Document:

Exhibit 10.1

 

Execution Copy

 

ASSET
PURCHASE AGREEMENT

 

This
Asset Purchase Agreement (“Agreement”) is entered into as of March 11, 2020 (the “Closing
Date”), by and among Oldcastle Infrastructure, Inc., a Washington corporation (“Buyer”),
on the one hand, and Suttle, Inc., a Minnesota corporation (the “Seller”), and Communications Systems,
Inc., a Minnesota corporation (the “Shareholder” and together with the Seller the “Seller
Parties” and each a “Seller Party”), on the other hand.

 

RECITALS

 

A.            The
Seller is in the business of designing, manufacturing, selling, and distributing the non-fiber optic product lines identified
on Exhibit A hereto (the “Business”).

 

B.            The
Seller desires to sell certain of the assets, and assign certain rights, obligations, and liabilities of the Seller related exclusively
to the Business, and Buyer desires to purchase such assets and to assume certain rights, obligations and liabilities of the Seller
related thereto.

 

In
consideration of the representations, warranties, covenants, and agreements contained herein, the adequacy of which is hereby
acknowledged, the parties agree as follows:

 

ARTICLE
I

TRANSACTION & CLOSING

 

Section
1.01. Transactions; Closing Deliveries.

 

(a)           
Purchased Assets. Except for the Excluded Assets (as defined in Section 1.01(b)), at the Closing (as defined below
in Section 1.02) of the transactions contemplated by this Agreement (the “Transactions”), the
Seller shall, in accordance with the terms and conditions of this Agreement, sell, assign, convey, and otherwise transfer to Buyer,
all right, title and interest of the Seller in the following assets to the extent related exclusively to the Business (the “Assets”)
free and clear of all liens, charges, security interests, mortgages, pledges, or other encumbrances of any kind (“Encumbrances”),
other than Permitted Encumbrances (as defined in Section 3.07(a)):

 

(i)             
All of the fixtures, machinery, equipment, tools, furniture, pallets, spare parts, molds, jigs, molded communication enclosures,
and metal enclosures used in connection with the production of the product lines set forth in Exhibit A hereto (including
the Premise Distribution Passives, Speedstar Products, SOHO Products, and Legacy product lines, as set forth in Exhibit A
hereto), and any other items of personal property, including those items of personal property listed on Schedule 1.01(a)(i),
in each case to the extent related exclusively to the Business, but specifically excluding any such items that are addressed by
other provisions in this Section 1.01, including computers, furniture, office and desk supplies, office phones, pallet
jacks, forklifts, conveyor systems, shrink wrap devices, cars, trucks and other vehicles (the “Transferred Personal
Property”);

 

(ii)            
All of the benefits of the Contracts (as defined below in Section 3.10) listed on Schedule l.01(a)(ii) that relate
exclusively to the Business (the “Acquired Contracts”);

 

(iii)           
All of the Permits (as defined below in Section 3.11) listed on Schedule 1.01(a)(iii) that relate exclusively to
the Business and are transferable under applicable Law (as defined in Section 3.05) (the “Transferred Permits”);

 

     

    

    

 

(iv)          
All finished goods inventory, raw materials or other items of inventory, in each case to the extent listed on Schedule 1.01(a)(iv)
and related exclusively to the Business (“Transferred Inventory”);

 

(v)           
All drawings, goodwill, customer lists / relationships and supplier lists / relationships, in each case to the extent related
exclusively to the Business;

 

(vi)          
The (A) Intellectual Property rights set forth on Schedule 1.01(a)(vi), (B) confidential information, know-how, inventions,
discoveries, improvements, ideas, concepts, creative works, business records, formulas, processes, designs, websites, domain names
and email domains, in each case to the extent related exclusively to the Business, and (C) the names “Suttle, Inc.”,
“MediaMax”, “Legacy”, “Premise Distribution Passives”, “Speedstar” and “SOHO”
(collectively, the “Transferred Intellectual Property”);

 

(vii)         
The amount of prepaid deposits and prepaid expenses made by the Seller, measured as of the Effective Closing Time (as defined
in Section 1.02) for all Acquired Contracts or the Transferred Permits or otherwise, in each case to the extent relating
exclusively to the Business (the “Transferred Prepaids”);

 

(viii)         
All of the accounts receivable of the Seller relating exclusively to the Business, measured as of the Effective Closing Time (the
“Transferred Accounts Receivable”);

 

(ix)           
All phone numbers, to the extent relating exclusively to the Business;

 

(x)            
(A) All computers (other than any personal computers used by any of the Transferred Employees), furniture and office and desk
supplies, in each case to the extent relating exclusively to the Business and located in the Seller’s fabrication shop and
(B) all furniture and office and desk supplies to the extent relating exclusively to the Business that are assigned to a Transferred
Employee (collectively, the “Specified Transferred Items”);

 

(xi)           
All rights and claims against third parties, including, without limitation, all rights under express or implied warranties from
suppliers to the Seller and all other claims, rebates, payments from vendors and refunds, in each case to the extent related exclusively
to the Business (the “Transferred Claims”);

 

(xii)          
The pallet jacks, forklifts, conveyor systems, and shrink wrap devices set forth on Schedule 1.01(a)(xii); and

 

(xiii)         
The cars, trucks or other vehicles set forth on Schedule 1.01(a)(xiii).

 

(b)          
Excluded Assets. Notwithstanding any other provision of this Agreement to the contrary, Seller shall retain ownership of
and shall not hereby or otherwise sell or transfer, and the Assets shall not include, the Seller’s right, title and interest
in, to and under all of its assets, properties and rights not specifically included in the Assets, including the following (collectively,
the “Excluded Assets”):

 

(i)             
All cash, cash equivalents, marketable securities and bank accounts of the Seller;

 

(ii)            
Other than the Transferred Permits, all Permits of the Seller;

 

(iii)           
Other than the Acquired Contracts, all Contracts to which the Seller is a party;

 

    2 

    

    

 

(iv)           
Other than the Transferred Personal Property, all equipment and personal property of the Seller (including, for the avoidance
of doubt, all injection molding machines, computer numerical control (CNC) machines and tool room equipment and tools);

 

(v)            
Other than the Transferred Inventory, all inventory and raw materials of the Seller;

 

(vi)           
Other than the Transferred Accounts Receivable, all accounts, notes and other receivables of the Seller;

 

(vii)         
Other than the Transferred Intellectual Property, all intellectual property rights of the Seller;

 

(viii)        
Other than the Transferred Prepaids, all prepaid deposits and prepaid expenses of the Seller;

 

(ix)           
Other than the Transferred Claims, all claims of the Seller against third parties;

 

(x)            
Other than the contractual rights afforded to Buyer under the Lease Agreement (as defined in Section 1.01(c)(iii)), all
rights of the Seller in or to any real property owned or leased by the Seller;

 

(xi)           
All tax refunds and credits (whether by payment, credit, offset or otherwise);

 

(xii)          
All insurance policies issued to or for the benefit of the Seller or any of its affiliates, all proceeds therefrom and all rights,
claims, credits or causes of action thereunder;

 

(xiii)         
The shares of stock or other ownership interests in the Seller;

 

(xiv)         
The corporate or company seal, minute books, stock books, blank share certificates, and other records relating to the corporate
or other legal organization of the Seller and returns of Taxes (as defined below in Section 3.18) for Taxes accruing before
the Closing Date

 

(xv)          
Other than the Specified Transferred Items, all computers, furniture and office and desk supplies;

 

(xvi)         
All (A) office phones and (B) personal computers used by any of the Transferred Employees;

 

(xvii)        
All warehouse racking and, except as set forth on Schedule 1.01(a)(xii), all material handling equipment (e.g.,
pallet jacks, forklifts, conveyor systems, shrink wrap devices, etc.);

 

(xviii)       
Except as set forth on Schedule 1.01(a)(xiii), all cars, trucks and other vehicles;

 

(xix)         
All compensation, incentive, retirement, stock or stock-based employee benefit or employment-related plans, policies, arrangements
or agreements and rights in the assets of any such plans, policies, arrangements or agreements; and

 

(xx)          
The rights which accrue to any of the Seller Parties under this Agreement or any Related Instrument.

 

    3 

    

    

 

(c)         
Seller’s Closing Deliveries. At the Closing, Seller shall cause to be executed and delivered to Buyer the following
instruments (collectively, “Related Instruments”):

 

(i)             
affidavits in a form reasonably satisfactory to Buyer certifying that the Seller is not a “foreign person” within
the meaning of Section 1445 of the Internal Revenue Code of 1986, as amended;

 

(ii)            
a settlement statement (the “Settlement Statement”) setting forth the distribution of the Purchase Price
(as defined in Section 2.01(a)) on the Closing Date;

 

(iii)           
a lease agreement, in form substantially the same as that attached hereto as Exhibit 1.01(c)(iii) (the “Lease
Agreement”), along with executed termination agreements for the existing leases with respect to such sites;

 

(iv)           
a certificate, dated as of the Closing Date, signed by the Assistant Secretary of the Seller, (A) attaching true, correct and
complete copies of the Articles of Incorporation and bylaws, and any amendments thereto, of the Seller, (B) certifying the good
standing of the Seller in its jurisdiction of incorporation and in each other jurisdiction in which it is qualified to do business,
(C) certifying the incumbency, signature and authority of the officers of the Seller duly authorized to execute, deliver and perform
this Agreement and all other documents, instruments or agreements related thereto executed or to be executed by the Seller, (D)
attaching a copy of the resolutions of the board of directors of the Seller authorizing the execution and delivery of this Agreement
and the Related Instruments and the consummation of the Transactions, and (E) that there are no Proceedings (as defined in Section
1.05(d)) for the dissolution or liquidation of the Assets;

 

(v)            
termination statements and instruments of release, in form and substance satisfactory to Buyer, releasing and discharging all
Encumbrances other than Permitted Encumbrances on the Assets or payoff letters with respect to the same;

 

(vi)           
executed copies of all consents, waivers, approvals and authorizations required by Law, Contract or Order (as defined in Section
3.15) to be obtained in connection with the consummation of the Transactions;

 

(vii)         
a bill of sale, assignment and assumption agreement for the Assets and Assumed Liabilities, in form substantially the same as
that attached hereto as Exhibit 1.01(c)(vii);

 

(viii)        
a transition services agreement for the orderly transition of sourcing, production, distribution and sales to Buyer’s business
in form substantially the same as that attached hereto as Exhibit 1.01(c)(viii) (the “Transition Agreement”);

 

(ix)           
a tax clearance certificate from the state of Minnesota relating to the Shareholder; and

 

(x)            
such other documents or instruments as may be reasonably required by Buyer to consummate the Transactions.

 

(d)        
Buyer’s Closing Deliveries. At the Closing, Buyer shall cause to be executed and delivered to Seller the following:

 

(i)             
counterparts of the Related Instruments to which Buyer or any affiliate thereof is a party; and

 

    4 

    

    

 

(ii)            
a certificate from Buyer, dated as of the Closing Date, signed by the Secretary of Buyer, (A) certifying the good standing of
Buyer in its jurisdiction of incorporation, (B) certifying the incumbency, signature and authority of the officer(s) of Buyer
duly authorized to execute, deliver and perform this Agreement and all other documents, instruments or agreements related thereto
executed or to be executed by Buyer, and (C) attaching a copy of the resolutions of the board of directors of Buyer authorizing
the execution and delivery of this Agreement and the Related Instruments to which Buyer is a party and the consummation of the
Transactions.

 

Section
1.02. Closing.
Consummation of the Transactions (the “Closing”) shall take place on the Closing Date and shall be deemed
effective as of 12:00:01 a.m. Central Time on the Closing Date (“Effective Closing Time”).

 

Section
1.03. Duty to Assist. From
time to time after the Closing Date, each party shall, without further consideration, provide the other party with such assistance
as may be reasonably requested by the other party to make effective the transactions contemplated hereby, including the execution
and delivery of such instruments as may be reasonably requested to make effective the transactions contemplated hereby.

 

Section
1.04. Assumed Liabilities.
As further consideration for consummation of the Transactions, Buyer, without further action by any party, hereby assumes as of
the Effective Closing Time and agrees thereafter to (a) pay and perform when due (i) the Current Liabilities (as defined below
in Section 2.01(d)(iii)) that are reflected in the calculation of the Final Closing Net Working Capital (as defined below
in Section 2.02(d)), and (ii) the Seller’s obligations set forth in writing under the Acquired Contracts, the Transferred
Permits or any other Assets that are to be performed on or after the Effective Closing Time, in each case in this clause (a)(ii),
except to the extent arising from a breach or default, whether with or without notice, the passage of time or both, of any obligation
to be performed before the Effective Closing Time; (b) accept in the ordinary course of business the return of products sold by
the Seller in the 12 months immediately preceding the Effective Closing Time, but only to the extent of the amount of the reserve
for returned products that is reflected in the calculation of Final Closing Net Working Capital; and (c) accept in the ordinary
course of business any stock rotation return of products that is accompanied by an offset stocking order (collectively, the “Assumed
Liabilities”).

 

Section
1.05. Excluded Liabilities.
Except as expressly provided in Section 1.04, Buyer assumes no Liability (as defined in this Section 1.05) whatsoever
of the Seller (“Excluded Liabilities”). Seller shall satisfy, pay, and discharge the Excluded Liabilities
as and when due. As used herein, “Liability” means any liability or obligation of any kind, character
or description, whether known or unknown, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, secured or
unsecured, joint or several, due or to become due, vested or unvested, executory, determined, determinable or otherwise, whether
or not required to be accrued, reserved against or otherwise reflected on financial statements prepared in accordance with United
States generally accepted accounting principles (“GAAP”) or disclosed or required to be disclosed on
any schedule to this Agreement. Without limiting the generality of the foregoing, the Excluded Liabilities include, and under
no circumstances shall Buyer be deemed to assume, any Liability of the Seller arising out of, or relating to:

 

(a)           
The ownership or operation of the Assets or the Business, in each case to the extent arising out of or relating to the period
prior to the Effective Closing Time, excepting only the Assumed Liabilities;

 

(b)          
Any Liability for Environmental Damages (as defined in Section 3.16(b)), to the extent arising out of or relating to the
period prior to the Effective Closing Time;

 

    5 

    

    

 

(c)           
Any actual or alleged tortious conduct or any compliance or noncompliance with any Law applicable to the Seller, the Business,
the Assets or the Transferred Permits, in each case to the extent arising out of or relating to the period prior to the Effective
Closing Time;

 

(d)          
Any action, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative, investigative or appellate
proceeding), hearing, inquiry, audit, examination or investigation (“Proceeding”) or claims of any kind,
pending or threatened as of the Effective Closing Time, whether or not listed on Schedule 3.15;

 

(e)           
Any Taxes of the Seller relating to the operations of the Business or the use of the Assets prior to the Effective Closing Time
(other than prorated ad valorem Taxes for which Buyer is responsible pursuant to Section 7.02);

 

(f)           
Any compensation or employee benefit or other employee or employment-related Liabilities (including severance), in each case to
the extent relating to the period prior to the Effective Closing Time;

 

(g)          
Any indebtedness, including capital lease obligations, of the Seller or any of its affiliates;

 

(h)          
Any Liability under any Acquired Contract, Transferred Permit or property lease to the extent the same arose before the Effective
Closing Time or that arises after the Effective Closing Time but results from a breach or default, whether with or without notice,
the passage of time or both, of any obligation to be performed under any Acquired Contract, Permit or property lease on or before
the Effective Closing Time;

 

(i)            
Except to the extent constituting an Assumed Liability, any products manufactured or sold or services rendered on, or prior to,
the Effective Closing Time;

 

(j)            
Any Excluded Asset; or

 

(k)          
Any fees or expenses of brokers, investment bankers, attorneys or other professional advisors incurred by or on behalf of the
Seller Parties incident to this Agreement or the Transactions.

 

ARTICLE
II

PURCHASE PRICE

 

Section
2.01. Consideration.

 

(a)           
Purchase Price. The consideration for the Assets shall be (i) an amount in cash equal to $8,000,000.00 (the “Purchase
Price”) and (ii) Buyer’s assumption of the Assumed Liabilities. The Purchase Price will be subject to adjustment
pursuant to Section 2.02.

 

(b)          
Releases; Estimated Closing Statement. At least two business days before the Closing Date, the Seller shall:

 

(i)             
deliver to Buyer letters from the beneficiaries of each Encumbrance, in form and substance reasonably satisfactory to Buyer, on
any Asset, releasing all Encumbrances other than a Permitted Encumbrance held by such beneficiary on the Assets; and

 

    6 

    

    

 

(ii)            
cause to be prepared and delivered to Buyer a statement (the “Estimated Closing Statement”), setting
forth the Seller Parties’ good faith estimate of the Closing Net Working Capital, as such term is defined below in Section
2.01(d)(i) (the “Estimated Closing Net Working Capital”). The Estimated Closing Statement shall
(A) be prepared in accordance with the accounting-related principles, policies, procedures and methodologies set forth in Exhibit
2.01(b)(ii) to be used in connection with the calculation of the Estimated Closing Net Working Capital and the Closing Net
Working Capital (the “Net Working Capital Principles”) and (B) include only those categories of assets
and liabilities contemplated by the Net Working Capital Principles.

 

(c)           
Closing Payment. At the Closing, Buyer shall: (a) pay to the Seller, by wire transfer to a bank account designated in writing
by the Seller to Buyer at least two business days prior to the Closing Date (the “Bank Account”), an
amount equal to the Purchase Price, (i) plus the Working Capital Adjustment Amount (as such term is defined below in Section
2.01(d)(vi)) (if a positive number), and (ii) minus the absolute value of the Working Capital Adjustment Amount (if
a negative number); and (b) assume the Assumed Liabilities.

 

(d)          
Certain Defined Terms. As used in this Agreement, the following terms have the meanings indicated below in this Section
2.01(d):

 

(i)             
“Closing Net Working Capital” means the Net Working Capital as of the Effective Closing Time.

