County Commissioners of Erie County, Ohio by
deed dated September 10, 1975 and recorded in Volume 445 of Deeds, Page 494 and described as follows: 
 Situated in the township of
Perkins, County of Erie, State of Ohio, and in Section 3, Town 6 North, Range 23 West, and bounded and described as follows: 
 Being a
parcel of land lying on the right side of the centerline of a survey, made by the Department of Highways, and recorded in Book 14, Pages 99 and 100, of the records of Erie County and being located within the following described points in the
Boundary thereof: Beginning, for reference, at a monument in the centerline of said survey being Station 158.18.80; thence along said centerline of survey North 88°44’34” East a distance of 71.20 feet to a point in said centerline of
survey being Station 158+90.00 and also being the True Place of Beginning; Thence along a line being perpendicular to said centerline of survey South 01°15’26” East a distance of 45.00 feet to a point in the intersection of the
existing South right-of-way line of Perkins Avenue and the proposed southerly right-of-way line of Perkins Avenue being 45.00 feet right of Station 158+90.00; thence along said proposed southerly right-of-way line for the following four
(4) courses and distances: 
  

	 	(1)	South 57°46’45” West a distance of 29.16 feet to an angle point being 60.00 feet right of Station 158+65.00; 

  

	 	(2)	South 01°15’26” East a distance of 35.00 feet to an angle point being 95.00 feet right of Station 158+65.00; 

  

	 	(3)	South 88°44’34” East a distance of 80.00 feet to an angle point being 95.00 feet right of Station 157+85.00; 

  

	 	(4)	North 17°57’23” West a distance of 52.20 feet to a point in said existing south right-of-way line of Perkins Avenue being 45.00 feet right of Station 157+70.00; Thence along a line being perpendicular to
said existing right-of-way line North 01°15’26” West a distance of 45.00 feet to a point in said centerline of survey being Station 157+70.00; thence along said centerline of survey North 88°44’34” East a distance of
120.00 feet to the True Place of Beginning. 

 ALSO EXCEPTING a 5.0541 acre parcel as conveyed to Perkins IV Corner Ltd., by deed dated
June 4, 2003 and recorded as Erie County Recording Number 200310728 and described as follows: 
 Situated in the Township of Perkins,
County of Erie and State of Ohio and being part of a 113.6034 acre parcel deeded to Delphi Automotive Systems LLC as recorded in RN9901322, also being part of the Mitchell 1.369 acre tract, Section 3, Township 6 North, Range 23 West, and being
more particularly described as follows: Beginning at an iron pipe found in a monument box at the intersection of the centerline of Hayes Avenue (State Route 4, 80 feet in width) and Perkins Avenue (County Road 5, 80 feet in width) said point being
the true point of beginning of the herein described parcel; thence South 16°50’45” west with the centerline of said Hayes Avenue and the East line of said 133.6034 acre parcel, a distance of 597.42 feet to a PK nail set; thence
crossing said 133.6034 acre parcel with the following six (6) courses: 
  

	 	(1)	North 73°09’15” west, a distance of 50.00 feet to an iron pin set, said point on the west right-of-way of Hayes Avenue; 

  
 D-3 

	 	(2)	With a non-tangent curve to the left having a radius of 20.00 feet, central angle of 106°56’55”, arc length of 37.33 feet, chord bearing North 36°37’43” west and distance of 32.14 feet to an
iron pin set; 

  

	 	(3)	South 89°53’50” west, a distance of 142.47 feet to an iron pin set; 

  

	 	(4)	North 01°15’26” west, a distance of 273.23 feet to an iron pin set; 

  

	 	(5)	South 88°44’34” west, with a line parallel to and 250 feet south as measured at right angles to the centerline of said Perkins Avenue, a distance of 225.00 feet to an iron pin set; 

 

	 	(6)	North 01°15’26” west, a distance of 250.00 feet to a PK nail set, said point being on the centerline of said Perkins Avenue, passing an iron pin set at a distance of 205.00 feet on the south right-of-way
line of said Perkins Avenue also being the North 88°44’34” east, a distance of 684.12 feet from an iron pipe found in a monument box at the centerline of Camp Street; 

Thence North 88°44’34” east with the centerline of said Perkins Avenue also being the north line of said 133.6034 acre parcel, a
distance of 619.21 feet to an iron pin found; said point being the true point of beginning of the herein described parcel containing 5.0541 acres (220,160 SF), more or less. 

CONTAINING EXCLUSIVE OF SAID EXCEPTIONS, 128.5493 acres more or less, but subject to all legal highways. 

  
 D-4 

 Exhibit E 

GUARANTY OF LEASE 

THIS GUARANTY OF LEASE (this “Guaranty”) is given as of the 7th day of August, 2008, by KPS Special Situations Fund II (A),
L.P., a Delaware limited partnership, and KPS Special Situations Fund II, L.P., a Delaware limited partnership (collectively, “Guarantor”) to 2509 HAYES LLC, a Delaware limited liability company (“Landlord”). 

As an inducement to Landlord to enter into that certain Lease (the “Lease”) dated as of August 7, 2008 between Landlord
and Kyklos Bearing International, Inc., a Delaware corporation (“Tenant”) and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor agrees as follows: 

1. Definitions. All capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the
Lease. 
 2. Guaranty. Guarantor hereby unconditionally, and jointly and severally, guarantees to Landlord, subject to the
terms of this Guaranty and to the limitations set forth herein, the full, prompt and complete payment of ninety-three and one-half percent (93.5%) of the first four and one-half (4.5) years of Base Rent due and payable by Tenant under the
Lease, which is an amount equal to $10,686,580.03 (the “Guaranteed Rent”). The total amount of Base Rent payable by Tenant during the first four and one-half (4.5) years of the Term is $11,429,497.36. The Guaranteed Rent shall
be reduced in accordance with the provisions of Section 3 of this Guaranty. If Tenant fails to pay any portion of the Guaranteed Rent, as same becomes due and payable pursuant to the terms of the Lease, Guarantor shall pay such portion
of Guaranteed Rent within thirty (30) days after Guarantor’s receipt of written notice of Tenant’s default under the Lease from Landlord. Guarantor waives any right to require Landlord to proceed first against Tenant or to exhaust any
remedy Landlord may have against Tenant under the Lease or with respect to any security granted by Tenant under the Lease before proceeding against Guarantor. 

3. Reduction of Guaranteed Rent. Notwithstanding anything to the contrary contained herein, the total amount of the Guaranteed
Rent guarantied under this Guaranty shall be capped at $10,686,580.03, which amount represents 93.5% of the total amount of Base Rent due pursuant to the Lease for the first four and one-half (4.5) years of the Term. Provided no Event of
Default has occurred and is continuing under the Lease, then after the first three (3) months of payment of Base Rent by Tenant pursuant to the Lease (beginning on the Rent Commencement Date), the Guaranteed Rent shall be automatically reduced
by an amount equal to 93.5% of Base Rent due and payable for the first six (6) months of the Lease after the Rent Commencement Date (i.e., if no Event of Default has occurred and is continuing and Tenant has paid Base Rent in
accordance with the Lease for the first three (3) months of the Lease after the Rent Commencement Date, at the end of such three (3) month period, the Guaranteed Rent shall be automatically reduced by $1,478,468.75, which amount represents
93.5% of the Base Rent due during months thirteen (13) through eighteen (18) of the Term). Thereafter, for each subsequent six (6) month period of the Lease, provided no Event of Default has occurred and is continuing under the Lease
during the applicable six (6) month period, then for each six (6) month period of the Term, the Guaranteed Rent shall be automatically reduced by 93.5% of the 

  
 E-1 

 
total amount of Base Rent paid under the Lease for such six (6) month period. For example, if after the fourth six (6) month period of the Term, no Event of Default has occurred and is
continuing, the Guaranteed Rent shall be automatically reduced by $1,478,468.75, which amount represents 93.50% of the Base Rent due during months nineteen (19) through twenty-four (24) of the Term; likewise, if after the fifth six
(6) month period of the Term, no Event of Default has occurred and is continuing, the Guaranteed Rent shall be automatically reduced by $1,535,430.47, which amount represents 93.5% of the Base Rent due during months twenty-five
(25) through thirty (30) of the Term, and so on. In the event the Base Rent payable in a given six (6) month period equals an amount greater than the amount remaining as Guaranteed Rent, the Guaranteed Rent shall be reduced by such
remaining amount such that the Guaranteed Rent shall be reduced to zero dollars ($0) and this Guaranty shall automatically terminate. 
 4.
Right to Assert Defenses. 
 A. Except as provided in subparagraph (B) of this Section, Guarantor shall have the benefit
of and shall be entitled to assert with respect to its obligations hereunder any and all rights, claims, counterclaims, offsets and defenses available to Tenant with respect to the Guaranteed Rent or which Tenant is otherwise entitled to assert
against Landlord. 
 B. The duties and obligations of Guarantor hereunder shall not be affected by, and Guarantor hereby waives any defense
based on, the Tenant’s becoming insolvent or being adjudicated a bankrupt, or filing a petition for reorganization, liquidation, or for the adjustment of debts or for similar relief under any present or future provision of the Bankruptcy Code,
or the issuance by a court of an order for relief in the case of a petition being filed by a creditor or creditors of Tenant, or the seeking by Tenant of a judicial readjustment of the rights of its creditors under any present or future federal or
state law, or the appointment of a receiver or trustee of all or part of Tenant’s property and assets by any state or federal court. 

5. Waiver. Guarantor hereby waives notice of acceptance of this Guaranty and hereby waives notice of any amendment of any
Guaranteed Rent (including any amendment of the Lease) and the granting of any indulgence or extension of time to Tenant to perform under the Lease. Guarantor hereby also waives any and all other notices which by law or under the terms and
provisions of the Lease are required to be given to Tenant, any demand for or notice of default in the payment of any sums payable by Tenant under the Lease or in the performance of all and singular the terms, covenants, conditions and provisions in
the Lease required to be performed by Tenant, except as specifically set forth in Section 1 hereof. Guarantor shall not be liable for modification, amendment, change or extension of any of the terms, covenants or conditions of the Lease
which Tenant (which term shall include, without limitation, a trustee in bankruptcy) and Landlord may hereafter make without Guarantor’s written consent. 

6. Default of Tenant. If because of Tenant’s default, the Lease is terminated, then Landlord shall notify Guarantor thereof
and if Guarantor would otherwise have continuing liability to Landlord hereunder, then at Guarantor’s sole option upon written notice to Landlord to be delivered within ten (10) business days of receipt of notice that the Lease has been
terminated, Landlord shall enter into a new lease with Guarantor (or an affiliate of Guarantor other than Tenant) for the balance of the term of the Lease (including option periods), on the same terms as are set forth in the Lease, and such new
lease shall continue as a direct lease 

  
 E-2 

 
between Landlord and Guarantor or its affiliate (as tenant). As a condition of Landlord’s obligation to enter into the new lease, Guarantor shall cure all monetary defaults, and other
defaults capable of being cured, and shall reimburse Landlord for any costs incurred by Landlord in connection with such default, including reasonable attorneys’ fees and court costs. 

