Document:

Exhibit
10.1

 

 

 

 

 

STOCK
PURCHASE AGREEMENT

 

dated
as of August 27, 2020

 

among

 

1847
CABINETS INC.,

 

KYLE’S
CUSTOM WOOD SHOP, INC.,

 

1847
HOLDINGS LLC 

 

AND

 

THE
OTHER PARTIES SET FORTH ON EXHIBIT A HERETO

 

 

 

 

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE
    I DEFINITIONS	1
	1.1	Certain Definitions.	1
	 	 	 
	ARTICLE
    II PURCHASE AND SALE OF THE SHARES	5
	2.1	Purchase and Sale of
    the Shares.	4
	2.2	Adjustments to Purchase
    Price.	6
	2.3	Closing.	7
	2.4	Transactions to be
    Effected at the Closing.	8
	 	 	 
	ARTICLE
    III REPRESENTATIONS AND WARRANTIES OF THE SELLERS	8
	3.1	Authority and Enforceability.	8
	3.2	Noncontravention.	8
	3.3	The Shares.	9 
	3.4	Brokers’ Fees.	9
	 	 	 
	ARTICLE
    IV REPRESENTATIONS AND WARRANTIES CONCERNING THE COMPANY	9
	4.1	Organization, Qualification
    and Corporate Power; Authority and Enforceability.	9
	4.2	Subsidiaries.	10
	4.3	Capitalization.	10
	4.4	Noncontravention.	11
	4.5	Financial Statements.	11
	4.6	Taxes.	12
	4.7	Compliance with Laws
    and Orders; Permits.	12
	4.9	Tangible Personal Assets.	12
	4.10	Real Property.	13
	4.11	Intellectual Property.	14
	4.12	Absence of Certain
    Changes or Events.	15
	4.13	Contracts.	16
	4.14	Litigation.	17
	4.15	Employee Benefits.	17
	4.16	Labor and Employment
    Matters.	17
	4.17	Environmental.	18
	4.18	Insurance.	18
	4.19	Inventory.	18
	4.20	Notes and Accounts
    Receivable.	18
	4.21	Powers of Attorney.	18
	4.22	Product Warranty.	18
	4.23	Product Liability.	19
	4.24	Brokers’ Fees.	19
	4.25	Certain Business Relationships
    with the Company.	19
	4.26	Disclosure.	19
	 	 	
	ARTICLE
    V REPRESENTATIONS AND WARRANTIES OF THE BUYER	19
	5.1	Organization.	19
	5.2	Authorization.	19
	5.3	Noncontravention.	20
	 	 	 
	ARTICLE
    VI REPRESENTATIONS AND WARRANTIES OF THE BUYER PARENT	20
	6.1	Organization.	20
	6.2	Authorization.	20
	6.3	Noncontravention	21
	6.4	Capitalization.	21
	6.5	Brokers’ Fees.	21

 

    i

     

    

 

TABLE OF CONTENTS

 

	 	Page
	ARTICLE
    VII COVENANTS	21
	7.1	Consents.	21
	7.2	Operation
    of the Company’s Business.	21
	7.3	Access.	22
	7.4	Transfer
    of Cash and Cash Equivalents.	23
	7.5	Notice
    of Developments.	23
	7.6	No
    Solicitation.	23
	7.7	Confidentiality	23
	7.8	Taking
    of Necessary Action; Further Action; Taxes.	24
	7.9	Payroll
    Protection Plan Loan.	24
	7.10	Covenant
    not to Compete.	25
	7.12	Financial
    Information.	25
	7.13	Disclosure
    Schedule.	25
	 	 	 
	ARTICLE
    VIII CONDITIONS TO OBLIGATIONS TO CLOSE	25
	8.1	Conditions
    to Obligation of the Buyer.	25
	8.2	Conditions
    to Obligation of the Sellers.	27
	 	 	 
	ARTICLE
    IX TERMINATION; AMENDMENT; WAIVER	28
	9.1	Termination
    of Agreement.	28
	9.2	Effect
    of Termination.	28
	9.3	Amendments.	29
	9.4	Waiver.	29
	 	 	 
	ARTICLE
    X INDEMNIFICATION	29
	10.1	Survival.	29
	10.2	Indemnification
    by Sellers.	30
	10.3	Indemnification
    by Buyer.	30
	10.4	Indemnification
    Procedure.	30
	10.5	Failure
    to Give Timely Notice.	31
	10.6	Limited
    on Indemnification Obligation.	31
	10.7	Payments.	31
	 	 	 
	ARTICLE
    XI MISCELLANEOUS	32
	11.1	Press
    Releases and Public Announcement.	32
	11.2	No
    Third-Party Beneficiaries.	32
	11.3	Entire
    Agreement.	32
	11.4	Succession
    and Assignment.	32
	11.5	Construction.	32
	11.6	Notices.	32
	11.7	Governing
    Law.	33
	11.8	Consent
    to Jurisdiction and Service of Process.	34
	11.9	Headings.	34
	11.10	Severability.	34
	11.11	Expenses.	34
	11.12	Incorporation
    of Exhibits and Schedules.	35
	11.13	Specific
    Performance.	35
	11.14	Counterparts.	35

 

	Exhibit
A – List of Sellers	Ex A-1
	Exhibit
B – Example of Net Working Capital Calculation	Ex B-1
	Exhibit
C – Form of Seller Note	Ex C-1
	Exhibit
D – Employment Agreement Terms	Ex D-1
	Disclosure
Schedule	 

 

    ii

     

    

 

STOCK
PURCHASE AGREEMENT

 

STOCK
PURCHASE AGREEMENT, dated as of August 27, 2020 (the “Agreement”), among 1847 Cabinets Inc., a Delaware corporation
(the “Buyer”), Kyle’s Custom Wood Shop, Inc., an Idaho corporation (the “Company”),
Stephen Mallatt, Jr., an individual, and Rita Mallatt, an individual (each, a “Seller,” and collectively, the
“Sellers”), and 1847 Holdings LLC, a Delaware limited liability company (“Buyer Parent”).

 

BACKGROUND

 

Each
Seller is the record and beneficial owner of the number of shares (the “Shares”) of Common Stock, no par value,
of the Company (the “Common Stock”), set forth opposite each Seller’s name on Exhibit A. The Sellers
collectively own 100% of the issued and outstanding shares of Common Stock. The Sellers desire to sell all of the Shares to the
Buyer, and the Buyer desires to purchase all of the Shares from the Sellers, upon the terms and subject to the conditions set
forth in this Agreement (such sale and purchase of the Shares, the “Acquisition”).

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing premises and the respective representations and warranties, covenants and agreements
contained herein, the parties hereto agree as follows:

 

ARTICLE
I

DEFINITIONS

 

1.1 Certain
Definitions.

 

(a) When
used in this Agreement, the following terms will have the meanings assigned to them in this Section 1.1(a):

 

“Action”
means any claim, action, suit, inquiry, hearing, proceeding or other investigation.

 

“Affiliate”
means, with respect to a Person, any other Person that, directly or indirectly, through one or more intermediaries, Controls,
is Controlled by or is under common Control with, such Person. For purposes of this definition, “Control” (including
the terms “Controlled by” and “under common Control with”) means possession of the power
to direct or cause the direction of the management or policies of a Person, whether through the ownership of stock, as trustee
or executor, by Contract or otherwise.

 

“Benefit
Plan” means any “employee benefit plan” as defined in ERISA Section 3(3), including any (a) nonqualified
deferred compensation or retirement plan or arrangement which is an Employee Pension Benefit Plan (as defined in ERISA Section
3(2)), (b) qualified defined contribution retirement plan or arrangement which is an Employee Pension Benefit Plan, (c) qualified
defined benefit retirement plan or arrangement which is an Employee Pension Benefit Plan (including any Multiemployer Plan (as
defined in ERISA Section 3(37)), (d) Employee Welfare Benefit Plan (as defined in ERISA Section 3(1)) or material fringe benefit
plan or program, or (e) stock purchase, stock option, severance pay, employment, change-in-control, vacation pay, company award,
salary continuation, sick leave, excess benefit, bonus or other incentive compensation, life insurance, or other employee benefit
plan, contract, program, policy or other arrangement, whether or not subject to ERISA, under which any present or former employee
of the Company has any present or future right to benefits sponsored or maintained by the Company or any ERISA Affiliate.

 

     

     

    

 

“Business
Day” means a day other than a Saturday, Sunday or other day on which banks located in New York, NY are authorized or
required by Law to close.

 

“Closing
Working Capital” means the Net Working Capital as reflected on the Closing Date Balance Sheet determined in accordance
with GAAP.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Contract”
means any written agreement, contract, commitment, arrangement or understanding.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA
Affiliate” means any Person who is, or at any time was, a member of a “controlled group of corporations”
within the meaning of Section 414(b) or (c) of the Code and, for the purpose of Section 302 of ERISA and/or Section 412, 4971,
4977, 4980D, 4980E and/or each “applicable section” under Section 414(f)(2) of the Code, within the meaning of Section
412(n)(6) of the Code that includes, or at any time included, the Company or any Affiliate thereof, or any predecessor of any
of the foregoing.

 

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

 

“GAAP”
means United States generally accepted accounting principles.

 

“Governmental
Entity” means any entity or body exercising executive, legislative, judicial, regulatory or administrative functions
of or pertaining to United States federal, state or local government or foreign, international, multinational or other government,
including any department, commission, board, agency, bureau, official or other regulatory, administrative or judicial authority
thereof.

 

“Independent
Accounting Firm” means any nationally recognized independent registered public accounting firm which has not represented
the Company or the Sellers or any of their Affiliates for the past five years as will be agreed by the Company and the Buyer in
writing.

 

“IRS”
means the Internal Revenue Service.

 

“Knowledge
of the Sellers” or any similar phrase means the actual knowledge of each or either Seller, in each case without obligation
of inquiry.

 

    2

     

    

 

“Law”
means any statute, law, ordinance, rule, regulation of any Governmental Entity.

 

“Liability”
means all indebtedness, obligations and other liabilities and contingencies of a Person, whether absolute, accrued, contingent,
fixed or otherwise, or whether due or to become due except for the Payroll Protection Plan Loan.

 

“Lien”
means, with respect to any property or asset, any mortgage, lien, pledge, charge, security interest, hypothecation or other encumbrance
in respect of such property or asset.

 

“Material
Adverse Effect” means any material adverse effect on the assets, properties, condition (financial or otherwise), operations
of the Company and any of its Subsidiaries, taken as a whole.

 

“Net
Working Capital” means (i) good and collectible accounts receivable; plus (ii) good and merchantable inventory; plus
(iii) prepaid expenses and other current assets that have an economic benefit to the Company post-Closing, including the $91,000.00
in cash as provided in Section 7.4; less (iv) current accounts payable, accrued Liabilities and outstanding checks and other current
Liabilities. For the avoidance of doubt, attached as Exhibit B is an example of the calculation of Net Working Capital.

 

“Net
Working Capital Target” is equal to $154,000.

 

“Order”
means any award, injunction, judgment, decree, order, ruling, subpoena or verdict or other decision issued, promulgated or entered
by or with any Governmental Entity of competent jurisdiction.

 

“Payroll
Protection Plan Loan” means the loan (including principal and any accrued interest) obtain by the Company in the principal
amount of $281,125.00 funded on or about April 4, 2020, with JP Morgan Chase, as Lender.

 

“Permit”
means any authorization, approval, consent, certificate, license, permit or franchise of or from any Governmental Entity of competent
jurisdiction or pursuant to any Law.

 

“Person”
means an individual, a corporation, a partnership, a limited liability company, a trust, an unincorporated association, a Governmental
Entity or any agency, instrumentality or political subdivision of a Governmental Entity, or any other entity or body.

 

“Preliminary
Working Capital” means the Net Working Capital as reflected on the Preliminary Balance Sheet, determined in accordance
with GAAP.

 

“Representatives”
means, with respect to any Person, the respective directors, officers, employees, counsel, accountants and other representatives
of such Person.

 

    3

     

    

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership, joint venture or other legal entity of which such Person (either
alone or through or together with any other Subsidiary), owns, directly or indirectly, more than 50% of the stock or other equity
interests, the holders of which are generally entitled to vote for the election of the board of directors or other governing body
of a non-corporate Person.

 

“Taxes”
means all federal, state, local and foreign income, profits, franchise, gross receipts, environmental, customs duty, capital stock,
severance, stamp, payroll, sales, transfer, employment, unemployment, disability, use, property, withholding, excise, production,
value added, occupancy and other taxes, duties or assessments of any nature whatsoever.

 

“Taxing
Authority” means any Governmental Entity having or purporting to exercise jurisdiction with respect to any Tax.

 

“Tax
Returns” means any return, declaration, report, claim for refund, or information return or statement relating to Taxes,
including any schedule or attachment thereto, and including any amendment thereof.

 

“Transaction
Proposal” means any unsolicited written bona fide proposal made by a third party relating to (i) any direct or indirect
acquisition or purchase of all or substantially all assets of the Company, (ii) any direct or indirect acquisition or purchase
of a majority of the combined voting power of the Shares, (iii) any merger, consolidation, business combination, recapitalization,
liquidation, dissolution or similar transaction involving the Company in which the other party thereto or its stockholders will own
51% or more of the combined voting power of the parent entity resulting from any such transaction, or (iv) any other transaction that
is inconsistent with the intent and purpose of this Agreement.

 

“Transfer
Taxes” means sales, use, transfer, recording, documentary, stamp, registration and stock transfer Taxes and any similar
Taxes.

 

“$”
means United States dollars.

 

(b) For
purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires: (i) the meaning
assigned to each term defined herein will be equally applicable to both the singular and the plural forms of such term and vice
versa, and words denoting any gender will include all genders as the context requires; (ii) where a word or phrase is defined
herein, each of its other grammatical forms will have a corresponding meaning; (iii) the terms “hereof”, “herein”,
“hereunder”, “hereby” and “herewith” and words of similar import will, unless otherwise stated,
be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement; (iv) when a reference
is made in this Agreement to an Article, Section, paragraph, Exhibit or Schedule without reference to a document, such reference
is to an Article, Section, paragraph, Exhibit or Schedule to this Agreement; (v) a reference to a subsection without further
reference to a Section is a reference to such subsection as contained in the same Section in which the reference
appears, and this rule will also apply to paragraphs and other subdivisions; (vi) the word “include”, “includes”
or “including” when used in this Agreement will be deemed to include the words “without limitation”, unless
otherwise specified; (vii) a reference to any party to this Agreement or any other agreement or document will include such party’s
predecessors, successors and permitted assigns; (viii) a reference to any Law means such Law as amended, modified, codified, replaced
or reenacted as of the date hereof, and all rules and regulations promulgated thereunder as of the date hereof; and (ix) all accounting
terms used and not defined herein have the respective meanings given to them under GAAP.

 

    4

     

    

 

ARTICLE
II

PURCHASE AND SALE OF THE SHARES

 

2.1 Purchase
and Sale of the Shares. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing each
Seller will sell, transfer and deliver, and the Buyer will purchase from each Seller, all of the Shares set forth opposite such
Seller’s name on Exhibit A, for an aggregate purchase price, subject to adjustment as described in Section 2.2, of
Six Million, Six Hundred Fifty Thousand Dollars ($6,650,000) (the “Purchase Price”), consisting of: (i) Four
Million, Two Hundred Thousand Dollars ($4,200,000) in cash (the “Cash Portion”), (ii) the Buyer Shares (as
defined below), and (iii) the Seller Note (as defined below). The Purchase Price shall be allocated between the Sellers as set
forth in Exhibit A. The Purchase Price assumes that the Buyer will be able to verify through its accounting due diligence
that the Company has at least $1.4 million of annual earnings before interest, taxes, depreciation and amortization with adjustments
as mutually agreed upon.

 

(a) At
the Closing, the Buyer will deliver to the Sellers the Cash Portion in immediately available funds to an account designated by
each Seller prior to the Closing.

 

(b) Immediately
following the record date set by Buyer Parent for the distribution by Buyer Parent to its shareholders of the common stock held
by Buyer Parent of its subsidiary, 1847 Goedeker Inc. (“Goedeker”), Buyer Parent will cause its transfer agent
to issue to the Sellers an aggregate of 700,000 common shares of the Buyer Parent that, in aggregate, have a value as mutually
agreed upon by the parties that is equal to One Million, Four Hundred Thousand Dollars ($1,400,000) (the “Buyer Shares”).
For the avoidance of doubt, the Sellers shall have no right to receive any shares of common stock or other securities of Goedeker.
As soon as practicable following the date that the working capital adjustment under Section 2.2(a) is finally determined, the
Buyer Parent will file a registration statement on Form S-1 for the purpose of registering for resale under the Securities Act
of 1933, as amended, the Buyer Shares and will use commercially reasonable efforts to cause such registration statement to be
declared effective by the Securities and Exchange Commission as soon as reasonably practicable. The Sellers will cooperate with
the Buyer Parent and provide any requested information and complete any necessary selling security holder questionnaires as Buyer
Parent may require in order to register the Buyer Shares in accordance with this Section 2.1(b). In addition, upon the request
of the Sellers from to time to time, Buyer Parent shall be responsible (at its cost) for promptly supplying to Buyer Parent’s
transfer agent and the Sellers a customary legal opinion letter of its counsel to the effect that the resale of the Buyer Shares
by the Sellers or their respective affiliates, successors and assigns is exempt from the registration requirements of the Securities
Act pursuant to Rule 144 (provided the requirements of Rule 144 are satisfied and provided the Buyer Shares are not then registered
under the Securities Act for resale pursuant to an effective registration statement). Notwithstanding the foregoing, if the Buyer
Shares are eligible for resale pursuant to Rule 144 without restriction as to volume, then the obligation to file a registration
statement as set forth in this Section 2.1(b) shall terminate.

 

    5

     

    

 

(c) At
the Closing, the Sellers will deliver to the Buyer a certificate or certificates representing the Shares, if certificated, duly
endorsed or accompanied by stock powers duly endorsed in blank.

 

(d) At
the Closing, the Buyer will issue to the Sellers an 8% contingent subordinated note in the aggregate principal amount of One Million,
Fifty Thousand Dollars ($1,050,000) in the form set forth on Exhibit C (each a “Seller Note” and collectively,
the “Seller Notes”).

 

2.2 Adjustments
to Purchase Price.

 

(a) Working
Capital Adjustment.

 

(i) At
the Closing, the Sellers shall deliver to the Buyer an unaudited balance sheet of the Company, subject to all qualifications and
estimates as set forth in the notes or addenda thereto (the “Preliminary Balance Sheet”), as at the Closing
so as to present fairly in all material respects the financial condition of Company as of such date.

 

(ii) As
soon as practicable following the Closing Date (but not later than seventy-five (75) days after the Closing Date), the Buyer shall
cause its auditor to prepare and deliver to the Sellers an audited balance sheet of the Company (the “Closing Date Balance
Sheet”) as of the Closing Date. The Closing Date Balance Sheet shall be prepared in accordance with GAAP in a manner
consistent with the Preliminary Balance Sheet so as to present fairly in all material respects the financial condition of the
Company.

 

(iii) If
the Closing Working Capital exceeds the Preliminary Working Capital, then the Buyer (or, at the Buyer’s direction, the Company)
shall pay promptly (and, in any event, within seven (7) days) to the Sellers (on a pro rata basis based upon their relative ownership
interests in the Company) an amount in cash that is equal to the excess. If the Preliminary Working Capital exceeds the Closing
Working Capital, then the Sellers shall pay promptly (and, in any event, within seven (7) days) to the Buyer an amount in cash
that is equal to such excess (on a pro rata basis based upon their relative ownership interests in the Company); provided, however,
that the Sellers may, at their option, in lieu of paying such excess in cash, deliver and transfer to the Buyer a number of Buyer
Shares that is equal to their respective share of such excess divided by $2.00. Any such adjustment shall be treated as an adjustment
to the Purchase Price.

 

(iv) In
the event the Sellers do not agree with the Closing Working Capital as reflected on the Closing Date Balance Sheet, the Sellers
shall so inform the Buyer in writing within fifteen (15) days of the Seller’s receipt thereof, such writing to set forth
the objections of the Sellers in reasonable detail. If the Sellers and the Buyer cannot reach agreement as to any disputed matter
relating to the Closing Working Capital within fifteen (15) days after notification by the Sellers to the Buyer of a dispute,
they shall forthwith refer the dispute to an Independent Accounting Firm mutually agreeable to the Sellers and the Buyer for resolution,
with the understanding that such firm shall resolve all disputed items within twenty (20) days after such disputed items are referred
to it. If the Buyer and the Sellers are unable to agree on the choice of an Independent Accounting Firm, they shall select an
Independent Accounting Firm by lot (after excluding their respective regular outside accounting firms). The Sellers, on the one
hand, and the Buyer, on the other hand, shall bear one-half of the costs of such accounting firm. The decision of the accounting
firm with respect to all disputed matters relating to the Closing Working Capital shall be deemed final and conclusive and shall
be binding upon the Sellers and the Buyer. In addition, if the Sellers do not object to the Closing Working Capital within the
15-day period referred to above, the Closing Working Capital, as reflected on the Closing Date Balance Sheet as so prepared, shall
be deemed final and conclusive and binding upon the Sellers and the Buyer.

