Document:

EX-10.3

 Exhibit 10.3 

THIS PLAN IS SUBJECT TO ARBITRATION PURSUANT TO S.C. CODE ANN. §
15-48-10, et seq., 
 THE SOUTH CAROLINA UNIFORM
ARBITRATION ACT 
 SCANSOURCE, INC. 

EXECUTIVE SEVERANCE PLAN 

ScanSource, Inc., a South Carolina corporation (the “Company”), has adopted this ScanSource, Inc. Executive Severance Plan
(the “Plan”), effective as of July 1, 2017, for the benefit of selected executive officers of the Company, on the terms and conditions stated herein. 

1. Defined Terms. In addition to other terms defined herein, for purposes of the Plan, the following terms shall have the meanings
indicated below: 
 1.1 “Accrued Obligations” has the meaning given in Section 5.1(a). 

1.2 “Affiliate” means a Subsidiary and any other corporation or other entity or Person controlling, controlled
by or under common control with the Company. 
 1.3 “Applicable Law” means any applicable laws, rules and
regulations (or similar guidance), including but not limited to the Securities Act of 1933, the Securities Exchange Act of 1934, ERISA and the Code, in each case as amended. References to any applicable laws, rules and regulations shall also refer
to any successor or amended provisions thereto and shall be deemed to include any regulations or other interpretive guidance, unless the Committee determines otherwise. 

1.4 “Average Compensation Amount” has the meaning given in Section 5.1(c)(i) herein. 

1.5 “Base Salary” means a Participant’s annual base salary at the rate in effect immediately prior to a
Qualifying Termination. 
 1.6 “Board” means the Board of Directors of the Company. 

1.7 “Cause” means any of the following: (i) a Participant’s arrest or conviction of a crime
(including arrest or conviction on a nolo contendere plea) involving the commission by the Participant of a felony or of a criminal act involving, in the good faith judgment of the Company, fraud, dishonesty, or moral turpitude but excluding any
arrest or conviction which results solely from the Participant’s title or position with the Company and is not based on his personal conduct; (ii) the failure of the Participant to satisfactorily perform his duties with the Company (other
than failure resulting from incapacity due to Disability), after a written demand for satisfactory performance is delivered to the Participant by the Chief Executive Officer and/or the Committee, which specifically identifies the manner in which the
Chief Executive Officer and/or the Committee, believes that the Participant has not satisfactorily performed his duties; provided that the decision of whether a Participant has satisfactorily performed his duties with the Company or complied with
the demand for satisfactory performance is in the sole discretion of the Company; (iii) a Participant’s engaging in unethical or illegal 

 
conduct or misconduct that includes but is not limited to violations of the Company’s policies concerning employee conduct, including but not limited to the Company’s Code of Conduct;
(iv) a Participant’s gross misconduct or gross negligence in connection with the business of the Company or an Affiliate; or (v) breach of any of the covenants set forth in Section 6 of the Plan. 

Regardless of whether the Participant’s employment initially is considered to be terminated for any reason other than Cause, the
Participant’s employment will be considered to have been terminated for Cause for purposes of this Plan if the Board or the Committee determines after the Participant’s employment ends that the Participant had a material breach of the
terms of the Plan above while employed. 
 1.8 A “Change in Control” has the meaning given in the
Company’s 2013 Long-Term Incentive Plan, as it may be amended, or any successor stock plan (collectively, the “Stock Plan”), provided that, if and to the extent required under Code Section 409A, “Change in Control”
shall be as defined in accordance with Code Section 409A.  
 1.9 “Change in Control Multiple”
has the meaning given in a Participant’s Participation Agreement; provided, however, that in no event shall a Participant’s Change in Control Multiple exceed 2.5. 

1.10 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 

1.11 “Committee” means the Compensation Committee of the Board. 

1.12 “Company” means ScanSource, Inc., a South Carolina corporation, and any successors thereto. References to
the “Company” also include references to the Company’s Subsidiaries and its other Affiliates (and their successors) if and to the extent so determined by the Committee or the Board. 

1.13 “Date of Termination” means the date that a Participant’s employment with the Company terminates for
all purposes, as determined by the Committee in accordance with Section 9 herein. 
 1.14 “Disability”
means a mental or physical disability for which the Participant is determined to be disabled under the Company’s long-term disability plan, if any. If the Company has no long-term disability plan (or if otherwise so determined by the Committee
in its sole discretion), “Disability” will mean the inability of the Participant, as determined by the Committee, to perform the essential functions of his regular duties and responsibilities, with or without reasonable accommodation, due
to a medically determinable physical or mental condition which has lasted (or can reasonably be expected to last) for twelve workweeks in any twelve-month period. 

1.15 “Eligible Employee” means any executive officer of the Company who is determined by the Committee to be
eligible to participate in the Plan. 

  
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 1.16 “ERISA” means the Employee Retirement Income Security Act
of 1974, as amended. 
 1.17 “Good Reason” means the occurrence of any of the following events without the
Participant’s consent: 
 (a) the assignment to the Participant of any duties materially inconsistent with those
applicable to executive officer direct reports to the Chief Executive Officer (the “Peer Executives”), excluding an isolated, insubstantial and inadvertent action taken in good faith which is remedied by the Company promptly after
receipt of notice from the Participant; 
 (b) a material reduction by the Company in the Participant’s Base Salary or a
material reduction in the Participant’s Variable Compensation opportunity; 
 (c) the failure by the Company (i) to
continue in effect any compensation plan in which the Participant participates during the time of his Plan participation that is material to the Participant’s total base compensation, unless the Company provides a substantially equivalent
alternative plan, or (ii) to continue the Participant’s participation in the alternative plan on a basis that is substantially equivalent in terms of the value of benefits provided; 

(d) the Company’s requiring the Participant to be based at any location that increases the Participant’s normal work
commute by fifty (50) miles or more as compared to the Participant’s normal work commute or otherwise is a material change in the location at which the Participant is based; or 

(e) any failure by the Company to comply with and satisfy Section 11.1. 

The Participant must provide written notice to the Company of the Participant’s intent to terminate employment for Good Reason within 30
days of the initial existence of the Good Reason. The Company will have an opportunity to cure any claimed event of Good Reason within 30 days of notice from the Participant. The Committee’s good faith determination of cure will be binding. The
Company will notify the Participant in writing of the timely cure of any claimed event of Good Reason and how the cure was made. Any Notice of Termination delivered by the Participant based on a claimed Good Reason which was thereafter cured by the
Company will be deemed withdrawn and ineffective. If the Company fails to cure any claimed event of Good Reason within 30 days of notice from the Participant, the Participant must terminate employment for such claim of Good Reason within 180 days of
the initial existence of the Good Reason, and if the Participant fails to do so, such claimed event of Good Reason will be deemed withdrawn and ineffective. 

1.18 “Other Benefits” has the meaning given in Section 5.1(b). 

  
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 1.19 “Participant” shall mean an Eligible Employee who is
selected by the Committee to participate in the Plan. 
 1.20 “Participation Agreement” means the
participation agreement delivered by the Company to a Participant informing the Eligible Employee of his participation in the Plan, as it may be amended. Participation in the Plan is subject to the Participant’s execution and return of his
Participation Agreement. References to the “Plan” shall, if and to the extent applicable, include the terms of a Participation Agreement entered into with a Participant, unless the Committee determines otherwise. 

1.21 “Person” means any person, firm, partnership, joint venture, association, corporation or other business
organization, entity or enterprise whatsoever. 
 1.22 “Plan” means this ScanSource, Inc. Executive
Severance Plan, as such plan may be amended and/or restated from time to time. 
 1.23 “Pro Rata Bonus” has
the meaning given in Section 5.1(c)(ii) herein. 
 1.24 “Qualifying Termination” means the
Participant’s termination of employment with the Company either by the Company without Cause or by the Participant for Good Reason. For the avoidance of doubt, in no event shall a Participant be deemed to have experienced a Qualifying
Termination as a result of (a) the Participant’s death, Disability, Retirement or voluntary termination, or (b) solely as a result of a Change in Control. 

1.25 “Retirement” means, unless the Committee determines otherwise, the occurrence of both (i) the
Participant’s non-Cause termination of employment with the Company at any time when the Participant’s age plus years of service equals or exceeds 65, and (ii) the Committee’s determination
that the Participant’s termination qualifies as a retirement. 
 1.26 “Severance Benefits” has the
meaning provided in Section 5.1(c)(i) herein. 
 1.27 “Severance Multiple” shall have the meaning given
in a Participant’s Participation Agreement; provided, however, that in no event shall a Participant’s Severance Multiple exceed 2.5. 

1.28 “Subsidiary” means a corporation, company or other entity (i) more than 50% of whose outstanding
shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture, limited
liability company, or unincorporated association), but more than 50% of whose ownership interest representing the right generally to make decisions for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the
Company. 
 1.29 “Variable Compensation” means a Participant’s annual cash-based incentive
compensation. 

  
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 2. Purpose; Effective Date. The Plan has been established by the Company effective as of
July 1, 2017 (the “Effective Date”) to provide selected Participants with the opportunity to receive severance and other benefits in the event of certain terminations of employment and to attract and retain qualified executive
officers. The Plan is intended to be a top hat pension plan under ERISA. 
 3. Eligibility; Participation. The Committee shall
identify those Eligible Employees who shall be selected to be Participants in the Plan, provided that, in order to become a Participant in the Plan, the Company and the selected Eligible Employee must execute and return a Participation Agreement
containing such terms and conditions as may be determined by the Committee. Eligible Employees who may be selected to become Participants in the Plan shall be limited to a select group of management or highly compensated employees within the
meanings of Sections 201, 301 and 404 of ERISA. 
 4. Administration. Subject to Section 14.2, the Committee has the
exclusive right, power and authority, in its sole and absolute discretion, to administer and interpret the Plan. The Committee has all powers reasonably necessary to carry out its responsibilities under the Plan including (but not limited to) the
absolute discretionary authority to: (a) administer the Plan according to its terms and to interpret Plan provisions; (b) resolve and clarify inconsistencies, ambiguities, and omissions in the Plan and among and between the Plan and other
related documents; (c) approve the form of each Participation Agreement and any other Plan-related documents; (d) take all actions and make all decisions regarding questions of eligibility and entitlement to benefits, and benefit amounts;
(e) make, amend, interpret and enforce all appropriate rules and regulations for the administration of the Plan; (f) process and approve or deny all claims for benefits; and (g) decide or resolve any and all questions, including
benefit entitlement determinations and interpretations of the Plan, as may arise in connection with the Plan. The decision of the Committee on any disputes arising under the Plan, including (but not limited to) questions of construction,
interpretation and administration shall be final, conclusive and binding on all persons having an interest in or under the Plan. Any determination made by the Committee shall be given deference in the event the determination is subject to judicial
review and shall be overturned by a court of law only if it is arbitrary and capricious. The Board may reserve to itself any or all of the authority and responsibility of the Committee under the Plan or may act as administrator of the Plan for any
and all purposes. To the extent the Board has reserved any authority and responsibility or during any time that the Board is acting as administrator of the Plan, it shall have all the powers of the Committee hereunder, and any reference herein to
the “Committee” shall include the Board. The Committee may delegate any of its duties hereunder to a subcommittee, or to such person or persons from time to time as it may designate, subject to any terms and conditions established by the
Committee and Applicable Law. 
 5. Obligations of the Company upon Termination. In the event of the termination of a
Participant’s employment with the Company, the following provisions shall apply: 
 5.1 Qualifying Termination
(Termination by the Participant for Good Reason); Termination by the Company Other Than for Cause, Death, Disability or Retirement. If: (i) the Company terminates the Participant’s employment other than for Cause, death, Disability, or
Retirement or (ii) the Participant terminates employment for 

  
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Good Reason following the Company’s failure to cure such Good Reason as set forth in Section 1.17 of the Plan, and (iii) the Participant is an Eligible Employee on the
Participant’s Date of Termination, the Company will pay the Participant the following amounts and provide the following benefits: 

(a) The Participant’s Base Salary earned through the Date of Termination to the extent not already paid (such amount is
hereinafter referred to as the “Accrued Obligations”) will be paid in accordance with the Company’s customary payroll practices, paid on the first payroll date that occurs at least 30 days after the Date of Termination; 

(b) To the extent not previously paid or provided and only if earned as of the Date of Termination, the Company will timely pay
or provide to the Participant any other amounts or benefits which the Participant is eligible to receive under any plan, program, policy, practice, contract or agreement of the Company (the “Other Benefits”), pursuant to the terms
of such Other Benefits; provided that, without in any way limiting the effect of the foregoing, the treatment of any equity awards upon a Participant’s termination of employment for any reason shall be subject to, and determined in accordance
with, the terms of the Stock Plan and related award agreement(s); and 
 (c) Subject to Section 8 of the Plan and the
Participant’s execution of a Release in form acceptable to the Company (the “Release”) within the time set forth in Section 5.7 of the Plan, the Participant’s compliance with the terms of the Release and the
Participant’s compliance with the Restrictions on Conduct described in Section 6 of the Plan, the Company will (1) pay to the Participant the amount in Section 5.1(c)(i) beginning with the Company’s first normal payroll
cycle that occurs at least 30 days after the Date of Termination, (2) pay the amount in Section 5.1(c)(ii) as set forth below, and (3) provide the benefits in Section 5.1(c)(iii): 

(i) Compensation in an amount equal to the Participant’s Severance Multiple times the average annual Base Salary and
Variable Compensation earned by the Participant from the Company, including any such amounts earned but deferred, in the last three fiscal years before the Date of Termination (the “Average Compensation Amount”), less normal
withholdings (the “Severance Benefits”). Notwithstanding the foregoing, if the Date of Termination occurs within 12 months after or prior to and otherwise in contemplation of a Change in Control (as determined by the Board or the
Committee (in service prior to a Change in Control)), the Participant will receive Severance Benefits in an amount equal to the Participant’s Change in Control Multiple times the Average Compensation Amount, less normal withholdings. With
respect to any amounts due the Participant under this Section 5.1(c)(i), the payments shall be made in bi-weekly installments pursuant to the Company’s normal payroll cycle during the term of the 24-month period referenced in Section 6.3. Subject to the terms of Section 14.10 herein, if the Participant is entitled to receive 

  
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Severance Benefits under this Section 5.1(c)(i), then he shall not be entitled to receive severance benefits under any other severance plan, agreement or arrangement maintained by the
Company, as such plan, agreement or arrangement may be amended from time to time. The Average Compensation Amount defined herein is to exclude any fiscal years in which the Participant was not employed by the Company, include any partial fiscal
years (which shall be annualized), and not include the then current fiscal year; 
 (ii) A bonus equal to the pro rata
portion (based on the number of days elapsed in the current fiscal year through the Date of Termination) of the current fiscal year annual Variable Compensation, if any, that would otherwise be payable if the Participant had continued employment
through the end of the current fiscal year based on actual performance (the “Pro Rata Bonus”). The Pro Rata Bonus, if any, less normal withholdings, will be paid within 30 days of the Committee’s certification that the
Participant has met the necessary performance criteria, which will be no later than the later of March 15 following the end of the calendar year in which the Participant’s right to the bonus vests or the 15th day of the third month
following the end of the Company’s fiscal year in which the Participant’s right to the bonus vests; and 
 (iii)
For up to twenty-four (24) months following the Date of Termination (the “Continuation Coverage Period”), the Participant shall be entitled to participate (treating the Participant as if he were an active employee of the
Company for this purpose) in the Company’s medical (including prescription drug coverage) and dental plan (the “Company Health Care Plans”). To receive the continuation coverage provided pursuant to this subsection (iii), the
Participant shall timely enroll in the continuation coverage required by Section 4980B of the Code and Part 6 of Title I of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”), and the COBRA health care
continuation coverage period under Section 4980B of the Code shall run concurrently with the Continuation Coverage Period. The Participant shall pay the entire premium charged for the coverage of the Participant and, if applicable, his
dependents under the Company Health Care Plans. During that portion of the Continuation Coverage Period that runs concurrently with COBRA, the premium required for the continuation coverage provided pursuant to this paragraph (C) shall be equal
to the premium required by COBRA (the “COBRA Rate”). During the remainder of the Continuation Coverage Period, the premium required for the continuation coverage shall be the greater of the COBRA Rate or the actuarially determined cost of
the continuation coverage as determined by an actuary selected by the Company (i.e., the access only rate). The Company shall reimburse the Participant for the difference between the monthly premium amount actually paid by the Participant pursuant
to this subsection (iii) and the monthly premium amount paid by active employees for the same level of 

  
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coverage under the Company Health Care Plans. Such reimbursement shall be paid to the Participant by the 20th day of the month immediately following the month in which the Participant timely
remits the required premium payment. The right to reimbursement and the coverage provided pursuant to this subsection (iii) shall terminate prior to the end of the Continuation Coverage Period if the Participant is eligible to receive similar
benefits under another employer-provided or group plan (which plan may be the plan of his new employer or his spouse’s employer). The Company makes no representation to the Participant regarding the tax consequences of any benefits that may be
received pursuant to this Section 5.1(c)(iii). The Participant agrees to pay any federal, state, or local taxes for which he may become personally liable as a result of any such benefits received. 

