Document:

Exhibit 10.1

 

LOAN AND
SECURITY AGREEMENT

 

THIS LOAN AND SECURITY
AGREEMENT (this “Agreement”) dated as of February 26, 2021 (the “Effective Date”) among
(a) SILICON VALLEY BANK, a California corporation with a loan production office located at 275 Grove Street, Suite 2-200,
Newton, Massachusetts 02466 (“Bank”) and (b) (i) LIQUIDIA CORPORATION, a Delaware corporation (“Parent
Borrower”), (ii) LIQUIDIA TECHNOLOGIES, INC., a Delaware corporation (“Technologies”), and
(iii) LIQUIDIA PAH, LLC, a Delaware limited liability company (“Liquidia PAH” and, together with Parent
Borrower and Technologies, jointly and severally, individually and collectively, “Borrower”), provides the terms
on which Bank shall lend to Borrower and Borrower shall repay Bank. The parties agree as follows:

 

1.                  
ACCOUNTING AND OTHER TERMS

 

Accounting terms not
defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Notwithstanding
the foregoing, all financial covenant and other financial calculations shall be computed with respect to Borrower only, and not
on a consolidated basis. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13.
All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent
such terms are defined therein.

 

2.                  
LOAN AND TERMS OF PAYMENT

 

2.1               
Promise to Pay. Borrower hereby unconditionally promises to pay Bank the outstanding principal amount
of all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance with this Agreement.

 

2.1.1          
Term Loan Advances.

 

(a)                
Availability. Subject to the terms and conditions of this Agreement, Borrower shall request on the Effective Date
and Bank shall, on or about the Effective Date, make one (1) term loan advance available to Borrower in an original principal amount
of Ten Million Five Hundred Thousand Dollars ($10,500,000.00) (the “Term A Loan Advance”). Subject to the terms
and conditions of this Agreement, Borrower shall request on the date on which the Second Tranche Availability Event occurs and
Bank shall, on or about the date on which the Second Tranche Availability Event occurs, make one (1) term loan advance available
to Borrower in an original principal amount of Five Million Dollars ($5,000,000.00) (the “Term B Loan Advance”).
Subject to the terms and conditions of this Agreement, Borrower shall request on the date on which the Third Tranche Availability
Event occurs and Bank shall, on or about the date on which the Third Tranche Availability Event occurs, make one (1) term loan
advance available to Borrower in an original principal amount of Five Million Dollars ($5,000,000.00) (the “Term C Loan
Advance”). If the Second Tranche Availability Event has not occurred and the Term B Loan Advance has not been made by
the date on which the Third Tranche Availability Event occurs then, without limitation of Borrower’s obligation to request
the Term C Loan Advance pursuant to the previous sentence, Borrower may request the Term B Loan Advance and Bank shall make the
Term B Loan Advance available to Borrower in the original principal amount of Five Million Dollars ($5,000,000.00). The Term A
Loan Advance, the Term B Loan Advance, and the Term C Loan Advance are each referred to herein as a “Term Loan Advance”
and, collectively, as the “Term Loan Advances”. After repayment, no Term Loan Advance (or any portion thereof)
may be reborrowed.

 

(b)               
Interest Period. With respect to each Term Loan Advance, commencing on the Payment Date of the month following the
month in which the Funding Date of such Term Loan Advance occurs, and continuing on the Payment Date of each month thereafter,
Borrower shall make monthly payments of interest, in arrears, on the principal amount of such Term Loan Advance, at the rate set
forth in Section 2.2(a).

 

     

     

    

 

(c)                
 Repayment. Commencing on April 1, 2023 and continuing on the Payment Date of each month thereafter, Borrower shall
repay the Term Loan Advances in (i) eighteen (18) equal monthly installments of principal, plus (ii) monthly payments of accrued
interest at the rate set forth in Section 2.2(a). All outstanding principal and accrued and unpaid interest under the Term Loan
Advances, and all other outstanding Obligations with respect to the Term Loan Advances, are due and payable in full on the Term
Loan Advance Maturity Date.

 

(d)               
Permitted Prepayment. Borrower shall have the option to prepay all, but not less than all, of the Term Loan Advances,
provided Borrower (i) delivers written notice to Bank of its election to prepay the Term Loan Advances at least ten (10) days prior
to such prepayment, and (ii) pays, on the date of such prepayment (A) the outstanding principal plus accrued and unpaid interest
with respect to the Term Loan Advances, (B) the Final Payment, (C) the Prepayment Fee, and (D) all other sums, if any, that shall
have become due and payable with respect to the Term Loan Advances, including interest at the Default Rate with respect to any
past due amounts.

 

(e)                
Mandatory Prepayment Upon an Acceleration. If the Term Loan Advances are accelerated by Bank following the occurrence
and during the continuance of an Event of Default, Borrower shall immediately pay to Bank an amount equal to the sum of (i) all
outstanding principal plus accrued and unpaid interest with respect to the Term Loan Advances, (ii) the Final Payment, (iii) the
Prepayment Fee, and (iv) all other sums, if any, that shall have become due and payable with respect to the Term Loan Advances,
including interest at the Default Rate with respect to any past due amounts.

 

2.2               
Payment of Interest on the Credit Extensions. 

 

(a)                
Interest Rate on Term Loan Advances. Subject to Section 2.2(b), the outstanding principal amount of each Term Loan
Advance shall accrue interest at a floating per annum rate equal to the greater of (i) three-quarters of one percent (0.75%) above
the Prime Rate and (ii) four percent (4.0%), which interest shall be payable monthly in accordance with Section 2.2(d) below.

 

(b)               Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall
bear interest at a rate per annum which is four percent (4.0%) above the rate that is otherwise applicable thereto (the “Default
Rate”). Fees and expenses which are required to be paid by Borrower pursuant to the Loan Documents (including, without
limitation, Bank Expenses) but are not paid when due shall bear interest until paid at a rate equal to the highest rate applicable
to the Obligations. Payment or acceptance of the increased interest rate provided in this Section 2.2(b) is not a permitted
alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights
or remedies of Bank.

 

(c)                Adjustment
to Interest Rate. Changes to the interest rate of any Credit Extension based on changes to the Prime Rate shall be effective
on the effective date of any change to the Prime Rate and to the extent of any such change.

 

(d)               
Payment; Interest Computation. Interest is payable monthly on the Payment Date of each month and shall be computed
on the basis of a 360-day year for the actual number of days elapsed. In computing interest, (i) all payments received after
2:00 p.m. Eastern time on any day shall be deemed received at the opening of business on the next Business Day, and (ii) the
date of the making of any Credit Extension shall be included and the date of payment shall be excluded; provided, however, that
if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such
Credit Extension.

 

2.3               
Fees. Borrower shall pay to Bank:

 

(a)                
Final Payment. The Final Payment, when due hereunder;

 

(b)               
Prepayment Fee. The Prepayment Fee, when due hereunder; and

 

(c)                
Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation
of this Agreement) incurred through and after the Effective Date, when due (or, if no stated due date, upon demand by Bank).

 

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Unless otherwise provided
in this Agreement or in a separate writing by Bank, Borrower shall not be entitled to any credit, rebate, or repayment of any fees
earned by Bank pursuant to this Agreement notwithstanding any termination of this Agreement or the suspension or termination of
Bank’s obligation to make loans and advances hereunder. Bank may deduct amounts owing by Borrower under the clauses of this
Section 2.3 pursuant to the terms of Section 2.4(c). Bank shall provide Borrower written notice of deductions made from the Designated
Deposit Account pursuant to the terms of the clauses of this Section 2.3.

 

2.4               
Payments; Application of Payments; Debit of Accounts. 

 

(a)                
All payments to be made by Borrower under any Loan Document shall be made in immediately available funds in Dollars, without
setoff or counterclaim, before 2:00 p.m. Eastern time on the date when due. Payments of principal and/or interest received after
2:00 p.m. Eastern time are considered received at the opening of business on the next Business Day. When a payment is due on a
day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable,
shall continue to accrue until paid.

 

(b)               
Bank has the exclusive right to determine the order and manner in which all payments with respect to the Obligations may
be applied. Borrower shall have no right to specify the order or the accounts to which Bank shall allocate or apply any payments
required to be made by Borrower to Bank or otherwise received by Bank under this Agreement when any such allocation or application
is not specified elsewhere in this Agreement.

 

(c)                
Bank may debit any of Borrower’s deposit accounts, including the Designated Deposit Account, for principal and interest
payments or any other amounts Borrower owes Bank when due. Bank shall promptly notify Borrower when it debits Borrower’s
accounts for any payments other than payments on account of principal or interest, provided that any failure to provide such notice
by Bank shall not be deemed a breach of this Agreement and shall not result in any liability to Bank. These debits shall not constitute
a set-off.

 

2.5               
Withholding. Payments received by Bank from Borrower under this Agreement will be made free and clear
of and without deduction for any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments,
fees or other charges imposed by any Governmental Authority (including any interest, additions to tax or penalties applicable thereto)
other than taxes imposed on the net income or profits of Bank as a result of Bank being organized under the laws of, or having
its principal office or its applicable lending office located in, the jurisdiction imposing such tax (or any political subdivision
thereof). Specifically, however, if at any time any Governmental Authority, applicable law, regulation or international agreement
requires Borrower to make any withholding or deduction from any such payment or other sum payable hereunder to Bank, Borrower hereby
covenants and agrees that the amount due from Borrower with respect to such payment or other sum payable hereunder will be increased
to the extent necessary to ensure that, after the making of such required withholding or deduction, Bank receives a net sum equal
to the sum which it would have received had no withholding or deduction been required, and Borrower shall pay the full amount withheld
or deducted to the relevant Governmental Authority. Borrower will, upon request, furnish Bank with proof reasonably satisfactory
to Bank indicating that Borrower has made such withholding payment; provided, however, that Borrower need not make any withholding
payment if the amount or validity of such withholding payment is contested in good faith by appropriate and timely proceedings
and as to which payment in full is bonded or reserved against by Borrower. The agreements and obligations of Borrower contained
in this Section 2.5 shall survive the termination of this Agreement.

 

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3.                  
CONDITIONS OF LOANS

 

3.1               
Conditions Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit Extension
is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, such documents,
and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation:

 

(a)            duly
executed signatures to the Loan Documents;

 

(b)            duly
executed signature to the Warrant, together with a capitalization table of Parent Borrower;

 

(c)             the
Operating Documents and (i) a long form good standing certificate of each Borrower certified by the Secretary of State of Delaware
and (ii) a good standing certificate of each of Parent Borrower and Technologies certified by the Secretary of State of North
Carolina, each as of a date no earlier than thirty (30) days prior to the Effective Date;

 

(d)            a
secretary’s corporate borrowing certificate of each of Parent Borrower and Technologies with respect to such Borrower’s
Operating Documents, incumbency, specimen signatures and resolutions authorizing the execution and delivery of this Agreement
and the other Loan Documents;

 

(e)            a limited liability
company borrowing certificate of Liquidia PAH with respect to Liquidia PAH’s Operating Documents, incumbency, specimen signatures
and resolutions authorizing the execution and delivery of this Agreement and the other Loan Documents to which it is a party;

 

(f)             duly executed signatures
to the completed Borrowing Resolutions for each Borrower;

 

(g)            certified copies,
dated as of a recent date, of financing statement searches, as Bank may request, accompanied by written evidence (including any
UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have
been or, in connection with the initial Credit Extension, will be terminated or released;

 

(h)            the Perfection Certificate
of each Borrower, together with the duly executed signature thereto;

 

(i)              a legal opinion (authority
and enforceability) of Borrower’s counsel dated as of the Effective Date, together with the duly executed signature thereto;

 

(j)             evidence satisfactory
to Bank that the insurance policies and endorsements required by Section 6.5 hereof are in full force and effect, together with
appropriate evidence showing lender loss payable and/or additional insured clauses or endorsements in favor of Bank;

 

(k)            duly executed original
signature to a payoff letter from Pacific Western Bank;

 

(l)              evidence that (i)
the Liens securing Indebtedness owed by Borrower to Pacific Western Bank will be terminated and (ii) the documents and/or filings
evidencing the perfection of such Liens, including without limitation any financing statements and/or control agreements, have
or will, concurrently with the initial Credit Extension, be terminated; and

 

(m)           payment of the fees
and Bank Expenses then due as specified in Section 2.3 hereof.

 

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3.2               
Conditions Precedent to all Credit Extensions. Bank’s obligations to make each Credit Extension,
including the initial Credit Extension, is subject to the following conditions precedent:

 

(a)                
timely receipt of an executed Payment/Advance Form;

 

(b)                the
representations and warranties in this Agreement shall be true, accurate, and complete in all material respects on the date
of the proposed Credit Extension and/or the Payment/Advance Form and on the Funding Date of each Credit Extension; provided,
however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties
expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no
Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is
Borrower’s representation and warranty on that date that the representations and warranties in this Agreement remain
true, accurate, and complete in all material respects; provided, however, that such materiality qualifier shall not be
applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof;
and provided, further that those representations and warranties expressly referring to a specific date shall be true,
accurate and complete in all material respects as of such date; and

 

(c)                
Bank determines to its reasonable satisfaction that there has not been any material impairment in the general affairs, management,
results of operation, financial condition of Borrower or the prospect of repayment of the Obligations.

 

3.3               
Covenant to Deliver. Borrower agrees to deliver to Bank each item required to be delivered to Bank under
this Agreement as a condition precedent to any Credit Extension. Borrower expressly agrees that a Credit Extension made prior to
the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrower’s obligation to deliver such item,
and the making of any Credit Extension in the absence of a required item shall be in Bank’s sole discretion.

 

3.4               
Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the
making of a Term Loan Advance set forth in this Agreement, to obtain a Term Loan Advance, Borrower shall notify Bank (which notice
shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Eastern time two (2) Business Days before the proposed
Funding Date of the Term Loan Advance. Together with any such electronic or facsimile notification, Borrower shall deliver to Bank
by electronic mail or facsimile a completed Payment/Advance Form executed by an Authorized Signer. Bank may rely on any telephone
notice given by a person whom Bank believes is an Authorized Signer. Bank shall credit any Term Loan Advances to the Designated
Deposit Account. Bank may make Term Loan Advances under this Agreement based on instructions from an Authorized Signer or without
instructions if the Term Loan Advances are necessary to meet Obligations which have become due.

 

4.                  
CREATION OF SECURITY INTEREST

 

4.1               
Grant of Security Interest. Borrower hereby grants Bank, to secure the payment and performance in full
of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now
owned or hereafter acquired or arising, and all proceeds and products thereof.

 

Borrower acknowledges
that it previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank. Regardless of the terms
of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations
hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by the first priority perfected security
interest in the Collateral granted herein (subject only to Permitted Liens that are permitted pursuant to the terms of this Agreement
to have superior priority to Bank’s Lien in this Agreement).

 

If this Agreement is
terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations)
are repaid in full in cash. Upon payment in full in cash of the Obligations (other than inchoate indemnity obligations) and at
such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall, at the sole cost and expense of Borrower,
release its Liens in the Collateral and all rights therein shall revert to Borrower. In the event (x) all Obligations (other than
inchoate indemnity obligations), except for Bank Services, are satisfied in full, and (y) this Agreement is terminated, Bank shall
terminate the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its good faith business
judgment for Bank Services, if any. In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall provide
to Bank cash collateral in an amount equal to (x) if such Letters of Credit are denominated in Dollars, then at least one
hundred five percent (105.0%); and (y) if such Letters of Credit are denominated in a Foreign Currency, then at least one
hundred ten percent (110.0%), of the Dollar Equivalent of the face amount of all such Letters of Credit plus, in each case, all
interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment),
to secure all of the Obligations relating to such Letters of Credit.

 

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4.2               
 Priority of Security Interest. Borrower represents, warrants, and covenants that the security interest
granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject
only to Permitted Liens that are permitted pursuant to the terms of this Agreement to have superior priority to Bank’s Lien
under this Agreement). If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Bank in a writing signed
by Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof,
all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank.

 

4.3               
Authorization to File Financing Statements. Borrower hereby authorizes Bank to file financing statements,
without notice to Borrower, with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder,
including a notice that any disposition of the Collateral, by either Borrower or any other Person, shall be deemed to violate the
rights of Bank under the Code. Such financing statements may indicate the Collateral as “all assets of the Debtor”
or words of similar effect, or as being of an equal or lesser scope, or with greater detail, all in Bank’s discretion.

