Document:

stxb-ex43_8.htm

 

Exhibit 4.3

DESCRIPTION OF THE COMPANY’S COMMON STOCK 

REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT OF 1934

 

 

The following summary describes the material features and rights of the shares of common stock (the “common stock”) of Spirit of Texas Bancshares, Inc. (referred to herein as the “Company,” “our,” “us,” or “we”). This summary does not purport to be a complete description of the terms and conditions of our common stock and is subject to, and qualified in its entirety by, applicable law and the provisions of our second amended and restated certificate of formation, as amended (our “certificate of formation”), and our amended and restated bylaws (our “bylaws”), each of which is filed as an exhibit to our Annual Report on Form 10‐K for the year ended December 31, 2021 (the “2021 Form 10-K”) of which this Exhibit 4.3 is a part, and the Texas Business Organizations Code (the “TBOC”).

 

General

We are incorporated in the State of Texas. The rights of our shareholders are generally covered by Texas law and our certificate of formation and bylaws. The terms of our capital stock are therefore subject to Texas law, including the TBOC, and the common and constitutional law of Texas. 

Our certificate of formation authorizes us to issue up to 50,000,000 shares of common stock, no par value per share, and 5,000,000 shares of preferred stock, par value $1.00 per share. The authorized but unissued shares of our capital stock will be available for future issuance without shareholder approval, unless otherwise required by applicable law or the rules of any applicable securities exchange.

Voting Rights

Subject to any special voting rights that may be given to any series of preferred stock that we may issue in the future, holders of our common stock are entitled to one vote per share in the election of directors and on all other matters submitted to a vote of our shareholders. Directors are elected by a plurality of the votes cast. Shareholders are not entitled to cumulate their votes with respect to the election of directors.

Dividend Rights

Holders of our common stock are entitled to dividends when, as, and if declared by our board of directors out of funds legally available therefor.

Liquidation Rights

Upon any voluntary or involuntary liquidation, receivership or dissolution, all shares of our common stock will be entitled to share equally in all remaining assets after the holders of shares of preferred stock or other senior securities have received the liquidation preference of their shares, and after all other indebtedness, if any, has been retired.

Other

Our common stock has no preemptive or conversion rights and is not entitled to the benefits of any redemption or sinking fund provision.

Listing

Our common stock is listed on the NASDAQ Global Select Market under the symbol “STXB.”

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.

 

 

 

 

Business Combinations under Texas Law

A number of provisions of Texas law and our certificate of formation and bylaws could have an anti-takeover effect and make any potential acquisition of our organization by means of a tender offer, a proxy contest or otherwise and the removal of incumbent directors more difficult. These provisions are intended to discourage coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of our company to negotiate first with our board of directors.

We are subject to the provisions of Title 2, Chapter 21, Subchapter M of the TBOC, which provides that a Texas corporation that qualifies as an “issuing public corporation” (as defined in the Texas Business Combination Law) may not engage in specified types of “business combinations” with a person, or an affiliate or associate of that person, who is an “affiliated shareholder.” For purposes of this law, a “business combination” is defined generally to include: mergers or share exchanges; dispositions of assets having an aggregate value equal to 10% or more of the market value of the assets or of the outstanding common stock or representing 10% or more of the earning power or net income of the corporation; certain issuances or transactions by the corporation that would increase the affiliated shareholder’s number of shares of the corporation; certain liquidations or dissolutions; and the receipt of tax, guarantee, loan or other financial benefits by an affiliated shareholder of the corporation. For purposes of this law, an “affiliated shareholder” is, or was, during the prior three years, the beneficial owner of 20% or more of the corporation’s voting shares. The prohibition on certain transactions with such affiliated shareholders extends for a three-year period from the date such shareholder first becomes an affiliated shareholder. These prohibitions do not apply if:

 

	
 
	
•
	
 
	
the business combination or the acquisition of shares by the affiliated shareholder was approved by the board of directors of the corporation before the affiliated shareholder became an affiliated shareholder; or

 

	
 
	
•
	
 
	
the business combination was approved by the affirmative vote of the holders of at least two-thirds of the outstanding voting shares of the corporation not beneficially owned by the affiliated shareholder or an affiliate or associate of the affiliated shareholder, at a meeting of shareholders called for that purpose, not less than six months after the affiliated shareholder became an affiliated shareholder.