 

(ii)            
“Current Assets” means the categories of current assets of the Seller relating exclusively to the Business
set forth in the Net Working Capital Principles. For the avoidance of doubt, the parties acknowledge and agree that Current Assets
will not include any of the following categories of assets: (1) fixed assets (including any vehicles); (2) intangible assets;
(3) Tax assets (including current or deferred Tax assets); (4) Uncollected Receivables (as defined below in Section 2.02(b));
(5) cash and cash equivalents; (6) prepaid expenses under the Acquired Contracts set forth on Exhibit 2.01(d)(ii)(6); or
(7) Excluded Assets.

 

(iii)          
“Current Liabilities” means the categories of current liabilities of the Seller relating exclusively
to the Business set forth in the Net Working Capital Principles. For the avoidance of doubt, the parties acknowledge and agree
that Current Liabilities will not include any Excluded Liabilities, including Liabilities for Taxes and compensation or employee
benefit or other employee or employment-related Liabilities.

 

(iv)           
“Net Working Capital” means, as of a specified date, an amount (which may be positive or negative) equal
to (1) the Current Assets minus (2) the Current Liabilities.

 

(v)            
“Target Net Working Capital” means $4,750,000.

 

(vi)           
“Working Capital Adjustment Amount” means an amount (which may be positive or negative) equal to (1)
the Estimated Closing Net Working Capital minus (2) the Target Net Working Capital.

 

Section
2.02. Purchase Price Adjustment.

 

(a)           
Closing Statement. Within 90 days after the Closing Date, Buyer will cause to be prepared and delivered to the Seller a
statement (the “Closing Statement”) setting forth in reasonable detail Buyer’s good faith calculations
of (i) the Closing Net Working Capital and (ii) the amount of any adjustment to the Purchase Price pursuant to Section 2.02(e).
The Closing Statement shall (A) be prepared in accordance with the definitions of Current Assets, Current Liabilities and Net
Working Capital and the accounting-related principles, policies, procedures and methodologies set forth in the Net Working Capital
Principles and (B) include only those categories of assets and liabilities contemplated by the Net Working Capital Principles.

 

    7 

    

    

 

(b)          
Uncollected Receivables. Notwithstanding any other provision of this Agreement to the contrary, the parties agree that
Buyer may elect in its sole discretion to exclude from Closing Net Working Capital any account receivable of the Seller that is
outstanding as of the Closing and remains uncollected as of the 85th day after the Closing Date (any such uncollected
receivable, an “Uncollected Receivable”), despite Buyer’s commercially reasonable efforts consistent
with Buyer’s usual efforts to collect its own receivables (it being agreed and understood that such efforts shall not require
litigation or extraordinary collection activity). If Buyer exercises this right, then concurrently with the delivery of the Closing
Statement, Buyer shall assign to the Seller (or its designee) all right, title and interest of Buyer in and to the Uncollected
Receivables.

 

(c)           
Dispute Resolution Procedures. Any dispute arising out of or relating to the calculation of the Closing Net Working Capital
and any resulting adjustment to the Purchase Price shall be resolved in accordance with the dispute resolution procedures set
forth in Section 2.03.

 

(d)          
Final Closing Net Working Capital. As used herein, the “Final Closing Net Working Capital” means:
(i) if the Seller does not deliver a Notice of Disagreement with respect to the Closing Statement pursuant to Section 2.03(a),
the Closing Net Working Capital as set forth in the Closing Statement; or (ii) if a Notice of Disagreement is delivered, the Closing
Net Working Capital (A) as agreed to in writing by Buyer and the Seller pursuant to Section 2.03(b) or (B) in the absence
of such agreement, as determined by the Accounting Firm (as defined in Section 2.03(c)(i)) pursuant to Section 2.03(c).

 

(e)           
Adjustment to Purchase Price. As promptly as practicable (but in no event later than five (5) business days) after the
determination of the Final Closing Net Working Capital, the Purchase Price shall be adjusted as follows:

 

(i)             
If the Final Closing Net Working Capital exceeds the Estimated Closing Net Working Capital (such excess, the “Working
Capital Excess”), then Buyer shall pay or cause to be paid to the Seller, by wire transfer of immediately available
funds to the Bank Account, the Working Capital Excess;

 

(ii)            
If the Final Closing Net Working Capital is less than the Estimated Closing Net Working Capital (the absolute amount of such shortfall,
the “Working Capital Shortfall”), then the Seller Parties shall jointly and severally pay or cause to
be paid to Buyer, by wire transfer of immediately available funds to a bank account designated in writing by Buyer, an aggregate
amount equal to the Working Capital Shortfall; and

 

(iii)           
If the Final Closing Net Working Capital is equal to the Estimated Closing Net Working Capital, then there shall be no adjustment
to the Purchase Price pursuant to this Section 2.02.

 

(f)           
Tax Treatment. Any amount paid pursuant to this Section 2.02 shall be treated as an adjustment to the Purchase Price
for Tax purposes, except to the extent otherwise required by applicable Law.

 

    8 

    

    

 

Section
2.03. Dispute Resolution Procedures.

 

(a)           
Notice of Disagreement. The Closing Statement delivered pursuant to Section 2.02(a) and Buyer’s calculations
of the Closing Net Working Capital and any adjustment to the Purchase Price set forth therein, shall be final, binding and conclusive
on the parties hereto unless the Seller, within thirty (30) days following the Seller’s receipt of the Closing Statement,
delivers to Buyer a written notice of disagreement (a “Notice of Disagreement”) setting forth in reasonable
detail (i) each item or amount in the Closing Statement as to which the Seller disagrees (each, a “Disputed Item”),
(ii) the basis for each Disputed Item and reasonable supporting documentation therefor and (iii) the Seller’s calculations
of the Closing Net Working Capital and any adjustment to the Purchase Price.

 

(b)          
Resolution Period. If the Seller delivers to Buyer a Notice of Disagreement with respect to any Closing Statement that
complies with Section 2.03(a), Buyer and the Seller shall, during the thirty (30) day period following Buyer’s receipt
of such Notice of Disagreement (the “Resolution Period”), negotiate in good faith and use commercially
reasonable efforts to resolve promptly all of the Disputed Items set forth in such Notice of Disagreement. Any such Disputed Items
that are resolved by a written agreement between Buyer and the Seller during the Resolution Period shall be final, binding and
conclusive on the parties hereto and shall become part of the calculations of the Closing Net Working Capital and any adjustment
to the Purchase Price.

 

(c)           
Accounting Firm.

 

(i)             
If, by the end of the Resolution Period, Buyer and the Seller are unable to resolve all of the Disputed Items set forth in a Notice
of Disagreement with respect to the Closing Statement, then as promptly as practicable and in no event later than ten (10) days
thereafter, they shall jointly engage and submit such unresolved Disputed Items (each, an “Unresolved Item”)
for resolution to a nationally recognized accounting firm mutually acceptable to Buyer and the Seller (the “Accounting
Firm”). If Buyer and the Seller are unable to agree on the appointment of the Accounting Firm within ten (10) days
after the end of the Resolution Period, then Buyer and the Seller shall each select such an accounting firm and shall instruct
such two firms to jointly select a third independent accounting firm to act as the Accounting Firm to resolve the Unresolved Items.
Buyer and the Seller agree (A) to execute a reasonable engagement letter with the Accounting Firm, which letter will specifically
require the Accounting Firm to review this Agreement and agree to comply with the terms of this Section 2.03, (B) to submit
to the Accounting Firm not later than thirty (30) days after the end of the Resolution Period a written statement summarizing
its position on the Unresolved Items, together with such supporting documentation as it deems necessary, and (C) not to engage
in any ex parte communications with the Accounting Firm.

 

(ii)            
Buyer and the Seller shall jointly instruct the Accounting Firm that (A) it shall act as an expert in accounting, and not as an
arbitrator, to resolve only the Unresolved Items in accordance with, as applicable, the accounting principles, practices, procedures
and methodologies set forth in the Net Working Capital Principles, the definitions of Current Assets, Current Liabilities and
Net Working Capital, and the other terms of this Agreement; (B) it shall base its decision solely on the written submissions of
Buyer and the Seller and shall not conduct an independent review or audit; (C) it may not assign a dollar value to any Unresolved
Item greater than the highest amount or less than the lowest amount claimed by Buyer or the Seller, as applicable, in their written
submissions to the Accounting Firm; and (D) it shall deliver to Buyer and the Seller its written decision setting forth its calculations
of the Closing Net Working Capital and any adjustment to the Purchase Price, if any, as applicable, in each case as promptly as
practicable (and in no event later than thirty (30) days) after the submission of the Unresolved Items to the Accounting Firm.
The Accounting Firm’s written decision shall be final, binding and conclusive on the parties hereto absent fraud or manifest
error. The Closing Statement shall be revised as necessary to reflect the Accounting Firm’s written decision, and such decision
may be entered as a judgment in any court of competent jurisdiction.

 

    9 

    

    

 

(iii)           
The fees, costs and expenses of the Accounting Firm shall be allocated to and borne by Buyer and the Seller (on behalf of the
Seller Parties) in inverse proportion as they may prevail on the Unresolved Items, which proportionate allocations shall be calculated
on an aggregate basis based on the relative dollar values of all Unresolved Items and shall be determined by the Accounting Firm
and included in its written decision. For example, if the Unresolved Items total $1,000 and the Accounting Firm awards $600 in
favor of Buyer’s position and $400 in favor of the Seller’s position, 60% (i.e., 600 ÷ 1,000) of the fees,
costs and expenses of the Accounting Firm would be borne by the Seller and 40% (i.e., 400 ÷ 1,000) would be borne by Buyer.

 

(d)           
Access to Information. During the period from and after Buyer’s delivery of the Closing Statement through the final
resolution of any matters contemplated by this Section 2.03, Buyer and Seller shall afford the other party, and the Accounting
Firm, if necessary, and their representatives, on a confidential basis, reasonable access during normal business hours to its
books and records to the extent related to the calculations of the Closing Net Working Capital and any adjustment to the Purchase
Price.

 

Section
2.04. Allocation of Purchase Price.
Buyer and the Seller agree that, for federal and state income
Tax purposes, the Purchase Price shall be allocated in accordance with Schedule 2.04. Neither Buyer nor the Seller shall
take any position that is inconsistent with such allocation, unless required by applicable Law.

 

ARTICLE
III

SELLER PARTIES’ REPRESENTATIONS & WARRANTIES

 

As
a material inducement for Buyer to enter into the Transactions and perform this Agreement, the Seller Parties, jointly and severally,
represent and warrant to Buyer the following:

 

Section
3.01. Power.
Each of the Seller Parties has the requisite power and authority to execute, deliver, and perform its obligations under this Agreement
and the Related Instruments to which it is a party. The Transactions, this Agreement, the Related Instruments and all other agreements
to be executed in connection herewith or therewith (a) have been duly authorized, executed, and delivered by each of the Seller
Parties who is party thereto and (b) are valid, binding, and enforceable against the Seller Parties who are party thereto.

 

Section
3.02. Organization and Authority.
The Seller is a Minnesota corporation duly organized, validly
existing, and in good standing under the Laws of the State of Minnesota and is duly qualified to do business as a foreign corporation
in good standing in each jurisdiction in which the nature of its business or the character or the location of its properties owned
or leased by it makes such qualification necessary. The Seller has all requisite power and authority to own or lease and operate
its properties and assets and to carry on the Business as currently conducted.

 

Section
3.03. Ownership of Seller; No Subsidiaries.
The Shareholder directly owns all of the issued and outstanding shares of capital stock and voting rights in the Seller, free
and clear of all Encumbrances (other than transfer restrictions generally imposed by applicable securities Laws), and there are
no other voting securities or other equity interests in the Seller (or any options or instruments) (a) granting any Person (as
defined in Section 3.08(f)(i)) any rights to obtain any such security or equity interest or (b) convertible into the same.
The Seller does not own any equity interests, directly or indirectly, in any Person.

 

Section
3.04. No Conflicts; Consents.
The execution, delivery, and performance of this Agreement and the Related Instruments and the consummation of the Transactions
do not, and will not, (a) violate any provision of the Articles of Incorporation, bylaws or other organizational documents of
any of the Seller Parties, (b) create any Encumbrance (other than a Permitted Encumbrance) on any Asset or (c) except as set forth
on Schedule 3.04, conflict with, or result in a breach of, create an event of default under, or give any third party the
right to accelerate any obligation under, any Acquired Contract, Transferred Permit, agreement, mortgage, Order, arbitration award,
judgment, or decree to which any Seller Party is a party, or by which any Seller Party or any Asset is bound or subject, whether
with or without the giving of notice, the passage of time, or both. There is no pending or, to the Seller’s knowledge, threatened
Proceeding before, or by, any federal, state, local, foreign governmental authority, tribe, agency, department, commission, board,
bureau, instrumentality, court, tribunal, or political subdivision (each, a “Governmental Authority”),
to restrain or prevent the Transactions.

 

    10 

    

    

 

Section
3.05. Compliance with Law.
Except as set forth on Schedule 3.05, since January 1, 2014, the Seller has complied in all material respects with all
laws applicable to the Assets and the Business, including all federal, state, tribal, foreign and local laws, regulations, restrictions,
Orders, rulings, ordinances, codes, injunctions, and decrees of any Governmental Authority (collectively, “Law”
or “Laws”). The present use of the Assets in the Business does not violate any Law in any material respect.
The Seller is solvent, and is not entering into this Agreement or the Transactions to defraud creditors or with the intent of
making a fraudulent conveyance or fraudulent transfer under any applicable Law.

 

Section
3.06. Financial Statements.
Set forth on Schedule 3.06 are true and complete copies of the unaudited balance sheet of the Business as at December 31,
2019 (the “Balance Sheet”), and statements of income of the Business for the fiscal years ended December
31, 2019 and 2018, in each case adjusted to exclude all businesses other than the Business (collectively, the “Financial
Statements”). The Financial Statements (i) are correct and complete in all material respects and have been prepared
in accordance with the books and records of the Business; (ii) have been prepared in accordance with GAAP consistently applied
throughout the periods covered; and (iii) present truly and fairly in all material respects the results of operations of the Business
for the fiscal period then ended. The Seller maintains a system of internal accounting controls sufficient to provide reasonable
assurance that transactions relating to the Business are executed in accordance with management’s authorizations and that
such transactions are recorded so as to permit preparation of the Financial Statements in conformity with GAAP. Except as set
forth in Schedule 3.06, the Seller has no liabilities or obligations with respect to the Business required to be reflected
on a balance sheet prepared in accordance with GAAP, except those Liabilities that are reflected in the calculation of the Final
Closing Net Working Capital.

 

Section
3.07. Assets.

 

(a)           
The Seller owns, or, as set forth on Schedule 3.07(a)(i), has a valid leasehold interest in, the Assets free and clear
of all Encumbrances other than Permitted Encumbrances. At the Closing, the Seller shall completely and validly transfer and convey
the Assets to Buyer, free and clear of all Encumbrances, other than the Permitted Encumbrances. As used herein, the term “Permitted
Encumbrances” means (i) Encumbrances set forth on Schedule 3.07(a)(ii); (ii) Encumbrances for Taxes, assessments
and other governmental charges that are not yet due and payable or that may be paid thereafter without penalty or the amount or
validity of which is being contested in good faith by appropriate Proceedings; (iii) easements, covenants, conditions and restrictions
of public record; (iv) easements, covenants, conditions and restrictions not of record that do not interfere in any material respect
with the conduct of the Business or the use of the property related thereto; and (v) mechanic’s, materialman’s, warehouseman’s,
supplier’s, vendor’s, landlord’s or similar Encumbrances arising or incurred in the ordinary course of business.

 

    11 

    

    

 

(b)          
No amount is past due and owing from the Seller with respect to any of the Assets. Except for (i) the Excluded Assets or (ii)
as set forth in Schedule 3.07(b), the Assets, together with the rights afforded to Buyer under the Lease Agreement and
the Transition Agreement, (A) are sufficient for the continued conduct of the Business by Buyer immediately after the Closing,
substantially in the same manner as conducted prior to the Closing and (B) constitute all of the rights, properties and assets
necessary to conduct the Business substantially as currently conducted.

 

(c)           
Except as set forth on Schedule 3.07(c), the Assets are free from any known material defect and are in good operating condition
(ordinary wear and tear excepted).

 

Section
3.08. Leased Real Property. The
real property that is the subject of the Lease Agreement (the “Leased Real Property”) constitutes all
of the real property that is used, or held for use, in the Business. Other than the Shareholder (the landlord under the Lease
Agreement and an affiliate of the Seller), or any Permitted Encumbrances, no basis exists for any claim by any third party to
any ownership or other interest in the Leased Real Property. Prior to the Closing, the Seller had a good, valid and subsisting
leasehold interest in the Leased Real Property, free and clear of all Encumbrances, other than Permitted Encumbrances. With respect
to the Leased Real Property:

 

(a)           
There is no pending or, to the knowledge of the Seller, threatened condemnation, eminent domain, or other Proceeding concerning,
or that would reasonably be expected to adversely affect, the Leased Real Property.

 

(b)          
The Leased Real Property is served by all utilities necessary to operate the Business and is located in an area designated as
an “Area of Minimal Flood Hazard-Zone X” per the Federal Emergency Management Agency’s National Flood Map. The
Leased Real Property has perpetual direct access rights to a public roadway. All easements, cross easements, licenses, air rights,
and rights-of-way, or other similar property interests affecting the Leased Real Property (collectively, “Easements”)
are in full force and effect without default thereunder. To the Seller’s knowledge, no present default or breach exists
regarding the Easements, and no condition or circumstance exists which, with the passage of time or the giving of notice, or both,
would constitute or result in a default or breach.

 

(c)           
To the Seller’s knowledge, the Leased Real Property, and the current use thereof, complies in all material respects with
all restrictive covenants and applicable Laws (including all applicable zoning or building ordinances or codes and other use or
occupancy restrictions, in each case, without reliance on any “grandfather” clauses or exceptions for permitted, non-conforming
uses), and, to the Seller’s knowledge, does not cause or constitute a nuisance or trespass.