5.2 Death. If the Participant’s employment is terminated because of the Participant’s death, the
Participant’s participation in the Plan will terminate without further obligations of the Company to the Participant or the Participant’s legal representatives under the Plan other than (i) the payment of Accrued Obligations as
described in Section 5.1(a), (ii) the payment of the Pro Rata Bonus as described in Section 5.1(c)(ii), (iii) the payment of the benefits described in Section 5.1(c)(iii), and (iv) the timely payment or provision of Other
Benefits as described in Section 5.1(b) of the Plan. The Accrued Obligations and the Pro Rata Bonus will be paid to the Participant’s estate or beneficiary, as applicable. Other Benefits as used in this Section 5.2 will include,
without limitation, and the Participant’s estate and/or beneficiaries will be entitled to receive, benefits under such plans, programs, practices and policies relating to death benefits, if any, as are applicable to the Participant on the date
of his death pursuant to the terms of such Other Benefits. 
 5.3 Disability. If the Participant’s employment is
terminated because of the Participant’s Disability, the Participant’s participation in the Plan will terminate without further obligations of the Company to the Participant other than (i) the payment of Accrued Obligations as
described in Section 5.1(a), (ii) the payment of the Pro Rata Bonus as described in Section 5.1(c)(ii), (iii) the payment of the benefits described in Section 5.1(c)(iii), and (iv) the timely payment or provision of Other
Benefits as described in Section 5.1(b) of the Plan. The term Other Benefits as used in this Section 5.3 includes, without limitation, and the Participant will be entitled after the Disability effective date to receive, disability and
other benefits under such plans, programs, practices and policies relating to disability, if any, as are applicable to the Participant and his family on the Date of Termination pursuant to the terms of such Other Benefits. 

5.4 Retirement. If the Participant’s employment is terminated because of the Participant’s Retirement, the
Participant’s participation in the Plan will terminate without further obligations of the Company to the Participant other than (i) the payment of Accrued Obligations as described in Section 5.1(a), (ii) the payment of the Pro Rata
Bonus as described in Section 5.1(c)(ii), (iii) the benefits described in Section 5.1(c)(iii), and (iv) the timely payment or provision of Other Benefits as described in Section 5.1(b) of the Plan. The term Other Benefits as used
in this Section 5.4 includes, without 

  
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limitation, and the Participant will be entitled after the Date of Termination to receive, retirement and other benefits under such plans, programs, practices and policies relating to retirement,
if any, as applicable to the Participant on the Date of Termination pursuant to the terms of such Other Benefits. 
 5.5
Cause or Voluntary Termination without Good Reason. If the Participant’s employment is terminated for Cause, or if the Participant voluntarily terminates employment without Good Reason (and, for clarity, such termination is for reasons
other than Disability or Retirement), the Participant’s participation in the Plan will terminate without further obligations of the Company to the Participant, other than for (i) the payment of Accrued Obligations as described in
Section 5.1(a), and (ii) the timely payment or provision of Other Benefits as described in Section 5.1(b). 

5.6 Conditions. A Participant’s entitlement to severance benefits under Section 5 shall be subject to and
conditioned upon (i) the Participant’s execution and delivery to the Company of his Participation Agreement in accordance with the terms hereof, (ii) the Participant’s execution and delivery of the Release as provided in
Section 5.7 hereof and (iii) the Participant’s compliance with the terms of the Plan, including but not limited to the Restrictions on Conduct described in Section 6 of the Plan, his Participation Agreement and his Release. The
Participant’s breach or threatened breach of Section 6 shall entitle the Company to immediately cease any payments hereunder, or to refuse payment in the first instance, and the Company shall further be entitled to recover any payments
previously made to the Participant under this Section 5. 
 5.7 Execution of Release. Notwithstanding anything to
the contrary in this Section 5, the Release must be executed and provided to the Company, and the period for revoking same must have expired, before the 30th day following the Date of
Termination. 
 5.8 Death Following Termination of Employment; Beneficiary. In the event a Participant becomes
entitled to receive any payments pursuant to this Section 5, and he dies prior to receiving any or all of the payments to which he is entitled, then such remaining payments shall be made to his designated beneficiary. For purposes of the Plan,
the Participant’s designated beneficiary shall be the same person or persons designated as his beneficiary or beneficiaries under the ScanSource, Inc. Group Term Life Plan (or any successor plan) (unless the Committee determines otherwise).

 6. Restrictions on Conduct of the Participant. 

6.1 General. By participating in the Plan, a Participant is deemed to agree as follows: The Participant agrees that as
part of the executive-level role he will have and services he will perform for the Company, he will be exposed to, and help create and maintain, unique and proprietary methods and information in each market in which the Company does business which
give the Company competitive advantages over other “Competitive Businesses,” as well as develop goodwill with the Company’s customers, suppliers, vendors, advertisers, employees and the general public. By virtue of the position the
Participant holds or will hold, the Participant is receiving, will receive, or will be provided access to the Company’s unique methods of doing business, including: 

  
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(1) methods for locating and dealing with vendors, customers, suppliers and advertisers as well as pricing information, distribution channels, and other terms of those relationships; (2)
“Confidential Information” and “Trade Secrets;” (3) established relationships and other elements that together comprise goodwill; and/or (4) unique knowledge and training regarding product development, its engineering,
product specification, material suppliers, material specifications, product suppliers, manufacturing knowledge and methods, customer feedback, surveys, design-around information, research and development information, internal quality control tests,
other quality control information, and other similar proprietary information. The Participant agrees that the competitive advantage and goodwill the Company has created, and which the Participant will assist in furthering and maintaining, is an
important and legitimate business asset of the Company. It would be unfair for the Participant to use Confidential Information and Trade Secrets obtained during and as a result of his employment with the Company for the benefit of an organization
other than the Company. The Participant has agreed to certain restrictions in exchange for his being eligible for certain severance benefits under the conditions described in the Plan. The Participant further agrees that it would be impossible to
protect against improper and unfair competitive advantages without restricting the Participant’s activities in each market where the Participant provided services and the Company has existing customers or prospective customers during the
Participant’s employment. No lesser territorial restriction would protect the Company’s business interests given the nature of the Participant’s role within the Company and access to Confidential Information and Trade Secrets. The
Participant agrees that these provisions do not preclude him from earning a living. 
 6.2 Definitions. The following
capitalized terms used in this Section will have the meanings assigned to them below, which definitions will apply to both the singular and the plural forms of these terms: 

“Competitive Business” means work performed by the Participant as an owner, agent, employee, contractor, consultant, advisor,
director, or independent contractor (including without limitation any business formed by the Participant) that distributes or provides, or that is actively planning to distribute or provide, any product or service that is the same or substantially
similar to any product or service offered or in development by the Company, including reasonable alternatives. Without limiting the generality of the foregoing, Competitive Business includes any distributors of any such goods or services in or to
the point of sale, automatic identification, data capture, security, business telephony, payment systems, 3D printing, and communication products. It further includes any business engaged as or with a master agent, together with its sales partners
(subagents), to a carrier telecommunication company, which in turn distributes business telecommunications services, including voice, data, access, cable, collaboration, wireless and cloud, to their end-user
customers. Competitive Business further includes any business that Participant directly provided services in or assisted in marketing or acquiring in the last two years of his work for the Company. Nothing in the Plan limits the Compensation
Committee from determining, in its discretion, that the term “Competitive Business” does not include a particular distributor or other business. 

  
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 “Confidential Information” means any and all of the Company’s Trade
Secrets, confidential and proprietary information, and all other information and data that is not generally known to third persons who could derive economic value from its use or disclosure, including, without limitation, any information or
documents about: the Company’s accounting practices; financial data; financial plans and practices; the Company’s operations; its future plans (including new products or business areas, improved products or business areas, and products or
business areas under development); its methods of doing business; internal forms, checklists, or quality assurance testing; programs; customer and supplier lists or other such related information as pricing or terms of business dealings; supply
chains; shipping chains and prices; packaging technology or pricing; sourcing information for components, materials, supplies, and other goods; employees; pay scales; bonus structures; contractor information and lists; marketing strategies and
information; product plans; distribution plans and distribution channel relationships; business plans; manufacturing, operation, sales and distribution processes; costs; margins for products; prices, sales, orders and quotes for the Company’s
business that is not readily attainable by the general public; existing and future services; testing information (including methods and results) related to materials used in the development of the Company’s products or materials that could be
used with the Company’s products; development information (including methods and results) related to computer programs that design or test products or that track information from a central database; and the computer or electronic passwords of
all employees and/or firewalls of the Company. Confidential Information also includes any information defined in this subsection which the Company obtains from another party and treats as proprietary or confidential, whether or not owned or
developed by the Company. Notwithstanding the definitions stated above, the term Confidential Information does not include any information which (i) at the time of disclosure to the Participant, was in the public domain; (ii) after
disclosure to the Participant, is published or otherwise becomes part of the public domain through no fault of the Participant; (iii) without a breach of duty owed to the Company, was already in the Participant’s possession at the time of
disclosure to the Participant; (iv) was received after disclosure to the Participant from a third party who had a lawful right to the information other than through a relationship of trust and confidence with the Company, and without a breach
of duty to the Company, disclosed the information to the Participant; or (v) where the Participant can show it was independently developed by the Participant on non-Company time without reference to, or
reliance upon, other Confidential Information or Trade Secrets. 
 “Restricted Territory” means any location in the United
States where (1) the Participant performed services for the Company or its affiliates or had contact with the Company’s customers, vendors, or suppliers; and (2) where the Company or its affiliates is actively manufacturing,
marketing, selling, or distributing its products within the final two years of the Participant’s employment, or places where the Company made affirmative steps to manufacture, market, sell, or distribute its products within the final six months
of the Participant’s employment. If the Participant was assigned only a portion of the territory in which the 

  
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Company operates or sells, then the Restricted Territory shall be narrowly construed to include only the limited geographic area in which the Participant represented and worked for the Company or
was able to establish contact with the Company’s customers, vendors, or suppliers. 
 “Trade Secrets” means information
related to the business or services of the Company which (1) derives independent actual or potential commercial value from not being generally known or readily ascertainable through independent development or reasonable reverse engineering
processes by persons who can obtain economic value from its disclosure or use; and (2) is the subject of efforts by the Company and affiliated third parties that are reasonable under the circumstances to maintain its secrecy. Assuming the
foregoing criteria in clauses (1) and (2) are met, Trade Secret encompasses business and technical information including, without limitation, know-how, designs, formulas, patterns, compilations, programs,
devices, inventions, methods, techniques, drawings processes, finances, actual or potential customers and suppliers, and existing and future products and services of the Company. Notwithstanding the definitions stated above, the term Confidential
Information does not include any information which (i) at the time of disclosure to the Participant, was in the public domain; (ii) after disclosure to the Participant, is published or otherwise becomes part of the public domain through no
fault of the Participant; (iii) without a breach of duty owed to the Company, was already in the Participant’s possession at the time of disclosure to the Participant; (iv) was received after disclosure to the Participant from a third
party who had a lawful right to the information through some avenue other than through a relationship of trust and confidence with the Company, and without a breach of duty to the Company, disclosed the information to the Participant; or
(v) where the Participant can show it was independently developed by the Participant on non-Company time without reference to, or reliance upon, other Confidential Information or Trade Secrets. 

6.3 Restrictions. The Participant understands and agrees that the compensation the Company has agreed to provide
pursuant to the Plan would not be as lucrative if the restrictions set forth in this section were not included in the Plan. Therefore, in consideration of the compensation provided in the Plan, and the other terms agreed to by the Company, along
with the disclosure (and continued disclosure of Confidential Information and Trade Secrets) a portion of which is being paid to compensate the Participant for these covenants, the Participant covenants and agrees as follows: 

(a) Non-Compete. 

a. for the term of the Participant’s employment, and for a period of twenty-four (24) months following the Date of
Termination, with or without Cause or Good Reason, the Participant agrees he will not, directly or indirectly, alone or in association with or on behalf of any other person or entity, participate in any Competitive Business in the Restricted
Territory 

  
 12 

 
in which he would provide the same or substantially the same services to the Competitive Business as those the Participant provided to the Company during the last two years of the
Participant’s employment with the Company. 
 b. alternatively, if paragraph 6.3(a)(a) is either waived in writing by
the Company or deemed unenforceable by any court or arbitrator, the parties agree that for the term of the Participant’s employment, and for a period of twenty-four (24) months following the Date of Termination, with or without Cause or
Good Reason, the Participant will not, directly or indirectly, alone or in association with or on behalf of any other person or entity, own, manage, operate, join, control, be employed by or with, participate in, or provide the same or substantially
the same services as those the Participant provided to the Company during the last two years of the Participant’s employment with the Company to any of the following entities: Ingram Micro, Wynit Distribution, Tech Data, Avnet, BlueStar,
Westcon, Arrow, Jarltech, Jenne, Securematics, Synnex, ADI, Anixter, Avaya, Polycom, Aruba Networks, Honeywell, HP, Zebra Technologies, Shoretel, CISCO Systems, Toshiba, Plantronics. 

(b) Non-Solicitation of Vendors, Manufacturers, Customers, or Suppliers. For the term
of the Participant’s employment, and for a period of twenty-four (24) months following the Date of Termination, the Participant agrees he will not, directly or indirectly, alone or in association with or on behalf of any other person or
entity, solicit any of the Company’s vendors, manufacturers, customers or suppliers with whom the Participant had business contact during the course of the Participant’s employment with the Company for any Competitive Business for the
purpose of providing the same or substantially the same products or services as those provided by the Company and will not induce or encourage any vendors, manufacturers, customers or suppliers to cease doing business with the Company or materially
alter their relationship with the Company; 
 (c) Non-Solicitation of Prospective
Vendors, Manufacturers, Customers or Suppliers. For the term of the Participant’s employment, and for a period of twenty-four (24) months following the Date of Termination, the Participant agrees he will not, directly or indirectly, alone
or in association with or on behalf of any other person or entity, solicit any of the Company’s prospective vendors, manufacturers, customers or suppliers with whom the Participant had business contact during the course of the
Participant’s employment with the Company for any Competitive Business; 
 (d)
Non-Solicitation of Employees. For the term of the Participant’s employment, and for a period of twenty-four (24) months following the Termination Date, the Participant agrees he will not, directly
or indirectly, alone or in association with or on behalf of any other person or entity, solicit any of the Company’s employees to leave the Company to provide services for any Competitive Business; 

  
 13 

 (e) Non-Disclosure. For the term of the
Participant’s employment, and for a period of no less than sixty (60) months from the Date of Termination (for Confidential Information) or for so long as the information remains protected under the Plan or applicable statute (for Trade
Secrets) thereafter, the Participant agrees that he will not, either directly or indirectly, misappropriate, take, remove, publish, disseminate, provide, or otherwise disclose any Confidential Information or Trade Secrets to any third party, unless
required to do so by legal process or other law, without the Company’s prior written consent. The Participant agrees that if he believes he is compelled to reveal Confidential Information or Trade Secrets pursuant to the limited exception
provided herein, the Participant will, except as provided in Section 6.7, below, provide the Company at least seven (7) days advance notice before doing so, will explain the specifics under which such Confidential Information or Trade
Secrets are to be disclosed, and will allow the Company to take steps to prevent the disclosure or use of its Confidential Information or Trade Secrets. 

(f) No Misuse of Confidential Information or Trade Secrets. For the term of the Participant’s employment, and for a period
of no less than sixty (60) months from the Date of Termination (for Confidential Information) or for so long as the information remains protected under the Plan or applicable statute (for Trade Secrets) thereafter, the Participant agrees that
he will not, either directly or indirectly, for his own behalf or otherwise, use in any manner the Company’s Confidential Information or Trade Secrets. 

(g) Return of Company Property. Within two (2) business days following the Participant’s Date of Termination, the
Participant shall return to the Company any and all documents, materials, tangible information, or other property reflecting or containing the Company’s Confidential Information or Trade Secrets or that otherwise belong to the Company that the
Participant has in his possession. Employee will also permanently delete or remove any programs or data containing or reflecting such information and shall retain no copies of any kind. The Participant acknowledges that all such materials are the
sole exclusive property of the Company and that the Participant has no right, title, or interest in such information. If requested by the Company, the Participant further agrees to execute a stipulation that he has complied with this
Section 6.3(g). 
 6.4 Non-Disparagement. The Participant agrees that for
the term of Employee’s employment, and for a period of five (5) years thereafter, he will not disparage the Company to any non-governmental third parties, and the Company agrees that it will exercise
reasonable efforts to ensure that its directors, officers, employees and agents do not disparage the Participant, during the term of the Participant’s employment and for a period of five (5) years thereafter, to any non-governmental third parties. Nothing in this subsection should be interpreted as any restriction on either party’s compliance with any laws requiring or compelling disclosure, or any disclosures that are
considered absolutely privileged, such as legal proceedings, subject to the other terms of the Plan. 