 

    6

     

    

 

(v) The
Sellers shall be entitled to have access to the books and records of the Company and the Buyer’s work papers prepared in
connection with the Closing Date Balance Sheet and shall be entitled to discuss such books and records and work papers with the
Buyer and those persons responsible for the preparation thereof.

 

(b) Target
Working Capital Adjustment. If the Net Working Capital Target exceeds the Net Working Capital as set forth on the Preliminary
Balance Sheet, then the Purchase Price shall be reduced at the Closing by an amount equal to such difference. If the Net Working
Capital as set forth on the Preliminary Balance Sheet exceeds the Net Working Capital Target at Closing, the Purchase Price shall
be increased at the Closing by an amount equal to such difference.

 

(c) Adjustment
for Outstanding Indebtedness. The Purchase Price shall be decreased by the amount of any outstanding indebtedness of the Company
existing as of the Closing Date and the deducted amount shall be utilized to pay off such outstanding indebtedness. Indebtedness
of the Company shall not include the Payroll Protection Plan Loan.

 

2.3 Closing.
The consummation of the Acquisition (the “Closing”) will take place by the reciprocal delivery of closing
documents by electronic mail, regular mail, fax or any other means mutually agreed upon by the parties hereto on a date that is
no later than two (2) Business Days immediately following the day on which the last of the conditions to closing contained in
Article VIII (other than any conditions that by their nature are to be satisfied at the Closing) is satisfied or waived in
accordance with this Agreement or at such other location or on such other date as the Buyer and the Company may mutually determine
(the date on which the Closing actually occurs is referred to as the “Closing Date”).

 

    7

     

    

 

2.4 Transactions
to be Effected at the Closing.

 

(a) At
the Closing, the Buyer will (i) pay to each of the Sellers his or her pro portion of the Cash Portion of the Purchase Price, adjusted
in accordance with subsection 2.2(b) above and less the amounts paid pursuant to subsection 2.2(c) above by paying such sum to
each Seller by transfer of immediately available funds in accordance with instructions provided by each Seller, (ii) issue to
each Seller a certificate or certificates representing the number of Buyer Shares set forth for such Seller on Exhibit A,
duly endorsed or accompanied by stock powers duly endorsed in blank, (iii) issue to each of the Sellers his or her pro rata portion
of the Seller Notes representing the principal amount of Seller Note set forth for such Seller on Exhibit A, and (iv) deliver
to the Sellers all other documents, instruments or certificates required to be delivered by the Buyer at or prior to the Closing
pursuant to Section 8.2 of this Agreement.

 

(b) At
the Closing, each Seller will deliver to the Buyer (i) a certificate or certificates representing his or her Shares duly endorsed
or accompanied by stock powers duly endorsed in blank and (ii) all other documents, instruments or certificates required
to be delivered by the Sellers at or prior to the Closing pursuant to Section 8.1 of this Agreement.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

 

Each
of the Sellers, for himself or herself, as the case may be, represents and warrants to the Buyer that, with respect to such Seller,
each statement contained in this Article III is true and correct as of the date hereof, except as set forth in the disclosure
schedule to be delivered to the Buyer in accordance with Section 7.13 hereof (the “Disclosure Schedule”).
The Disclosure Schedule has been arranged for purposes of convenience only, in sections corresponding to the Sections of this
Article III and Article IV.  Each section of the Disclosure Schedule will be deemed to incorporate by reference all information
disclosed in any other section of the Disclosure Schedule.

 

3.1 Authority
and Enforceability. The Seller has the requisite legal capacity to execute and deliver this Agreement, to perform the
Seller’s obligations hereunder and to consummate the Acquisition and the other transactions contemplated hereby. This Agreement
has been duly executed and delivered by the Seller and, assuming the due authorization, execution and delivery by each other party
hereto, constitutes a legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its
terms, except as limited by (a) bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar Laws
relating to creditors’ rights generally and (b) general principles of equity, whether such enforceability is considered
in a proceeding in equity or at Law.

 

3.2 Noncontravention.

 

(a) The Seller holds of record and owns beneficially all of
the issued and outstanding shares of capital stock of the Company set forth opposite such Seller’s name on Exhibit A, free
and clear of all Liens, other than (a) Liens for current real or personal property Taxes that are not yet due and payable or that
may hereafter be paid without material penalty or that are being contested in good faith, (b) statutory Liens of landlords and
workers’, carriers’ and mechanics’ or other like Liens incurred in the ordinary course of business or that are
being contested in good faith, (c) Liens and encroachments which do not materially interfere with the present or proposed use of
the properties or assets they affect, (d) Liens that will be released prior to or as of the Closing, (e) Liens arising under this
Agreement, (f) Liens created by or through the Buyer, and (g) Liens set forth on Section 3.3(a) of the Disclosure Schedule (the
“Permitted Liens”).

 

    8

     

    

 

(b) The
execution and delivery of this Agreement by the Seller does not, and the performance of this Agreement by the Seller will not,
require any consent, approval, authorization or Permit of, or filing with or notification to, any Governmental Entity, except
for (i) the filings set forth in Section 3.2(b) of the Disclosure Schedule or (ii) where the failure to take such action
would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

3.3 The
Shares.

 

(a) The
Seller holds of record and owns beneficially all of the issued and outstanding shares of capital stock of the Company set forth
opposite such Seller’s name on Exhibit A, free and clear of all Liens, other than (a) Liens for current real or personal
property Taxes that are not yet due and payable or that are being contested in good faith, (b) statutory Liens of landlords
and workers’, carriers’ and mechanics’ or other like Liens incurred in the or that are being contested in good
faith, (c) Liens earising under this Agreement, (f) Liens created by or through the Buyer, and (g) Liens set forth on Section
3.3(a) of the Disclosure Schedule (the “Permitted Liens”).

 

(b) The
number of Shares set forth opposite the Seller’s name on Exhibit A correctly sets forth all of the capital stock
of the Company owned of record or beneficially by the Seller.

 

(c) Except
as set forth in this Agreement, the Seller is not a party to any Contract obligating the Seller to vote or dispose of any shares
of the capital stock of, or other equity or voting interests in, the Company.

 

3.4 Brokers’
Fees. Except as set forth in Section 3.4 of the Disclosure Schedule, the Seller does not have any Liability to pay
any fees or commissions to any broker, finder or agent with respect to this Agreement, the Acquisition or the transactions
contemplated by this Agreement.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES CONCERNING THE COMPANY

 

Each
Seller, jointly and severally, represents and warrants to the Buyer that each statement contained in this Article IV is true and
correct as of the date hereof, except as set forth in the Disclosure Schedule.

 

4.1 Organization,
Qualification and Corporate Power; Authority and Enforceability.

 

(a) The
Company is a corporation duly organized, validly existing and in good standing under the Laws of Idaho, and has all requisite
corporate power and authority, directly or indirectly, to own, lease and operate its properties and assets and to carry on its
business as it is now being conducted. The Company is duly qualified or licensed as a foreign corporation to do business, and
is in good standing, in each jurisdiction where the character of its properties or assets owned, leased or operated by it or the
nature of its activities makes such qualification or licensing necessary, except where the failure to be so qualified or licensed
would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

 

    9

     

    

 

(b) The
Company has the requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder and
to consummate the transactions contemplated hereby. The execution, delivery and performance by the Company of this Agreement and
the consummation by the Company of the transactions contemplated hereby have been duly authorized by all necessary action on the
part of the Company, and no other action is necessary on the part of the Company to authorize this Agreement or to consummate
the Acquisition or the other transactions contemplated hereby. This Agreement has been duly executed and delivered by the Company
and, assuming the due authorization, execution and delivery by each other party hereto, constitutes a legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by (a) bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar Laws relating to creditors’ rights generally
and (b) general principles of equity, whether such enforceability is considered in a proceeding in equity or at Law.

 

4.2 Subsidiaries.
The Company does not have any Subsidiaries.

 

4.3 Capitalization.

 

(a) The
authorized capital stock of the Company is as set forth in Section 4.3(a) of the Disclosure Schedule, of which 1,000 shares
of Common Stock are issued and outstanding. No other capital stock of the Company is authorized, issued or outstanding.

 

(b) There
are no outstanding options, warrants or other securities or subscription, preemptive or other rights convertible into or exchangeable
or exercisable for any shares of capital stock or other equity or voting interests of the Company and there are no “phantom
stock” rights, stock appreciation rights or other similar rights with respect to the Company. There are no Contracts of
any kind to which the Company is a party or by which the Company is bound, obligating the Company to issue, deliver, grant or
sell, or cause to be issued, delivered, granted or sold, additional shares of capital stock of, or other equity or voting interests
in, or options, warrants or other securities or subscription, preemptive or other rights convertible into, or exchangeable or
exercisable for, shares of capital stock of, or other equity or voting interests in, the Company, or any “phantom stock”
right, stock appreciation right or other similar right with respect to the Company, or obligating the Company to enter into any
such Contract.

 

(c) There
are no securities or other instruments or obligations of the Company, the value of which is in any way based upon or derived from
any capital or voting stock of the Company or having the right to vote (or convertible into, or exchangeable or exercisable for,
securities having the right to vote) on any matters on which the Company’s stockholders may vote.

 

    10

     

    

 

(d) There
are no Contracts, contingent or otherwise, obligating the Company to repurchase, redeem or otherwise acquire any shares of capital
stock of, or other equity or voting interests in, the Company. There are no voting trusts, registration rights agreements or stockholder
agreements to which the Company is a party with respect to the voting of the capital stock of the Company or with respect to the
granting of registration rights for any of the capital stock of the Company. There are no rights plans affecting the Company.

 

(e) Except
as set forth in Section 4.3(e) of the Disclosure Schedule, there are no bonds, debentures, notes or other indebtedness
of the Company.

 

4.4 Noncontravention.

 

(a) Neither
the execution and delivery of this Agreement nor the consummation of the Acquisition and the other transactions contemplated by
this Agreement will, with or without the giving of notice or the lapse of time or both, (i) violate any provision of the articles
of incorporation or bylaws (or comparable organization documents, as applicable) of the Company, (ii) to the Knowledge of the Sellers and assuming compliance with
the filing and notice requirements set forth in Section 4.4(b)(i), violate any Law applicable to the Company on the date hereof
or (iii) except as set forth in Section 4.4(a) of the Disclosure Schedule, violate any Contract to which the Company is
a party, except in the case of clauses (ii) and (iii) to the extent that any such violation would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.

 

(b) The
execution and delivery of this Agreement by the Company does not, and the performance of this Agreement by the Company will not,
require any consent, approval, authorization or Permit of, or filing with or notification to, any Governmental Entity, except
for (i) the filings set forth in Section 4.4(b) of the Disclosure Schedule or (ii) where the failure to take such action
would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

4.5 Financial
Statements. Section 4.5 of the Disclosure Schedule contains true and complete copies of (i) the unaudited balance
sheet of the Company as of December 31, 2019 and December 31, 2018 and the related unaudited statements of income and cash flows
for the two years ended December 31, 2019 and December 31, 2018 (the “Annual Financial Statements”) and (ii)
the unaudited balance sheet of the Company as of June 30, 2020 and the related statements of income and cash flows for the six-month
period ended June 30, 2020 (the “Interim Financial Statements” and, together with the Annual Financial Statements,
the “Financial Statements”). Except as set forth in, and subject to, Section 4.5 of the Disclosure Schedule,
the Financial Statements have been prepared in accordance with accounting principles of Company applied on a consistent basis
throughout the periods involved (except as may be indicated in the notes thereto) and, on that basis, fairly present, in all material
respects, the financial condition and results of operations of the Company as of the indicated dates and for the indicated periods
(subject to normal year-end adjustments and notes).  

 

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4.6 Taxes.

 

(a) All
material Tax Returns required to have been filed by the Company have been filed, and each such Tax Return reflects the liability for Taxes in all material respects.  All Taxes shown on such Tax Returns as due have been paid or accrued.

 

(b) To
the Knowledge of the Sellers, there is no audit pending against the Company in respect of any Taxes. There are no Liens on any
of the assets of the Company that arose in connection with any failure (or alleged failure) to pay any Tax, other than Liens for
Taxes not yet due and payable.

 

(c) The
Company has withheld and paid or accrued for all material Taxes required to have been withheld and paid or accrued for in connection
with amounts paid or owing to any third party.

 

(d) The
Company has not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax
assessment or deficiency.

 

(e) The
Company is not a party to any Tax allocation or sharing agreement.

 

4.7 Compliance
with Laws and Orders; Permits.

 

(a) The
Company is in compliance with all Laws and Orders to which the business of the Company is subject, except where such failure to
comply would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(b) The
Company owns, holds, possesses or lawfully uses in the operation of its business all Permits that are necessary for it to conduct
its business as now conducted, except where such failure to own, hold, possess or lawfully use such Permit would not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

4.8 No
Undisclosed Liabilities. The Company does not have any Liability, except for (i) Liabilities set forth on the Interim
Financial Statements (rather than in any notes thereto) and (ii) Liabilities which have arisen since the date of the Interim
Financial Statements in the ordinary course of business (none of which results from, arises out of, relates to, is in the
nature of, or was caused by any breach of contract, breach of warranty, tort, infringement, or violation of law).

 

4.9 Tangible
Personal Assets.

 

(a) The
Company has good title to, or a valid interest in, all of its tangible personal assets, free and clear of all Liens, other than
(i) Permitted Liens or (ii) Liens that, individually or in the aggregate, do not materially interfere with the ability of the
Company thereof to conduct its business as currently conducted and do not adversely affect the value of, or the ability to sell,
such personal properties and assets. Certain assets described in the Section 4.9 of the Disclosure Schedule although used
in the business of the Company are excluded from this transaction and shall remain the separate property of the Sellers, provided
that any and all associated debt relating to such excluded assets shall be assumed by the Sellers. The exclusion of such assets
from the business does not adversely affect the operations of the Company.

 

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(b) The
Company’s tangible personal assets are in good operating condition, working order and repair, subject to ordinary wear and
tear, free from defects (other than defects that do not interfere with the continued use thereof in the conduct of normal operations)
and are suitable for the purposes for which they are currently being used.

 

4.10 Real
Property.

 

(a) Owned
Real Property. Section 4.10(a)(i) of the Disclosure Schedule lists and describes briefly all real property that the
Company owns. Except as disclosed in Section 4.10(a)(i) of the Disclosure Schedules, with respect to each such parcel of owned
real property:

 

(i) the
Company has good and marketable title to the parcel of real property, free and clear of any Lien or other restriction, except
for installments of special assessments not yet delinquent and recorded easements, covenants, and other restrictions which do
not impair the current use, occupancy, or value, or the marketability of title, of the property subject thereto;

 

(ii) there
are no pending or, to the Knowledge of the Sellers, threatened condemnation proceedings, lawsuits, or administrative actions relating
to the property or other matters affecting adversely the current use, occupancy, or value thereof;

 

(iii) the
legal description for the parcel contained in the deed thereof describes such parcel fully and adequately, the buildings and improvements
are located within the boundary lines of the described parcels of land, are not in violation of applicable setback requirements,
zoning laws, and ordinances (and none of the properties or buildings or improvements thereon are subject to “permitted non-conforming
use” or “permitted non-conforming structure” classifications), and do not encroach on any easement which may
burden the land, and the land does not serve any adjoining property for any purpose inconsistent with the use of the land, and
the property is not located within any flood plain or subject to any similar type restriction for which any permits or licenses
necessary to the use thereof have not been obtained;

 

(iv) all
facilities have received all approvals of governmental authorities (including licenses and permits) required in connection with
the ownership or operation thereof and have been operated and maintained in accordance with applicable laws, rules, and regulations;

 

(v) there
are no leases, subleases, licenses, concessions, or other agreements, written or oral, granting to any party or parties the right
of use or occupancy of any portion of the parcel of real property;

 

(vi) there
are no outstanding options or rights of first refusal to purchase the parcel of real property, or any portion thereof or interest
therein;

 

    13

     

    

 

(vii) there
are no parties (other than the Company) in possession of the parcel of real property, other than tenants under any leases disclosed
in Section 4.10(b) of the Disclosure Schedule who are in possession of space to which they are entitled;

 

(viii) all
facilities located on the parcel of real property are supplied with utilities and other services necessary for the operation of
such facilities, including gas, electricity, water, telephone, sanitary sewer, and storm sewer, all of which services are adequate
in accordance with all applicable laws, ordinances, rules, and regulations and are provided via public roads or via permanent,
irrevocable, appurtenant easements benefitting the parcel of real property; and

 

(ix) each
parcel of real property abuts on and has direct vehicular access to a public road, or has access to a public road via a permanent,
irrevocable, appurtenant easement benefitting the parcel of real property, and access to the property is provided by paved public
right of way with adequate curb cuts available.

 

(b) Leased
Real Property. Section 4.10(b) of the Disclosure Schedule contains a list of all leases and subleases (collectively,
the “Real Property Leases”) under which the Company is either lessor or lessee (the “Real Property”).
The Sellers have heretofore made available to the Buyer true and complete copies of each Real Property Lease. To the Knowledge
of the Sellers, (i) all Real Property Leases are valid and binding Contracts of the Company and are in full force and effect (except
for those that have terminated or will terminate by their own terms), and (ii) neither the Company or any other party thereto,
is in violation or breach of or default (or with notice or lapse of time, or both, would be in violation or breach of or default)
under the terms of any such Contract, in each case, except where such default would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect.

 

4.11 Intellectual
Property.

 

(a) “Intellectual
Property” means (i) trade secrets, inventions, confidential and proprietary information, know-how, formulae and processes,
(ii) patents (including all provisionals, reissues, divisions, continuations and extensions thereof) and patent applications,
(iii) trademarks, trade names, trade dress, brand names, domain names, trademark registrations, trademark applications, service
marks, service mark registrations and service mark applications (whether registered, unregistered or existing at common law, including
all goodwill attaching thereto), (iv) copyrights, including copyright registrations, copyright applications and unregistered common
law copyrights; (v) and all licenses for the Intellectual Property listed in items (i) – (iv) above.

 

(b) Section
4.11(b) of the Disclosure Schedule sets forth a list that includes all material Intellectual Property owned by the Company
(the “Company-Owned Intellectual Property”) that is registered or subject to an application for registration
(including the jurisdictions where such Company-Owned Intellectual Property is registered or where applications have been filed,
and all registration or application numbers, as appropriate).

 

(c) All
necessary registration, maintenance and renewal fees have been paid and all necessary documents have been filed with the United
States Patent and Trademark Office or foreign patent and trademark office in the relevant foreign jurisdiction for the purposes
of maintaining the registered Company-Owned Intellectual Property.

 

    14

     

    

 

(d) Except
as set forth on Section 4.11(d) of the Disclosure Schedule, (i) the Company is the exclusive owner of the Company-Owned
Intellectual Property free and clear of all Liens (other than Permitted Liens); (ii) to the Knowledge of the Sellers no proceedings
have been instituted, are pending or are threatened that challenge the rights of the Company in or the validity or enforceability
of the Company-Owned Intellectual Property; (iii) to the Knowledge of the Sellers, neither the use of the Company-Owned Intellectual
Property as currently used by the Company in the conduct of the Company’s business, nor the conduct of the business as presently
conducted by the Company infringes, dilutes, misappropriates or otherwise violates in any material respect the Intellectual Property
rights of any Person; and (iv) as of the date of this Agreement, the Company has made no claim of a violation, infringement, misuse
or misappropriation by any Person, of their rights to, or in connection with, the Company-Owned Intellectual Property.

 

(e) Except
as set forth in Section 4.11(e) of the Disclosure Schedule, the Company has not permitted or licensed any Person to use
any Company-Owned Intellectual Property.

 

(f) Section
4.11(f) of the Disclosure Schedule sets forth a complete and accurate list of all licenses, other than “off the shelf”
commercially available software programs, pursuant to which the Company licenses from any Person Intellectual Property that is
material to and used in the conduct of the business by the Company.

 

(g) To the Knowledge of the Sellers, the Company is not in default in the performance, observance or fulfillment of any obligation, covenant or condition contained
in any Contract pursuant to which any third party is authorized to use any Company-Owned Intellectual Property or pursuant to
which the Company is licensed to use Intellectual Property owned by a third party, except where such default would not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

4.12 Absence
of Certain Changes or Events. Since the date of the Interim Financial Statements, no event has occurred that has had,
individually or in the aggregate, a Material Adverse Effect. Without limiting the generality of the foregoing, since that date:

 

(a) the
Company has not sold, leased, transferred, or assigned any of its assets, tangible or intangible, other than for a fair consideration
in the ordinary course of business;

 

(b) the
Company has not entered into any agreement, contract, lease, or license (or series of related agreements, contracts, leases, and
licenses) either involving more than $50,000 or outside the ordinary course of business;

 

(c) no
party (including the Company) has accelerated, terminated, modified, or cancelled any agreement, contract, lease, or license (or
series of related agreements, contracts, leases, and licenses) involving more than $50,000 to which the Company is a party or by which
any of them is bound;

 

    15

     

    

 

(d) the
Company has not imposed any Liens upon any of its assets, tangible or intangible;

 

(e) the
Company has not made any capital expenditure (or series of related capital expenditures) either involving more than $50,000 or outside
the ordinary course of business;

 

(f) the
Company has not made any capital investment in, any loan to, or any acquisition of the securities or assets of, any other Person
(or series of related capital investments, loans, and acquisitions) either involving more than $50,000 or outside the ordinary course
of business;

 

(g) the
Company has not transferred, assigned, or granted any license or sublicense of any rights under or with respect to any Intellectual
Property;

 

(h) there
has been no change made or authorized in the certificate of incorporation or bylaws of the Company;

 

(i) the
Company has not issued, sold, or otherwise disposed of any of its capital stock, or granted any options, warrants, or other rights
to purchase or obtain (including upon conversion, exchange, or exercise) any of its capital stock;

 

(j) the
Company has not made any loan to, or entered into any other transaction with, any of its directors, officers, and employees outside
the ordinary course of business;

 

(k) the
Company has not entered into any employment contract or modified the terms of any existing such contract or agreement;

 

(l) the
Company has not granted any increase in the base compensation of any of its directors, officers, and employees outside the ordinary
course of business;

 

(m) the
Company has not committed to any of the foregoing.