 

(d)          
The Seller has delivered to Buyer copies of all surveys or engineering studies relating to the Leased Real Property that are in
the possession of the Seller.

 

(e)          
All Taxes and other governmental assessments relating to the Leased Real Property, to the extent that the same have become due
and payable, have been paid.

 

(f)           
Except to the extent expressly set forth on Schedule 3.08(f):

 

(i)            
No natural person, entity, or organization whatsoever including any individual, sole proprietorship, corporation, partnership,
limited liability company, association, trust, bank, estate, or Governmental Authority (each a “Person”),
other than Seller occupies, possesses, or uses, or has any right to occupy, possess, or use, any of the Leased Real Property;

 

    12 

    

    

 

(ii)            
To the Seller’s knowledge, the improvements located on, or annexed to, the Leased Real Property are in working order and
repair, ordinary wear and tear excepted, and, to the Seller’s knowledge, are free from material defects and suitable for
their present use;

 

(iii)           
To the Seller’s knowledge, all electrical, plumbing, heating and air-conditioning, and exterior drainage systems and equipment,
in, under or on the Leased Real Property are in good condition and working order, ordinary wear and tear excepted;

 

(iv)           
To the Seller’s knowledge, there is presently no subsidence or other soil condition that materially adversely affects, or
would reasonably be expected to have a material adverse effect on, the Leased Real Property;

 

(v)            
Neither the Leased Real Property nor any part thereof is subject to any purchase options, rights of first offer, rights of first
refusal or other similar rights in favor of any Person; and

 

(vi)           
To the knowledge of Seller, there are no material encroachments on the Leased Real Property and the improvements do not encroach
upon any Easement or any adjoining land or adjoining street.

 

Section
3.09. [Intentionally omitted]

 

Section
3.10. Contracts.
For purposes of this Agreement, “Contract” means each contract, lease, purchase order, supply agreement,
and other contract or agreement of any kind or nature, whether oral or written of the Seller that relates to the conduct of the
Business. All Acquired Contracts are valid, binding and enforceable in accordance with their terms. Seller is not, and to the
Seller’s knowledge, no other party to any Acquired Contract, is in breach of or default under any Acquired Contract. No
event or omission has occurred that would, and neither the execution and delivery of this Agreement nor the consummation of the
Transactions will, result in any party being in breach or default of any Acquired Contract, with or without the giving of notice,
the passage of time, or both. All products and services furnished pursuant to an Acquired Contract meet all applicable specifications
and requirements in all material respects. Except as set forth on Schedule 3.10 under the heading “Prepayments or
Deposits”, no customer of the Seller under any Acquired Contract has prepaid, whether as a deposit or otherwise, and the
Seller has not received any such prepayments, whether as a deposit or otherwise, for materials or services to be provided under
such Acquired Contract after the Closing Date. Schedule 3.10 lists all of the Material Contracts (as defined in this Section
3.10). The Seller has previously delivered to Buyer true, accurate, and complete copies of all written Material Contracts
(including any amendments thereto) and a true, accurate, and complete written description of all oral Material Contracts in each
case as currently in effect. As used herein, the term “Material Contract” means each Contract that:

 

(a)           
involves the potential expenditure or receipt of more than $50,000 over the remaining term thereof;

 

(b)          
limits, or purports to limit, the ability of Seller or the Business to compete in any line of business or with any Person or in
any geographic area or during any period of time, or that restricts the right of Seller or the Business to sell to or purchase
from any Person or to hire any Person;

 

(c)          
[intentionally omitted];

 

(d)          
includes clauses requiring the purchase or sale of minimum quantities (or payment of any amount for failure to purchase or sell
any specific quantities) of goods or services, or containing “most favored nations” or similar pricing or other special
discount arrangements;

 

    13 

    

    

 

(e)           
requires the Seller to indemnify or hold harmless any other Person, or provides for a guaranty of or by the Seller other than
pursuant to the Seller’s standard terms and conditions of sale, as previously provided to Buyer;

 

(f)           
imposes on the Seller any non-solicitation or non-compete obligation;

 

(g)          
relates to, or provides for the marketing, sale or distribution of, products or services (other than bona fide customer purchase
orders received in the ordinary course of business consistent with past practices, not in excess of $50,000);

 

(h)          
relates to any arrangement, agreement or relationship of any kind with any labor union or association, including any collective
bargaining agreement;

 

(i)            
provides for a partnership, joint venture, teaming or similar arrangement pursuant to which the Seller shares in the profits or
losses of any business with any other Person or is jointly liable with any other Person;

 

(j)            
provides for or relates to any employment (other than at-will arrangements) with any Transferred Employee (as defined below in
Section 5.04(a)) or consulting relationship with a consultant who provides services to the Seller relating to the Business;

 

(k)          
relates to the purchase of any debt or equity security or other ownership interest of any Person, or for the issuance of any debt
or equity security or other ownership interest, or the conversion of any obligation, instrument or security into debt or equity
securities or other ownership interests of, the Seller;

 

(l)            
relates to settlement of any administrative or judicial Proceedings within the past five years;

 

(m)          
other than those Contracts relating to employment, is between Seller and any Related Party (“Related Party”
meaning (1) any affiliate of Seller; (2) any principal owner (i.e., any owner of more than ten percent (10%) of the voting interests)
of Seller or the Shareholder; (3) any member of Seller’s executive management team; or (4) any member of the immediate family
of any principal owner of Seller or the Shareholder or Seller’s executive management team);

 

(n)          
pursuant to which (i) other than with respect to the real property that is the subject of the Lease Agreement, the Seller is a
lessee or sublessee of, or holds, occupies, or operates, any real property, or (ii) the Seller is a lessor or sublessor of, or
makes available for use, occupancy, or operation by any Person, any real property;

 

(o)          
pursuant to which the Seller grants or is granted a license of any Intellectual Property (as defined in Section 3.14) or
software (other than software that is subject to “shrink-wrap” or “click-through” license agreements or
is available off the shelf);

 

(p)          
grants an Encumbrance (other than Permitted Encumbrances) on any of the Assets (including under conditional sales, capital leases,
or other title retention or security devices);

 

(q)          
grants or increases any severance, continuation, termination, or post-termination pay to any independent contractor who performs
services to the Seller relating to the Business or any Transferred Employee;

 

    14 

    

    

 

(r)           
is with any Governmental Authority; or

 

(s)          
(i) extends for a term of more than 12 months from the Closing Date (unless terminable by the party thereto without payment or
penalty upon no more than 30 days’ notice) or (ii) is otherwise material to the Business.

 

Section
3.11. Permits.
Set forth on Schedule 3.11 are all of the environmental permits, land use authorizations, zoning permits, certificates
of occupancy, building permits, special use permits, and all other licenses, permits, qualifications, franchises, approvals, exemptions,
registrations, and other authorizations from all Governmental Authorities that have been used, are necessary or are reasonably
required with respect to the ownership or operation of the Assets or the conduct of the Business, excluding any of the foregoing
that are held by the Shareholder in connection with the ownership of the real property that is the subject of the Lease Agreement
(the “Permits”). The Permits are in full force and effect. No Seller is or, within the past five years,
has been, in violation in any material respect of any of the terms and conditions of, or other requirements arising from, the
Permits.

 

Section
3.12. Inventory.
All Transferred Inventory was acquired or created in the ordinary course of the Business and consists of a quality and quantity
that is usable and salable in such ordinary course, subject to reserves maintained on the Seller’s books and records. Schedule
3.12 shows the inventory quantities as of March 8, 2020, and average selling price and gross margin by grade during the twelve
months preceding the date hereof.1

 

Section
3.13. Accounts Receivable.
The Transferred Accounts Receivable constitute valid debts or other liabilities owed to the Seller by reason of sales actually
made or services actually performed in the ordinary course of the Business. Schedule 3.13 sets forth a true and complete
list of the accounts receivable of the Seller as of March 8, 2020.2

 

Section
3.14. Intellectual Property.
Schedule 3.14 sets forth a true and complete list of all registered and material unregistered Intellectual Property (it
being understood, however, for the avoidance of doubt, that the Seller Parties shall have no obligation to schedule any trade
secrets or know-how) used in, related to or held for use in the Business, including any pending applications to register any of
the foregoing, identifying for each whether it is owned by or exclusively licensed to the Seller. The Seller has the right and
authority to use all Intellectual Property in connection with the conduct of the Business in the manner presently conducted and,
to the Seller’s knowledge, such use does not conflict with, infringe upon or violate any third parties’ rights. To
the Seller’s knowledge, no third party is misappropriating, infringing, diluting or violating in any material respect any
Intellectual Property owned by the Seller and used in, related to or held for use in the Business in a material manner. As used
herein, the term “Intellectual Property” means any and all of the following arising pursuant to the
Laws of any jurisdiction throughout the world: (a) trademarks, service marks, trade names, and similar indicia of source of origin,
all registrations and applications for registration thereof, and the goodwill connected with the use of and symbolized by the
foregoing; (b) copyrights and all registrations and applications for registration thereof; (c) trade secrets and know-how; (d)
patents and patent applications; and (e) internet domain name registrations.

 

Section
3.15. Litigation.
Except to the extent expressly set forth on Schedule 3.15, there is no pending or, to the Seller’s knowledge, threatened
Proceeding against the Seller relating to the Business or the Assets, nor, to the Seller’s actual knowledge (without any
duty of inquiry), is there any basis for any Proceeding, against the Seller relating to the Business, the Assets, the Assumed
Liabilities or the Transactions. There is no decree, injunction, writ, order, judgment or similar action (“Order”)
to which the Seller or any of its properties or assets is subject that affect or relate to the Assets or Business.

 

 

1
NTD: This report will be run on Monday, March 9th, and will capture information through March 8th.

2
NTD: This report will be run on Monday, March 9th, and will capture information through March 8th.

    15 

    

    

 

Section
3.16. Environmental.

 

(a)           
(i) There has been no Release (as defined in Section 3.16(b)) of Hazardous Materials (as defined in Section 3.16(b))
(excluding any Release that does not meet the threshold of a reportable quantity or was otherwise not reportable pursuant to Environmental
Requirements (as defined in Section 3.16(b))) by the Seller at the Leased Real Property, and the Seller has not transported
any Hazardous Materials to, from or across the Leased Real Property in violation of Environmental Requirements; (ii) the Seller
has received no written notice of and, to the Seller’s knowledge, there exists no basis for any Proceeding, citation or
summons involving the Seller, the Leased Real Property or the Business, related to either any material violation or alleged violation
of Environmental Requirements, whether or not corrected, or any alleged liability for Environmental Damages (as defined in Section
3.16(b)); (iii) the Seller with respect to the Business is, and for the past five years has been, complied in all material
respects with all Environmental Requirements; and (iv) the Seller Parties have supplied Buyer with true and complete copies of
all notices, reports and other documents in their possession as of the date hereof, and material to an understanding of the environmental
liabilities of the Business and the environmental condition of the Leased Real Property.

 

(b)           
For the purposes of this Agreement: (i) “Environmental Damages” means all liabilities, whether accrued,
fixed or contingent, known or unknown, and whether or not included in a Schedule to this Agreement, any of which are incurred
at any time arising out of, based on or resulting from (A) the presence or Release of Hazardous Materials into the environment,
on or prior to the Closing Date, upon, beneath, or from the Leased Real Property or other location where Seller or the Business
conducted operations or generated, stored, Released, sent, transported, or disposed of Hazardous Materials, in each case to the
extent attributable to any action or inaction of the Seller prior to the Closing Date in violation of Environmental Requirements
or (B) any violation of Environmental Requirements by the Seller prior to the Closing Date; (ii) “Hazardous Materials”
means any substance: (A) the presence of which requires reporting, investigation, removal or remediation under any Environmental
Requirement; (B) that is defined as a “hazardous waste,” “hazardous substance” or “pollutant”
or “contaminant” under any Environmental Requirement; (C) the presence of which causes or threatens to cause a nuisance,
trespass or other tortious condition or poses a hazard to the health or safety of Persons; or (D) that contains gasoline, diesel
fuel or other petroleum hydrocarbons, PCBs, asbestos or urea formaldehyde foam insulation; (iii) “Release”
has the meaning ascribed to that term at 42 U.S.C. § 9601(22); (iv) “Environmental Requirements”
means all statutes, regulations, rules, policy, ordinances, codes, common law, licenses, permits, Orders, authorizations, and
similar items, of all Governmental Authorities and all judicial and administrative and regulatory writs, injunctions, decrees,
judgments and Orders relating to (A) occupational health or safety; (B) the protection of human health or the environment; (C)
the treatment, storage, disposal, handling, Release or Remediation of Hazardous Materials; or (D) exposure of Persons to Hazardous
Material; and (v) “Remediation” means (A) any remedial action, remedy, response or removal action as
those terms are, defined in 42 U.S.C. § 9601 and (B) any corrective action as that term has been construed pursuant to 42
U.S.C. § 6924.

 

Section
3.17. Labor Matters.
Except to the extent expressly set forth on Schedule 3.17, the Seller is not, and has not been in the past five years,
(a) a party to a collective bargaining agreement with any union or labor organization or (b) otherwise obligated to recognize,
or bargain with, any union or labor organization. No employees of the Seller are, or have in the past five years been, represented
by a collective bargaining representative. To the Seller’s knowledge, (i) no organization or representation question is
threatened or pending with respect to the employees of the Seller, and (ii) no such question has been raised with respect to the
Seller in the past three years. There are no pending or, to the Seller’s knowledge, threatened claims against the Seller
under any Laws governing employment discrimination, employment eligibility, affirmative action, employee benefits (other than
routine claims for benefits), or wages and hours. Schedule 3.17(a) sets forth a complete and accurate list of the names
of all current employees of the Seller who are actively employed by or providing services to the Business (or who are on a company-approved
leave of absence or disability and who are eligible by law or are reasonably expected to return to work within six months of the
Closing Date), specifying their titles, exempt classification status, their salaries or hourly rate, as applicable, dates of hire,
business locations, and whether they are subject to commissions, bonuses and incentive entitlements. Schedule 3.17(b) contains
a complete and accurate list of all independent contractors used by the Business as of the date hereof (or within the prior 12
months), specifying the name of the independent contractor, type of labor, fees paid to such independent contractor for calendar
year 2019 and from January 1, 2018 through December 31, 2018, work location and address. No Permits are required to be held by
the employees or independent contractors listed or required to be listed in Schedule 3.17(a) or Schedule 3.17(b)
in order to provide the services such employees and independent contractors provide to the Business.

 

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Section
3.18. Taxes.

 

(a)          
For the purpose of this Agreement, “Tax” means any federal, state, local or foreign income, gross receipts,
franchise, estimated, alternative minimum, add on minimum, sales, use, transfer, real property gains, value added, excise, stamp,
occupation, windfall profits, real property, personal property, capital stock, social security (or similar), unemployment, disability,
payroll, license, employee or other withholding, or other tax, of any kind whatsoever, including any interest, penalties or additions
to tax or similar items in respect of the foregoing.

 

(b)          
Except as set forth on Schedule 3.18(b), the Seller has duly and timely (i) filed all material Tax returns and other reports
required of any of it under all federal, state, local, or foreign Laws and (ii) paid all material Taxes due, whether or not shown
on any such return or report. All such returns and reports are correct and complete in all material respects. No Tax examinations
or audits of the Seller are in progress or have taken place during the past six years. Neither Buyer nor the Assets or Business
are, or will be, subject to any liability whatsoever for any sales, use, real property, ad valorem, or other Taxes or assessments
relating to the ownership, purchase, sale, or use of the Assets or operation of the Business prior to the Closing, excluding current
ad valorem assessments on the Assets not yet due, which will be prorated pursuant to Section 7.02 and any sales or use
Taxes that may be imposed as a result of the Closing. There is no threatened, or pending, dispute, claim, Order, settlement, or
agreement concerning any Tax liability of the Seller that could give rise to any Encumbrances against any Asset, and no basis
exists for any such matters. The Seller has not entered into any agreements with any Taxing Governmental Authorities, including
any Tax abatement, Tax credit or other incentive agreements or agreements for Tax reductions or payments in lieu of Taxes in connection
with or as a result of the operation of the Business or the ownership or operation of the Assets prior to the Closing.

 

Section
3.19. Conduct of the Business.
Except as set forth on Schedule 3.19, since January 1,
2019, the Seller has conducted the Business solely in the ordinary course, including keeping available to it the services of all
officers and employees, preserving the goodwill of its suppliers, customers, and employees, and maintaining the assets and properties
of the Business in working order and condition (ordinary wear and tear excepted). During such time, except as set forth on Schedule
3.19, the Seller has not, to the extent relating to the Business, (a) changed its accounting policies, (b) incurred any out-of-ordinary-course
liabilities, (c) sold any material assets (other than sales of inventory, performance of services and disposals of obsolete equipment
in the ordinary course of business consistent with past practices), (d) deferred any capital expenditures outside the ordinary
course of business or (e) changed in any material respect its practices with respect to cash management, accounts receivable collection
or accounts payable.

 

    17 

    

    

 

Section
3.20. Insurance & Bonds.
Set forth on Schedule 3.20 is a complete list of all insurance policies and bonds providing any type of coverage to, or
for the benefit or protection of, the Seller or the Assets, including general liability, environmental liability, automobile liability,
workers compensation and employers liability, and excess liability policies and bid, performance, payment, and fidelity bonds,
other than those related to any employee benefit plan that is an Excluded Asset (the “Insurance Policies”).
All Insurance Policies are in full force and effect through the Closing Date, and the Seller is in compliance in all material
respects with all notice provisions and other conditions contained therein. The Seller has no liability for retrospective premiums
under any such policies. No insurer has notified the Seller in writing or, to the knowledge of Seller, verbally, that coverage
will be denied with respect to any claim submitted to such insurer by the Seller. True and complete copies of the Insurance Policies
have been made available to Buyer.