7. Notices. All notices. consents, requests and approvals (collectively, “Notices”) required or permitted
hereunder shall only be effective if in writing. All Notices shall be sent by Federal Express, Airborne or similar express courier which delivers only upon signed receipt of the addressee, by facsimile or by certified mail, with return receipt
requested. Notices to Guarantor shall be sent to [KPS Capital Partners, L.P., 485 Lexington Avenue, 31st Floor, New York, NY 10017], marked for the attention of [Stephen Hoey, Chief Financial Officer], with a copy to [Jenner & Block LLP,
330 North Wabash Avenue, Chicago, Illinois 60611], marked for the attention of [Edward Neveril] or to such other addresses as Guarantor may later designate by notice to Landlord. All notices to Landlord shall be sent to the notice address set forth
in the Lease, or to such other address as Landlord may later designate by notice to Guarantor. All notices shall be effective upon the date of receipt by the addressee thereof as shown on the return or courier receipt of the notice, on the facsimile
confirmation page, or the certified mail receipt, as applicable. 
 8. Separate Actions. The agreements, obligations,
warranties and representations of Guarantor hereunder are independent of the obligations of Tenant. In the event of any default hereunder, a separate action or actions may be brought and prosecuted against the undersigned, whether Tenant is joined
therein or a separate action or actions are brought against Tenant. Landlord may maintain successive actions for other defaults. Landlord’s right hereunder shall not be exhausted by its exercise of any of its rights or remedies until and unless
all indebtedness and obligations hereby guaranteed have been paid and fully performed. 
 9. Savings Clause. Should any
one or more provisions of this Guaranty be determined to be illegal or unenforceable, all other provisions nevertheless shall be effective. 

10. Successors and Assigns. This Guaranty shall inure to the benefit of Landlord, its successors and assigns, and shall bind the
heirs, executors, administrators, successors, and assigns of Guarantor and any parties constituting Guarantor. 
 11. Waiver in
Writing. No provision of this Guaranty or right of Landlord hereunder can be waived nor can Guarantor be released from Guarantor’s obligations hereunder except by a writing duly executed by Landlord and except as specifically provided
for herein. 
 12. Attorneys Fees. If it becomes necessary for Landlord to employ counsel to enforce the obligations of
Guarantor hereunder, then, to the extent permitted by law, all reasonable attorneys’ fees and expenses in connection therewith of the prevailing party in any action instituted shall be paid by the other party. 

13. General. Guarantor will not exercise any right of subrogation with respect to any payment made hereunder unless and until
all Guaranteed Rent shall have been paid in full; if any payment is made to Guarantor on account of such subrogation rights at any time when the Guaranteed Rent have not been paid in full, any amounts so paid shall be forthwith paid to

  
 E-3 

 
Landlord to be applied to any of the Guaranteed Rent. This Guaranty may be amended only in writing signed by Guarantor and Landlord. This Guaranty shall be binding upon the successors and assigns
of Guarantor and shall inure to the benefit of Landlord and its successors and assigns. 

  
 E-4 

 Executed as of the date first above written. 

 

			
	 KPS SPECIAL SITUATIONS FUND II (A), L.P.

a Delaware limited partnership

		
	By:	 	 
	Name:	 	 
	Its:	 	 
	
	 KPS SPECIAL SITUATIONS FUND II, L.P.,

a Delaware limited partnership

		
	By:	 	 
	Name:	 	 
	Its:	 	 

  
 E-5 

 State of _____________ 

_______________ County 
 I, ____________________,
a Notary Public for said County and State, do hereby certify that ___________________ personally appeared before me this day and acknowledged the due execution of the foregoing instrument. 

Witness my hand and official seal, this the _____ day of ______________, 2008. 

 

			
	(Official Seal)	  	_________________________________________________________________
		  	Notary Public

 My commission expires: 

________________________, 2008 
 State of ________________ 

__________________ County 
 I,
_____________________, a Notary Public for said County and State, do hereby certify that __________________ personally appeared before me this day and acknowledged the due execution of the foregoing instrument. 

Witness my hand and official seal, this the _____ day of ______________, 2008. 

 

			
	(Official Seal)	  	_________________________________________________________________
		  	Notary Public

 My commission expires: 

______________________, 2008 

  
 E-6 

 Exhibit F 

GUARANTY OF LEASE 

THIS GUARANTY OF LEASE (this “Guaranty”) is given as of the 7th day of August, 2008, by KPS Special Situations Fund II (A),
L.P., a Delaware limited partnership, and KPS Special Situations Fund II, L.P., a Delaware limited partnership (collectively, “Guarantor”) to 2509 HAYES LLC, a Delaware limited liability company (“Landlord”). 

As an inducement to Landlord to enter into that certain Lease (the “Lease”) dated as of August 7, 2008 between Landlord
and Kyklos Bearing International, Inc., a Delaware corporation (“Tenant”) and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor agrees as follows: 

1. Definitions. All capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the
Lease. 
 2. Guaranty. Guarantor hereby unconditionally, and jointly and severally, guarantees to Landlord, subject to the
terms of this Guaranty and to the limitations set forth herein, the full, prompt and complete payment of six and one-half percent (6.5%) of the first four and one-half (4.5) years of Base Rent due and payable by Tenant under the Lease,
which is an amount equal to $742,917.33 (the “Guaranteed Rent”). The total amount of Base Rent payable during the first four and one-half (4.5) years of the Term is $11,429,497.36. The Guaranteed Rent shall be reduced in
accordance with the provisions of Section 3 of this Guaranty. If Tenant fails to pay any portion of the Guaranteed Rent, as same becomes due and payable pursuant to the terms of the Lease, Guarantor shall pay such portion of Guaranteed
Rent within thirty (30) days after Guarantor’s receipt of written notice of Tenant’s default under the Lease from Landlord. Guarantor waives any right to require Landlord to proceed first against Tenant or to exhaust any remedy
Landlord may have against Tenant under the Lease or with respect to any security granted by Tenant under the Lease before proceeding against Guarantor. 

3. Reduction of Guaranteed Rent. Notwithstanding anything to the contrary contained herein, the total amount of the Guaranteed
Rent shall be capped at $742,917.33, which amount represents 6.5% of the total amount of Base Rent due pursuant to the Lease for the first four and one-half (4.5) years of the Term. Provided no Event of Default has occurred and is continuing
under the Lease, then after the first three (3) months of payment of Base Rent by Tenant pursuant to the Lease (beginning on the Rent Commencement Date), the Guaranteed Rent shall be automatically reduced by an amount equal to 6.5% of the Base
Rent due and payable for the first six (6) months of the Lease after the Rent Commencement Date (i.e., if no Event of Default has occurred and is continuing and Tenant has paid Base Rent in accordance with the Lease for the first
three (3) months of the Lease after the Rent Commencement Date, at the end of such three (3) month period, the Guaranteed Rent shall be automatically reduced by $102,781.25, which amount represents 6.5% of the Base Rent due during months
thirteen (13) through eighteen (18) of the Term). Thereafter, for each subsequent six (6) month period of the Lease, provided no Event of Default has occurred and is continuing under the Lease during the applicable six (6) month
period, then for each six (6) month period of the Term, the Guaranteed Rent shall be automatically reduced by the total amount of Base Rent paid under the Lease for such six (6) month period. For example, if after the fourth six
(6) month period of the Term, no 

  
 F-1 

 
Event of Default has occurred and is continuing, the Guaranteed Rent shall be automatically reduced by $102,781.25, which amount represents 6.5% of the Base Rent due during months nineteen
(19) through twenty-four (24) of the Term; likewise, if after the fifth six (6) month period of the Term, no Event of Default has occurred and is continuing, the Guaranteed Rent shall be automatically reduced by $105,350.78, which
amount represents 6.5% of the Base Rent due during months twenty-five (25) through thirty (30) of the Term, and so on. In the event the Base Rent payable in a given six (6) month period equals an amount greater than the amount
remaining as Guaranteed Rent, the Guaranteed Rent shall be reduced by such remaining amount such that the Guaranteed Rent shall be reduced to zero dollars ($0) and this Guaranty shall automatically terminate. 

4. Right to Assert Defenses. 

A. Except as provided in subparagraph (B) of this Section, Guarantor shall have the benefit of and shall be entitled to assert with
respect to its obligations hereunder any and all rights, claims, counterclaims, offsets and defenses available to Tenant with respect to the Guaranteed Rent or which Tenant is otherwise entitled to assert against Landlord. 

B. The duties and obligations of Guarantor hereunder shall not be affected by, and Guarantor hereby waives any defense based on, the
Tenant’s becoming insolvent or being adjudicated a bankrupt, or filing a petition for reorganization, liquidation, or for the adjustment of debts or for similar relief under any present or future provision of the Bankruptcy Code, or the
issuance by a court of an order for relief in the case of a petition being filed by a creditor or creditors of Tenant, or the seeking by Tenant of a judicial readjustment of the rights of its creditors under any present or future federal or state
law, or the appointment of a receiver or trustee of all or part of Tenant’s property and assets by any state or federal court. 
 5.
Waiver. Guarantor hereby waives notice of acceptance of this Guaranty and hereby waives notice of any amendment of any Guaranteed Rent (including any amendment of the Lease) and the granting of any indulgence or extension of time to
Tenant to perform under the Lease. Guarantor hereby also waives any and all other notices which by law or under the terms and provisions of the Lease are required to be given to Tenant, any demand for or notice of default in the payment of any sums
payable by Tenant under the Lease or in the performance of all and singular the terms, covenants, conditions and provisions in the Lease required to be performed by Tenant, except as specifically set forth in Section 1 hereof. Guarantor
shall not be liable for modification, amendment, change or extension of any of the terms, covenants or conditions of the Lease which Tenant (which term shall include, without limitation, a trustee in bankruptcy) and Landlord may hereafter make
without Guarantor’s written consent. 
 6. Default of Tenant. If because of Tenant’s default, the Lease is
terminated, then Landlord shall notify Guarantor thereof and if Guarantor would otherwise have continuing liability to Landlord hereunder, then at Guarantor’s sole option upon written notice to Landlord to be delivered within ten
(10) business days of receipt of notice that the Lease has been terminated, Landlord shall enter into a new lease with Guarantor (or an affiliate of Guarantor other than Tenant) for the balance of the term of the Lease (including option
periods), on the same terms as are set forth in the Lease, and such new lease shall continue as a direct lease between Landlord and Guarantor or its affiliate (as tenant). As a condition of Landlord’s obligation to enter into the new lease,
Guarantor shall cure all monetary defaults, and other defaults capable of being cured, and shall reimburse Landlord for any costs incurred by Landlord in connection with such default, including reasonable attorneys’ fees and court costs. 

  
 F-2 

 7. Notices. All notices, consents, requests and approvals (collectively,
“Notices”) required or permitted hereunder shall only be effective if in writing. All Notices shall be sent by Federal Express, Airborne or similar express courier which delivers only upon signed receipt of the addressee, by
facsimile or by certified mail, with return receipt requested. Notices to Guarantor shall be sent to [KPS Capital Partners, L.P., 485 Lexington Avenue, 31st Floor, New York, NY 10017], marked for the attention of [Stephen Hoey, Chief Financial
Officer], with a copy to [Jenner & Block LLP, 330 North Wabash Avenue, Chicago, Illinois 60611], marked for the attention of [Edward Neveril] or to such other addresses as Guarantor may later designate by notice to Landlord. All notices to
Landlord shall be sent to the notice address set forth in the Lease, or to such other address as Landlord may later designate by notice to Guarantor. All notices shall be effective upon the date of receipt by the addressee thereof as shown on the
return or courier receipt of the notice, on the facsimile confirmation page, or the certified mail receipt, as applicable. 
 8.
Separate Actions. The agreements, obligations, warranties and representations of Guarantor hereunder are independent of the obligations of Tenant. In the event of any default hereunder, a separate action or actions may be brought and
prosecuted against the undersigned, whether Tenant is joined therein or a separate action or actions are brought against Tenant. Landlord may maintain successive actions for other defaults. Landlord’s right hereunder shall not be exhausted by
its exercise of any of its rights or remedies until and unless all indebtedness and obligations hereby guaranteed have been paid and fully performed. 