 

5.                  
REPRESENTATIONS AND WARRANTIES

 

Borrower represents
and warrants as follows:

 

5.1               
Due Organization, Authorization; Power and Authority. Borrower is duly existing and in good standing as
a Registered Organization in its jurisdiction of formation and is qualified and licensed to do business and is in good standing
in any jurisdiction in which the conduct of its business or its ownership of property requires that it be qualified except where
the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In connection
with this Agreement, each Borrower has delivered to Bank a completed certificate signed by such Borrower, entitled “Perfection
Certificate” (collectively, the “Perfection Certificate”). Borrower represents and warrants to Bank that
(a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower
is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection
Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has
none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief
executive office as well as Borrower’s mailing address (if different than its chief executive office); (e) Borrower
(and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure
or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate
pertaining to Borrower and each of its Subsidiaries is accurate and complete in all material respects (it being understood and
agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to
the extent permitted by one or more specific provisions in this Agreement). If Borrower is not now a Registered Organization but
later becomes one, Borrower shall promptly notify Bank of such occurrence and provide Bank with Borrower’s organizational
identification number.

 

The execution, delivery
and performance by Borrower of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with
any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any
material Requirement of Law, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree,
determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets
may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval
from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and
effect), or (v) conflict with, contravene, constitute a default or breach under, or result in or permit the termination or
acceleration of, any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it
is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect on Borrower’s
business.

 

5.2                Collateral.
Borrower has good title to, rights in, and the power to transfer each item of the Collateral upon which it purports to grant
a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no Collateral Accounts at or with
any bank or financial institution other than Bank or Bank’s Affiliates except for the Collateral Accounts described in
the Perfection Certificate delivered to Bank in connection herewith and which Borrower has taken such actions as are
necessary to give Bank a perfected security interest therein, to the extent required pursuant to the terms of Section 6.6(c).
The Accounts are bona fide, existing obligations of the Account Debtors.

 

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The Collateral is not
in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate. None
of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as
permitted pursuant to Section 7.2. All Inventory is in all material respects of good and marketable quality, free from material
defects.

 

Borrower is the sole
owner of the Intellectual Property which it owns or purports to own except for (a) non-exclusive licenses granted to its customers
in the ordinary course of business, (b) over-the-counter software that is commercially available to the public, and (c) material
Intellectual Property licensed to Borrower and noted on the Perfection Certificate. Each Patent which it owns or purports to own
and which is material to Borrower’s business is valid and enforceable, and no part of the Intellectual Property which Borrower
owns or purports to own and which is material to Borrower’s business has been judged invalid or unenforceable, in whole or
in part. To the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates
the rights of any third party except to the extent such claim would not reasonably be expected to have a material adverse effect
on Borrower’s business.

 

Except as noted on
the Perfection Certificate, Borrower is not a party to, nor is it bound by, any Restricted License.

 

5.3               
Litigation. There are no actions or proceedings pending or, to the knowledge of any Responsible Officer,
threatened in writing by or against Borrower or any of its Subsidiaries involving more than, individually or in the aggregate,
Five Hundred Thousand Dollars ($500,000.00).

 

5.4               
Financial Statements; Financial Condition. All consolidated financial statements for Borrower and any
of its Subsidiaries delivered to Bank by submission to the Financial Statement Repository or otherwise submitted to Bank fairly
present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of
operations as of the dates thereof and for the periods covered thereby. There has not been any material deterioration in Borrower’s
consolidated financial condition since the date of the most recent financial statements submitted to the Financial Statement Repository
or otherwise submitted to Bank.

 

5.5               
Solvency. The fair salable value of Borrower’s consolidated assets (including goodwill minus disposition
costs) exceeds the fair value of Borrower’s liabilities; Borrower is not left with unreasonably small capital after the transactions
in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature.

 

5.6               
Regulatory Compliance. Borrower is not an “investment company” or a company “controlled”
by an “investment company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of
its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors).
Borrower (a) has complied in all material respects with all Requirements of Law, and (b) has not violated any Requirements
of Law the violation of which could reasonably be expected to have a material adverse effect on its business. None of Borrower’s
or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s
knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than
legally. Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations
or filings with, and given all notices to, all Governmental Authorities that are necessary to continue their respective businesses
as currently conducted, except where the failure to obtain or make such consents, declarations, notices or filings could not reasonably
be expected to have a material adverse effect on the business of Borrower.

 

5.7               
Subsidiaries; Investments. Borrower does not own any stock, partnership, or other ownership interest or
other equity securities except for Permitted Investments.

 

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5.8                Tax
Returns and Payments; Pension Contributions. Borrower has timely filed all required tax returns and reports (or obtained
valid extensions therefor), and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits
and contributions owed by Borrower except (a) to the extent such taxes are being contested in good faith by appropriate
proceedings promptly instituted and diligently conducted, so long as such reserve or other appropriate provision, if any, as
shall be required in conformity with GAAP shall have been made therefor, or (b) if such taxes, assessments, deposits and
contributions do not, individually or in the aggregate, exceed One Hundred Twenty-Five Thousand Dollars ($125,000.00).

 

To the extent Borrower
defers payment of any contested taxes, Borrower shall (i) notify Bank in writing of the commencement of, and any material development
in, the proceedings, and (ii) post bonds or take any other steps required to prevent the Governmental Authority levying such contested
taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien.” Borrower is unaware of
any claims or adjustments proposed for any of Borrower's prior tax years which could reasonably be expected to result in additional
taxes becoming due and payable by Borrower in excess of One Hundred Twenty-Five Thousand Dollars ($125,000.00) individually or
in the aggregate. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation
plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete
termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected
to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or
any other governmental agency.

 

5.9               
Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working capital and
to fund its general business requirements and not for personal, family, household or agricultural purposes.

 

5.10            
Full Disclosure. No written representation, warranty or other statement of Borrower in any report, certificate,
or written statement submitted to the Financial Statement Repository or otherwise submitted to Bank, as of the date such representation,
warranty, or other statement was made, taken together with all such written reports, written certificates and written statements
submitted to the Financial Statement Repository or otherwise submitted to Bank, contains any untrue statement of a material fact
or omits to state a material fact necessary to make the statements contained in the reports, certificates, or written statements
not misleading (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon
reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections
and forecasts may differ from the projected or forecasted results).

 

5.11            
Definition of “Knowledge.” For purposes of the Loan Documents, whenever a representation
or warranty is made to Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with
a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation, of any Responsible
Officer.

 

6.                  
AFFIRMATIVE COVENANTS

 

Borrower shall do all
of the following:

 

6.1               
Government Compliance. 

 

(a)                
Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation
and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material
adverse effect on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary comply, in all material
respects, with all laws, ordinances and regulations to which it is subject.

 

(b)               
Obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents
to which it is a party and the grant of a security interest to Bank in all of the Collateral. Borrower shall promptly provide copies
of any such obtained Governmental Approvals to Bank.

 

    -8-

     

    

 

6.2               
Financial Statements, Reports. Provide Bank with the following by submitting to the Financial Statement
Repository:

 

(a)                
 Monthly Financial Statements. As soon as available, but no later than thirty (30) days after the last day of each
month, a company prepared consolidated balance sheet and income statement covering Borrower’s consolidated operations for
such month in a form acceptable to Bank (the “Monthly Financial Statements”);

 

(b)              
Quarterly Compliance Statement. Within thirty (30) days after the last day of each calendar quarter of Borrower,
and together with the Monthly Financial Statements for the last month in such calendar quarter, a completed Compliance Statement,
confirming that, as of the end of such calendar quarter, Borrower was in full compliance with all of the terms and conditions of
this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement and
such other information as Bank may reasonably request;

 

(c)              
Annual Operating Budget and Financial Projections. As soon as available, and in any event no later than sixty (60)
days following the end of each fiscal year of Borrower, and within ten (10) days of any with any updates or amendments thereto,
(i) annual operating budgets (including income statements, balance sheets and cash flow statements, by month), and (ii) annual
financial projections (on a quarterly basis), in each case as approved by Borrower’s board of directors, together with any
related business forecasts used in the preparation of such annual financial projections, in each case in a form reasonably acceptable
to Bank (it being understood and agreed that the form of such budgets and projections delivered to Bank prior to the Effective
Date is a form acceptable to Bank);

 

(d)               
Other Statements. Within five (5) days of delivery, copies of all statements, reports and notices made available
to Borrower’s security holders or to any holders of Subordinated Debt;

 

(e)                
10-K/10-Q. As soon as available, and in any event no later than (i) forty-five (45) days after the end of the first
three (3) fiscal quarters in each fiscal year of Borrower, Borrower’s 10-Q report and (ii) ninety (90) days after the last
day of each fiscal year of Borrower, Borrower’s 10-K report, together with an unqualified opinion on such 10-K from an independent
certified public accounting firm reasonably acceptable to Bank;

 

(f)                 
SEC Filings. Within five (5) days of filing, copies of all periodic and other reports, proxy statements and other
materials filed by Borrower and/or any Guarantor with the SEC, any Governmental Authority succeeding to any or all of the functions
of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be. Documents required
to be delivered pursuant to the terms hereof (to the extent any such documents are included in materials otherwise filed with the
SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower
posts such documents, or provides a link thereto, on Borrower’s website on the internet at Borrower’s website address;
provided, however, Borrower shall promptly notify Bank in writing (which may be by electronic mail) of the posting of any such
documents;

 

(g)               
Legal Action Notice. A prompt report of any legal actions pending or threatened in writing against Borrower or any
of its Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate,
Five Hundred Thousand Dollars ($500,000.00) or more;

 

(h)               
Beneficial Ownership Information. Prompt written notice of any changes to the beneficial ownership information set
out in Section 14 of the Perfection Certificate. Borrower understands and acknowledges that Bank relies on such true, accurate
and up-to-date beneficial ownership information to meet Bank’s regulatory obligations to obtain, verify and record information
about the beneficial owners of its legal entity customers; and

 

    -9-

     

    

 

(i)                 
Other Financial Information. Other financial information reasonably requested by Bank.

 

Any submission by
Borrower of a Compliance Statement or any other financial statement submitted to the Financial Statement Repository pursuant
to this Section 6.2 or otherwise submitted to Bank shall be deemed to be a representation by Borrower that (a) as of the date
of such Compliance Statement or other financial statement, the information and calculations set forth therein are true,
accurate and correct in all material respects, (b) as of the end of the compliance period set forth in such submission,
Borrower is in complete compliance with all required covenants except as noted in such Compliance Statement or other
financial statement, as applicable; (c) as of the date of such submission, no Events of Default have occurred or are
continuing; (d) all representations and warranties other than any representations or warranties that are made as of a
specific date in Section 5 remain true and correct in all material respects as of the date of such submission except as noted
in such Compliance Statement or other financial statement, as applicable; (e) as of the date of such submission, Borrower and
each of its Subsidiaries have timely filed all required tax returns and reports (or obtained valid extensions therefor), and
Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by
Borrower except as otherwise permitted pursuant to the terms of Section 5.8; and (f) as of the date of such submission, no
Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or
benefits of which Borrower has not previously provided written notification to Bank.

 

6.3               
Inventory; Returns. Keep all Inventory in good and marketable condition, free from material defects. Returns
and allowances between Borrower and its Account Debtors shall follow Borrower’s customary practices as they exist at the
Effective Date. Borrower must promptly notify Bank of all returns, recoveries, disputes and claims that involve more than One Hundred
Thousand Dollars ($100,000.00).

 

6.4               Taxes; Pensions. Timely file, and require each of its Subsidiaries to timely file, all required tax returns
and reports (or obtain valid extensions therefor) and timely pay, and require each of its Subsidiaries to timely pay, all foreign,
federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries, except for
deferred payment of any taxes contested or permitted pursuant to the terms of Section 5.8 hereof, and shall deliver to Bank, on
demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit
sharing and deferred compensation plans in accordance with their terms.

 

6.5               
Insurance. 

 

(a)                
Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry
and location and as Bank may reasonably request. Insurance policies shall be in a form, with financially sound and reputable insurance
companies that are not Affiliates of Borrower, and in amounts that are reasonably satisfactory to Bank. All property policies shall
have a lender’s loss payable endorsement showing Bank as the sole lender loss payee. All commercial general liability policies
shall show, or have endorsements showing, Bank as an additional insured. Bank shall be named as lender loss payee and/or additional
insured with respect to any such insurance providing coverage in respect of any Collateral.

 

(b)               
Ensure that proceeds payable under any property policy are, at Bank’s option, payable to Bank on account of the Obligations.
Notwithstanding the foregoing, (i) so long as no Event of Default has occurred and is continuing, Borrower shall have the option
of applying the proceeds of any casualty policy up to Five Hundred Thousand Dollars ($500,000.00) in the aggregate for all losses
under all casualty policies in any one year, toward the replacement or repair of destroyed or damaged property; provided that any
such replaced or repaired property (A) shall be of equal or like value as the replaced or repaired Collateral and (B) shall be
deemed Collateral in which Bank has been granted a first priority security interest, and (ii) after the occurrence and during the
continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Bank, be payable to
Bank on account of the Obligations.

 

(c)                
At Bank’s request, Borrower shall deliver certified copies of insurance policies and evidence of all premium payments.
Each provider of any such insurance required under this Section 6.5 shall agree, by endorsement upon the policy or policies issued
by it or by independent instruments furnished to Bank, that it will give Bank thirty (30) days prior written notice before
any such policy or policies shall be materially altered or canceled. If Borrower fails to obtain insurance as required under this
Section 6.5 or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or
part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the policies Bank
deems prudent.

 

    -10-

     

    

 

6.6               
Accounts.

 

(a)                
 At all times on and after July 1, 2021, maintain all of Borrower’s, all of its Subsidiaries’, and any Guarantor’s
operating and other depository accounts and excess cash with Bank and Bank’s Affiliates.

 

(b)               
In addition to the foregoing, at all times on and after July 1, 2021, Borrower, all of its Subsidiaries, and any Guarantor
shall conduct all letters of credit and business credit card banking exclusively with Bank.

 

(c)                
In addition to and without limiting the restrictions in (a), Borrower shall provide Bank five (5) days prior written notice
before establishing any Collateral Account at or with any bank or financial institution other than Bank or Bank’s Affiliates.
For any Collateral Account that Bank in its sole discretion permits Borrower at any time to open or maintain on or after July 1,
2021, Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral Account
is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account
to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder which Control Agreement may not
be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not apply to deposit accounts
exclusively used for payroll, payroll taxes, and other employee wage and benefit payments to or for the benefit of Borrower’s
employees and identified to Bank by Borrower as such.

 

6.7               
Protection of Intellectual Property Rights. 

 

(a)                
(i) Use commercially reasonable efforts to protect, defend and maintain the validity and enforceability of the Intellectual
Property material to Borrower’s business; (ii) promptly advise Bank in writing of material infringements or any other event
that could reasonably be expected to materially and adversely affect the value of the Intellectual Property material to Borrower’s
business; and (iii) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated
to the public without Bank’s written consent.

 

(b)               
 Provide written notice to Bank within ten (10) days of entering or becoming bound by any Restricted License (other than
over-the-counter software that is commercially available to the public). Borrower shall take such steps as Bank reasonably requests
to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any Restricted License to
be deemed “Collateral” and for Bank to have a security interest in it that might otherwise be restricted or prohibited
by law or by the terms of any such Restricted License, whether now existing or entered into in the future, and (ii) Bank to
have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Bank’s
rights and remedies under this Agreement and the other Loan Documents.

 

6.8               
Financial Covenant – Cumulative Cash Burn. Have at all times, to be tested as of the last
day of each calendar quarter, as measured cumulatively from January 1, 2021, Cash Burn for the period ending on the last day of
such calendar quarter in an amount equal to at least the amount set forth in the table below corresponding to such period; provided,
however, that, the amounts set forth below shall be increased by an amount equal to seventy-five percent (75.0%) of the aggregate
net cash proceeds received by Borrower from the sale of Borrower’s equity securities on or after the Effective Date but on
or prior to the last day of such calendar quarter.