 

4.13 Contracts.

 

(a) Except
as set forth in Section 4.13(a) of the Disclosure Schedule, as of the date hereof, the Company is not a party to or bound
by any: (i) Contract not contemplated by this Agreement that materially limits the ability of the Company to engage or compete
in any manner of the business presently conducted by the Company; (ii) Contract that creates a partnership or joint venture or
similar arrangement with respect to any material business of the Company; (iii) indenture, credit agreement, loan agreement, security
agreement, guarantee, note, mortgage or other evidence of indebtedness or agreement providing for indebtedness in excess of $50,000;
(iv) Contract that relates to the acquisition or disposition of any material business (whether by merger, sale of stock, sale
of assets or otherwise) other than this Agreement; and (v) Contract that involves performance of services or delivery of goods
or materials by or to the Company in an amount or with a value in excess of $50,000 in any 12-month period (which period may extend
past the Closing).

 

    16

     

    

 

(b) The
Sellers have heretofore made available to the Buyer true and complete copies of each of the Contracts set forth in Section
4.13(a) of the Disclosure Schedule. To the Knowledge of the Sellers, (i) all such Contracts are valid and binding, (ii) all
such Contracts are in full force and effect (except for those that have terminated or will terminate by their own terms), and
(iii) neither the Company nor any other party thereto, is in violation or breach of or default under (or with notice or lapse
of time, or both, would be in violation or breach of or default under) the terms of any such Contract, in each case, except where
such default would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

4.14 Litigation.
Except as set forth in Section 4.14 of the Disclosure Schedule, there is no Action pending or, to the Knowledge of
the Sellers, threatened against the Company that (a) challenges or seeks to enjoin, alter or materially delay the Acquisition
or (b) would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

4.15 Employee
Benefits.

 

(a) Section
4.15(a) of the Disclosure Schedule includes a list of all Benefit Plans maintained or contributed to by the Company (the “Company
Benefit Plans”). The Sellers have delivered or made available to the Buyer copies of (i) each Company Benefit Plan,
(ii) the most recent summary plan description for each Company Benefit Plan for which such a summary plan description is required
and (iii) the most recent favorable determination letters from the IRS with respect to each Company Benefit Plan intended to qualify
under Section 401(a) of the Code.

 

(b) Except
as set forth in Section 4.15(b) of the Disclosure Schedule, (i) none of the Company Benefit Plans is subject to Title IV
of ERISA; (ii) each Company Benefit Plan that is intended to be qualified under Section 401(a) of the Code is subject to a favorable
determination letter from the IRS and, to the Knowledge of the Sellers, no event has occurred and no condition exists that is
reasonably likely to result in the revocation of any such determination; and (iii) each Company Benefit Plan is in compliance
with all applicable provisions of ERISA and the Code, except for instances of noncompliance that would not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect.

 

4.16 Labor
and Employment Matters. Section 4.16 of the Disclosure Schedule sets forth a list of all written employment agreements
that obligate the Company to pay an annual salary of $50,000 or more and to which the Company is a party. To the Knowledge of
the Sellers, there are no pending labor disputes, work stoppages, requests for representation, pickets, work slow-downs due to
labor disagreements or any actions or arbitrations that involve the labor or employment relations of the Company. The Company
is not party to any collective bargaining agreement.

 

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4.17 Environmental.
Except (i) as set forth in Section 4.17 of the Disclosure Schedule or (ii) for any matter that would not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect, (a) the Company is in compliance with all applicable
Laws relating to protection of the environment (“Environmental Laws”), (b) the Company possesses and is in
compliance with all Permits required under any Environmental Law for the conduct of its operations and (c) there are no Actions
pending against the Company alleging a violation of any Environmental Law. No property currently or formerly owned or operated
by the Company or has been contaminated with any Hazardous Substance in a manner that could reasonably be expected to require
remediation or other action pursuant to any Environmental Law. Neither the Sellers, nor the Company has received any written notice,
demand, letter, claim or request for information alleging that the Company or the Sellers are in violation of or liable under
any Environmental Law. For purposes of this Agreement, “Hazardous Substance” means any substance that is: (i) listed,
classified, regulated or defined pursuant to any Environmental Law or (ii) any petroleum product or by-product, asbestos-containing
material, polychlorinated biphenyls or radioactive material.

 

4.18 Insurance.
Section 4.18 of the Disclosure Schedule sets forth a list of each insurance policy that covers the Company or its
businesses, properties, assets, directors, officers or employees (the “Policies”). Such Policies are in full
force and effect in all material respects and the Company is not in violation or breach of or default under any of its obligations
under any such Policy, except where such default would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

 

4.19 Inventory.
The inventory of the Company consists of raw materials and supplies, manufactured and purchased parts, goods in process,
and finished goods, all of which is merchantable and fit for the purpose for which it was procured or manufactured, and none of
which is slow moving, obsolete, damaged, or defective, subject only to the reserve for inventory write down set forth on the face
of the balance sheet included in the Interim Financial Statements (rather than in any notes thereto) as adjusted for the passage
of time through the Closing Date in accordance with the past custom and practice of the Company.

 

4.20 Notes
and Accounts Receivable. All notes and accounts receivable of the Company are reflected properly on their books and
records, are valid receivables subject to no setoffs or counterclaims, are current and collectible, and will be collected in accordance
with their terms at their recorded amounts, subject only to the reserve for bad debts set forth on the face of the balance sheet
included in the Interim Financial Statements (rather than in any notes thereto) as adjusted for the passage of time through the
Closing Date in accordance with the past custom and practice of the Company.

 

4.21 Powers
of Attorney. There are no outstanding powers of attorney executed on behalf of any of the Company.

 

4.22 Product
Warranty. Each product manufactured, sold, leased, or delivered by the Company has been in conformity with all applicable
contractual commitments and all express and implied warranties, and the Company has no Liability (and there is no basis for any
present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand against any of them giving
rise to any Liability) for replacement or repair thereof or other damages in connection therewith, subject only to the reserve
for product warranty claims set forth on the face of the balance sheet included in the Interim Financial Statements (rather than
in any notes thereto) as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice
of the Company. No product manufactured, sold, leased, or delivered by the Company is subject to any guaranty, warranty, or other
indemnity beyond the applicable standard terms and conditions of sale or lease. Section 4.22 of the Disclosure Schedule
includes copies of the standard terms and conditions of sale or lease for the Company (containing applicable guaranty, warranty,
and indemnity provisions).

 

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4.23 Product
Liability. The Company has no Liability (and there is no basis for any present or future action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand against any of them giving rise to any Liability) arising out of any injury
to individuals or property as a result of the ownership, possession, or use of any product manufactured, sold, leased, or delivered
by the Company.

 

4.24 Brokers’
Fees. Except as set forth in Section 4.24 of the Disclosure Schedule, which such fees shall be paid prior to
or at Closing with the Company’s cash, the Company has no Liability to pay any fees or commissions to any broker, finder
or agent with respect to this Agreement, the Acquisition or the transactions contemplated by this Agreement.

 

4.25 Certain
Business Relationships with the Company. Except as set forth in Section 4.25 of the Disclosure Schedule, neither
the Sellers, nor any Affiliate of the Sellers, has been involved in any business arrangement or relationship with the Company
within the past 12 months, and neither the Sellers, nor any Affiliate of the Sellers, owns any asset, tangible or intangible,
which is used in the Business.

 

4.26 Disclosure.
The representations and warranties contained in this Article IV do not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements and information contained in this Article IV not misleading.

 

ARTICLE
V

REPRESENTATIONS AND WARRANTIES OF THE BUYER

 

The
Buyer represents and warrants to the Sellers that each statement contained in this Article V is true and correct as of the date
hereof.

 

5.1 Organization.
The Buyer is a corporation, duly organized, validly existing and in good standing under the laws of the state of Delaware.

 

5.2 Authorization.
The Buyer has the requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder
and to consummate the transactions contemplated hereby. The execution, delivery and performance by the Buyer of this Agreement,
and the consummation of the transactions contemplated hereby, have been duly authorized by all necessary action, and no other
action on the part of the Buyer is necessary to authorize this Agreement or to consummate the transactions contemplated hereby
(other than compliance with the filing and notice requirements set forth in Section 5.3(b)(i)). This Agreement has been duly executed
and delivered by the Buyer and, assuming the due authorization, execution and delivery by each of the other parties hereto, constitutes
a legal, valid and binding obligation of the Buyer enforceable against the Buyer in accordance with its terms, except as limited
by (a) bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar Laws relating to creditors’
rights generally and (b) general principles of equity, whether such enforceability is considered in a proceeding in equity or
at Law.

 

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5.3 Noncontravention.

 

(a) Neither
the execution and the delivery of this Agreement, nor the consummation of the Acquisition and the other transactions contemplated
by this Agreement, will, with or without the giving of notice or the lapse of time or both, (i) violate any provision of
the certificate of incorporation or bylaws (or comparable organization documents, as applicable) of the Buyer, (ii) violate
any Law applicable to the Buyer on the date hereof or (iii) violate any Contract to which the Buyer is a party, except in
the case of clauses (ii) and (iii) to the extent that any such violation would not reasonably be expected to prevent or materially
delay the consummation of the Acquisition and the other transactions contemplated by this Agreement.

 

(b) The
execution and delivery of this Agreement by the Buyer does not, and the performance of this Agreement by the Buyer will not, require
any consent, approval, authorization or Permit of, or filing with or notification to, any Governmental Entity, except for (i)
the filings set forth in Section 5.3(b)(i) or (ii) where the failure to take such action would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

 

(c) Brokers’
Fees. The Buyer has no Liability to pay any fees or commissions to any broker, finder or agent with respect to this Agreement,
the Acquisition or the transactions contemplated by this Agreement that could result in any Liability being imposed on the Sellers
or the Company.

 

ARTICLE
VI

REPRESENTATIONS AND WARRANTIES OF THE BUYER PARENT

 

6.1 Organization.
The Buyer Parent is a limited liability company, duly organized, validly existing and in good standing under the laws of
the State of Delaware.

 

6.2 Authorization.
The Buyer Parent has the requisite power and authority to execute and deliver this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by the Buyer Parent
of this Agreement, and the consummation of the transactions contemplated hereby, have been duly authorized by all necessary action,
and no other action on the part of the Buyer Parent is necessary to authorize this Agreement or to consummate the transactions
contemplated hereby (other than compliance with the filing and notice requirements set forth in Section 6.3(b)(i)). This Agreement
has been duly executed and delivered by the Buyer Parent and, assuming the due authorization, execution and delivery by each of
the other parties hereto, constitutes a legal, valid and binding obligation of the Buyer Parent enforceable against the Buyer
Parent in accordance with its terms, except as limited by (a) bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
or other similar Laws relating to creditors’ rights generally and (b) general principles of equity, whether such enforceability
is considered in a proceeding in equity or at Law.

 

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6.3 Noncontravention.

 

(a) Neither
the execution and the delivery of this Agreement, nor the consummation of the Acquisition and the other transactions contemplated
by this Agreement, will, with or without the giving of notice or the lapse of time or both, (i) violate any provision of
the certificate of incorporation or bylaws (or comparable organization documents, as applicable) of the Buyer Parent, (ii) violate
any Law applicable to the Buyer Parent on the date hereof or (iii) violate any Contract to which the Buyer Parent is a party,
except in the case of clauses (ii) and (iii) to the extent that any such violation would not reasonably be expected to prevent
or materially delay the consummation of the Acquisition and the other transactions contemplated by this Agreement.

 

(b) The
execution and delivery of this Agreement by the Buyer Parent does not, and the performance of this Agreement by the Buyer Parent
will not, require any consent, approval, authorization or Permit of, or filing with or notification to, any Governmental Entity,
except for (i) the filings set forth in Section 5.3(b) (i) or (ii) where the failure to take such action would not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

6.4 Capitalization.
The authorized capital of Buyer Parent consists, immediately prior to the Closing of Five Hundred Million (500,000,000)
common shares of the Buyer Parent, 3,830,625 shares of which are issued and outstanding immediately prior to the Closing. All
of the outstanding common shares of the Buyer Parent have been duly authorized, are fully paid and nonassessable and were issued
in compliance with all applicable federal and state securities laws. Upon issuance pursuant to this Agreement, the Buyer Shares
will be duly authorized, fully paid and nonassessable and issued in compliance with all applicable federal and state securities
laws. Buyer Parent holds no common shares in its treasury. The rights, privileges and preferences of the common shares of Buyer
Parent are as stated in Buyer Parent’s Second Amended and Restated Operating Agreement and as provided by the Delaware Limited
Liability Company Act.

 

6.5 Brokers’
Fees. The Buyer Parent has no Liability to pay any fees or commissions to any broker, finder or agent with respect to
this Agreement, the Acquisition or the transactions contemplated by this Agreement that could result in any Liability being imposed
on the Sellers or the Company.

 

ARTICLE
VII

COVENANTS

 

7.1 Consents.
The Company will use its commercially reasonable efforts to obtain any required third-party consents to the Acquisition
and the other transactions contemplated by this Agreement in writing from each Person.

 

7.2 Operation
of the Company’s Business. During the period commencing on the date hereof and ending at the earlier of the Closing
and the termination of this Agreement in accordance with Article IX, the Company, except (i) as otherwise contemplated by this
Agreement, (ii) as required by applicable Law or (iii) with the prior written consent of the Buyer (which consent will not be
unreasonably withheld or delayed), will use commercially reasonable efforts to carry on its business in a manner consistent with
past practice and not take any action or enter into any transaction that would result in the following:

 

(a) any
change in the articles of incorporation, as amended or bylaws, as amended, of the Company or any amendment of any material term
of any outstanding security of the Company;

 

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(b) any
issuance or sale of any additional shares of, or rights of any kind to acquire any shares of, any capital stock of any class of
the Company (whether through the issuance or granting of options or otherwise);

 

(c) any
incurrence, guarantee or assumption by the Company of any indebtedness for borrowed money other than in the ordinary course of
business in amounts and on terms consistent with past practice;

 

(d) any
distributions to the Sellers, other than expense reimbursements consistent with past practice;

 

(e) any
change in any method of accounting, accounting principle or accounting practice by the Company which would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

 

(f) except
in the ordinary course of business (i) any adoption or material amendment of any Company Benefit Plan, (ii) any entry into any
collective bargaining agreement with any labor organization or union, (iii) any entry into an employment agreement or (iv) any
increase in the rate of compensation to any employee in an amount that exceeds 10% of such employee’s current compensation;
provided, that the Company may (A) take any such action for employees in the ordinary course of business or pursuant to
any existing Contracts or Company Benefit Plans and (B) adopt or amend any Company Benefit Plan if the cost to such Person of
providing benefits thereunder is not materially increased;

 

(g) except
in the ordinary course of business, any cancellation, modification, termination or grant of waiver of any material Permits or
Contracts to which the Company is a party, which cancellation, modification, termination or grant of waiver would, individually
or in the aggregate, have a Material Adverse Effect;

 

(h) any
change in the Tax elections made by the Company or in any accounting method used by the Company for Tax purposes, where such Tax
election or change in accounting method may have a material effect upon the Tax Liability of the Company for any period or set
of periods, or the settlement or compromise of any material income Tax Liability of the Company;

 

(i) except
in the ordinary course of business, any acquisition or disposition of any business or any material property or asset of any Person
(whether by merger, consolidation or otherwise) by the Company;

 

(j) any
grant of a Lien on any properties and assets of the Company that would have, individually or in the aggregate, a Material Adverse
Effect;

 

(k) any
entry into any agreement or commitment to do any of the foregoing.

 

7.3 Access.
The Company will permit the Buyer and its Representatives to have reasonable access at all reasonable times, and in a manner
so as not to interfere with the normal business operations of the Company, to the premises, properties, personnel, books, records
(including Tax records), Contracts and documents of or pertaining to the Company.

 

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7.4 Transfer
of Cash and Cash Equivalents. On or prior to the Closing, the Company and Sellers will transfer, or cause to be distributed
all cash and cash equivalents of the Company to, among other things, pay any fees owed by Company to brokers or advisors (including
termination fees under any advisory agreement) and any indebtedness for borrowed money; provided, however, that the Company shall
have an amount in cash in its corporate bank account and on hand at its store locations at the Closing that is equal to $91,000
in the aggregate.

 

7.5 Notice
of Developments. The Sellers and the Company will give prompt written notice to the Buyer of any event that would reasonably
be expected to give rise to, individually or in the aggregate, a Material Adverse Effect or would reasonably be expected to cause
a breach of any of its respective representations, warranties, covenants or other agreements contained herein. The Buyer will
give prompt written notice to the Sellers and the Company of any event that could reasonably be expected to cause a breach of
any of its representations, warranties, covenants or other agreements contained herein or could reasonably be expected to, individually
or in the aggregate, prevent or materially delay the consummation of the Acquisition and the other transactions contemplated by
this Agreement. The delivery of any notice pursuant to this Section 7.5 will not limit, expand or otherwise affect the remedies
available hereunder (if any) to the party receiving such notice.

 

7.6 No
Solicitation.

 

(a) The
Sellers and the Company will, and will cause each of their Representatives to, cease immediately any existing discussions regarding
a Transaction Proposal.

 

(b) From
and after the date of this Agreement, without the prior consent of the Buyer, none of the Sellers nor the Company will, nor will
they authorize or permit any of their respective Representatives to, directly or indirectly through another Person to, (i) solicit,
initiate or encourage (including by way of furnishing information), or take any other action designed to facilitate any inquiries,
proposals or offers from any Person that constitute, or would reasonably be expected to constitute, a Transaction Proposal, (ii) participate
in any discussions or negotiations (including by way of furnishing information) regarding any Transaction Proposal or (iii) otherwise
cooperate in any way with, or assist or participate in, facilitate or encourage, any effort or attempt by any other Person to
do or seek any of the foregoing.

 

(c) In
addition, the Sellers shall immediately communicate to the Buyer the terms of any Transaction Proposal received by any of the
Sellers or the Company, or any of their Representatives.

 

7.7 Confidentiality.
Reference is made to that certain Non-Disclosure Agreement, executed by Buyer on April 8, 2020, in connection with this transaction
(the “Confidentiality Agreement”).  Buyer acknowledges and agrees that the Confidentiality Agreement remains
and shall remain in full force and effect and, in addition, covenants and agrees to keep confidential, in accordance with the
provisions of the Confidentiality Agreement, information provided to Buyer pursuant to this Agreement provided; however, that
prior to the Closing, in addition to any exclusions set forth in the Confidentiality Agreement, “Confidential Information”
as defined in the Confidentiality Agreement shall not include information which is disclosed pursuant to Applicable Law, the Securities
Exchange Act of 1934, as amended, and applicable rules and regulations promulgated thereunder.  If this Agreement is, for
any reason, terminated prior to the Closing, the Confidentiality Agreement and the provisions of this Section 7.7 shall nonetheless
continue in full force and effect.

 

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7.8 Taking
of Necessary Action; Further Action; Taxes.

 

(a) Subject
to the terms and conditions of this Agreement, each of the Sellers, the Company and the Buyer will take all such reasonable and
lawful action as may be necessary or appropriate in order to effectuate the Acquisition in accordance with this Agreement as promptly
as practicable.

 

(b) The
Parties shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection with the filing of
any tax returns by or on behalf of the Company and any audit, examination, litigation or other proceeding with respect to the
taxes of either Company. Such cooperation shall include the retention and (upon the other party’s request) the provision
of records and information which are reasonably relevant to any such tax return, audit, litigation or other proceeding.

 

(c) Seller
shall prepare and file or cause to be prepared and filed all income tax returns of the Company for taxable periods ending on the
Closing Date. Buyer shall prepare and file or cause to be prepared and filed all tax returns of the Company, following the Closing
Date.

 

(d) Buyer
shall not, and shall not permit the Company to, (i) amend any tax return filed with respect to any tax year ending on or before
the Closing Date or (ii) make any tax election (including under Internal Revenue Code Section 336(e) and 338(h)(10)) that may
have a retroactive effect to any such year, in each such case without the written consent of the Sellers.

 

(e) The
Sellers shall have reasonable access to the books and records of the Company and shall be entitled to discuss such books and records
with the Buyer and those persons responsible for the preparation thereof post-Closing for the purpose of, without limitation,
claiming any tax credit (including Idaho’s R&D Tax Credit) that may be applicable with respect to any tax year ending
on or before the Closing Date.