As we currently have more than 100 shareholders, we are considered an “issuing public corporation” for purposes of this law. The Texas Business Combination Law does not apply to the following:

 

	
 
	
•
	
 
	
the business combination of an issuing public corporation: where the corporation’s original certificate of formation or bylaws contain a provision expressly electing not to be governed by the Texas Business Combination Law; or that adopts an amendment to its certificate of formation or bylaws, by the affirmative vote of the holders, other than affiliated shareholders or an affiliate or associate of the affiliated shareholder, of at least two-thirds of the outstanding voting shares of the corporation, expressly electing not to be governed by the Texas Business Combination Law and so long as the amendment does not take effect for 18 months following the date of the vote and does not apply to a business combination with an affiliated shareholder who became affiliated on or before the effective date of the amendment;

 

	
 
	
•
	
 
	
a business combination of an issuing public corporation with an affiliated shareholder that became an affiliated shareholder inadvertently, if the affiliated shareholder divests itself, as soon as practicable, of enough shares to no longer be an affiliated shareholder and would not at any time within the three-year period preceding the announcement of the business combination have been an affiliated shareholder but for the inadvertent acquisition;

 

	
 
	
•
	
 
	
a business combination with an affiliated shareholder who became an affiliated shareholder through a transfer of shares by will or intestacy and continuously was an affiliated shareholder until the announcement date of the business combination; and

 

	
 
	
•
	
 
	
a business combination of a corporation with its wholly-owned subsidiary, if the subsidiary is a Texas entity and not an affiliate or associate of the affiliated shareholder other than by reason of the affiliated shareholder’s beneficial ownership of voting shares of the corporation.

Neither our certificate of formation nor our bylaws contains any provision expressly providing that we will not be subject to the Texas Business Combination Law. As a result, the Texas Business Combination Law may prevent a non-negotiated merger or other business combination involving us, even if such a merger or combination would be beneficial to our shareholders.

Action by Written Consent

Under Texas law, no action required or permitted to be taken at an annual or special meeting of shareholders may be taken by written consent in lieu of a meeting of shareholders without the unanimous written consent of all shareholders entitled to vote on the action unless the certificate of formation specifically allows action to be taken by a written consent of the shareholders holding at least the minimum number of shares necessary to take the action that is subject to that consent at a meeting of shareholders, even though such consent is not signed by all of the corporation’s shareholders. Our certificate of formation does not provide for shareholder action by less than unanimous written consent.

 

 

Certain Certificate of Formation and Bylaw Provisions Potentially Having an Anti-takeover Effect

Certain provisions of our certificate of formation and bylaws as in effect on the date of the 2020 Form 10-K may have an anti-takeover effect and thus discourage potential takeover attempts and make it more difficult for our shareholders to change management or receive a premium for their shares. These provisions include:

 

	
 
	
•
	
 
	
staggered terms for directors, who may only be removed for cause;

 

	
 
	
•
	
 
	
authorization for our board of directors to issue shares of one or more series of preferred stock without shareholder approval and upon such terms as our board of directors may determine;

 

	
 
	
•
	
 
	
a prohibition of shareholder action by less than unanimous written consent;

 

	
 
	
•
	
 
	
a prohibition of cumulative voting in the election of directors;

 

	
 
	
•
	
 
	
a provision establishing certain advance notice procedures for nomination of candidates for election of directors and for shareholder proposals; and

 

	
 
	
•
	
 
	
a limitation on the ability of shareholders to call special meetings to those shareholders or groups of shareholders owning at least 50% of our shares of common stock that are issued, outstanding and entitled to vote.

In addition to these provisions of our certificate of formation and bylaws, banking laws impose notice, approval and ongoing regulatory requirements on any shareholder or other party that seeks to acquire direct or indirect “control” of an FDIC-insured depository institution. These laws include the Bank Holding Company Act of 1956 and the Change in Bank Control Act of 1978. These laws could delay or prevent an acquisition.