  
 14 

 6.5 Severance and Reformation. The Company and the Participant agree that
the provisions of Section 6, including all subparts, are intended to strike the balance between the Participant earning a livelihood and the Company protecting its legitimate business interests. The provisions of Section 6, including all
subparts, have been drafted to allow for enforcement. The parties agree that should a court determine that any word, phrase, clause, sentence, paragraph, or other part of the Plan is unreasonably broad in time, territory, or scope so as to render
any remaining provisions unenforceable, the parties desire the court to modify or strike the offending language in the narrowest way possible and enforce the remainder as if the offending language was not there, so that only reasonable restrictions
are enforced. 
 6.6 Elective Rights of the Company. If the Participant violates, threatens violation, or challenges
the enforceability of the restrictive covenants contained in this Section 6 (the “Restrictive Covenants”) (or asserts an affirmative defense to an action seeking to enforce the Restrictive Covenants) including but not limited to being
based on an argument that the Restrictive Covenants are (i) not enforceable as a matter of law, (ii) unreasonable in geographical scope or duration or (iii) void as against public policy, the Company shall, in addition to any other
rights, claims and/or remedies, be entitled to (1) to cease making the payments required under Section 5 above, and (2) upon demand, to have the Participant repay, within 10 business days of any such demand, any payments already made.
Further, any right afforded to, or exercised by, the Company under the Plan will not affect the enforceability of the Restrictive Covenants or any other right or remedy, equitable or otherwise, of the Company under the Plan, and, without limiting
the effect of the foregoing, the Participant agrees that if he should breach or threaten to breach any of the Restrictive Covenants, the Company may, in addition to seeking other available remedies, apply for the immediate entry of an injunction
restraining any actual or threatened breaches or violations of said provisions or terms by the Participant. 
 6.7
Protected Rights. Notwithstanding the foregoing provisions of Section 6, (i) nothing in the Plan or other agreement prohibits a Participant from reporting possible violations of law or regulation to any governmental agency or entity,
including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General (the “Government Agencies”), or communicating with Government Agencies or otherwise participating
in any investigation or proceeding that may be conducted by Government Agencies, including providing documents or other information, (ii) a Participant does not need the prior authorization of the Company to take any action described in (i),
and a Participant is not required to notify the Company that he has taken any action described in (i); and (iii) the Plan does not limit a Participant’s right to receive an award for providing information relating to a possible securities
law violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, a Participant will not be held criminally or civilly liable under any federal, state or local trade secret law for the disclosure of a trade secret that
(i) is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, and (B) solely for the purpose of reporting or 

  
 15 

 
investigating a suspected violation or law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an
individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing
the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order. 
 7.
Mandatory Reduction of Payments in Certain Events. Any payments made to a Participant under the Plan will be made with the Participant’s best interests in mind related to the excise (the “Excise Tax”) imposed by Code
Section 4999. 
 7.1 Anything in the Plan to the contrary notwithstanding, if it is determined that any benefit, payment
or distribution by the Company to or for the benefit of the Participant (whether paid or payable or distributed or distributable pursuant to the terms of the Plan or otherwise) (a “Payment”) would be subject to the Excise Tax, then,
before making the Payment to the Participant, a calculation will be made comparing (i) the net benefit to the Participant of all Payments after payment of the Excise Tax, to (ii) the net benefit to the Participant if the Payment had been
limited to the extent necessary to avoid being subject to the Excise Tax. If the amount calculated under (i) above is less than the amount calculated under (ii) above, then the Payments will be limited to the extent necessary to avoid
being subject to the Excise Tax (the “Reduced Amount”). In that event, the determination of any reduction in the Payments shall be made by the Accounting Firm (as defined below), in a manner that maximizes the Participant’s
economic position and is consistent with Code Section 409A. 
 7.2 The determination of whether an Excise Tax would be
imposed, the amount of such Excise Tax, the calculation of the amounts referred to in Section 7.1(i) and (ii) above, and the identification of any Payments to be reduced, if required by Section 7.1, will be made by the Company’s
regular independent accounting firm at the expense of the Company or, at the election and expense of the Participant, another nationally recognized independent accounting firm (the “Accounting Firm”) acceptable to the Company which
will provide detailed supporting calculations. The Company shall instruct the Accounting Firm to make all such calculations and determinations in a manner that is in the best interests of the Participant and maximizes the Participant’s economic
position. As a result of the uncertainty in the application of Code Section 4999 at the time of the initial determination by the Accounting Firm hereunder, it is possible that Payments to which the Participant was entitled, but did not receive
pursuant to Section 7.1, could have been made without the imposition of the Excise Tax (an “Underpayment”). In such event, the Accounting Firm will determine the amount of the Underpayment that has occurred and any such
Underpayment will be promptly paid by the Company to or for the benefit of the Participant. All calculations and determinations by the Accounting Firm will be binding upon the Company and the Participant. 

7.3 If the provisions of Code Section 280G and Section 4999 or any successor provisions are repealed without
succession, this Section 7 will be of no further force or effect. 

  
 16 

 8. Deferred Compensation Provision. 

8.1 Notwithstanding any other provision of the Plan, it is intended that any payment or benefit provided under the Plan that is
considered to be “deferred compensation” subject to Code Section 409A will be provided in such manner and at such time, including without limitation in connection with a permissible payment event under Code Section 409A, as is
exempt from or complies with the requirements of Code Section 409A. All rights to payments and benefits under the Plan are to be treated as rights to receive a series of separate payments and benefits to the fullest extent allowed by Code
Section 409A. Termination of employment under the Plan, to the extent required by Code Section 409A, will be construed to mean a “separation from service” under Code Section 409A and related regulations. The terms of the
Plan are intended to, and will be construed and administered to the fullest extent possible, to permit compensation to be paid under the Plan to be exempt from or comply with Code Section 409A. Regardless, neither the Company nor its directors,
officers or agents will be liable to a Participant or anyone else if the Internal Revenue Service or any court or other authority determines that any payments or benefits to be provided under the Plan are subject to taxes, penalties or interest as a
result of failing to comply with or be exempt from Code Section 409A. 
 8.2 Notwithstanding anything in the Plan to the
contrary, if any payment or benefit that constitutes non-exempt “deferred compensation” under Code Section 409A would otherwise be provided under the Plan due to the Participant’s
separation from service during a period in which he is a “specified employee” (as defined in Code Section 409A and the associated final regulations), then, to the extent required by Code Section 409A, such payments or benefits
will be delayed, to the extent applicable, until six months after the Participant’s separation from service or, if earlier, the Participant’s death (the “409A Deferral Period”). If such payments are otherwise due to be
made in installments during the 409A Deferral Period, the payments that would otherwise have been made in the 409A Deferral Period will be accumulated and paid in a lump sum during the seventh month following the Participant’s separation from
service, and the balance of the payments will be made as otherwise scheduled. In the event benefits are required to be deferred, any such benefit may be provided during the 409A Deferral Period at the Participant’s expense, with the Participant
having the right to reimbursement from the Company once the 409A Deferral Period ends, and the balance of the benefits will be provided as otherwise scheduled. 

8.3 With respect to any reimbursement or in-kind benefit arrangements of the Company
that constitute deferred compensation for purposes of Code Section 409A, except as otherwise permitted by Code Section 409A, the following conditions shall be applicable: (i) the amount eligible for reimbursement, or in-kind benefits provided, under any such arrangement in one calendar year may not affect the amount eligible for reimbursement, or in-kind benefits to be provided, under such
arrangement in any other calendar year, (ii) any reimbursement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. Whenever payments under the Plan are to be made in installments, each such installment shall be deemed to be a separate payment for
purposes of Code Section 409A. 

  
 17 

 9. Termination Procedures. Any purported termination of a Participant’s employment
shall be documented in a writing appropriate to the nature of the termination from the party terminating the employment relationship to the other party: 

(a) In the case of termination by the Company with Cause, the Company shall provide Participant with a written notice
identifying (i) in reasonable detail the facts and circumstances giving rise to the determination that Cause exists, and (ii) the effective date of the termination of employment; 

(b) In the case of a termination by the Participant for Good Reason, the Participant shall provide the Company with a written
notice (the “Notice of Good Reason”) stating (i) in reasonable detail the facts and circumstances giving rise to the determination that Good Reason exists, and (ii) the effective date of the termination of employment
absent cure, as provided below, in compliance with the time period set forth in Section 1.17 herein; and 
 (c) In the
case of all other terminations of employment, a document establishing the effective date of the termination of employment, in each case, subject to any other contractual obligations that may exist between the Company and the Participant. Under
circumstances where the Participant will be eligible for payment and benefits under the terms of the Plan (i.e., a termination by the Company without Cause), the document will confirm Participant’s eligibility for these payments and benefits
and summarize Participant’s entitlements post-termination. 
 Notwithstanding the foregoing, in the case of a termination by the Participant with Good
Reason, the Company shall have an opportunity to cure the circumstances giving rise to Good Reason as provided in Section 1.17 herein. 

10. No Mitigation. No Participant shall be required to seek other employment or to attempt in any way to reduce or mitigate any
benefits payable under this Plan and the amount of any such benefits shall not be reduced by any other compensation paid or provided to any Participant following such Participant’s termination of service, except as provided in
Section 5.1(c)(iii) of the Plan. 
 11. Successors. 

11.1 Company Successors. This Plan shall inure to the benefit of and shall be binding upon the Company and its
successors and assigns. Any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall, unless the Participant
otherwise consents, assume and agree to perform the obligations of the Company with respect to the Participant under this Plan. 

11.2 Participant Successors. This Plan shall inure to the benefit of and be enforceable by each Participant’s
personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, legatees or other beneficiaries. If a Participant shall die while any amount remains payable to such Participant hereunder, all such amounts
shall be paid in accordance with the terms of this Plan to the executors, personal representatives or administrators of such Participant’s estate. 

  
 18 

 12. Notices. All communications relating to matters arising under this Plan shall be in
writing and shall be deemed to have been duly given when hand delivered, faxed, emailed or mailed by reputable overnight carrier or United States certified mail, return receipt requested, addressed, if to a Participant, to the address on file with
the Company, and, if to the Company, to the address set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon
actual receipt: 
 ScanSource, Inc. 

6 Logue Court 

Greenville, South Carolina 29615 

Attention: General Counsel 

13. Claims Procedure. 

13.1 A committee (the “Plan Administrative Committee”) appointed by the Company will review and authorize payment of
benefits for Participants. After separation from the Company, questions regarding the payment of benefits under the Plan should be directed to the Plan Administrative Committee. 

If a Participant or the participant’s legal representative or beneficiary (the “Claimant”) feels he is not
receiving benefits which are due under the Plan, the Claimant should file a written claim for the benefits with the Plan Administrative Committee. A decision on whether to grant or deny the claim will be made within 90 days following receipt of the
claim. If more than 90 days is required to render a decision, the Claimant will be notified in writing of the reasons for delay before the end of the initial 90-day period. In any event, however, a decision to
grant or deny a claim will be made by not later than 180 days following the initial receipt of the claim. 
 If the claim is
denied in whole or in part, the Claimant will receive a written explanation worded in a manner calculated to be understood by the Claimant and which shall set forth: (i) the specific reason or reasons for the denial; (ii) specific
reference to pertinent provisions of the Plan on which the denial is based; (iii) a description of any additional material or information necessary for the Claimant to perfect the claim and an explanation of why such material or information is
necessary; and (iv) an explanation of the procedure for review of the denial and the time limits applicable to such procedures. 

If a Claimant wishes to appeal this denial, the Claimant may request a review of the denial in writing within 60 days after
receipt of the notification of denial. The claim will then be fully and fairly reviewed by the Plan Administrative Committee, and the 

  
 19 

 
Claimant will receive written notice of the final decision within 60 days after the request for review. If more than 60 days is required to render a decision, the Claimant will be notified in
writing of the reasons for delay before the end of the initial 60-day period. In any event, however, the Claimant will receive a written notice of the final decision within 120 days after the request for
review. Prior to the decision of the Plan Administrative Committee, the Claimant shall be given an opportunity to review pertinent documents and to submit issues and comments in writing. The decision on review shall set forth specific reasons for
the decision, shall be written in a manner calculated to be understood by the Claimant, and shall cite specific references to the pertinent Plan provisions on which the decision is based. The decision of the Plan Administrative Committee shall be
final and conclusive. 
 13.2 In the event that a Claimant files a claim that can be construed as a claim for
“disability benefits” within the meaning of Section 503 of ERISA and Section 2560.503-1 of the Labor Department’s Regulations thereunder, the provisions of Section 13.1 shall be
modified to the extent necessary to comply with such Regulations (as the same may be amended from time to time) and the provisions of this Section 13.2. 

Any review of an appeal of a determination with respect to the Participant’s Disability must meet the following standards:
the review must not afford deference to the initial adverse determination; the review must be conducted by an appropriate person who is neither the party who made the initial adverse benefit determination that is the subject of the appeal nor a
subordinate of such party; the review must provide for the appropriate person to consult with health care professionals with appropriate training and experience in the field of medicine involved in the medical judgment in deciding the appeal of an
adverse benefit determination that is based in whole or in part on a medical judgment; and the review must provide for the identification of the medical or vocational experts whose advice was obtained in connection with the Claimant’s adverse
benefit determination, without regard to whether the advice was relied upon in making the determination. Furthermore, the 90-day period described in Section 13.1 shall be reduced to 45 days in the case of
a claim of the Participant’s Disability. The 45-day period may be extended by 30 days if the Plan Administrative Committee determines the extension is necessary to circumstances outside the control of the
Plan, and the Claimant is notified before the end of the initial 45-day period. If prior to the end of the 30-day extension period, the Plan Administrative Committee
determines that additional time is necessary, the period may be extended for a second 30-day period, provided the Claimant is notified before the end of the first 30-day
extension period and such notice specifies the circumstances requiring the extension and the date as of which the Plan expects to render a decision. The 60-day period described in Section 13.1 shall be
reduced to 45 days with respect to the appeal of the denial of the Participant’s claim of Disability. The 45-day period may be extended by an additional 45 days if the Plan Administrative Committee
determines the extension is necessary due to circumstances outside the control of the Plan, and the Claimant is notified before the end of the initial 45-day period. 

  
 20 

 13.3 The exhaustion of these claims procedures is mandatory for resolving every
claim and dispute arising under the Plan. As to such claims and disputes: 
 (a) no Claimant shall be permitted to commence
any legal action to recover benefits or to enforce or clarify rights under the Plan under Section 502 or Section 510 of ERISA or under any other provision of law, whether or not statutory, until these claims procedures have been exhausted
in their entirety; and 
 (b) in any such legal action, all explicit and implicit determinations by the Plan Administrative
Committee (including, but not limited to, determinations as to whether the claim, or a request for a review of a denied claim, was timely filed) shall be afforded the maximum deference permitted by law. 

14. Additional Plan Provisions. 

14.1 No Right to Continued Employment or Service; At-Will Employment. Nothing
contained in this Plan shall (i) confer upon any Participant any right to continue as an employee of or in service to the Company or to hold any specific position or be employed or in service at any specific level, (ii) constitute any
contract of employment or service or agreement to continue employment or service for any particular period, or (iii) interfere in any way with the right of the Company to terminate an employment or service relationship with any Participant,
with or without Cause, at any time for any reason or for no reason. The Plan does not alter the status of each Participant as an at-will employee of the Company. 

14.2 Termination and Amendment of Plan; Waiver. 

(a) The Committee and/or the Board may, in its or their sole discretion, terminate or amend this Plan at any time; provided
that no Plan termination or amendment shall materially adversely affect the rights of an individual who is a Participant (and Eligible Employee) as of the date immediately preceding the effective date of any such Plan amendment or termination with
respect to such Participant’s Severance Benefits without such Participant’s written consent. Furthermore, no Plan termination or amendment occurring after a Participant’s termination of employment shall materially adversely affect the
rights or entitlements of that Participant with respect to such Participant’s Severance Benefits without the Participant’s consent. 

(b) Notwithstanding anything in the Plan to the contrary, the Board and/or the Committee may amend the Plan, to take effect
retroactively or otherwise, as deemed necessary or advisable to comply with Applicable Law or changes to Applicable Law (including, but not limited to, Code Section 409A). By participating in this Plan, a Participant shall be deemed to have
acknowledged and agreed to any amendment made pursuant to this Section 14.2(b) without further consideration or action. 

(c) The Company’s failure to enforce any Plan provision(s) will not in any way be construed as a waiver of any such
provision(s), nor prevent the Company from thereafter enforcing each and every other Plan provision. 

  
 21 

 14.3 Withholding. The Company shall have the authority and the right to
deduct and withhold an amount sufficient to satisfy federal, state, local and foreign taxes required by law to be withheld with respect to any benefits payable under this Plan. 

14.4 Benefits Not Assignable. Except as otherwise provided herein or by Applicable Law, no right or interest of any
Participant under the Plan shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge or in any manner; no attempted
assignment or transfer thereof shall be effective; and no right or interest of any Participant under the Plan shall be liable for, or subject to, any obligation or liability of such Participant. When a payment is due under the Plan to a Participant
who is unable to care for his affairs, payment may be made directly to his legal guardian or personal representative. 
 14.5
Governing Law. This Plan shall be construed and interpreted in accordance with the laws of the State of South Carolina without reference to the conflict of laws provisions thereof, to the extent not preempted by federal law, which shall
otherwise control. 
 14.6 Validity. The invalidity or unenforceability of any provision of this Plan shall not affect
the validity or enforceability of any other provision of this Plan, which shall remain in full force and effect. 
 14.7
Captions. The captions contained in this Plan are for convenience only and shall have no bearing on the meaning, construction or interpretation of the Plan’s provisions. 