9. Savings Clause. Should any one or more provisions of this Guaranty be determined to be illegal or unenforceable, all other
provisions nevertheless shall be effective. 
 10. Successors and Assigns. This Guaranty shall inure to the benefit of
Landlord, its successors and assigns, and shall bind the heirs, executors, administrators, successors, and assigns of Guarantor and any parties constituting Guarantor. Landlord agrees to accept a substitute guaranty of lease (“Substitute
Guaranty”) in the form of this Guaranty from MC Capital Inc., a Delaware corporation (“Substitute Guarantor”). Upon delivery by the Substitute Guarantor of the Substitute Guaranty, this Guaranty shall terminate and be of no
further force or effect. 
 11. Waiver in Writing. No provision of this Guaranty or right of Landlord hereunder can be waived
nor can Guarantor be released from Guarantor’s obligations hereunder except by a writing duly executed by Landlord and except as specifically provided for herein. 

12. Attorneys Fees. If it becomes necessary for Landlord to employ counsel to enforce the obligations of Guarantor hereunder,
then, to the extent permitted by law, all reasonable attorneys’ fees and expenses in connection therewith of the prevailing party in any action instituted shall be paid by the other party. 

  
 F-3 

 13. General. Guarantor will not exercise any right of subrogation with respect to
any payment made hereunder unless and until all Guaranteed Rent shall have been paid in full; if any payment is made to Guarantor on account of such subrogation rights at any time when the Guaranteed Rent have not been paid in full, any amounts so
paid shall be forthwith paid to Landlord to be applied to any of the Guaranteed Rent. This Guaranty may be amended only in writing signed by Guarantor and Landlord. This Guaranty shall be binding upon the successors and assigns of Guarantor and
shall inure to the benefit of Landlord and its successors and assigns. 

  
 F-4 

 Executed as of the date first above written. 

 

			
	 KPS SPECIAL SITUATIONS FUND II (A), L.P.

a Delaware limited partnership

		
	By:	 	 
	Name:	 	 
	Its:	 	 
	
	 KPS SPECIAL SITUATIONS FUND II, L.P.,

a Delaware limited partnership

		
	By:	 	 
	Name:	 	 
	Its:	 	 

  
 F-5 

 State of _____________ 

_______________ County 
 I, ____________________,
a Notary Public for said County and State, do hereby certify that ___________________ personally appeared before me this day and acknowledged the due execution of the foregoing instrument. 

Witness my hand and official seal, this the _____ day of ______________, 2008. 

 

			
	(Official Seal)	  	_________________________________________________________________
		  	Notary Public

 My commission expires: 

________________________, 2008 
 State of ________________ 

__________________ County 
 I,
_____________________, a Notary Public for said County and State, do hereby certify that __________________ personally appeared before me this day and acknowledged the due execution of the foregoing instrument. 

Witness my hand and official seal, this the _____ day of ______________, 2008. 

 

			
	(Official Seal)	  	_________________________________________________________________
		  	Notary Public

 My commission expires: 

______________________, 2008 

  
 F-6 

 GUARANTY OF LEASE 

THIS GUARANTY OF LEASE (this “Guaranty”) is given as of the 7th day of August, 2008, by KPS Special Situations Fund II (A),
L.P., a Delaware limited partnership, and KPS Special Situations Fund II, L.P., a Delaware limited partnership (collectively, “Guarantor”) to 2509 HAYES LLC, a Delaware limited liability company (“Landlord”). 

As an inducement to Landlord to enter into that certain Lease (the “Lease”) dated as of August 7, 2008 between Landlord
and Kyklos Bearing International, Inc., a Delaware corporation (“Tenant”) and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor agrees as follows: 

1. Definitions. All capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the
Lease. 
 2. Guaranty. Guarantor hereby unconditionally, and jointly and severally, guarantees to Landlord, subject to the
terms of this Guaranty and to the limitations set forth herein, the full, prompt and complete payment of ninety-three and one-half percent (93.5%) of the first four and one-half (4.5) years of Base Rent due and payable by Tenant under the
Lease, which is an amount equal to $10,686,580.03 (the “Guaranteed Rent”). The total amount of Base Rent payable by Tenant during the first four and one-half (4.5) years of the Term is $11,429,497.36. The Guaranteed Rent shall
be reduced in accordance with the provisions of Section 3 of this Guaranty. If Tenant fails to pay any portion of the Guaranteed Rent, as same becomes due and payable pursuant to the terms of the Lease, Guarantor shall pay such portion
of Guaranteed Rent within thirty (30) days after Guarantor’s receipt of written notice of Tenant’s default under the Lease from Landlord. Guarantor waives any right to require Landlord to proceed first against Tenant or to exhaust any
remedy Landlord may have against Tenant under the Lease or with respect to any security granted by Tenant under the Lease before proceeding against Guarantor. 

3. Reduction of Guaranteed Rent. Notwithstanding anything to the contrary contained herein, the total amount of the Guaranteed
Rent guarantied under this Guaranty shall be capped at $10,686,580.03, which amount represents 93.5% of the total amount of Base Rent due pursuant to the Lease for the first four and one-half (4.5) years of the Term. Provided no Event of
Default has occurred and is continuing under the Lease, then after the first three (3) months of payment of Base Rent by Tenant pursuant to the Lease (beginning on the Rent Commencement Date), the Guaranteed Rent shall be automatically reduced
by an amount equal to 93.5% of Base Rent due and payable for the first six (6) months of the Lease after the Rent Commencement Date (i.e., if no Event of Default has occurred and is continuing and Tenant has paid Base Rent in
accordance with the Lease for the first three (3) months of the Lease after the Rent Commencement Date, at the end of such three (3) month period, the Guaranteed Rent shall be automatically reduced by $1,478,468.75, which amount represents
93.5% of the Base Rent due during months thirteen (13) through eighteen (18) of the Term). Thereafter, for each subsequent six (6) month period of the Lease, provided no Event of Default has occurred and is continuing under the Lease
during the applicable six (6) month period, then for each six (6) month period of the Term, the Guaranteed Rent shall be automatically reduced by 93.5% of the total amount of Base Rent paid under the Lease for such six (6) month
period. For example, if 

 
after the fourth six (6) month period of the Term, no Event of Default has occurred and is continuing, the Guaranteed Rent shall be automatically reduced by $1,478,468.75, which amount
represents 93.50% of the Base Rent due during months nineteen (19) through twenty-four (24) of the Term; likewise, if after the fifth six (6) month period of the Term, no Event of Default has occurred and is continuing, the Guaranteed
Rent shall be automatically reduced by $1,535,430.47, which amount represents 93.5% of the Base Rent due during months twenty-five (25) through thirty (30) of the Term, and so on. In the event the Base Rent payable in a given six
(6) month period equals an amount greater than the amount remaining as Guaranteed Rent, the Guaranteed Rent shall be reduced by such remaining amount such that the Guaranteed Rent shall be reduced to zero dollars ($0) and this Guaranty shall
automatically terminate. 
 4. Right to Assert Defenses. 

A. Except as provided in subparagraph (B) of this Section, Guarantor shall have the benefit of and shall be entitled to assert with
respect to its obligations hereunder any and all rights, claims, counterclaims, offsets and defenses available to Tenant with respect to the Guaranteed Rent or which Tenant is otherwise entitled to assert against Landlord. 

B. The duties and obligations of Guarantor hereunder shall not be affected by, and Guarantor hereby waives any defense based on, the
Tenant’s becoming insolvent or being adjudicated a bankrupt, or filing a petition for reorganization, liquidation, or for the adjustment of debts or for similar relief under any present or future provision of the Bankruptcy Code, or the
issuance by a court of an order for relief in the case of a petition being filed by a creditor or creditors of Tenant, or the seeking by Tenant of a judicial readjustment of the rights of its creditors under any present or future federal or state
law, or the appointment of a receiver or trustee of all or part of Tenant’s property and assets by any state or federal court. 
 5.
Waiver. Guarantor hereby waives notice of acceptance of this Guaranty and hereby waives notice of any amendment of any Guaranteed Rent (including any amendment of the Lease) and the granting of any indulgence or extension of time to
Tenant to perform under the Lease. Guarantor hereby also waives any and all other notices which by law or under the terms and provisions of the Lease are required to be given to Tenant, any demand for or notice of default in the payment of any sums
payable by Tenant under the Lease or in the performance of all and singular the terms, covenants, conditions and provisions in the Lease required to be performed by Tenant, except as specifically set forth in Section 1 hereof. Guarantor
shall not be liable for modification, amendment, change or extension of any of the terms, covenants or conditions of the Lease which Tenant (which term shall include, without limitation, a trustee in bankruptcy) and Landlord may hereafter make
without Guarantor’s written consent. 
 6. Default of Tenant. If because of Tenant’s default, the Lease is
terminated, then Landlord shall notify Guarantor thereof and if Guarantor would otherwise have continuing liability to Landlord hereunder, then at Guarantor’s sole option upon written notice to Landlord to be delivered within ten
(10) business days of receipt of notice that the Lease has been terminated, Landlord shall enter into a new lease with Guarantor (or an affiliate of Guarantor other than Tenant) for the balance of the term of the Lease (including option
periods), on the same terms as are set forth in the Lease, and such new lease shall continue as a direct lease between Landlord and Guarantor or its affiliate (as tenant). As a condition of Landlord’s obligation to enter into the new lease,
Guarantor shall cure all monetary defaults, and other defaults capable of being cured, and shall reimburse Landlord for any costs incurred by Landlord in connection with such default, including reasonable attorneys’ fees and court costs. 

  
 2 

 7. Notices. All notices, consents, requests and approvals (collectively,
“Notices”) required or permitted hereunder shall only be effective if in writing. All Notices shall be sent by Federal Express, Airborne or similar express courier which delivers only upon signed receipt of the addressee, by
facsimile or by certified mail, with return receipt requested. Notices to Guarantor shall be sent to [KPS Capital Partners, L.P., 485 Lexington Avenue, 31st Floor, New York, NY 10017], marked for the attention of [Stephen Hoey, Chief Financial
Officer], with a copy to [Jenner & Block LLP, 330 North Wabash Avenue, Chicago, Illinois 60611], marked for the attention of [Edward Neveril] or to such other addresses as Guarantor may later designate by notice to Landlord. All notices to
Landlord shall be sent to the notice address set forth in the Lease, or to such other address as Landlord may later designate by notice to Guarantor. All notices shall be effective upon the date of receipt by the addressee thereof as shown on the
return or courier receipt of the notice, on the facsimile confirmation page, or the certified mail receipt, as applicable. 
 8.
Separate Actions. The agreements, obligations, warranties and representations of Guarantor hereunder are independent of the obligations of Tenant. In the event of any default hereunder, a separate action or actions may be brought and
prosecuted against the undersigned, whether Tenant is joined therein or a separate action or actions are brought against Tenant. Landlord may maintain successive actions for other defaults. Landlord’s right hereunder shall not be exhausted by
its exercise of any of its rights or remedies until and unless all indebtedness and obligations hereby guaranteed have been paid and fully performed. 

9. Savings Clause. Should any one or more provisions of this Guaranty be determined to be illegal or unenforceable, all other
provisions nevertheless shall be effective. 
 10. Successors and Assigns. This Guaranty shall inure to the benefit of
Landlord, its successors and assigns, and shall bind the heirs, executors, administrators, successors, and assigns of Guarantor and any parties constituting Guarantor. 

11. Waiver in Writing. No provision of this Guaranty or right of Landlord hereunder can be waived nor can Guarantor be released
from Guarantor’s obligations hereunder except by a writing duly executed by Landlord and except as specifically provided for herein. 