Exclusive Forum

Our certificate of formation provides that the state and federal courts located in Montgomery County, Texas will, to the fullest extent permitted by law, be the sole and exclusive forum for (a) any actual or purported derivative action or proceeding brought on our behalf, (b) any action asserting a claim of breach of a fiduciary duty owed by any of our directors or officers, (c) any action asserting a claim against us or any of our directors or officers arising pursuant to the TBOC, our certificate of formation or our bylaws, (d) any action to interpret, apply, enforce or determine the validity of our certificate of formation or bylaws, or (e) any action asserting a claim against us or any of our directors or officers that is governed by the internal affairs doctrine. The choice of forum provision in our certificate of formation may limit our shareholders’ ability to obtain a favorable judicial forum for disputes with us. Alternatively, if a court were to find the choice of forum provision contained in our certificate of formation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, operating results and financial condition.

Limitation of Liability and Indemnification of Officers and Directors

Our certificate of formation provides that our directors and officers will be indemnified by us to the fullest extent permitted by the TBOC, against all expenses incurred in connection with their service for or on our behalf. In addition, our certificate of formation provides that our directors and officers will not be personally liable for monetary damages to us to the fullest extent permitted by the TBOC.

We have entered into indemnification agreements with our directors and officers pursuant to which they are indemnified as described above. We also, among other things, have agreed to advance costs and expenses subject to the condition that an indemnitee shall reimburse the indemnitor for all the amounts paid if a final judicial determination is made that the indemnitee is not entitled to be so indemnified under applicable law and regulation.Exhibit 10.11

 

EARLYBIRDCAPITAL, INC.

366 Madison Avenue

New York, New York 10017

 

[*] 2022

 

RF Acquisition Corp.

111 Somerset, #05-06

Singapore 238164

 

Attn: Tse Meng Ng

 

Ladies and Gentlemen:

 

This is to confirm our agreement
whereby RF Acquisition Corp., a Delaware corporation (“Company”), has requested EarlyBirdCapital, Inc. (the “Advisor”)
to assist it in connection with the Company merging with, acquiring shares of, engaging in a share exchange, share reconstruction, recapitalization
and amalgamation, purchasing all or substantially all of the assets of, entering into contractual arrangements, or engaging in any other
similar business combination (in each case, a “Business Combination”) with one or more businesses or entities (each
a “Target”) as described in the Company’s Registration Statement on Form S-1 (File No. 333-261765) filed with
the Securities and Exchange Commission (“Registration Statement”) in connection with its initial public offering (“IPO”).

 

		1.	Services and Fees.

 

		(a)	The Advisor will:

 

		(i)	Hold meetings with Company shareholders to discuss the Business Combination
and the Target’s attributes;

 

		(ii)	Introduce the Company to potential investors to purchase the Company’s
securities in connection with the Business Combination; 

 

		(iii)	Assist the Company with the Company’s proxy statement or tender offer
materials; and

 

		(iv)	Assist the Company with any press releases and filings related to the Business
Combination or the Target.

 

(b)          As compensation for the foregoing services, the Company will pay the Advisor a cash fee equal to
3.5% of the gross proceeds received by the Company in the IPO (“Transaction Fee”); provided, that, in the Company’s
discretion, up to 30% of the Transaction Fee may be paid to other FINRA members that assist the Company in consummating a Business Combination.
The Transaction Fee is due and payable in cash to the Advisor by wire transfer at the closing of the Business Combination (“Closing”)
from the Trust Account. If a proposed Business Combination is not consummated for any reason, no Transaction Fee shall be due or payable
to the Advisor hereunder. 

 

     

     

    

 

(c)           In
addition to the Transaction Fee, the Company shall pay to Advisor a cash fee equal to 1.0% of the Total Consideration (as defined below)
in the event that the Advisor introduces the Company to the Target with which the Company completes a Business Combination (“Finder
Fee” and together with the Transaction Fee, the “Fee”). Any Finder Fee, if applicable is due and payable
in cash to the Advisor by wire transfer at the Closing, provided that the Finder Fee shall not be paid prior to the date that is 90 days
after the effective date of the Registration Statement unless the Financial Industry Regulatory Authority determines that such payment
would not be deemed underwriters’ compensation in connection with the IPO.