14.8 Expenses. The expenses of administering the Plan shall be borne by the Company. 

14.9 Unfunded Plan. The Plan is intended to be an “unfunded” plan for severance benefits. Nothing contained in
the Plan shall give the Participant or other person any right, title or interest in any property of the Company or any rights that are greater than those of a general unsecured creditor of the Company, nor shall it create any trust or fiduciary
relationship. 
 14.10 Non-Duplication of Benefits. Notwithstanding anything
to the contrary herein, by participating in the Plan, a Participant shall be deemed to have acknowledged and agreed that his receipt of benefits under the Plan is in lieu of any similar benefits under any other Company severance plan, policy or
arrangement and that he shall not be entitled to duplicative benefits under both the Plan and any other Company plan, policy or arrangement. 

14.11 Arbitration. Following exhaustion of the administrative review of claims procedure herein, a Participant shall be
required (in lieu of litigation) to have any dispute or controversy arising under or in connection with this Plan settled by final and binding arbitration administered by the American Arbitration Association (“AAA”) under its National
Rules for the Resolution of Employment Disputes and the Federal Arbitration 

  
 22 

 
Act, 9 U.S.C. §1, et seq. subject to the following: (a) such arbitration shall take place in Greenville, South Carolina; (b) the provisions of the Plan shall be construed,
administered and enforced according to the Employee Retirement Income Security Act (“ERISA”); (c) such arbitration shall be arbitrated by one (1) neutral arbitrator with at least ten (10) years of ERISA litigation experience and
chosen from the AAA Roster of Neutral Arbitrators; (d) either party may seek from any court having jurisdiction any interim or provisional relief that is necessary to protect the rights or property of that party, pending the establishment of
the arbitral tribunal; (e) the arbitrator’s standard of review shall be exclusively one of abuse of discretion and the arbitrator shall be limited to the factual determination of the plan administrator; (f) no discovery shall be
allowed and review of the case shall be limited to abuse of discretion; (g) the arbitration will be based on the submission of documents and there shall be no in-person or oral hearing; (h) the award
shall be issued within seven (7) months of the filing of the notice of intention to arbitrate and the arbitrator shall agree to comply with this schedule before accepting appointment; (i) except as may be required by law, neither a party
nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of both parties; (j) the arbitrator shall have authority only to award remedies recoverable under ERISA;
(k) each party shall bear its own costs and expenses and the Company shall bear the arbitrator’s and administrative fees of arbitration; and (l) judgment upon the award rendered by the arbitrator may be entered by any court having
jurisdiction thereof. 
 14.12 Clawback; Stock Ownership and Retention Policy. By participating in the Plan, a
Participant shall be deemed to have acknowledged and agreed that he shall be subject to and will comply with the Company’s Compensation Recovery Policy and the Company’s Stock Ownership and Retention Policy, each as may be revised or
amended from time to time and if and as applicable to the Participant. 
 14.13 Severability. The provisions of the
Plan are severable. If any provision of the Plan is deemed legally or factually invalid or unenforceable to any extent or in any application, then the remainder of the provisions of the Plan, except to such extent or in such application, shall not
be affected, and each and every provision of the Plan shall be valid and enforceable to the fullest extent and in the broadest application permitted by law. 

14.14 Effect on Other Plans, Agreements and Benefits. Any severance benefits payable to a Participant under the Plan
will not be counted as compensation for purposes of determining benefits under any other benefit policies, plans or arrangements of the Company, except to the extent expressly provided herein or as otherwise determined by the Committee. 

[Signature Page to Follow] 

  
 23 

 The foregoing is hereby acknowledged as being the ScanSource, Inc. Executive Severance Plan as
adopted by the Board effective as of July 1, 2017. 
  

			
	SCANSOURCE, INC.

  

			
	By:	 	 /s/ Michael L. Baur

 

			
	
	Its: Chief Executive Officer

  
 24 

 ScanSource, Inc. 

Executive Severance Plan 

Participation Agreement 
 [Date]

 [Name and Address] 
 Re: ScanSource, Inc.
Executive Severance Plan 
 Dear [Participant Name]: 

This Participation Agreement (this “Agreement”) is made and entered into by and between [Participant Name] and ScanSource, Inc. (the
“Company”). 
 The Company has adopted the ScanSource, Inc. Executive Severance Plan (as it may be amended and/or restated, the
“Plan”) in order to provide selected eligible executive officers with the opportunity to receive severance and other benefits in the event of certain terminations of employment and to attract and retain qualified executive officers.

 A participant in the Plan is eligible to receive severance and other benefits if his or her employment is terminated under certain circumstances, as
described in the Plan. 
 The Company has selected you to be a participant (the “Participant” or “you”) in the Plan,
subject to the terms and conditions set forth in this Agreement and the Plan. A copy of the Plan has been provided to you and this Agreement is deemed to be part of the Plan. Unless otherwise defined herein, any capitalized terms used in this
Agreement shall have the meanings set forth in the Plan. 
 In consideration of the mutual covenants contained herein and in the Plan, the Participant and
the Company hereby agree as follows: 
 1. Your Severance Multiple shall be
[                ]. 
 2. Your Change in Control Multiple
shall be [                ]. 
 3. You further agree to be
bound by the terms of the Plan, including but in no way limited to the restrictive covenants, arbitration and other provisions set forth in the Plan, and the right of the Company to cease payments and/or recover payments in the event that you breach
or threaten to breach such restrictive covenants or as otherwise provided in the Plan. You also hereby consent and agree that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or
other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of
posting any bond or other security. The aforementioned equitable relief shall be in addition to, and not in lieu of, legal remedies, monetary damages or other available forms of relief. 

4. You agree that the Plan contains all of the understandings and representations between you and the Company pertaining to the subject matter hereof and
supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter[, including, without limitation, [List applicable agreements]. You also agree
that, if you are entitled to receive severance benefits under the Plan, then you shall not be entitled to receive severance benefits under any other severance plan, 

  
 25 

 
employment agreement, employment letter or other plan, agreement or arrangement maintained by the Company, as such plan, agreement or arrangement may be amended from time to time, and you hereby
waive any right to such benefits. 
 You acknowledge and agree that you have fully read, understand and voluntarily enter into the Agreement. You
acknowledge and agree that you have received a copy of the Plan and have had an opportunity to consult with your personal tax or financial planning advisor and/or attorney about the tax, financial and legal consequences of your participation in the
Plan before signing this Agreement. 
 This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which
taken together shall constitute one and the same instrument. The Agreement may be amended as provided in the Plan. 
 [Signature Page to
Follow] 

  
 26 

 IN WITNESS WHEREOF, the Company has executed this Agreement by its duly authorized officer as of the date set
forth below. Please sign below and return the Agreement to the Company’s Vice President Worldwide – Human Resources at [Insert contact information] by [Date]. Failure to execute and return the Agreement by [Date] may,
in the Company’s discretion, render your eligibility to participate in the Plan and the Plan void and of no effect. 
  

			
	Very truly yours,
	ScanSource, Inc.

  

			
	By:	 	  

	Name:	 	
	Title:	 	

 By my signature below, I accept my designation as a Participant in the Plan and agree to be bound by and subject to the
terms and conditions of this Agreement and the Plan, including but in no way limited to the restrictive covenants, arbitration provisions and other terms set forth in the Plan. 

 

			
	PARTICIPANT:

  

			
	By:	 	  

	Name:	 	
	Title:	 	
	Date:	 	

  
 27BAKKEN RESOURCES, INC.

CONVERTIBLE LOAN 
CREDIT
AGREEMENT 

May 6, 2016 

 

 

TABLE OF
CONTENTS 

				Page
	1.     		Convertible Debt	  	1	  
		1.1	Terms of Convertible Debt		1	
		1.2	Closings		1	
		1.3	Use of Proceeds		2	
	 	
	2.		Representations and Warranties of the
      Company		2	
		2.1	Organization; Good Standing; Qualification		2	
		2.2	Authorization		3	
		2.3	No Violation		3	
		2.4	Financial Matters		3	
		2.5	Tax Matters		4	
		2.6	Certain Changes		5	
		2.7	Undisclosed Liabilities		6	
		2.8	Litigation		7	
		2.9	Compliance with Laws and Orders		7	
		2.10	Title to Property and Assets;
      Leases		8	
		2.11	Insurance		9	
		2.12	Contracts		10	
		2.13	No Default		12	
		2.14	Labor Matters		12	
		2.15	Employee Benefit Plans		12	
		2.16     	Employees; Employee
    Compensation		15	
		2.17	Trade Rights		15	
		2.18	Certain Relationships		16	
		2.19	Assets and Services Necessary to Business		17	
	 	
	3.		Representations and Warranties of
      Lender		17	
		3.1	Organization; Power		17	
		3.2	Authorization		17	
		3.3	Brokers or Finders		18	
		3.4	Conflicts		18	
		3.5	Litigation		18	
	 	
	4.		Conditions of Lender's Obligations at
      Closing		18	
		4.1	Representations and Warranties		18	
		4.2	Performance		18	
		4.3	Compliance Certificate		18	
		4.4	Secretary’s Certificates		18	
		4.5	Securities Law Compliance		18	
		4.6	Regulatory Compliance		18	
		4.7	Proceedings and Documents		19	
		4.8	Articles of Incorporation		19	
		4.9	Performance of Covenants		19	
		4.10	Due Diligence		19	
		4.11	Material Adverse Change		19	
		4.12	Qualifications		19	

i

	5.     		Default		19	
		5.1	Events of Default		19	
		5.2	Remedies Upon Event of Default		20	
			 			
	6.     		Miscellaneous	  	21	  
		6.1	Entire Agreement		21	
		6.2	Survival of Warranties and Limited
      Liability		21	
		6.3	Successors and Assigns		21	
		6.4	Governing Law		21	
		6.5	Counterparts		21	
		6.6	Titles and Subtitles		21	
		6.7	Rules of Construction		21	
		6.8	Aggregation of Holdings		21	
		6.9	Notices		21	
		6.10	Finders’ Fees		22	
		6.11	Expenses		22	
		6.12	Attorneys’ Fees		22	
		6.13     	Amendments and Waivers		22	
		6.14	Severability		22	
		6.15	Exculpation Among Investors		22	

ii

EXHIBITS 

	Exhibit A     	—     	Designation
	Exhibit B	—	Option Agreement

iii

BAKKEN RESOURCES, INC.

CONVERTIBLE
LOAN
CREDIT
AGREEMENT 

THIS CONVERTIBLE LOAN  CREDIT AGREEMENT
(this “Agreement”) is
made as of  the 6th day of May, 2016, by and between BAKKEN
RESOURCES, INC., a Nevada corporation (the “Company,”
the  “Business,” or
“Bakken”), and
EAGLE PRIVATE EQUITY,  LLC, a
New York limited liability  company (“Eagle”
or the “Lender”) for
the purpose  of lending the Company convertible funds under the terms and conditions  contained herein. 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants and conditions set forth
in this Agreement, the parties hereby agree as follows: 

1. Convertible Debt.

1.1 Terms of the Convertible Debt. 

(a) The
Company shall adopt and file with the Secretary of State of Nevada on or before  the Closing date (as defined below) a
Certificate of Designation in  substantially the form attached hereto as Exhibit
A (the  “Designation”). 

(b) Subject to the terms and conditions of this Agreement, for a period of
270 days after the Closing (the “Initial Period”), the
Company shall have the right to draw from Eagle, up to a total of one million
dollars ($1,000,000) in convertible debt (the “Facility”). The Facility shall not be considered a revolving facility. Company
may make draws on the Facility at any time during the 270 day period. Interest
on the Facility shall be equal to LIBOR +4%, accrued daily. Interest and principal
shall be payable twenty four (24) months following Closing. The USD LIBOR rate
for 12 months shall be used for purposes of calculating loans made by Lender
under the Facility. Following the Initial Period, the
Facility may be extended by the Company for an additional 270 days upon payment of a further Facility
Fee (as hereinafter defined).

(c) At
Closing, Company shall grant to Eagle an Option in substantially the form
attached hereto as Exhibit B, to convert the debt, in accordance with the terms of the Option,  into shares of Series A
Preferred stock equal to the amount of the Facility, up to one million
(1,000,000) shares, having a price of $0.___ per share  (the
“Option”). 

(d) Immediately upon
Closing, Company shall pay to Eagle a Facility Fee equal to five percent (5%) of
the amount of the Facility ($50,000) (the “Facility Fee”) 

(e) Upon the occurrence of
any Triggering Event (as defined in the Option Agreement), Eagle shall have the
right to put the convertible debt to the Company in an amount totaling up to the
maximum amount remaining of the convertible debt Facility.

1.2 Closing.

(a) Closing. The Closing of
this Agreement shall take place at the offices of Paul Law Group, LLP, 902
Broadway, 6th Floor, New York, NY, at 9:00 A.M. EST on May 6, 2016,
or at such other time and place as the Company and Eagle pursuant hereto shall
mutually agree, either orally or in writing (which time and place are designated
as the “Closing”).

1

(b) Closing
Deliveries. At the  Closing, the Company shall deliver to Lender an approved
Designation filed with  the Secretary of State of the State of Nevada in substantially the form attached  hereto as Exhibit
A, the Option in substantially the form attached hereto as  Exhibit B, the Facility Fee, and any other documents contemplated
by this  Agreement to be delivered prior to Closing. 

(c) Drawdown Deliveries. In
the event of any drawdown from the Facility by the Company, the Company shall
deliver a certificate affirming the Company’s representations and warranties
made in this Agreement as of the contemplated drawdown date, in form and
substance satisfactory to Lender. With respect to any representations or
warranties that speak to a specific date, such certificate contemplated by this
Section 1.2(c) shall contain the affirmative representation of the Company that
such representation or warranties continue to be true as of such stated date.

1.3 Use
of Proceeds. The Company intends
to use proceeds from the convertible loan for acquiring certain non-operating
oil or gas interests, including but not limited to leasehold mineral
interests, overriding royalties relating to mineral production, and/or the identification and acquisition of
real property interests pursuant to one of Bakken’s core functions of leasing such property to oil and gas
producers in exchange for rights to retain certain royalty payments.

2. Representations and Warranties of the Company. The Company makes the following representations
and warranties to Eagle, each of which is true and correct on the date hereof
and shall survive the consummation of the transactions contemplated hereby.

2.1 Corporate.

(a) Organization. Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada with securities registered under Section 12(g) of the
Securities Exchange Act of 1934, as amended. 

(b) Corporate Power. Company
has all requisite corporate power and authority to own, operate and lease its
properties, to carry on its business as and where it is currently being
conducted, to execute and deliver this Agreement and the other documents and
instruments to be executed and delivered by Company pursuant hereto and to carry
out the transactions contemplated hereby and thereby. 

(c) Qualification. Company is
duly licensed or qualified to do business as a foreign corporation, and is in
good standing, in each jurisdiction in which the character of the properties
owned or leased by it, or the nature of its business, makes such licensing or
qualification necessary. Schedule
2.1(c) sets forth a true, correct
and complete list of the jurisdictions in which the character of the company’s
assets or the nature of the business makes such licensing or qualification
necessary. 

(d) No
Subsidiaries. With the exception
of BR Metals, which is reported on a consolidated basis with the Company, the
Company does not own, directly or indirectly, any capital stock or other equity
or ownership interest of any corporation, limited liability company, partnership
or other entity. Company does not have any right to acquire, directly or
indirectly, any outstanding capital stock of, or equity interest in, any entity.

(e) Directors and Officers.
Company has delivered to Eagle true, correct and complete copies of its articles
of incorporation, bylaws and similar organizational documents, including any
amendments thereto. Set forth in Schedule 2.1(e) is a list
of the directors and officers of Company. 

2

2.2 Authority. The execution
and delivery of this Agreement and the other documents and instruments to be
executed and delivered by Company or anyone on behalf of the Company pursuant
hereto and the consummation of the transactions contemplated hereby and thereby
have been duly authorized by Company. No other or further act or proceeding on
the part of Company, its directors, or shareholders is necessary to authorize
this Agreement or the other documents and instruments to be executed and
delivered by Company pursuant hereto or the consummation of the transactions
contemplated hereby and thereby. Company has delivered to Eagle true, correct
and complete copies of all consents, resolutions and other documents necessary
to duly authorize the execution and delivery of this Agreement and the other
documents and instruments to be executed and delivered by Company or Members
pursuant hereto and the consummation of the transactions contemplated hereby and
thereby. This Agreement constitutes, and when executed and delivered, the other
documents and instruments to be executed and delivered by Company or Members
pursuant hereto will constitute, valid and binding agreements of Company
enforceable in accordance with their respective terms. 

2.3 No
Violation. Except as set forth on
Schedule 2.3, neither the execution and delivery of this
Agreement or the other documents and instruments to be executed and delivered by
Company pursuant hereto nor the consummation by Company of the transactions
contemplated hereby and thereby (a) will violate any applicable law or order,
(b) will require any authorization, consent, approval, exemption or other action
by or notice to any individual, corporate entity, or governmental entity
(including under any (1) “plant closing” or similar law or under any (2) Environmental Laws (including any so called “transaction-triggered” or
“responsible property transfer” laws and regulations)) or (c) will violate or
conflict with, or constitute a default (or an event that, with notice or lapse
of time, or both, would constitute a default) under, or will result in the
termination of, or right to terminate, or accelerate the performance required
by, or result in the creation of any Lien upon any of the assets of Company
under, any term or provision of the articles of incorporation, bylaws or similar
organizational documents of Company or of any Contract or restriction of any
kind or character to which Company is a party or by which Company or any of its
assets or properties may be bound or affected or (d) result in the imposition of
a Lien on any asset, security, or other property subject to the loan described
herein. For purposes of this Agreement, “Lien” shall be defined as
all mortgages, liens (statutory or otherwise), security interests, claims,
pledges, licenses, equities, options, conditional sales contracts, assessments,
levies, easements, covenants, conditions, reservations, encroachments,
hypothecations, restrictions, rights-of-way, exceptions, limitations, charges,
possibilities of reversion, rights of refusal or encumbrances of any nature
whatsoever. 