 

Section
3.21. No Improper Payments.
Neither the Seller, nor, to the knowledge of Seller, any manager, officer, employee, agent, representative, or any other Person
associated with, or acting for, or on behalf of, Seller, has, in connection with the Business or the Assets, directly or indirectly
made, or offered to make, any contribution, gift, bribe, rebate, payoff, influence payment, kickback, or other payment to any
Person in violation of applicable Law, regardless of whether in money, property, services, or other form, in exchange for special
concessions or favorable treatment in securing business.

 

Section
3.22. Affiliate Transactions.
Except (a) to the extent expressly set forth on Schedule 3.22(a), the Seller has not supplied any goods or services to,
or, other than the lease of the real property that is the subject of the Lease Agreement, purchased any goods or services from,
the Shareholder or any of its subsidiaries (each, an “Affiliated Party”) at any time in the preceding
three years, (b) as set forth in Schedule 3.22(b), no Affiliated Party has any direct or indirect interest in any property
or asset (real or personal, tangible or intangible) owned or used by the Seller in the conduct of the Business (other than the
Shareholder’s ownership of (i) the common stock of the Seller and (ii) the real property that is the subject of the Lease
Agreement), and (c) as set forth in Schedule 3.22(c), and other than with respect to the real property that is the subject
of the Lease Agreement, there are no Contracts or other understandings arrangements between the Seller, on the one hand, and any
Affiliated Party, on the other hand.

 

Section
3.23. Customers and Suppliers.
Schedule 3.23 sets forth a true, correct and complete
list of (a) the 20 largest suppliers to the Business for the twelve (12) month period ended September 30, 2019 (determined on
the basis of the total dollar amount paid) (each, a “Material Supplier”) and (b) the 20 largest customers
of the Business for the 12 month period ended September 30, 2019 (determined on the basis of the total dollar amount received)
(each, a “Material Customer”), showing the total dollar amount paid to or received from, as the case
may be, each such Material Supplier and Material Customer during such period. Since January 1, 2019, there has been no termination,
cancellation or material curtailment of the business relationship of the Business with any Material Supplier or Material Customer
nor, to the Seller’s knowledge, has any Material Supplier or Material Customer indicated an intent to so terminate, cancel
or materially curtail its business relationship with the Business, whether as a result of the consummation of the Transactions
contemplated hereby or otherwise.

 

Section
3.24. Product and Service Warranties.
No product or service provided, manufactured, sold, leased,
licensed or delivered by the Business is subject to any guaranty, warranty, right of return, right of credit or other indemnity
other than (a) as set forth in Schedule 3.24, (b) as set forth in the applicable standard terms and conditions of sale
or lease of the Business, true, correct and complete copies of which have been provided to Buyer and (c) manufacturers’
warranties for which the Business has no liability. Adequate reserves for any expense to be incurred by the Business as a result
of any express or implied warranty or guaranty as to goods sold, leased, manufactured or licensed, or services provided by, the
Seller prior to the date hereof are reflected on the books and records of the Seller.

 

    18 

    

    

 

Section
3.25. Product Liability.
Except for those reserves set forth on the Balance Sheet or as set forth on Schedule 3.25, to the Seller’s knowledge,
there is no basis for any product liability, warranty, material backcharge, material additional work or other claims by any third
party against the Seller arising from (a) services rendered by the Seller with respect to the Business during the period prior
to the Effective Closing Time, or (b) the sale or distribution of any product, good, component or other item manufactured, sold
or delivered by the Seller with respect to the Business whether the applicable product, good, component or other item is delivered
to a customer before or after the Closing Date (in each case to the extent attributable to any action or inaction of the Seller
during the period prior to the Effective Closing Time).

 

Section
3.26. Brokers.
Other than Northland Capital Markets (whose fees and expenses shall be the sole and exclusive responsibility of the Seller), no
broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with
the Transactions or any other Related Instrument based upon arrangements made by or on behalf of any Seller Party.

 

Section
3.27. Disclaimer of Other Representations
and Warranties. Except for the representations and warranties
contained in this Article III (as modified by the Schedules), neither the Seller Parties nor any other Person has made
or makes any other express or implied representation or warranty, either written or oral, on behalf of the Seller Parties, including
any representation or warranty as to the accuracy or completeness of any information regarding the Business and the Assets furnished
or made available to Buyer and its representatives (including any information, documents or material delivered to Buyer or made
available to Buyer in any electronic data room, management presentations or in any other form in expectation of the Transactions)
or as to the future revenue, profitability or success of the Business, or any representation or warranty arising from statute
or otherwise in Law.

 

ARTICLE
IV

BUYER’s REPRESENTATIONS & WARRANTIES

 

As
a material inducement for the Seller Parties to enter into the Transactions and perform this Agreement, Buyer represents and warrants
to the Seller Parties the following:

 

Section
4.01. Power.
Buyer has the requisite corporate power and authority to execute, deliver, and perform its obligations under this Agreement and
the Related Instruments to which it is a party (including, without limitation, all necessary approvals from Buyer’s ultimate
parent, CRH, plc). The Transactions, this Agreement, the Related Instruments and all other agreements to be executed by Buyer
in connection herewith or therewith (a) have been duly authorized, executed and delivered by Buyer and (b) are valid, binding,
and enforceable against Buyer, subject to the Enforceability Limitations.

 

Section
4.02. Organization and Authority.
Buyer (a) is a corporation duly organized, validly existing,
and in good standing under the Law of the State of Washington and (b) has the necessary power and authority to own or lease its
assets and properties and to carry on its business as currently conducted.

 

Section
4.03. No Conflicts; Consents.
The execution, delivery, and performance of this Agreement and the Related Instruments by Buyer and the consummation of the Transactions
do not, and will not, (a) violate any provision of Buyer’s organizational and governing documents, as amended, (b) conflict
with or result in a breach of, create an event of default under, or give any third party the right to accelerate any obligation
under, any agreement, mortgage, Order, arbitration award, judgment or decree to which Buyer is subject that could materially and
adversely affect Buyer’s ability timely to perform its obligations hereunder or (c) require any consent, approval or authorization
of, or registration, declaration or filing with, or notice to, any Governmental Authority.

 

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Section
4.04. No Brokers.
No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with
the Transactions contemplated by this Agreement or any other Related Instrument based upon arrangements made by or on behalf of
Buyer.

 

Section
4.05. Independent Investigation; No
Reliance. Buyer has conducted its own independent investigation,
review and analysis of the Business and the Assets, and acknowledges that it has been provided adequate access to the personnel,
properties, assets, premises, books and records, and other documents and data of the Seller Parties for such purpose. Buyer acknowledges
and agrees that: (a) in making its decision to enter into this Agreement and to consummate the Transactions contemplated hereby,
Buyer has relied solely upon its own investigation and the express representations and warranties of the Seller Parties set forth
in Article III of this Agreement (as modified by the Schedules); and (b) neither the Seller Parties nor any other Person
has made any representation or warranty as to the Seller Parties, the Business, the Assets, this Agreement, the Related Instruments
or the Transactions contemplated hereby or thereby, except as expressly set forth in Article III of this Agreement (as
modified by the Schedules).

 

ARTICLE
V

ADDITIONAL AGREEMENTS

 

Section
5.01. Confidentiality.
Each of the Seller Parties shall, and shall direct their respective directors, managers, officers, employees, agents, brokers,
advisors (including attorneys, accountants, lenders, and consultants), representatives, investment and commercial bankers, and
affiliates, in each case to the extent actually involved in the Transactions on behalf of the Seller Parties (collectively, “Representatives”)
to keep confidential all, and not use or divulge to any Person (other than Buyer and its Representatives) any of the trade secrets
or confidential information relating to the Assets, the Business, or Buyer’s operation of the Assets, including private,
secret and confidential information relating to such matters as the finances, methods of operation and competition, marketing
plans and strategies, equipment and operational requirements and information concerning personnel, customers, and suppliers of
the Seller, unless such information (a) is or becomes generally available to the public other than as a result of a disclosure
by Seller or Seller’s Representatives, (b) is legally compelled to be disclosed whether by Law or Order of a Governmental
Authority; provided, however that Seller shall provide Buyer with prompt written notice of such legal compulsion
so that Buyer may seek a protective order or other available remedy at Buyer’s sole cost and expense. If a protective order
or other remedy is not obtained and such Seller does not obtain from Buyer a waiver of compliance with this Section 5.01,
such Seller nevertheless may disclose such information that knowledgeable counsel advises such Seller in writing must be disclosed
lest such Seller stand liable for contempt or other material censure or penalty. Each of the Seller Parties will use its reasonable
best efforts to obtain reliable assurance that information so disclosed will be treated confidentially by any disclosee. As used
in this Agreement, “affiliate” means, as with respect to a specified Person, any other Person that,
directly or indirectly through one or more intermediaries, controls, is controlled by, or is under other common control with such
specified Person, where “control” and any corollary expressions means the ability to direct or cause
the direction of the policies or management of another Person, whether by ownership of voting securities, by contract or otherwise,
including the ownership, directly or indirectly, of securities having the power to elect a majority of the board of directors
or similar body governing the affairs of such Person. Nothing herein shall be deemed to abridge or lessen any greater or larger
protections afforded to trade secrets under applicable Law.

 

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Section
5.02. Non-Competition and Non-Solicitation.
As a material inducement to consummate the Transactions, the Seller Parties hereby covenant and agree as follows:

 

(a)           
In consideration of, among other things, the Purchase Price set forth in this Agreement, during the period from the date hereof
through the fifth anniversary of the date hereof (the “Non-Compete Period”), none of the Seller Parties
(a “Non-Compete Party”) shall:

 

(i)             
Directly or indirectly engage or invest in, own, manage, operate, finance, control or participate in the ownership, management,
operation, financing, or control of, be employed by, associated with, or in any manner connected with, lend such Non-Compete Party’s
credit to, or render services or advice to, any business, firm, corporation, partnership, association, joint venture or other
Person that engages in any business that competes with any portion of the Business as currently conducted (collectively “Non-Compete
Business”), anywhere within Canada, United States, Mexico, Belize, Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua, Panama, or any country, commonwealth or territory located in the Caribbean Sea (the “Territory”);
provided, however, a Non-Compete Party may individually own less than 5% of the outstanding shares of any class of securities
of any enterprise (but without otherwise participating in the activities of such enterprise) if such securities are listed on
any national or regional securities exchange or have been registered under Section 12(g) of the Securities Exchange Act of 1934,
as amended;

 

(ii)            
Directly or indirectly, either for such Non-Compete Party, or any other Person, hire any of the Transferred Employees (as defined
below in Section 5.04(a)), or solicit or induce any Transferred Employee to leave the employ of Buyer or its affiliates
(other than any Transferred Employee who, at the time of such hiring or solicitation, has ceased to work for Buyer or any of its
affiliates for a period of at least six (6) months);

 

(iii)          
Directly or indirectly, approach or seek Non-Compete Business from any Customer in the Territory, refer Non-Compete Business from
any Customer to any enterprise, business or other Person in the Territory, or be paid commissions based on Non-Compete Business
sales received from any Customer by any enterprise, business or other Person in the Territory. For purposes of this Section
5.02(a)(iii), the term “Customer” means any Person to which the Seller provided goods or services
included within the Non-Compete Business in the Territory during the 24-month period prior to the Closing Date; or

 

(b)          
The Seller Parties shall instruct the members of their executive management team to not, during the Non-Compete Period, intentionally
disparage the Business, Buyer or any of its affiliates in any way which would reasonably be expected to adversely affect the goodwill,
reputation or business relationships of the Business.

 

(c)          
Each Non-Compete Party acknowledges that the restrictions imposed by this Agreement are fully understood by such Non-Compete Party,
are fair and reasonable. Each Non-Compete Party acknowledges that any breach of the covenants of this Section 5.02 may
result in irreparable damage and continuing injury to Buyer. Therefore, in the event of any breach or threatened breach of the
covenants in this Section 5.02, each Non-Compete Party acknowledges that Buyer shall be entitled, without limiting any
other remedies, to an injunction restraining the breaching party from committing any such violation (without need of posting any
bond or other security).

 

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(d)          
If any of the provisions of this Section 5.02 shall otherwise contravene or be invalid under the Laws of any state or other
jurisdiction where it is applicable but for such contravention or invalidity, such contravention or invalidity shall not invalidate
all of the provisions of this Section 5.02, but rather this Section 5.02 shall be reformed and construed, insofar
as the Laws of that state or jurisdiction are concerned, as not containing the provision or provisions, but only to the extent
that they are contravening or are invalid under the Laws of that state or jurisdiction, and the rights and obligations created
hereby shall be reformed and construed and enforced accordingly. In the event of an actual breach or violation by any Non-Compete
Party of the covenants set forth in this Section 5.02, the Non-Compete Period shall be tolled until such breach or violation
has been cured.

 

Section
5.03. Transition Matters.

 

(a)          
The parties shall work together in good faith to facilitate the transfer of all utilities servicing the Assets into Buyer’s
name as directed by Buyer, including the transfer of telephone numbers, electrical service, and water and sewage to be effective
at the Closing or as soon thereafter as reasonably practicable. Promptly following the Closing, the Seller shall take all action
reasonably necessary to change (a) the corporate name of the Seller to a name that does not include the words “Suttle”
or any variation thereof and (b) the registered office addresses and principal places of business of the Seller to locations other
than the Leased Real Property.

 

(b)          
With respect to each Acquired Contract for which consent is required from a third party in connection with the consummation of
the Transactions contemplated hereby (a “Required Consent”) that has not been obtained prior to the
Closing: (a) such Acquired Contract shall not be assigned to Buyer at the Closing; and (b) during the period beginning on the
Closing Date and ending at such time as the Required Consent is received (at which time such Acquired Contract shall automatically
be assigned to Buyer without any further action of the parties hereto), the parties shall (i) work together in good faith to attempt
to obtain such Required Consent and (ii) take all necessary action to provide to Buyer all of the economic benefits under any
such Acquired Contract (it being understood that Buyer shall also bear the economic burdens under any such Acquired Contract during
such time period) until such time as the Required Consent is obtained, or until such Acquired Contract expires or is terminated.

 

Section
5.04. Employee Matters.

 

(a)          
Buyer will offer, subject to satisfactory completion of Buyer’s standard pre-employment screening process, which may include
background checks, physical fitness for duty examinations and substance abuse testing, employment to each of the employees identified
on Schedule 5.04(a) (all such employees who accept Buyer’s offer of employment and satisfy the requirements of Buyer’s
pre-employment screening process are referred to as the “Transferred Employees”). Effective at 11:59:59
p.m. on the day prior to the Closing Date, the Seller will terminate the employment of each Transferred Employee.

 

(b)          
For purposes of determining eligibility to participate, vesting and determination of the level of benefits (but not accrual or
entitlement to benefits other than severance benefit accrual where length of service is relevant and paid time off) for Transferred
Employees under all employee benefit plans and arrangements of Buyer, Buyer shall recognize service with the Seller.

 

(c)          
Buyer agrees that, during the period commencing on the Closing Date and ending on the one (1)-year anniversary thereof (i) each
Transferred Employee who continues to be employed by Buyer or its affiliates after the Closing will continue to be provided with
base salary, wages, commission rates and annual incentive compensation opportunities that are substantially comparable in the
aggregate to the base salary, wages, commission rates and annual incentive compensation opportunities in effect with respect to
such Transferred Employee immediately prior to the Closing and (ii) each Transferred Employee who continues to be employed by
Buyer or its affiliates after the Closing will continue to be provided with employee benefits that are substantially comparable
to the employee benefits offered to similarly-situated employees of Buyer.

 

    22 

    

    

 

(d)          
Buyer will be responsible for providing continuation coverage required under COBRA to all Transferred Employees, including any
dependents or beneficiaries thereof, who are or become “M&A Qualified Beneficiaries” (as defined in Treasury Regulations
§54.4980B-9) as a result of the consummation of the Transaction contemplated by this Agreement.

 

(e)          
With respect to each employee benefit plan and arrangement of Buyer providing medical, dental, pharmaceutical and vision benefits
in which any Transferred Employee becomes eligible to participate after the Closing, Buyer shall waive or cause to be waived all
pre-existing condition limitations, exclusions and waiting periods with respect to participation and coverage requirements applicable
to the Transferred Employees and their eligible dependents, other than any such limitations, exclusions and waiting periods that
are in effect with respect to such individuals and have not been satisfied under the analogous welfare benefit plan sponsored
or participated in by the Seller immediately prior to the Closing.

 

Section
5.05. Further Actions.

 

(a)           
From and after the Closing, if Buyer, on the one hand, or any of the Seller Parties, on the other hand, receives any payment from
a third party that is the property of the other pursuant to the terms of this Agreement, Buyer or the Seller Parties, as applicable,
shall (i) hold such payment as agent for and on behalf of the other and (ii) promptly remit such payment to the other.

 

(b)          
If, during the term of the Transition Agreement, Buyer and the Seller jointly identify any Asset that was not previously assigned
or otherwise transferred by the Seller to Buyer, then the Seller shall promptly assign and transfer, or cause an applicable affiliate
of the Seller to promptly assign and transfer, the applicable Asset to Buyer or its designee for no additional consideration (but
at Buyer’s sole cost and expense), subject to the terms and conditions of this Agreement.

 

(c)           
If, during the term of the Transition Agreement, Buyer and the Seller jointly identify any Excluded Asset that was transferred
to Buyer, then Buyer shall (or shall cause its designee holding such Excluded Asset to), promptly assign and transfer such Excluded
Asset to the Seller or its designee for no consideration (but at the Seller’s sole cost and expense)

 

Section
5.06. Obsolete Inventory.
Seller shall not be responsible for the cost and expense of the disposal of obsolete inventory reserved for in the Final Closing
Net Working Capital, which costs and expenses shall be solely for Buyer’s account.