 

(d)           For
purposes of this Agreement, “Total Consideration” means the total value of all cash, securities, or other property
paid or transferred at the Closing (or Closings) by or to the Company, the Target and/or their respective shareholders or to be paid
or transferred in the future to such parties with respect to such Business Combination (other than payments of interest or dividends),
including, without limitation, any value paid in respect of (i) the assets of the Company or Target, (ii) the capital stock of the Company
or Target (and any securities convertible into options, warrants or other rights to acquire such capital stock), and (iii) the assumption,
retirement or defeasance, directly or indirectly (by operation of law or otherwise), of any long-term liabilities of the Company or Target
or repayment of indebtedness, including, without limitation, indebtedness secured by the assets of the Company or Target, capital leases
or preferred stock obligations. Notwithstanding the foregoing, if the Business Combination contemplates the Target being the surviving
entity in the Business Combination and issuing its securities to the Company as consideration, the Total Consideration will be deemed
to be the fair market value of the Target as indicated in the Business Combination’s definitive acquisition agreement and proxy
materials. If Total Consideration paid or transferred in the Business Combination includes non-cash consideration consisting of ordinary
shares, options, warrants or rights for which a public trading market existed prior to the Closing, then the value of such securities
shall be determined by the closing or last sales price thereof on the date immediately prior to the Closing. If such non-cash consideration
consists of newly-issued, publicly traded ordinary shares, options, warrants or rights for which no public trading market existed prior
to the Closing, then the value thereof shall be determined by reference to the Business Combination’s definitive acquisition agreement
and proxy materials. If all or a portion of the Total Consideration paid or transferred in the Business Combination is other than cash
and securities (as described above), then the value of such other consideration shall be the fair market value thereof on the Closing
as mutually agreed upon in good faith by the Company and Advisor. Any amounts payable or transferable to the Company or Target, or any
affiliate of the Company or Target or any shareholder of the Company or Target in connection with a non-competition agreement or any
employment, consulting, licensing, supply, transfer, assignment, forbearance or other agreement (whether by separate agreement or in
the Transactions documents), to the extent that such amounts payable are greater than what would customarily be paid on an arms-length
basis, shall be deemed to be part of the Total Consideration paid in the Business Combination. If all or a portion of the Total Consideration
payable or transferable in connection with a Business Combination includes future payments, whether or not in escrow, then the Company
shall pay Advisor any additional cash fee, determined in accordance with this Section 1, when, and if such payments are made.

 

		2.	Expenses.

 

At the Closing, the Company
shall reimburse the Advisor for all reasonable costs and expenses incurred by the Advisor (including reasonable fees and disbursements
of counsel) in connection with the performance of its services hereunder up to a maximum amount of $30,000. Reimbursable expenses shall
be due and payable to the Advisor by wire transfer at the Closing from the Trust Account.

 

     

     

    

 

		3.	Company Cooperation.

 

The Company will provide full
cooperation to the Advisor as may be necessary for the efficient performance by the Advisor of its obligations hereunder, including, but
not limited to, providing to the Advisor and its counsel, on a timely basis, all documents and information regarding the Company and Target
that the Advisor may reasonably request or that are otherwise relevant to the Advisor’s performance of its obligations hereunder
(collectively, the “Information”); making the Company’s management, auditors, consultants and advisors available
to the Advisor; and, using commercially reasonable efforts to provide the Advisor with reasonable access to the management, auditors,
suppliers, customers, consultants and advisors of Target. The Company will promptly notify the Advisor of any change in facts or circumstances
or new developments affecting the Company or Target or that might reasonably be considered material to the Advisor’s engagement
hereunder.