 

7.9 Payroll
Protection Plan Loan. Company and Sellers will take all actions necessary to obtain forgiveness of the Payroll Protection
Plan Loan. If the Payroll Protection Plan Loan is not forgiven by the Small Business Administration, Sellers will promptly payoff
the Loan and will indemnify and hold the Buyer harmless of any claims by the Small Business Administration arising out of the
loan to the Company. Buyer agrees to cooperate with Sellers and shall provide all reasonable information regarding the Company
as necessary for Sellers to seek forgiveness of the Payroll Protection Plan Loan.

 

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7.10 Covenant
not to Compete. For a period of three years from and after the Closing (the “Noncompetition
Period”), the Sellers shall not engage directly or indirectly in any business that is competitive with the current
business of the Company (the “Business”) within an area of one hundred miles of any geographic area in
which the Business is conducted or in which the Buyer plans to conduct the Business as of the Closing Date; provided,
however, that no owner of less than 1% of the outstanding stock of any publicly-traded corporation shall be deemed to engage
solely by reason thereof in any of its businesses. During the Noncompetition Period, the Sellers shall not induce or attempt
to induce any customer, or supplier of the Buyer or any affiliate of the Buyer to terminate its relationship with the Buyer
or any Affiliate of the Buyer or to enter into any business relationship to provide or purchase the same or substantially the
same services as are provided to or purchased from the Business which might harm the Buyer or any Affiliate of the Buyer.
During the Noncompetition Period, the Sellers shall not, on behalf of any entity other than the Buyer or an Affiliate of the
Buyer, hire or retain, or attempt to hire or retain, in any capacity any Person who is, or was at any time during the
preceding twelve (12) months, an employee or officer of the Buyer or an Affiliate of the Buyer. If the final judgment of a
court of competent jurisdiction declares that any term or provision of this Section 7.10 is invalid or unenforceable, the
parties agree that the court making the determination of invalidity or unenforceability shall have the power to reduce the
scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any invalid or
unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing
the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified after
the expiration of the time within which the judgment may be appealed.

 

7.12 Financial
Information. The Sellers shall cooperate with the Buyer and the Buyer’s independent certified public accounting
firm in order to enable the Buyer to create audited financial statements prepared in accordance with the GAAP for the two full
fiscal years preceding the Closing Date, by making available the Sellers’ records as they are maintained in the ordinary
course of business and answering reasonable questions.

 

7.13 Disclosure
Schedule. The parties acknowledge and agree that (i) the Sellers and the Company have not yet delivered a definitive
Disclosure Schedule to this Agreement to the Buyer, and (ii) the Buyer has not been provided with copies of, nor had an opportunity
to review, the items to be referred to on the Disclosure Schedule. The Sellers shall deliver (and shall cause the Company to deliver)
to the Buyer all of the schedules, including a definitive Disclosure Schedule to the Agreement, and documents
referred to thereon, in final form within 20 days of the date hereof.  The Buyer shall have 20 days following delivery of
such schedules and such documents in which to terminate this Agreement if the Buyer objects to any information contained
in such schedules or the contents of any such document and Buyer and Sellers cannot agree on mutually satisfactory modifications
thereto.

 

ARTICLE
VIII

CONDITIONS TO OBLIGATIONS TO CLOSE

 

8.1 Conditions
to Obligation of the Buyer. The obligation of the Buyer to consummate the Acquisition is subject to the satisfaction
or waiver by the Buyer of the following conditions:

 

(a) The
representations and warranties of the Sellers set forth in this Agreement will be true and correct in all respects as of the date
of this Agreement and as of the Closing Date (except to the extent such representations and warranties speak as of another date,
in which case such representations and warranties will be true and correct as of such other date), except where the failure of
such representations and warranties to be so true and correct (without giving effect to any limitation as to “materiality”
or “Material Adverse Effect” set forth therein) does not have, and would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect. The Buyer will have received a certificate signed by the Sellers to such effect.

 

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(b) Each
of the Sellers and the Company will have performed all of the covenants required to be performed by it under this Agreement at
or prior to the Closing, except where the failure to perform does not have, and would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect or materially adversely affect the ability of each of the Sellers and the Company
to consummate the Acquisition or perform its other obligations hereunder. The Buyer will have received a certificate signed by
the Sellers to such effect.

 

(c) The
Buyer shall have completed its business, accounting and legal due diligence review of the Company and the Business, its assets
and liabilities, and the results thereof shall be reasonably satisfactory to the Buyer.

 

(d) There
shall not have been any occurrence, event, incident, action, failure to act, or transaction since the date of the Interim Financial
Statements which has had or is reasonably likely to cause a Material Adverse Effect.

 

(e) All
applicable waiting periods (and any extensions thereof) will have expired or otherwise been terminated, and the parties hereto
will have received all other authorizations, consents and approvals of all Governmental Entities in connection with the execution,
delivery and performance of this Agreement and the transactions contemplated hereby.

 

(f) No
temporary, preliminary or permanent restraining Order preventing the consummation of the Acquisition will be in effect.

 

(g) Each
party, as appropriate, shall have obtained any required consents, permits, licenses, approvals or notifications of any lenders,
lessors, suppliers, customers or other third parties for which the Buyer will assume responsibility for properly completing any
and all necessary forms required when applying for and securing any necessary transfers.

 

(h) The
Sellers shall have obtained releases of any liens, charges or encumbrances against any of the assets of the Company, at the Sellers’
expense.

 

(i) The
Buyer shall have received such pay-off letters and releases relating to the indebtedness as it shall have requested, and such
pay-off letters shall be in form and substance satisfactory to it.

 

(j) The
Buyer shall have received from counsel to the Sellers an opinion in form and substance reasonably satisfactory to the Buyer, addressed
to the Buyer and dated as of the Closing Date.

 

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(k) The
Company shall have delivered evidence reasonably satisfactory to the Buyer of the Company’s corporate organization and proceedings
and its existence in the jurisdiction in which it is incorporated, including evidence of such existence as of the Closing.

 

(l) The
Buyer shall have obtained on terms and conditions satisfactory to it all of the financing it needs in order to consummate the
transactions contemplated hereby and fund the working capital requirements of the Company after the Closing.

 

(m) The
Buyer shall have entered into an employment agreement with each of the Sellers. The employment agreements will contain such material
terms and conditions as set forth in Exhibit D attached hereto and incorporated herein by this reference, together with
any other terms and conditions as may be mutually agreed by the Parties.

 

(n) All
actions to be taken by the Sellers in connection with consummation of the transactions contemplated hereby and all certificates,
opinions, instruments, and other documents required to effect the transactions contemplated hereby will be satisfactory in form
and substance to the Buyer.

 

8.2 Conditions
to Obligation of the Sellers. The obligation of the Sellers to consummate the Acquisition is subject to the satisfaction
or waiver by the Sellers of the following conditions:

 

(a) The
representations and warranties of the Buyer set forth in this Agreement will be true and correct in all respects as of the date
of this Agreement and as of the Closing Date (except to the extent such representations and warranties speak as of another date,
in which case such representations and warranties will be true and correct as of such other date), except where the failure of
such representations and warranties to be so true and correct does not adversely affect the ability of the Buyer to consummate
the Acquisition and the other transactions contemplated by this Agreement. The Sellers will have received a certificate signed
on behalf of the Buyer by a duly authorized officer of the Buyer to such effect.

 

(b) The
Buyer will have performed in all material respects all of the covenants required to be performed by it under this Agreement at
or prior to the Closing except such failures to perform as do not materially adversely affect the ability of the Buyer to consummate
the Acquisition and the other transactions contemplated by this Agreement. The Sellers will have received a certificate signed
on behalf of the Buyer by a duly authorized officer of the Buyer to such effect.

 

(c) All
applicable waiting periods (and any extensions thereof) will have expired or otherwise been terminated and the parties hereto
will have received all other authorizations, consents and approvals of all Governmental Entities in connection with the execution,
delivery and performance of this Agreement and the transactions contemplated hereby.

 

(d) No
temporary, preliminary or permanent restraining Order preventing the consummation of the Acquisition will be in effect.

 

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(e) Each
party, as appropriate, shall have obtained any required consents, permits, licenses, approvals or notifications of any Governmental
Entities, lenders, lessors, suppliers, customers or other third parties for which the Buyer will assume responsibility for properly
completing any and all necessary forms required when applying for and securing any necessary transfers.

 

(f) Each
of the Sellers shall have entered into an employment agreement with the Buyer. The employment agreements will contain such material
terms and conditions as set forth in Exhibit D attached hereto and incorporated herein by this reference, together with
any other terms and conditions as may be mutually agreed by the Parties.

 

(g) All
actions to be taken by the Buyer in connection with consummation of the transactions contemplated hereby and all certificates,
opinions, instruments, and other documents required to effect the transactions contemplated hereby will be satisfactory in form
and substance to the Sellers.

 

ARTICLE
IX

TERMINATION; AMENDMENT; WAIVER

 

9.1 Termination
of Agreement. This Agreement may be terminated as follows:

 

(a) by
mutual written consent of the Buyer and the Sellers at any time prior to the Closing;

 

(b) by
either the Buyer or the Sellers if any Governmental Entity will have issued an Order or taken any other action permanently enjoining,
restraining or otherwise prohibiting the transactions contemplated by this Agreement;

 

(c) by
either the Buyer or the Sellers if the Closing does not occur on or before the date that is the ninetieth (90th) day
following the date that the Sellers deliver to the Buyer the Disclosure Schedule as required by Section 7.13; provided
that the right to terminate this Agreement under this Section 9.1(c) will not be available to any party whose breach of any provision
of this Agreement results in the failure of the Closing to occur by such time;

 

(d) by
the Buyer if the Sellers or the Company have breached their respective representations and warranties or any covenant or other
agreement to be performed by it in a manner such that the Closing conditions set forth in Section 8.1(a) or 8.1(b) would not be
satisfied; or

 

(e) by
the Sellers if the Buyer has breached its representations and warranties or any covenant or other agreement to be performed by
it in a manner such that the Closing conditions set forth in Section 8.2(a) or 8.2(b) would not be satisfied.

 

9.2 Effect
of Termination. In the event of termination of this Agreement by either the Sellers or the Buyer as provided in Section 9.1,
this Agreement will forthwith become void and have no effect, without any Liability (other than with respect to any suit for breach
of this Agreement) on the part of the Buyer, the Buyer Parent, the Company or the Sellers (or any stockholder, agent, consultant
or Representative of any such party); provided, that the provisions of Sections 11.1, 11.6, 11.7, 11.8, 11.11, 11.13 and
this Section 9.2 will survive any termination hereof pursuant to Section 9.1.

 

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9.3 Amendments.
This Agreement may not be amended except by an instrument in writing signed on behalf of the Buyer, the Company and the
Sellers.

 

9.4 Waiver.
At any time prior to the Closing, the Buyer may (a) extend the time for the performance of any of the covenants, obligations
or other acts of the Sellers and the Company or (b) waive any inaccuracy of any representations or warranties or compliance
with any of the agreements, covenants or conditions of the Sellers or any conditions to its own obligations. Any agreement on
the part of the Buyer to any such extension or waiver will be valid only if such waiver is set forth in an instrument in writing
signed on its behalf by its duly authorized officer. At any time prior to the Closing, the Sellers and the Company, may (a) extend
the time for the performance of any of the covenants, obligations or other acts of the Buyer or (b) waive any inaccuracy
of any representations or warranties or compliance with any of the agreements, covenants or conditions of the Buyer or any conditions
to their own obligations. Any agreement on the part of the Sellers and the Company to any such extension or waiver will be valid
only if such waiver is set forth in an instrument in writing signed by the Sellers and the Company. The failure of any party to
this Agreement to assert any of its rights under this Agreement or otherwise will not constitute a waiver of such rights. The
waiver of any such right with respect to particular facts and other circumstances will not be deemed a waiver with respect to
any other facts and circumstances, and each such right will be deemed an ongoing right that may be asserted at any time and from
time to time.

 

ARTICLE
X

INDEMNIFICATION

 

10.1 Survival.
The representations and warranties made herein and in any certificate delivered in connection herewith shall survive for a
period of twenty-four (24) months following the Closing Date, at which time they shall expire; provided, however, that (i)
the representations and warranties set forth in Sections  3.1 (Authority and Enforceability), 3.3 (The Shares), 3.4
(Broker’s Fees), 4.1 (Organization, Qualification and Corporate Power; Authority and Enforceability), 4.3
(Capitalization), 4.17 (Environmental), 5.1 (Organization), 5.2 (Authorization), 5.3 (Noncontravention), 6.1 (Organization),
6.2 (Authorization), 6.3 (Noncontravention) and 6.4 (Capitalization) of this Agreement (the “Fundamental
Representations”) shall survive indefinitely and (ii) the representations and warranties in Section 4.6 (Taxes) of
this Agreement shall survive until the expiration of the applicable statute of limitations. If written notice of a claim has
been given prior to the expiration of the applicable representations and warranties, then notwithstanding any statement
herein to the contrary, the relevant representations and warranties shall survive as to such claim, until such claim is
finally resolved. Unless a specified period is set forth in this Agreement (in which event such specified period will
control), all agreements and covenants contained in this Agreement will survive the Closing and remain in effect
indefinitely.

 

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10.2 Indemnification
by Sellers. From and after the Closing, the Sellers agree, severally and not jointly, to indemnify, defend and save Buyer
and its Affiliates, stockholders, officers, directors, employees, agents and representatives (each, a “Buyer
Indemnified Party” and collectively, the “Buyer Indemnified Parties”) harmless from and against
any and all liabilities, deficiencies, demands, claims, Actions, assessments, losses, costs, expenses, interest, fines,
penalties and damages (including fees and expenses of attorneys and accountants and costs of investigation) (individually and
collectively, the “Losses”) suffered, sustained or incurred by any Buyer Indemnified Party arising out of
or otherwise by virtue of: (a) any breach of any of the representations or warranties of the Sellers or the Company contained
in Article III or IV of this Agreement or (b) the failure of the Sellers to perform any of his or her covenants or
obligations contained in this Agreement.

 

10.3 Indemnification
by Buyer. From and after the Closing, the Buyer agrees to indemnify, defend and save the Sellers and to the extent applicable,
the Sellers’ Affiliates, employees, agents and representatives (each, a “Seller Indemnified Party” and
collectively the “Seller Indemnified Parties”) harmless from and against any and all Losses sustained or incurred
by any Seller Indemnified Party arising out of or otherwise by virtue of: (a) any breach of any of the representations and
warranties of Buyer contained in Article V and VI of this Agreement or (b) the failure of Buyer to perform any of its covenants
or obligations contained in this Agreement.

 

10.4 Indemnification
Procedure.

 

(a) If
a Buyer Indemnified Party or a Seller Indemnified Party seeks indemnification under this Article X, such party (the “Indemnified
Party”) shall give written notice to the other party (the “Indemnifying Party”) of the facts and
circumstances giving rise to the claim. In that regard, if any Action, Liability or obligation shall be brought or asserted by
any third party which, if adversely determined, would entitle the Indemnified Party to indemnity pursuant to this Article X
(a “Third-Party Claim”), the Indemnified Party shall promptly notify the Indemnifying Party of such Third-Party
Claim in writing, specifying the basis of such claim and the facts pertaining thereto, and the Indemnifying Party, if the Indemnifying
Party so elects, shall assume and control the defense thereof (and shall consult with the Indemnified Party with respect thereto),
including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all necessary expenses.
If the Indemnifying Party elects to assume control of the defense of a Third-Party Claim, the Indemnified Party shall have the
right to employ counsel separate from counsel employed by the Indemnifying Party in any such action and to participate in the
defense thereof, but the fees and expenses of such counsel employed by the Indemnified Party shall be at the expense of the Indemnified
Party unless (i) the Indemnifying Party has been advised by the Indemnifying Party’s counsel that a reasonable likelihood
exists of a conflict of interest between the Indemnifying Party and the Indemnified Party, or (ii) the Indemnifying Party
has failed to assume the defense and employ counsel; in which case the fees and expenses of the Indemnified Party’s counsel
shall be paid by the Indemnifying Party. All claims other than Third-Party Claims (a “Direct Claim”) may be
asserted by the Indemnified Party giving notice to the Indemnifying Party. Absent an emergency or other extenuating circumstance,
the Indemnified Party shall give written notice to the Indemnifying Party of such Direct Claim prior to taking any material actions
to remedy such Direct Claim.

 

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(b) In
no event shall the Indemnified Party pay or enter into any settlement of any claim or consent to any judgment with respect to
any Third-Party Claim without the prior written consent of the Indemnifying Party (which consent shall not be unreasonably withheld,
conditioned or delayed) if such settlement or judgment would require the Indemnifying Party to pay any amount. The Indemnifying
Party may enter into a settlement or consent to any judgment without the consent of the Indemnified Party so long as (i) such
settlement or judgment involves monetary damages only and (ii) a term of the settlement or judgment is that the Person or Persons
asserting such Third-Party Claim unconditionally release all Indemnified Parties from all liability with respect to such claim;
otherwise the consent of the Indemnified Party shall be required in order to enter into any settlement of, or consent to the entry
of a judgment with respect to, any Third-Party Claim, which consent shall not be unreasonably withheld, conditioned or delayed.

 

10.5 Failure
to Give Timely Notice. A failure by an Indemnified Party to provide notice as provided in Section 10.4 will not
affect the rights or obligations of any Person except and only to the extent that, as a result of such failure, any Person entitled
to receive such notice was damaged as a result of such failure to give timely notice. Nothing contained in this Section 10.4 shall
be deemed to extend the period for which Sellers’ representations and warranties will survive Closing as set forth in Section
10.1 above.

 

10.6 Limited
on Indemnification Obligation. Notwithstanding anything in this Agreement to the contrary, the liability of the Sellers
to the Buyer Indemnified Parties with respect to claims for indemnification pursuant to Section 10.2(a) (but not with respect
to the Fundamental Representations for which recovery shall not be so limited) is subject to the following
limitations:

 

(a) The
Sellers shall not, in the aggregate, be liable to the Buyer Indemnified Parties for Losses arising under Section 10.2(a) (other
than with respect to acts of fraud or the Fundamental Representations for which recovery shall not be so limited) to the extent
that the amounts otherwise indemnifiable for such breaches exceeds the Purchase Price.

 

(b) The
Sellers shall not be liable to the Buyer Indemnified Parties for Losses arising under Section 10.2(a) (other than with respect
to acts of fraud or Fundamental Representations for which recovery shall not be so limited) until and unless the aggregate amounts
indemnifiable for such breaches exceeds $25,000. In the event the Buyer Indemnified Parties’ claim for Losses, in the aggregate,
exceed $25,000, the Buyer Indemnified Parties shall be entitled to the entire amount of such Losses back to the first dollar.

 

(c) The
Sellers shall not be liable to the Buyer Indemnified Parties for Losses arising under Section 10.2 unless the claim therefor is
asserted in writing on or prior to the expiration of the applicable representations and warranties.

 

(d) Losses
otherwise subject to indemnity hereunder will be calculated after application of any received insurance proceeds actually received
by the Indemnitee (net of costs of recovery).

 

10.7 Payments.
Payments of all amounts owing by an Indemnifying Party under this Article X shall be made promptly upon the determination
in accordance with this Article X that an indemnification obligation is owing by the Indemnifying Party to the Indemnified Party.

 

    31

     

    

 

ARTICLE
XI

MISCELLANEOUS

 

11.1 Press
Releases and Public Announcement. Neither the Buyer on the one hand, nor the Sellers or the Company on the other, will
issue any press release or make any public announcement relating to this Agreement, the Acquisition or the other transactions
contemplated by this Agreement without the prior written approval of the other party; provided, however, that the Buyer may make
regulatory filings referring to this Agreement or attaching a copy hereof as may be required by applicable law.

 

11.2 No
Third-Party Beneficiaries. This Agreement will not confer any rights or remedies upon any Person other than the parties
hereto and their respective successors and permitted assigns.

 

11.3 Entire
Agreement. This Agreement (including the Exhibits and the Schedules hereto) constitutes the entire agreement among the
parties hereto and supersedes any prior understandings, agreements or representations by or among the parties hereto, written
or oral, to the extent they related in any way to the subject matter hereof.

 

11.4 Succession
and Assignment. This Agreement will be binding upon and inure to the benefit of the parties named herein and their respective
successors and permitted assigns. No party hereto may assign either this Agreement or any of its rights, interests or obligations
hereunder without the prior written approval, in the case of assignment by the Buyer, by the Sellers, and, in the case of assignment
by the Sellers or the Company, the Buyer.

 

11.5 Construction.
The parties have participated jointly in the negotiation and drafting of this Agreement, and, in the event an ambiguity
or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties, and no
presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any of the provisions
of this Agreement.

 

11.6 Notices.
All notices and other communications that are required or permitted to be given to the parties under this Agreement shall
be sufficient in all respects if given in writing and delivered in person, by electronic mail, by telecopy, by overnight courier,
or by certified mail, postage prepaid, return receipt requested, to the receiving party at the address specified below or to such
other address as such party may have given to the other by notice pursuant to this Section. Notice shall be deemed given on the
date of delivery, in the case of personal delivery, electronic mail, or telecopy, or on the delivery or refusal date, as specified
on the return receipt in the case of certified mail or on the tracking report in the case of overnight courier.