 

	Period Ending	 	Cumulative Cash Burn	 
	March 31, 2021	 	$	(10,500,000.00	)
	June 30, 2021	 	$	(17,000,000.00	)
	September 30, 2021	 	$	(23,000,000.00	)
	December 31, 2021	 	$	(28,500,000.00	)
	March 31, 2022	 	$	(33,500,000.00	)
	June 30, 2022, and for the period ending on the last day of each calendar quarter thereafter	 	$	(38,000,000.00	)

 

    -11-

     

    

 

Notwithstanding the
foregoing, the financial covenant set forth in this Section 6.8 shall not be tested for any calendar quarter (such quarter, a “Tested
Quarter”) (a) with respect to which Borrower maintained the Minimum Cash Balance at all times during the period commencing
on the first day of such Tested Quarter through and including the date that is thirty (30) days after the last day of such Tested
Quarter; provided, however that the financial covenant set forth in this Section 6.8 shall be tested for such Tested Quarter if
Borrower does not maintain the Minimum Cash Balance during the period commencing on the date that is thirty-one (31) days after
the last day of such Tested Quarter through and including the last day of the calendar quarter immediately following such Tested
Quarter, or (b) ending on or after the Funding Date of the Term C Loan Advance.

 

6.9               
Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement,
make available to Bank, without expense to Bank, Borrower and its officers, employees and agents and Borrower's books and records,
to the extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted
by or against Bank with respect to any Collateral or relating to Borrower.

 

6.10            
Further Assurances. Execute any further instruments and take further action as Bank reasonably requests
to perfect or continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement. Deliver to Bank, within
five (5) days after the same are sent or received, copies of all correspondence, reports, documents and other filings with any
Governmental Authority regarding compliance with or maintenance of Governmental Approvals or Requirements of Law or in each case
where non-compliance could reasonably be expected to have a material adverse effect on any of the Governmental Approvals or otherwise
on the operations of Borrower or any of its Subsidiaries.

 

6.11            
Post-Closing Requirements. Deliver to Bank, in form and substance satisfactory to Bank, within thirty
(30) days of the Effective Date, a certificate of good standing/foreign qualification for Liquidia PAH certified by the Secretary
of State (or equivalent agency) for North Carolina, dated as of a date no earlier than thirty (30) days prior to the Effective
Date.

 

7.                  
NEGATIVE COVENANTS

 

Borrower shall not
do any of the following without Bank’s prior written consent:

 

7.1               
Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (including, without limitation,
pursuant to a Division) (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any
part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out or
obsolete Equipment that is, in the reasonable judgment of Borrower, no longer economically practicable to maintain or useful in
the ordinary course of business of Borrower; (c) consisting of Permitted Liens and Permitted Investments; (d) consisting of the
sale or issuance of any stock of Borrower permitted under Section 7.2 of this Agreement; (e) consisting of Borrower’s use
or transfer of money or Cash Equivalents in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents;
and (f) consisting of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course
of business.

 

7.2               
Changes in Business, Management, Control, or Business Locations.  (a) Engage in or permit any of its Subsidiaries
to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably
related thereto; (b) liquidate or dissolve; (c) fail to provide notice to Bank of any Key Person departing from or ceasing to be
employed by Borrower within ten (10) Business Days after his or her departure from Borrower; or (d) permit or suffer any Change
in Control.

 

    -12-

     

    

 

Borrower shall
not, without at least thirty (30) days prior written notice to Bank: (1) add any new offices or business locations, including
warehouses (unless such new offices or business locations contain less than One Hundred Thousand Dollars ($100,000.00) in
Borrower’s assets or property) or deliver any portion of the Collateral valued, individually or in the aggregate, in
excess of One Hundred Thousand Dollars ($100,000.00) to a bailee at a location other than to a bailee and at a location
already disclosed in the Perfection Certificate, (2) change its jurisdiction of organization, (3) change its organizational
structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction
of organization. If Borrower intends to add any new offices or business locations, including warehouses, containing in excess
of One Hundred Thousand Dollars ($100,000.00) of Borrower's assets or property, then Borrower will cause the landlord of any
such new offices or business locations, including warehouses, to execute and deliver a landlord consent in form and substance
reasonably satisfactory to Bank. If Borrower intends to deliver any portion of the Collateral valued, individually or in the
aggregate, in excess of One Hundred Thousand Dollars ($100,000.00) to a bailee, and Bank and such bailee are not already
parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the
Collateral, then Borrower will cause such bailee to execute and deliver a bailee agreement in form and substance reasonably
satisfactory to Bank.

 

7.3            
Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate,
with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock
or property of another Person (including, without limitation, by the formation of any Subsidiary or pursuant to a Division) except
for Permitted Acquisitions. A Borrower may merge or consolidate into another Borrower and a Subsidiary (which is not a Borrower)
may merge or consolidate into another Subsidiary or into Borrower.

 

7.4              Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do
so, other than Permitted Indebtedness.

 

7.5              
Encumbrance. Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any
right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens,
permit any Collateral not to be subject to the first priority security interest granted herein, or enter into any agreement, document,
instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has
the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon,
or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, in each case except as is otherwise permitted
in Section 7.1 hereof and the definition of “Permitted Liens” herein.

 

7.6               
Maintenance of Collateral Accounts.  Maintain any Collateral Account except pursuant to the terms of Section
6.6(c) hereof.

 

7.7              
Distributions; Investments. (a) Pay any dividends or make any distribution or payment or redeem, retire
or purchase any capital stock; provided that (i) any Subsidiary (that is not a Borrower) may pay dividends or make distributions
to Borrower or another Subsidiary, (ii) Borrower may convert any of its convertible securities into other securities pursuant to
the terms of such convertible securities or otherwise in exchange thereof, (iii) Borrower may make payments of cash in lieu of
the issuance of fractional shares in aggregate amount for all such payments not to exceed One Hundred Thousand Dollars ($100,000.00)
per fiscal year and (iv) Borrower may repurchase the stock of former directors, officers employees or consultants pursuant to stock
repurchase agreements so long as an Event of Default does not exist at the time of any such repurchase and would not exist after
giving effect to any such repurchase, provided that the aggregate amount of all such repurchases does not exceed Two Hundred Fifty
Thousand Dollars ($250,000.00) per fiscal year; or (b) directly or indirectly make any Investment (including, without limitation,
by the formation of any Subsidiary) other than Permitted Investments, or permit any of its Subsidiaries to do so.

 

7.8               Transactions with Affiliates.  Directly or indirectly enter into or permit to exist any material transaction
with any Affiliate of Borrower, except for (a) transactions that are in the ordinary course of Borrower’s business, upon
fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with
a non-affiliated Person, (b) transactions of the type described in and permitted by Sections 7.1, 7.3 and 7.7 hereof, and (c) unsecured
debt financings with Borrower’s existing investors, so long as all such Indebtedness is Subordinated Debt.

 

    -13-

     

    

 

7.9                Subordinated Debt.  (a) Make or permit any payment on any Subordinated Debt, except under the terms of
the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) except to the extent
permitted by the applicable subordination, intercreditor, or other similar agreement with respect to the Subordinated Debt amend
any provision in any document relating to the Subordinated Debt which would increase the amount thereof, provide for earlier or
greater principal, interest, or other payments thereon, or adversely affect the subordination thereof to Obligations owed to Bank.

 

7.10            
Compliance. Become an “investment company” or a company controlled by an “investment
company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending
credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System),
or use the proceeds of any Credit Extension for that purpose; (a) fail to meet the minimum funding requirements of ERISA, (b) permit
a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, or (c) fail to comply with the Federal Fair Labor
Standards Act or violate any other law or regulation, if the violation or failure of any of the conditions described in clauses
(a) through (c) could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its
Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination
of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation
plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit
Guaranty Corporation or its successors or any other governmental agency.

 

8.                  
EVENTS OF DEFAULT

 

Any one of the following
shall constitute an event of default (an “Event of Default”) under this Agreement:

 

8.1               
Payment Default. Borrower fails to (a) make any payment of principal or interest on any Credit Extension
when due, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which
three (3) Business Day cure period shall not apply to payments due on the Term Loan Advance Maturity Date). During the cure period,
the failure to make or pay any payment specified under clause (b) hereunder is not an Event of Default (but no Credit Extension
will be made during the cure period);

 

8.2               
Covenant Default. 

 

(a)                
Borrower fails or neglects to perform any obligation in Sections 6.2, 6.4, 6.5, 6.6, 6.7, 6.8, 6.9, or 6.11 or violates
any covenant in Section 7; or

 

(b)               
Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained
in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other
term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after
the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or
cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within
a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt
to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default
(but no Credit Extensions shall be made during such cure period). Cure periods provided under this section shall not apply, among
other things, to financial covenants or any other covenants set forth in clause (a) above;

 

8.3               
Material Adverse Change. A Material Adverse Change occurs;

 

    -14-

     

    

 

8.4               
Attachment; Levy; Restraint on Business.

 

(a)                
 (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under
the control of Borrower (including a Subsidiary), or (ii) a notice of lien or levy is filed against any of Borrower’s assets
by any Governmental Authority, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence
thereof, discharged or stayed (whether through the posting

of a bond or otherwise); provided, however,
no Credit Extensions shall be made during any ten (10) day cure period; or

 

(b)               
 (i) any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee
or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting all or any material part of
its business;

 

8.5               
Insolvency. (a) Borrower or any of its Subsidiaries is unable to pay its debts (including trade debts)
as they become due or otherwise becomes insolvent; (b) Borrower or any of its Subsidiaries begins an Insolvency Proceeding;
or (c) an Insolvency Proceeding is begun against Borrower or any of its Subsidiaries and is not dismissed or stayed within
thirty (30) days (but no Credit Extensions shall be made while any of the conditions described in clause (a) exist and/or until
any Insolvency Proceeding is dismissed);

 

8.6               
Other Agreements. There is, under any agreement to which Borrower or any Guarantor is a party with a third
party or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate
the maturity of any Indebtedness in an amount individually or in the aggregate in excess of Two Hundred Fifty Thousand Dollars
($250,000.00); or (b) any breach or default by Borrower or Guarantor, the result of which could have a material adverse effect
on Borrower’s or any Guarantor’s business;

 

8.7               
Judgments; Penalties. One or more fines, penalties or final judgments, orders or decrees for the payment
of money in an amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000.00) (not covered
by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against
Borrower by any Governmental Authority, and the same are not, within ten (10) days after the entry, assessment or issuance thereof,
discharged, satisfied, or paid, or after execution thereof, stayed or bonded pending appeal, or such judgments are not discharged
prior to the expiration of any such stay (provided that no Credit Extensions will be made prior to the satisfaction, payment, discharge,
stay, or bonding of such fine, penalty, judgment, order or decree);

 

8.8               
Misrepresentations. Borrower or any Person acting for Borrower makes any representation, warranty, or
other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter
this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect
when made;

 

8.9               
Subordinated Debt. Any document, instrument, or agreement evidencing any Subordinated Debt shall for any
reason be revoked or invalidated or otherwise cease to be in full force and effect, any Person shall be in breach thereof or contest
in any manner the validity or enforceability thereof or deny that it has any further liability or obligation thereunder, or the
Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement or any applicable
subordination or intercreditor agreement;

 

8.10            
Guaranty. (a) Any guaranty of any Obligations terminates or ceases for any reason to be in full force
and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations; (c) any circumstance
described in Sections 8.3, 8.4, 8.5, 8.6, 8.7, or 8.8 of this Agreement occurs with respect to any Guarantor; (d) the death,
liquidation, winding up, or termination of existence of any Guarantor; or (e) (i) a material impairment in the perfection
or priority of Bank’s Lien in the collateral provided by Guarantor or in the value of such collateral or (ii) a material
adverse change in the general affairs, management, results of operation, condition (financial or otherwise) or the prospect of
repayment of the Obligations occurs with respect to any Guarantor;

 

8.11             Governmental
Approvals. Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an adverse manner or
not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates
a hearing with respect to any applications for renewal of any of such Governmental Approval or that could result in the
Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation,
rescission, suspension, modification or non-renewal (i) causes, or could reasonably be expected to cause, a Material Adverse
Change, or (ii) adversely affects the legal qualifications of Borrower or any of its Subsidiaries to hold such Governmental
Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could
reasonably be expected to affect the status of or legal qualifications of Borrower or any of its Subsidiaries to hold any
Governmental Approval in any other jurisdiction; or

 

    -15-

     

    

 

8.12            
LIQ861 Action. One or more judgments, rulings, orders or decrees is rendered against Borrower by any court
or Governmental Authority which Bank determines in its good faith business judgment is reasonably likely to either (a) prohibit
Borrower from obtaining final approval from the FDA with respect to Borrower’s new drug application for its LIQ861 product
or (b) impair or delay Borrower’s ability to commercialize its LIQ861 product according to the most recent business plan
delivered to Bank on or prior to the Effective Date.

 

9.                  
BANK’S RIGHTS AND REMEDIES

 

9.1               
Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may,
without notice or demand, do any or all of the following:

 

(a)                
declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations
are immediately due and payable without any action by Bank);

 

(b)               
stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement
between Borrower and Bank;

 

(c)                
demand that Borrower (i) deposit cash with Bank in an amount equal to at least (A) one hundred five percent (105.0%) of
the Dollar Equivalent of the aggregate face amount of all Letters of Credit denominated in Dollars remaining undrawn, and (B) one
hundred ten percent (110.0%) of the Dollar Equivalent of the aggregate face amount of all Letters of Credit denominated in a Foreign
Currency remaining undrawn, (plus, in each case, all interest, fees, and costs due or to become due in connection therewith (as
estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as
collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit
and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term
of any Letters of Credit;

 

(d)            terminate any FX Contracts;

 

(e)            verify
the amount of, demand payment of and performance under, and collect any Accounts and General Intangibles, settle or adjust disputes
and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, and notify any Person
owing Borrower money of Bank’s security interest in such funds;

 

(f)             make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest
in the Collateral. Borrower shall assemble the Collateral if Bank requests and make it available as Bank designates. Bank may enter
premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest,
or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants
Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies;

 

(g)            apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) amount held by Bank owing to or for
the credit or the account of Borrower;

 

(h)            ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is hereby
granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Patents, Copyrights,
mask works, rights of use of any name, trade secrets, trade names, Trademarks, and advertising matter, or any similar property
as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection
with Bank’s exercise of its rights under this Section, Borrower’s rights under all licenses and all franchise agreements
inure to Bank’s benefit;

 

    -16-

     

    

 

 

(i)                
place a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement
order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral;

 

(j)                 demand
and receive possession of Borrower’s Books; and

 

(k)               
exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies
provided under the Code (including disposal of the Collateral pursuant to the terms thereof).

 

9.2               
Power of Attorney. Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable
upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other
forms of payment or security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against
Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on
terms Bank determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest
or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon,
or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third
party as the Code permits. Borrower hereby appoints Bank as its lawful attorney-in-fact to sign Borrower’s name on any documents
necessary to perfect or continue the perfection of Bank’s security interest in the Collateral regardless of whether an Event
of Default has occurred until all Obligations have been satisfied in full and Bank is under no further obligation to make Credit
Extensions hereunder. Bank’s foregoing appointment as Borrower’s attorney in fact, and all of Bank’s rights and
powers, coupled with an interest, are irrevocable until all Obligations (other than inchoate indemnity obligations) have been fully
repaid and performed and Bank’s obligation to provide Credit Extensions terminates.

 

9.3               
Protective Payments. If Borrower fails to obtain the insurance called for by Section 6.5 or fails to pay
any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan
Document or which may be required to preserve the Collateral, Bank may obtain such insurance or make such payment, and all amounts
so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest rate applicable to the
Obligations, and secured by the Collateral. Bank will make reasonable efforts to provide Borrower with notice of Bank obtaining
such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to
make similar payments in the future or Bank’s waiver of any Event of Default.

 

9.4               
Application of Payments and Proceeds Upon Default. If an Event of Default has occurred and is continuing,
Bank shall have the right to apply in any order any funds in its possession, whether from Borrower account balances, payments,
proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations.
Bank shall pay any surplus to Borrower by credit to the Designated Deposit Account or to other Persons legally entitled thereto;
Borrower shall remain liable to Bank for any deficiency. If Bank, directly or indirectly, enters into a deferred payment or other
credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either
reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the
actual receipt by Bank of cash therefor.

 

9.5               
Bank’s Liability for Collateral. So long as Bank complies with reasonable banking practices regarding
the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for:
(a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral;
or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction
of the Collateral.

 

9.6                No
Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to require strict performance by Borrower of any
provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to
demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by the
party granting the waiver and then is only effective for the specific instance and purpose for which it is given.
Bank’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Bank has all rights and
remedies provided under the Code, by law, or in equity. Bank’s exercise of one right or remedy is not an election and
shall not preclude Bank from exercising any other remedy under this Agreement or other remedy available at law or in equity,
and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is
not a waiver, election, or acquiescence.