 

ARTICLE
VI

INDEMNIFICATION

 

Section
6.01. Survival.
The representations and warranties of the parties hereto contained in this Agreement shall survive the Closing and shall remain
in full force and effect until the date that is 18 months from the Closing Date; provided, however, that (a) the
representations and warranties (i) of the Seller Parties contained in Section 3.01 (Power), Section 3.02 (Organization
and Authority), Section 3.03 (Ownership of Seller; No Subsidiaries), Section 3.04 (No Conflicts; Consents), Section
3.07(a) (Title to Assets), and Section 3.26 (Brokers), and (ii) of Buyer contained in Section 4.01 (Power),
Section 4.02 (Organization and Authority), Section 4.03 (No Conflicts; Consents) and Section 4.04 (Brokers)
(collectively, the “Fundamental Representations”) shall survive for a period of five (5) years from
and after the Closing Date and (b) the representations and warranties of the Seller Parties contained in Section 3.18 (Taxes)
(the “Tax Representations”) shall survive until the 120th day following the expiration of the statute
of limitations period applicable to the matters covered thereby. All covenants and agreements of the parties contained in this
Agreement shall survive the Closing indefinitely or for the period explicitly specified therein. Notwithstanding the foregoing,
any claims asserted in good faith with reasonable specificity and in writing by notice from the non-breaching party to the breaching
party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of the relevant
representation, warranty, covenant or agreement and such claims shall survive until finally resolved.

 

    23 

    

    

 

Section
6.02. Indemnification of Buyer.
From and after the Closing, subject to the limitations, terms
and conditions of this Article VI, to the greatest extent allowed by applicable Law, the Seller Parties, jointly and severally,
shall defend, indemnify and hold harmless Buyer and its directors, officers, employees, parent companies, subsidiaries, and affiliates
(collectively, “Buyer Indemnitees”) from and against any and all demands, obligations, judgments, losses,
claims, suits, damages, fees and expenses (including amounts paid in settlement, costs of investigation and fees and expenses
of attorneys, experts, and consultants incurred to enforce this indemnification), liabilities, fines, penalties and assessments,
and remedial or clean-up costs, whether or not arising from a third party claim (collectively, “Losses”),
that arise out of or relate to:

 

(a)           
Any inaccuracy in or breach of any warranty or representation made by the Seller Parties in this Agreement;

 

(b)          
Any breach of any covenant or agreement made by the Seller Parties in this Agreement; or

 

(c)           
The Excluded Assets or the Excluded Liabilities.

 

Section
6.03. Indemnification of Seller Parties.
From and after the Closing, subject to the limitations, terms and conditions of this Article VI, to the greatest extent
allowed by applicable Law, Buyer shall defend, indemnify and hold harmless the Seller Parties and their respective directors,
officers, employees, parent companies, subsidiaries and affiliates (collectively, “Seller Indemnitees”)
from and against any and all Losses, whether or not arising from a third party claim, that arise out of or relate to:

 

(a)           
Any inaccuracy in or breach of any warranty or representation made by Buyer in this Agreement;

 

(b)          
Any breach of any covenant or agreement made by Buyer in this Agreement; or

 

(c)           
The Assumed Liabilities.

 

Section
6.04. Notice of Claims.
If any Buyer Indemnitee or Seller Indemnitee (as applicable, an “Indemnified Party”) believes that it
has suffered or incurred or reasonably expects in good faith to suffer or incur any Losses for which it is entitled to indemnification
under this Article VI, such Indemnified Party shall so promptly notify the Seller, in the case of notice from a Buyer Indemnitee,
or Buyer, in the case of notice from a Seller Indemnitee (as applicable, the “Indemnifying Party”) with
reasonable particularity in light of the circumstances then existing. If any claim is instituted by or against a third party with
respect to which any Indemnified Party intends to claim indemnification under this Article VI, such Indemnified Party shall
promptly notify the Indemnifying Party of such claim. The notice provided by the Indemnified Party to the Indemnifying Party shall
describe the claim (the “Asserted Liability”) in reasonable detail and shall indicate the amount (or
an estimate) of the Losses that have been or may reasonably be expected in good faith to be suffered by the Indemnified Party.
Subject to Section 6.01, the failure of an Indemnified Party to give any notice required by this Section 6.04 shall
not affect any of the Indemnified Party’s rights under this Article VI, except and only to the extent that such failure
is actually and materially prejudicial to the rights or obligations of the Indemnifying Party. Thereafter, the Indemnified Party
shall promptly deliver to the Indemnifying Party copies of all notices and documents received by the Indemnified Party relating
to the third party claim or such other claim.

 

    24 

    

    

 

Section
6.05. Procedures.

 

(a)           
Except as otherwise provided in this Section 6.05, the Indemnifying Party will have the right, upon written notice to the
Indemnified Party within thirty (30) days of receipt of notice from the Indemnified Party of the commencement of a third party
claim, to control the defense of any such third party claim unless (i) the third party claim relates to a criminal or injunctive
matter, (ii) the third party claim is also asserted against the Seller and the Indemnified Party reasonably determines in good
faith, after consultation with its counsel, that use of counsel selected by the Indemnifying Party to jointly represent the Indemnified
Party would be reasonably likely to present such counsel with a conflict of interest, or (iii) the third party claim involves
a significant customer or vendor of the Indemnified Party. If the Indemnifying Party does not expressly elect to assume the defense
of such third party claim within the thirty (30) day period set forth in the first sentence of this Section 6.05(a), then
the Indemnified Party shall have the sole right to assume the defense of and to settle such third party claim (subject to Section
6.05(b)) with counsel reasonably acceptable to the Indemnifying Party. In the event that the Indemnifying Party elects to
assume the defense of any third party claim (which election shall be at the Indemnifying Party’s discretion but at the Indemnifying
Party’s sole expense and by the Indemnifying Party’s own counsel reasonably acceptable to the Indemnified Party),
then the Indemnified Party shall reasonably cooperate in good faith in such defense; however, the Indemnified Party retains
the right to choose separate defense counsel at its sole expense (unless the Indemnifying Party has specifically agreed in writing
to be responsible for such expense) and to participate in the defense and settlement of any third party claim covered by this
indemnity. If the Indemnified Party reasonably determines that any potential exposure of the Indemnified Party to any risk arising
from such matter is not fully covered by, and entirely collectible under, the indemnity provisions of this Article VI (subject
to the limitations on indemnification set forth in Section 6.06 below), then upon written notice to the Indemnifying Party,
the Indemnified Party may assume the defense of such third party claim and seek indemnification for any Losses attributable to
such third party claim. The Seller Parties and Buyer shall cooperate with each other in all reasonable respects in connection
with the defense of any third party claim. The party controlling the defense of any third party claim shall keep the non-controlling
party advised of the status thereof and shall consider in good faith any recommendations made by the non-controlling party with
respect thereto.

 

(b)          
Notwithstanding the foregoing, without the prior consent of the Indemnified Party, the Indemnifying Party shall not enter into
settlement of any third party claim or consent to the entry of a judgment in connection therewith that: (i) does not provide for
the claimant to give an unconditional release to the Indemnified Party in respect of the Asserted Liability; (ii) involves relief
other than monetary damages; (iii) places restrictions or conditions on the operation of the business of any Indemnified Party
or any of its affiliates; or (iv) involves any finding or admission of criminal liability or of any Laws. The Indemnified Party
shall not agree to any settlement of a third party claim without the prior written consent of the Indemnifying Party.

 

(c)           
In connection with any claim other than a third party claim, the Indemnified Party shall allow the Indemnifying Party and its
professional advisors to investigate the matter or circumstances alleged to give rise to such claim, and whether and to what extent
any amount is payable in respect of the such claim, and the Indemnified Party shall assist the Indemnifying Party’s investigation
by giving such information and assistance (including access to the Indemnified Party’s premises and personnel and the right
to examine and copy any accounts, documents or records) as the Indemnifying Party or any of its professional advisors may reasonably
request. If the Indemnifying Party does not respond to a notice of a such claim within thirty (30) days following delivery thereof
by the Indemnified Party pursuant to Section 6.04, then the Indemnifying Party shall be deemed to have rejected such claim,
in which case the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the
terms and subject to the conditions of this Agreement.

 

    25 

    

    

 

Section
6.06. Limitations on Indemnification;
Mitigation; Subrogation.

 

(a)           
The Buyer Indemnitees shall not be entitled to indemnification pursuant to Section 6.02(a), unless and until the aggregate
amount of all Losses in respect of which the Buyer Indemnitees would otherwise be entitled to indemnification pursuant to Section
6.02(a) exceeds $80,000, in which case the Seller Parties shall be liable for the amount of such Losses from the first dollar
(the “Basket”); provided, however, that the Basket shall not apply to Losses arising out
of or resulting from any inaccuracy in or breach of any Fundamental Representation or Tax Representation of the Seller Parties.

 

(b)          
The maximum aggregate amount of all Losses for which (i) the Seller Parties (considered as a whole for these purposes) shall be
liable pursuant to Section 6.02(a) and (ii) Buyer shall be liable pursuant to Section 6.03(a), in each case shall
not exceed $1,000,000, unless such Losses arise out of or result from any inaccuracy in or breach of any Fundamental Representation
or, with respect to the Seller Parties, any Tax Representation, in which case the maximum aggregate amount of all Losses for which
the Seller Parties (considered as a whole for these purposes) or Buyer, as applicable, shall be liable shall not exceed the Purchase
Price.

 

(c)           
Notwithstanding anything to the contrary contained in this Agreement, (i) the limitations set forth in Sections 6.01, 6.06(a)
and 6.06(b) shall not apply to Losses arising out of or relating to any representation or warranty in the event of
actual fraud and (ii) the parties acknowledge and agree that the Seller Parties’ (considered as a whole for these purposes)
maximum aggregate liability for all indemnification obligations under this Agreement shall not under any circumstances exceed
a maximum aggregate amount equal to the Purchase Price (the “Aggregate Cap”).

 

(d)          
Notwithstanding anything contained herein to the contrary, in no event shall an Indemnified Party be entitled to indemnification
pursuant to this Article VI for, and in no event shall an Indemnifying Party have any liability pursuant to this Article
VI for, any special, indirect, consequential, incidental or punitive damages, any lost profits or any diminution in value,
or any damages based on a multiple, each of which is hereby excluded by agreement of the parties.

 

(e)           
In the event that a particular matter entitles an Indemnified Party to indemnification pursuant to more than one provision of
this Article VI, such Indemnified Party shall be entitled to recover a particular dollar amount of Losses associated with
such matter only once pursuant to this Article VI.

 

(f)           
An Indemnified Party shall not be entitled to indemnification for any Losses relating to any matter to the extent (but only to
the extent) that such Losses are taken into account in the calculation of the Final Closing Net Working Capital.

 

(g)          
For purposes of this Article VI, the amount of any Losses incurred by any Indemnified Party shall be calculated net of
(i) any amounts actually recovered by such Indemnified Party from a third party with respect to such Losses, less the reasonable
costs and expenses incurred to obtain such recovery; and (ii) any third party insurance proceeds actually received by such Indemnified
Party with respect to such Losses under any applicable insurance policy, excluding self-insurance arrangements and less the reasonable
costs and expenses incurred by such Indemnified Party to collect such insurance proceeds (including reasonable attorneys’
fees, any deductibles and any increases in premium directly related to obtaining such insurance proceeds).

 

    26 

    

    

 

(h)          
If an Indemnified Party receives any amounts under applicable unaffiliated third party insurance policies, but in all events excluding
any self-insurance policies or coverages, or from any third party alleged to be responsible for any Losses (each, a “Collateral
Source”) subsequent to an indemnification payment by the Indemnifying Party, then such Indemnified Party shall promptly
reimburse the Indemnifying Party for any payment made or expense incurred by such Indemnifying Party in connection with providing
such indemnification payment up to the amount received by the Indemnified Party, net of any reasonable and documented out-of-pocket
expenses incurred by the Indemnified Party in collecting such amount (the “Recovery Costs”). In addition, the
amount of any indemnification obligation hereunder shall be reduced by any amount actually received by the Indemnified Party from
a Collateral Source (whether received before or subsequent to an indemnification payment being made hereunder), less the Recovery
Costs.

 

(i)            
Each Indemnified Party shall mitigate any Losses that such Indemnified Party asserts under this Article VI as required
by applicable Law.

 

(j)            
In the event that an Indemnified Party has a right against a third party with respect to any Losses paid to such Indemnified Party
by an Indemnifying Party, then such Indemnifying Party shall, to the extent of such payment, be subrogated to such rights of such
Indemnified Party.

 

(k)          
Notwithstanding the Aggregate Cap, nothing contained in this Section 6.06 shall (i) be deemed to create any presumption
or implication that Buyer has assumed or is responsible for, under this Agreement or any other agreement executed in connection
with the consummation of the Transactions, any Excluded Liability or obligation arising thereunder, or (ii) prevent Buyer from
asserting to any third party that the Seller is the primary or only obligor with respect to any such Excluded Liability.

 

Section
6.07. Materiality.
Notwithstanding anything contained herein to the contrary, for purposes of determining the amount of Losses that are the subject
matter of a claim for indemnification for a breach of a representation or warranty contained in this Agreement (but not for purposes
of determining whether there has been a breach of any such representation or warranty), each representation and warranty in this
Agreement and the Schedules to this Agreement will be read without regard and without giving effect to the terms “material”
or “material adverse effect” or similar phrases contained in such representation or warranty which have the effect
of making such representation and warranty less restrictive (that is, as if such word or qualification were deleted from such
representation or warranty).

 

Section
6.08. Right of Set-Off.
Subject to the limitations set forth in this Article VI, by written notice to the Seller Parties, Buyer shall have the
right, but not the obligation, to set-off any amount of Losses to which any Buyer Indemnitee is entitled under this Article
VI by withholding such amount from any funds that Buyer is obligated to pay under this Agreement, in chronological order of
due date; provided, however, that Buyer shall first provide at least five (5) business days’ written notice to the
Seller Parties prior to such set-off describing in reasonable detail the nature and basis for such Losses. With respect to any
such Losses that are set-off against any amount otherwise due and payable by Buyer to any Seller Party hereunder (such amount,
the “Set-Off Amount”) that have not yet been (i) finally agreed to in writing between a Buyer
Indemnitee and the Seller Parties as to both liability and quantum or (ii) finally determined in favor of a Buyer Indemnitee
by an arbitrator or court of competent jurisdiction and in respect of which there is no right to appeal (a “Final
Determination”), to the extent the Set-Off Amount is greater than the amount determined pursuant to the Final Determination,
Buyer will pay or cause to be paid to the applicable Seller Party, by wire transfer of immediately available funds to the Bank
Account, the amount of such excess plus simple interest thereon from and including the date the set-off was made but excluding
the payment date at a rate per annum equal to the prime rate as published in The Wall Street Journal, Eastern Edition on
the date the set-off was made. Such interest shall be payable at the same time as the payment to which it relates and shall be
calculated daily on the basis of a year of three hundred sixty-five (365) days and the actual number of days elapsed. The exercise
of such set-off right by Buyer shall be done in good faith and is not intended to be the exclusive means of collecting Losses
incurred or suffered by Buyer in connection with this Agreement.

 

    27 

    

    

 

Section
6.09. Exclusive Remedy.
Subject to Section 7.06, the parties acknowledge and agree that their sole and exclusive remedy with respect to any and
all claims (other than (a) claims arising from actual fraud or (b) other remedies expressly provided in this Agreement, including
Section 2.03 with respect to the calculation of the Closing Net Working Capital, or in any Related Instrument) for any
breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject
matter of this Agreement or the Transactions contemplated hereby, shall be pursuant to the indemnification provisions set forth
in this Article VI.

 

ARTICLE
VII

MISCELLANEOUS

 

Section
7.01. WARN.
Seller shall be responsible for all liabilities that arise under the United States Worker Adjustment and Retraining Notification
Act (WARN Act) or any similar state Laws in connection with any termination by Seller of its employees in connection with the
Transaction, including notice requirements and liabilities under said Laws for wages and the cost of employee benefits.

 

Section
7.02. Expenses.
Except as otherwise provided in this Agreement, each party hereto shall pay its own expenses incident to this Agreement and the
Transactions (including fees and expenses of brokers, investment bankers, attorneys, and other advisors), whether or not the Transactions
are consummated. Unpaid ad valorem Taxes for the current year that are attributable to ownership of any of the Assets shall be
prorated among the parties, based on the number of days of ownership attributable to each during the applicable Tax year. Buyer
shall pay (a) all transfer, documentary, stamp, recording, or similar Taxes and (b) all recording or filing fees related to the
Leased Real Property, including the recording of the memoranda of leases.

 

Section
7.03. Notices.
All notices, consents, requests, instructions, approvals and other communications provided for herein shall be in writing and
shall be deemed validly given, made or served (a) on delivery, if delivered personally, (b) on the third business day after being
deposited in the mail if sent by certified mail, postage prepaid, or (c) on the next business day if sent by reputable overnight
courier, costs prepaid. All notices, consents, requests, instructions, approvals and other communications provided for herein
shall be sent to the address set forth for the receiving party on the signature page hereto, or to such other address as shall
be furnished in writing by any party to the others in accordance with this Section 7.03. Notices given to Seller’s
Agent (as defined below in Section 7.17) shall be deemed given to all of the Seller Parties.

 

Section
7.04. Public Announcements.
No party shall issue any press release or make any public statement with respect to this Agreement or the Transactions without
the prior written consent of the other (not to be unreasonably withheld, conditioned or delayed), except that (a) any party may
make any disclosure required by applicable Laws (including securities Laws) or stock exchange rules if it determines in good faith
that it is required to do so, (b) following the Closing, Buyer and Seller may each issue a press release announcing the Closing
of the Transactions (provided that the other party has first been provided an opportunity to review such press release), and (c)
following the Closing, customary notifications substantially in the form attached hereto as Exhibit 7.04 by Buyer to customers,
suppliers, and others formerly doing business with Seller, or in possession of any Assets, will not constitute public statements
for purposes of this Section 7.04 (it being understood, for the avoidance of doubt, that in no event shall any such notifications
disclose the Purchase Price or any of the other terms or conditions of this Agreement).