 

	 	If to
    the Buyer:	1847
    Cabinets Inc.
	 	 	c/o 1847 Holdings
    LLC
	 	 	590 Madison Avenue,
    21st Floor
	 	 	New York, NY 10022
	 	 	Attn: Ken Yuan,
    CEO
	 	 	Email: kyyuan@gmail.com

 

    32

     

    

 

	 	If to the Buyer
    Parent:	1847 Holdings LLC
	 	 	590 Madison Avenue,
    21st Floor
	 	 	New York, NY 10022
	 	 	Attn: Ellery W.
    Roberts, CEO
	 	 	Email: eroberts@1847holdings.com
	 	 	 
	 	with a copy to:	Bevilacqua PLLC
	 	 	1050 Connecticut
    Avenue, NW
	 	 	Suite 500
	 	 	Washington, DC 20036
	 	 	Attn: Louis A. Bevilacqua
	 	 	Email: lou@bevilacquapllc.com
	 	 	Facsimile: 202-869-0889
	 	 	 
	 	If to the Company:	Kyle’s Custom
    Wood Shop, Inc.
	 	 	2950 E. Lucca Dr.
	 	 	Meridian, Id 83642
	 	 	Attn: Stephen Mallatt,
    Jr.
	 	 	Email: steve@kylescabinets.com
	 	 	 
	 	with a copy to:	Hawley Troxell
	 	 	877 W. Main Street,
    10th Floor
	 	 	Boise, ID 83702
	 	 	Attn: Paul Street
	 	 	Email: pstreet@hawleytroxell.com
	 	 	Facsimile: 208-954-5938
	 	 	 
	 	If to the Sellers:	Stephen Mallatt,
    Jr.
	 	 	2950 E. Lucca Dr.
	 	 	Meridian, Id 83642
	 	 	Email: steve@kylescabinets.com
	 	 	 
	 	with a copy to:	Hawley Troxell
	 	 	877 W. Main Street,
    10th Floor
	 	 	Boise, ID 83702
	 	 	Attn: Paul Street
	 	 	Email: pstreet@hawleytroxell.com
	 	 	Facsimile: 208-954-5938

 

Any
party may change the address to which notices, requests, demands, claims and other communications hereunder are to be delivered
by giving the other parties notice in the manner set forth herein.

 

11.7 Governing
Law. This Agreement will be governed by, and construed in accordance with, the Laws of the State of Idaho without giving
effect to any choice of Law or conflict of Law provision or rule that would cause the application of the Laws of any jurisdiction
other than the State of Idaho.

 

    33

     

    

 

11.8 Consent
to Jurisdiction and Service of Process.  EACH OF THE PARTIES HERETO CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL
COURT LOCATED WITHIN THE STATE OF IDAHO AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS RELATING TO THIS AGREEMENT, THE
ACQUISITION OR THE OTHER TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT MAY BE LITIGATED IN SUCH COURTS. EACH OF THE PARTIES HERETO
ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION
OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY FINAL
AND NONAPPEALABLE JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT, THE ACQUISITION OR THE OTHER TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT. EACH OF THE PARTIES HERETO FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO
SUCH PARTY AT THE ADDRESS SPECIFIED IN THIS AGREEMENT, SUCH SERVICE TO BECOME EFFECTIVE 15 CALENDAR DAYS AFTER SUCH MAILING. NOTHING
HEREIN WILL IN ANY WAY BE DEEMED TO LIMIT THE ABILITY OF ANY PARTY HERETO TO SERVE ANY SUCH LEGAL PROCESS, SUMMONS, NOTICES AND
DOCUMENTS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW OR TO OBTAIN JURISDICTION OVER OR TO BRING ACTIONS, SUITS OR PROCEEDINGS
AGAINST ANY OTHER PARTY HERETO IN SUCH OTHER JURISDICTIONS, AND IN SUCH MANNER, AS MAY BE PERMITTED BY ANY APPLICABLE LAW.

 

11.9 Headings.
The descriptive headings contained in this Agreement are included for convenience of reference only and will not affect
in any way the meaning or interpretation of this Agreement.

 

11.10 Severability.
If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future Law (a) such
provision will be fully severable, (b) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a part hereof, (c) the remaining provisions of this Agreement will remain in full force and effect
and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom and (d) in lieu of such
illegal, invalid or unenforceable provision, there will be added automatically as a part of this Agreement a legal, valid and
enforceable provision as similar in terms of such illegal, invalid or unenforceable provision as may be possible.

 

11.11 Expenses.
Except as otherwise provided in this Agreement, whether or not the Acquisition is consummated, all expenses incurred in
connection with this Agreement and the transactions contemplated hereby will be paid by the party incurring such expenses. As
used in this Agreement, “expenses” means the out-of-pocket fees and expenses of the financial advisor, counsel and
accountants incurred in connection with this Agreement and the transactions contemplated hereby.

 

    34

     

    

 

11.12 Incorporation
of Exhibits and Schedules. The Exhibits and Schedules identified in this Agreement are incorporated herein by reference
and made a part hereof.

 

11.13 Specific
Performance. The parties hereto agree that irreparable damage would occur in the event that any provision of this Agreement
was not performed in accordance with the terms hereof and that the parties will be entitled to specific performance of the terms
hereof in addition to any other remedy at Law or equity.

 

11.14 Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including
pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for
all purposes.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    35

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

 

	 	BUYER:
	 	 
	 	1847
    Cabinets Inc.
	 	 	 
	 	By:	/s/
Ken Yuan
	 	Name: 	Ken Yuan
	 	Title:	CEO
	 	 	 
	 	BUYER PARENT:
	 	 
	 	1847
    Holdings LLC
	 	 	 
	 	By:	/s/
Ellery W. Roberts
	 	Name:	Ellery W. Roberts
	 	Title:	CEO
	 	 	 
	 	COMPANY:
	 	 
	 	Kyle’s
    Custom Wood Shop, Inc.
	 	 	 
	 	By:	/s/
    Stephen Mallatt, Jr.
	 	Name:	Stephen Mallatt, Jr.
	 	Title:	President and CEO
	 	 	 
	 	SELLERS:
	 	 	 
	 	/s/
    Stephen Mallatt, Jr.
	 	Name:	Stephen Mallatt,
    Jr.
	 	 	 
	 	/s/
    Rita Mallatt
	 	Name:	Rita Mallatt

 

     

     

    

 

Exhibit
A

List
of Sellers

 

	Name of Seller	 	Number of Shares	 	 	Percent Ownership	 	 	Number of Buyer Shares to be Received	 	 	Principal Amount of Seller Note to be Received	 
	Stephen Mallatt, Jr. and Rita Mallatt, husband and wife	 	 	1000	 	 	 	100	%	 	 	700,000	 	 	$	1,050,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Totals	 	 	1000	 	 	 	100	%	 	 	700,000	 	 	$	1,050,000	 

 

    Ex A-1

     

    

 

Exhibit
B

Example
of Net Working Capital Calculation

 

Working
Capital Adjustment (Example)

All
Balance Sheet Balances are after Final GAAP Adjustments

 

	 	 	Balance

 as of

 8/30/20	 	 	Cash 

Adjustment	 	 	Adjusted 

Balance 

as of 

8/31/20	 
	Cash	 	 	542,758	 	 	 	(451,758	)(1)	 	 	91,000	 
	Account Receivable	 	 	380,892	 	 	 	 	 	 	 	380,892	 
	Prepaid Expenses	 	 	7,464	 	 	 	 	 	 	 	7,464	 
	inventory	 	 	4,763	 	 	 	 	 	 	 	4,763	 
	Contact: Costs In Excess of Billings	 	 	117,705	 	 	 	 	 	 	 	117,705	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Current Assets	 	 	1,053,582	 	 	 	 	 	 	 	601,824	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Payable	 	 	186,082	 	 	 	 	 	 	 	186,082	 
	Credit Cards	 	 	2,288	 	 	 	 	 	 	 	2,288	 
	Deferred Revenue	 	 	2,500	 	 	 	 	 	 	 	2,500	 
	Accrued Payroll	 	 	16,200	 	 	 	 	 	 	 	16,200	 
	Accrued Payroll Liabilities	 	 	12,348	 	 	 	 	 	 	 	12,348	 
	Contact: Billings in Excess of Costs	 	 	59,921	 	 	 	 	 	 	 	59,921	 
	Line of Credit (Outstanding)	 	 	-	 	 	 	 	 	 	 	-	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Current Liabilities	 	 	279,339	 	 	 	 	 	 	 	279,339	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Working Capital	 	 	774,243	 	 	 	(451,758	)(1)	 	 	322,485	 

 

(1)
– Adjustment to pay excess cash to Sellers and leave minimum of $91,000 on hand to cover initial expenses after closing.
Seller will pay their portion of the transactional costs of the Acquisition thru the Company effective on or before the closing
date.

 

Final
Working Cabinet Adjustment Calculation

 

	Adjusted Working Capital Balance (after Cash Adjustment)	 	 	322,485	 
	Net Working Capital Target per Stock Purchase Agreement	 	 	(154,000	)
	Excess (Deficit) of Closing Working Cabinet to Target Working Capital	 	 	168,458	 

 

    Ex B-1

     

    

 

Exhibit
C

Form
of Seller Note

 

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR
AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE
STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

1847
CABINETS INC.

 

8%
VESTING PROMISSORY NOTE

 

	Up
    to $1,260,000	______________,
    2020

 

FOR
VALUE RECEIVED, 1847 Cabinets Inc., a Delaware corporation (the “Company”), promises to pay to Stephen
Mallatt, Jr. and Rita Mallatt, each in his and her capacity as a Seller (collectively, the “Holder”), subject
to Section 4 below, the principal sum of One Million, Fifty Thousand Dollars ($1,050,000.00), as adjusted as set forth herein
(the “Principal”) in lawful money of the United States of America, with interest payable on the Vested portion
of Principal at the rate of eight percent (8%) per annum. To the extent Vested, the unpaid Principal and all accrued but unpaid
interest on such Vested portion of Principal shall be paid in full to the Holder on the last day of the thirty-sixth (36th)
month following the date of this Note (the “Maturity Date”).

 

Capitalized
terms used herein but not defined herein shall have the meaning ascribed to them in that certain Stock Purchase Agreement, dated
August 27, 2020, (the “Purchase Agreement”), among the Company, the Holder and Kyle’s Custom Wood Shop,
Inc., an Idaho corporation (“Kyle’s”), and 1847 Holdings LLC, a Delaware limited liability company (“Buyer
Parent”), pursuant to which the Company is acquiring the Shares from the Holder.

 

The
following is a statement of the rights of the Holder of this Note and the terms and conditions to which this Note is subject,
and to which the Holder, by acceptance of this Note, agrees:

 

1.
Principal Repayment. If, and to the extent, that the Principal is Vested, the Vested portion of the Principal along with
all accrued, but unpaid interest on the Vested portion of the Principal, shall be paid in one lump sum on the Maturity Date.

 

2.
Interest. Interest (the “Interest”) shall accrue on the unpaid Vested portion of Principal from the
date of issuance of this Note until such Vested portion of Principal is repaid in full at the simple rate of eight percent (8%)
per annum. The portion of accrued, but unpaid, Interest on the Vested portion of the Principal is payable at Maturity. All computations
of the Interest rate hereunder shall be made on the basis of a 360-day year of twelve 30-day months. In the event that any Interest
rate provided for herein shall be determined to be unlawful, such Interest rate shall be computed at the highest rate permitted
by applicable law. Any payment by the Company of any Interest amount in excess of that permitted by law shall be considered a
mistake, with the excess being applied to the Principal of this Note without prepayment premium or penalty.

 

    Ex C-1

     

    

 

3.
Redemption. The Company will have the right to redeem all but no less than all of the Note at any time prior to the Maturity
Date pursuant to the terms of this Note. Notwithstanding anything to contrary in this Note, if the Company elects to redeem, the
redemption price will be payable in cash and is equal to the then outstanding Vested portion of the Principal plus any remaining
unvested Principal amount of this Note plus accrued but unpaid Interest thereon (calculated over 36 months). For purposes of this
Section 3, the “unvested Principal amount” shall be $350,000.00 per year. By way of example: if the Company elects
to redeem this Note on January 25, 2021, the Company shall pay the Vested Principal amount for year 2020, calculated as of December
31, 2020 pursuant to Section 4 below, plus $700,000 ($350,000 x 2), plus all accrued but unpaid interest on the sum total (calculated
over 36 months).

 

4.
Vesting.

 

(a)
General. The payment of the Principal and accrued Interest thereon is subject to vesting in accordance with this Section
4. The Company shall only be required to pay the Vested portion of the Principal and Interest on the Vested portion of the Principal
on the Maturity Date. For purposes of this Note, “Vested” means the percentage of the Principal that has vested
(i.e., has become payable to the Holder) in accordance with this Section 4.

 

(b)
Calculation. The Vested Principal of the Note due at the Maturity Date shall be calculated each year based on the average
annual consolidated EBITDA of the Company for each of the years ended December 31, 2020, 2021 and 2022. The EBITDA for each year
shall be divided by $1.4 million multiplied by 100 to obtain the vested CSN percentage (the “Vested CSN Percentage”).
The Vested Principal for each year shall be equal to the Vested CSN Percentage for that year multiplied by $350,000.00. To the
extent that the Vested CSN Percentage for the subject year is less than 80%, no portion of the Note for that year shall vest.
To the extent that the Vested CSN Percentage for the subject year is equal to or greater than 120%, the Vested Principal shall
be equal to $420,000.00 for that year and no more. For the avoidance of doubt and for purposes of illustration an example vesting
calculation is attached hereto as Exhibit A.

 

(c)
For purposes of this Section 4, “EBITDA” means the earnings before interest, taxes, depreciation and amortization
expenses, in accordance with generally accepted accounting principles applied on a basis consistent with the accounting policies,
practices and procedures used to prepare the Company’s financial statements as of the Closing Date, which shall include
any state and federal tax credits (including any research and development tax credit) received on behalf of the Company and, which
shall exclude i) any management fees or transition expenses payable to Buyer Parent or any subsidiary or affiliate of Buyer Parent
and the salaries, independent contractor payments, transition expenses of any additional management personnel in addition to Seller
collectively in excess of $130,000 per annum, and ii) all fees, charges, commissions, and expenses in any way related to the Acquisition.

 

    Ex C-2

     

    

 

5.
Events of Default. In the event that any of the following (each, an “Event of Default”) shall occur:

 

(a)
Non-Payment. The Company shall default in the payment of the Vested portion of the Principal of, or accrued Interest on
the Vested portion of Principal of, this Note as and when the same shall become due and payable, whether by acceleration or otherwise;
or

 

(b)
Default in Covenants. The Company shall default in any material manner in the observance or performance of any covenants
or agreements set forth in the Purchase Agreement, this Note, or any other agreement entered into on connection with the transactions
contemplated by the Purchase Agreement (collectively, the “Transaction Documents”); or

 

(c)
Breach of Representations and Warranties. The Company materially breaches any representation or warranty contained in the
Transaction Documents; or

 

(d)
Illegality of Note. Any court of competent jurisdiction issues an order declaring the Note or any provision thereunder
to be illegal; or

 

(e)
Bankruptcy. The Company shall: (i) admit in writing its inability to pay its debts as they become due; (ii) apply for,
consent to, or acquiesce in, the appointment of a trustee, receiver, sequestrator or other custodian for the Company or any of
its property, or make a general assignment for the benefit of creditors; (iii) in the absence of such application, consent or
acquiesce in, permit or suffer to exist the appointment of a trustee, receiver, sequestrator or other custodian for the Company
or for any part of its property; or (iv) permit or suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement
or other case or proceeding under any bankruptcy or insolvency law, or any dissolution, winding up or liquidation proceeding,
in respect of the Company, and, if such case or proceeding is not commenced by the Company or converted to a voluntary case, such
case or proceeding shall be consented to or acquiesced in by the Company or shall result in the entry of an order for relief;
or

 

(f) Change
of Control. There is a change of control of the Company by reason of the sale of 51% or more of the stock of the Company
or a sale of substantially all the assets of the Company then, and so long as such Event of Default is continuing for a
period of two (2) business days in the case of non-payment under Section 5(a) or for a period of thirty (30) calendar days in
the case of events under Sections 5(b) through 5(d) (and the event which would constitute such Event of Default, if curable,
has not been cured), by written notice to the Company from the Holder, all obligations of the Company under this Note shall
be immediately due and payable without presentment, demand, protest or any other action nor obligation of the Holder of any
kind, all of which are hereby expressly waived, and Holder may exercise any other remedies the Holder may have at law or in
equity. If an Event of Default specified in Section 5(e) above occurs, the Vest portion of the Principal of, and accrued
Interest thereon, shall automatically, and without any declaration or other action on the part of any Holder, become
immediately due and payable.

 

    Ex C-3

     

    

 

6.
Affirmative Covenants of the Company. The Company hereby agrees that, so long as the Note remains outstanding and unpaid,
or any other amount is owing to the Holder hereunder, the Company will:

 

(a)
Corporate Existence and Qualification. Take the necessary steps to preserve its corporate existence and its right to conduct
business in all states in which the nature of its business requires qualification to do business;

 

(b)
Compliance with Law. Comply with the charter and bylaws or other organizational or governing documents of the Company,
and any law, treaty, rule or regulation, or determination of an arbitrator or a court or other governmental authority, in each
case applicable to or binding upon the Company or any of its property or to which each of the Company or any of its properties
is subject;

 

(c)
Taxes. Duly pay and discharge all taxes or other claims, which might become a lien upon any of its property except to the
extent that any thereof are being in good faith appropriately contested with adequate reserves provided therefor;

 

(d)
Further Assurances. The Company shall execute and deliver any and all such further documents and take any and all such
other actions as may be reasonably necessary or appropriate to carry out the intent and purposes of this Note and to consummate
the transactions contemplated herein.

 

7.
Subordination.

 

(a)
All claims of the Holder to the Principal, Interest, and any other amounts at any time owed under this Note (collectively, “Junior
Indebtedness”) is hereby expressly subordinated in right of payment, as herein set forth, to the prior payment in full
of all Senior Indebtedness (as defined below). No payment under Junior Indebtedness shall be made by the Company, nor shall the
Holder exercise any remedies under the Junior Indebtedness (including taking any legal action (whether judicial or otherwise)
to collect the Junior Indebtedness), if, at the time of such payment, exercise or immediately after giving effect thereto, (i)
there shall exist any “Default” or “Event of Default” under any agreements governing any of the Senior
Indebtedness or (ii) the maturity of any of the Senior Indebtedness has been accelerated and such acceleration has not been waived
or such Senior Indebtedness has not been paid in full; provided, however, that (x) in the event that the holder of any Senior
Indebtedness accelerates such Senior Indebtedness, then the Holder may accelerate the indebtedness evidenced by this Note, and
(y) if the Company is permitted under the terms of the Senior Indebtedness to pay an amount due and owing under this Note and
fails to make such payment, then so long as the terms of the Senior Indebtedness do not prohibit such action, the Holder may exercise
its rights to be paid such amount, but only such amount (and Holder shall not be permitted to accelerate hereunder).

 

    Ex C-4

     

    

 

(b)
Upon any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to
creditors upon any dissolution or winding up or total or partial liquidation or reorganization of the Company, whether voluntary
or involuntary or in bankruptcy, insolvency, receivership or other proceedings, all Senior Indebtedness of the Company shall first
be paid in full, or payment thereof provided for in money, before any payment is made under Junior Indebtedness; and upon any
such dissolution or winding up or liquidation or reorganization, any distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the Holder as holder of the Junior Indebtedness would be entitled except for
the provisions hereof, shall be paid by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other
person making such payment or distribution, or by the Holder if received by Holder, directly to the holder of the Senior Indebtedness,
or its representatives, to the extent necessary to pay all such Senior Indebtedness in full, in money, after giving effect to
any concurrent prepayment or distribution to or for the benefit of the holders of such Senior Indebtedness, before any payment
or distribution is made to the Holder with respect to the Junior Indebtedness.

 

(c)
If the holders of the Senior Indebtedness in good faith believe Holder may fail to timely file a proof of claim in any such proceeding,
the holder(s) of the Senior Indebtedness may do so for Holder.

 

(d)
In the event that any payment or distribution of assets of the Company of any kind or character, whether in cash, property or
securities, prohibited by the foregoing shall be received by the Holder before all the Senior Indebtedness is paid in full, or
provisions made for such payment, in accordance with its terms, such payment or distribution shall be held for the benefit of,
and shall be paid over or delivered to, the holders of the Senior Indebtedness or their representative or representatives, as
their respective interests may appear, for application to the payment of all the Senior Indebtedness remaining unpaid to the extent
necessary to pay all such Senior Indebtedness in full, in money, in accordance with its terms, after giving effect to any concurrent
payment or distribution to or for the holders of such Senior Indebtedness.

 

(e)
The provisions hereof are solely for the purpose of defining the relative rights of the holders of the Senior Indebtedness on
the one hand and the Holder as holder of the Junior Indebtedness on the other hand, and nothing herein shall impair, as between
the Company and the Holder, the obligations of the Company under the Junior Indebtedness, which are unconditional and absolute.
With this in mind, notwithstanding the other provisions of this Section 7, if and so long as all documents governing the Senior
Indebtedness permit one of the actions restricted by this Section 7, the restriction shall be waived and the restricted action
permitted hereunder.