 

    -17-

     

    

 

9.7              
Demand Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment,
notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments,
chattel paper, and guarantees held by Bank on which Borrower is liable.

 

9.8               
Borrower Liability. Any Borrower may, acting singly, request Credit Extensions hereunder. Each Borrower
hereby appoints each other as agent for the other for all purposes hereunder, including with respect to requesting Credit Extensions
hereunder. Each Borrower hereunder shall be jointly and severally obligated to repay all Credit Extensions made hereunder, regardless
of which Borrower actually receives said Credit Extension, as if each Borrower hereunder directly received all Credit Extensions.
Each Borrower waives (a) any suretyship defenses available to it under the Code or any other applicable law, and (b) any right
to require Bank to: (i) proceed against any Borrower or any other person; (ii) proceed against or exhaust any security; or (iii)
pursue any other remedy. Bank may exercise or not exercise any right or remedy it has against any Borrower or any security it holds
(including the right to foreclose by judicial or non-judicial sale) without affecting any Borrower’s liability. Notwithstanding
any other provision of this Agreement or other related document, each Borrower irrevocably waives all rights that it may have at
law or in equity (including, without limitation, any law subrogating Borrower to the rights of Bank under this Agreement) to seek
contribution, indemnification or any other form of reimbursement from any other Borrower, or any other Person now or hereafter
primarily or secondarily liable for any of the Obligations, for any payment made by Borrower with respect to the Obligations in
connection with this Agreement or otherwise and all rights that it might have to benefit from, or to participate in, any security
for the Obligations as a result of any payment made by Borrower with respect to the Obligations in connection with this Agreement
or otherwise. Any agreement providing for indemnification, reimbursement or any other arrangement prohibited under this Section
9.8 shall be null and void. If any payment is made to a Borrower in contravention of this Section 9.8, such Borrower shall hold
such payment in trust for Bank and such payment shall be promptly delivered to Bank for application to the Obligations, whether
matured or unmatured.

 

10.               
NOTICES

 

All notices, consents,
requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing
and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business
Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid;
(b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable
overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed
to the party to be notified and sent to the address, facsimile number, or email address indicated below. Bank or Borrower may change
its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with
the terms of this Section 10.

 

    -18-

     

    

 

	 	If to Borrower:	LIQUIDIA CORPORATION

                                                                         LIQUIDIA TECHNOLOGIES, INC.

                                                                         LIQUIDIA PAH,
LLC
 P.O. Box 110085

Research Triangle Park, NC 27709

Attn: Michael Kaseta, CFO

 

	 	with a copy to:	DLA Piper LLP (US)

51 John F. Kennedy Parkway, Suite 120

Short Hills, New Jersey 07078-2704

Attn:  Andrew P. Gilbert

 

	 	If to Bank:	Silicon Valley Bank

3475 Piedmont Road, Suite 560
	 	Atlanta, Georgia 30305

Attn:  Mr. Scott McCarty

 

	 	with a copy to:	Morrison & Foerster LLP

200 Clarendon Street, Floor 20

Boston, Massachusetts 02116

Attn:  David A. Ephraim, Esquire

 

11.               
CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

 

Except as otherwise
expressly provided in any of the Loan Documents, Massachusetts law governs the Loan Documents without regard to principles of conflicts
of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Boston, Massachusetts; provided,
however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action
in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other
court order in favor of Bank. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced
in any such court, and Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper
venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by
such court. Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit
and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to
Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and
that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3)
days after deposit in the U.S. mails, proper postage prepaid.

 

BORROWER AND BANK
EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS
OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT
FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

 

    -19-

     

    

 

This Section 11 shall
survive the termination of this Agreement.

 

12.              
GENERAL PROVISIONS

 

12.1           
Termination Prior to Term Loan Advance Maturity Date; Survival. All covenants, representations and warranties
made in this Agreement shall continue in full force until this Agreement has terminated pursuant to its terms and all Obligations
(other than inchoate indemnity obligations) have been satisfied. So long as Borrower has satisfied the Obligations (other than
inchoate indemnity obligations, and any other obligations which, by their terms, are to survive the termination of this Agreement,
and any Obligations under Bank Services Agreements that are cash collateralized in accordance with Section 4.1 of this Agreement),
this Agreement may be terminated prior to the Term Loan Advance Maturity Date by Borrower, effective three (3) Business Days after
written notice of termination is given to Bank. Those obligations that are expressly specified in this Agreement as surviving this
Agreement’s termination shall continue to survive notwithstanding this Agreement’s termination. Without limiting the
foregoing, except as otherwise provided in Section 4.1, the grant of a security interest by Borrower in Section 4.1 shall survive
until the termination of this Agreement and all Bank Services Agreements.

 

12.2           
Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns
of each party. Borrower may not assign this Agreement or any rights or obligations under it without Bank’s prior written
consent (which may be granted or withheld in Bank’s discretion). Bank has the right, without the consent of or notice to
Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Bank’s
obligations, rights, and benefits under this Agreement and the other Loan Documents (other than the Warrant, as to which assignment,
transfer and other such actions are governed by the terms thereof). Notwithstanding the foregoing, so long as no Event of Default
shall have occurred and is continuing, Bank shall not assign its interest in the Loan Documents to any Person who in the reasonable
estimation of Bank is (a) a direct competitor of Borrower, or (b) a vulture fund or distressed debt fund.

 

12.3           
Indemnification. Borrower agrees to indemnify, defend and hold Bank and its directors, officers, employees,
agents, attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”)
harmless against: (i) all obligations, demands, claims, and liabilities (collectively, “Claims”) claimed
or asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (ii) all losses or expenses
(including Bank Expenses) in any way suffered, incurred, or paid by such Indemnified Person as a result of, following from, consequential
to, or arising from transactions between Bank and Borrower contemplated by the Loan Documents (including reasonable attorneys’
fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross negligence or willful
misconduct.

 

This Section 12.3 shall
survive until all statutes of limitation with respect to the Claims, losses, and expenses for which indemnity is given shall have
run.

 

12.4           
Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement.

 

12.5           
Severability of Provisions. Each provision of this Agreement is severable from every other provision in
determining the enforceability of any provision.

 

12.6            Correction
of Loan Documents. Bank may correct patent errors and fill in any blanks in the Loan Documents consistent with the agreement
of the parties, so long as Bank provides Borrower with written notice of such correction and allows Borrower at least ten (10)
days to object to such correction. In the event of such objection, such correction shall not be made except by an amendment signed
by both Bank and Borrower.

 

12.7            Amendments
in Writing; Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver, discharge or
termination of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the extent,
expressly set forth in a writing signed by the party against which enforcement or admission is sought. Without limiting the
generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance or
course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan
Document. Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall not apply to
any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or
commitment to grant any further waiver. The Loan Documents represent the entire agreement about this subject matter and
supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and
negotiations between the parties about the subject matter of the Loan Documents merge into the Loan Documents.

 

    -20-

     

    

 

12.8            Counterparts. This Agreement may be executed in any number of counterparts and by different parties on
separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.

 

12.9            Confidentiality.
In handling any confidential information, Bank shall exercise the same degree of care that it exercises for its own proprietary
information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates (such Subsidiaries and
Affiliates, together with Bank, collectively, “Bank Entities”); (b) to prospective permitted transferees or
purchasers of any interest in the Credit Extensions (provided, however, Bank shall use its best efforts to obtain any prospective
permitted transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation,
subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection with Bank’s examination
or audit; (e) as Bank considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service
providers of Bank so long as such service providers have executed a confidentiality agreement with Bank with terms no less restrictive
than those contained herein. Confidential information does not include information that is either: (i) in the public domain
or in Bank’s possession when disclosed to Bank, or becomes part of the public domain (other than as a result of its disclosure
by Bank in violation of this Agreement) after disclosure to Bank; or (ii) disclosed to Bank by a third party, if Bank does
not know that the third party is prohibited from disclosing the information.

 

Bank Entities may use
anonymous forms of confidential information for aggregate datasets, for analyses or reporting, and for any other uses not expressly
prohibited in writing by Borrower.  The provisions of the immediately preceding sentence shall survive the termination of
this Agreement.

 

12.10           Right
of Set Off. Borrower hereby grants to Bank, a lien, security interest and right of set off as security for all Obligations
to Bank, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter
in the possession, custody, safekeeping or control of Bank or any entity under the control of Bank (including a Bank subsidiary)
or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand
or notice, Bank may set off the same or any part thereof and apply the same to any liability or Obligation of Borrower even though
unmatured and regardless of the adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE BANK
TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS
RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY
WAIVED.

 

12.11          
Electronic Execution of Documents. The words “execution,” “signed,” “signature”
and words of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use
of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including,
without limitation, any state law based on the Uniform Electronic Transactions Act.

 

12.12          
Captions. The headings used in this Agreement are for convenience only and shall not affect the interpretation
of this Agreement.

 

12.13          
Construction of Agreement. The parties mutually acknowledge that they and their attorneys have participated
in the preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard
to which of the parties caused the uncertainty to exist.

 

12.14          
Relationship. The relationship of the parties to this Agreement is determined solely by the provisions
of this Agreement. The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship
with duties or incidents different from those of parties to an arm’s-length contract.

 

    -21-

     

    

 

12.15        
 Third Parties. Nothing in this Agreement, whether express or implied, is intended to: (a) confer any
benefits, rights or remedies under or by reason of this Agreement on any persons other than the express parties to it and their
respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any person not an express
party to this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against
any party to this Agreement.

 

13.               
DEFINITIONS

 

13.1            
Definitions. As used in the Loan Documents, the word “shall” is mandatory, the word “may”
is permissive, the word “or” is not exclusive, the words “includes” and “including” are not
limiting, the singular includes the plural, and numbers denoting amounts that are set off in brackets are negative. As used in
this Agreement, the following capitalized terms have the following meanings:

 

“Account”
is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes,
without limitation, all accounts receivable and other sums owing to Borrower.

 

“Account Debtor”
is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.

 

“Affiliate”
is, with respect to any Person, each other Person that owns or controls directly or indirectly the Person, any Person that controls
or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors,
partners and, for any Person that is a limited liability company, that Person’s managers and members.

 

“Agreement”
is defined in the preamble hereof.

 

“Authorized
Signer” is any individual listed in Borrower’s Borrowing Resolution who is authorized to execute the Loan Documents,
including making (and executing if applicable) any Credit Extension request, on behalf of Borrower.

 

“Bank”
is defined in the preamble hereof.

 

“Bank Entities”
is defined in Section 12.9 of this Agreement.

 

“Bank Expenses”
are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) for preparing, amending,
negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection
with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower or any Guarantor.

 

“Bank Services” 
are any products, credit services, and/or financial accommodations previously, now, or hereafter provided to Borrower or any of
its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services
(including, without limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services),
interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s
various agreements related thereto (each, a “Bank Services Agreement”).

 

“Bank Services
Agreement” is defined in the definition of Bank Services.

 

“Borrower”
is defined in the preamble hereof.

 

“Borrower’s
Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding
Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or
storage or any equipment containing such information.

 

    -22-

     

    

 

“Borrowing
Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s board of directors (or
the limited liability company equivalent thereof) (and, if required under the terms of such Person’s Operating Documents,
stockholders) and delivered by such Person to Bank approving the Loan Documents to which such Person is a party and the transactions
contemplated thereby, together with a certificate executed by its secretary on behalf of such Person certifying (a) such Person
has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) that
set forth as a part of or attached as an exhibit to such certificate is a true, correct, and complete copy of the resolutions then
in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents
to which it is a party, (c) the name(s) of the Person(s) authorized to execute the Loan Documents, including making (and executing
if applicable) any Credit Extension request, on behalf of such Person, together with a sample of the true signature(s) of such
Person(s), and (d) that Bank may conclusively rely on such certificate unless and until such Person shall have delivered to
Bank a further certificate canceling or amending such prior certificate.

 

“Business
Day” is any day that is not a Saturday, Sunday or a day on which Bank is closed, and if any determination of a “Business
Day” shall relate to an FX Contract, the term “Business Day” shall mean a day on which dealings are carried on
in the country of settlement of the Foreign Currency.

 

“Cash Burn”
is, for any measurement period, Borrower’s (a) Net Income, plus (b) to the extent deducted in the calculation of Net Income,
(i) depreciation expenses, plus (ii) amortization expenses, plus (iii) non-cash stock compensation expenses, plus (iv) other non-cash
items approved by Bank in writing on a case-by-case basis in its sole discretion, minus (c) capital expenditures.

 

“Cash Equivalents”
means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State
thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more
than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s
Investors Service, Inc.; and (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue.

 

“Change in
Control” means (a) at any time, any “person” or “group” (as such terms are used in Sections 13(d)
and 14(d) of the Exchange Act), shall become, or obtain rights (whether by means of warrants, options or otherwise) to become,
the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of
forty-nine percent (49.0%) or more of the ordinary voting power for the election of directors of Borrower (determined on a fully
diluted basis) other than by the sale of Borrower’s equity securities in a public offering or to venture capital or private
equity investors so long as Borrower identifies to Bank the venture capital or private equity investors at least seven (7) Business
Days prior to the closing of the transaction and provides to Bank a description of the material terms of the transaction; or (b)
at any time, Borrower shall cease to own and control, of record and beneficially, directly or indirectly, one hundred percent (100.0%)
of each class of outstanding capital stock of each Subsidiary of Borrower free and clear of all Liens (except Liens created by
this Agreement).

 

“Claims”
is defined in Section 12.3 of this Agreement.

 

“Code”
is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the Commonwealth of Massachusetts;
provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined
differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall
govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection,
or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform Commercial Code in
effect in a jurisdiction other than the Commonwealth of Massachusetts, the term “Code” shall mean the Uniform
Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such
attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions.

 

“Collateral”
is any and all properties, rights and assets of Borrower described on Exhibit A.

 

“Collateral
Account” is any Deposit Account, Securities Account, or Commodity Account.

 

    -23-

     

    

 

“Commodity
Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter
be made.

 

“Compliance
Statement” is that certain statement in the form attached hereto as Exhibit B.

 

“Contingent
Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness,
lease, dividend, letter of credit or other obligation of another such as an obligation, in each case, directly or indirectly guaranteed,
endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable;
(b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate,
currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect
a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation”
does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined
amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated
liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any
guarantee or other support arrangement.

 

“Control Agreement”
is any control agreement entered into among the depository institution at which Borrower maintains a Deposit Account or the securities
intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank
pursuant to which Bank obtains control (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity
Account.

 

“Copyrights”
are any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship
and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.

 

“Credit Extension”
is any Term Loan Advance, FX Contract, or any other extension of credit by Bank for Borrower’s benefit.

 

“Default Rate”
is defined in Section 2.2(b) of this Agreement.

 

“Deposit Account”
is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made.

 

“Designated
Deposit Account” is account number ending 202 (last three digits), maintained by Borrower with Bank (provided, however,
if no such account number is included, then the Designated Deposit Account shall be any deposit account of Borrower maintained
with Bank as chosen by Bank).

 

“Division”
means, in reference to any Person which is an entity, the division of such Person into two (2) or more separate Persons, with the
dividing Person either continuing or terminating its existence as part of such division, including, without limitation, as contemplated
under Section 18-217 of the Delaware Limited Liability Company Act for limited liability companies formed under Delaware law, or
any analogous action taken pursuant to any other applicable law with respect to any corporation, limited liability company, partnership
or other entity.

 

“Dollars,”
 “dollars” or use of the sign “$” means only lawful money of the United States and not any
other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted
into lawful money of the United States.

 

“Dollar Equivalent”
is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated
in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing
rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign
Currency.

 

“Effective
Date” is defined in the preamble hereof.

 

    -24-

     

    

 

“Equipment”
is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes without
limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing.

 

“ERISA”
is the Employee Retirement Income Security Act of 1974, and its regulations.

 

“Event of
Default” is defined in Section 8 of this Agreement.

 

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

 

“FDA”
means the Food and Drug Administration.

 

“Final Payment”
is a payment (in addition to and not a substitution for the regular monthly payments of principal plus accrued interest) due on
the earliest to occur of (a) the Term Loan Advance Maturity Date, (b) the repayment of the Term Loan Advances in full, (c) as required
pursuant to Section 2.1.1(d) or 2.1.1(e), or (d) the termination of this Agreement, in an amount equal to five percent (5.0%) of
the aggregate original principal amount of all Term Loan Advances made by Bank.