2.4 Financial Matters.

(a) Financial Statements. The
Company will provide Lender with unaudited financial statements for the 2015
fiscal year ended December 31, 2015 (the “Financial Statements”).

(b) Internal Accounting Controls. In the conduct of its business, Company
maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and (iv)
the recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences. 

3

2.5 Tax
Matters. 

(a) Provision for Taxes. The
provision made for taxes (other than a reserve for deferred taxes established to
reflect timing differences between book and tax income) on the Company’s most
recent balance sheet is sufficient for the payment of all taxes with respect to,
in connection with, associated with, or related to, the Company, at the date of
the most recent balance sheet, and for all periods prior thereto. Since the date
of the most recent balance sheet, Company has not incurred any taxes other than
taxes incurred in the ordinary course of business consistent in type and amount
with the past practices of Company. 

(b) Tax
Returns Filed. All tax returns
with respect to, in connection with, associated with, or related to, the Company
required to be filed by or on behalf of Company have been timely filed and, when
filed, were true, correct and complete. All taxes owed or due and payable by
Company (whether or not shown on any tax return) have been paid by Company or
will be timely paid by Company. Company has duly withheld and paid all taxes
that it is required to withhold and pay in connection with amounts paid or owing
to any employee, independent contractor, creditor, equity owner, or other third
party of Company and all Forms W-2 and 1099 required with respect thereto have
been properly completed and timely filed. 

(c) Tax
Audits. No claim has ever been
made by an authority in a jurisdiction in which Company does not file tax
returns that it is or may be subject to taxation by that jurisdiction or
authority with respect to, in connection with, associated with, or related to
its business. Schedule 2.5(c) lists all tax returns
filed by the Company for taxable periods ended on or after December 31, 2014,
indicates those tax returns that have been audited, and indicates those tax
returns that currently are the subject of audit. Company has delivered to Eagle
true, correct, and complete copies of all tax returns filed, and all examination
reports and statements of deficiencies assessed against or agreed to, by Company
with respect to, in connection with, associated with, or related to it business
since December 31, 2014. There are outstanding no agreements or waivers
extending the statutory period of limitations applicable to any Tax Return with
respect to a tax assessment or deficiency. Except as set forth in Schedule
2.5(c), since January 1, 2014, Company has not received
(i) any notice of underpayment of taxes or other deficiency that has not been
paid or (ii) any objection to any tax return filed by the Company, whether in
writing or verbally, formally or informally. Neither the Company nor any
director, officer or employee responsible for tax matters has knowledge of any
dispute or claim concerning any tax liability of the Company. Except as set
forth in Schedule 2.5(c), all deficiencies asserted or assessments made as
a result of any examinations with respect to, in connection with, associated
with, or related to, the Company have been fully paid or are fully reflected as
a Liability in the financial statements of the Company. 

(d) Consolidated Group.
Schedule 2.5(d) contains a true, correct and complete list of
every year that Company was a member of an affiliated group of corporations that
filed a consolidated tax return on which the statute of limitations does not bar
a federal tax assessment, as well as each corporation that has been a part of
such group. 

(e) Other. Company has not (i)
applied for any tax ruling, with respect to, in connection with, associated
with, or related to, its business, (ii) entered into a closing agreement with
any taxing authority, with respect to, in connection with, associated with, or
related to its business, (iii) filed an election under Section 338(g) or Section
338(h)(10) of the Code (nor has a deemed election under Section 338(e) of the
Code occurred), (iv) made any payments, or been a party to an agreement
(including this Agreement), that under any circumstances could obligate it to
make payments (either before or after the Closing Date) that will not be
deductible because of Sections 280G or 162(m) of the Code or (v) been a party to
any tax allocation or Tax sharing agreement. Company has no liability for the
taxes of any other person or entity under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or
foreign law), as a transferee or successor, by contract, or otherwise. Company
is not a “United States real property holding company” within the meaning of
Section 897 of the Code. Company has not agreed, nor is it required to make, any
adjustment under Section 263A, Section 481, or Section 482 of the Code (or any
corresponding or similar provision of state, local or foreign law) by reason of
a change in accounting method or otherwise. Company does not have a permanent
establishment in any foreign country, as defined in any applicable tax treaty or
convention between the United States of America and such foreign country.
Company is in compliance with the terms and conditions of all applicable tax
exemptions, tax agreements and tax orders of any governmental entity to which it
may be subject or to which it may have claimed, and the transactions
contemplated by this Agreement will not have any adverse effect on such
compliance. Company is not and has not been a party to any “reportable
transaction,” as defined in Section 6707A of the Code and Treasury Regulation
Section 1.6011 4(b). For purposes of this Agreement, the “Code” means the Internal Revenue Code of 1986, as amended. 

4

(f) No
Tax Liens. There are no Liens for
taxes with respect to, in connection with, associated with, or related to, the
Company or the assets thereof. 

(g) Corporate Status; Pass-Through Entities. Company is, and has been for its entire
existence treated as, a C corporation for all relevant income tax purposes.
Schedule 2.5(g) lists every corporation, limited liability
company, partnership, and other entity, whether or not such entity is
disregarded for tax purposes, in which Company has an interest and that is
either an asset of Company used in its business or owns all or some of the assets
used by the Business. 

2.6 Absence
of Certain Changes. Except as and to the extent set forth in Schedule 2.6,
since December 31, 2015, none of the follow has  occurred with respect to the Company: 

(a) No
Adverse Change. Any material
adverse change in the conduct, financial condition, business, prospects or
operations of the Company, its assets that are used, held for use or acquired or
developed for use, or its liabilities. 

(b) No
Damage. Any material loss, damage
or destruction, whether covered by insurance or not, relating to or affecting
the Company, its assets, or liabilities. 

(c) No
Material Increase in Compensation. Any material increase in the compensation, salaries, commissions or
wages payable or to become payable to any employees or agents of Company or
whose compensation is reflected on the Financial Statements, including any bonus
or other employee benefit granted, made or accrued in respect of such employees
or agents, or any increase in the number of such employees or agents (including
any increase pursuant to any employee benefit plan or agreement or other
commitment). 

(d) No
Labor Disputes. Any labor
dispute, other than routine individual grievance that are not material to the
conduct, financial condition, liabilities, business, prospects or operations of
the Company, including any strike, slow-down, picketing, work-stoppage, or other
similar labor activity with respect to any employees, nor any threat of such. To
Company’s knowledge, no officer or employee of the Company has any current plan
to terminate his or her employment with the Company. 

(e) No
Disposition of Property. Any
sale, lease, grant or other transfer or disposition of any properties or assets
of Company, except for the sale of products in the ordinary course of business
and except as would not exceed $5,000 in the aggregate. 

5

(f) No
Liens. Any Lien made on any of
the properties or assets of Company. 

(g) No
Amendment of Contracts, Rights.
Any entering into, amending or early termination of any Contract relating to or
affecting the Company, or any release or waiver of any material claims or rights
in respect of the Company, other than in the ordinary course of
business.

(h) Credit. Any grant of
credit by Company to any customer (including any distributor) on terms or in
amounts more favorable than those that have been extended to such customer in
the past, any other change made by Company in the terms of any credit heretofore
extended or any other change of Company’s policies or practices with respect to
the granting of credit in connection with its business.

(i) Discharge of Obligations.
Any discharge, satisfaction or agreement to satisfy or discharge any liability
relating to or affecting the Company, other than the discharge or satisfaction
in the ordinary course of business of current liabilities reflected on the face
of the most recent balance sheet and current liabilities incurred since the date
of the most recent balance sheet in the ordinary course of the Company’s
business.

(j) Deferral of Liabilities.
Any deferral, extension or failure to pay any of the Company’s liabilities as
and when the same become due or any allowance of the level of the liabilities to
increase in any material respect or any prepayment of any liabilities.

(k) Accounting Principles. Any
material change in Company’s financial or tax accounting principles or methods,
except to the extent required by GAAP.

(l) No
Mass Layoffs. Any employee
termination or reduction in the work force affecting two or more employees,
other than employee terminations or reductions for cause (as that term is used
in 20 C.F.R. § 639.3(e)) or as a result of an employee’s voluntary resignation
or departure or retirement. 

(m) Organizational Documents.
Any amendment or modification to the organizational documents of Company except
as publicly reported to the U.S. Securities and Exchange Commission on the EDGAR
filing system. 

(n) Cash Management. Any (i)
discount granted to customers, (ii) acceleration of any notes or accounts
receivable (including by delivery of invoices to customers further in advance or
more frequently than has been the Company’s historical practice), (iii) delay or
acceleration of the payment of any accrued expense, trade payable or other
liability, (iv) material change in the Company’s marketing, performance or
pricing or (v) other action that would artificially alter, inflate, or deplete
any element of the Company’s working capital. 

(o) Agreement or Commitment.
Any agreement or commitment, whether orally or in writing to do any of the
foregoing. 

2.7 Absence of Undisclosed Liabilities.

Except as and to the extent
specifically set forth on the face of the Company’s most recent balance sheet,
or in Schedule 2.7, Company does not have any liabilities (whether
absolute, accrued, contingent or otherwise, whether matured or unmatured and
whether due or to become due), including obligations of the Company arising from
any severance, retention or similar agreements with any present or former
employees of the Company, or tax liabilities due or to become due, other than:
(a) commercial liabilities incurred since
the date of the most recent balance sheet in the ordinary course of business
consistent with past practice, none of which has had or is reasonably likely to
have a material adverse effect on the conduct, financial condition, business,
prospects or operations of the Company, the Company’s assets or the Company’s
liabilities; (b) liabilities disclosed in this Agreement or in the Disclosure
Schedule; or (c) liabilities that are accrued and reflected on the Financial
Statements. Except as disclosed on Section 2.7 of the
Disclosure Schedule, the Company is not a guarantor nor is it otherwise liable
for any obligation (including indebtedness) of any other person or entity.

6

2.8 No
Litigation.

Except as set forth in
Schedule 2.8 there is no litigation, proceeding (arbitral or
otherwise), claim, action, suit, judgment, decree, settlement, rule, order or
investigation of any nature pending, or to the Company’s knowledge, contemplated
by or threatened against Company, its directors or officers (in such capacities)
that in any way involves its business, assets or liabilities, nor is there any
basis for any of the foregoing. To Company’s knowledge, no event has occurred or
action has been taken that is reasonably likely to result in such litigation.
Schedule 2.8 also identifies all litigation to which Company
or its directors or officers (in such capacity) have been parties since December
31, 2012 that in any way involves its business, its assets or liabilities.
Except as set forth in Schedule
2.8, no aspect of the its assets,
or liabilities is subject to any Order. For purposes of this Agreement,
“Order” shall mean any order, writ, injunction, plan or
decree of any governmental entity.

2.9 Compliance With Laws and Orders. 

(a) Laws and Orders. Company
in respect of the operations, practices, properties and assets of its business
is and has been in compliance with all applicable laws and Orders. Except as set
forth in Schedule 2.9, Company has not received notice
of any violation or alleged violation of any laws or Orders. All reports,
filings and returns required to be filed by or on behalf of Company with any
governmental entity have been filed and, when filed, were true, correct and
complete. Without limitation: 

(i) Unemployment Compensation.
Company has made all required payments to its unemployment compensation reserve
accounts with the appropriate governmental entities of the jurisdictions in
which it is required to maintain such accounts with respect to its operations,
and each of such accounts has a positive balance. 

(ii) OSHA. Company has
delivered to Eagle copies of all reports and logs required to be filed by
Company during the five (5) year period immediately preceding the date hereof
under the Occupational Safety and Health Act of 1970, as amended, and under all
other applicable health and safety laws together with all such reports and logs
currently being maintained by Company. The deficiencies, if any, noted on such
reports have been corrected. 

(b) Licenses and Permits.
Company has all licenses, permits, approvals, certifications, consents and
listings of all governmental entities and of all certification organizations
required, and all exemptions from requirements to obtain or apply for any of the
foregoing, for the conduct of its business. All such licenses, permits,
approvals, certifications, consents and listings are set forth in
Schedule 2.9(b), are in full force and effect. No loss or
expiration of any permit is pending or, to the knowledge of the Company,
threatened or reasonably foreseeable other than in expiration in accordance with
the terms thereof, which terms do not expire as a result of the consummation of
the transactions contemplated hereby. Except for past violations for which
Company is not subject to any current liability and cannot become subject to any
future liability and except as set forth in Schedule 2.9(b), Company (including its operations, practices,
properties and assets) is and has been in compliance with all such licenses,
permits, approvals, certifications, consents and listings. 

7

(c) Environmental Matters. For
purposes of this Agreement, “Environmental Laws” shall mean all laws (including
common law) relating to pollution, protection of the environment or human
health, occupational safety and health or sanitation, including laws relating to
emissions, spills, discharges, generation, storage, leaks, injection, leaching,
seepage, releases or threatened releases of waste into the environment
(including ambient air, surface water, ground water, land surface or subsurface
strata) or otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of waste, together with any
regulation, code, plan, order, decree, judgment, injunction, notice or demand
letter issued, entered, promulgated or approved thereunder. The Company is and
has been in full compliance with all Environmental Laws, including without
limitation possessing, and having possessed, all required permits,
authorizations, license, exemptions and other permissions from governmental
entities required for the operation of its facilities and properties under
applicable Environmental Laws. There is no litigation nor any demand, claim,
hearing, notice of violation or demand letter pending or, to Company’s
knowledge, threatened against Company relating in any way to the Environmental
Laws. There are no past or present circumstances affecting Company that may (i)
interfere with or prevent full compliance or continued full compliance with all
Environmental Laws or (ii) give rise to any liability. There is no waste that is
being used, stored, treated, disposed of, or otherwise present on, under or
about the leased premises or, to the Company’s knowledge, any real property
formerly owned, leased, or operated by the Company. Each of the leased premises,
during the period it was leased by the Company, has been operated and maintained
in, and the Company is and has at all prior times otherwise been in full
compliance with all applicable Environmental Laws. The Company has provided to
the Eagle all information and reports about any environmental conditions on any
real property constituting the leased premises and any real property formerly
owned, leased or operated by the Company. The Company has not assumed,
contractually or by operation of law, any liabilities or obligations under any
Environmental Laws. The Company is not aware of the need to conduct any
environmental investigations or remediation pursuant to any Environmental Law or
that it may be in violation of any requirement of any Environmental Law. The
Company’s business, as of the Closing, does not require the Company obtain or
receive any licenses, permits, certification or other approvals by Governmental
Authority relating to Environmental Laws or waste. 

(d) Questionable Payments. The
conduct of the business of the Company is in compliance with all applicable
anti-corruption laws and regulations. 

2.10 Title to and Condition of Properties. 

(a) Marketable Title. Company
has good and marketable fee title or leasehold title (as applicable) to all of
its owned assets, free and clear of all Liens. Except for the other assets set
forth in Schedule
2.10(a). Company has good and
marketable leasehold title to all of its assets that are subject to personal
property leases and real property leases. None of the assets are subject to any
restrictions with respect to the transferability or divisibility thereof.
Company has complete and unrestricted power and right to sell, assign, convey
and deliver any of its assets to Eagle as contemplated hereby. None of the
Company’s assets is subject to recovery by any previous owner of such property
or any governmental entity under any theory of law or contractual right. Except
as set forth in Schedule
2.10(a), Company is not using any
properties, rights or assets that are not owned, licensed or leased by
it.

8

(b) Condition. All of the
Company’s tangible assets (real and personal) are in good operating condition
and repair, free from any defects (except for such minor defects as do not
interfere with the use thereof in the conduct of the normal operations of the
Company), have been maintained consistent with the standards generally followed
in the industry and are sufficient to carry on the business as conducted during
the preceding twelve (12) months. All buildings, plants and other structures
owned or otherwise utilized by Company are in good condition and repair and have
no structural defects or defects affecting the plumbing, electrical, sewerage,
or heating, ventilating or air conditioning systems (except for such minor
defects as do not interfere with the use thereof in the conduct of the normal
operations of the business). 