 

(f)
No right of any present or future holder of any Senior Indebtedness to enforce the subordination as herein provided shall at any
time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or any act or failure to act,
in good faith, by any such holder of the Senior Indebtedness, or any noncompliance by the Company with the terms, provisions and
covenants hereof, regardless of any knowledge thereof any holder of the Senior Indebtedness may have or be otherwise charged with.
Without in any way limiting the generality of the foregoing, the holders of the Senior Indebtedness may, at any time and from
time to time, without the consent of or notice to the Holder, without incurring responsibility to the Holder and without impairing
or releasing the subordination provided in this Note or the obligations hereunder of the Holder to the holders of the Senior Indebtedness,
do any one or more of the following: (i) change the manner, place or terms of payment or extend the time of payment of, or create,
renew or alter, the Senior Indebtedness, or otherwise amend or supplement in any manner the Senior Indebtedness or any instrument
evidencing the same or any agreement under which the Senior Indebtedness is outstanding; (ii) sell, exchange, release or otherwise
deal with any property pledged, mortgaged or otherwise securing the Senior Indebtedness; (iii) release any person liable or contingently
liable in any manner for the payment or collection of the Senior Indebtedness; and/or (iv) exercise or refrain from exercising
any rights against the Company or any other person.

 

    Ex C-5

     

    

 

(g)
Each holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance
of this Note, shall be entitled to rely on the subordination provisions set forth in this Note.

 

(h)
Notwithstanding the provisions of this Section 7, the Holder shall not be charged with knowledge of the existence of facts which
would prohibit the making of any payments on the Junior Indebtedness unless and until the holder(s) of the Senior Indebtedness
or their representatives send written notice to Holder of same.

 

(i)
Subject to the payment in full of all the Senior Indebtedness, Holder as holder of the Junior Indebtedness shall be subrogated
to the rights of the holders of the Senior Indebtedness to receive payments or distributions of assets of the Company applicable
to the Senior Indebtedness until the Senior Indebtedness shall be paid in full.

 

(j)
The Holder shall confirm (in writing) the above subordination provisions if requested by any holder of the Senior Indebtedness,
and shall execute and deliver such additional subordination agreements, consistent with the foregoing as any holder of Senior
Indebtedness may require.

 

(k)
For purposes hereof, “Senior Indebtedness” means, with respect to the Company, all indebtedness of the Company,
whether outstanding on the date of the execution of this Note or thereafter created, to banks, insurance companies, other financial
institutions, private equity funds, hedge funds or other similar funds, unless in the instrument creating or evidencing such indebtedness
it is provided that such indebtedness is not senior in right of payment to this Note. Senior Indebtedness shall also include indebtedness
for taxes owed to federal or state agencies and other indebtedness of the Company, as the case may be, that by operation of law
has a right that is senior to the Junior Indebtedness.

 

8.
Mutilated, Destroyed, Lost or Stolen Note. If this Note shall become mutilated or defaced, or be destroyed, lost or stolen,
the Company shall execute and deliver a new note of like Principal amount in exchange and substitution for the mutilated or defaced
Note, or in lieu of and in substitution for the destroyed, lost or stolen Note. In the case of a mutilated or defaced Note, the
Holder shall surrender such Note to the Company. In the case of any destroyed, lost or stolen Note, the Holder shall furnish to
the Company: (i) evidence to its satisfaction of the destruction, loss or theft of such Note and (ii) such security or indemnity
(which shall not include the posting of any bond) as may be reasonably required by the Company to hold the Company harmless.

 

    Ex C-6

     

    

 

9.
Waiver of Demand, Presentment, etc. The Company hereby expressly waives demand and presentment for payment, notice of nonpayment,
protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence
in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all
sums owing and to be owing hereunder, regardless of and without any notice, diligence, act or omission as or with respect to the
collection of any amount called for hereunder. The Company agrees that, in the event of an Event of Default, to reimburse the
Holder for all reasonable costs and expenses (including reasonable legal fees of one counsel) incurred in connection with the
enforcement and collection of this Note.

 

10.
Payment. All payments with respect to this Note shall be made in lawful money of the United States of America, at the address
of the Holder as of the date hereof or as designated in writing by the Holder from time to time. The receipt by the Holder of
immediately available funds shall constitute a payment of the Principal and Interest hereunder and shall satisfy and discharge
the liability for Principal and Interest on this Note to the extent of the sum represented by such payment. Payment shall be credited
first to the accrued Interest then due and payable and the remainder applied to Principal.

 

11.
Assignment. The rights and obligations of the Company and the Holder of this Note shall be binding upon, and inure to the
benefit of, the successors and permitted assigns of the parties hereto. To complete an assignment or transfer this Note, the Holder
shall deliver a completed and executed Form of Assignment attached hereto as Exhibit B and surrender and deliver this Note,
duly endorsed, to the Company’s office or such other address which the Company shall designate, upon receipt of which a
new Note, in substantially the form of this Note (any such new Note, a “New Note”), evidencing the portion
of this Note so transferred shall be issued to the transferee and a New Note evidencing the remaining portion of this Note not
so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Note by the transferee thereof shall
be deemed the acceptance by such transferee of all of the rights and obligations in respect of the New Note that the Holder has
in respect of this Note. Interest and Principal are payable only to the registered Holder of this Note set forth on the books
and records of the Company. Any assignment pursuant to this Section 11 remains subject to the occurrence of the Contingency Event.

 

12.
Waiver and Amendment. Any provision of this Note, including, without limitation, the due date hereof, and the observance
of any term hereof, may be amended, waived or modified (either generally or in a particular instance and either retroactively
or prospectively) only with the written consent of the Company and the Holder.

 

13.
Notices. Any notice, request or other communication required or permitted hereunder shall be in writing and shall be deemed
to have been duly given if given in accordance with the provisions of the Purchase Agreement.

 

14.
Governing Law. This Note shall be governed in all respects, including validity, interpretation and effect, by the internal
laws of the State of Idaho.

 

15.
Headings. The descriptive headings contained in this Note are included for convenience of reference only and will not affect
in any way the meaning or interpretation of this Note.

 

16.
Severability. If one or more provisions of this Note are held to be unenforceable under applicable law, such provisions
shall be excluded from this Note, and the balance of this Note shall be interpreted as if such provisions were so excluded and
shall be enforceable in accordance with its terms.

 

[Signature
Page Follows]

 

    Ex C-7

     

    

 

IN
WITNESS WHEREOF, the undersigned have caused this Note to be issued as of the date first above written.

 

	 	1847
    Cabinets Inc.
	 	 	 
	 	By:	
	 	Name: 	Kenneth
    Yuan
	 	Title:	Chief
    Executive Officer

 

    Ex C-8

     

    

 

EXHIBIT
A

 

Note
Vesting Example

 

Year
1:

 

	 	●	Average
    annual consolidated EBITDA of the Company for the year ending December 31, 2020 equals $1,500,000.

 

	 	●	Then
    the Vested CSN Percentage for year 2020 equals 107.14% (1,500,000/1,400,000 * 100). The CNS Percentage for year ending 2020
    falls within the range of 80% to 120%.

 

	 	●	Therefore,
    the Principal will Vest for year 2020 in the amount of $374,990 ($350,000 * 1.0714).

 

Year
2:

 

	 	●	Average
    annual consolidated EBITDA of the Company for the year ending December 31, 2021 equals $600,000.

 

	 	●	Then
    the Vested CSN Percentage for year 2020 equals 42.86% (600,000/1,400,000 * 100).

 

	 	●	The
    CNS Percentage for year ending 2021 falls below the range of 80% to 120%.

 

	 	●	Therefore,
    the Principal will Vest for year 2021 in the amount of $0.00.

 

Year
3:

 

	 	●	Average
    annual consolidated EBITDA of the Company for the year ending December 31, 2022 equals $2,000,000.

 

	 	●	Then
    the Vested CSN Percentage for year 2020 equals 142.86% (2,000,000/1,400,000 * 100).

 

	 	●	The
    CNS Percentage for year ending 2021 falls above the range of 80% to 120%.

 

	 	●	Therefore,
    the Principal will Vest for year 2022 in the amount of $420,000 (cap).

 

Total
Vested principal amount over Term equals $794,990 (374,990 + 420,000). Interest will be calculated based on the forgoing Vested
principal amount as accrued at the rate of 8% per annum from the date of issuance of the Note until such Vested portion is repaid
in full on the Maturity Date.

 

    Ex C-9

     

    

 

EXHIBIT
B

 

Form
of Assignment

TO:1847
Cabinets Inc.,

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ___________________ (name), __________________________________________
(address), US$____________ of 8% Vesting Promissory Note (“Note”) of 1847 Cabinets Inc. (the “Company”),
including any and all accrued and unpaid interest owing thereon, registered in the name of the undersigned on the records of the
Company represented by the within certificate, and irrevocably appoints ___________________ the attorney of the undersigned to
transfer the said securities on the books or register with full power of substitution.

 

DATED
this ________ day of, __________________, 20 ____.

 

	 

        _______________________________

        (Signature of Registered Note Holder)

         

         

        ________________________________

        (Print name of Registered Note Holder)

        

 

Instructions:

 

	1.	Signature
    of Holder must be the signature of the person appearing on the face of the Note.

 

	2.	If
    the transfer of Note is signed by a trustee, executor, administrator, curator, guardian, attorney, officer of a corporation
    or any person acting in a fiduciary or representative capacity, the certificate must be accompanied by evidence of authority
    to sign satisfactory to the Company.

 

    Ex C-10

     

    

 

Exhibit
D

Employment
Agreement Terms

 

		1.	The
                                         employment agreements between the Company and each of the Sellers shall be for a one-year
                                         term (weekly/monthly time commitment by each Seller to be mutually agreed to by the parties).
                                         Each of the Sellers shall be entitled to three weeks paid time off.

 

		2.	Compensation:

		a.	Steve
                                         Mallatt - $1900 / week plus discretionary bonus.

 

		b.	Rita
                                         Mallatt - $1500 / week plus discretionary bonus.

 

		3.	The
                                         Company shall pay or reimburse the Sellers during such period of employment for the following
                                         items:

 

		a.	Terrace
                                         lakes marketing ($300/month).

 

		b.	Steve
                                         Mallatt’s CPA license fees.

 

		c.	Steve
                                         Mallatt’s auto insurance for one automobile.

 

		d.	Cell
                                         phone service plan Steve and Rita Mallatt. Sellers’ three children may remain on
                                         the such plan, subject to reimbursement to the Company by the Sellers.

 

		e.	Sellers’
                                         home internet service (for remote access to the Company).

 

		4.	Other
                                         benefits during such period of employment:

 

		a.	Each
                                         of Steve and Rita Mallat will shall remain on the Company’s Costco business account,
                                         provided that such account is used for business purposes and not for personal use.

 

		b.	Allow
                                         monthly credit card bills to continue to be paid on INK / AMEX business credit cards,
                                         provided that such account is used for business purposes and not for personal use.

 

		c.	Steve
                                         and Rita Mallatt shall be eligible to participate in the Company’s offered health
                                         insurance and afforded the same opportunities for participation as other employees.

 

 

Ex
D-1Exhibit 10.1

 

SUBSCRIPTION
AGREEMENT

 

This SUBSCRIPTION AGREEMENT
(this “Subscription Agreement”) is entered into on September 1, 2020, by and between Flying
Eagle Acquisition Corp., a Delaware corporation (the “Company”), and the undersigned subscriber (“Subscriber”).

 

RECITALS

 

WHEREAS, concurrently
with the execution of this Subscription Agreement, the Company is entering into an Agreement and Plan of Merger with Skillz Inc.,
a Delaware corporation (“Target”), FEAC Merger Sub Inc., a Delaware corporation and wholly-owned subsidiary
of the Company (“Merger Sub”), and Andrew Paradise, solely in his capacity as the stockholder representative,
pursuant to which (and subject to the terms and conditions set forth therein) Merger Sub will merge with and into the Target, with
the Target surviving the merger (such agreement as amended, supplemented, restated or otherwise modified from time to time, the
“Merger Agreement” and the transactions contemplated by the Merger Agreement, the “Transaction”);

 

WHEREAS, in
connection with the Transaction, Subscriber desires to subscribe for and purchase from the Company, immediately prior to the consummation
of the Transaction, that number of shares of the Company’s Class A common stock, par value $0.0001 per share (the “Class
A Shares”), set forth on the signature page hereto (the “Subscribed Shares”) for a purchase price
of $10.00 per share (the “Per Share Price” and the aggregate of such Per Share Price for all Subscribed Shares
being referred to herein as the “Purchase Price”), and the Company desires to issue and sell to Subscriber the
Subscribed Shares in consideration of the payment of the Purchase Price by or on behalf of Subscriber to the Company; and

 

WHEREAS, concurrently
with the execution of this Subscription Agreement, the Company is entering into subscription agreements (the “Other Subscription
Agreements” and together with the Subscription Agreement, the “Subscription Agreements”) with certain
other investors (the “Other Subscribers” and together with the Subscriber, the “Subscribers”),
which are on substantially the same terms as the terms of this Subscription
Agreement, pursuant to which such investors have agreed to purchase on the closing date of the Transaction (the “Closing
Date”), inclusive of the Subscribed Shares, an aggregate amount of up to 15,853,052 Class A Shares, at the Per Share
Price.

 

 

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the foregoing and the mutual representations, warranties and covenants, and subject to the conditions, herein
contained, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

1.                 
Subscription. Subject to the terms and conditions
hereof, at the Closing (as defined below), Subscriber hereby agrees to subscribe for and purchase, and the Company hereby agrees
to issue and sell to Subscriber, upon the payment of the Purchase Price, the Subscribed Shares (such subscription and issuance,
the “Subscription”).

 

     

     

    

 

2.                 
Closing.

 

(a)              
The consummation of the Subscription contemplated hereby (the “Closing”) shall occur on the Closing Date
immediately prior to the consummation of the Transaction.

 

(b)              
At least five (5) Business Days before the anticipated Closing Date, the Company shall deliver written notice to Subscriber
(the “Closing Notice”) specifying (i) the anticipated Closing Date and (ii) the wire instructions for delivery
of the Purchase Price to the Company. No later than two (2) Business Days after receiving the Closing Notice, Subscriber shall
deliver to the Company such information as is reasonably requested in the Closing Notice in order for the Company to issue the
Subscribed Shares to Subscriber. Subscriber shall deliver to the Company, on or prior to 8:00 a.m. (Eastern time) (or as soon as
practicable after the Company or its transfer agent delivers evidence of the issuance to Subscriber of the Subscribed Shares on
and as of the Closing Date) on the Closing Date the Purchase Price in cash via wire transfer to the account specified in the Closing
Notice against (and concurrently with) delivery by the Company to Subscriber of (i) the Subscribed Shares in book entry form, free
and clear of any liens or other restrictions (other than those arising under this Subscription Agreement or state or federal securities
laws), in the name of Subscriber (or its nominee in accordance with its delivery instructions) or to a custodian designated by
Subscriber, as applicable, and (ii) written notice from the Company or its transfer agent evidencing the issuance to Subscriber
of the Subscribed Shares on and as of the Closing Date. In the event that the consummation of the Transaction does not occur within
one (1) Business Day after the anticipated Closing Date specified in the Closing Notice, the Company shall promptly (but in no
event later than two (2) Business Days after the anticipated Closing Date specified in the Closing Notice) return the funds so
delivered by Subscriber to the Company by wire transfer in immediately available funds to the account specified by Subscriber.
For the purposes of this Subscription Agreement, “Business Day” means any day other than a Saturday, Sunday
or a day on which the Federal Reserve Bank of New York is closed.

 

(c)              
The Closing shall be subject to the satisfaction or valid waiver by the Company, on the one hand, or the Subscriber, on
the other, of the conditions that, on the Closing Date:

 

		(i)	no suspension of the qualification of the Subscribed Shares for offering or sale or trading in any jurisdiction, or initiation
or threatening of any proceedings for any of such purposes, shall have occurred;

 

		(ii)	all conditions precedent to the closing of the Transaction set forth in the Merger Agreement, including the approval of the
Company’s stockholders, shall have been satisfied or waived, and the closing of the Transaction shall be scheduled to occur
concurrently with or immediately following the Closing; and

 

		(iii)	no governmental authority shall have enacted, issued, promulgated, enforced or entered any judgment, order, law, rule or regulation
(whether temporary, preliminary or permanent) which is then in effect and has the effect of making consummation of the transactions
contemplated hereby illegal or otherwise restraining or prohibiting consummation of the transactions contemplated hereby; and no
such governmental authority shall have instituted or threatened in writing a proceeding seeking to impose any such restraint or
prohibition.

 

    	 	2	 

     

    

 

(d)              
The obligation of the Company to consummate the Closing shall be subject to the satisfaction or valid waiver by the Company
of the additional conditions that, on the Closing Date:

 

		(i)	all representations and warranties of Subscriber contained in this Subscription Agreement shall be true and correct in all
material respects (other than representations and warranties that are qualified as to materiality or Subscriber Material Adverse
Effect (as defined below), which representations and warranties shall be true in all respects) at and as of the Closing Date; and

 

		(ii)	Subscriber shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions
required by this Subscription Agreement to be performed, satisfied or complied with by it at or prior to the Closing.

 

(e)              
 The obligation of Subscriber to consummate the Closing shall be subject to the satisfaction or valid waiver by Subscriber
of the additional conditions that, on the Closing Date:

 

		(i)	all representations and warranties of the Company contained in this Subscription Agreement shall be true and correct in all
material respects (other than representations and warranties that are qualified as to materiality or Company Material Adverse Effect
(as defined below), which representations and warranties shall be true in all respects) at and as of the Closing Date;

 

		(ii)	the Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions
required by this Subscription Agreement to be performed, satisfied or complied with by it at or prior to the Closing;

 

		(iii)	there shall have been no amendment, waiver or modification to (A) the Merger Agreement that materially and adversely affects
the Company or (B) the Other Subscription Agreements that materially economically benefits the investors thereunder unless the
Subscribers have been offered substantially the same benefits; and

 

		(iv)	the Subscribed Shares shall be qualified for listing on the New York Stock Exchange (“NYSE”).

 

(f)               
Prior to or at the Closing, Subscriber shall deliver to the Company a duly completed and executed Internal Revenue Service
Form W-9 or appropriate Form W-8.

 

    	 	3	 

     

    

3.                 
Company Representations and Warranties. The Company
represents and warrants to Subscriber that:

 

(a)              
The Company (i) is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation,
(ii) has the requisite power and authority to own, lease and operate its properties, to carry on its business as it is now being
conducted and to enter into and perform its obligations under this Subscription Agreement, and (iii) is duly licensed or qualified
to conduct its business and, if applicable, is in good standing under the laws of each jurisdiction (other than its jurisdiction
of incorporation) in which the conduct of its business or the ownership of its properties or assets requires such license or qualification,
except, with respect to the foregoing clause (iii), where the failure to be in good standing would not reasonably be expected to
have a Company Material Adverse Effect. For purposes of this Subscription Agreement, a “Company Material Adverse Effect”
means an event, change, development, occurrence, condition or effect with respect to the Company and its subsidiaries, taken together
as a whole (on a consolidated basis), that, individually or in the aggregate, would reasonably be expected to have a material adverse
effect on the business, financial condition, stockholders equity or results of operations of the Company and its subsidiaries,
taken together as a whole (on a consolidated basis).

 

(b)              
The Subscribed Shares have been duly authorized and, when issued and delivered to Subscriber against full payment therefor
in accordance with the terms of this Subscription Agreement, will be validly issued, fully paid and non-assessable and will not
have been issued in violation of any preemptive rights created under the Company’s organizational documents or the laws of
its jurisdiction of incorporation.

 

(c)              
This Subscription Agreement has been duly executed and delivered by the Company, and assuming the due authorization, execution
and delivery of the same by Subscriber, this Subscription Agreement shall constitute the valid and legally binding obligation of
the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting creditors generally and by the availability of equitable remedies.

 

(d)              
The execution and delivery of this Subscription Agreement, the issuance and sale of the Subscribed Shares and the compliance
by the Company with all of the provisions of this Subscription Agreement and the consummation of the transactions contemplated
herein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default
under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Company
pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or
instrument to which the Company is a party or by which the Company is bound or to which any of the property or assets of the Company
is subject; (ii) the organizational documents of the Company; or (iii) any statute or any judgment, order, rule or regulation
of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Company or any of its properties
that, in the case of clauses (i) and (iii), would reasonably be expected to have a Company Material Adverse Effect or have
a material adverse effect on the Company’s ability to consummate the transactions contemplated hereby, including the issuance
and sale of the Subscribed Shares.

 

    	 	4	 

     

    

 

(e)              
Assuming the accuracy of the representations and warranties of the Subscriber, the Company is not required to obtain any
consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal,
state, local or other governmental authority, self-regulatory organization (including the NYSE ) or other person in connection
with the execution, delivery and performance of this Subscription Agreement (including, without limitation, the issuance of the
Subscribed Shares), other than (i) filings required by applicable state securities laws, (ii) the filing of the Registration
Statement pursuant to Section 5, (iii) the filing of a Notice of Exempt Offering of Securities on Form D with the United
States Securities and Exchange Commission (“Commission”) under Regulation D under the Securities Act of
1933, as amended (the “Securities Act”), if applicable, (iv) those required by the NYSE, including with
respect to obtaining stockholder approval, (v) those required to consummate the Transaction as provided under the Merger Agreement,
(vi) the filing of notification under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, if applicable, and (vii) the
failure of which to obtain would not be reasonably likely to have a Company Material Adverse Effect or have a material adverse
effect on the Company’s ability to consummate the transactions contemplated hereby, including the issuance and sale of the
Subscribed Shares. There are no material outstanding or unresolved comments in comment letters from the staff of the Division of
Corporation Finance of the Commission with respect to any report, statement, schedule, prospectus or registration statement filed
by the Company with the Commission.