12. Attorneys Fees. If it becomes necessary for Landlord to employ counsel to enforce the obligations of Guarantor hereunder,
then, to the extent permitted by law, all reasonable attorneys’ fees and expenses in connection therewith of the prevailing party in any action instituted shall be paid by the other party. 

13. General. Guarantor will not exercise any right of subrogation with respect to any payment made hereunder unless and until
all Guaranteed Rent shall have been paid in full; if any payment is made to Guarantor on account of such subrogation rights at any time when the Guaranteed Rent have not been paid in full, any amounts so paid shall be forthwith paid to Landlord to
be applied to any of the Guaranteed Rent. This Guaranty may be amended only in writing signed by Guarantor and Landlord. This Guaranty shall be binding upon the successors and assigns of Guarantor and shall inure to the benefit of Landlord and its
successors and assigns. 

  
 3 

 Executed as of the date first above written. 

 

			
	 KPS SPECIAL SITUATIONS FUND II (A), L.P.

a Delaware limited partnership

		
	By:	 	/s/ Michael Psaros
	Name:	 	Michael Psaros
	Its:	 	Manager Member

  

			
	 KPS SPECIAL SITUATIONS FUND II, L.P.,

a Delaware limited partnership

		
	By:	 	/s/ Michael Psaros
	Name:	 	Michael Psaros
	Its:	 	Manager Member

  
 4 

 State of New York 

KINGS County 
 I, CHARMAIN NOEL-McLEAN a Notary
Public for said County and State, do hereby certify that MICHAEL PSAROS personally appeared before me this day and acknowledged the due execution of the foregoing instrument. 

Witness my hand and official seal, this the 5th day of August, 2008. 

 

			
	(Official Seal)	  	CHARMAIN NOEL-McLEAN
		  	Notary Public
	My commission expires:	  	CHARMAIN NOEL-McLEAN
	April 9th, 2011	  	Notary Public, State of New York
		  	 No. 01NO6164074

Qualified in Kings County

Commission Expires April 9, 2011

 State of New York 
 KINGS County

 I, CHARMAIN NOEL-McLEAN a Notary Public for said County and State, do hereby certify that MICHAEL PSAROS personally appeared before me
this day and acknowledged the due execution of the foregoing instrument. 
 Witness my hand and official seal, this the 5th day of August, 2008. 
  

			
	(Official Seal)	  	CHARMAIN NOEL-McLEAN
		  	Notary Public

 My commission expires: 
 April 9th, 2011 

			
		  	 CHARMAIN NOEL-McLEAN

Notary Public, State of New York

No. 01NO6164074
 Qualified in
Kings County
 Commission Expires April 9, 2011

  
 5 

 GUARANTY OF LEASE 

THIS GUARANTY OF LEASE (this “Guaranty”) is given as of the 7th day of August, 2008, by KPS Special Situations Fund II (A),
L.P., a Delaware limited partnership, and KPS Special Situations Fund II, L.P., a Delaware limited partnership (collectively, “Guarantor”) to 2509 HAYES LLC, a Delaware limited liability company (“Landlord”). 

As an inducement to Landlord to enter into that certain Lease (the “Lease”) dated as of August 7, 2008 between Landlord
and Kyklos Bearing International, Inc., a Delaware corporation (“Tenant”) and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor agrees as follows: 

1. Definitions. All capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in
the Lease. 
 2. Guaranty. Guarantor hereby unconditionally, and jointly and severally, guarantees to Landlord, subject to the
terms of this Guaranty and to the limitations set forth herein, the full, prompt and complete payment of six and one-half percent (6.5%) of the first four and one-half (4.5) years of Base Rent due and payable by Tenant under the Lease,
which is an amount equal to $742,917.33 (the “Guaranteed Rent”). The total amount of Base Rent payable during the first four and one-half (4.5) years of the Term is $11,429,497.36. The Guaranteed Rent shall be reduced in
accordance with the provisions of Section 3 of this Guaranty. If Tenant fails to pay any portion of the Guaranteed Rent, as same becomes due and payable pursuant to the terms of the Lease, Guarantor shall pay such portion of Guaranteed
Rent within thirty (30) days after Guarantor’s receipt of written notice of Tenant’s default under the Lease from Landlord. Guarantor waives any right to require Landlord to proceed first against Tenant or to exhaust any remedy
Landlord may have against Tenant under the Lease or with respect to any security granted by Tenant under the Lease before proceeding against Guarantor. 

3. Reduction of Guaranteed Rent. Notwithstanding anything to the contrary contained herein, the total amount of the Guaranteed
Rent shall be capped at $742,917.33, which amount represents 6.5% of the total amount of Base Rent due pursuant to the Lease for the first four and one-half (4.5) years of the Term. Provided no Event of Default has occurred and is continuing
under the Lease, then after the first three (3) months of payment of Base Rent by Tenant pursuant to the Lease (beginning on the Rent Commencement Date), the Guaranteed Rent shall be automatically reduced by an amount equal to 6.5% of the Base
Rent due and payable for the first six (6) months of the Lease after the Rent Commencement Date (i.e., if no Event of Default has occurred and is continuing and Tenant has paid Base Rent in accordance with the Lease for the first
three (3) months of the Lease after the Rent Commencement Date, at the end of such three (3) month period, the Guaranteed Rent shall be automatically reduced by $102,781.25, which amount represents 6.5% of the Base Rent due during months
thirteen (13) through eighteen (18) of the Term). Thereafter, for each subsequent six (6) month period of the Lease, provided no Event of Default has occurred and is continuing under the Lease during the applicable six (6) month
period, then for each six (6) month period of the Term, the Guaranteed Rent shall be automatically reduced by the total amount of Base Rent paid under the Lease for such six (6) month period. For example, if after the fourth six
(6) month period of the Term, no Event of Default has occurred and is continuing, the Guaranteed Rent shall be automatically 

 
reduced by $102,781.25, which amount represents 6.5% of the Base Rent due during months nineteen (19) through twenty-four (24) of the Term; likewise, if after the fifth six
(6) month period of the Term, no Event of Default has occurred and is continuing, the Guaranteed Rent shall be automatically reduced by $105,350.78, which amount represents 6.5% of the Base Rent due during months twenty-five (25) through
thirty (30) of the Term, and so on. In the event the Base Rent payable in a given six (6) month period equals an amount greater than the amount remaining as Guaranteed Rent, the Guaranteed Rent shall be reduced by such remaining amount
such that the Guaranteed Rent shall be reduced to zero dollars ($0) and this Guaranty shall automatically terminate. 
 4. Right to
Assert Defenses. 
 A. Except as provided in subparagraph (B) of this Section, Guarantor shall have the benefit of and shall be
entitled to assert with respect to its obligations hereunder any and all rights, claims, counterclaims, offsets and defenses available to Tenant with respect to the Guaranteed Rent or which Tenant is otherwise entitled to assert against Landlord.

 B. The duties and obligations of Guarantor hereunder shall not be affected by, and Guarantor hereby waives any defense based on, the
Tenant’s becoming insolvent or being adjudicated a bankrupt, or filing a petition for reorganization, liquidation, or for the adjustment of debts or for similar relief under any present or future provision of the Bankruptcy Code, or the
issuance by a court of an order for relief in the case of a petition being filed by a creditor or creditors of Tenant, or the seeking by Tenant of a judicial readjustment of the rights of its creditors under any present or future federal or state
law, or the appointment of a receiver or trustee of all or part of Tenant’s property and assets by any state or federal court. 
 5.
Waiver. Guarantor hereby waives notice of acceptance of this Guaranty and hereby waives notice of any amendment of any Guaranteed Rent (including any amendment of the Lease) and the granting of any indulgence or extension of time to
Tenant to perform under the Lease. Guarantor hereby also waives any and all other notices which by law or under the terms and provisions of the Lease are required to be given to Tenant, any demand for or notice of default in the payment of any sums
payable by Tenant under the Lease or in the performance of all and singular the terms, covenants, conditions and provisions in the Lease required to be performed by Tenant, except as specifically set forth in Section 1 hereof. Guarantor
shall not be liable for modification, amendment, change or extension of any of the terms, covenants or conditions of the Lease which Tenant (which term shall include, without limitation, a trustee in bankruptcy) and Landlord may hereafter make
without Guarantor’s written consent. 
 6. Default of Tenant. If because of Tenant’s default, the Lease is
terminated, then Landlord shall notify Guarantor thereof and if Guarantor would otherwise have continuing liability to Landlord hereunder, then at Guarantor’s sole option upon written notice to Landlord to be delivered within ten
(10) business days of receipt of notice that the Lease has been terminated, Landlord shall enter into a new lease with Guarantor (or an affiliate of Guarantor other than Tenant) for the balance of the term of the Lease (including option
periods), on the same terms as are set forth in the Lease, and such new lease shall continue as a direct lease between Landlord and Guarantor or its affiliate (as tenant). As a condition of Landlord’s obligation to enter into the new lease,
Guarantor shall cure all monetary defaults, and other defaults capable of being cured, and shall reimburse Landlord for any costs incurred by Landlord in connection with such default, including reasonable attorneys’ fees and court costs. 

  
 2 

 7. Notices. All notices, consents, requests and approvals (collectively,
“Notices”) required or permitted hereunder shall only be effective if in writing. All Notices shall be sent by Federal Express, Airborne or similar express courier which delivers only upon signed receipt of the addressee, by
facsimile or by certified mail, with return receipt requested. Notices to Guarantor shall be sent to [KPS Capital Partners, L.P., 485 Lexington Avenue, 31st Floor, New York, NY 10017], marked for the attention of [Stephen Hoey, Chief Financial
Officer], with a copy to [Jenner & Block LLP, 330 North Wabash Avenue, Chicago, Illinois 60611], marked for the attention of [Edward Neveril] or to such other addresses as Guarantor may later designate by notice to Landlord. All notices to
Landlord shall be sent to the notice address set forth in the Lease, or to such other address as Landlord may later designate by notice to Guarantor. All notices shall be effective upon the date of receipt by the addressee thereof as shown on the
return or courier receipt of the notice, on the facsimile confirmation page, or the certified mail receipt, as applicable. 
 8.
Separate Actions. The agreements, obligations, warranties and representations of Guarantor hereunder are independent of the obligations of Tenant. In the event of any default hereunder, a separate action or actions may be brought and
prosecuted against the undersigned, whether Tenant is joined therein or a separate action or actions are brought against Tenant. Landlord may maintain successive actions for other defaults. Landlord’s right hereunder shall not be exhausted by
its exercise of any of its rights or remedies until and unless all indebtedness and obligations hereby guaranteed have been paid and fully performed. 

9. Savings Clause. Should any one or more provisions of this Guaranty be determined to be illegal or unenforceable, all other
provisions nevertheless shall be effective. 
 10. Successors and Assigns. This Guaranty shall inure to the benefit of
Landlord, its successors and assigns, and shall bind the heirs, executors, administrators, successors, and assigns of Guarantor and any parties constituting Guarantor. Landlord agrees to accept a substitute guaranty of lease (“Substitute
Guaranty”) in the form of this Guaranty from MC Capital Inc., a Delaware corporation (“Substitute Guarantor”). Upon delivery by the Substitute Guarantor of the Substitute Guaranty, this Guaranty shall terminate and be of no
further force or effect. 
 11. Waiver in Writing. No provision of this Guaranty or right of Landlord hereunder can be waived
nor can Guarantor be released from Guarantor’s obligations hereunder except by a writing duly executed by Landlord and except as specifically provided for herein. 