(c) Real Property. Other than
the mineral rights set forth in Schedule 2,10(c), the Company does not own, and has never
owned, any interest in any real property. Schedule 2.10(c) sets forth a true,
accurate and complete description of the Leased Real Property, including the
address thereof, the annual fixed rental, the expiration of the term, any
extension options and any security deposits. The leased real property listed on
Schedule 2.10(c) (the “Leased Real Property”) comprises all of the real property interests
used or occupied by the Company. A true and correct copy of each such lease,
license or occupancy agreement, and any amendments thereto, with respect to the
Leased Real Property (collectively, the “Real Property Leases”) has
been delivered to the Lender, and no changes have been made to any of the Real
Property Leases since the date of delivery. All of the Leased Real Property is
used or occupied by the Company pursuant to a Real Property Lease. Each Real
Property Lease is in full force and effect and is legal, valid, binding and
enforceable in accordance with its terms. There are no existing breaches or
defaults by the Company or the lessor under any of the Real Property Leases and
to the Company’s knowledge, no event has occurred which (with notice, lapse of
time or both) could reasonably be expected to constitute a breach or default
under any of the Real Property Leases by any party or give any party the right
to terminate, accelerate or modify any Real Property Lease. The Company has
performed in all material respects all obligations to be performed by it to date
under the Real Property Leases.

(d) No
Condemnation, Expropriation or Similar Action. Neither the whole nor any portion of the
Company’s assets is subject to any order to be sold or is being condemned,
expropriated or otherwise taken by any governmental entity with or without
payment of compensation therefor, and to Company’s knowledge, no such
condemnation, expropriation or taking has been planned, scheduled or proposed.

2.11 Insurance. 

(a) Business Insurance Policies. Schedule
2.11(a) sets forth a true, correct and complete list and
description of all insurance policies held by the Company relating to the
Company and its business (collectively, the “Business Insurance Policies”). Schedule 2.11(a) includes,
without limitation, the carrier, the description of coverage, the limits of
coverage, retention or deductible amounts, amount of annual premiums, date of
expiration and date through which premiums have been paid with respect to each
Business Insurance Policy, and any pending claims in excess of $500 (or its
foreign currency equivalent as of the date hereof). Company has delivered true,
correct and complete copies of each Business Insurance Policy to Eagle. All
Business Insurance Policies provide insurance coverage with respect to the
Company, its assets or liabilities of the kinds, in the amounts and against the
risks customarily maintained by organizations similarly situated. Each Business
Insurance Policy (i) is legal, valid, binding, enforceable, and in full force
and effect as of the Closing and (ii) will continue to be legal, valid, binding,
enforceable, and in full force and effect on identical terms following the
consummation of the transactions contemplated hereby. Company is not in default
with respect to its obligations under any
insurance policy, nor has the Company been denied insurance coverage. Company
has not received any notice of cancellation or termination with respect to any
Business Insurance Policy, and to Company’s knowledge, no event or condition
exists or has occurred that could result in cancellation of any Business
Insurance Policy prior to its scheduled expiration date. To Company’s knowledge,
Company has duly and timely made all claims that it has been entitled to make
under each Business Insurance Policy. Company has not received any notice from
or on behalf of any insurance carrier issuing any Business Insurance Policy that
insurance rates therefor will hereafter be substantially increased (except to
the extent insurance rates may be increased for all similarly situated risks) or
that there will hereafter be a cancellation or an increase in a deductible (or
an increase in premiums to maintain an existing deductible) or nonrenewal of any
Business Insurance Policy. The Business Insurance Policies are sufficient in all
material respects for compliance by Company with all requirements of
law.

9

(b) Business Insurance and Liability Policies. Since January 1, 2013, all general liability
policies maintained by or for the benefit of Company relating to the operations
of its business have been “occurrence” policies and not “claims made” policies
(collectively, the “Liability
Policies”). Schedule 2.11(b) indicates each Business Insurance Policy and each
Liability Policy as to which (i) the coverage limit has been reached or (ii) the
total incurred losses to date equal seventy-five percent (75%) or more of the
coverage limit. All Business Insurance Policies and Liability Policies are
valid, outstanding and enforceable policies. No Business Insurance Policy (nor
any previous policy) or Liability Policy provides for or is subject to any
currently enforceable retroactive rate or premium adjustment, loss sharing
arrangement or other actual or contingent Liability arising wholly or partially
out of events arising prior to the Closing. There is no claim by Company pending
under any Business Insurance Policy or Liability Policy as to which coverage has
been questioned, denied or disputed by the underwriters of such policies, and to
Company’s knowledge, there is no basis for denial of any pending claim under any
Business Insurance Policy or Liability Policy. None of the insurance carriers
providing coverage under the Business Insurance Policies or Liability Policies
has declared bankruptcy or provided notice of insolvency to Company or any
Member. Company has not been refused any insurance with respect to any aspect of
the operations of its business. 

2.12 Contracts and Commitments.
Except as set forth in Schedule
2.12: 

(a) Real Property Leases.
Company (whether as lessor or lessee) has no contracts for the lease or
occupancy of Real Property, including any co-location or data center
facilities.

(b) Personal Property Leases.
Company (whether as lessor or lessee) has no Personal Property Leases. For
purposes of this Agreement, “Personal Property Leases”
means a Contract for the lease or use of personal property used, held for use or
acquired or developed for use primarily in the business involving any remaining
consideration, termination charge or other expenditure in excess of $2,000 (or
its foreign currency equivalent as of the date hereof) or involving performance
over a period of more than twelve (12) months. 

(c) Purchase Commitments.
Company has no purchase contracts that, together with amounts on hand,
constitute more than twelve (12) months normal usage, or that are at an
excessive price. 

(d) Sales Commitments. Company
has no sales contracts that aggregate in excess of $500 (or its foreign currency
equivalent as of the date hereof) to any one customer or group of affiliated
customers. Company has no sales contracts, except those made in the ordinary
course of business at arm’s length, and no such contracts are for a sales price
that would result in a loss to the Company (after giving effect to full
amortization of overhead and selling, general and administrative
expenses). 

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(e) Contracts for Services.
Company has no contract with any officer, employee, agent, consultant or other
third party performing similar functions that is not cancelable by Company on
notice of no longer than thirty (30) calendar days without liability, penalty or
premium of any nature or kind whatsoever or under which Company could incur
obligations in excess of $500 (or its foreign currency equivalent as of the date
hereof). 

(f) Powers of Attorney.
Company has not given a power of attorney or proxy that is currently in effect
to any person or entity for any purpose whatsoever. 

(g) Collective Bargaining Agreements. Company has no collective bargaining contract. 

(h) Loan Agreements. Company
has no loan contract, promissory note, letter of credit, guarantee or other
evidence of indebtedness, as a signatory, guarantor or otherwise, in pursuant to
or in connection with the Company’s receipt or extension of credit for money
borrowed in excess of $5,000 in the aggregate. 

(i) Guarantees. Company has
not guaranteed the payment or performance of any person or entity, agreed to
indemnify any person or entity (except under Contracts entered into by Company
in the ordinary course of business) or to act as a surety, or otherwise agreed
to be contingently or secondarily liable for the obligations of any person or
entity. 

(j) Governmental Contracts.
Company has no contract with any governmental entity in connection with or
affecting its business. 

(k) Agreements Relating to Company Trade Rights. Company has no consulting, development, joint
development or other Contract relating to any of the Company Trade Rights or
other, nor does Company have any contract requiring Company to assign, license,
dispose, or otherwise transfer or grant interests in any interest in any Company
Trade Rights. 

(l) Restrictive Agreements.
Company has no contract that is so burdensome as to materially affect or impair
the operations of its business. Without limitation, Company has no contract in
connection with or affecting its business, assets or liabilities (i) requiring
Company to assign any interest in any Company Trade Rights, (ii) prohibiting or
restricting Company or any of its employees from competing in any business or
geographical area, or soliciting customers or employees, or otherwise
restricting it from carrying on any business anywhere in the world, (iii)
containing “most favored nation” or similar pricing provisions or (iv) relating
to the location of employees or a minimum number of employees to be employed.

(m) Sharing of Profits or Losses. Company has no contract involving a sharing of profits or losses by
Company with any other person or entity including any joint venture, partnership
or similar agreement. 

(n) Right of First Refusal.
Company has no contract granting to any person or entity a first refusal, a
first offer or similar preferential right to purchase or acquire any right,
asset or property of Company or the units or other securities of Company.

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(o) Acquisition. Company has
no contract involving the acquisition by Company of any business enterprise
whether via stock or asset purchase or otherwise. 

(p) Employment. Company has no
contract for the employment by Company of any individual on a full-time,
part-time, consulting or other basis. 

(q) Indemnification. Company
has no contract under which Company has agreed to indemnify any third party in
any manner. 

(r) Settlement. Company has no
contract which is a settlement, conciliation or similar agreement with any
governmental entity or which, after the date hereof, will require payment of
consideration to any person or entity. 

(s) Other
Material Contracts. Company has no other contract of any nature involving
consideration or  other expenditure in excess of $500 (or its foreign currency equivalent as of  the date hereof), or
involving performance over a period of more than twelve  (12) months, or that is otherwise individually material to the
operations of its  business. 

2.13 No
Default. Company is not in
default in any material respect under any contract, nor has any event or
omission occurred that, through the passage of time or the giving of notice, or
both, would constitute a default in any material respect thereunder or cause the
acceleration of any of Company’s obligations thereunder or result in the
creation of any Lien on any Company assets. No counterparty is in default in any
material respect under any such contract to which Company is a party, nor has
any event or omission occurred that, through the passage of time or the giving
of notice, or both, would constitute a default in any material respect
thereunder, or give rise to an automatic termination, or the right of
discretionary termination thereof.

2.14 Labor Matters. There are
no pending charges or claims against the Company with respect to its employees
before any governmental entity, including the EEOC, responsible for the
prevention of unlawful employment practices, nor have there been such charges or
claims within the past three (3) years. The Company is currently in compliance
with all applicable laws relating to employees, including those related to
wages, hours, eligibility for and payment of overtime compensation, worker
classification (including the proper classification of independent contractors
and consultants), tax withholding, contributions to governmental entity
compensation or benefit funds or programs, collective bargaining, unemployment
insurance, workers’ compensation, immigration, harassment and discrimination in
employment, disability rights and benefits, affirmative action, plant closing
and mass layoff issues or requiring notice under the WARN Act or similar state
law, and occupational safety and health laws. 

2.15 Employee Benefit Plans.

(a) Disclosure.
Schedule 2.15(a) sets forth a true, correct and complete list of
all plans, programs, contracts, policies and practices which provide benefits to
any current or former employee, director or independent contractor who performs
or performed services primarily for the benefit of the Business, or beneficiary
or dependent thereof, or to which Company contributes or is obligated to
contribute, or under which Company or any ERISA Affiliate had, has or may have
any liability, including any pension, thrift, savings, profit sharing,
retirement, bonus, incentive, health, dental, death, accident, disability, stock
purchase, stock option, stock appreciation, stock bonus, executive or deferred
compensation, hospitalization, “parachute,” severance, vacation, sick leave,
fringe or welfare benefits, any employment or consulting Contracts, “golden
parachutes,” collective bargaining agreements, “employee benefit plans” (as
defined in Section 3(3) of
ERISA), employee manuals, and written or binding oral statements of policies,
practices or understandings relating to employment (collectively, the
“Employee Plans or
Agreements”). No Employee Plan or
Agreement is or has ever been a “multiemployer plan” (as defined in Section 4001
of ERISA) or subject to Title IV of ERISA, and neither Company nor any ERISA
Affiliate has ever contributed nor been obligated to contribute to any such
arrangement. 

12

(b) Delivery of Documents.
Company and Members have delivered to Eagle true, correct and complete copies of
the following information with respect to each Employee Plan or Agreement:

(i) the
Employee Plan or Agreement, including all amendments, or if there is not a
written plan document, a written summary of the terms and conditions of the
Employee Plan or Agreement; 

(ii) the
annual report, if required under ERISA, with respect to the Employee Plan or
Agreement for each of the previous three (3) plan years; 

(iii) the
summary plan description, together with each summary of material modifications,
if required under ERISA, with respect to the Employee Plan or Agreement and all
material employee communications relating to the Employee Plan or Agreement;

(iv) if the
Employee Plan or Agreement is funded through insurance or a trust, insurance or
any third party funding vehicle, the insurance policy or contract of the trust
or other funding agreement and the latest financial statements thereof;

(v) the
nondiscrimination testing reports with respect to the Employee Plan or
Agreement for each of the previous three (3) plan years; and 

(vi) the
most recent opinion or determination letter received from the IRS with respect
to the Employee Plan or Agreement that is intended to be qualified under Section
401 of the Code. 

With respect to each
Employee Plan or Agreement for which an annual report has been filed and
delivered to Eagle pursuant to subclause (ii), no
material adverse change has occurred with respect to the matters covered by the
latest such annual report since the date thereof. 

(c) Prohibited Transactions.
There have been no “prohibited transactions” (within the meaning of Section 406
or 407 of ERISA or Section 4975 of the Code) for which a statutory or
administrative exemption does not exist with respect to any Employee Plan or
Agreement, and no event or omission has occurred in connection with which
Company or any of its assets or any Employee Plan or Agreement, directly or
indirectly, could be subject to any Liability under ERISA, the Code or any other
law or Order applicable to any Employee Plan or Agreement, or under any
contract, law or Order pursuant to which Company has agreed or is required to
indemnify any person or entity against any liability incurred under any such
contract, law or Order. 

(d) Full Funding. The funds
available under each Employee Plan or Agreement that is intended to be a funded
plan exceed the amounts required to be paid, or that would be required to be
paid if such Employee Plan or Agreement were terminated, on account of rights
vested or accrued as of the Closing Date (using the actuarial methods and
assumptions then used by Company’s actuaries in connection with the funding of
such Employee Plan or Agreement). 

13

(e) Controlled Group; Affiliated Service Group; Leased
Employees. Company is not and
never has been a member of a controlled group of corporations (as defined in
Section 414(b) of the Code), under common control with any unincorporated trade
or business (as determined under Section 414(c) of the Code) or a member of an
“affiliated service group” (within the meaning of Section 414(m) of the Code).
There are not and never have been any “leased employees” (within the meaning of
Section 414(n) of the Code) who perform services primarily for the benefit of
the Business, and no individuals are expected to become such leased employees
with the passage of time. 

(f) Payments and Compliance.
With respect to each Employee Plan or Agreement, (i) all payments due from the
Employee Plan or Agreement (or from Company with respect to each such Employee
Plan or Agreement) have been made, and all amounts properly accrued to date as
Liabilities that have not been paid have been properly recorded on the books of
Company; (ii) Company has complied with, and the Employee Plan or Agreement has
conformed to, all applicable laws and Orders; (iii) all reports and information
relating to the Employee Plan or Agreement required to be filed with any
governmental entity or provided to participants or their beneficiaries have been
timely filed or disclosed and, when filed or disclosed, were true, correct and
complete; (iv) each Employee Plan or Agreement that is intended to qualify under
Section 401 of the Code has received a favorable determination letter from the
IRS that addresses all currently applicable qualification requirements with
respect to such plan, its related trust has been determined to be exempt from
taxation under Section 501(a) of the Code, and nothing has occurred since the
date of such letter that has or is reasonably likely to adversely affect such
qualification or exemption; (v) there is no litigation pending (other than
routine claims for benefits being reviewed pursuant to the plan’s internal claim
and approval process) or, to Company’s knowledge, threatened with respect to the
Employee Plan or Agreement or against the assets of the Employee Plan or
Agreement; and (vi) the Employee Plan or Agreement is not a plan that is
established and maintained outside the United States primarily for the benefit
of individuals substantially all of whom are nonresident aliens. 

(g) Post-Retirement Benefits.
Except as expressly required under Sections 601 through 609 of ERISA, no
Employee Plan or Agreement provides benefits, including death or medical
benefits (whether or not insured), with respect to current or former employees,
directors or independent contractors of Company beyond their retirement or other
termination of service, and Company has no obligation to provide or contribute
toward the cost of such coverage or benefits. 

(h) No
Triggering of Obligations. The
consummation of the transactions contemplated hereby will not (i) entitle any
current or former employee, director or independent contractor to severance pay,
unemployment compensation or any other payment, except as expressly provided in
this Agreement, (ii) accelerate the time of payment or vesting or increase the
amount of compensation due to any current or former employee, director or
independent contractor or (iii) result in any prohibited transaction described
in Section 406 of ERISA or Section 4975 of the Code for which an exemption is
not available; or (iv) result in or satisfy a condition to the payment of
compensation that would, in combination with any other payment, result in an
“excess parachute payment” within the meaning of Code section 280G(b)(1).

14 

(i) Future Commitments.
Company has no announced plan or legally binding commitment to create any
additional Employee Plans or Agreements or to amend or modify any existing
Employee Plans or Agreements. 

(j) Nonqualified Deferred Compensation. Each Employee Plan or Agreement that is or has ever been a
“nonqualified deferred compensation plan,” within the meaning of Section 409A of
the Code and the applicable Treasury Regulations and other official guidance:
(i) at all times since December 31, 2004, has satisfied the requirements of
Section 409A of the Code and such Treasury Regulations and other official
guidance and has been operated in accordance with such requirements; or (ii) has
not been “materially modified,” within the meaning of Section 409A of the Code
and such Treasury Regulations and other guidance, at any time since October
3, 2004 with respect to
deferred compensation earned and vested before December 31, 2004, under any such
Employee Benefit Plan existing before October 3, 2004. No participant in such an
Employee Plan or Agreement will incur any taxes on any benefit under such
Employee Plan or Agreement before the date as of which such benefit is actually
paid to such participant. Each Employee Plan or Agreement that is subject to
Section 409A of the Code has been established or amended in form to comply with
the final Treasury Regulations issued under Section 409A of the Code.