 

(f)               
As of their respective dates, all reports required to be filed by the Company with the Commission (the “SEC Reports”)
complied in all material respects with the requirements of the Securities Act and the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and the rules and regulations of the Commission promulgated thereunder, and none of the
SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing
and fairly present in all material respects the financial position of the Company as of and for the dates thereof and the results
of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit
adjustments.

 

(g)              
As of the date hereof, the authorized share capital of the Company consists of (i) 1,000,000 shares of preferred stock,
with a par value of $0.0001 per share (“Preferred Shares”), and (ii) 400,000,000 shares of common stock with
a par value of $0.0001 per share, consisting of 380,000,000 Class A Shares, and 20,000,000 shares of Class B common stock (“Class
B Shares” and together with the Class A Shares, “Common Stock”). As of the date hereof and immediately
prior to the Closing and prior to giving effect to any of the transactions contemplated by the Merger Agreement: (i) 69,000,000
Class A Shares, 17,250,000 Class B Shares and no Preferred Shares are and will be issued and outstanding; (ii) 27,283,333 warrants,
each exercisable to purchase one share of Class A Common Stock at $11.50 per share (“Warrants”), are and will
be issued and outstanding, including 10,033,333 private placement warrants; and (iii) no shares of Class A Common Stock are or
will be subject to issuance upon exercise of outstanding options. No Warrants are exercisable on or prior to the Closing. All (i) issued
and outstanding Common Stock has been duly authorized and validly issued, is fully paid and non-assessable and is not subject to
preemptive rights and (ii) outstanding Warrants have been duly authorized and validly issued, are fully paid and are not subject
to preemptive rights. As of the date hereof, except as set forth above and pursuant to (i) the Other Subscription Agreements, or
(ii) the Merger Agreement, there are no outstanding options, warrants or other rights to subscribe for, purchase or acquire from
the Company any Common Stock or other equity interests in the Company (collectively, “Equity Interests”) or
securities convertible into or exchangeable or exercisable for Equity Interests. As of the date hereof, the Company has no subsidiaries
other than the Merger Sub and does not own, directly or indirectly, interests or investments (whether equity or debt) in any person
(other than the Merger Sub), whether incorporated or unincorporated. There are no stockholder agreements, voting trusts or other
agreements or understandings to which the Company is a party or by which it is bound relating to the voting of any Equity Interests,
other than (A) the letter agreements entered into by the Company in connection with the Company’s initial public offering
on March 5, 2020 pursuant to which Eagle Equity Partners II, LLC and the Company’s executive officers and independent directors
agreed to vote in favor of any proposed Business Combination (as defined therein), which includes the Transaction, and (B) as contemplated
by the Merger Agreement. Other than Class B Shares, which have the anti-dilution rights described in the Company’s second
amended and restated certificate of incorporation, there are no securities or instruments issued by or to which the Company is
a party containing anti-dilution or similar provisions that will be triggered by the issuance of (i) the Subscribed Shares or (ii)
the shares to be issued pursuant to any Other Subscription Agreement.

 

    	 	5	 

     

    

 

(h)              
Except for such matters as have not had and would not be reasonably likely to have a Company Material Adverse Effect or
have a material adverse effect on the Company’s ability to consummate the transactions contemplated hereby, including the
issuance and sale of the Subscribed Shares, as of the date hereof, there is no (i) suit, action, proceeding or arbitration
before a governmental authority or arbitrator pending, or, to the knowledge of the Company, threatened in writing against the Company
or (ii) judgment, decree, injunction, ruling or order of any governmental authority or arbitrator outstanding against the
Company.

 

(i)                
The issued and outstanding Class A Shares are registered pursuant to Section 12(b) of the Exchange Act, and are listed
for trading on the NYSE under the symbol “FEAC.” There is no suit, action, proceeding or investigation pending or,
to the knowledge of the Company, threatened against the Company by the NYSE or the Commission with respect to any intention by
such entity to deregister the Class A Shares or prohibit or terminate the listing of the Class A Shares on the NYSE. The Company
has taken no action that is designed to terminate the registration of the Class A Shares under the Exchange Act.

 

(j)                
Assuming the accuracy of Subscriber’s representations and warranties set forth in Section 4 of this Subscription
Agreement, no registration under the Securities Act is required for the offer and sale of the Subscribed Shares by the Company
to Subscriber.

 

(k)              
Neither the Company nor any person acting on its behalf has engaged or will engage in any form of general solicitation or
general advertising (within the meaning of Regulation D) in connection with any offer or sale of the Subscribed Shares.

 

(l)                
The Company is not under any obligation to pay any broker’s fee or commission in connection with the sale of the Subscribed
Shares other than to the Placement Agent.

 

    	 	6	 

     

    

 

(m)            
Other than the Other Subscription Agreements, the Company has not entered into any side letter or similar agreement with
any Other Subscribers in connection with Other Subscription Agreements, other than such Other Subscription Agreements that include
(i) any rights or benefits granted to an Other Subscriber in connection with such Other Subscriber’s compliance with any
law, regulation or policy specifically applicable to such Other Subscriber or in connection with the taxable status of an Other
Subscriber, or (ii) any rights or benefits which are personal to an Other Subscriber based solely on its place of organization
or headquarters, organizational form of, or other particular restrictions applicable to, such Other Subscriber.

 

4.                 
Subscriber Representations and Warranties. Subscriber
represents and warrants to the Company that:

 

(a)              
Subscriber (i) is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation,
and (ii) has the requisite power and authority to enter into and perform its obligations under this Subscription Agreement.

 

(b)              
This Subscription Agreement has been duly executed and delivered by Subscriber, and assuming the due authorization, execution
and delivery of the same by the Company, this Subscription Agreement shall constitute the valid and legally binding obligation
of Subscriber, enforceable against Subscriber in accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting creditors generally and by the availability of equitable remedies.

 

(c)              
The execution and delivery of this Subscription Agreement, the purchase of the Subscribed Shares and the compliance by Subscriber
with all of the provisions of this Subscription Agreement and the consummation of the transactions contemplated herein will not
conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result
in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of Subscriber pursuant to the
terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which
Subscriber is a party or by which Subscriber is bound or to which any of the property or assets of Subscriber is subject; (ii) the
organizational documents of Subscriber; or (iii) any statute or any judgment, order, rule or regulation of any court or governmental
agency or body, domestic or foreign, having jurisdiction over Subscriber or any of its properties that, in the case of clauses (i)
and (iii), would reasonably be expected to have a Subscriber Material Adverse Effect. For purposes of this Subscription Agreement,
a “Subscriber Material Adverse Effect” means an event, change, development, occurrence, condition or effect
with respect to Subscriber that would reasonably be expected to have a material adverse effect on Subscriber’s ability to
consummate the transactions contemplated hereby, including the purchase of the Subscribed Shares.

 

(d)              
Subscriber (i) is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act)
or an institutional “accredited investor” (within the meaning of Rule 501(a) under the Securities Act) satisfying
the applicable requirements set forth on Annex A, (ii) is acquiring the Subscribed Shares only for its own account
and not for the account of others, or if Subscriber is subscribing for the Subscribed Shares as a fiduciary or agent for one or
more investor accounts, each owner of such account is a qualified institutional buyer and Subscriber has full investment discretion
with respect to each such account, and the full power and authority to make the acknowledgements, representations and agreements
herein on behalf of each owner of each such account, and (iii) is not acquiring the Subscribed Shares with a view to, or for
offer or sale in connection with, any distribution thereof in violation of the Securities Act (and has provided the Company with
the requested information on Annex A following the signature page hereto). Subscriber is not an entity formed for
the specific purpose of acquiring the Subscribed Shares.

 

    	 	7	 

     

    

 

(e)              
Subscriber understands that the Subscribed Shares are being offered in a transaction not involving any public offering within
the meaning of the Securities Act and that the Subscribed Shares have not been registered under the Securities Act. Subscriber
understands that the Subscribed Shares may not be resold, transferred, pledged or otherwise disposed of by Subscriber absent an
effective registration statement under the Securities Act, except (i) to the Company or a subsidiary thereof, or (ii) pursuant
to an applicable exemption from the registration requirements of the Securities Act, and, in each of cases (i) and (ii), in
accordance with any applicable securities laws of the states and other jurisdictions of the United States.

 

(f)               
Subscriber understands and agrees that Subscriber is purchasing the Subscribed Shares directly from the Company. Subscriber
further acknowledges that there have not been, and Subscriber hereby agrees that it is not relying on, any representations, warranties,
covenants or agreements made to Subscriber by the Company, any other party to the Transaction or any other person or entity, expressly
or by implication, other than those representations, warranties, covenants and agreements of the Company set forth in this Subscription
Agreement. Subscriber acknowledges that certain information provided by the Company was based on projections, and such projections
were prepared based on assumptions and estimates that are inherently uncertain and are subject to a wide variety of significant
business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained
in the projections.

 

(g)              
In making its decision to purchase the Subscribed Shares, Subscriber has relied solely upon independent investigation made
by Subscriber. Subscriber acknowledges and agrees that Subscriber has received such information as Subscriber deems necessary in
order to make an investment decision with respect to the Subscribed Shares, including with respect to the Company and the Transaction
(including the Target (collectively, the “Acquired Companies”)). Subscriber represents and agrees that Subscriber
and Subscriber’s professional advisor(s), if any, have had the full opportunity to ask such questions, receive such answers
and obtain such information as Subscriber and such undersigned’s professional advisor(s), if any, have deemed necessary to
make an investment decision with respect to the Subscribed Shares. Subscriber acknowledges and agrees that Goldman Sachs &
Co. LLC, acting as placement agent to the Company (the “Placement Agent”), nor any affiliate of the Placement
Agent has provided Subscriber with any information or advice with respect to the Subscribed Shares nor is such information or advice
necessary or desired. Neither the Placement Agent nor its affiliates has made or makes any representation as to the Company or
the Acquired Companies or the quality or value of the Subscribed Shares and the Placement Agent and any of its affiliates may have
acquired non-public information with respect to the Company or the Acquired Companies which Subscriber agrees need not be provided
to it. In connection with the issuance of the Subscribed Shares to Subscriber, neither the Placement Agent nor any of its affiliates
has acted as a financial advisor or fiduciary to Subscriber.

 

    	 	8	 

     

    

 

(h)              
Subscriber became aware of this offering of the Subscribed Shares solely by means of direct contact between Subscriber and
the Company or by means of contact from the Placement Agent and the Subscribed Shares were offered to Subscriber solely by direct
contact between Subscriber and the Company. Subscriber did not become aware of this offering of the Subscribed Shares, nor were
the Subscribed Shares offered to Subscriber, by any other means. Subscriber acknowledges that the Company represents and warrants
that the Subscribed Shares (i) were not offered by any form of general solicitation or general advertising and (ii) are
not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act, or any
state securities laws.

 

(i)                
Subscriber acknowledges that it is aware that there are substantial risks incident to the purchase and ownership of the
Subscribed Shares. Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating
the merits and risks of an investment in the Subscribed Shares, and Subscriber has had an opportunity to seek, and has sought,
such accounting, legal, business and tax advice as Subscriber has considered necessary to make an informed investment decision.

 

(j)                
Subscriber has adequately analyzed and fully considered the risks of an investment in the Subscribed Shares and determined
that the Subscribed Shares are a suitable investment for Subscriber and that Subscriber is able at this time and in the foreseeable
future to bear the economic risk of a total loss of Subscriber’s investment in the Company. Subscriber acknowledges specifically
that a possibility of total loss exists.

 

(k)              
Subscriber understands and agrees that no federal or state agency has passed upon or endorsed the merits of the offering
of the Subscribed Shares or made any findings or determination as to the fairness of this investment.

 

(l)                
Subscriber is not (i) a person or entity named on the List of Specially Designated Nationals and Blocked Persons administered
by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) or in any Executive Order
issued by the President of the United States and administered by OFAC (“OFAC List”), or a person or entity prohibited
by any OFAC sanctions program, (ii) a Designated National as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515,
or (iii) a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell bank (collectively, a “Prohibited
Investor”). Subscriber agrees to provide law enforcement agencies, if requested thereby, such records as required by
applicable law, provided that Subscriber is permitted to do so under applicable law. Subscriber represents that if it is a financial
institution subject to the Bank Secrecy Act (31 U.S.C. Section 5311 et seq.), as amended by the USA PATRIOT Act of 2001 and
its implementing regulations (collectively, the “BSA/PATRIOT Act”), that Subscriber maintains policies and procedures
reasonably designed to comply with applicable obligations under the BSA/PATRIOT Act. Subscriber also represents that, to the extent
required, it maintains policies and procedures reasonably designed for the screening of its investors against the OFAC sanctions
programs, including the OFAC List. Subscriber further represents and warrants that, to the extent required, it maintains policies
and procedures reasonably designed to ensure that the funds held by Subscriber and used to purchase the Subscribed Shares were
legally derived.

 

    	 	9	 

     

    

 

(m)            
Subscriber does not have, as of the date hereof, and during the 30-day period immediately prior to the date hereof such
Subscriber has not entered into, any “put equivalent position” as such term is defined in Rule 16a-1 under the Exchange
Act or short sale positions with respect to the securities of the Company. Notwithstanding the foregoing, in the case of a Subscriber
that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Subscriber’s
assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing
other portions of such Subscriber’s assets, the representation set forth above shall only apply with respect to the portion
of assets managed by the portfolio manager that made the investment decision to purchase the Subscribed Shares covered by this
Agreement.

 

(n)              
If Subscriber is an employee benefit plan that is subject to Title I of ERISA, a plan, an individual retirement account
or other arrangement that is subject to section 4975 of the Code or an employee benefit plan that is a governmental plan (as defined
in section 3(32) of ERISA), a church plan (as defined in section 3(33) of ERISA), a non-U.S. plan (as described in section 4(b)(4)
of ERISA) or other plan that is not subject to the foregoing but may be subject to provisions under any other federal, state, local,
non-U.S. or other laws or regulations that are similar to such provisions of ERISA or the Internal Revenue Code of 1986, as amended,
or an entity whose underlying assets are considered to include “plan assets” of any such plan, account or arrangement
(each, a “Plan”) subject to the fiduciary or prohibited transaction provisions of ERISA or section 4975 of the
Code, Subscriber represents and warrants that neither the Company, nor any of its respective affiliates (the “Transaction
Parties”) has acted as the Plan’s fiduciary, or has been relied on for advice, with respect to its decision to
acquire and hold the Subscribed Shares, and none of the Transaction Parties shall at any time be relied upon as the Plan’s
fiduciary with respect to any decision to acquire, continue to hold or transfer the Subscribed Shares.

 

(o)              
Subscriber at the Closing will have sufficient funds to pay the Purchase Price pursuant to Section 2(b).

 

(p)              
Subscriber agrees that, notwithstanding Section 9(i), the Placement Agent and the Target may rely upon the representations
and warranties made by Subscriber to the Company in this Subscription Agreement.

 

5.                 
Registration of Subscribed Shares.

 

    	 	10	 

     

    

 

(a)              
The Company agrees that, prior to the Closing Date, the Company will file with the Commission (at the Company’s sole
cost and expense) a registration statement registering the resale of the Subscribed Shares (the “Registration Statement”),
and the Company shall use its commercially reasonable efforts to have the Registration Statement declared effective upon the Closing
or as soon as practicable thereafter, but in any event no later than the earlier of (1) sixty (60) calendar days following the
Closing Date (or one hundred and twenty (120) calendar days after the Closing Date if the Registration Statement is reviewed by,
and comments thereto are provided by, the Commission) and (2) the tenth (10th) business day after the date the Company
is notified in writing by the Commission that the Registration Statement will not be “reviewed” or will not be subject
to further review. The Company will provide a draft of the Registration Statement to the Subscriber for review at least two (2)
business days in advance of the filing of the Registration Statement. Notwithstanding the foregoing, if the Commission prevents
the Company from including any or all of the shares proposed to be registered under the Registration Statement due to limitations
on the use of Rule 415 under the Securities Act for the resale of the Subscribed Shares by the applicable stockholders or otherwise,
such Registration Statement shall register for resale such number of Subscribed Shares which is equal to the maximum number of
Subscribed Shares as is permitted to be registered by the Commission. In such event, the number of Subscribed Shares to be registered
for each selling stockholder named in the Registration Statement shall be reduced pro rata among all such selling stockholders
and as promptly as practicable after being permitted to register additional Subscribed Shares under Rule 415 under the Securities
Act, the Company shall amend the Registration Statement or file a new Registration Statement to register such additional Subscribed
Shares and cause such amendment or Registration Statement to become effective as promptly as practicable. The Company agrees that,
except for such times as the Company is permitted hereunder to suspend the use of the prospectus forming part of a Registration
Statement, the Company will use commercially reasonable efforts to cause such Registration Statement to remain effective with respect
to Subscriber until the earlier of (i) two (2) years from the effective date of the Registration Statement, (ii) the date on which
all of the Subscribed Shares shall have been sold, or (iii) the first date on which the undersigned can sell all of its Subscribed
Shares (or shares received in exchange therefor) under Rule 144 under the Securities Act without limitation as to the manner of
sale or the amount of such securities that may be sold and without the requirement for the Company to be in compliance with the
current public information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable). For as long as the Registration Statement
shall remain effective pursuant to the immediately preceding sentence, the Company will use commercially reasonable efforts to
file all reports, and provide all customary and reasonable cooperation, necessary to enable the undersigned to resell the Subscribed
Shares pursuant to the Registration Statement, qualify the Subscribed Shares for listing on the applicable stock exchange on which
the Company’s Class A Shares are then listed, and update or amend the Registration Statement as necessary to include the
Subscribed Shares. The undersigned agrees to disclose its beneficial ownership, as determined in accordance with Rule 13d-3 under
the Exchange Act, of Subscribed Shares to the Company (or its successor) upon request to assist the Company in making the determination
described above. The Company’s obligations to include the Subscribed Shares in the Registration Statement are contingent
upon Subscriber furnishing in writing to the Company such information regarding Subscriber, the securities of the Company held
by Subscriber and the intended method of disposition of the Subscribed Shares as shall be reasonably requested by the Company to
effect the registration of the Subscribed Shares, and Subscriber shall execute such documents in connection with such registration
as the Company may reasonably request that are customary for a selling stockholder in similar situations, including providing that
the Company shall be entitled to postpone and suspend the effectiveness or use of the Registration Statement during any customary
blackout or similar period or as permitted hereunder. In the case of the registration effected by the Company pursuant to this
Subscription Agreement, the Company shall, upon reasonable request, inform Subscriber as to the status of such registration. If
the Commission requests that the Subscriber be identified as a statutory underwriter in the Registration Statement, the Subscriber
will have an opportunity to withdraw from the Registration Statement. Subscriber shall not be entitled to use the Registration
Statement for an underwritten offering of Subscribed Shares. Notwithstanding anything to the contrary contained herein, the Company
may delay or postpone filing of such Registration Statement, and from time to time require Subscriber not to sell under the Registration
Statement or suspend the use or effectiveness of any such Registration Statement, if it determines that in order for the registration
statement to not contain a material misstatement or omission, an amendment thereto would be needed, or the Company’s CEO,
CFO or General Counsel believes, upon the advice of legal counsel, such filing or use could materially affect a bona fide business
or financing transaction of the Company or would require premature disclosure of information that could materially adversely affect
the Company (each such circumstance, a “Suspension Event”); provided that (x) the Company shall not so delay
filing or so suspend the use of the Registration Statement for a period of more than sixty (60) consecutive days or more than two
(2) times, in each case during in any three hundred sixty (360)-day period and (y) the Company shall use commercially reasonable
efforts to make such registration statement available for the sale by the undersigned of such securities as soon as practicable
thereafter. At its expense, the Company shall advise Subscriber within two (2) business days: (A) of the issuance by the Commission
of any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for such purpose;
(B) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Subscribed Shares
included therein for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and (C) subject
to the provisions in this Subscription Agreement, of the occurrence of a Suspension Event or any other event that requires the
making of any changes in any Registration Statement or prospectus so that, as of such date, the statements therein are not misleading
and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case
of a prospectus, in the light of the circumstances under which they were made) not misleading. Notwithstanding anything to the
contrary set forth herein, the Company shall not, when so advising Subscriber of such events, provide Subscriber with any material,
nonpublic information regarding the Company other than to the extent that providing notice to Subscriber of the occurrence of such
events. At its expense, the Company shall use its commercially reasonable efforts to obtain the withdrawal of any order suspending
the effectiveness of any Registration Statement as soon as reasonably practicable, and upon the occurrence of any event contemplated
above (other than a permitted Suspension Event), the Company shall use its commercially reasonable efforts to, as soon as reasonably
practicable, prepare a post-effective amendment to such Registration Statement or a supplement to the related prospectus, or file
any other required document so that, as thereafter delivered to purchasers of the Subscribed Shares included therein, such prospectus
will not include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

 

    	 	11	 

     

    

 

(b)              
Upon receipt of written notice from the Company of the happening of any Suspension Event during the period that the Registration
Statement is effective or if as a result of a Suspension Event the Registration Statement or related prospectus contains any untrue
statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made (in the case of the prospectus), not misleading, the undersigned
agrees that (1) it will immediately discontinue offers and sales of the Subscribed Shares under the Registration Statement (excluding,
for the avoidance of doubt, sales conducted pursuant to Rule 144) until the undersigned receives copies of a supplemental or amended
prospectus (which the Company agrees to promptly prepare) that corrects the misstatement(s) or omission(s) referred to above and
receives notice that any post-effective amendment has become effective or unless otherwise notified by the Company that it may
resume such offers and sales, and (2) it will maintain the confidentiality of any information included in such written notice delivered
by the Company unless otherwise required by law, subpoena or regulatory request or requirement. If so directed by the Company,
the undersigned will deliver to the Company or, in the undersigned’s sole discretion, destroy all copies of the prospectus
covering the Subscribed Shares in the undersigned’s possession; provided, however, that this obligation to
deliver or destroy all copies of the prospectus covering the Subscribed Shares shall not apply (x) to the extent the undersigned
is required to retain a copy of such prospectus (A) in order to comply with applicable legal, regulatory, self-regulatory or professional
requirements or (B) in accordance with a bona fide pre-existing document retention policy or (y) to copies stored electronically
on archival servers as a result of automatic data back-up.