 

		4.	Representations; Warranties and Covenants.

 

The
Company represents, warrants and covenants to the Advisor that all Information it makes available to the Advisor by or on behalf of the
Company in connection with the performance of its obligations hereunder will not contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make statements made, in light of the circumstances under which they were made, not misleading
as of the date thereof and as of the consummation of the Business Combination.

 

		5.	Indemnity.

 

The Company shall indemnify
the Advisor and its affiliates and its and their respective directors, officers, employees, shareholders, representatives and agents in
accordance with the indemnification provisions set forth in Annex I hereto, all of which are incorporated herein by reference.

 

Notwithstanding the foregoing
and Annex I, the Advisor agrees, if there is no Closing, (i) that it does not have any right, title, interest or claim of any kind in
or to any monies in the Company’s trust account (“Trust Account”) established in connection with the IPO with
respect to the foregoing indemnity (each, a “Claim”); (ii) to waive any Claim it may have in the future as a result
of, or arising out of, any services provided to the Company hereunder; and (iii) to not seek recourse against the Trust Account with respect
to any Claim.

 

		6.	Use of Name and Reports.

 

Without the Advisor’s
prior written consent, neither the Company nor any of its affiliates (nor any director, officer, manager, partner, member, employee, representative
or agent thereof) shall quote or refer to (i) the Advisor’s name or (ii) any advice rendered by the Advisor to the Company or any
communication from the Advisor in connection with performance of their services hereunder, except as required by applicable federal or
state law, regulation or securities exchange rule. The Advisor hereby consents to the use of the Advisor’s name and a description
of this Agreement, including a general description of the services to be provided by the Advisor hereunder and the Fee, in the Registration
Statement and the preliminary and final prospectus included as a part of the Registration Statement, the Company’s registration
statement filed pursuant to the Securities Exchange Act of 1934, as amended, the Company’s current reports on Form 8-K filed in
connection with the IPO, the Company’s periodic reports on Forms 10-K and 10-Q, and any proxy statement, prospectus, or tender offer
materials prepared by or on behalf of the Company in connection with the Business Combination.

 

     

     

    

 

		7.	Status as Independent Contractor.

 

The Advisor shall perform
its services as an independent contractor and not as an employee of the Company or affiliate thereof. It is expressly understood and agreed
to by the parties that the Advisor shall have no authority to act for, represent or bind the Company or any affiliate thereof in any manner,
except as may be expressly agreed to by the Company in writing. In rendering such services, the Advisor will be acting solely pursuant
to a contractual relationship on an arm’s-length basis. This Agreement is not intended to create a fiduciary relationship between
the parties and neither the Advisor nor any of the Advisor’s officers, directors or personnel will owe any fiduciary duty to the
Company or any other person in connection with any of the matters contemplated by this Agreement.

 

		8.	Potential Conflicts.

 

The Company acknowledges that
the Advisor is a full-service securities firm engaged in securities trading and brokerage activities and providing investment banking
and advisory services from which conflicting interests may arise. In the ordinary course of business, the Advisor and its affiliates may
at any time hold long or short positions, and may trade or otherwise effect transactions, for their own account or the accounts of customers,
in debt or equity securities of the Company, its affiliates or other entities that may be involved in the transactions contemplated hereby.
Nothing in this Agreement shall be construed to limit or restrict the Advisor or any of its affiliates in conducting such business.

 

		9.	Entire Agreement.

 

This Agreement constitutes
the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings,
oral or written, with respect thereto. This Agreement may not be modified or terminated orally or in any manner other than by an agreement
in writing signed by the parties hereto.

 

		10.	Notices.

 

Any notices required or permitted
to be given hereunder shall be in writing and shall be deemed given when mailed by certified mail or private courier service, return receipt
requested, addressed to each party at its respective addresses set forth above, or such other address as may be given by a party in a
notice given pursuant to this Section.

 

		11.	Successors and Assigns.

 

This Agreement may not be
assigned by either party without the written consent of the other. This Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and, except where prohibited, to their successors and assigns.

 

     

     

    

 

		12.	Non-Exclusivity.

 

Nothing herein shall be deemed
to restrict or prohibit the engagement by the Company of other consultants providing the same or similar services or the payment by the
Company of fees to such other consultants. The Company’s engagement of any other consultant(s) shall not affect the Advisor’s
right to receive the Fee and reimbursement of expenses pursuant to this Agreement.