 

    28 

    

    

 

Section
7.05.  [Intentionally omitted]

 

Section
7.06. Specific Performance.
The parties acknowledge that irreparable and ongoing damages, for which monetary damages (even if available) would not be an adequate
remedy, would occur in the event that any provision of this Agreement were not performed in accordance with its specific terms
or otherwise were breached (including if any Seller Party were to breach the confidentiality obligations of Section 5.01
and the non-competition obligations of Section 5.02). Accordingly, each party shall have the right, in addition to any
other rights which it may have, to specific performance and equitable injunctive relief if the other party shall fail, or threaten
to fail, to perform any obligations under this Agreement. Each party waives, to the maximum extent allowed by Law, any requirement
that the other party post any bond or other security as a condition of obtaining any such relief. Each party’s right to
enforce its rights under this Section 7.06 are not subject to Section 7.14 below.

 

Section
7.07. Amendment; Waiver.
No provision hereof may be terminated, amended, or waived, other than by an express written instrument signed by the party against
whom the enforcement of such change is sought. No waiver by any party of any condition, or of the breach of any term, provision,
representation, or warranty contained in this Agreement or any other document or instrument to be delivered pursuant to this Agreement
or in connection with the Transactions shall be deemed to be, or construed as, (a) a further or continuing waiver of any such
condition or breach, (b) a waiver of any other condition or breach, or (c) a breach of any other term, provision, representation,
or warranty.

 

Section
7.08. Binding Effect; Assignment.
This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors
and permitted assigns, and, except for the indemnification rights of the indemnitees under Article VI, who are third party
beneficiaries of this Agreement, no other Person shall acquire or have any right under, or by virtue of, this Agreement. No Seller
Party may assign or transfer any right or delegate any obligation hereunder without the prior written consent of Buyer, in its
sole discretion. Buyer may assign or transfer its rights hereunder to (a) any affiliate of Buyer or (b) any purchaser or transferee
of all or substantially all of the Assets being acquired hereunder; provided, however, that in connection with any
such assignment pursuant to clause (a) of this Section 7.08, Buyer shall remain jointly and severally liable with
the assignee for all of Buyer’s obligations under this Agreement. Any purported assignment or transfer in violation of this
Section 7.08 shall be null and void.

 

Section
7.09. Governing Law.
This Agreement shall be governed by and construed and enforced in accordance with the internal, substantive Laws of the State
of Delaware, without giving effect to the conflict of Laws principles that would apply the Laws of any other jurisdiction.

 

Section
7.10. Severability.
Any provision of this Agreement that is found by an arbitrator or other adjudicator of competent jurisdiction to be invalid, void,
or otherwise unenforceable shall in no way affect, impair, or invalidate any other provision hereof, and the remaining provisions
hereof shall nevertheless remain in full force and effect. To the extent that any such provision is so found to be invalid, void,
or otherwise unenforceable as written, the parties authorize the arbitrator or other adjudicator to revise such provision to the
greatest extent allowed by applicable Law in order to effect the original intent of the parties as closely as possible so that
the Transactions be consummated as originally contemplated by the parties. In the event that the arbitrator or other adjudicator
declines to exercise such authority, the parties agree to make such revision independently of such arbitrator or other adjudicator.

 

    29 

    

    

 

Section
7.11. Entire Agreement.
This Agreement, the Related Instruments, the Exhibits and Schedules to this Agreement and the Related Instruments, represent the
entire agreement and understanding of the parties with respect to the Transactions and supersede and cancel all prior agreements,
understandings, or communications, whether oral or in writing, relating to the subject matter hereof. No representation, warranty,
promise, inducement, or statement of intention has been made by any party hereto which is not embodied in this Agreement, the
Related Instruments, the Exhibits and Schedules to this Agreement and the Related Instruments, and no party shall be found liable
for any alleged representation, warranty, promise, inducement, or statement or intention not so set forth.

 

Section
7.12. No Presumption Against Drafter.
This Agreement and each of the terms and provisions hereof are
deemed to have been explicitly negotiated between the parties, and the language in all parts of such agreements shall, in all
cases, be construed according to its fair meaning and not strictly for, or against, any party, regardless of who drafted it.

 

Section
7.13. Construction.
A disclosure on one Schedule to this Agreement relates only to the sections of this Agreement that reference such Schedule and
not to any other Schedule or section of this Agreement, unless expressly so stated or a cross-reference is made from one Schedule
to another or it is reasonably apparent on the face of such disclosure that such disclosure also is responsive to another section
or subsection of any other Schedule. References to sections or Schedules refer to section of, or Schedules to, this Agreement,
unless otherwise expressly indicated. The headings contained in this Agreement are for reference purposes only and shall not affect,
in any way, the meaning or interpretation of this Agreement. Whenever the words “include,” “includes,”
or “including” are used in this Agreement, they shall be deemed to be followed by the words, “without limitation.”
Any reference in this Agreement to gender shall include all genders, including the neuter, and words imparting the singular number
only shall include the plural and vice versa. Any reference in this Agreement to “knowledge”, (a) with respect to
Buyer, means the actual knowledge of Bob Smart and such knowledge as would be imputed to him upon reasonable inquiry in the normal
exercise of duties and (b) with respect to the Seller Parties, means the actual knowledge of Mark Fandrich or Sev Sadura and such
knowledge as would be imputed to such individuals upon reasonable inquiry in the normal exercise of duties. All references herein
to a “party” or “parties” are to a party or parties to this Agreement unless otherwise specified.

 

Section
7.14. Arbitration.
Except as otherwise provided in Section 2.03 or Section 7.06, all disputes arising directly or indirectly out of
the this Agreement, including the performance or non-performance of a party or the meaning or construction of any provision (“Disputes”),
shall be fully resolved in confidential arbitration proceedings as set forth in this Section 7.14. All Disputes shall be
submitted to binding arbitration conducted and governed by the American Arbitration Association, Rules of Commercial Arbitration
(“AAA Rules”); provided that (a) any arbitrator selected or otherwise assigned to decide the matter
shall be an attorney licensed in the United States who has at least ten years of legal experience transacting or litigating mergers
and acquisitions transactions, but with no prior, existing or potential business relationship with any of the parties hereto or
any of their respective affiliates, attorneys or other advisors and who shall be appointed in accordance with the AAA Rules (b)
any arbitration hearings shall take place in Minneapolis, Minnesota, and the parties shall use good-faith efforts to schedule
such hearings on successive days; (c) the arbitrator(s) shall be required to hear, and rule on, dispositive motions (such as a
motion for summary judgment) addressing any issues of law or undisputed facts as provided by Fed. R. Civ. Proc. 56, (d) the parties
are entitled to depose such witnesses whose anticipated testimony is found by the arbitrator(s) to be necessary (taking into account
the amount in dispute) to determine the matter, (e) the parties are required to complete discovery during a period of time that
shall not exceed six months, (f) no postponements are allowed in the absence of the parties’ agreement or good cause shown,
(g) the parties are permitted, without limitation, to submit closing briefs, which must be considered in the arbitration decision
if submitted to the arbitrator(s) within a reasonable time to be determined by the arbitrator(s), and (h) the arbitration decision
must follow applicable Law and consist of a reasoned award demonstrating how such Law was followed. Such arbitration shall be
conducted at a time mutually agreed upon by the parties; but, in the event of such failure to agree on the time for arbitration,
such decision shall be made by the American Arbitration Association. In all cases, one arbitrator shall be selected in accordance
with the AAA Rules (the “Original Arbitrator”). The Original Arbitrator shall decide the matter, unless
the amount in controversy (as determined by the Original Arbitrator) exceeds $10 million and either party elects to have a panel.
In such event, there shall be a panel of three arbitrators, consisting of the Original Arbitrator and one arbitrator selected
by each party. Any award or decision in arbitration shall be binding upon both parties and shall be enforced by any court of competent
jurisdiction. NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY IN THIS AGREEMENT, THE PARTIES HEREBY AGREE: THAT THE UNDERLYING AWARD
MAY BE APPEALED PURSUANT TO THE AAA’S OPTIONAL APPELLATE ARBITRATION RULES (“APPELLATE RULES”);
THAT THE UNDERLYING AWARD RENDERED BY THE ARBITRATOR(S) SHALL, AT A MINIMUM, BE A REASONED AWARD; AND THAT THE UNDERLYING AWARD
SHALL NOT BE CONSIDERED FINAL UNTIL AFTER THE TIME FOR FILING THE NOTICE OF APPEAL PURSUANT TO THE APPELLATE RULES HAS EXPIRED.
APPEALS MUST BE INITIATED WITHIN 30 DAYS OF RECEIPT OF AN UNDERLYING AWARD, AS DEFINED BY RULE A-3 OF THE APPELLATE RULES, BY
FILING A NOTICE OF APPEAL WITH ANY AAA OFFICE. FOLLOWING THE APPEAL PROCESS THE DECISION RENDERED BY THE APPEAL TRIBUNAL MAY BE
ENTERED IN ANY COURT HAVING JURISDICTION THEREOF.

 

    30 

    

    

 

Section
7.15. Waiver of Jury Trial.
EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section
7.16. Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together
shall be deemed to be one and the same instrument and shall become effective when one or more counterparts have been signed by
each of the parties and delivered to the other party. This Agreement may be executed by facsimile, portable document format (pdf)
or other electronically or mechanically reproduced signature and such signature shall constitute an original signature for all
purposes notwithstanding any statute or decisional Law to the contrary.

 

Section
7.17. Agency.
The Shareholder (“Seller’s Agent”) is hereby appointed, and Seller’s Agent hereby accepts
appointment, as agent, proxy, and attorney-in-fact for, and on behalf of, each of the Seller Parties with regard to all purposes
under this Agreement, including the Related Instruments, such that Seller’s Agent shall have the full power and authority
to consummate the Transactions on behalf of each of the Seller Parties, perform all post-Closing matters related thereto, and
do any and all things, and take any and all actions, that Seller’s Agent, in Seller’s Agent’s sole discretion,
may consider necessary, proper, or convenient in connection with, or to carry out, the Transactions. Without limiting the foregoing
sentence, Seller’s Agent is fully empowered and authorized to: (a) receive and disburse all payments, (b) give and receive
notices and other communications on behalf of each of the Seller Parties, and (c) agree to, negotiate, enter into settlements,
compromises, and any other resolutions of, demand arbitration of, and comply with court Orders and arbitration awards with respect
to matters under this Agreement, including indemnification and other claims by or against any of the Seller Parties. The Seller
Parties agree that the appointment of Seller’s Agent is coupled with an interest and shall be irrevocable, except to the
extent provided otherwise by any applicable Law. Any decision, act, consent, waiver, or instruction of Seller’s Agent relating
to this Agreement, including the Related Instruments, or any matter arising thereunder or related thereto shall constitute a decision
of each of the Seller Parties, jointly and severally, shall be final, binding, and conclusive upon each of them, and shall survive
the bankruptcy, dissolution, or liquidation of any of the Seller Parties. Buyer and the other Buyer Indemnitees may rely upon
any such decision, act, consent, waiver, or instruction of Seller’s Agent as being the decision, consent, waiver, or instruction
of each and every Seller Party. Buyer and the other Buyer Indemnitees are hereby relieved from all liability to any Person for
any acts done by them in accordance with any such decision, consent, waiver, or instruction of Seller’s Agent.

 

    31 

    

    

 

Section
7.18. Bulk Sales Laws.
Each party hereby waives compliance by the parties with the “bulk sales,” “bulk transfers” or similar
Laws and all other similar Laws in all applicable jurisdictions in respect of the Transactions contemplated by this Agreement.

 

Section
7.19. No Presumption Against Drafting
Party. Each party acknowledges that all parties to this
Agreement have been represented by counsel in connection with this Agreement and the transactions contemplated hereby. Accordingly,
any rule of Law or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the
drafting party has no application and is expressly waived.

 

(Signature
Pages Follow)

 

    32 

    

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and year first above written.

	 	 	 	 
	
        BUYER:
	 	Address
	 	 	 
	OLDCASTLE INFRASTRUCTURE, INC.	 	
        Oldcastle
        Infrastructure, Inc.

        

        7000
        Central Pkwy, Suite 800

        

        Atlanta,
        GA 30328

        

        Attention: Erica Chapman

         

        With copies to (which shall not constitute
        notice):

         

        CRH Americas Law Group

        900 Ashwood Parkway, Suite 800

        Atlanta, GA 30338

        Attention: David O. Kern

         

        and

         

        Polsinelli PC

        

        1401 Lawrence Street, Suite 2300

        

        Denver, Colorado 80202

        

        Attention: Brian Furgason

	 	 	 
	By:	 	 
	Name:	Erica Chapman	 
	Title:	CFO/CAO/Secretary	 
	 

                                        

                                        

                                        

                                        

                                        

                                        

                                        

                                        

                                        

                                        
	 

 

Signature
Page to Asset Purchase Agreement 

 

     

    

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and year first above written.

 

	 	 	 	 
	SELLER
    PARTIES:	 	Address
	 	 	 
	SUTTLE,
    INC.	 	10900
        Red Circle Drive

        

        Minnetonka,
        Minnesota 55343

        

        Attention:
        Roger Lacy

         

        With
        a copy to (which shall not constitute notice):

         

        Ballard
        Spahr LLP

        

        2000
        IDS Center

        

        80
        South 8th Street

        

        Minneapolis,
        MN 55402

        

        E-mail:
        lovettt@ballardspahr.com

        

        Attention:
Thomas G. Lovett, IV

	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 

                                                                                 

                                                                                 

                                                                                 

                                                                                 
	 
	

                                                                                 
	 
	 	 	 
	COMMUNICATIONS
    SYSTEMS, INC.	 	 
	 	 	 	10900
        Red Circle Drive

        

        Minnetonka,
        Minnesota 55343

        

        Attention:
Roger Lacy

	By:	 	 
	Name:	 	 
	Title:	 	 

 

Signature
Page to Asset Purchase Agreement 

 

     

    

    

Exhibit
A

Non-Fiber Optic Product Lines

 

	Family
    Group	Family
    & Family Description
	Legacy	S66P	 66
    Products
	Legacy	SCRS	 Corro-Shield
    Products
	Legacy	SDSL	 DSL
    Products
	Legacy	STRD	 Traditional
    Products
	MediaMAX	SPDP	 Premise
    Distribution Passives
	MediaMAX	SSOHO	 SOHO
    Products
	MediaMAX	SSST	 Speedstar
    Products
	Other	SCONC	 Connectivity
    Copper
	Other	SOSPC	 Outside
    Plant Products Metal
	Other	SMISC	 Miscellaneous
	Other	SOEM	 OEM
	Other	RM	 Raw
    MaterialsExhibit 4.5

 

DESCRIPTION
OF SECURITIES

 

The
following is a summary of the material terms of our securities registered under Section 12 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), as of December 31, 2019, and provisions of our amended and restated certificate of
incorporation and bylaws. The summary is subject to and qualified in its entirely by reference to the charter and bylaws, each
of which is filed as an exhibit to the Annual Report on Form 10-K. The following also summarizes certain provisions of the General
Corporation Law of the State of Delaware (the “DGCL”) and is subject to and qualified in its entirely by reference
to the DGCL.

 

General

 

Pursuant
to our amended and restated certificate of incorporation, our authorized capital stock consists of 200,000,000 shares of Class
A common stock, $0.0001 par value per share, 20,000,000 shares of Class B common stock, $0.0001 par value per share, and 1,000,000
shares of undesignated preferred stock, $0.0001 par value per share. The following description summarizes certain terms of our
capital stock as set out more particularly in our amended and restated certificate of incorporation. Because it is only a summary,
it may not contain all the information that is important to you.

 

Units

 

Each
unit consists of one whole share of Class A common stock and one-third of one warrant. Each whole warrant entitles the holder
thereof to purchase one share of our Class A common stock at a price of $11.50 per share, subject to adjustment as discussed below.
Pursuant to the warrant agreement, a warrantholder may exercise its warrants only for a whole number of shares of Class A common
stock. This means that only a whole warrant may be exercised at any given time by a warrantholder.

 

Our
units are listed on the New York Stock Exchange (the “NYSE”) under the symbol “SPAQ.U.” On September 28,
2018, we announced that, commencing October 1, 2018, holders of our units may elect to separately trade the shares of Class A
common stock and warrants included in the units. The shares of Class A common stock and warrants that are separated will trade
on the NYSE under the symbols “SPAQ” and “SPAQ WS,” respectively. Those units not separated will continue
to trade on the NYSE under the symbol “SPAQ.U.” No fractional warrants will be issued upon separation of the units,
and only whole warrants will trade.

 

Additionally,
any units that are not separated prior to the completion of our initial business combination will automatically separate into
their component parts and will not be traded after completion of our initial business combination.

 

Common
Stock

 

As
of March 11, 2020, 55,200,000 shares of our Class A common stock (the “public shares”) and 13,800,000 shares of our
Class B common stock (the “founder shares”) were outstanding.

 

Common
stockholders of record are entitled to one vote for each share held on all matters to be voted on by stockholders. Holders of
the Class A common stock and holders of the Class B common stock will vote together as a single class on all matters submitted
to a vote of our stockholders except as required by law. Unless specified in our amended and restated certificate of incorporation
or bylaws, or as required by applicable provisions of the DGCL or applicable stock exchange rules, the affirmative vote of a majority
of our shares of common stock that are voted is required to approve any such matter voted on by our stockholders. Our board of
directors is divided into three classes, each of which generally serves for a term of three years with only one class of directors
being elected in each year. There is no cumulative voting with respect to the election of directors, with the result that the
holders of more than 50% of the shares voted for the election of directors can elect all of the directors. Our stockholders are
entitled to receive ratable dividends when, as and if declared by the board of directors out of funds legally available therefor.