 

“Financial
Statement Repository” is mase@svb.com or such other means of collecting information approved and designated by Bank after
providing notice thereof to Borrower from time to time.

 

“Foreign Currency”
means lawful money of a country other than the United States.

 

“Funding Date”
is any date on which a Credit Extension is made to or for the account of Borrower which shall be a Business Day.

 

“FX Contract”
is any foreign exchange contract by and between Borrower and Bank under which Borrower commits to purchase from or sell to Bank
a specific amount of Foreign Currency on a specified date.

 

“GAAP”
is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession,
which are applicable to the circumstances as of the date of determination.

 

“General Intangibles”
is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as
may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds, security
and other deposits, payment intangibles, contract rights, options to purchase or sell real or personal property, rights in all
litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation
key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind.

 

“Governmental
Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration,
filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

 

“Governmental
Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory organization.

 

“Guarantor”
is any present or future guarantor of the Obligations.

 

    -25-

     

    

 

“Indebtedness”
is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations
for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital
lease obligations, and (d) Contingent Obligations.

 

“Indemnified
Person” is defined in Section 12.3 of this Agreement.

 

“Insolvency
Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy
or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or
proceedings seeking reorganization, arrangement, or other relief.

 

“Intellectual
Property” means, with respect to any Person, all of such Person’s right, title, and interest in and to the following:

 

(a)                
its Copyrights, Trademarks and Patents;

 

(b)               
any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how
and operating manuals;

 

(c)                
any and all source code;

 

(d)               
any and all design rights which may be available to such Person;

 

(e)               
any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right,
but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified
above; and

 

(f)                
all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.

 

“Inventory”
is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter
be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work
in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody
or possession or in transit and including any returned goods and any documents of title representing any of the above.

 

“Investment”
is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance
or capital contribution to any Person.

 

“Key Person”
is each of Borrower’s Chief Executive Officer and Chief Financial Officer.

 

“Letter of
Credit” is a standby or commercial letter of credit issued by Bank upon request of Borrower based upon an application,
guarantee, indemnity, or similar agreement.

 

“Lien”
is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether voluntarily
incurred or arising by operation of law or otherwise against any property.

 

“Liquidia
PAH” is defined in the preamble hereof.

 

“Loan Documents”
are, collectively, this Agreement and any schedules, exhibits, certificates, notices, and any other documents related to this Agreement,
the Warrant, the Perfection Certificate, any Bank Services Agreement, any Control Agreement, any subordination agreement, any note,
or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement by Borrower and/or any
Guarantor with or for the benefit of Bank, all as amended, restated, or otherwise modified.

 

    -26-

     

    

 

“Material
Adverse Change” is (a) a material impairment in the perfection or priority of Bank’s Lien in the Collateral or
in the value of such Collateral; (b) a material adverse change in the business, operations, or financial condition of Borrower;
or (c) a material impairment of the prospect of repayment of any portion of the Obligations.

 

“Minimum Cash
Balance” means unrestricted and unencumbered cash of Borrower maintained in accounts of Borrower at (a) Bank, (b) Bank’s
Affiliates, so long as such accounts are subject to a Control Agreement in favor of Bank, and (c) prior to July 1, 2021, Pacific
Western Bank, in an aggregate amount equal to at least (i) during the period commencing on the Effective Date through and including
the date immediately prior to the Funding Date of the Term B Loan Advance, Thirty Million Dollars ($30,000,000.00) and (ii) during
the period commencing on the Funding Date of the Term B Loan Advance through and including the date immediately prior to the Funding
Date of the Term C Loan Advance, Thirty-Five Million Dollars ($35,000,000.00).

 

“Monthly Financial
Statements” is defined in Section 6.2(a) of this Agreement.

 

“Net Income”
means, for any period as at any date of determination, the net profit (or loss), after provision for taxes, of Borrower for such
period taken as a single accounting period.

 

“Obligations”
are Borrower’s obligations to pay when due any debts, principal, interest, fees, the Final Payment, the Prepayment Fee, Bank
Expenses, and other amounts Borrower owes Bank now or later, whether under this Agreement or the other Loan Documents (other than
the Warrant), including, without limitation, all obligations relating to Bank Services, and including interest accruing after Insolvency
Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and to perform Borrower’s duties under
the Loan Documents (other than the Warrant).

 

“Operating
Documents” are, for any Person, such Person’s formation documents, as certified by the Secretary of State (or equivalent
agency) of such Person’s jurisdiction of organization on a date that is no earlier than thirty (30) days prior to the Effective
Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability
company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership
agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto.

 

“Parent Borrower”
is defined in the preamble hereof.

 

“Patents”
means all patents, patent applications and like protections including without limitation improvements, divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same.

 

“Payment Date”
is the first (1st) calendar of each month.

 

“Payment/Advance
Form” is that certain form attached hereto as Exhibit C.

 

“Perfection
Certificate” is defined in Section 5.1 of this Agreement.

 

“Permitted
Acquisition” means a transaction whereby Borrower acquires, or permits any of its Subsidiaries to acquire, all or substantially
all of the capital stock or property of another Person, which satisfies each of the following conditions:

 

(a)                such
transaction shall only involve assets located in the United States and entities organized in a jurisdiction in the United States,
and the party or parties being acquired is in the same or a substantially similar line of business as Borrower;

 

(b)               
no Event of Default has occurred and is continuing or would exist after giving effect to the transaction and Bank has received
satisfactory evidence that Borrower is in compliance with all terms and conditions of this Agreement (and that it will be in compliance
after giving effect to the transaction);

 

(c)               
the acquisition is approved by the board of directors (or equivalent control group) of all parties to the transaction;

 

    -27-

     

    

 

(d)              the total aggregate consideration to be paid by Borrower and its Subsidiaries (including the value of Borrower’s
or its Subsidiaries’ stock issued by Borrower or its Subsidiaries and any other property used in satisfaction of the purchase
price) in connection therewith in all of the contemplated transactions during the term of this Agreement does not exceed One Million
Dollars ($1,000,000.00);

 

(e)               Borrower
provides Bank (i) written notice of the transaction at least thirty (30) days before the closing of the transaction, and (ii)
copies of the acquisition agreement and other material documents relative to the contemplated transaction and such other financial
information, financial analysis, documentation or other information relating to such transaction as Bank shall request at least
thirty (30) days before the closing of the transaction;

 

(f)                Borrower
is a surviving legal entity after completion of the contemplated transaction;

 

(g)               the
contemplated transaction is consensual and non-hostile;

 

(h)               no
Indebtedness will be incurred, assumed, or would exist with respect to Borrower or its Subsidiaries as a result of the contemplated
transaction, other than Permitted Indebtedness, and no Liens will be incurred, assumed, or would exist with respect to the assets
of Borrower or its Subsidiaries as a result of the contemplated transaction, other than Permitted Liens, and any Person whose
capital stock is acquired shall not have any Indebtedness following the contemplated transaction;

 

(i)                
the acquisition and the company being acquired is accretive in all respects;

 

(j)                
any Person whose capital stock is acquired or any Subsidiary that acquires assets in such contemplated transaction shall,
within thirty (30) days of the consummation of the transaction, become a co-borrower or guarantor (as determined by Bank in its
sole discretion) hereunder and shall grant a first priority Lien in all of its assets to Bank, all on documentation acceptable
to Bank in its sole discretion; and

 

(k)               
Borrower shall have delivered to Bank, at least five (5) Business Days prior to the date on which any such acquisition is
to be consummated (or such later date as is agreed by Bank in its sole discretion), a certificate of a Responsible Officer of Borrower,
in form and substance reasonably satisfactory to Bank, certifying that all of the requirements set forth in this definition have
been satisfied or will be satisfied on or prior to the consummation of such purchase or other acquisition.

 

“Permitted
Indebtedness” is:

 

(a)               
Borrower’s Indebtedness to Bank under this Agreement and the other Loan Documents;

 

(b)               
Indebtedness existing on the Effective Date which is shown on the Perfection Certificate;

 

(c)               
Subordinated Debt;

 

(d)               
unsecured Indebtedness to trade creditors incurred in the ordinary course of business;

 

(e)               
Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business;

 

(f)                
Indebtedness secured by Liens permitted under clauses (a) and (c) of the definition of “Permitted Liens” hereunder;

 

(g)               Indebtedness
consisting of performance bonds, bid bonds, surety bonds, appeal bonds and similar obligations, in each case provided in the ordinary
course of business not to exceed Two Hundred Thousand Dollars ($200,000.00) outstanding in the aggregate at any time;

 

    -28-

     

    

 

(h)               prior
to July 1, 2021, Indebtedness incurred in the ordinary course of business in respect of credit cards and letters of credit, provided
that the aggregate outstanding amount of such Indebtedness at any time does not exceed Five Hundred Thousand Dollars ($500,000.00),
provided further that such Indebtedness is only secured by the Liens permitted pursuant to clause (j) of the definition of Permitted
Liens;

 

(i)                Indebtedness
consisting of overdraft protections incurred in the ordinary course of business with respect to deposit accounts (but only to
the extent that Borrower is permitted to maintain such accounts pursuant to Section 6.6 of this Agreement);

 

(j)               
Indebtedness incurred in connection with insurance premium financing arrangements solely with respect to director’s
and officer’s insurance premiums in an aggregate amount at any time outstanding not to exceed the lesser of (i) the premiums
owed under such policies or (ii) Seven Hundred Fifty Thousand Dollars ($750,000.00), so long as such Indebtedness is secured solely
by the proceeds of the policy being financed;

 

(k)               other
unsecured Indebtedness (specifically excluding Indebtedness in connection with credit cards or letters of credit) not exceeding
One Hundred Thousand Dollars ($100,000.00) in the aggregate outstanding at any time; and

 

(l)                extensions,
refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (k) above, provided
that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon
Borrower or its Subsidiary, as the case may be.

 

“Permitted
Investments” are:

 

(a)               Investments
(including, without limitation, Subsidiaries) existing on the Effective Date which are shown on the Perfection Certificate (but
specifically excluding any future Investments in any Subsidiaries unless otherwise permitted hereunder);

 

(b)               Investments
consisting of Cash Equivalents;

 

(c)               Investments
consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of Borrower;

 

(d)               Investments
consisting of deposit accounts (but only to the extent that Borrower is permitted to maintain such accounts pursuant to Section
6.6 of this Agreement) in which Bank has a first priority perfected security interest;

 

(e)               Investments
accepted in connection with Transfers permitted by Section 7.1;

 

(f)                Investments
consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of
business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its
Subsidiaries pursuant to employee stock purchase plans or agreements approved by the Board;

 

(g)               Investments
(including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement
of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;

 

(h)               Investments
consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates,
in the ordinary course of business; provided that this paragraph (h) shall not apply to Investments of Borrower in any Subsidiary;
and

 

(i)                 Permitted
Acquisitions.

 

    -29-

     

    

 

“Permitted
Liens” are:

 

(a)                Liens
existing on the Effective Date which are shown on the Perfection Certificate or arising under this Agreement or the other Loan
Documents;

 

(b)               Liens
for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in
good faith and for which Borrower maintains adequate reserves on Borrower’s Books, provided that no notice of any
such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted
thereunder;

 

(c)                purchase
money Liens (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no
more than Three Million Five Hundred Thousand Dollars ($3,500,000.00) in the aggregate amount outstanding, or (ii) existing on
Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment;

 

(d)               Liens
of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business
so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed Two Hundred Fifty Thousand
Dollars ($250,000.00) and which are not delinquent or remain payable without penalty or which are being contested in good faith
and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject
thereto;

 

(e)                Liens
to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations
incurred in the ordinary course of business (other than Liens imposed by ERISA);

 

(f)                
Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c),
but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal
amount of the indebtedness may not increase;

 

(g)               
leases or subleases of real property granted in the ordinary course of Borrower’s business (or, if referring to another
Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of
personal property (other than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring
to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses
do not prohibit granting Bank a security interest therein;

 

(h)               
non-exclusive licenses of Intellectual Property granted to third parties in the ordinary course of business;

 

(i)                 Liens
arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections
8.4 and 8.7; and

 

(j)                 prior
to July 1, 2021, Liens on cash collateral maintained in the account of Borrower ending 090 maintained with Pacific Western Bank
securing the credit card obligations permitted pursuant to subsection (h) of Permitted Indebtedness, so long as the aggregate
amount of cash maintained in such account and the Indebtedness that such cash collateral secures does not exceed Five Hundred
Thousand Dollars ($500,000.00) at any time.

 

“Person”
is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.

 

“Prepayment
Fee” shall be an additional fee payable to Bank, for a prepayment of the Term Loan Advances, in an amount equal to:

 

(a)               for
a prepayment made on or prior to March 31, 2023, five percent (5.0%) of the outstanding principal balance of the Term Loan Advances
immediately prior to such prepayment; and

 

    -30-

     

    

 

(b)               for
a prepayment made after March 31, 2023, Zero Dollars ($0.00).

 

Notwithstanding the
foregoing, Bank agrees to waive the Prepayment Fee and no Prepayment Fee is due for a prepayment of the Term Loan Advances in connection
with the refinancing and re-documentation of the Term Loan Advances by Bank (the determination of whether to provide such refinancing
and re-documentation being in Bank’s sole and absolute discretion).

 

“Prime Rate”
is the rate of interest per annum from time to time published in the money rates section of The Wall Street Journal or any successor
publication thereto as the “prime rate” then in effect; provided that, in the event such rate of interest is less than
zero, such rate shall be deemed to be zero for purposes of this Agreement; and provided further that if such rate of interest,
as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined
by Bank, the “Prime Rate” shall mean the rate of interest per annum announced by Bank as its prime rate in effect at
its principal office in the State of California (such Bank announced Prime Rate not being intended to be the lowest rate of interest
charged by Bank in connection with extensions of credit to debtors); provided that, in the event such rate of interest is less
than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Registered
Organization” is any “registered organization” as defined in the Code with such additions to such term as
may hereafter be made.

 

“Requirement
of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common),
treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Responsible
Officer” is any of the Chief Executive Officer, President, Chief Financial Officer and Controller of Borrower.

 

“Restricted
License” is any material license or other agreement with respect to which Borrower is the licensee (a) that prohibits
or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or
any other property, or (b) for which a default under or termination of could interfere with Bank’s right to sell any
Collateral.

 

“SEC”
shall mean the Securities and Exchange Commission, any successor thereto, and any analogous Governmental Authority.

 

“Second Tranche
Availability Event” occurs if and when (if ever) Bank confirms in writing that Bank has received evidence, satisfactory
to Bank in Bank’s reasonable discretion, on or prior to June 30, 2022, that Borrower has received tentative approval from
the FDA with respect to the new drug application for Borrower’s LIQ861 product.

 

“Securities
Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter
be made.

 

“Subordinated
Debt” is indebtedness incurred by Borrower subordinated to all of Borrower’s now or hereafter indebtedness to Bank
(pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into
between Bank and the other creditor), on terms acceptable to Bank.

 

“Subsidiary”
is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership
interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of
the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership
or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or
more intermediaries, or both, by such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall
be a reference to a Subsidiary of Borrower or Guarantor.

 

    -31-

     

    

 

“Technologies”
is defined in the preamble hereof.

 

“Term A Loan
Advance” is defined in Section 2.1.1(a) of this Agreement.

 

“Term B Loan
Advance” is defined in Section 2.1.1(a) of this Agreement.

 

“Term C Loan
Advance” is defined in Section 2.1.1(a) of this Agreement.

 

“Term Loan
Advance” or “Term Loan Advances” is defined in Section 2.1.1(a) of this Agreement.

 

“Term Loan
Advance Maturity Date” is September 1, 2024.

 

“Tested Quarter”
is defined in Section 6.8.

 

“Third Tranche
Availability Event” occurs if and when (if ever) Bank confirms in writing that Bank has received evidence, satisfactory
to Bank in Bank’s reasonable discretion, on or prior to December 31, 2022, that Borrower has received final and unconditional
approval from the FDA with respect to the new drug application for Borrower’s LIQ861 product.

 

“Trademarks”
means any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and
like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks.

 

“Transfer”
is defined in Section 7.1 of this Agreement.

 

“Warrant”
is that certain Warrant to Purchase Stock dated as of the Effective Date between Parent Borrower and Bank, as amended, modified,
supplemented and/or restated from time to time.

 

[Signature page
follows.]

 

    -32-

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed as a sealed instrument under the laws of the Commonwealth of Massachusetts
as of the Effective Date.