 

		13.	Applicable Law; Venue.

 

This Agreement shall be construed
and enforced in accordance with the laws of the State of New York without giving effect to conflict of laws. In the event of any dispute
under this Agreement, then and in such event, each party hereto agrees that the dispute shall either be (i) resolved through final and
binding arbitration in accordance with the International Arbitration Rules of the American Arbitration Association (the “AAA”)
or (ii) be brought and enforced in the courts of the State of New York, County of New York under the accelerated adjudication procedures
of the Commercial Division, or the United States District Court for the Southern District of New York, in each event at the discretion
of the party initiating the dispute. Once a party files a dispute (if arbitration, by sending JAMS a Demand for Arbitration) with one
of the above forums, the parties agree that all issues regarding such dispute or this Agreement must be resolved before such forum rather
than seeking to resolve it through another alternative forum set forth above. In the event the dispute is brought before the AAA, the
arbitration shall be brought before the AAA International Center for Dispute Resolution’s offices in New York City, New York, will
be conducted in English and will be decided by a panel of three arbitrators selected from the AAA Commercial Disputes Panel. Each of the
parties agrees that the decision and/or award made by the arbitrators shall be final and enforceable by any court having jurisdiction
over the party from whom enforcement is sought. Furthermore, the parties to any such arbitration shall be entitled to make one motion
for summary judgment within 60 days of the commencement of the arbitration, which shall be decided by the arbitrator(s) prior to the commencement
of the hearings. In the event the dispute is brought by a party in the courts of the State of New York or the United States District Court
for the Southern District of New York, each party irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. Each
party hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any such process
or summons to be served upon a party may be served by transmitting a copy thereof by registered or certified mail, postage prepaid, addressed
to such party at the address set forth at the beginning of this Agreement. Such mailing shall be deemed personal service and shall be
legal and binding upon the party being served in any action, proceeding or claim. The parties agree that the prevailing party(ies) in
any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses relating
to such action or proceeding and/or incurred in connection with the preparation therefor.

 

		14.	Counterparts.

 

This
Agreement may be executed in several original or facsimile counterparts, each one of which shall constitute an original, and together
shall constitute but one instrument.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

 

If the foregoing correctly
sets forth the understanding between the Advisor and the Company with respect to the foregoing, please so indicate your agreement by signing
in the place provided below, at which time this letter shall become a binding contract.

 

	 	EARLYBIRDCAPITAL, INC.
	 	 
	 	By:	                              
	 	Name:
	 	Title:

 

	AGREED AND ACCEPTED BY:	 
	 	 
	RF ACQUISITION CORP.	 
	 	 
	By:	                          	 
	Name: Tse Meng Ng	 
	Title: Chief Executive Officer	 

 

[Signature Page to Business Combination Marketing
Agreement]

 

     

     

    

 

ANNEX I

 

Indemnification

 

In connection with the Company's
engagement of EarlyBirdCapital, Inc. (the “Advisor”) pursuant to that certain letter agreement (“Agreement”)
of which this Annex forms a part, RF Acquisition Corp. (the “Company”) hereby agrees, subject to the second paragraph
of Section 5 of the Agreement, to indemnify and hold harmless the Advisor and its affiliates and their respective directors, officers,
shareholders, agents and employees of any of the foregoing (collectively the “Indemnified Persons”), from and against
any and all claims, actions, suits, proceedings (including those of shareholders), damages, liabilities and expenses incurred by any of
them (including the reasonable fees and expenses of counsel), as incurred, (collectively a “Claim”), that (A) are related
to or arise out of (i) any actions taken or omitted to be taken (including any untrue statements made or any statements omitted to be
made) by the Company, or (ii) any actions taken or omitted to be taken by any Indemnified Person in connection with the Company's engagement
of the Advisor, or (B) otherwise relate to or arise out of the Advisor's activities on the Company's behalf under the Advisor's engagement,
and the Company shall reimburse any Indemnified Person for all expenses (including the reasonable fees and expenses of counsel) as incurred
by such Indemnified Person in connection with investigating, preparing or defending any such claim, action, suit or proceeding, whether
or not in connection with pending or threatened litigation in which any Indemnified Person is a party. The Company will not, however,
be responsible for any Claim that is finally judicially determined to have resulted from the gross negligence or willful misconduct of
any person seeking indemnification for such Claim. The Company further agrees that no Indemnified Person shall have any liability to the
Company for or in connection with the Company's engagement of the Advisor except for any Claim incurred by the Company as a result of
such Indemnified Person's gross negligence or willful misconduct.