12. Attorneys Fees. If it becomes necessary for Landlord to employ counsel to enforce the obligations of Guarantor hereunder,
then, to the extent permitted by law, all reasonable attorneys’ fees and expenses in connection therewith of the prevailing party in any action instituted shall be paid by the other party. 

  
 3 

 13. General. Guarantor will not exercise any right of subrogation with respect to
any payment made hereunder unless and until all Guaranteed Rent shall have been paid in full; if any payment is made to Guarantor on account of such subrogation rights at any time when the Guaranteed Rent have not been paid in full, any amounts so
paid shall be forthwith paid to Landlord to be applied to any of the Guaranteed Rent. This Guaranty may be amended only in writing signed by Guarantor and Landlord. This Guaranty shall be binding upon the successors and assigns of Guarantor and
shall inure to the benefit of Landlord and its successors and assigns. 

  
 4 

 Executed as of the date first above written. 

 

			
	 KPS SPECIAL SITUATIONS FUND II (A), L.P.

a Delaware limited partnership

		
	By:	 	/s/ Michael Psaros
	Name:	 	Michael Psaros
	Its:	 	Manager Member

  

			
	 KPS SPECIAL SITUATIONS FUND II, L.P.,

a Delaware limited partnership

		
	By:	 	/s/ Michael Psaros
	Name:	 	Michael Psaros
	Its:	 	Manager Member

  
 5 

 State of New York 

KINGS County 
 I, CHARMAIN NOEL-McLEAN, a Notary
Public for said County and State, do hereby certify that MICHAEL PSAROS personally appeared before me this day and acknowledged the due execution of the foregoing instrument. 

Witness my hand and official seal, this the 5th day of August, 2008. 

 

			
	(Official Seal)	  	CHARMAIN NOEL-McLEAN
		  	Notary Public
	My commission expires:	  	CHARMAIN NOEL-McLEAN
	April 9th, 2011	  	Notary Public, State of New York
		  	 No. 01NO6164074

Qualified in Kings County

Commission Expires April 9, 2011

 State of New York 
 KINGS County

 I, CHARMAIN NOEL-McLEAN, a Notary Public for said County and State, do hereby certify that Michael Psaros personally appeared before me
this day and acknowledged the due execution of the foregoing instrument. 
 Witness my hand and official seal, this the 5th day of August, 2008. 
  

			
	(Official Seal)	  	CHARMAIN NOEL-McLEAN
		  	Notary Public

 My commission expires: 
 April 9th, 2011 

			
		  	 CHARMAIN NOEL-McLEAN

Notary Public, State of New York

No. 01NO6164074
 Qualified in
Kings County
 Commission Expires April 9, 2011

  
 6Exhibit 10.22

 

‎FLUX POWER HOLDINGS, INC.

 

UNIT SUBSCRIPTION AGREEMENT

 

THIS UNIT SUBSCRIPTION
AGREEMENT (this “Agreement”) is entered into by and between Flux Power Holdings, Inc., a Nevada corporation
(the “Company”), and the person or entity executing the Agreement (the “Investor”). In this
Agreement, the pronoun “it” means “he, “she,” or “it,” as appropriate.

 

A.           The
Company is offering to selected “accredited investors” up to 11 Units for aggregate amount of $990,000, for $90,000
per Unit, or $.09 per common share (the “Offering”), subject to the terms, conditions, acknowledgements, representations,
and warranties stated herein; however, the Company reserves the right to accept subscriptions for lesser amounts as well as the
right to reject in whole or in part subscriptions received during the Offering. Each Unit consists of 990,000 shares of common
stock of the Company (“Common Shares”) at a price per common share of $0.09 and 500,000 warrants (the “Warrants”),
with each warrant entitling the holder to purchase one share of common stock (“Warrant Share”) at an exercise
price of $0.25 per share (“Exercise Price”) at any time for a period of up to three (3) years from the issuance
date at which time the Warrant will expire. The Units, Common Shares, Warrants and common stock issuable upon the exercise of the
Warrants (the “Warrant Shares”) are herein collectively referred to as the “Securities”.

 

B.           The
Company and the Investor are executing and delivering this Agreement in reliance upon the exemption from registration afforded
by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation
D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the Investor agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.          Definitions.
In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated:

 

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

 

“Business
Day” means any day other than Saturday, Sunday, any day which shall be a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.

 

“Closing” means the closing
of the purchase and sale of the Securities pursuant to Section 2.3.

 

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

 

“Common Shares” has the meaning
set forth in the Recitals.

 

“Common Stock” means common stock
of the Company, par value $0.001.

 

“Disclosure
Materials” means the SEC Documents and this Agreement.

 

    	1

    	 

    

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended.

 

“Investor” has the meaning
set forth in the Preamble.

 

“Investor
Suitability Questionnaire” means the Investor Suitability Questionnaire, in substantially set forth herein as “Exhibit
A” as completed and executed by the Investor.

 

“Material
Adverse Effect” means (i) a material adverse effect on the results of operations, assets, business, prospects or financial
condition of the Company or (ii) material and adverse impairment of the Company’s ability to perform its obligations under
any of the Transaction Documents.

 

“Regulation D”
has the meaning set forth in the Preamble.

 

“Rule 144,”
“Rule 415,” and “Rule 424” means Rule 144, Rule 415 and Rule 424, respectively, promulgated
by the SEC pursuant to the Securities Act, as such Rules may be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC having substantially the same effect as such Rule.

 

“SEC” has the meaning
set forth in the Recitals.

 

“SEC Documents” has the
meanings set forth in Section 3.4.

 

“Securities” has the
meaning set forth in the Recitals.

 

“Securities Act” has
the meaning set forth in the Recitals.

 

“Shares” means
shares of the Company’s Common Stock.

 

“Securities”
means the Units, Shares, Warrants and Warrant Shares.

 

“Transaction
Documents” means this Agreement, the schedules and exhibits attached hereto, including but not limited to the Investor
Suitability Questionnaire and the Warrant Certificate.

 

“Warrant Certificate”
means the warrant certificate in the form attached hereto as “Exhibit B.”

 

“Warrants” has the meaning set
forth in the Recitals.

 

“Warrant Shares” has the meaning
set forth in the Recitals.

 

ARTICLE II

PURCHASE AND SALE

 

2.           Offering
and Purchase of the Securities.

 

2.1           Offering.
The Company is offering to sell up to 11 Units for aggregate amount of $990,000(“Offering Amount”), for $90,000
per Unit, or $.09 per common share with each Unit consisting of 1,000,000 shares of Common Stock and 500,000 Warrants (the “Offering”).
The Company has the sole discretion to increase the Offering Amount. The minimum investment amount in the Units per Investor pursuant
to the Offering is $90,000, however, the Company reserves the right to accept subscriptions for lesser amounts as well as the right
to reject in whole or in part subscriptions received during the Offering.

 

    	2

    	 

    

 

2.2           Subscription.
The Investor hereby irrevocably subscribes to purchase from the Company, upon the terms and conditions stated in this Agreement,
that aggregate number of Units for the purchase price set forth on such Investor’s signature page to this Agreement.

 

2.3           Investor
Deliverables. Promptly upon execution of this Agreement, the Investor agrees to deliver to Company (a) an executed Agreement,
(b) a completed Investor Suitability Questionnaire, attached hereto as Exhibit A to the Company (“Investor Suitability
Questionnaire”), and (c) the Aggregate Purchase Price set forth on such Investor’s signature page to this Agreement
in United States dollars and in immediately available funds, by wire transfer to the Company pursuant to the instructions provided
by the Company (collectively, referred to as the “Investor Deliverables”).

 

2.4           Acceptance
or Rejection of Subscription. The Investor understands and agrees that the Company reserves the right, in its sole discretion,
to reject this subscription, in whole or in part if (a) the Investor is not an "accredited investor" or otherwise fails
to meet the investor suitability requirements as set forth in the Investor Suitability Questionnaire, (b) fails to deliver payment
of the Aggregate Purchase Price, or (c) fails to deliver a completed Investor Deliverables, until there has been notice of acceptance
of the Investor’s subscription. In the event of rejection of this subscription, the Subscriber’s funds (without interest)
or, in the event of a partial rejection a check in the amount of the rejected portion, will be promptly issued to the Investor.
Upon acceptance of the subscription by the Company and the Investor Deliverables (“Closing”), the Company will
cause the purchase of the Common Shares to be reflected in the books and record of the Company, and will deliver to the Investor:

 

(a)          an
"accepted" Subscription Agreement;

 

(b)          a
Warrant Certificate in substantially the form attached hereto as Exhibit B, issued in the name of the Investor, pursuant
to which the Investor shall have the right to acquire such number of Warrant Shares equal to that number of Warrant Shares included
in the Units purchased by the Investor as set forth on such Investor’s signature page to this Agreement; and

 

(c)          the
stock certificate representing the number of Common Shares represented by the Units purchased by the Investor, as set forth on
the Investor’s signature page to this Agreement.

 

2.5           No
Escrow or Minimum Investment Amount. No escrow or minimum investment amount will be used for the offering.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF COMPANY

 

3.           Representations
and Warranties of the Company. Except as disclosed in the SEC Documents and as otherwise stated to the contrary herein, the
Company hereby represents and warrants to the Investor as of Closing that:

 

3.1           Authorization.
All corporate action on the part of the Company, its officers, directors and shareholders necessary for the authorization, execution
and delivery of this Agreement has been taken. The Company has the requisite corporate power to enter into this Agreement and carry
out and perform its obligations under the terms of this Agreement. The Company will have the requisite corporate power to issue
and sell the Units. This Agreement has been duly executed and delivered by the Company and constitutes the valid and binding obligation
of the Company, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

    	3

    	 

    

 

3.2           Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the
laws of the State of Nevada and has all requisite corporate power and authority to carry on its business as now conducted. The
Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure so to qualify
would have a Material Adverse Effect.

 

3.3           Conflict
of Interest. Timothy Collins is the President, CEO and Founder of KleenSpeed Technologies Inc. (“KleenSpeed”).
Mr. Collins has invested and advanced more than one million dollars in and to KleenSpeed during the past six years and is the largest
of approximately 50 shareholders. Mr. Collins, as CEO of KleenSpeed, negotiated with the Company the non-binding letter of intent
(LOI) for the proposed acquisition of KleenSpeed by the Company (“Acquisition”) as more fully described in the
Company Form 8-K filed with the SEC on June 27, 2013. Mr. Collins is also the President and CEO of Security Research Associates
Inc. (“SRA”) the investment banking firm that the Company has engaged as the placement agent to assist with
its private placement. Mr. Collins therefore will benefit financially from the compensation derived by SRA from this Offering and
other private placements in which SRA assists with, as well as the receipt of shares from the Company if and when the contemplated
Acquisition of KleenSpeed is completed and the recovery of advances he has made to KleenSpeed. Mr. Collins has solicited the advice
of other partners in SRA as to the structure and terms of the Company’s financing. Also, Mr. Collins was appointed Executive
Chairman of the Flux Board of Directors on March 13, 2014. He has been and continues to spend substantial time on the affairs of
the Company.

 

3.4           Delivery
of SEC Documents; Business. The Company has made available to the Investor through the SEC’s EDGAR system, true and
complete copies of the Company’s most recent Annual Report on Form 10-K for the fiscal year ended June 30, 2013 and Form
10-Q for the quarter ended March 31, 2014, and all other reports filed by the Company pursuant to the Exchange Act since the filing
of the Form 10-Q for the quarter ended March 31, 2014, and prior to the date hereof (collectively, the “SEC Documents”).
The Company is engaged in all material respects only in the business described in the SEC Documents and the SEC Documents contain
a complete and accurate description of the business of the Company in all material respects.