 

	BORROWER:	 
	 	 
	LIQUIDIA CORPORATION	 
	 	 
	By	/s/ Michael Kaseta	 
	Name:	Michael Kaseta	 
	Title:	Chief Financial Officer	 
	 	 
	LIQUIDIA TECHNOLOGIES, INC.	 
	 	 
	By	/s/ Michael Kaseta	 
	Name:	Michael Kaseta	 
	Title:	Chief Financial Officer	 
	 	 
	LIQUIDIA PAH, LLC	 
	 	 
	By	/s/ Michael Kaseta	 
	Name:	Michael Kaseta	 
	Title:	Chief Financial Officer	 
	 	 
	BANK:	 
	 	 
	SILICON VALLEY BANK	 
	 	 
	By	/s/ Scott McCarty
	Name:	Scott McCarty
	Title:	Director

 

Signature Page to Loan and Security Agreement

 

     

     

    

 

EXHIBIT A – COLLATERAL DESCRIPTION

 

The Collateral consists
of all of Borrower’s right, title and interest in and to the following personal property:

 

All goods, Accounts
(including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements,
franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including
any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, certificates of deposit, fixtures,
letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment
property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and

 

all Borrower’s
Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions,
attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or
all of the foregoing.

 

Notwithstanding the foregoing,
the Collateral does not include (a) any Intellectual Property; provided, however, the Collateral shall include all Accounts and
all proceeds of Intellectual Property; (b) any interest of Borrower as a lessee or sublessee under a real property lease or an
Equipment lease if Borrower is prohibited by the terms of such lease from granting a security interest in such lease or under which
such an assignment or Lien would cause a default to occur under such lease (but only to the extent that such prohibition is enforceable
under all applicable laws including, without limitation, the Code); provided, however, that upon termination of such prohibition,
such interest shall immediately become Collateral without any action by Borrower or Bank; or (c) rights held under a license that
are not assignable by their terms without the consent of the licensor thereof (but only to the extent such restriction on assignment
is enforceable under applicable law); provided, however, that upon termination of such prohibition, such interest shall immediately
become Collateral without any action by Borrower or Bank. If a judicial authority (including a U.S. Bankruptcy Court) would hold
that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and
such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective
Date, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest in such
Accounts and such other property of Borrower that are proceeds of the Intellectual Property.

 

Pursuant to the terms
of a certain negative pledge arrangement with Bank, Borrower has agreed not to encumber any of its Intellectual Property without
Bank’s prior written consent.

 

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EXHIBIT B

 

COMPLIANCE STATEMENT

 

 

	TO:	  SILICON VALLEY BANK	Date:  	 
	FROM:	  LIQUIDIA CORPORATION, LIQUIDIA TECHNOLOGIES, INC.	 
	 	  and LIQUIDIA PAH, LLC	 

 

Under the terms and
conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), Borrower is in complete
compliance for the period ending _______________ with all required covenants except as noted below. Attached are the required documents
evidencing such compliance, setting forth calculations prepared in accordance with GAAP consistently applied from one period to
the next except as explained in an accompanying letter or footnotes. Capitalized terms used but not otherwise defined herein shall
have the meanings given them in the Agreement.

 

	Please indicate compliance status by circling Yes/No under “Complies” column.
	 
	Reporting Covenants	Required	Complies
	 	 	 
	Monthly Financial Statements	Monthly within 30 days	Yes   No
	Quarterly Compliance Statement	Quarterly within 30 days	Yes  No
	
        10-K and unqualified opinion from auditor

         
	FYE within 90 days	Yes   No   
	10-Q	Quarterly within 45 days	Yes   No
	8-K and other SEC filings	Within 5 days after filing with SEC	Yes   No
	Board Approved Projections	
        Within 60 days following FYE,

        and as amended/updated
	Yes   No

 

	Financial Covenant	Required	Actual	Complies
	 	 	 	 
	Maintain as indicated:	 	 	 
	Cumulative Cash Burn (tested quarterly)	$_______*	$______	Yes   No

 

* As set forth in Section 6.8 of
the Agreement. Not tested for any Tested Quarter (a) with respect to which Borrower maintained the Minimum Cash Balance at all
times during the period commencing on the first day of such Tested Quarter through and including the date that is 30 days after
the last day of such Tested Quarter; provided, however that the cumulative Cash Burn financial covenant shall be tested for such
Tested Quarter if Borrower does not maintain the Minimum Cash Balance during the period commencing on the date that is 31 days
after the last day of such Tested Quarter through and including the last day of the calendar quarter immediately following such
Tested Quarter, or (b) ending on or after the Funding Date of the Term C Loan Advance.

 

Other Matters

 

	Have there been any amendments of or other changes to the Operating Documents of Borrower or any of its Subsidiaries?  If yes, provide copies of any such amendments or changes with this Compliance Statement.	Yes	No

 

The following financial
covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Compliance
Statement.

 

The following are the
exceptions with respect to the statements above: (If no exceptions exist, state “No exceptions to note.”)

 

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Schedule 1 to Compliance Statement

 

Financial Covenant of Borrower

 

In the event of a conflict between this
Schedule and the Agreement, the terms of the Agreement shall govern.

 

	Dated:	____________________

 

I.       Cumulative
Cash Burn (Section 6.8) (tested quarterly on a cumulative basis from January 1, 2021)

 

Required: __________ (see chart below)

 

	Period Ending	 	Cumulative Cash Burn*	 
	March 31, 2021	 	$	(10,500,000.00	)
	June 30, 2021	 	$	(17,000,000.00	)
	September 30, 2021	 	$	(23,000,000.00	)
	December 31, 2021	 	$	(28,500,000.00	)
	March 31, 2022	 	$	(33,500,000.00	)
	June 30, 2022, and for the period ending on the last day of each calendar quarter thereafter	 	$	(38,000,000.00	)

 

Actual:

 

	A.	Net Income	$___________
	B.	To the extent included in the determination of Net Income	
         

         

	 	1.	Depreciation	
        $__________

         

	 	2.	Amortization	
        $__________

         

	 	
        3.
	Non-cash stock compensation expenses

         
	$__________
	 	
        4.
	Non-cash
items approved by Bank in writing on a case-by-case basis in its sole discretion
	$__________
	 	 	 
	 	5.	The sum of lines 1 through 4	
        $__________

         

	C.	Capital expenditures	$__________
	 	 	 
	D.	Cash Burn (line A plus line B.5 minus line C)	$__________

 

Is line D equal to or greater than the
amount set forth above?

 

 

__________  No,
not in compliance_________ Yes, in compliance __________N/A **

 

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* The amounts set forth in the above table
shall be increased by an amount equal to seventy-five percent (75.0%) of the net cash proceeds received by Borrower from the sale
of Borrower’s equity securities on or after the Effective Date but on or prior to the last day of such Tested Quarter.

 

** Not tested for any Tested Quarter (a) with
respect to which Borrower maintained the Minimum Cash Balance at all times during the period commencing on the first day of such
Tested Quarter through and including the date that is 30 days after the last day of such Tested Quarter; provided, however that
the cumulative Cash Burn financial covenant shall be tested for such Tested Quarter if Borrower does not maintain the Minimum Cash
Balance during the period commencing on the date that is 31 days after the last day of such Tested Quarter through and including
the last day of the calendar quarter immediately following such Tested Quarter, or (b) ending on or after the Funding Date of the
Term C Loan Advance.

 

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EXHIBIT C – LOAN PAYMENT/ADVANCE
REQUEST FORM

 

Deadline
for same day processing is Noon Eastern Time

 

	Fax To:	Date: _____________________

 

LIQUIDIA CORPORATION, LIQUIDIA TECHNOLOGIES,
INC. and LIQUIDIA PAH, LLC

 

Loan
Payment:

From Account #________________________________     To
Account #__________________________________________________

(Deposit Account #)                                                                       (Loan
Account #)

Principal $____________________________________and/or
Interest $________________________________________________

	Authorized Signature:	 	 	Phone Number:	

	Print Name/Title: 	 	 

 

 

Loan
Advance:

Complete Outgoing Wire Request section
below if all or a portion of the funds from this loan advance are for an outgoing wire.

From Account #________________________________To
Account #__________________________________________________

(Loan Account #)                                                                                 (Deposit
Account #)

 

Amount of Term Loan Advance $___________________________

 

All Borrower’s representations and
warranties in the Loan and Security Agreement are true, correct and complete in all material respects on the date of the request
for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties
that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and
warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date:

 

	Authorized Signature:	 	 	Phone Number:	 	 

 

	Print Name/Title: 	 	 

 

 

Outgoing
Wire Request:

Complete only if all or a portion of
funds from the loan advance above is to be wired.

Deadline for same day processing is noon,
Eastern Time

 

	Beneficiary Name: _____________________________	 	Amount of Wire: $	 	 
	Beneficiary Bank: ______________________________	 	Account Number:	 	 

	City and State:	 	 

	Beneficiary Bank Transit (ABA) #:	 	 	Beneficiary Bank Code (Swift, Sort, Chip, etc.):	 
	 	 	 	     (For International
    Wire Only)	 

	Intermediary Bank:	 	Transit (ABA) #:	 	 

	For Further Credit to:	 	 

	Special Instruction:	 	 

 

By signing below, I (we) acknowledge
and agree that my (our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set
forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me
(us).

 

Authorized Signature: ___________________________           2nd
Signature (if required): _______________________________________

Print Name/Title: ______________________________             Print
Name/Title: ______________________________________________

	Telephone #:	 		Telephone #	 

 

    1Exhibit
10.1

 

SUBSCRIPTION
AGREEMENT

 

This
SUBSCRIPTION AGREEMENT (this “Subscription Agreement”), dated March 2, 2021, is entered into by and between
Capitol Investment Corp. V, a Delaware corporation (the “Company”), and the Subscriber listed on the signature
page hereto (the “Subscriber”). Capitalized terms used but not defined herein shall have the meanings ascribed
to them in the Merger Agreement (as defined below).

 

RECITALS

 

WHEREAS,
as set forth in that certain Agreement and Plan of Merger, dated as of the date hereof (as the same may amended, modified or supplemented
from time to time, the “Merger Agreement”), by and among the Company, States Title Holding, Inc., a Delaware
corporation (“Target”), and Capitol V Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary
of the Company (“Merger Sub”), the parties thereto have agreed, among other things, and in accordance with
the terms and subject to the conditions set forth in the Merger Agreement, that simultaneously with the Closing, among other things,
Merger Sub will merge with and into Target, the separate corporate existence of Merger Sub will cease and Target will be the surviving
corporation and a wholly owned subsidiary of the Company (the “Merger”);

 

WHEREAS,
concurrently with the Closing, subject to the terms of this Subscription Agreement, (i) the Subscriber desires to subscribe for
and purchase from the Company a certain number of shares of common stock, par value $0.0001 per share, of the Company (the “Common
Stock”) for a purchase price of $10.00 per share (the “Per Share Price”), as set forth in this Subscription
Agreement, and (ii) the Company desires to issue and sell to the Subscriber such shares of Common Stock in consideration of the
payment of the Purchase Price (as defined below) by the Subscriber to the Company on or prior to the Closing; and

 

WHEREAS,
certain other Persons (the “Other Subscribers”) have, severally and not jointly, entered into separate Subscription
Agreements with the Company (the “Other Subscription Agreements”), pursuant to which such Persons have agreed
to purchase Common Stock at the Closing (as defined below) at the Per Share Price, and the aggregate amount of securities to be
sold by the Company pursuant to this Subscription Agreement and the Other Subscription Agreements equals, as of the date hereof,
30,000,000 shares of Common Stock.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual representations, warranties and covenants 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, the Subscriber hereby agrees to subscribe
                                         for and purchase, and the Company hereby agrees to issue and sell to the Subscriber,
                                         the number of shares of Common Stock set forth on the signature page hereto (the “Shares”)
                                         in exchange for the payment of the aggregate purchase price set forth on the signature
                                         page hereto, which shall be the number of Shares multiplied by $10.00 (the “Purchase
                                         Price”).

 

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		2.	CLOSING.

 

		(a)	The
                                         closing of the sale of Shares contemplated hereby (the “Subscription Closing”)
                                         shall occur on the date of the Closing contemplated by the Merger Agreement, and be conditioned
                                         upon the prior or substantially concurrent consummation of the Merger and the satisfaction
                                         or waiver of the conditions set forth in this Section 2. At least five (5) Business Days
                                         before the anticipated Closing Date, the Company shall deliver written notice to the
                                         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 prior to the anticipated Closing Date, the Subscriber
                                         shall deliver to the Company (A) the Purchase Price via wire transfer of United States
                                         dollars in immediately available funds to the account specified by the Company in the
                                         Closing Notice, such funds to be held by the Company in escrow until the Closing, and
                                         (B) such information as is reasonably requested in the Closing Notice in order for the
                                         Company to cause the Shares to be issued and delivered to Subscriber. On the Closing
                                         Date, the Company shall deliver to the Subscriber the Shares in book entry form, free
                                         and clear of any liens or other restrictions (other than those arising under this Subscription
                                         Agreement or applicable securities Laws), in the name of the Subscriber (or its nominee
                                         in accordance with its delivery instructions) or to a custodian designated by the Subscriber,
                                         as applicable, and evidence of the issuance of the Shares from the Company’s transfer
                                         agent on and as of the Closing Date. Notwithstanding the foregoing two sentences, for
                                         any Subscriber that informs the Company (i) that it is an investment company registered
                                         under the Investment Company Act of 1940, as amended, (ii) that it is advised by an investment
                                         advisor subject to regulation under the Investment Advisors Act of 1940, as amended,
                                         or (iii) that its internal compliance policies and procedures so require it, then, in
                                         lieu of the settlement procedures in the foregoing sentence, the following shall apply:
                                         such Subscriber shall deliver at 8:00 a.m. New York City time on the Closing Date (or
                                         as soon as practicable following the Subscriber’s receipt of evidence of issuance
                                         of the Shares), the Purchase Price in immediately available funds to the account specified
                                         by the Company in the Closing Notice (which account shall not be an escrow account).
                                         If the date of the closing of the Merger does not occur within two (2) Business Days
                                         after the anticipated Closing Date specified in the Closing Notice, unless otherwise
                                         agreed to in writing by the Company and the Subscriber, the Company shall promptly (but
                                         not later than three (3) Business Days after the anticipated Closing Date specified in
                                         the Closing Notice) return the funds so delivered by the Subscriber to the Company by
                                         wire transfer in immediately available funds to the account specified by the Subscriber;
                                         provided that, unless this Subscription Agreement has been terminated pursuant to Section
                                         8 hereof, such return of funds shall not terminate this Subscription Agreement or
                                         relieve the Subscriber of its obligation to purchase the Shares at the Closing following
                                         the Company’s delivery to Subscriber of a new Closing Notice.

 

		(b)	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.

 

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		(c)	Closing
                                         Conditions. In addition to the conditions set forth in Section 2(a):

 

		(i)	General
                                         Conditions. The Closing is also subject to the satisfaction or waiver in writing by each
                                         party of the conditions that, on the Closing Date:

 

		(1)	no
                                         applicable governmental authority shall have enacted, rendered, 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 governmental authority shall
                                         have instituted or threatened in writing a proceeding seeking to impose any such restraint
                                         or prohibition; and

 

		(2)	all
                                         conditions precedent to the Closing set forth in the Merger Agreement shall have been
                                         satisfied or waived by the applicable party pursuant to the Transaction Agreement (other
                                         than those conditions which, by their nature, are to be satisfied at the Closing pursuant
                                         to the Merger Agreement).

 

		(ii)	Company
                                         Conditions. The obligations of the Company to consummate the Closing are also subject
                                         to the satisfaction or waiver in writing by the Company of the additional conditions
                                         that, on the Closing Date:

 

		(1)	all
                                         representations and warranties of the 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, which representations and warranties shall be true
                                         in all respects) at and as of the Closing Date (except for representations and warranties
                                         made as of a specific date, which shall be true and correct in all material respects
                                         (other than representations and warranties that are qualified as to materiality, which
                                         representations and warranties shall be true in all respects) as of such date), and consummation
                                         of the Closing, shall constitute a reaffirmation by the Subscriber of each of the representations,
                                         warranties and agreements of the Subscriber contained in this Subscription Agreement
                                         as of the Closing Date, or such specific date, as applicable; and

 

		(2)	the
                                         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 Closing.