2.16 Employees; Compensation.
Schedule 2.16 contains a true, correct and complete list of (a)
all employees of Company (including any employee who is on a leave of absence or
on layoff status subject to recall), (b) each such employee’s title, hire date,
duties and location of employment, (c) each such employee’s employment status
(i.e., whether employee is actively employed or not actively at work due to
illness, short-term disability, sick leave, authorized leave of absence, layoff
for lack of work or service in the Armed Forces of the United States or for any
other reason), (d) each such employee’s annual rate of compensation, including
annualized base wages, vacation or paid time off accrual amounts, bonuses,
incentives, commissions and any other cash compensation forms and (e) each such
employee’s total cash compensation paid in 2015 and projected total cash
compensation for 2016. For purposes of subclause (d), in the case
of salaried employees, such list identifies the current annual rate of
compensation for each such employee, and in the case of hourly or commission
employees, such list identifies the current hourly or commission rate for each
such employee. The current, former and retired employees of Company have been,
and currently are, properly classified under the Fair Labor Standards Act of
1938, as amended, and under any other similar law. Except as set forth on
Schedule 2.16, none of such employees is a party to a written
employment agreement or contract with the Company and each is employed “at
will.” Schedule
2.16 also contains a true,
correct and complete list by location in the United States of the number of
former employees of Company whose employment was terminated within the twelve
(12) month period preceding the date hereof together with a reason for each such
termination.

2.17 Trade Rights.
Schedule
2.17(a)(i) contains a true,
correct and complete list of all Company Trade Rights of the Company that are
registered, patented or for which applications are pending (“Company Registered
Trade Rights”), including: (i) the registration, patent or application number;
(ii) the title or description; (iii) the registration, issue or application
date; and (iv) the jurisdiction. The Company owns all right, title and interest
in, to and under the Company Trade Rights, including the Company Registered
Trade Rights, free and clear of all Liens. No current or former officer,
employee or independent contractor of the Company has any right, title or
interest of any nature whatsoever in or to the Company Trade Rights. All Company
Registered Trade Rights in Schedule 2.17(a)(i) are in good standing, and those shown
as registered, patented or applied for have been properly registered, patented
or applied for in all jurisdictions where reasonably beneficial to the Company,
as applicable, and in all jurisdictions where required for the Company to
conduct its business as it is currently conducted, all of which are identified
in Schedule 2.17(a)(i). All registrations and applications have been properly made and
filed, and all annuity, maintenance, renewal and other fees relating to such
registrations or applications are current, with no such fees falling due or
being payable within sixty (60) days of the Closing Date. To the Company’s
knowledge, there is no basis for invalidating or terminating, or allegation or
claim to invalidate or terminate, any Company Trade Right. Schedule 2.17(a)(ii)
contains a true, correct and complete list of all Company Registered Trade
Rights that have lapsed or been abandoned since December 31, 2012.

15

(a) The
Company has not granted any license of any of the Company Trade Rights
(“Out-Licenses”). 

(b) To
conduct its business as it is currently conducted, the Company does not require
any Trade Rights that it does not already own or have a valid and enforceable
license to use. To the Company’s knowledge it is not infringing nor has the
Company infringed any Trade Rights of any other entity and, to the Company’s
knowledge, there is no valid basis upon which a claim for infringement could be
made. The Company has not been notified that it is infringing or has infringed
any Trade Rights of any entity. To the Company’s knowledge, no pending patent
application or trademark or copyright registration application belonging to any
entity would be infringed by the Company if a patent that included such claims
were granted on such pending application or trademark or copyright issued on
such pending registration application.

(c) No
methods, processes, procedures, apparatus or equipment, used or held for use by
the Company, use or include any proprietary or confidential information or any
trade secrets misappropriated from any entity. The Company does not have any
trade secret, proprietary or confidential information that: (i) is owned or
claimed by any entity; or (ii) is not rightfully in the possession of the
Company. The Company has complied in all material respects with all Contracts
governing the disclosure and use of proprietary or confidential information.

(d) The
Company has maintained the confidentiality of all Company Trade Rights to the
extent necessary to maintain all proprietary rights therein. All independent
contractors and current, former or retired employees who were involved in the
creation of Company Trade Rights executed assignments that assigned ownership of
such Trade Rights to the Company exclusively. All independent contractors and
current, former or retired employees who had access to the Company Trade Rights
executed confidentiality agreements that required such contractors and employees
to not disclose such Trade Rights or use them other than for the sole benefit of
the Company. 

(e) The
consummation of the transactions contemplated hereby will not alter or impair
any of the Company Trade Rights. 

2.18 Certain Relationships to Company. 

(a) Contracts with Affiliates.
All contracts between Company and any Affiliate of Company are described in
Schedule 2.18(a). “Affiliate” has the meaning ascribed to such term in Rule
12b-2 promulgated under the Securities Exchange Act of 1934, as amended, by the
Securities and Exchange Commission, as in effect on the date hereof. 

(b) No
Adverse Interests. Other than as
described in Schedule 2.18(b), no Affiliate of Company has any direct or
indirect interest in, or other business relationship or arrangement with: (i)
any person or entity that does business with Company or is competitive with the
Company; or (ii) any property, asset or right that is used by Company in the
operations of its business.

16

(c) Obligations Involving Affiliates. All obligations of any Affiliate of Company to Company, and all
obligations of Company to any Affiliate of Company, are described in
Schedule 2.18(c). 

2.19 Assets and Services Necessary to Business. Except for the property, assets and rights set
forth in Schedule
2.19, there is no other
non-de-minimis property, assets and rights, tangible and
intangible (including Trade Rights), that Company used, held for use or acquired
for use in its business during the six (6) month period immediately preceding
the date hereof, and the scheduled assets will comprise all non-de-minimis property, assets and rights, tangible and intangible (including Trade
Rights), that Company used, held for use or acquired for use in its business
from the date hereof until and through the Closing Date. Schedule 2.19 contains a true, correct and complete list of all
services provided to Company by employees of Company or any of Company’s
Affiliates or by a third party under a contract with Company. 

2.20 No
Brokers or Finders. Neither
Company nor any of its Members, directors, officers, employees or agents have
retained, employed or used any broker or finder in connection with the
transactions provided for herein or the negotiation thereof, nor are any of them
responsible for the payment of any broker’s or finder’s fees.

3. Representations and Warranties of the Lender.

Eagle makes the following
representations and warranties to Company, each of which is true and correct on
the date hereof and shall survive the consummation of the transactions
contemplated hereby. 

3.1 Corporate. 

(a) Organization. Eagle is a
limited liability company duly organized, validly existing and in good standing
under the laws of the State of New York and is qualified or registered to do
business in each jurisdiction in which the nature of its business or operations
would require such qualification or registration, except where the failure to be
so qualified or registered would not cause a material adverse effect on the
terms of this Agreement. 

(b) Corporate Power. Eagle has
all requisite corporate power and authority to execute and deliver this
Agreement and the other documents and instruments to be executed and delivered
by Eagle pursuant hereto and to carry out the transactions contemplated hereby
and thereby. 

3.2 Authority. The execution
and delivery of this Agreement and the other documents and instruments to be
executed and delivered by Eagle pursuant hereto and the consummation of the
transactions contemplated hereby and thereby have been duly authorized by Eagle.
No other or further corporate act or proceeding on the part of Eagle or its
shareholders is necessary to authorize this Agreement or the other documents and
instruments to be executed and delivered by Eagle pursuant hereto or the
consummation of the transactions contemplated hereby and thereby. This Agreement
constitutes, and when executed and delivered, the other documents and
instruments to be executed and delivered by Eagle pursuant hereto will
constitute, valid and binding agreements of Eagle, as the case may be,
enforceable in accordance with their respective terms, except as such may be
limited by bankruptcy, insolvency, reorganization or other laws affecting
creditors’ rights generally, and by general equitable principles. The
individual(s) executing this Agreement on behalf of Eagle have the full right,
power and authority to execute and deliver this Agreement, and upon execution,
no further action will be needed to make this Agreement valid and binding upon,
and enforceable against, Eagle.

17

3.3 No
Brokers or Finders. Neither Eagle
nor any of its shareholders, directors, officers, employees or agents have
retained, employed or used any broker or finder in connection with the
transactions provided for herein or in connection with the negotiation thereof,
nor are any of them responsible for the payment of any broker’s or finder’s
fees. 

3.4 No
Conflicts. The execution,
delivery and performance of this Agreement by Eagle and the consummation of the
transactions contemplated herein do not and will not (a) require Eagle to obtain
the consent or approval of, or make any filing with, any person or public
authority, except for consents and approvals already obtained or to be obtained
prior to Closing and notices or filings already made or to be made prior to
Closing, (b) violate any law, or (c) constitute or result in the breach of any
provision of, or constitute a default under, any agreement, indenture or other
instrument to which Eagle is a party or by which it or its assets may be bound,
except where such violation, breach or default would not cause a material
adverse effect to Eagle. 

3.5 Litigation. There is no
litigation, proceeding (arbitral or otherwise), injunction, claim, action, suit,
or order of any nature pending, or, to knowledge of Eagle, threatened by or
against Eagle, its directors, officers or employees that challenges, or may have
the effect of preventing, delaying, making illegal, or otherwise interfering
with the Facility by Eagle as outlined herein. 

4. Conditions
of Lender’s Obligations at Closing. The obligations of Lender under Section
1.1 of this Agreement are subject to the  fulfillment on or before Closing of each of the following conditions. Each of
the following conditions may only be waived by Lender in writing. 

4.1 Representations
and Warranties. The representations and warranties of the Company contained in
Section 2  shall be true on and as of Closing with the same effect as though such  representations and warranties had been
made on and as of the date of such  Closing. 

4.2 Performance. The Company
shall have performed and complied with all agreements, obligations and
conditions contained in this Agreement that are required to be performed or
complied with by it on or before Closing. 

4.3 Compliance Certificate.
The President, CEO or other executive officer of the Company shall deliver to
each Eagle at Closing a certificate certifying that the conditions specified in
Sections 4.1, 4.2, 4.4, 4.5, 4.6, 4.7, 4.8, 4.9, 4.10, 4.11,4.12) have been
fulfilled. 

4.4 Secretary’s Certificates.
Eagle shall have received a certificate from the Company, dated as of the
Closing and signed by the Secretary or an Assistant Secretary of the Company,
certifying that the attached copies of the Articles, Bylaws and resolutions of
the Board of Directors of the Company approving this Agreement with relevant
Certificate of Designation, any other ancillary agreements, and the transactions
contemplated thereby, are all true, complete and correct and remain unamended
and in full force and effect. 

4.5 Securities Laws Compliance.

The option granted to
Lender of conversion of the Series A Preferred shall be exempt from
qualification or registration under the applicable Federal and state securities
laws. 

4.6 Regulatory Compliance. All
of the regulatory filings, and compliance with all statutes, regulations,
guidelines, and other applicable laws and all other necessary or required
consents, permits and approvals shall have been obtained as of Closing.

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4.7 Proceedings and Documents.
All corporate and other proceedings in connection with the transactions
contemplated at the Closing and all documents incident thereto shall be
reasonably satisfactory in form and substance to the Lender’s special counsel,
if any, which shall have received all such counterpart original and certified or
other copies of such documents as it may reasonably request. 

4.8 Articles
of Incorporation.  The Articles has been duly adopted by the Company and
filed with the Nevada  Secretary of State and has not been amended or repealed as of the Closing.  Article V of the
Articles of the Company provides that the authorized number of  directors of the Company may inclusively range between nine
(9) and two (2), and  the Preferred Stock may vote for in relation to such directors under the terms of  the Series A Preferred.
Article XVI of the Articles provides that the Articles  shall not be amended except as provided in the Bylaws. 

4.9 Performance of Covenants.
The Company shall have performed all agreements and covenants required by this
Agreement to be performed prior to the Closing. 

4.10 Due
Diligence. Eagle shall have
completed its due diligence investigation of the Company as of Closing in a
manner satisfactory to Eagle. This provision shall not in any way limit or
qualify the representations and warranties of the Company in this Agreement.

4.11 Material Adverse Change.
As of the Closing, no material and adverse change in the business, operations,
assets and financial condition of the Company shall have occurred and be
continuing and no event or circumstance shall have occurred which could
reasonably be expected to result in any such material and adverse change.

4.12 Qualifications. All
authorizations, approvals or permits, if any, of any governmental authority or
regulatory body of the United States or of any state that are required in
connection with the lawful issuance of the Series A Preferred pursuant to this
Agreement shall be duly obtained and effective as of such Closing. 

5. Default. 

5.1 Events of Default. Any of the following events referred to in any of clauses (a) through
(i) inclusive of this section 5.1 shall constitute an “Event of Default”:

(a) Non-Payment. Company fails to pay (i) when and as required to be paid herein, any
amount of principal of the loan, or (ii) within five (5) Business Days after the same becomes due, any
interest on the loan or any other amount payable hereunder; or

(b) Other Defaults. Company fails to perform or observe any other covenant or agreement
(not specified in Section 5.1 above) contained in this or any related document on its part to be performed
or observed and such failure continues for thirty (30) days after receipt by the Company of written notice
thereof by the Lender; or

(c) Representations and Warranties. Any representation, warranty, certification or statement
of fact made or deemed made by or on behalf of the Company herein or in any document required to be
delivered in connection herewith shall be incorrect or misleading in any material respect when made or
deemed made; or

19

(d) Cross-Default. Company or any affiliates (A) fails to make any payment beyond the
applicable grace period with respect thereto, if any (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) in respect of any indebtedness (other than
indebtedness hereunder), or (B) fails to observe or perform any other agreement or condition relating
to any such indebtedness, or any other event occurs, the effect of which default or other event is to
cause, or to permit the holder or holders of such indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such
indebtedness to become due or to be repurchased, prepaid, defeased or redeemed (automatically or
otherwise), or an offer to repurchase, prepay, defease or redeem such indebtedness to be made, prior to
its stated maturity; provided that this clause (d)(B) shall not apply to secured indebtedness that becomes
due as a result of the voluntary sale or transfer of the property or assets securing such indebtedness, if
such sale or transfer is permitted hereunder and under the documents providing for such indebtedness;
provided further that such failure is unremedied and is not waived by the holders of such
indebtedness; or

(e) Insolvency Proceedings, Etc. Company institutes or consents to the institution of any
proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies
for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator,
rehabilitator, administrator, administrative receiver or similar officer for it or for all or any material part
of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator, administrator,
administrative receiver or similar officer is appointed without the application or consent of such Person
and the appointment continues undischarged or unstayed for sixty (60) calendar days; or any proceeding
under any Debtor Relief Law relating to any such person or to all or any material part of its property is
instituted without the consent of such person and continues undismissed or unstayed for sixty (60)
calendar days; or an order for relief is entered in any such proceeding; or

(f) Inability to Pay Debts; Attachment. (i) Company or any of its affiliates becomes unable
or admits in writing its inability or fails generally to pay its debts in excess of $50,000 as they become
due; or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all
or any material part of the Company’s property, taken as a whole, and is not released, vacated or fully
bonded within sixty (60) days after its issue or levy; or

(g) Judgments. There is entered against Company a final judgment or order for the payment
of money in an aggregate amount greater than $50,000 (to the extent not covered by independent thirdparty
insurance as to which the insurer has been notified of such judgment or order and has not denied or
failed to acknowledge coverage thereof) and such judgment or order shall not have been satisfied,
vacated, discharged or stayed or bonded pending an appeal for a period of sixty (60) consecutive days; or

(h) Invalidity of Loan Documents. Any material provision of this Agreement at any time
after its execution and delivery and for any reason other than as expressly permitted hereunder or as a
result of acts or omissions by the Lender or the satisfaction in full of all obligations, ceases to be in full
force and effect; or Company contests in writing the validity or enforceability of any provision of this
Agreement; or Company denies in writing that it has any or further liability or obligation under this
Agreement, or purports in writing to revoke or rescind this Agreement; or

(i) Change of Control. There occurs any Change of Control as defined in the Option
Agreement.

5.2 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Lender shall have the right to exercise the Option pursuant to the terms of the Option Agreement.

20

6. Miscellaneous. 

6.1 Entire Agreement. This
Agreement and the documents referred to herein constitute the entire agreement
among the parties and no party shall be liable or bound to any other party in
any manner by any warranties, representations or covenants except as
specifically set forth herein or therein. 

6.2 Survival of Warranties and Limited Liability. The warranties, representations and covenants of
the Company and Eagle contained in or made pursuant to this Agreement shall
survive the execution and delivery of this Agreement and the Closing.

6.3 Successors and Assigns.
Except as otherwise provided herein, the terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors and
assigns of the parties (including permitted transferees of any shares of Series
A Preferred sold hereunder or any Common Stock issued upon conversion thereof).
Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns
any rights, remedies, obligations or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement. The Company hereby
acknowledges and agrees that Eagle may assign any right or rights that Eagle may
have by reason of this Agreement to one or more Affiliates of Eagle. 

6.4 Governing Law. This
Agreement shall be governed by and construed under the laws of the State of New
York as applied to agreements among New York residents entered into and to be
performed entirely within New York. 

6.5 Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument. 