 

    	 	12	 

     

    

 

(c)              
For purposes of this Section 5 of this Subscription Agreement, “Subscribed Shares” shall mean, as of any date
of determination, the Subscribed Shares (as defined in the recitals to this Subscription Agreement) and any other equity security
issued or issuable with respect to the Subscribed Shares by way of share split, dividend, distribution, recapitalization, merger,
exchange, replacement or similar event, and “Subscriber” shall include any affiliate of the undersigned Subscriber
to which the rights under this Section 5 shall have been duly assigned.

 

(d)              
The Company shall indemnify Subscriber (to the extent a seller under the Registration Statement), its officers, directors
and agents, and each person who controls Subscriber (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities,
costs (including reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, that
arise out of or are based upon any untrue or alleged untrue statement of a material fact contained in the Registration Statement
(or incorporated by reference therein), any prospectus included in the Registration Statement or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission
to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus
or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to
the extent, that such untrue statements or alleged untrue statements, omissions or alleged omissions are based upon information
regarding Subscriber furnished in writing to the Company by Subscriber expressly for use therein or Subscriber has omitted a material
fact from such information.

 

(e)              
The Subscriber shall indemnify and hold harmless the Company, its directors, officers, agents and employees, and each person
who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), to the fullest
extent permitted by applicable law, from and against all Losses, as incurred, arising out of or are based upon any untrue or alleged
untrue statement of a material fact contained in any Registration Statement, any prospectus included in the Registration Statement,
or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating
to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
(in the case of any prospectus, or any form of prospectus or supplement thereto, in light of the circumstances under which they
were made) not misleading to the extent, but only to the extent, that such untrue statements or omissions are based upon information
regarding Subscriber furnished in writing to the Company by the Subscriber expressly for use therein. In no event shall the liability
of Subscriber be greater in amount than the dollar amount of the net proceeds received by Subscriber upon the sale of the Subscribed
Shares giving rise to such indemnification obligation. The Subscriber shall notify the Company promptly of the institution, threat
or assertion of any proceeding arising from or in connection with the transactions contemplated by this Section 5 of which
the Subscriber is aware.

 

    	 	13	 

     

    

 

(f)               
If the indemnification provided under this Section 5 from the indemnifying party is unavailable or insufficient to
hold harmless an indemnified party in respect of any losses, claims, damages, liabilities and expenses referred to herein, then
the indemnifying party, in lieu of indemnifying the indemnified party, shall contribute to the amount paid or payable by the indemnified
party as a result of such losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the
relative fault of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The
relative fault of the indemnifying party and indemnified party shall be determined by reference to, among other things, whether
any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, was made by, or relates to information supplied by, such indemnifying party or indemnified party, and the
indemnifying party’s and indemnified party’s relative intent, knowledge, access to information and opportunity to correct
or prevent such action. The amount paid or payable by a party as a result of the losses or other liabilities referred to above
shall be deemed to include, subject to the limitations set forth in this Section 5, any legal or other fees, charges or
expenses reasonably incurred by such party in connection with any investigation or proceeding. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to this Section 5
from any person who was not guilty of such fraudulent misrepresentation. Each indemnifying party’s obligation to make a contribution
pursuant to this Section 5(e) shall be individual, not joint and several, and in no event shall the liability of any Subscriber
hereunder be greater in amount than the dollar amount of the net proceeds received by such Subscriber upon the sale of the Subscribed
Shares giving rise to such indemnification obligation.

 

6.                 
Other Covenants.

 

(a)              
With a view to making available to Subscriber the benefits of Rule 144 promulgated under the Securities Act or any other
similar rule or regulation of the Commission that may at any time permit Subscriber to sell securities of the Company to the public
without registration, the Company agrees, until the Subscriber no longer holds Subscribed Shares, to:

 

		i.	make and keep public information available, as those terms are understood and defined in Rule 144;

 

		ii.	file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act
and the Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other documents
is required for the applicable provisions of Rule 144; and

 

		iii.	furnish to Subscriber so long as it owns Subscribed Shares, as promptly as practicable upon request, (x) a written statement
by the Company, if true, that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange
Act, (y) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the
Company with the Commission and (z) such other information as may be reasonably requested to permit Subscriber to sell such securities
pursuant to Rule 144 without registration.

 

    	 	14	 

     

    

 

7.                 
Termination. This Subscription Agreement shall terminate
and be void and of no further force and effect, and all rights and obligations of the parties hereunder shall terminate without
any further liability on the part of any party in respect thereof, upon the earliest to occur of (a) such date and time as
the Merger Agreement is terminated in accordance with its terms, (b) upon the mutual written agreement of the Company and
the Subscriber to terminate this Subscription Agreement, (c) if, on the Closing Date of the Transaction, any of the conditions
to Closing set forth in Section 2 of this Subscription Agreement have not been satisfied as of the time required hereunder
to be so satisfied or waived by the party entitled to grant such waiver and, as a result thereof, the transactions contemplated
by this Subscription Agreement are not consummated, or (d) March 1, 2021; provided that nothing herein will relieve
any party hereto from liability for any willful breach hereof prior to the time of termination, and each party hereto will be entitled
to any remedies at law or in equity to recover losses, liabilities or damages arising from such breach. The Company shall notify
Subscriber of the termination of the Merger Agreement promptly after the termination thereof.

 

8.                 
Trust Account Waiver. Subscriber hereby acknowledges that the Company has established a trust account (the “Trust
Account”) containing the proceeds of its initial public offering (the “IPO”) and from certain private
placements occurring simultaneously with the IPO (including interest accrued from time to time thereon) for the benefit of the
Company’s public stockholders and certain other parties (including the underwriters of the IPO). For and in consideration
of the Company entering into this Subscription Agreement, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Subscriber hereby (i) agrees that it does not now and shall not at any time hereafter have any
right, title, interest or claim of any kind in or to any assets held in the Trust Account, and shall not make any claim against
the Trust Account, regardless of whether such claim arises as a result of, in connection with or relating in any way to this Subscription
Agreement or any other matter, and regardless of whether such claim arises based on contract, tort, equity or any other theory
of legal liability (any and all such claims are collectively referred to hereafter as the “Released Claims”),
(ii) irrevocably waives any Released Claims that it may have against the Trust Account now or in the future as a result of, or
arising out of, any negotiations, contracts or agreements with the Company, and (iii) will not seek recourse against the Trust
Account for any reason whatsoever; provided however, that nothing in this Section 8 shall be deemed to limit any Subscriber’s
right to distributions from the Trust Account in accordance with the Company’s second amended and restated certificate of
incorporation in respect of any redemptions by Subscriber of its shares of public Common Stock of the Company acquired by any means
other than pursuant to this Subscription Agreement.

 

9.                 
Miscellaneous.

 

(a)              
All notices, requests, demands, claims, and other communications hereunder shall be in writing. Any notice, request, demand,
claim, or other communication hereunder shall be deemed duly given (i) when delivered personally to the recipient, (ii) when sent
by electronic mail, on the date of transmission to such recipient; provided, that such notice, request, demand, claim or other
communication is also sent to the recipient pursuant to clauses (i), (iii) or (iv) of this Section 9(a), (iii) one Business
Day after being sent to the recipient by reputable overnight courier service (charges prepaid), or (iv) four (4) Business Days
after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid, and, in each
case, addressed to the intended recipient at its address specified on the signature page hereof or to such electronic mail address
or address as subsequently modified by written notice given in accordance with this Section 9(a).

 

    	 	15	 

     

    

 

(b)              
Subscriber acknowledges that the Company and others will rely on the acknowledgments, understandings, agreements, representations
and warranties contained in this Subscription Agreement. Prior to the Closing, Subscriber agrees to promptly notify the Company
if it becomes aware that any of the acknowledgments, understandings, agreements, representations and warranties of Subscriber set
forth herein are no longer accurate in all material respects. The Company acknowledges that Subscriber and others will rely on
the acknowledgments, understandings, agreements, representations and warranties contained in this Subscription Agreement. Prior
to the Closing, the Company agrees to promptly notify Subscriber if it becomes aware that any of the acknowledgments, understandings,
agreements, representations and warranties of the Company set forth herein are no longer accurate in all material respects.

 

(c)              
Each of the Company and Subscriber is irrevocably authorized to produce this Subscription Agreement or a copy hereof to
any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby.

 

(d)              
Subscriber shall pay all of its own expenses in connection with this Subscription Agreement and the transactions contemplated
herein.

 

(e)              
Neither this Subscription Agreement nor any rights that may accrue to Subscriber hereunder (other than the Subscribed Shares
acquired hereunder, if any) may be transferred or assigned. Neither this Subscription Agreement nor any rights that may accrue
to the Company hereunder may be transferred or assigned (provided, that, for the avoidance of doubt, the Company may transfer the
Subscription Agreement and its rights hereunder in connection with the consummation of the Transaction). Notwithstanding the foregoing,
Subscriber may assign its rights and obligations under this Subscription Agreement to one or more of its affiliates or, with the
Company’s prior written consent, to another person, provided that no such assignment shall relieve Subscriber of
its obligations hereunder if any such assignee fails to perform such obligations.

 

(f)               
All the agreements, representations and warranties made by each party hereto in this Subscription Agreement shall survive
the Closing.

 

(g)              
The Company may request from Subscriber such additional information as the Company may deem reasonably necessary to evaluate
the eligibility of Subscriber to acquire the Subscribed Shares, and Subscriber shall provide such information as may be reasonably
requested, to the extent readily available and to the extent consistent with its internal policies and procedures.

 

    	 	16	 

     

    

 

(h)              
This Subscription Agreement may not be amended, modified, waived or terminated except by an instrument in writing, signed
by the party against whom enforcement of such modification, waiver, or termination is sought. Notwithstanding the foregoing, (i)
no amendment, modification, or waiver of this Subscription Agreement, and (ii) no consent to termination of this Subscription Agreement
pursuant to Section 7(b), shall be effective unless and until consented to in writing by the Target.

 

(i)                
This Subscription Agreement constitutes the entire agreement, and supersedes all other prior agreements, understandings,
representations and warranties, both written and oral, among the parties hereto, with respect to the subject matter hereof.

 

(j)                
Except as otherwise provided herein, this Subscription Agreement shall be binding upon, and inure to the benefit of the
parties hereto and their heirs, executors, administrators, successors, legal representatives, and permitted assigns, and the agreements,
representations, warranties, covenants and acknowledgments contained herein shall be deemed to be made by, and be binding upon,
such heirs, executors, administrators, successors, legal representatives and permitted assigns.

 

(k)              
If any provision of this Subscription Agreement shall be invalid, illegal or unenforceable, the validity, legality or enforceability
of the remaining provisions of this Subscription Agreement shall not in any way be affected or impaired thereby and shall continue
in full force and effect.

 

(l)                
This Subscription Agreement may be executed and delivered in one or more counterparts (including by facsimile or electronic
mail or in .pdf) and by different parties in separate counterparts, with the same effect as if all parties hereto had signed the
same document. All counterparts so executed and delivered shall be construed together and shall constitute one and the same agreement.

 

(m)            
This Subscription Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person; provided, however,
that (i) the Target is a third party beneficiary of Section 4(p) and
the last sentence of Section 9(h), (ii) the Placement Agent shall be an intended third party beneficiary of the representations
and warranties of the Company in Section 3 hereof and of the Subscribers in Section 4 hereof.

 

(n)              
The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Subscription
Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that
the parties hereto shall be entitled to an injunction or injunctions to prevent breaches of this Subscription Agreement and to
enforce specifically the terms and provisions of this Subscription Agreement, this being in addition to any other remedy to which
such party is entitled at law, in equity, in contract, in tort or otherwise.

 

(o)              
This Subscription Agreement shall be governed by, and construed in accordance with, the laws of the state of Delaware, without
regard to the principles of conflicts of laws that would otherwise require the application of the law of any other state.

 

    	 	17	 

     

    

 

(p)              
EACH PARTY HERETO HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OR RELATED TO THIS SUBSCRIPTION AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY ACTION, PROCEEDING OR OTHER
LITIGATION OF ANY TYPE BROUGHT BY ANY PARTY HERETO AGAINST ANY OTHER PARTY HERETO OR ANY AFFILIATE OF ANY OTHER SUCH PARTY, WHETHER
WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. THE PARTIES HERETO AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL
BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES HERETO FURTHER AGREE THAT THEIR RESPECTIVE
RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS,
IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS SUBSCRIPTION AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS SUBSCRIPTION AGREEMENT.

 

(q)              
The parties hereto agree that all disputes, legal actions, suits and proceedings arising out of or relating to this Subscription
Agreement must be brought exclusively in the Court of Chancery of the State of Delaware and any state appellate court therefrom
within the State of Delaware (or, if the Court of Chancery of the state of Delaware declines to accept jurisdiction over a particular
matter, any federal court within the State of Delaware or, in the event each federal court within the State of Delaware declines
to accept jurisdiction over a particular matter, any state court within the state of Delaware) (collectively the “Designated
Courts”). Each party hereto hereby consents and submits to the exclusive jurisdiction of the Designated Courts. No legal
action, suit or proceeding with respect to this subscription agreement may be brought in any other forum. Each party hereto hereby
irrevocably waives all claims of immunity from jurisdiction and any objection which such party may now or hereafter have to the
laying of venue of any suit, action or proceeding in any Designated Court, including any right to object on the basis that any
dispute, action, suit or proceeding brought in the Designated Courts has been brought in an improper or inconvenient forum or venue.
Each of the parties hereto also agrees that delivery of any process, summons, notice or document to a party hereof in compliance
with Section 9(a) of this Subscription Agreement shall be effective service of process for any action, suit or proceeding
in a Designated Court with respect to any matters to which the parties hereto have submitted to jurisdiction as set forth above.

 

(r)               
The Company shall, by 9:00 a.m., New York City time, on the first (1st) Business Day immediately following the date of this
Subscription Agreement, issue one or more press releases or file with the Commission a Current Report on Form 8-K (collectively,
the “Disclosure Document”) disclosing, to the extent not previously publicly disclosed, all material terms of
the transactions contemplated hereby (and by the Other Subscription Agreements), the Transaction and any other material, nonpublic
information that the Company has provided to Subscriber at any time prior to the filing of the Disclosure Document. From and after
the issuance of the Disclosure Document, Subscriber shall not be in possession of any material, non-public information received
from the Company or any of its officers, directors or employees or the Placement Agent. Notwithstanding the foregoing, the Company
shall not publicly disclose the name of Subscriber or any affiliate or investment adviser of Subscriber, or include the name of
Subscriber or any affiliate or investment adviser of Subscriber in any press release or in any filing with the Commission or any
regulatory agency or trading market, without the prior written consent (including by e-mail) of Subscriber, except as required
by the federal securities laws, rules or regulations and to the extent such disclosure is required by other laws, rules or regulations,
at the request of the staff of the Commission or regulatory agency or under the NYSE regulations, in which case the Company shall
provide Subscriber with prior written notice (including by e-mail) of such permitted disclosure, and shall reasonably consult with
Subscriber regarding such disclosure.

 

    	 	18	 

     

    

 

(s)               
The obligations of Subscriber under this Subscription Agreement are several and not joint with the obligations of any Other
Subscriber or any other investor under the Other Subscription Agreements, and Subscriber shall not be responsible in any way for
the performance of the obligations of any Other Subscriber under this Subscription Agreement or any other investor under the Other
Subscription Agreements. The decision of Subscriber to purchase Subscribed Shares pursuant to this Subscription Agreement has been
made by Subscriber independently of any Other Subscriber or any other investor and independently of any information, materials,
statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company or any of its subsidiaries which may have been made or given by any Other
Subscriber or investor or by any agent or employee of any Other Subscriber or investor, and neither Subscriber nor any of its agents
or employees shall have any liability to any Other Subscriber or investor (or any other person) relating to or arising from any
such information, materials, statements or opinions. Nothing contained herein or in any Other Subscription Agreement, and no action
taken by Subscriber or investor pursuant hereto or thereto, shall be deemed to constitute the Subscriber and other investors as
a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Subscriber and other
investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this
Subscription Agreement and the Other Subscription Agreements. Subscriber acknowledges that no Other Subscriber has acted as agent
for the Subscriber in connection with making its investment hereunder and no Other Subscriber will be acting as agent of the Subscriber
in connection with monitoring its investment in the Subscribed Shares or enforcing its rights under this Subscription Agreement.
Subscriber shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out
of this Subscription Agreement, and it shall not be necessary for any Other Subscriber or investor to be joined as an additional
party in any proceeding for such purpose.

 

 

[The remainder of this page is intentionally
left blank.]

 

    	 	19	 

     

    

 

IN WITNESS WHEREOF, each
of the Company and Subscriber has executed or caused this Subscription Agreement to be executed by its duly authorized representative
as of the date first set forth above.

  

 

	 	Flying Eagle Acquisition Corp. 
	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	
        Title:

        Address for Notices:

	 	 	 
	 	[SUBSCRIBER]
	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	
        Title:

        Address for Notices:

 

 

 

	Name in which shares are to be registered:
	 

 

	 	 	 	 
	 	 	 	 
	Number of Subscribed Shares subscribed for:	 		 
	 	 	 	 
	Price Per Subscribed Share:	 	$10.00	 
	 	 	 	 
	Aggregate Purchase Price:	$		 

 

You must pay the
Purchase Price by wire transfer of United States dollars in immediately available funds to the account of the Company specified
by the Company in the Closing Notice.

  

 

    [Signature Page to PIPE Subscription Agreement]

     

    

 

Annex
A

ELIGIBILITY REPRESENTATIONS OF SUBSCRIBER

 

This Annex A should be completed and signed
by Subscriber

and constitutes a part of the Subscription Agreement.

 

	 	A.	QUALIFIED INSTITUTIONAL BUYER STATUS (Please check the box, if applicable)

 

	 	 ̈	Subscriber is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act).

 

	 	B.	ACCREDITED INVESTOR STATUS (Please check the box)

 

	 	 ̈	Subscriber is an “accredited investor” (within the meaning of Rule 501(a) under the Securities Act) and has marked and initialed the appropriate box below indicating the provision under which it qualifies as an “accredited investor.”

 

	 	C.	AFFILIATE STATUS

(Please check the applicable box)

 

SUBSCRIBER:

 

 ̈ is:

 

 ̈
is not:

 

an “affiliate” (as
defined in Rule 144 under the Securities Act) of the Company or acting on behalf of an affiliate of the Company.

 

Rule 501(a), in relevant
part, states that an “accredited investor” shall mean any person who comes within any of the below listed categories,
or who the issuer reasonably believes comes within any of the below listed categories, at the time of the sale of the securities
to that person. Subscriber has indicated, by marking and initialing the appropriate box below, the provision(s) below which apply
to Subscriber and under which Subscriber accordingly qualifies as an “accredited investor.”

 

	 	 ̈	Any bank, registered broker or dealer, insurance company, registered investment company, business development company, or small business investment company;

 

	 	 ̈	Any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000;

 

	 	 ̈	Any employee benefit plan, within the meaning of the Employee Retirement Income Security Act of 1974, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5,000,000;

 

     

     

    

 

	 	 ̈	Any corporation, similar business trust, partnership or any organization described in Section 501(c)(3) of the Internal Revenue Code, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

 

	 	 ̈	Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

 

 

	 	 ̈	Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000. For purposes of calculating a natural person’s net worth: (a) the person’s primary residence must not be included as an asset; (b) indebtedness secured by the person’s primary residence up to the estimated fair market value of the primary residence must not be included as a liability (except that if the amount of such indebtedness outstanding at the time of calculation exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess must be included as a liability); and (c) indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the residence must be included as a liability;

 

	 	 ̈	Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.

 

	 	 ̈	Any trust with assets in excess of $5,000,000, not formed to acquire the securities offered, whose purchase is directed by a sophisticated person; or

 

	 	 ̈	Any entity in which all of the equity owners are accredited investors meeting one or more of the above tests or one of the following tests.

 

[Specify which tests:                            ]

  

	 	SUBSCRIBER:
	 	Print Name:
	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:

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