 

The Company further agrees
that it will not, without the prior written consent of the Advisor, settle, compromise or consent to the entry of any judgment in any
pending or threatened Claim in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is an actual
or potential party to such Claim), unless such settlement, compromise or consent includes an unconditional, irrevocable release of each
Indemnified Person from any and all liability arising out of such Claim.

 

Promptly upon receipt by an
Indemnified Person of notice of any complaint or the assertion or institution of any Claim with respect to which indemnification is being
sought hereunder, such Indemnified Person shall notify the Company in writing of such complaint or of such assertion or institution but
failure to so notify the Company shall not relieve the Company from any obligation it may have hereunder, except and only to the extent
such failure results in the forfeiture by the Company of substantial rights and defenses. If the Company so elects or is requested by
such Indemnified Person, the Company will assume the defense of such Claim, including the employment of counsel reasonably satisfactory
to such Indemnified Person and the payment of the fees and expenses of such counsel. In the event, however, that legal counsel to such
Indemnified Person reasonably determines that having common counsel would present such counsel with a conflict of interest or if the defendant
in, or target of, any such Claim, includes an Indemnified Person and the Company, and legal counsel to such Indemnified Person reasonably
concludes that there may be legal defenses available to it or other Indemnified Persons different from or in addition to those available
to the Company, then such Indemnified Person may employ its own separate counsel to represent or defend him, her or it in any such Claim
and the Company shall pay the reasonable fees and expenses of such counsel. Notwithstanding anything herein to the contrary, if the Company
fails timely or diligently to defend, contest, or otherwise protect against any Claim, the relevant Indemnified Party shall have the right,
but not the obligation, to defend, contest, compromise, settle, assert crossclaims, or counterclaims or otherwise protect against the
same, and shall be fully indemnified by the Company therefor, including without limitation, for the reasonable fees and expenses of its
counsel and all amounts paid as a result of such Claim or the compromise or settlement thereof.

 

     

     

    

 

In addition, with respect
to any Claim in which the Company assumes the defense, the Indemnified Person shall have the right to participate in such Claim and to
retain his, her or its own counsel therefor at his, her or its own expense.

 

The Company agrees that if
any indemnity sought by an Indemnified Person hereunder is held by a court to be unavailable for any reason then (whether or not the Advisor
is an Indemnified Person), the Company and the Advisor shall contribute to the Claim for which such indemnity is held unavailable in such
proportion as is appropriate to reflect the relative benefits to the Company, on the one hand, and the Advisor on the other, in connection
with the Advisor's engagement referred to above, subject to the limitation that in no event shall the amount of the Advisor's contribution
to such Claim exceed the amount of fees actually received by the Advisor from the Company pursuant to the Advisor's engagement. The Company
hereby agrees that the relative benefits to the Company, on the one hand, and the Advisor on the other, with respect to the Advisor's
engagement shall be deemed to be in the same proportion as (a) the total value paid or proposed to be paid or received by the Company
or its shareholders as the case may be, pursuant to the transaction (whether or not consummated) for which the Advisor is engaged to render
services bears to (b) the fee paid or proposed to be paid to the Advisor in connection with such engagement.

 

The Company's indemnity, reimbursement
and contribution obligations under this Agreement (a) shall be in addition to, and shall in no way limit or otherwise adversely affect
any rights that any Indemnified Party may have at law or at equity and (b) shall be effective whether or not the Company is at fault in
any way.

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