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

6.7 Rules of Construction. As
used herein, the masculine, feminine and neuter gender, and the singular or
plural number, shall each be deemed to include the others whenever the context
so indicates; unless the context otherwise requires a term has the meaning
assigned to it; “or” is not exclusive; provisions apply to successive events and
transactions; “including” means “including, without limitation,”; and “herein,”
“hereof,” “hereunder” and other words of similar import refer to this Agreement
as a whole and not to any particular Section or other subdivision. 

6.8 Aggregation of Holdings.
All Series A Preferred held or acquired by Affiliates shall be aggregated
together for the purpose of determining the availability of any rights under
this Agreement. 

6.9 Notices. Unless otherwise
provided, any notice required or permitted under this Agreement shall be given
in writing and shall be deemed effectively given (a) upon personal delivery to
the party to be notified by hand or professional courier service, (b) one (1)
day after confirmed transmission by facsimile or deposit with a
nationally-recognized courier service for overnight delivery, or (c) five (5)
days after deposit with the post office, by registered or certified mail,
postage prepaid and addressed to the party to be notified at the address
indicated for such party on the signature page hereof, or at such other address
as such party may designate by ten (10) days advance written notice to the other
parties. 

21

6.10 Finders’ Fees. Each party
represents that it neither is nor will be obligated for any finders’ fee or
commission in connection with this transaction notwithstanding the Facility Fee
described in Section 1.1. Eagle agrees to indemnify and to hold harmless the
Company from any liability for any commission or compensation in the nature of a
finder’s fee (and the costs and expenses of defending against such liability or
asserted liability) for which Eagle or any of its officers, employees or
representatives is responsible. The Company agrees to indemnify and hold
harmless Eagle from any liability for any commission or compensation in the
nature of a finder’s fee (and the costs and expenses of defending against such
liability or asserted liability) for which the Company or any of its officers,
employees or representatives is responsible. 

6.11 Expenses. Irrespective of
whether the Closing is affected, the Company shall pay all costs and expenses
that it incurs with respect to the negotiation, execution, delivery and
performance of this Agreement. 

6.12 Attorneys’ Fees. If any
action at law or in equity is necessary to enforce or interpret the terms of
this Agreement or the Certificate of Designation, the prevailing party shall be
entitled to reasonable attorneys’ fees, costs and disbursements in addition to
any other relief to which such party may be entitled. 

6.13 Amendments and Waivers.
Any term of this Agreement may be amended and the observance of any term of this
Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the
undersigned parties. Any amendment or waiver effected in accordance with this
paragraph shall be binding upon each holder of Loans under the Facility.

6.14 Severability. If one or
more provisions of this Agreement are held to be unenforceable under applicable
law, such provision shall be excluded from this Agreement and the balance of the
Agreement shall be interpreted as if such provision were so excluded and shall
be enforceable in accordance with its terms. 

6.15 Exculpation of Lender

Lender acknowledges that it
is not relying upon any person, firm or corporation, other than the Company and
its officers and directors, in providing this credit to the Company. Lender
agrees that neither Lender nor the respective controlling persons, officers,
directors, partners, agents or employees of Lender shall be liable for any
action heretofore or hereafter taken or omitted to be taken by any of them in
connection with this Agreement or the other transactions con Series A Preferred
(and Common Stock issued upon conversion thereof). 

[The remainder of this page intentionally left
blank] 

22

IN WITNESS WHEREOF, the
parties have executed this Convertible Credit Agreement as of the date first
above written. 

BAKKEN RESOURCES,INC., 

a
Nevada corporation 

	
Name: 	Dan Anderson

	
Title: 	Chief Financial Officer

	Address:	     	1425 Birch
      Ave., Suite A
	 		Helena,
      MT 59601
	 
	Phone:		(406)
      442-9444

EAGLE PRIVATE EQUITY, LLC 

a
New York limited liability company 

	
Name: 	Carl George Eagle

	
Title: 	President

	Address:	     	 
	 		 
	 
	Phone:		

SIGNATURE PAGE 

THIS OPTION AND THE
SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH
ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT. 

OPTION TO CONVERT OR PUT
LOANS 
of 
BAKKEN RESOURCES, INC.

Void after _____ ___,20__ 

This OPTION is issued to
EAGLE PRIVATE EQUITY, LLC, a New York limited liability company or its
registered assigns (“Holder”) by BAKKEN RESOURCES, INC., a Nevada corporation
(the “Company”), on May 6, 2016 (the “Option Issue Date”). 

1. Purchase Shares.

(a) Option
to Convert. Holder  may make certain loans to the Company in accordance
with the terms of the  Convertible Loan Purchase Agreement, dated as of the date hereof, by and between  Holder and the
Company (the “Loan Agreement”). In the event that the Company  draws upon the Facility (as defined in the Loan
Agreement) and the occurrence of  a Triggering Event (as set forth in Exhibit
A hereto) (the  “Option Exercise Date”), Holder may elect to
convert all principal amounts of  loans made under the Facility into shares of the Company’s Series A Convertible
Preferred Stock (the “Shares”) in accordance with the Notice of Conversion set  forth in Exhibit
B hereto. Subject to the terms and conditions  hereinafter set forth,
the Holder is entitled, upon surrender of this Option at  the principal office of the Company (or at such other place as
the Company shall  notify the holder hereof in writing), to purchase from the Company such number  of Shares necessary to
convert such Loans into Shares, not to exceed one million  (1,000,000) fully paid and nonassessable Shares. The number of
Shares issuable  pursuant to this Section 1 (the “Shares”) shall be subject to adjustment  pursuant to Section 7
hereof. If exercised by Holder, this Option to Convert  pursuant to this Section 1(a) shall be exercised only in whole, and
not in part.  Any option to convert loans under the Facility to Shares under this Section 1(a)  shall be accompanied by
delivery by Holder of a signed subscription agreement  for Shares in form and substance reasonably acceptable to the Company
containing customary provisions for the subscription of equity by an accredited investor.  

(b) Put Option. In
the event of a Triggering Event, Holder may put loans under the Facility to the
Company, up to the amount remaining under the Facility. Any such loans that are
put to the Company shall be subject to the terms of the Loan Agreement and the
documented contemplated by the Loan Agreement. Loans that are part of the
Facility that are put to the Company shall be subject to Holders rights under
Section 1(a) hereof. 

2. Exercise Price. The
purchase price for the Shares shall initially be $1.00 per Share, as adjusted
from time to time pursuant to Section 7 hereof (the “Exercise Price”).

3. Exercise Period. This
Option shall be exercisable, in whole or in part, during the term commencing on
the Option Exercise Date and ending upon the termination of the Facility.

4. Method of Exercise. While
this Option remains outstanding and exercisable in accordance with Section 3
above, the Holder may exercise, in whole and not in part, the purchase rights
evidenced hereby. Such exercise shall be effected by: 

(a) With
respect to any exercise pursuant to Section 1(a) hereof, the surrender of the
Option, together with a duly executed copy of the form of Notice of Conversion
attached hereto, to the Secretary of the Company at its principal offices, and
if amounts remain under the Facility, the reissuance of an option to Holder in
form and substance substantially similar to this Option for the amount remaining
in the Facility; 

(b) With
respect to any exercise pursuant to Section 1(b) hereof, notice to the Company
of the exercise by Holder of such put option as soon as reasonably practicable
and in any event not later than five (5) business days following the date of a
Triggering Event; and 

(c) the
payment to the Company of an amount equal to the aggregate Exercise Price for
the number of Shares being purchased (which payment shall be deemed to be made
by Holder as a result of the requisite conversion of loans made under the
Facility). 

5. Certificates for Shares.
Upon the exercise of the purchase/conversion rights evidenced by this Option
under Section 1(a), one or more certificates for the number of Shares so
purchased shall be issued as soon as practicable thereafter (with appropriate
restrictive legends, if applicable). 

6. Issuance of Shares. The
Company covenants that the Shares, when issued pursuant to the exercise of this
Option under Section 1(a), will be duly and validly issued, fully paid and
nonassessable and free from all taxes, liens, and charges with respect to the
issuance thereof. 

2

7. Adjustment of Exercise Price and Number of Shares. The number of and kind of securities purchasable
upon exercise of this Option under Section 1(a) and the Exercise Price shall be
subject to adjustment from time to time as follows: 

(a) Subdivisions, Combinations and Other Issuances. If the Company shall at any time prior to the
expiration of this Option subdivide its economic ownership interests, by
split-up or otherwise, or combine its economic ownership interests, or issue
additional economic ownership
interests as a dividend with respect to any economic ownership interests, the
number of Shares issuable on the exercise of this Option under Section 1(a)
shall forthwith be proportionately increased in the case of a subdivision or
equity dividend, or proportionately decreased in the case of a combination.
Appropriate adjustments shall also be made to the Exercise Price payable per
Share, but the aggregate Exercise Price payable for the total number of Shares
purchasable under this Option under Section 1(a) (as adjusted) shall remain the
same. Any adjustment under this Section 7(a) shall become effective at the close
of business on the date the subdivision or combination becomes effective, or as
of the record date of such dividend, or in the event that no record date is
fixed, upon the making of such dividend. 

(b) Reclassification, Reorganization and Consolidation. In case of any reclassification, capital
reorganization, or change in the economic ownership interests of the Company
(other than as a result of a subdivision, combination, or dividend provided for
in Section 7(a) above), then, as a condition of such reclassification,
reorganization, or change, lawful provision shall be made, and duly executed
documents evidencing the same from the Company or its successor shall be
delivered to the Holder, so that the Holder shall have the right at any time
prior to the expiration of this Option to purchase, at a total price equal to
that payable upon the exercise of this Option under Section 1(a), the kind and
amount of shares of stock and other securities and property receivable in
connection with such reclassification, reorganization, or change by a holder of
the same number of Shares as were purchasable by the Holder immediately prior to
such reclassification, reorganization, or change. In any such case appropriate
provisions shall be made with respect to the rights and interest of the Holder
so that the provisions hereof shall thereafter be applicable with respect to any
shares of stock or other securities and property deliverable upon exercise
hereof, and appropriate adjustments shall be made to the purchase price per
share payable hereunder, provided the aggregate purchase price shall remain the
same. 

(c) Notice of Adjustment. When
any adjustment is required to be made in the number or kind of securities
purchasable upon exercise of the Option under Section 1(a), or in the Exercise
Price, the Company shall promptly notify the holder of such event and of the
number of economic ownership interests or other securities or property
thereafter purchasable upon exercise of this Option under Section 1(a).

8. No
Fractional Shares or Scrip. No
fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Option, but in lieu of such fractional shares the Company
shall make a cash payment therefor on the basis of the Exercise Price then in
effect.

9. No
Stockholder Rights. Prior to
exercise of this Option under Section 1(a), the Holder shall not be entitled to
any rights of a holder of economic ownership interests with respect to the
Shares, including (without limitation) the right to vote such Shares, receive
dividends or other distributions thereon, exercise preemptive rights or be
notified of meetings of holders of economic ownership interests, and such holder
shall not be entitled to any notice or other communication concerning the
business or affairs of the Company. However, nothing in this Section 9 shall
limit the right of the Holder to be provided the Notices required under this
Option. 

3

10. Transfers of Option. This
Option and all rights hereunder are not transferable by the Holder to any other
person or entity, without the prior written consent of the Company. The transfer
shall be recorded on the books of the Company upon the surrender of this Option,
properly endorsed, to the Company at its principal offices, and the payment to
the Company of all transfer taxes and other governmental charges imposed on such
transfer. In the event of a partial transfer, the Company shall issue to the
holders one or more appropriate new options. 

11. Successors and Assigns.
The terms and provisions of this Option shall inure to the benefit of, and be
binding upon, the Company and the Holder hereof and their respective successors
and assigns. 

12. Amendments and Waivers.
Any term of this Option may be amended and the observance of any term of this
Option may be waived (either generally or in a particular instance and either
retroactively or prospectively), with the written consent of the Company and the
Holder. 

13. Assumption of Option. If
at any time, while this Option, or any portion thereof, is outstanding and
unexpired there shall be (i) an acquisition of the Company by another entity by
means of a merger, consolidation, or other transaction or series of related
transactions resulting in the exchange of the outstanding economic ownership
interests such that holders of economic ownership interests of the Company prior
to such transaction own, directly or indirectly, less than 50% of the voting
power of the surviving entity, (ii) a sale or transfer of all or substantially
all of the Company’s assets to any other person, or (iii) a Triggering Event
(resulting in a successor entity), then, as a part of such acquisition and in
addition to the rights of Holder under Section 1 hereof, sale or transfer,
lawful provision shall be made so that the Holder shall thereafter be entitled
to receive upon exercise of this Option, during the period specified herein and
upon payment of the Exercise Price then in effect, the number of shares of stock
or other securities or property of the successor corporation resulting from such
acquisition, sale or transfer which a holder of the shares deliverable upon
exercise of this Option would have been entitled to receive in such acquisition,
sale or transfer if this Option had been exercised immediately before such
acquisition, sale or transfer, all subject to further adjustment as provided in
this Section 13; and, in any such case, appropriate adjustment (as determined by
the Company’s Board of Directors) shall be made in the application of the
provisions herein set forth with respect to the rights and interests thereafter
of the Holder to the end that the provisions set forth herein (including
provisions with respect to changes in and other adjustments of the number of
Shares the Holder is entitled to purchase) shall thereafter by applicable, as
nearly as possible, in relation to any shares of Shares or other securities or
other property thereafter deliverable upon the exercise of this
Option.

14. Notices. All notices
required under this Option shall be deemed to have been given or made for all
purposes (i) upon personal delivery, (ii) upon confirmation receipt that the
communication was successfully sent to the applicable number if sent by
facsimile; (iii) one day after being sent, when sent by professional overnight
courier service, or (iv)five days after posting when sent by registered or
certified mail. Notices to the Company shall be sent to the principal office of
the Company (or at such other place as the Company shall notify the Holder
hereof in writing). Notices to the Holder shall be sent to the address of the
Holder on the books of the Company (or at such other place as the Holder shall
notify the Company in writing). 

4

15. Attorneys’ Fees. If any
action of law or equity is necessary to enforce or interpret the terms of this
Option, the prevailing party shall be entitled to its reasonable attorneys’
fees, costs and disbursements in addition to any other relief to which it may be
entitled. 

16. Captions. The section and
subsection headings of this Option are inserted for convenience only and shall
not constitute a part of this Option in construing or interpreting any provision
hereof. 

17. Governing Law. This Option
shall be governed by the laws of the State of New York as applied to agreements
among New York residents made and to be performed entirely within the State of
New York. 

IN WITNESS WHEREOF, BAKKEN
RESOURCES, INC., has caused this Option to be executed by an officer thereunto
duly authorized. 

			 
	Name:	     	 
	Title:		 

5

EXHIBIT A 

TRIGGERING
EVENT 

			
      "Triggering Event"
      means the earliest to occur of
      

	 	 	 
	(a)	 	any transaction or series of related transactions whereby following such
transactions, the holders of the Company’s capital stock existing as of the date
immediately prior to such transactions cease to have the power, directly or
indirectly, to vote or direct the voting of securities having a majority of the
ordinary voting power for the election of directors;

	 	 	 
	(b)	 	any transaction or series of related transactions whereby following such
transactions, a majority of the members of the Company’s Board of Directors
existing prior to such transactions are either replaced or no longer constitute a
majority of the Company’s Board of Directors;

			 
	(c)	       	any transaction or
      series of related transactions resulting in or reasonably likely to result
      in the acquisition of “control shares” as defined and subject to Nevada
      Revised Statutes 78.378 et al., assuming for the purposes of this section
      that the Company is an “issuing corporation” as defined under such
      statutes;
	 	 	 
	(d)	 	any failure of the Company to materially satisfy its obligations under the
Loan Agreement, including the failure to pay any amounts to Holder when
due; or

	 	 	 
	(e)	 	the insolvency or threatened insolvency of the Company (as defined by the
earliest time when the Company determines that is does not have the ability to
pay debts when due) except that in the case of an involuntary bankruptcy
petition, such event shall not be a Triggering Event unless such involuntary
bankruptcy is not dismissed within 60 days of filing of such petition.

	 	 	 
	(f)	 	Notwithstanding the foregoing, a Triggering Event shall not be deemed to
occur, if following any initial public offering of the Company’s securities, any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, as amended, but excluding any
employee benefit plan of such person and its respective subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan), excluding the existing holders of the
Company capital stock prior to such initial public offering, shall become the
“beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under such Act),
directly or indirectly, of not more than thirty-five percent (35%) of the then
outstanding voting stock of the Company.

NOTICE OF
CONVERSION 

To: BAKKEN RESOURCES, INC.

The undersigned hereby
elects to purchase _________________  shares of Series A Convertible
Preferred shares (“Shares”) of BAKKEN RESOURCES, INC., pursuant to the terms of
the attached Option and payment of the Exercise Price per Share required under
such Option accompanies this notice.

The undersigned hereby
represents and warrants that the undersigned is acquiring such Shares for its
own account for investment purposes only, and not for resale or with a view to
distribution of such Shares or any part thereof. A copy of the Subscription
Agreement set forth in the Option, signed by Holder, is also attached.

OPTIONHOLDER: 

 

		 		         
		 
	 			 	 	
					 	 
					By:	 
		 				[NAME]
						 
	 	 	Address:			 
						 
	Date:					
		 				
		 				
	Name in which Shares should be
      registered:

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