 

3.5           No
Conflict with Other Instruments. The execution, delivery and performance of this Agreement, the issuance and sale of the Securities
to be sold by the Company under this Agreement and the consummation of the actions contemplated by this Agreement will not (a)
result in any violation of, be in conflict with, or constitute a material default under, with or without the passage of time or
the giving of notice (i) any provision of the Company’s Articles of Incorporation, as amended, or Bylaws, as amended (or
similar governing documents); (ii) any provision of any judgment, arbitration ruling, decree or order to which the Company is a
party or by which the Company is bound; or (iii) any bond, debenture, note or other evidence of indebtedness, or any material lease,
contract, mortgage, indenture, deed of trust, loan agreement, joint venture or other agreement, instrument or commitment to which
the Company is a party or by which the Company or its properties is bound; or (b) result in the creation or imposition of any lien,
encumbrance, claim, security interest or restriction whatsoever upon any of the properties or assets of the Company or any acceleration
of indebtedness pursuant to any obligation, agreement or condition contained in any bond, debenture, note or any other evidence
of indebtedness or any indenture, mortgage, deed of trust or any other agreement or instrument to which the Company is a party
or by which the Company is bound or to which any of the property or assets of the Company is subject.

 

    	4

    	 

    

 

3.6           Capitalization.
As of June 11, 2014, the authorized capital stock of the Company consists of (a) 145,000,000 shares of Common Stock, of which (i)
93,274,112 shares are issued and outstanding, and (b) 33,437,951 shares are reserved for issuance upon the exercise or conversion,
as the case may be, of outstanding options, warrants or other convertible securities; and (c) 5,000,000 shares of preferred stock,
none of which, are outstanding or reserved for issuance upon the exercise or conversion, as the case may be, of outstanding options,
warrants or other convertible securities. Except as disclosed in the Company SEC Documents and set forth in the Company’s
Articles of Incorporation, as amended and contemplated in the Transaction Documents, there are no anti-dilution or price adjustment
provisions, co-sale rights, registration rights, rights of first refusal or other similar rights contained in the terms governing
any outstanding security of the Company that will be triggered by the issuance of the Securities.

 

3.7           Valid
Issuance of Securities. The Securities will be duly and validly authorized and, when issued and paid for pursuant to this Agreement,
will be validly issued, fully paid and non-assessable, and shall be free and clear of all encumbrances and restrictions (other
than those created by the Investor), except for restrictions on transfer set forth in this Agreement or imposed by applicable securities
laws. The Company has reserved a sufficient number of shares of Common Stock for issuance upon the exercise of the Warrants, free
and clear of all encumbrances and restrictions, except for restrictions on transfer set forth in this Agreement or imposed by applicable
securities laws and except for those created by the Investor.

 

3.8           Litigation.
Except as set forth in the Company SEC Documents, there is no action, suit, proceeding nor investigation pending or, to the Company’s
knowledge, currently threatened against the Company that (a) if adversely determined would reasonably be expected to have a Material
Adverse Effect or (b) would be required to be disclosed in the Company’s Annual Report on Form 10-K under the requirements
of Item 103 of Regulation S-K. The foregoing includes, without limitation, any action, suit, proceeding or investigation, pending
or threatened, that questions the validity of this Agreement or the right of the Company to enter into such Agreement and perform
its obligations hereunder. The Company is not subject to any injunction, judgment, decree or order of any court, regulatory body,
arbitral panel, administrative agency or other government body.

 

3.9           Governmental
Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing
with, any federal, state, local or provincial governmental authority on the part of the Company is required in connection with
the consummation of the transactions contemplated by this Agreement, except for notices required or permitted to be filed with
certain state and federal securities commissions, which notices will be filed on a timely basis.

 

3.10        No Material
Changes. Except as disclosed in the Company SEC Documents, , since March 31, 2014, there has not been any material change that
has had a Material Adverse Effect.

 

3.11        Investment
Company. The Company is not an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for an investment company, within the meaning of the Investment Company Act of 1940 and
will not be deemed an “investment company” as a result of the transactions contemplated by this Agreement.

 

3.12       No General
Solicitation. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has engaged or
will engage in any form of general solicitation or general advertising (within the meaning of Regulation D promulgated under the
Securities Act) in connection with the offer or sale of the Securities.

 

    	5

    	 

    

 

3.13         Placement
Agent. The Company has retained Security Research Associates Inc. (“SRA”), on a best-efforts basis, as its placement
agent. The Company will pay to SRA for services rendered in conjunction with this Offering compensation in the amount of 9% of
the gross proceeds raised and a warrant for the purchase of the Common Shares. The number Common Shares subject to the warrant
will equal 9% of the aggregate gross proceeds from the Offering received by the Company from all investors placed by SRA divided
by $0.09 per share. The warrant will have a term of 3 years and will include cashless exercise provisions as well as representations
and warranties that are customary and standard in warrants issued to placement agents or underwriters. The exercise price will
equal $0.09. The Company also agrees to reimburse SRA periodically, upon request, or upon termination of SRA’s services,
for SRA’s expenses incurred in connection with SRA’s financial advisory services, including fees and expenses of legal
counsel, travel expenses and printing. All such non-accountable fees and expenses shall not exceed a combined aggregate amount
of $15,000.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF INVESTOR

 

4.          Representations
and Warranties of the Investor. The Investor hereby represents and warrants to the Company as follows

 

4.1           Organization,
Authority If the Investor is an entity, such Investor is a corporation, partnership, limited liability company or partnership,
association, joint stock company, trust, unincorporated organization or other entity duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization with the requisite corporate, partnership or other power and authority
to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The purchase by such Investor of the Securities hereunder has been, to the extent such Investor is an
entity, duly authorized by all necessary corporate, partnership or other action on the part of such Investor. This Agreement has
been duly executed and delivered by such Investor and constitutes the valid and binding obligation of such Investor, enforceable
against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

4.2           Investment
Representations. In connection with the sale and issuance of the Securities, the Investor, for itself and no other Investor,
makes the following representations:

 

(a)          Investment
for Own Account. The Investor is acquiring the Securities for its own account, not as nominee or agent, and not with a view
to, or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act. The
Investor has no present intention of selling, granting any participation in, or otherwise distributing the Securities. The Investor
does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation in any
of the Securities to such person or to any third person.

 

(b)          SEC
Documents; Disclosure Materials. The Investor has received, read and fully understands the SEC Documents and the Disclosure
Material. The Investor acknowledges that the Investor is basing its decision to invest in the Securities on the Disclosure Material
and the exhibits thereto and has relied only on the information contained in said material and has not relied upon any representations
made by any other person. The Investor recognizes that an investment in the Securities involves substantial risks and is fully
cognizant of and understands all of the risk factors related to the purchase of the Securities, including but not limited to, those
risks set forth in the section of the SEC Documents and Disclosure Materials entitled “RISK FACTORS.”

 

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(c)          Investor
Status. At the time such Investor was offered the Securities, it was, at the date hereof it is, and on the date which it exercises
any Warrants it will be an “accredited investor” as defined in Rule 501(a) under the Securities Act or a “qualified
institutional buyer” as defined in Rule 144A(a) under the Securities Act. Such Investor is not a registered broker dealer
registered under Section 15(a) of the Exchange Act, or a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”)
or an entity engaged in the business of being a broker dealer. Such Investor is not affiliated with any broker dealer registered
under Section 15(a) of the Exchange Act, or a member of FINRA or an entity engaged in the business of being a broker dealer.

 

(d)          Representations
and Reliance. The Investor understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of the United States federal and state securities laws and that the Company is relying upon
the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Investor set forth
herein and in the Investor Suitability Questionnaire to determine the applicability of such exemptions and the suitability of the
Investor to acquire the Securities. All information which the Investor has provided to the Company, including but not limited to
all information given herein and in the Investor Suitability Questionnaire or otherwise, concerning itself, investor status, address,
residence, financial position and knowledge and experience of financial and business matters are correct and complete, and that
if there should be any material change in such information the Investor will immediately provide the Company with such information.
The Investor will promptly notify the Company of any material fact or circumstance that would cause any of the foregoing representations
to be untrue, incomplete, or misleading.

 

(e)          Restricted
Securities. The Investor understands that the Securities the Investor is purchasing are characterized as “restricted
securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under such laws and regulations such securities may be resold without registration under
the Securities Act only in certain limited circumstances. The Investor is familiar with Rule 144, as presently in effect, and
understands the resale limitations imposed thereby and by the Securities Act. The Investor also acknowledges that the Company
was a former “shell company” (as defined in Rule 12b-2 under the Exchange Act) and as such the Investor understands
Rule 144 is not currently available for the sale of the Securities and may never be so available.

 

(f)          Transfer
Restrictions; Legends. The Investor understands that (i) the Securities have not been registered under the Securities Act;
(ii) the Securities are being offered and sold pursuant to an exemption from registration, based in part upon the Company’s
reliance upon the statements and representations made by the Investor, and that the Securities must be held by the Investor indefinitely,
and that the Investor must, therefore, bear the economic risk of such investment indefinitely, unless a subsequent disposition
thereof is registered under the Securities Act or is exempt from such registration; and (iii) each Certificate representing the
Securities will be endorsed with a legend substantially in the following form until the earlier of (1) such date as the Securities
have been registered for resale by the Investor or (2) the date the Securities are eligible for sale under Rule 144.

 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES
LAWS OF ANY STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
UNLESS SOLD PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, THE ISSUER OF THESE SECURITIES MAY
REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE
IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

    	7

    	 

    

  

(g)          No
Public Market. The Investor understands and acknowledges that although the Company is currently traded on the OTC, no public
market now exists for any of the Securities and that the Company has made no assurances that a public market will ever exist for
the Securities.

 

(h)          No
Transfer. The Investor covenants not to dispose of any of the Securities other than in conjunction with an effective registration
statement under the Securities Act or in compliance with Rule 144 or pursuant to another exemption from registration or to an entity
affiliated with the Investor and other than in compliance with the applicable securities regulations laws of any state.

 

(i)          Investment
Experience. Investor acknowledges that the Investor is able to bear the economic risk of the Investor’s investment, including
the complete loss thereof. The Investor has a preexisting personal or business relationship with the Company or one or more of
its officers, directors or other persons in control of the Company, and the Investor has such knowledge and experience in financial
or business matters that it is capable of evaluating the merits and risks of the investment in the Securities.

 

(j)          Financial
Sophistication; Due Diligence. The Investor has such knowledge and experience in financial or business matters that it is capable
of evaluating the merits and risks of the investment in connection with the transactions contemplated in this Agreement. Such Investor
has, in connection with its decision to purchase the Securities, relied only upon the representations and warranties contained
herein and the information contained in the Company’s SEC Documents. Further, the Investor has had such opportunity to obtain
additional information and to ask questions of, and receive answers from, the Company, concerning the terms and conditions of the
investment and the business and affairs of the Company, as the Investor considers necessary in order to form an investment decision.

 

(k)          General
Solicitation. The Investor is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media or broadcast over the television or radio or presented
at any seminar or any other general solicitation or general advertisement. Prior to the time that the Investor was first contacted
by the Company or either of the Agents such Investor had a pre-existing and substantial relationship with the Company or one of
the Agents. The Investor will not issue any press release or other public statement with respect to the transactions contemplated
by this Agreement without the prior written consent of the Company. Other than to other parties to this Agreement, the Investor
has maintained and will continue to maintain the confidentiality of all disclosures made to Investor in connection with this transaction,
including the existence and terms of this transaction.

 

4.3           No
Investment, Tax or Legal Advice. The Investor understands that nothing in the Company SEC Documents, this Agreement, or any
other materials presented to the Investor in connection with the purchase and sale of the Securities constitutes legal, tax or
investment advice. The Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed
necessary or appropriate in connection with its purchase of Securities.