 

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		(iii)	Subscriber
                                         Conditions. The obligations of the Subscriber to consummate the Closing are also subject
                                         to the satisfaction or waiver in writing by the Subscriber of the additional conditions
                                         that, on the Closing Date:

 

		(1)	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 herein),
                                         which representations and warranties shall be true in all respects) at and as of the
                                         Closing Date (except for representations and warranties made as of a specific date, which
                                         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, which representations
                                         and warranties shall be true in all respects) as of such date), and consummation of the
                                         Closing, shall constitute a reaffirmation by the Company of each of the representations,
                                         warranties and agreements of the Company contained in this Subscription Agreement as
                                         of the Closing Date;

 

		(2)	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 Closing; and

 

		(3)	no
                                         amendment of the Merger Agreement (as the same exists on the date hereof as provided
                                         to the Subscriber) shall have occurred that would reasonably be expected to materially
                                         and adversely affect the economic benefits that the Subscriber would reasonably expect
                                         to receive under this Subscription Agreement.

 

		3.	FURTHER
                                         ASSURANCES. At the Closing, the parties hereto shall execute and deliver such
                                         additional documents and take such additional actions as the parties reasonably may deem
                                         to be practical and necessary in order to consummate the subscription as contemplated
                                         by this Subscription Agreement.

 

		4.	COMPANY
                                         REPRESENTATIONS AND WARRANTIES. The Company represents and warrants to the Subscriber
                                         as of the date of this Subscription Agreement and as of the Closing Date that:

 

		(a)	The
                                         Company is a corporation duly organized, validly existing and in good standing under
                                         the laws of the State of Delaware, with the corporate power and authority to own, lease
                                         and operate its properties and conduct its business as presently proposed to be conducted
                                         and to enter into, deliver and perform its obligations under this Subscription Agreement.

 

		(b)	As
                                         of the Closing, the Shares will be duly authorized and, when issued and delivered to
                                         the Subscriber against full payment therefor in accordance with the terms of this Subscription
                                         Agreement, the Shares will be validly issued, fully paid and non-assessable and will
                                         not have been issued in violation of or subject to any preemptive or similar rights created
                                         under the Company’s organizational documents or under applicable Law. Assuming
                                         the accuracy of the representations and warranties of the Subscriber contained in Section 5,
                                         the issuance and sale of the Shares pursuant to this Subscription Agreement is exempt
                                         from registration requirements of the Securities Act, and neither the Company nor, to
                                         the knowledge of the Company, any authorized Representative acting on its behalf has
                                         taken or will take any action hereafter that would cause the loss of such exemption.

 

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		(c)	This
                                         Subscription Agreement has been duly authorized, executed and delivered by the Company
                                         and, assuming that this Subscription Agreement constitutes a valid and binding agreement
                                         of the Subscriber, is a valid and binding obligation of the Company, enforceable in accordance
                                         with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance,
                                         reorganization, moratorium and similar Laws affecting creditors’ rights generally
                                         and subject, as to enforceability, to general principles of equity whether considered
                                         at law or equity.

 

		(d)	The
                                         execution, delivery and performance of this Subscription Agreement, including the issuance
                                         and sale of the Shares, and the compliance by the Company with all of the provisions
                                         of this Subscription Agreement and the consummation of the transactions herein will be
                                         done in accordance with NYSE rules and will not (i) 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 or any of its subsidiaries pursuant to the terms of
                                         any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement
                                         or instrument to which the Company or any of its subsidiaries is a party or by which
                                         the Company or any of its subsidiaries is bound or to which any of the property or assets
                                         of the Company is subject, which would have a material adverse effect on the business,
                                         properties, prospects, assets, liabilities, operations, condition (including financial
                                         condition), stockholders’ equity or results of operations of the Company or materially
                                         affect the validity of the Shares or the legal authority or ability of the Company to
                                         timely perform in all material respects its obligations under the terms of this Subscription
                                         Agreement (a “Company Material Adverse Effect”); (ii) result in any
                                         violation of the provisions of the organizational documents of the Company; or (iii)
                                         result in any violation of 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 would have a Company Material Adverse Effect.

 

		(e)	As
                                         of their respective filing dates, all reports required to be filed by the Company with
                                         the U.S. Securities and Exchange Commission (the “SEC”) prior to the
                                         date hereof (the “SEC Reports”) complied in all material respects
                                         with the applicable requirements of the Exchange Act, and the rules and regulations of
                                         the SEC promulgated thereunder. None of the SEC Reports included, when filed or, if amended,
                                         as of the date of such amendment with respect to those disclosures that are amended,
                                         any untrue statement of a material fact or omitted to state a material fact necessary
                                         to make the statements therein, in the light of the circumstances under which they were
                                         made, not misleading. There are no material outstanding or unresolved comments in comment
                                         letters received by the Company from the staff of the Division of Corporation Finance
                                         of the SEC with respect to any of the SEC Reports.

 

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		(f)	As
                                         of the date of this Subscription Agreement, except for the shares of Acquiror Class B
                                         Common Stock, 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 the Shares or the issuance of shares of Common Stock pursuant to the Other
                                         Subscription Agreements. As of the Closing Date, there will be 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 the Shares.

 

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

 

		(h)	No
                                         consent, waiver, authorization, approval, filing with or notification to any court or
                                         other federal, state, local or other governmental authority is required on the part of
                                         the Company with respect to the execution, delivery or performance by the Company of
                                         this Subscription Agreement (including without limitation the issuance of the Shares),
                                         other than (i) the filings required by applicable state or federal securities Laws, (ii)
                                         the filings required by the NYSE, or (iii) those consents, waivers, authorizations, approvals,
                                         filings or notifications the failure of which to give, make or obtain would not be reasonably
                                         expected to have, individually or in the aggregate, a Company Material Adverse Effect.

 

		(i)	Neither
                                         the Company nor any person acting on its behalf has offered or sold the Shares by any
                                         form of general solicitation or general advertising in violation of the Securities Act.

 

		(j)	The
                                         Company has not entered into any agreement or arrangement entitling any agent, broker,
                                         investment banker, financial advisor or other person to any broker’s or finder’s
                                         fee or any other commission or similar fee in connection with the transactions contemplated
                                         by this Subscription Agreement other than the Placement Agents.

 

		(k)	As
                                         of the date of this Subscription Agreement, the authorized capital stock of the Company
                                         is (i) 1,000,000 shares of preferred stock, par value $0.0001 per share, of which no
                                         shares are issued and outstanding and (ii) 450,000,000 shares of Common Stock divided
                                         into (A) 400,000,000 shares of Acquiror Class A Common Stock, of which 34,500,000 shares
                                         are issued and outstanding, and (B) 50,000,000 shares of Acquiror Class B Common Stock,
                                         of which 8,625,000 shares are issued and outstanding. As of the date of the Merger Agreement:
                                         (i) 11,500,000 warrants, each exercisable to purchase one share of Acquiror Class A Common
                                         Stock at $11.50 per share, and 5,833,333 private placement warrants, each exercisable
                                         to purchase one share of Acquiror Class A Common Stock at $11.50 per share (together
                                         “Warrants”), were issued and outstanding; and (ii) no Common Stock
                                         was subject to issuance upon exercise of outstanding options. All (A) issued and outstanding
                                         shares of Common Stock have been duly authorized and validly issued, are fully paid and
                                         non-assessable and are not subject to preemptive rights and (B) outstanding Warrants
                                         have been duly authorized and validly issued, are fully paid and are not subject to preemptive
                                         rights. Except (x) as set forth above, (y) pursuant to the Other Subscription Agreements
                                         and the Merger Agreement or (z) pursuant to any promissory note issued by the Company
                                         in order to fund the ongoing fees and expenses of the Company, there are no outstanding
                                         options, warrants or other rights to subscribe for, purchase or acquire from the Company
                                         any Common Stock, Class B common stock, or other equity interests in the Company, or
                                         securities convertible into or exchangeable or exercisable for such equity interests.
                                         As of the date hereof, the Company has no subsidiaries (other than Merger Sub) and does
                                         not own, directly or indirectly, interests or investments (whether equity or debt) in
                                         any person, whether incorporated or unincorporated.

 

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		(l)	The
                                         outstanding shares of Acquiror Class A Common Stock are registered pursuant to Section
                                         12(b) of the Exchange Act, and are listed on the NYSE under the symbol “CAP”.
                                         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 SEC with respect to any
                                         intention by such entity to deregister the shares of Acquiror Class A Common Stock or
                                         prohibit or terminate the listing of the shares of Class A Common Stock on the NYSE.
                                         The Company has taken no action that is designed to terminate the registration of the
                                         shares of Class A Common Stock under the Exchange Act. As of the Closing Date, the Shares
                                         have been approved for listing on the NYSE, and the Company is in compliance with all
                                         of the listing rules and standards of the NYSE.

 

		(m)	The
                                         Company acknowledges that there have been no representations or warranties made to the
                                         Company by the Subscriber, or its officers or directors or other representatives, expressly
                                         or by implication, other than those representations or warranties explicitly included
                                         in this Subscription Agreement.

 

		(n)	The
                                         Company is not, and immediately after receipt of payment for the Shares, will not be,
                                         an “investment company” within the meaning of the Investment Company Act
                                         of 1940, as amended.

 

		(o)	The
                                         Company is in compliance with all applicable laws, except where such noncompliance would
                                         not reasonably be expected to have a Company Material Adverse Effect. As of the date
                                         hereof, the Company has not received any written communication from a governmental authority
                                         that alleges that the Company is not in compliance with or is in default or violation
                                         of any applicable law, except where such non-compliance, default or violation would not
                                         reasonably be expected to have, individually or in the aggregate, a Company Material
                                         Adverse Effect.

 

		(p)	Except
                                         for such matters as have not had and would not be reasonably be expected to have, individually
                                         or in the aggregate, a Company Material Adverse Effect, there is no (i) action, suit,
                                         claim or other proceeding, in each case by or before any governmental authority pending,
                                         or, to the knowledge of the Company, threatened against the Company or (ii) judgment,
                                         decree, injunction, ruling or order of any governmental entity outstanding against the
                                         Company.

 

    7

     

    

 

		(q)	Other
                                         than the Other Subscription Agreements, the Company has not entered into any side letter
                                         or similar agreement with any Other Subscriber in connection with such Other Subscriber’s
                                         investment in the Company. The Other Subscription Agreements reflect the same Per Share
                                         Price and other terms with respect to the purchase of the Common Stock that are no more
                                         favorable to such Other Subscriber thereunder than the terms of this Subscription Agreement
                                         and they shall not be amended after the date hereof to provide for terms with respect
                                         to the purchase of the Common Stock that are more favorable to such Other Subscriber
                                         thereunder than the terms of this Subscription Agreement, unless such terms are also
                                         offered to the Subscriber.

 

		(r)	Notwithstanding
                                         anything herein to the contrary, the Company acknowledges and agrees that the Shares
                                         may be pledged by the Subscriber in connection with a bona fide margin agreement, provided
                                         that such pledge shall be (i) pursuant to an available exemption from the registration
                                         requirements of the Securities Act or (ii) pursuant to, and in accordance with, a registration
                                         statement that is effective under the Securities Act at the time of such pledge, and
                                         the Subscriber effecting a pledge of Shares shall not be required to provide the Company
                                         with any notice thereof; provided, however, that neither the Company nor its counsel
                                         shall be required to take any action (or refrain from taking any action) in connection
                                         with any such pledge, other than providing any such lender of such margin agreement with
                                         an acknowledgment that the Shares are not subject to any contractual lock up or prohibition
                                         on pledging, the form of such acknowledgment to be subject to review and comment by the
                                         Company in all respects.

 

		5.	SUBSCRIBER
                                         REPRESENTATIONS AND WARRANTIES. The Subscriber represents and warrants to the Company
                                         as of the date of this Subscription Agreement and as of the Closing Date that:

 

		(a)	The
                                         Subscriber is (i) an Institutional Account (as defined in FINRA Rule 4512(c)) and (ii)
                                         (x) an institutional “accredited investor” (within the meaning of Rule 501(a)
                                         under the Securities Act) or (y) a “qualified institutional buyer” (as defined
                                         in Rule 144A under the Securities Act), as set forth on Schedule A completed by
                                         the Subscriber, and is acquiring the Shares only for its own account and not for the
                                         account of others, and not on behalf of any other account or person or with a view to,
                                         or for offer or sale in connection with, any distribution thereof in violation of the
                                         Securities Act. The Subscriber agrees to notify the Company prior to the Closing in the
                                         event any of the information regarding the Subscriber and provided on Schedule A
                                         changes prior to the Closing.

 

		(b)	The
                                         Subscriber understands that the Shares are being offered in a transaction not involving
                                         any public offering within the meaning of the Securities Act and that the Shares have
                                         not been registered under the Securities Act. The Subscriber understands that the Shares
                                         may not be resold, transferred, pledged or otherwise disposed of by the Subscriber absent
                                         an effective registration statement under the Securities Act except (i) to the Company
                                         or a subsidiary thereof, (ii) to non-U.S. persons pursuant to offers and sales qualifying
                                         as “offshore transactions” within the meaning of Regulation S under
                                         the Securities Act or (iii) pursuant to another applicable exemption from the registration
                                         requirements of the Securities Act, and in each of cases (ii) and (iii), in accordance
                                         with any applicable securities Laws of the states and other jurisdictions of the United
                                         States, and that any certificates or book entry account representing the Shares shall
                                         contain a legend to such effect. The Subscriber acknowledges that the Shares will not
                                         be eligible for resale pursuant to Rule 144 promulgated under the Securities Act until
                                         at least one year following the filing of certain required information with the SEC after
                                         the Closing Date and that the provisions of Rule 144(i) will apply to the Shares. The
                                         Subscriber understands and agrees that the Shares will be subject to the transfer restrictions
                                         set forth in Section 10 and, as a result of these transfer restrictions,
                                         the Subscriber may not be able to readily resell the Shares and may be required to bear
                                         the financial risk of an investment in the Shares for an indefinite period of time. The
                                         Subscriber understands that it has been advised to consult legal counsel prior to making
                                         any offer, resale, pledge or transfer of any of the Shares.

 

    8

     

    

 

		(c)	The
                                         Subscriber understands and agrees that the Subscriber is purchasing the Shares directly
                                         from the Company. The Subscriber further acknowledges that there have been no representations,
                                         warranties, covenants or agreements made to the Subscriber by the Company, or its officers
                                         or directors or other representatives, expressly or by implication, other than those
                                         representations, warranties, covenants and agreements explicitly included in this Subscription
                                         Agreement.

 

		(d)	The
                                         Subscriber’s acquisition and holding of the Shares will not constitute or result
                                         in a non-exempt prohibited transaction under Section 406 of the Employee Retirement
                                         Income Security Act of 1974, as amended, Section 4975 of the Internal Revenue Code
                                         of 1986, as amended, or any applicable similar Law.

 

		(e)	The
                                         Subscriber acknowledges and agrees that the Subscriber has received such information
                                         as the Subscriber deems necessary in order to make an investment decision with respect
                                         to the Shares. Without limiting the generality of the foregoing, the Subscriber acknowledges
                                         that it has reviewed (i) the Company’s filings with the SEC and (ii) the summary
                                         of risks provided in the electronic data room established for the transactions contemplated
                                         hereby. The Subscriber represents and agrees that the Subscriber and the Subscriber’s
                                         professional advisor(s), if any, have had the opportunity to ask such questions, receive
                                         such answers and obtain such information from the Company concerning the Company and
                                         an investment in the Shares as the Subscriber and such Subscriber’s professional
                                         advisor(s), if any, have deemed necessary to make an investment decision with respect
                                         to the Shares.

 

		(f)	The
                                         Subscriber became aware of this offering of the Shares solely by means of direct contact
                                         between Subscriber, on the one hand, and (x) the Company, (y) CitiGroup Global Markets
                                         Inc. (“Citi”), J.P. Morgan Securities LLC, JMP Securities LLC, Oppenheimer
                                         & Co. Inc. and D.A. Davidson & Co. (the “Placement Agents”)
                                         and/or (z) their respective Representatives, on the other hand. The Shares were offered
                                         to Subscriber solely by direct contact between Subscriber and the Company, the Placement
                                         Agents and/or their respective Representatives. The Subscriber acknowledges that it is
                                         not relying upon, and has not relied upon, any statement, representation or warranty
                                         made by any person or entity (including, without limitation, the Company, the Placement
                                         Agents or their respective Representatives), other than the representations and warranties
                                         by the Company contained in this Subscription Agreement, in making its investment or
                                         decision to invest in the Company. Subscriber did not become aware of this offering of
                                         the Shares, nor were the Shares offered to Subscriber, by any other means, and none of
                                         the Company, the Placement Agents, or their respective Representatives acted as an investment
                                         adviser, broker or dealer to Subscriber. Subscriber acknowledges that the 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. The Subscriber has
                                         a substantive pre-existing relationship with the Company, one of the Placement Agents
                                         or their respective Affiliates.