 

Because
our amended and restated certificate of incorporation authorizes the issuance of up to 200,000,000 shares of Class A common stock,
if we were to enter into a business combination, we may (depending on the terms of such a business combination) be required to
increase the number of shares of Class A common stock which we are authorized to issue at the same time as our stockholders vote
on the business combination to the extent we seek stockholder approval in connection with our business combination.

 

     

     

    

 

Our
board of directors is divided into three classes with only one class of directors being elected in each year and each class (except
for those directors appointed prior to our first annual meeting of stockholders) serving a three-year term. In accordance with
the NYSE corporate governance requirements, we are not required to hold an annual meeting until no later than one year after our
first fiscal year end following our listing on the NYSE. Under Section 211(b) of the DGCL, we are, however, required to hold an
annual meeting of stockholders for the purposes of electing directors in accordance with our bylaws, unless such election is made
by written consent in lieu of such a meeting. We may not hold an annual meeting of stockholders to elect new directors prior to
the consummation of our initial business combination, and thus, we may not be in compliance with Section 211(b) of the DGCL, which
requires an annual meeting. Therefore, if our stockholders want us to hold an annual meeting prior to the consummation of our
initial business combination, they may attempt to force us to hold one by submitting an application to the Delaware Court of Chancery
in accordance with Section 211(c) of the DGCL.

 

We
will provide our public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion
of our initial business combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the
trust account calculated as of two business days prior to the consummation of our initial business combination including interest
earned on the funds held in the trust account and not previously released to us to pay our franchise and income taxes, divided
by the number of then outstanding public shares, subject to the limitations described herein. The per-share amount we will distribute
to investors who properly redeem their shares will not be reduced by the deferred underwriting discounts and commissions that
we will pay to the underwriters of our initial public offering. Our sponsor, officers and directors have entered into a letter
agreement with us, pursuant to which they have agreed to waive their redemption rights with respect to any founder shares and
any public shares held by them in connection with the completion of our business combination. Unlike many blank check companies
that hold stockholder votes and conduct proxy solicitations in conjunction with their initial business combinations and provide
for related redemptions of public shares for cash upon completion of such initial business combinations even when a vote is not
required by law, if a stockholder vote is not required by law and we do not decide to hold a stockholder vote for business or
other legal reasons, we will, pursuant to our amended and restated certificate of incorporation, conduct the redemptions pursuant
to the tender offer rules of the SEC, and file tender offer documents with the SEC prior to completing our initial business combination.
Our amended and restated certificate of incorporation will require these tender offer documents to contain substantially the same
financial and other information about the initial business combination and the redemption rights as is required under the SEC’s
proxy rules. If, however, stockholder approval of the transaction is required by law, or we decide to obtain stockholder approval
for business or other legal reasons, we will, like many blank check companies, offer to redeem shares in conjunction with a proxy
solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If we seek stockholder approval, we will
complete our initial business combination only if a majority of the outstanding shares of common stock voted are voted in favor
of the business combination. A quorum for such meeting will consist of the holders present in person or by proxy of shares of
outstanding capital stock of the company representing a majority of the voting power of all outstanding shares of capital stock
of the company entitled to vote at such meeting. For purposes of seeking approval of the majority of our outstanding shares of
common stock voted, non-votes will have no effect on the approval of our business combination once a quorum is obtained. We intend
to give approximately 30 days (but not less than 10 days nor more than 60 days) prior written notice of any such meeting, if required,
at which a vote shall be taken to approve our business combination. These quorum and voting thresholds, and the voting agreements
of our initial stockholders, may make it more likely that we will consummate our initial business combination.

 

If
we seek stockholder approval of our initial business combination and we do not conduct redemptions in connection with our business
combination pursuant to the tender offer rules, our amended and restated certificate of incorporation provides that a public stockholder,
together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group”
(as defined under Section 13(d)(3) of the Exchange Act), will be restricted from redeeming its shares with respect to more than
an aggregate of 20% of the public shares, which we refer to as the Excess Shares. However, we would not be restricting our stockholders’
ability to vote all of their shares (including Excess Shares) for or against our business combination. Our stockholders’
inability to redeem the Excess Shares will reduce their influence over our ability to complete our business combination, and such
stockholders could suffer a material loss in their investment if they sell such Excess Shares on the open market. Additionally,
such stockholders will not receive redemption distributions with respect to the Excess Shares if we complete the business combination.

 

    2

     

    

 

If
we seek stockholder approval in connection with our business combination, our initial stockholders have agreed to vote their founder
shares and any public shares purchased during or after our initial public offering in favor of our initial business combination.
As a result, in addition to our initial stockholders’ founder shares, we would need 20,700,001, or 37.5%, of the 55,200,000
public shares sold in our initial public offering to be voted in favor of the business combination (assuming all outstanding shares
are voted) in order to have our initial business combination approved. Additionally, each public stockholder may elect to redeem
its public shares irrespective of whether it votes for or against the proposed transaction (subject to the limitation described
in the preceding paragraph).

 

Pursuant
to our amended and restated certificate of incorporation, if we are unable to complete our business combination within 24 months
from the closing of our initial public offering, we will (i) cease all operations except for the purpose of winding up, (ii) as
promptly as reasonably possible but not more than ten business days thereafter subject to lawfully available funds therefor, redeem
the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account including
interest earned on the funds held in the trust account and not previously released to us to pay our franchise and income taxes
(less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which
redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further
liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption,
subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case
to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. Our sponsor,
officers and directors have entered into a letter agreement with us, pursuant to which they have agreed to waive their rights
to liquidating distributions from the trust account with respect to any founder shares held by them if we fail to complete our
business combination within 24 months from the closing of our initial public offering. However, if our sponsor, officers or directors
acquire public shares in or after our initial public offering, they will be entitled to liquidating distributions from the trust
account with respect to such public shares if we fail to complete our business combination within the prescribed time period.

 

In
the event of a liquidation, dissolution or winding up of the company after a business combination, our stockholders are entitled
to share ratably in all assets remaining available for distribution to them after payment of liabilities and after provision is
made for each class of stock, if any, having preference over the common stock. Our stockholders have no preemptive or other subscription
rights. There are no sinking fund provisions applicable to the common stock, except that we will provide our public stockholders
with the opportunity to redeem their public shares for cash equal to their pro rata share of the aggregate amount then on deposit
in the trust account, upon the completion of our initial business combination, subject to the limitations described herein.

 

Founder
Shares

 

The
founder shares are identical to the shares of Class A common stock included in the units sold in our initial public offering,
and holders of founder shares have the same stockholder rights as public stockholders, except that (i) the founder shares are
subject to certain transfer restrictions, as described in more detail below, (ii) our sponsor, officers and directors have entered
into a letter agreement with us, pursuant to which they have agreed (A) to waive their redemption rights with respect to any founder
shares and any public shares held by them in connection with the completion of our business combination, (B) to waive their redemption
rights with respect to any founder shares and public shares held by them in connection with a stockholder vote to approve an amendment
to our amended and restated certificate of incorporation that would affect the substance or timing of our obligation to redeem
100% of our public shares if we have not consummated an initial business combination within 24 months from the closing of our
initial public offering and (C) to waive their rights to liquidating distributions from the trust account with respect to any
founder shares held by them if we fail to complete our business combination within 24 months from the closing of our initial public
offering, although they will be entitled to liquidating distributions from the trust account with respect to any public shares
they hold if we fail to complete our business combination within such time period, (iii) the founder shares are shares of our
Class B common stock that will automatically convert into shares of our Class A common stock at the time of our initial business
combination on a one-for-one basis, subject to adjustment pursuant to certain anti-dilution rights, as described herein and (iv)
the founder shares are subject to registration rights. If we submit our business combination to our public stockholders for a
vote, we will complete our initial business combination only if a majority of the outstanding shares of common stock voted are
voted in favor of the initial business combination. Our initial stockholders have agreed to vote any founder shares held by them
and any public shares purchased during or after our initial public offering in favor of our initial business combination.

 

    3

     

    

 

The
shares of Class B common stock will automatically convert into shares of Class A common stock at the time of our initial business
combination on a one-for-one basis (subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations
and the like), and subject to further adjustment as provided herein. In the case that additional shares of Class A common stock,
or equity-linked securities, are issued or deemed issued in excess of the amounts sold in our initial public offering and related
to the closing of the business combination (other than the forward purchase securities described below), the ratio at which shares
of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of
the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance)
so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal,
in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon
completion of our initial public offering plus all shares of Class A common stock and equity-linked securities issued or deemed
issued in connection with the business combination (excluding the forward purchase securities and any shares or equity-linked
securities issued, or to be issued, to any seller in the business combination).

 

Our
initial stockholders have agreed not to transfer, assign or sell any founder shares held by them until one year after the date
of the consummation of our initial business combination or earlier if, subsequent to our business combination, (i) the last sale
price of our common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations and
recapitalizations) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business
combination or (ii) we consummate a subsequent liquidation, merger, stock exchange or other similar transaction that results in
all of our stockholders having the right to exchange their shares of common stock for cash, securities or other property.

 

Preferred
Stock

 

Our
amended and restated certificate of incorporation provides that shares of preferred stock may be issued from time to time in one
or more series. Our board of directors will be authorized to fix the voting rights, if any, designations, powers, preferences
and relative, participating, optional or other special rights and any qualifications, limitations and restrictions thereof, applicable
to the shares of each series. Our board of directors will be able to, without stockholder approval, issue preferred stock with
voting and other rights that could adversely affect the voting power and other rights of the holders of the common stock and could
have anti-takeover effects. The ability of our board of directors to issue preferred stock without stockholder approval could
have the effect of delaying, deferring or preventing a change of control of us or the removal of existing management. We have
no preferred stock outstanding at the date hereof. Although we do not currently intend to issue any shares of preferred stock,
we cannot assure you that we will not do so in the future.

 

Warrants

 

Public
Warrants

 

Each
whole warrant entitles the registered holder to purchase one whole share of our Class A common stock at a price of $11.50 per
share, subject to adjustment as discussed below, at any time commencing 30 days after the completion of our initial business combination,
provided that we have an effective registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), covering the shares of Class A common stock issuable upon exercise of the warrants and a current prospectus relating
to them is available (or we permit holders to exercise their warrants on a cashless basis under the circumstances specified in
the warrant agreement) and such shares are registered, qualified or exempt from registration under the securities, or blue sky,
laws of the state of residence of the holder. Pursuant to the warrant agreement, a warrantholder may exercise its warrants only
for a whole number of shares of Class A common stock. This means that only a whole warrant may be exercised at any given time
by a warrantholder. The warrants will expire five years after the completion of our initial business combination, at 5:00 p.m.,
New York City time, or earlier upon redemption or liquidation.

 

    4

     

    

 

We
will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation
to settle such warrant exercise unless a registration statement under the Securities Act with respect to the shares of Class A
common stock underlying the warrants is then effective and a prospectus relating thereto is current, subject to our satisfying
our obligations described below with respect to registration. No warrant will be exercisable and we will not be obligated to issue
shares of Class A common stock upon exercise of a warrant unless the Class A common stock issuable upon such warrant exercise
has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder
of the warrants. In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to
a warrant, the holder of such warrant will not be entitled to exercise such warrant and such warrant may have no value and expire
worthless. In no event will we be required to net cash settle any warrant. In the event that a registration statement is not effective
for the exercised warrants, the purchaser of a unit containing such warrant will have paid the full purchase price for the unit
solely for the share of Class A common stock underlying such unit.

 

We
have agreed that as soon as practicable, but in no event later than 15 business days, after the closing of our initial business
combination, we will use our best efforts to file with the SEC a registration statement for the registration, under the Securities
Act, of the shares of Class A common stock issuable upon exercise of the warrants. We will use our best efforts to cause the same
to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto,
until the expiration of the warrants in accordance with the provisions of the warrant agreement. Notwithstanding the above, if
our Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it
satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option,
require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section
3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration
statement, but we will be required to use our best efforts to register or qualify the shares under applicable blue sky laws to
the extent an exemption is not available.

 

Once
the warrants become exercisable, we may call the warrants for redemption:

 

		●	in
                                         whole and not in part;

 

		●	at
                                         a price of $0.01 per warrant;

 

		●	upon
                                         not less than 30 days’ prior written notice of redemption (the “30-day redemption
                                         period”) to each warrantholder; and

 

		●	if,
                                         and only if, the reported last sale price of the Class A common stock equals or exceeds
                                         $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations
                                         and the like) for any 20 trading days within a 30-trading day period ending three business
                                         days before we send the notice of redemption to the warrantholders.

 

If
and when the warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or qualify
the underlying securities for sale under all applicable state securities laws.

 

We
have established the last of the redemption criterion discussed above to prevent a redemption call unless there is at the time
of the call a significant premium to the warrant exercise price. If the foregoing conditions are satisfied and we issue a notice
of redemption of the warrants, each warrantholder will be entitled to exercise his, her or its warrant prior to the scheduled
redemption date. However, the price of the Class A common stock may fall below the $18.00 redemption trigger price (as adjusted
for stock splits, stock dividends, reorganizations, recapitalizations and the like) as well as the $11.50 (for whole shares) warrant
exercise price after the redemption notice is issued.

 

    5

     

    

 

If
we call the warrants for redemption as described above, our management will have the option to require any holder that wishes
to exercise his, her or its warrant to do so on a “cashless basis.” In determining whether to require all holders
to exercise their warrants on a “cashless basis,” our management will consider, among other factors, our cash position,
the number of warrants that are outstanding and the dilutive effect on our stockholders of issuing the maximum number of shares
of Class A common stock issuable upon the exercise of our warrants. If our management takes advantage of this option, all holders
of warrants would pay the exercise price by surrendering their warrants for that number of shares of Class A common stock equal
to the quotient obtained by dividing (x) the product of the number of shares of Class A common stock underlying the warrants,
multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below)
by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the Class
A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is
sent to the holders of warrants. If our management takes advantage of this option, the notice of redemption will contain the information
necessary to calculate the number of shares of Class A common stock to be received upon exercise of the warrants, including the
“fair market value” in such case. Requiring a cashless exercise in this manner will reduce the number of shares to
be issued and thereby lessen the dilutive effect of a warrant redemption. We believe this feature is an attractive option to us
if we do not need the cash from the exercise of the warrants after our initial business combination. If we call our warrants for
redemption and our management does not take advantage of this option, our sponsor and its permitted transferees would still be
entitled to exercise their private placement warrants for cash or on a cashless basis using the same formula described above that
other warrantholders would have been required to use had all warrantholders been required to exercise their warrants on a cashless
basis, as described in more detail below.

 

A
holder of a warrant may notify us in writing in the event it elects to be subject to a requirement that such holder will not have
the right to exercise such warrant, to the extent that after giving effect to such exercise, such person (together with such person’s
affiliates), to the warrant agent’s actual knowledge, would beneficially own in excess of 9.8% (or such other amount as
a holder may specify) of the shares of Class A common stock outstanding immediately after giving effect to such exercise.

 

If
the number of outstanding shares of Class A common stock is increased by a stock dividend payable in shares of Class A common
stock, or by a split-up of shares of Class A common stock or other similar event, then, on the effective date of such stock dividend,
split-up or similar event, the number of shares of Class A common stock issuable on exercise of each warrant will be increased
in proportion to such increase in the outstanding shares of Class A common stock. A rights offering to holders of Class A common
stock entitling holders to purchase shares of Class A common stock at a price less than the fair market value will be deemed a
stock dividend of a number of shares of Class A common stock equal to the product of (i) the number of shares of Class A common
stock actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are
convertible into or exercisable for Class A common stock) multiplied by (ii) one (1) minus the quotient of (x) the price per share
of Class A common stock paid in such rights offering divided by (y) the fair market value. For these purposes (i) if the rights
offering is for securities convertible into or exercisable for Class A common stock, in determining the price payable for Class
A common stock, there will be taken into account any consideration received for such rights, as well as any additional amount
payable upon exercise or conversion and (ii) fair market value means the volume weighted average price of Class A common stock
as reported during the ten (10) trading day period ending on the trading day prior to the first date on which the shares of Class
A common stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.

 

In
addition, if we, at any time while the warrants are outstanding and unexpired, pay a dividend or make a distribution in cash,
securities or other assets to the holders of Class A common stock on account of such shares of Class A common stock (or other
shares of our capital stock into which the warrants are convertible), other than (a) as described above, (b) certain ordinary
cash dividends (initially defined as up to $0.10 per share in a 365 day period), (c) to satisfy the redemption rights of the holders
of Class A common stock in connection with a proposed initial business combination, (d) to satisfy the redemption rights of the
holders of Class A common stock in connection with a stockholder vote to approve an amendment to our amended and restated certificate
of incorporation that would affect the substance or timing of our obligation to redeem 100% of our Class A common stock if we
have not consummated an initial business combination within 24 months from the closing of our initial public offering, or (e)
in connection with the redemption of our public shares upon our failure to complete our initial business combination, then the
warrant exercise price will be decreased, effective immediately after the effective date of such event, by the amount of cash
and/or the fair market value of any securities or other assets paid on each share of Class A common stock in respect of such event.

 

    6

     

    

 

If
the number of outstanding shares of our Class A common stock is decreased by a consolidation, combination, reverse stock split
or reclassification of shares of Class A common stock or other similar event, then, on the effective date of such consolidation,
combination, reverse stock split, reclassification or similar event, the number of shares of Class A common stock issuable on
exercise of each warrant will be decreased in proportion to such decrease in outstanding shares of Class A common stock.

 

Whenever
the number of shares of Class A common stock purchasable upon the exercise of the warrants is adjusted, as described above, the
warrant exercise price will be adjusted by multiplying the warrant exercise price immediately prior to such adjustment by a fraction
(x) the numerator of which will be the number of shares of Class A common stock purchasable upon the exercise of the warrants
immediately prior to such adjustment, and (y) the denominator of which will be the number of shares of Class A common stock so
purchasable immediately thereafter.