 

    	8

    	 

    

 

4.4           Disclosure
of Information. The Investor understands that no United States federal or state agency or any other government or governmental
agency has passed upon or made any recommendation or endorsement of the Securities. The Investor has reviewed the documents publicly
filed by the Company with the SEC and has read and understands the risk factors disclosed therein. The Investor has received all
the information it considers necessary or appropriate for deciding whether to purchase the Securities. The Investor is solely responsible
for conducting its own due diligence investigation of the Company.

 

4.5           Additional
Acknowledgement. The Investor acknowledges that it has independently evaluated the merits of the transactions contemplated
by this Agreement, that it has independently determined to enter into the transactions contemplated hereby, that it is not relying
on any advice from or evaluation by any other person. The Investor acknowledges that, if it is a client of an investment advisor
registered with the SEC, the Investor has relied on such investment advisor in making its decision to purchase Securities pursuant
hereto.

 

4.6           Subscription
Rejection Right. The Investor acknowledges that the Company reserves the right to reject any subscription, to accept any subscription
in part only, or to prorate subscriptions, to negotiate any checks or other tenders of payment for discrepant amounts and to refund
the excess to the Investor if (a) the Investor is not an "accredited investor" or otherwise fails to meet the investor
suitability requirements as set forth in the Investor Suitability Questionnaire, (b) fails to deliver payment of the purchase price,
or (c) fails to deliver the completed Investor Deliverables substantially in the form as reasonably acceptable to the Company.

 

4.7           No
Short Position As of the date hereof, and from the date hereof through the date of the Closing, the Investor acknowledges and
agrees that it does not and will not (between the date hereof and the date of the Closing) engage in any short sale of the Company’s
voting stock or any other type of hedging transaction involving the Company’s securities (including, without limitation,
depositing shares of the Company’s securities with a brokerage firm where such securities are made available by the broker
to other customers of the firm for purposes of hedging or short selling the Company’s securities).

 

ARTICLE V

ADDITIONAL COVENANTS

 

5.           Additional
Covenants.

 

5.1           Confidential
Information. The Investor covenants that it will maintain in confidence the receipt and content of any information provided
in connection with this Agreement until such information (a) becomes generally publicly available other than through a violation
of this provision by the Investor or its agents or (b) is required to be disclosed in legal proceedings (such as by deposition,
interrogatory, request for documents, subpoena, civil investigation demand, filing with any governmental authority or similar process);
provided, however, that before making any disclosure in reliance on this Section 5.1, the Investor will give the Company at least
15 days prior written notice (or such shorter period as required by law) specifying the circumstances giving rise thereto and the
Investor will furnish only that portion of the non-public information which is legally required and will exercise its best efforts
to ensure that confidential treatment will be accorded any non-public information so furnished; provided, further, that notwithstanding,
the Investor’s agreement to keep such information confidential, the Investor makes no such acknowledgement that any such
information is material, non-public information.

 

    	9

    	 

    

 

5.2           Transfer
Restrictions. The Investor covenants that the Securities will only be disposed of pursuant to an effective registration statement
under, and in compliance with the requirements of, the Securities Act or pursuant to an available exemption from the registration
requirements of the Securities Act, and in compliance with any applicable state securities laws. In connection with any transfer
of Securities other than pursuant to an effective registration statement or to the Company, or at such time that the Securities
may be sold without the requirement to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant
to Rule 144, the Company may require the transferor to provide to the Company an opinion of counsel selected by the transferor,
the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does
not require registration under the Securities Act. The Investor agrees to the imprinting of the restrictive legend in substantially
the form set forth in Section 4.2(f).

 

5.3           KleenSpeed
Acquisition. The Company agrees to use its best efforts to negotiate and consummate the proposed Acquisition with KleenSpeed.

 

ARTICLE VI

MISCELLANEOUS

 

6.           Miscellaneous.

 

6.1           Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to
the choice of law provisions thereof, and the federal laws of the United States.

 

6.2           Successors
and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors, and administrators of the parties hereto.

 

6.3           Entire
Agreement. This Agreement and the exhibits hereto, and the other documents delivered pursuant hereto, constitute the full and
entire understanding and agreement among the parties with regard to the subjects hereof and no party shall be liable or bound to
any other party in any manner by any representations, warranties, covenants, or agreements except as specifically set forth herein
or therein. Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties hereto
and their respective successors and assigns, any rights, remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided herein.

 

6.4           Severability.
In the event any provision of this Agreement shall be invalid, illegal, or unenforceable, it shall to the extent practicable, be
modified so as to make it valid, legal and enforceable and to retain as nearly as practicable the intent of the parties, and the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

6.5           Amendment
and Waiver. Except as otherwise provided herein, any term of this Agreement may be amended, modified, supplemented and the
observance of any term of this Agreement may be waived (either generally or in a particular instance, either retroactively or prospectively,
and either for a specified period of time or indefinitely), with the written consent of the Company and the holders of a majority
of the Common Shares sold in this Offering. Any amendment or waiver effected in accordance with this paragraph will be binding
upon each holder of any Securities purchased under this Agreement, each future holder of the Securities, and the Company.

 

6.6           Fees
and Expenses. Except as otherwise set forth herein, the Company and the Investor shall bear their own expenses and legal fees
incurred on their behalf with respect to this Agreement and the transactions contemplated hereby. Each party hereby agrees to indemnify
and to hold harmless of and from any liability the other party for any commission or compensation in the nature of a finder’s
fee to any broker or other person or firm (and the costs and expenses of defending against such liability or asserted liability)
for which such indemnifying party or any of its employees or representatives are responsible.

 

    	10

    	 

    

 

6.7           Notices.
All notices and other communications given or made pursuant to this Warrant Certificate shall be in writing and shall be deemed
effectively given upon the earlier of actual receipt or (i) personal delivery to the party to be notified, (ii) when sent, if sent
by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then
on the recipient’s next Business Day, (iii) five (5) days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (iv) one (1) Business Day after deposit with a nationally recognized overnight courier,
freight prepaid, specifying next Business Day delivery, with written verification of receipt. All communications shall be sent
to the respective parties at the address indicated for such party in the Purchase Agreement, or at such other address as such party
may designate by 10 days advance written notice to the other party given in the foregoing manner:

 

if to the Company, to:

 

Flux Power Holdings, Inc.

985 Poinsettia Avenue

Vista, California 92081

Fax (760) 741-3535

Attn: President

 

if to the Investor, at its address on the signature
page to this Agreement.

 

6.8           Survival
of Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement or by
any of the Agents, all covenants, agreements, representations and warranties made by the Company and the Investor herein shall
survive the execution of this Agreement, the delivery to the Investor of the Securities being purchased and the payment therefor,
and a party’s reliance on such representations and warranties shall not be affected by any investigation made by such party
or any information developed thereby.

 

6.9           Counterparts.
This Agreement may be executed by facsimile signature and in any number of counterparts, each of which shall be deemed an original,
but all of which together shall constitute one instrument.

 

[SIGNATURE PAGE FOLLOWS]

 

    	11

    	 

    

 

SUBSCRIPTION AGREEMENT
SIGNATURE PAGE

 

In addition to the
foregoing, Subscriber hereby certifies that it (a) agrees to all the terms and conditions of this Agreement, (b) meets the suitability
standards set forth in this Agreement, and (c) is a resident of the state and jurisdiction indicated below.

 

	 	Name of Investor:
	 	 
	 	By:	 
	 	 	Name
	 	 	Title:
	 	Address:	 

 

	 	State of Principal Residence:	 

 

	 	State of Incorporation/Organization:	

 

	 	EIN/Social Security Number:	 

 

	 	Telephone No.:	 

 

	 	Facsimile No.:	 

 

	 	Email Address:	 

 

	 	Number of Units:	 

 

	 	Aggregate Purchase Price :	 

  

Delivery Instructions (if different than above):

 

	c/o:	 	 

 

	Address:	 	 

 

	Telephone No.:	 	 

 

	Facsimile No. :	 	 

 

	Other Special Instructions:	 	 

 

    	 

    	 

    

 

SUBSCRIPTION ACCEPTED

 

	Date: 	 	 	 	FLUX POWER HOLDINGS, INC.

 

	 	 	By: 	 
	 	 	 	 
	 	 	Name:	Ronald Dutt
	 	 	 	 
	 	 	Title:	Chief Executive Officer and Acting Chief Financial Officer

  

    	 

    	 

    

 

EXHIBIT A

 

Investor Suitability Questionnaire

 

(Not Included)

 

    	 

    	 

    

 

EXHIBIT B

 

Form of Warrant Certificate

 

    	 

    	 

    

 

THIS WARRANT CERTIFICATE AND
THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
LAWS IS NOT REQUIRED.

 

FLUX POWER HOLDINGS, INC. 

  

WARRANT CERTIFICATE

 

	No.: W-___	 	Number of Warrants:         

________

Original Date of Issuance: _____ __, 2014

 

THIS WARRANT CERTIFICATE
certifies that for value received, _________ or its registered assigns (“Holder”) is entitled to subscribe for and
purchase, during the Term (as hereinafter defined), the number of warrants specified above, each of which entitles the holder thereof
to purchase during the term, one fully paid and non-assessable share of common stock, $.001 par value per share, of Flux Power
Holdings, Inc., (the “Issuer”), at an exercise price per share equal to $0.25 (the “Warrant Price”),
as may be adjusted,, subject, however, to the provisions and upon the terms and conditions hereinafter set forth. Capitalized terms
used in this Warrant Certificate (this “Warrant” or “Warrant Certificate”)
and not otherwise defined herein shall have the respective meanings specified in Section 6 hereof.

 

1.           Term.
The term of this Warrant Certificate shall commence on the Original Issue Date and shall expire at 6:00 p.m., Eastern Time, on
the third anniversary of the Original Issue Date (such period being the “Term”).

 

2.           Method
of Exercise; Payment; Issuance of New Warrant Certificate; Transfer and Exchange.

 

(a)          Time
of Exercise. The purchase rights represented by this Warrant Certificate may be exercised at anytime during the Term.

 

    	1

    	 

    

 

(b)          Method
of Exercise. Each Warrant shall entitle the Holder to purchase one share of common stock of the Issuer at the Warrant Price.
The Holder hereof may exercise the Warrants, in whole or in part, by the surrender of the Warrant Certificate (with the exercise
form attached hereto duly executed) at the principal office of the Issuer, and by the payment to the Issuer of an amount of consideration
therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares of Warrant Stock
with respect to which the Warrant Certificate is then being exercised, payable at such Holder’s election by certified or
official bank check or by wire transfer to an account designated by the Issuer.

 

(c)          Issuance
of Stock Certificates. In the event of any exercise of the Warrants in accordance with and subject to the terms and conditions
hereof, certificates for the shares of Warrant Stock so purchased shall be dated the date of such exercise and delivered to the
Holder hereof within a reasonable time

 

(d)          Transferability
of Warrant. Subject to Section 2(f) hereof, the Warrants may be transferred by a Holder, in whole or in part, without
the consent of the Issuer. If transferred pursuant to this paragraph, the Warrants may be transferred on the books of the Issuer
by the Holder hereof in person or by duly authorized attorney, upon surrender of this Warrant Certificate at the principal office
of the Issuer, properly endorsed (by the Holder executing an assignment in the form attached here to) and upon payment of any necessary
transfer tax or other governmental charge imposed upon such transfer. This Warrant Certificate is exchangeable at the principal
office of the Issuer for Warrants to purchase the same aggregate number of shares of Warrant Stock, each new Warrant to represent
the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange.
All Warrants issued on transfers or exchanges shall be dated the Original Issue Date and shall be identical with this Warrant Certificate
except as to the number of shares of Warrant Stock issuable pursuant thereto.

 

(e)          Compliance
with Securities Laws.

 

(i)          The
Holder of this Warrant Certificate, by acceptance hereof, acknowledges that the Warrants and the shares of Warrant Stock to be
issued upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party,
and for investment, and agrees that the Holder will not acquire the Warrant Stock, offer, sell or otherwise dispose of this Warrant
or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an
exemption from registration, under the Securities Act and any applicable state securities laws.

 

(ii)         This
Warrant Certificate and all certificates representing shares of Warrant Stock issued upon exercise hereof shall be stamped or imprinted
with a legend in substantially the following form:

 

THIS WARRANT CERTIFICATE, THE WARRANTS,
AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
LAWS IS NOT REQUIRED.

 

    	2

    	 

    

 

(f)          Loss,
Theft, Destruction of Warrants. Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft,
destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or
security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the
Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing
the right to purchase the same number of shares of Warrant Stock.

 

3.          Adjustment
of Warrant Price and Number of Shares Issuable Upon Exercise. The Warrant Price and the Warrant Share Number shall be subject
to adjustment from time to time as set forth in this Section 3. The Issuer shall give the Holder notice of any event described
below that requires an adjustment pursuant to this Section 3 in accordance with the notice provisions set forth in Section
4.

 

(a)          Recapitalization,
Reorganization, Reclassification, Consolidation, Merger or Sale.

 

(i)          In
case the Issuer after the Original Issue Date shall do any of the following (each, a “Triggering Event”):
(A) consolidate or merge with or into any other Person and the Issuer shall not be the continuing or surviving corporation of such
consolidation or merger, or (B) permit any other Person to consolidate with or merge into the Issuer and the Issuer shall be the
continuing or surviving Person but, in connection with such consolidation or merger, any Capital Stock of the Issuer shall be changed
into or exchanged for Securities of any other Person or cash or any other property, or (C) transfer all or substantially all of
its properties or assets to any other Person, or (D) effect a capital reorganization or reclassification of its Capital Stock,
then, and in the case of each such Triggering Event, proper provision shall be made to the Warrant Price and the number of shares
of Warrant Stock that may be purchased upon exercise of this Warrant Certificate so that, upon the basis and the terms and in the
manner provided in this Warrant Certificate the Holder of this Warrant Certificate shall be entitled upon the exercise hereof at
any time after the consummation of such Triggering Event, to the extent the Warrants are not exercised prior to such Triggering
Event, to receive at the Warrant Price as adjusted to take into account the consummation of such Triggering Event, in lieu of the
Warrant Stock issuable upon such exercise of the Warrants prior to such Triggering Event, the Securities, cash and property to
which such Holder would have been entitled upon the consummation of such Triggering Event if such Holder had exercised the rights
represented by this Warrant Certificate immediately prior thereto subject to adjustments (subsequent to such corporate action)
as nearly equivalent as possible to the adjustments provided for elsewhere in this Section 3. Upon the occurrence of a Triggering
Event, the Issuer shall notify the Holder in writing of such Triggering Event and provide the calculations in determining the amount
of issuable Securities, cash or property issuable upon exercise of the new warrant and the adjusted Warrant Price. Upon the Holder’s
request, the continuing or surviving corporation as a result of such Triggering Event shall issue to the Holder a new warrant of
like tenor evidencing the right to purchase the adjusted amount of Securities, cash or property and the adjusted Warrant Price
pursuant to the terms and provisions of this Section 3(a)(i).

 

(b)           Stock
Dividends, Subdivisions and Combinations. If at any time the Issuer shall:

 

(i)          make
or issue or set a record date for the holders of the Common Stock for the purpose of entitling them to receive a dividend payable
in, or other distribution of, shares of Common Stock,

 

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(ii)         subdivide
its outstanding shares of Common Stock into a larger number of shares of Common Stock, or

 

(iii)        combine
its outstanding shares of Common Stock into a smaller number of shares of Common Stock,

 

then (A) the number of
shares of Warrant Stock for which this Warrant Certificate is exercisable immediately after the occurrence of any such event shall
be adjusted to equal the number of shares of Warrant Stock which a record holder of the same number of shares of Warrant Stock
for which this Warrant Certificate is exercisable immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (B) the Warrant Price then in effect shall be adjusted to equal (1) the Warrant
Price then in effect multiplied by the number of shares of Warrant Stock for which this Warrant is exercisable immediately prior
to the adjustment divided by (2) the number of shares of Warrant Stock for which this Warrant is exercisable immediately after
such adjustment.

 

4.          Notice
of Adjustments. Whenever the Warrant Price or Warrant Share Number is adjusted pursuant to Section 3 hereof (for purposes
of this Section 4, each an “Adjustment”), the Issuer shall cause its Chief Financial Officer
to prepare and execute a certificate setting forth, in reasonable detail, the event requiring the Adjustment, the amount of the
Adjustment, the method by which such Adjustment was calculated (including a description of the basis on which the Board made any
determination hereunder), and the Warrant Price and Warrant Share Number after giving effect to such Adjustment, and shall cause
copies of such certificate to be delivered to the Holder of this Warrant Certificate promptly after each Adjustment.

 

5.          Fractional
Shares. No fractional shares of Warrant Stock will be issued in connection with any exercise hereof, but in lieu of such fractional
shares, the Issuer shall round the number of shares to be issued upon exercise up to the nearest whole number of shares.

 

6.          Definitions.
For the purposes of this Warrant Certificate, the following terms have the following meanings:

 

“Board”
shall mean the Board of Directors of the Issuer.

 

“Capital
Stock” means and includes (i) any and all shares, interests, participations or other equivalents of or interests
in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership
interests (whether general or limited) in any Person which is a partnership, (iii) all membership interests or limited liability
company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type.

 

“Common
Stock” means the common stock, $0.001 par value per share, of the Issuer and any other Capital Stock into which such
stock may hereafter be changed.

 

“Holders”
mean the Persons who shall from time to time own any Warrant. The term “Holder” means one of the Holders.

 

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“Issuer”
means Flux Power Holdings, Inc., a Nevada corporation, and its successors.

 

“Original Issue Date”
means date set forth on face of this Warrant Certificate.

 

“Offering”
means the Issuer’s offering to sell up to 11 Units for aggregate amount of $990,000 (which amount may be increased at sole
discretion of Issuer), for $90,000 per Unit, or $.09 per common share with each Unit consisting of 1,000,000 shares of Common Stock
and 500,000 Warrants.

 

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

 

“Purchase
Agreement” means the Unit Subscription Agreement dated as of _________________, 2014 between the Issuer and the Investor.

 

“Securities”
means any debt or equity securities of any Person, whether now or hereafter authorized, any instrument convertible into or exchangeable
for Securities or a Security, and any option, warrant or other right to purchase or acquire any Security. “Security”
means one of the Securities.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any similar federal statute then in effect.

 

“Term”
has the meaning specified in Section 1 hereof.

 

“Warrants”
means the Warrants issued and sold pursuant to the Purchase Agreement, including, without limitation, this Warrant Certificate,
and any other warrants of like tenor issued in substitution or exchange for any thereof pursuant to the provisions of Section 2
hereof or of any of such other Warrants.

 

“Warrant
Price” initially means $0.25 per share, as such price may be adjusted from time to time as shall result from the
adjustments specified in this Warrant Certificate, including Section 3 hereto.

 

“Warrant
Share Number” means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased
upon exercise of this Warrant Certificate, after giving effect to all prior adjustments and increases to such number made or required
to be made under the terms hereof.

 

“Warrant
Stock” means Common Stock issued or issuable upon exercise of any Warrant or Warrants or otherwise issuable pursuant
to any Warrant or Warrants.

 

7.          Amendment
and Waiver. Any term, covenant, agreement or condition in this Warrant Certificate may be amended or waived (either generally
or in a particular instance and either retroactively or prospectively) only with the written consent of the Issuer and the Holder.

 

8.          Governing
Law. This Warrant Certificate shall be governed by and construed in accordance with the internal laws of the State of Nevada,
without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of
another jurisdiction. This Warrant Certificate shall not be interpreted or construed with any presumption against the party causing
this Warrant Certificate to be drafted.

 

    	5

    	 

    

 

9.          Notices.
All notices and other communications given or made pursuant to this Warrant Certificate shall be in writing and shall be deemed
effectively given upon the earlier of actual receipt or: (i) personal delivery to the party to be notified, (ii) when sent, if
sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours,
then on the recipient’s next business day, (iii) five (5) days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (iv) one (1) business day after deposit with a nationally recognized overnight courier,
freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent
to the respective parties at the address indicated for such party in the Purchase Agreement, or at such other address as such party
may designate by 10 days advance written notice to the other party given in the foregoing manner.

 

10.         Successors
and Assigns. This Warrant Certificate and the rights evidenced hereby shall inure to the benefit of and be binding upon the
successors and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the holders of Warrant Stock issued
pursuant hereto, and shall be enforceable by any such Holder or holder of Warrant Stock.

 

11.         Modification
and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein,
any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make
it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability
of such provision shall not affect the other provisions of this Warrant Certificate, but this Warrant Certificate shall be construed
as if such unenforceable provision had never been contained herein.

 

12.         Titles
and Subtitles. The titles and subtitles used in this Warrant Certificate are used for convenience only and are not to be considered
in construing or interpreting this Warrant Certificate.

 

13.         Force
Majeure. Neither party shall be liable for any delays or failures in performance resulting from acts beyond its reasonable
control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions
or malfunction of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage
or retrieval systems, labor difficulties, war, or civil unrest.

 

IN WITNESS WHEREOF,
the Issuer has executed this Warrant Certificate as of the day and year first above written.

 

	 	FLUX POWER HOLDINGS, INC.
	 	 
	 	By:	 
	 	 	Name: Ronald Dutt
	 	 	Title: Chief Executive Officer and Acting Chief Financial Officer

 

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EXERCISE FORM

WARRANT

FLUX POWER HOLDINGS, INC.

 

The undersigned                                         ,
pursuant to the provisions of the within Warrant Certificate (the “Warrant”), hereby elects to exercise
                                
warrants to purchase                                   shares of Common
Stock of Flux Power Holdings, Inc. covered by the Warrant.

 

Number of shares of Common Stock beneficially owned or deemed
beneficially owned by the Holder on the date of Exercise:

 

Holder represents and warrants that Holder
is acquiring the Warrant Stock pursuant to an effective registration statement, or an exemption from registration, under the Securities
Act and any applicable state securities laws.

 

The undersigned intends that payment of the Warrant Price shall
be made as a cash exercise.

 

	Dated:	 	 	 	Signature	 
	 	 	 
	 	 	Print	 
	 	 	Name	 
	 	 	Address	 

 

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ASSIGNMENT

 

FOR VALUE RECEIVED, hereby sells, assigns
and transfers unto    ,              warrants
under Warrant Certificate No. ____ and all rights evidenced thereby and does irrevocably constitute and appoint _____________,
attorney, to transfer the said Warrant on the books of the within named corporation.

 

	Dated:	 	 	 	Signature	 
	 	 	 	 	 
	 	 	 	Address	 
	 	 	 	 	 
	 	 	 	 	 

 

FOR USE BY THE ISSUER ONLY:

 

This Warrant Certificate
No. W-        cancelled (or transferred or exchanged) this _____ day of                                           ,
                                              
shares of Common Stock issued therefor in the name of                      ,
Warrant No. W-             issued for                         
shares of Common Stock in the name of                                       .

 

    	8

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