 

In
case of any reclassification or reorganization of the outstanding shares of Class A common stock (other than those described above
or that solely affects the par value of such shares of Class A common stock), or in the case of any merger or consolidation of
us with or into another corporation (other than a consolidation or merger in which we are the continuing corporation and that
does not result in any reclassification or reorganization of our outstanding shares of Class A common stock), or in the case of
any sale or conveyance to another corporation or entity of the assets or other property of us as an entirety or substantially
as an entirety in connection with which we are dissolved, the holders of the warrants will thereafter have the right to purchase
and receive, upon the basis and upon the terms and conditions specified in the warrants and in lieu of the shares of our Class
A common stock immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind
and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization,
merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the warrants would have
received if such holder had exercised his, her or its warrants immediately prior to such event. If less than 70% of the consideration
receivable by the holders of Class A common stock in such a transaction is payable in the form of common stock in the successor
entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or
is to be so listed for trading or quoted immediately following such event, and if the registered holder of the warrant properly
exercises the warrant within thirty days following public disclosure of such transaction, the warrant exercise price will be reduced
as specified in the warrant agreement based on the Black-Scholes value (as defined in the warrant agreement) of the warrant. The
purpose of such exercise price reduction is to provide additional value to holders of the warrants when an extraordinary transaction
occurs during the exercise period of the warrants pursuant to which the holders of the warrants otherwise do not receive the full
potential value of the warrants. The warrant exercise price will not be adjusted for other events.

 

The
warrants have been issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company,
as warrant agent, and us. The warrant agreement provides that the terms of the warrants may be amended without the consent of
any holder to cure any ambiguity or correct any defective provision, but requires the approval by the holders of at least 50%
of the then outstanding public warrants to make any change that adversely affects the interests of the registered holders of public
warrants. You should review a copy of the warrant agreement, which is filed as an exhibit to the Annual Report on Form 10-K, for
a complete description of the terms and conditions applicable to the warrants.

 

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

 

No
fractional shares will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled
to receive a fractional interest in a share, we will, upon exercise, round down to the nearest whole number of shares of Class
A common stock to be issued to the warrantholder.

 

Private
Placement Warrants

 

The
private placement warrants (including the shares of Class A common stock issuable upon exercise of the private placement warrants)
will not be transferable, assignable or salable until 30 days after the completion of our initial business combination (except,
among other limited exceptions, to our officers and directors and other persons or entities affiliated with our sponsor), and
they will not be redeemable by us so long as they are held by our sponsor or its permitted transferees. Our sponsor, or its permitted
transferees, has the option to exercise the private placement warrants on a cashless basis. Except as described below, the private
placement warrants have terms and provisions that are identical to those of the warrants sold as part of the units in our initial
public offering, including as to exercise price, exercisability and exercise period. If the private placement warrants are held
by holders other than our sponsor or its permitted transferees, the private placement warrants will be redeemable by us and exercisable
by the holders on the same basis as the warrants included in the units sold in our initial public offering.

 

    7

     

    

 

If
holders of the private placement warrants elect to exercise them on a cashless basis, they would pay the exercise price by surrendering
his, her or its warrants for that number of shares of Class A common stock equal to the quotient obtained by dividing (x) the
product of the number of shares of Class A common stock underlying the warrants, multiplied by the difference between the exercise
price of the warrants and the “fair market value” (defined below) by (y) the fair market value. The “fair market
value” shall mean the average reported last sale price of the Class A common stock for the 10 trading days ending on the
third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent. The reason that we have
agreed that these warrants will be exercisable on a cashless basis so long as they are held by our sponsor and its permitted transferees
is because it is not known at this time whether they will be affiliated with us following a business combination. If they remain
affiliated with us, their ability to sell our securities in the open market will be significantly limited. We expect to have policies
in place that prohibit insiders from selling our securities except during specific periods of time. Even during such periods of
time when insiders will be permitted to sell our securities, an insider cannot trade in our securities if he or she is in possession
of material non-public information. Accordingly, unlike public stockholders who could sell the shares of Class A common stock
issuable upon exercise of the warrants freely in the open market, the insiders could be significantly restricted from doing so.
As a result, we believe that allowing the holders to exercise such warrants on a cashless basis is appropriate.

 

In
order to finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of
our sponsor or certain of our officers and directors may, but are not obligated to, loan us funds as may be required. If we complete
our initial business combination, we would repay such loaned amounts out of the proceeds of the trust account released to us.
In the event that our initial business combination does not close, we may use a portion of the working capital held outside the
trust account to repay such loaned amounts but no proceeds from our trust account would be used to repay such loaned amounts.
Up to $1,500,000 of such loans may be convertible into warrants at a price of $1.50 per warrant at the option of the lender. Such
warrants would be identical to the private placement warrants, including as to exercise price, exercisability and exercise period.

 

Our
sponsor has agreed not to transfer, assign or sell any of the private placement warrants (including the Class A common stock issuable
upon exercise of any of these warrants) until the date that is 30 days after the date we complete our initial business combination
(except, among other limited exceptions, to our officers and directors and other persons or entities affiliated with our sponsor).

 

Forward
Purchase Securities

 

We
have entered into a forward purchase agreement pursuant to which Apollo Natural Resources Partners II, L.P., a Delaware limited
partnership (“ANRP II”), which is a private investment fund managed by Apollo Global Management, Inc. (NYSE: APO),
a Delaware corporation, agreed to purchase an aggregate of up to 30,000,000 forward purchase units, consisting of 30,000,000 shares
of our Class A common stock (the “Forward Purchase Shares”) and 10,000,000 warrants (the “Forward Purchase Warrants”),
for $10.00 per unit, or an aggregate maximum amount of $300,000,000, in a private placement that will close simultaneously with
the closing of our initial business combination. The Forward Purchase Warrants will have the same terms as the private placement
warrants so long as they are held by ANRP II or its permitted transferees, and the Forward Purchase Shares will be identical to
the shares of Class A common stock included in the units sold in our initial public offering, except that the Forward Purchase
Shares will be subject to transfer restrictions and certain registration rights, as described herein. Any Forward Purchase Warrant
held by a holder other than ANRP II or its permitted transferees will have the same terms as the warrants included in the units
sold in our initial public offering.

 

    8

     

    

 

Dividends

 

We
have not paid any cash dividends on our common stock to date and do not intend to pay cash dividends prior to the completion of
a business combination. The payment of cash dividends in the future will be dependent upon our revenues and earnings, if any,
capital requirements and general financial conditions subsequent to completion of a business combination. The payment of any cash
dividends subsequent to a business combination will be within the discretion of our board of directors at such time. Our board
of directors is not currently contemplating and does not anticipate declaring any stock dividends in the foreseeable future. Further,
if we incur any indebtedness, our ability to declare dividends may be limited by restrictive covenants we may agree to in connection
therewith.

 

Our
Amended and Restated Certificate of Incorporation

 

Our
amended and restated certificate of incorporation contains certain requirements and restrictions relating to our initial public
offering that will apply to us until the completion of our initial business combination. These provisions cannot be amended without
the approval of the holders of at least 65% of our common stock. Our initial stockholders, who collectively beneficially own 20%
of our common stock, will participate in any vote to amend our amended and restated certificate of incorporation and will have
the discretion to vote in any manner they choose. Specifically, our amended and restated certificate of incorporation provides,
among other things, that:

 

		●	If
                                         we are unable to complete our initial business combination within 24 months from the
                                         closing of our initial public offering, we will (i) cease all operations except for the
                                         purpose of winding up, (ii) as promptly as reasonably possible but not more than ten
                                         business days thereafter subject to lawfully available funds therefor, redeem 100% of
                                         the public shares, at a per-share price, payable in cash, equal to the aggregate amount
                                         then on deposit in the trust account including interest earned on the funds held in the
                                         trust account and not previously released to us to pay our franchise and income taxes
                                         (less up to $100,000 of interest to pay dissolution expenses), divided by the number
                                         of then outstanding public shares, which redemption will completely extinguish public
                                         stockholders’ rights as stockholders (including the right to receive further liquidating
                                         distributions, if any), subject to applicable law, and (iii) as promptly as reasonably
                                         possible following such redemption, subject to the approval of our remaining stockholders
                                         and our board of directors, dissolve and liquidate, subject in each case to our obligations
                                         under Delaware law to provide for claims of creditors and the requirements of other applicable
                                         law;

 

		●	Prior
                                         to our initial business combination, we may not issue additional shares of capital stock
                                         that would entitle the holders thereof to (i) receive funds from the trust account or
                                         (ii) vote on any initial business combination;

 

		●	Although
                                         we do not intend to enter into a business combination with a target business that is
                                         affiliated with our sponsor, our directors or our officers, we are not prohibited from
                                         doing so. In the event we enter into such a transaction, we, or a committee of independent
                                         directors, will obtain an opinion from an independent investment banking firm that is
                                         a member of FINRA or an independent accounting firm that such a business combination
                                         is fair to our company from a financial point of view;

 

		●	If
                                         a stockholder vote on our initial business combination is not required by law and we
                                         do not decide to hold a stockholder vote for business or other legal reasons, we will
                                         offer to redeem our public shares pursuant to Rule 13e-4 and Regulation 14E under the
                                         Exchange Act, and will file tender offer documents with the SEC prior to completing our
                                         initial business combination which contain substantially the same financial and other
                                         information about our initial business combination and the redemption rights as is required
                                         under Regulation 14A of the Exchange Act;

 

		●	Our
                                         initial business combination must occur with one or more target businesses that together
                                         have an aggregate fair market value of at least 80% of our assets held in the trust account
                                         (excluding the deferred underwriting discounts and commissions and taxes payable on the
                                         interest earned on the trust account) at the time of the agreement to enter into the
                                         initial business combination;

 

    9

     

    

 

		●	If
                                         our stockholders approve an amendment to our amended and restated certificate of incorporation
                                         that would affect the substance or timing of our obligation to redeem 100% of our public
                                         shares if we have not consummated an initial business combination within 24 months from
                                         the closing of our initial public offering, we will provide our public stockholders with
                                         the opportunity to redeem all or a portion of their shares of Class A common stock upon
                                         such approval at a per-share price, payable in cash, equal to the aggregate amount then
                                         on deposit in the trust account, including interest earned on the funds held in the trust
                                         account and not previously released to us to pay our franchise and income taxes, divided
                                         by the number of then outstanding public shares; and

 

		●	We
                                         will not effectuate our initial business combination with another blank check company
                                         or a similar company with nominal operations.

 

In
addition, our amended and restated certificate of incorporation provides that under no circumstances will we redeem our public
shares in an amount that would cause our net tangible assets to be less than $5,000,001 or any greater net tangible asset or cash
requirement which may be contained in the agreement relating to our initial business combination.

 

Certain
Anti-Takeover Provisions of Delaware Law and our Amended and Restated Certificate of Incorporation and Bylaws

 

We
have opted out of Section 203 of the DGCL. However, our amended and restated certificate of incorporation contains similar provisions
providing that we may not engage in certain “business combinations” with any “interested stockholder”
for a three-year period following the time that the stockholder became an interested stockholder, unless:

 

		●	prior
                                         to such time, our board of directors approved either the business combination or the
                                         transaction which resulted in the stockholder becoming an interested stockholder;

 

		●	upon
                                         consummation of the transaction that resulted in the stockholder becoming an interested
                                         stockholder, the interested stockholder owned at least 85% of our voting stock outstanding
                                         at the time the transaction commenced, excluding certain shares; or

 

		●	at
                                         or subsequent to that time, the business combination is approved by our board of directors
                                         and by the affirmative vote of holders of at least 66-2/3% of the outstanding voting
                                         stock that is not owned by the interested stockholder.

 

Generally,
a “business combination” includes a merger, asset or stock sale or certain other transactions resulting in a financial
benefit to the interested stockholder. Subject to certain exceptions, an “interested stockholder” is a person who,
together with that person’s affiliates and associates, owns, or within the previous three years owned, 15% or more of our
voting stock.

 

Under
certain circumstances, this provision will make it more difficult for a person who would be an “interested stockholder”
to effect various business combinations with a corporation for a three-year period. This provision may encourage companies interested
in acquiring our company to negotiate in advance with our board of directors because the stockholder approval requirement would
be avoided if our board of directors approves either the business combination or the transaction which results in the stockholder
becoming an interested stockholder. These provisions also may have the effect of preventing changes in our board of directors
and may make it more difficult to accomplish transactions which stockholders may otherwise deem to be in their best interests.

 

Our
amended and restated certificate of incorporation provides that our sponsor and its respective affiliates, any of their respective
direct or indirect transferees of at least 15% of our outstanding common stock and any group as to which such persons are party
to, do not constitute “interested stockholders” for purposes of this provision.

 

Our
amended and restated certificate of incorporation provides that our board of directors is classified into three classes of directors.
As a result, in most circumstances, a person can gain control of our board only by successfully engaging in a proxy contest at
two or more annual meetings.

 

Our
authorized but unissued common stock and preferred stock are available for future issuances without stockholder approval and could
be utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee
benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock could render more difficult
or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

 

    10

     

    

 

Exclusive
Forum For Certain Lawsuits

 

Our
amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that derivative actions brought
in our name, actions against directors, officers and employees for breach of fiduciary duty and other similar actions may be brought
only in the Court of Chancery in the State of Delaware and, if brought outside of Delaware, the stockholder bringing the suit
will be deemed to have consented to service of process on such stockholder’s counsel. Although we believe this provision
benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies,
the provision may have the effect of discouraging lawsuits against our directors and officers.

 

Special
meeting of stockholders

 

Our
bylaws provide that special meetings of our stockholders may be called only by a majority vote of our board of directors, by our
Chief Executive Officer or by our Chairman.

 

Advance
notice requirements for stockholder proposals and director nominations

 

Our
bylaws provide that stockholders seeking to bring business before our annual meeting of stockholders or to nominate candidates
for election as directors at our annual meeting of stockholders must provide timely notice of their intent in writing. To be timely,
a stockholder’s notice will need to be received by the company secretary at our principal executive offices not later than
the close of business on the 90th day nor earlier than the close of business on the 120th day
prior to the anniversary date of the immediately preceding annual meeting of stockholders. Pursuant to Rule 14a-8 under the Exchange
Act, proposals seeking inclusion in our annual proxy statement must comply with the notice periods contained therein. Our bylaws
also specify certain requirements as to the form and content of a stockholders’ meeting. These provisions may preclude our
stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual
meeting of stockholders. Our bylaws allow the chairman of the meeting at a meeting of the stockholders to adopt rules and regulations
for the conduct of meetings which may have the effect of precluding the conduct of certain business at a meeting if the rules
and regulations are not followed. These provisions may also defer, delay or discourage a potential acquirer from conducting a
solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to influence or obtain control
of us.

 

Action
by Written Consent

 

Any
action required or permitted to be taken by our stockholders must be effected by a duly called annual or special meeting of such
stockholders and may not be effected by written consent of the stockholders other than with respect to our Class B common stock.

 

Classified
Board of Directors

 

Our
board of directors is divided into three classes, Class I, Class II and Class III, with members of each class serving staggered
three-year terms. Our amended and restated certificate of incorporation and bylaws provide that the authorized number of directors
may be changed only by resolution of the board of directors. Subject to the terms of any preferred stock, any or all of the directors
may be removed from office at any time, but only for cause and only by the affirmative vote of holders of a majority of the voting
power of all then outstanding shares of our capital stock entitled to vote generally in the election of directors, voting together
as a single class. Any vacancy on our board of directors, including a vacancy resulting from an enlargement of our board of directors,
may be filled only by vote of a majority of our directors then in office.

 

Class
B Common Stock Consent Right

 

Notwithstanding
any other provision in our amended and restated certificate of incorporation, prior to the closing of our initial business combination,
the holders of shares of our Class B common stock have the exclusive right to elect, remove and replace any director, and the
holders of shares of our Class A common stock have no right to vote on the election, removal or replacement of any director. This
provision of our amended and restated certificate of incorporation may only be amended by a resolution passed by a majority of
holders of at least 90% of the outstanding common stock entitled to vote thereon.

 

    11

     

    

 

Registration
Rights

 

The
holders of the founder shares, private placement warrants and warrants that may be issued upon conversion of working capital loans
(and any shares of Class A common stock issuable upon the exercise of the private placement warrants and warrants that may be
issued upon conversion of working capital loans and upon conversion of the founder shares) will be entitled to registration rights
pursuant to a registration rights agreement, dated August 9, 2018, requiring us to register such securities for resale (in the
case of the founder shares, only after conversion to our Class A common stock). The holders of the majority of these securities
are entitled to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders
have certain “piggy-back” registration rights with respect to registration statements filed subsequent to our completion
of our initial business combination and rights to require us to register for resale such securities pursuant to Rule 415 under
the Securities Act. However, the registration rights agreement provides that we will not permit any registration statement filed
under the Securities Act to become effective until termination of the applicable lock-up period, which occurs (a) in the case
of the founder shares, on the earlier of (A) one year after the completion of our initial business combination or (B) subsequent
to our business combination, (i) if the last sale price of our Class A common stock equals or exceeds $12.00 per share (as adjusted
for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading
day period commencing at least 150 days after our initial business combination or (ii) the date on which we complete a liquidation,
merger, capital stock exchange, reorganization or other similar transaction that results in all of our stockholders having the
right to exchange their shares of common stock for cash, securities or other property and (b) in the case of the private placement
warrants and the respective Class A common stock underlying such warrants, 30 days after the completion of our initial business
combination. We will bear the expenses incurred in connection with the filing of any such registration statements.

 

Pursuant
to the forward purchase agreement, we have agreed that we will use our commercially reasonable efforts to file within 30 days
after the closing of the initial business combination a registration statement registering the resale of the Forward Purchase
Shares and the Forward Purchase Warrants (and the underlying Class A common stock) and to cause such registration statement to
be declared effective as soon as practicable after it is filed.

 

 

12

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