 

    9

     

    

 

		(g)	The
                                         Subscriber acknowledges that it is aware that there are substantial risks incident to
                                         the purchase and ownership of the Shares, including those set forth in the Company’s
                                         filings with the SEC. The 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 Shares, and the Subscriber has sought such accounting, legal and tax advice as
                                         the Subscriber has considered necessary to make an informed investment decision.

 

		(h)	The
                                         Subscriber acknowledges that the Subscriber (and not the Company) shall be responsible
                                         for any of the Subscriber’s tax liabilities that may arise as a result of the transactions
                                         contemplated by this Subscription Agreement. The Subscriber acknowledges that neither
                                         the Company nor any representative of the Company has provided, or will provide, the
                                         Subscriber with tax advice regarding the Shares, the Company or the execution of this
                                         Subscription Agreement, and the Company has advised the Subscriber to consult the Subscriber’s
                                         own tax advisor with respect to the tax consequences of each of the foregoing, including
                                         but not limited to any applicable elections, withholdings or other matters relating to
                                         the Shares, the Company or the execution of this Subscription Agreement.

 

		(i)	Alone,
                                         or together with any professional advisor(s), the Subscriber has adequately analyzed
                                         and fully considered the risks of an investment in the Shares and determined that the
                                         Shares are a suitable investment for the Subscriber and that the Subscriber is able at
                                         this time and in the foreseeable future to bear the economic risk of a total loss of
                                         the Subscriber’s investment in the Company. The Subscriber acknowledges specifically
                                         that a possibility of total loss exists.

 

		(j)	In
                                         making its decision to purchase the Shares, the Subscriber has relied solely upon independent
                                         investigation made by the Subscriber. Without limiting the generality of the foregoing,
                                         the Subscriber has not relied on any statements or other information provided by the
                                         Company, Target or any of their respective Representatives concerning the Company or
                                         the Shares or the offer and sale of the Shares, other than those representations, warranties,
                                         covenants and agreements included in this Subscription Agreement.

 

    10

     

    

 

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

 

		(l)	The
                                         Subscriber has been duly formed or incorporated and is validly existing in good standing
                                         under the laws of its jurisdiction of incorporation or formation.

 

		(m)	The
                                         execution, delivery and performance by the Subscriber of this Subscription Agreement
                                         are within the powers of the Subscriber, have been duly authorized and will not constitute
                                         or result in a breach or default under or conflict with any order, ruling or regulation
                                         of any court or other tribunal or of any governmental commission or agency, or any agreement
                                         or other undertaking, to which the Subscriber is a party or by which the Subscriber is
                                         bound, and will not violate any provisions of the Subscriber’s organizational documents.
                                         The signature on this Subscription Agreement is genuine, the signatory has been duly
                                         authorized to execute the same, and assuming this Subscription Agreement constitutes
                                         a valid and binding agreement of the Company, this Subscription Agreement constitutes
                                         a legal, valid and binding obligation of the Subscriber, enforceable against the Subscriber
                                         in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent
                                         conveyance, reorganization, moratorium and similar Laws affecting creditors’ rights
                                         generally and subject, as to enforceability, to general principles of equity.

 

		(n)	Neither
                                         the due diligence investigation conducted by the Subscriber in connection with making
                                         its decision to acquire the Shares nor any representations and warranties made by the
                                         Subscriber herein shall modify, amend or affect the Subscriber’s right to rely
                                         on the truth, accuracy and completeness of the Company’s representations and warranties
                                         contained herein.

 

		(o)	The
                                         Subscriber is not, and has not at any time during the past five (5) years been, (i) a
                                         person or entity named on, or otherwise owned or controlled by or acting on behalf of,
                                         a person or entity named on, the Specially Designated Nationals and Blocked Persons List
                                         administered by the U.S. Department of the Treasury’s Office of Foreign Assets
                                         Control (“OFAC”) or on any similar list of sanctioned persons maintained
                                         by the U.S. Government, the European Union or any European Union Member State, including
                                         the United Kingdom, or a person or entity with whom transactions are restricted or prohibited
                                         by any OFAC sanctions program or any sanctions program of the European Union or any European
                                         Union Member State, including the United Kingdom or (ii) a non-U.S. shell bank or
                                         providing banking services directly or indirectly to a non-U.S. shell bank. The
                                         Subscriber agrees to provide law enforcement agencies, if requested thereby, such records
                                         as required by applicable Law, provided that the Subscriber is permitted to do
                                         so under applicable Law. If the Subscriber is a financial institution subject to the
                                         Bank Secrecy Act (31 U.S.C. Section 5311 et seq.) (the “BSA”),
                                         as amended by the USA PATRIOT Act of 2001 (the “PATRIOT Act”), and
                                         its implementing regulations (collectively, the “BSA/PATRIOT Act”),
                                         to the extent required, the Subscriber maintains policies and procedures reasonably designed
                                         to comply with applicable obligations under the BSA/PATRIOT Act. To the extent required,
                                         Subscriber maintains policies and procedures reasonably designed to ensure compliance
                                         with sanctions and export control laws in each of the jurisdictions in which the Subscriber
                                         operates. Subscriber maintains policies and procedures reasonably designed to ensure
                                         that the funds held by the Subscriber and used to purchase the Shares were legally derived.

 

    11

     

    

 

		(p)	The
                                         Subscriber will have sufficient funds to pay the Purchase Price pursuant to Section 2
                                         hereto at the Closing. The Subscriber understands and agrees that its obligations
                                         hereunder are not in any way contingent or otherwise subject to: (i) the consummation
                                         of any financing arrangements or obtaining any financing; or (ii) the availability of
                                         any financing to the Subscriber.

 

		(q)	No
                                         foreign person (as defined in 31 C.F.R. Part 800.224) in which the national or subnational
                                         governments of a single foreign state have a substantial interest (as defined in 31 C.F.R.
                                         Part 800.244) will acquire a substantial interest in the Company as a result of the purchase
                                         and sale of Shares hereunder such that a declaration to the Committee on Foreign Investment
                                         in the United States would be mandatory under 31 C.F.R. Part 800.401, and no foreign
                                         person will have control (as defined in 31 C.F.R. Part 800.208) over the Company from
                                         and after the Closing as a result of the purchase and sale of Shares hereunder.

 

		(r)	Subscriber
                                         is not currently (and at all times through Closing will refrain from being or becoming)
                                         a member of a “group” (within the meaning of Section 13(d)(3) or Section
                                         14(d)(2) of the Exchange Act) acting for the purpose of acquiring, holding, voting or
                                         disposing of equity securities of the Company (within the meaning of Rule 13d-5(b)(1)
                                         under the Exchange Act).

 

		(s)	Subscriber
                                         has not entered into any agreement or arrangement entitling any agent, broker, investment
                                         banker, financial advisor or other person to any broker’s or finder’s fee
                                         or any other commission or similar fee in connection with the transactions contemplated
                                         by this Subscription Agreement for which the Company could become liable.

 

		(t)	No
                                         disclosure or offering document has been prepared by the Placement Agents in connection
                                         with the offer and sale of the Shares. Each Placement Agent and each of its directors,
                                         officers, employees, representatives and controlling persons have made no independent
                                         investigation with respect to the Company, the Target or the Shares or the accuracy,
                                         completeness or adequacy of any information supplied to the Subscriber or by the Company
                                         or the Target. In connection with the issuance and purchase of the Shares, the Placement
                                         Agents have not acted in any capacity on the Subscriber’s behalf, including without
                                         limitation as the Subscriber’s financial advisor or fiduciary. Subscriber acknowledges
                                         that the Placement Agents shall have no liability or obligation to the Subscriber in
                                         respect of this Subscription Agreement or the transactions contemplated hereby.

 

		(u)	The
                                         Subscriber (for itself and for each account for which it is acquiring the Shares) acknowledges
                                         that it is aware that Citi is acting as one of the Company’s placement agents and
                                         Citi is acting as financial advisor to Target in connection with the Merger.

 

		(v)	Subscriber
                                         hereby waives any conflict of interest or similar claim against Citi arising out of Citi
                                         acting as one of the Company’s placement agents and Citi acting as financial advisor
                                         to the Target or any other activities, relationships or arrangements entered into as
                                         contemplated herein, and agrees that it will not assert any such conflict of interest
                                         or similar claim.

 

		6.	SURVIVAL.
                                         All of the representations and warranties contained in this Subscription Agreement shall
                                         survive the Closing. All of the covenants and agreements made by each party hereto in
                                         this Subscription Agreement shall survive the Closing.

 

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		7.	REGISTRATION
                                         RIGHTS.

 

		(a)	In
                                         the event that the Shares are not registered in connection with the consummation of the
                                         Closing, the Company agrees that the Company will use commercially reasonable efforts
                                         to submit or file with the SEC (at the Company’s sole cost and expense) a registration
                                         statement (including the prospectus included in such registration statement, amendments
                                         (including post-effective amendments) and supplements to such registration statement,
                                         and all exhibits to and all material incorporated by reference in such registration statement,
                                         the “Registration Statement”) registering the resale of the Shares,
                                         within thirty (30) calendar days after the Closing Date (the “Filing Deadline”),
                                         and the Company shall use its commercially reasonable efforts to have the Registration
                                         Statement declared effective as soon as practicable after the filing thereof, but no
                                         later than the earlier of (i) the 60th calendar day (or 90th calendar
                                         day if the SEC notifies the Company that it will “review” the Registration
                                         Statement) following the Closing Date and (ii)
                                         the 10th Business Day after the date the Company is notified (orally or in writing, whichever
                                         is earlier) by the SEC that the Registration Statement will not be “reviewed”
                                         or will not be subject to further review (such earlier date, the “Effectiveness
                                         Date”); provided, however, that the Company’s obligations to include the
                                         Shares in the Registration Statement are contingent upon the Subscriber furnishing in
                                         writing to the Company such information regarding the Subscriber, the securities of the
                                         Company held by the Subscriber and the intended method of disposition of the Shares as
                                         shall be reasonably requested by the Company to effect the registration of the Shares,
                                         and shall execute such documents in connection with such registration as the Company
                                         may reasonably request that are customary of 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 as permitted hereunder. Notwithstanding the foregoing,
                                         if the SEC 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 Shares pursuant to this Section 7 by the
                                         applicable stockholders or otherwise, such Registration Statement shall register for
                                         resale such number of Shares which is equal to the maximum number of Shares as is permitted
                                         to be registered by the SEC. In such event, the number of Shares to be registered for
                                         each selling stockholder named in the Registration Statement shall be reduced pro rata
                                         among all such selling stockholders. In the event the Company is required to amend the
                                         Registration Statement in accordance with the foregoing, the Company will use its commercially
                                         reasonable efforts to file with the SEC, as promptly as allowed by the SEC, one or more
                                         registration statements to register the resale of those Shares that were not registered
                                         on the initial Registration Statement, as so amended. In no event shall the Subscriber
                                         be identified as a statutory underwriter in the Registration Statement unless requested
                                         by the SEC; provided, that if the SEC requests that the Subscriber be identified as a
                                         statutory underwriter in the Registration Statement, the Subscriber will have an opportunity
                                         to withdraw its Shares from the Registration Statement. For purposes of clarification,
                                         any failure by the Company to file the Registration Statement by the Filing Deadline
                                         or to effect such Registration Statement by the Effectiveness Date shall not otherwise
                                         relieve the Company of its obligations to file or effect the Registration Statement set
                                         forth in this Section 7.

 

		(b)	In
                                         the case of the registration effected by the Company pursuant to this Subscription Agreement,
                                         the Company shall, upon reasonable request, inform the Subscriber as to the status of
                                         such registration. At its expense, the Company shall:

 

		(i)	use
                                         its commercially reasonable efforts to maintain the continuous effectiveness of the Registration
                                         Statement, until the earliest of (i) the date on which the Shares may be resold without
                                         volume or manner of sale limitations and without the requirement for the Company to be
                                         in compliance with the current public information required pursuant to Rule 144 promulgated
                                         under the Securities Act, (ii) the date on which such Shares have actually been sold
                                         and (iii) the date which is two (2) years after the Closing;

 

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		(ii)	advise
                                         the Subscriber, as expeditiously as possible (and not later than within three (3) Business
                                         Days):

 

		(1)	when
                                         a Registration Statement or any amendment thereto has been filed with the SEC;

 

		(2)	after
                                         it shall receive notice or obtain knowledge thereof, of the issuance by the SEC of any
                                         stop order suspending the effectiveness of any Registration Statement or the initiation
                                         of any proceedings for such purpose;

 

		(3)	of
                                         the receipt by the Company of any notification with respect to the suspension of the
                                         qualification of the Shares included therein for sale in any jurisdiction or the initiation
                                         or threatening of any proceeding for such purpose; and

 

		(4)	subject
                                         to the provisions in this Subscription Agreement, of the occurrence of any 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 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 the Subscriber of such events, provide the
Subscriber with any material, nonpublic information regarding the Company other than to the extent that providing notice to the
Subscriber of the occurrence of the events listed in (1) through (4) above constitutes material, nonpublic information regarding
the Company;

 

		(iii)	its
                                         commercially reasonable efforts to obtain the withdrawal of any order suspending the
                                         effectiveness of any Registration Statement as soon as reasonably practicable;

 

		(iv)	upon
                                         the occurrence of any event contemplated in Section 7(b)(ii)(4) above, except for such
                                         times as the Company is permitted hereunder to suspend, and has suspended, the use of
                                         a prospectus forming part of a Registration Statement, 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 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
                                         light of the circumstances under which they were made, not misleading;

 

		(v)	use
                                         its commercially reasonable efforts to cause all Shares to be listed on each securities
                                         exchange or market, if any, on which the shares of Common Stock issued by the Company
                                         have been listed;

 

		(vi)	use
                                         its commercially reasonable efforts to allow the Subscriber to review disclosure regarding
                                         the Subscriber in the Registration Statement; and

 

		(vii)	otherwise,
                                         in good faith, cooperate reasonably with, and take such customary actions as may reasonably
                                         be requested by the Subscriber, consistent with the terms of this Subscription Agreement,
                                         in connection with the registration of the Shares.

 

    14

     

    

 

		(c)	Notwithstanding
                                         anything to the contrary in this Subscription Agreement, the Company shall be entitled
                                         to delay or postpone the effectiveness of the Registration Statement, and from time to
                                         time to require the Subscriber not to sell under the Registration Statement or to suspend
                                         the effectiveness thereof, (i) during any customary blackout period, (ii) if any information
                                         (e.g., compensation data) is not readily available and the non-disclosure of which in
                                         the Registration Statement would be expected, in the reasonable determination of the
                                         Company’s CEO, CFO or General Counsel, upon the advice of legal counsel, to cause
                                         the Registration Statement to fail to comply with applicable disclosure requirements,
                                         (iii) at any time the Company is required to file a post-effective amendment to the Registration
                                         Statement and the SEC has not declared such amendment effective or (iv) if the negotiation
                                         or consummation of a transaction by the Company or its subsidiaries is pending or an
                                         event has occurred, which negotiation, consummation or event, the Company’s CEO,
                                         CFO or General Counsel reasonably believes, upon the advice of legal counsel, would require
                                         additional disclosure by the Company in the Registration Statement of material information
                                         that the Company has a bona fide business purpose for keeping confidential and the non-disclosure
                                         of which in the Registration Statement would be expected, in the reasonable determination
                                         of the Company’s CEO, CFO or General Counsel, upon the advice of legal counsel,
                                         to cause the Registration Statement to fail to comply with applicable disclosure requirements
                                         (each such circumstance, a “Suspension Event”); provided, however,
                                         that the Company may not delay or suspend the Registration Statement on more than two
                                         (2) occasions or for more than ninety (90) consecutive calendar days, or more than one
                                         hundred and twenty (120) total calendar days, in each case, during any twelve (12) month
                                         period. Upon receipt of any written notice from the Company of the happening of any Suspension
                                         Event (which notice shall not contain material non-public information) 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 Subscriber agrees that (A) it will
                                         immediately discontinue offers and sales of the Shares under the Registration Statement
                                         (excluding, for the avoidance of doubt, sales conducted pursuant to Rule 144 of the Securities
                                         Act but subject, for the avoidance of doubt, to compliance with Subscriber’s obligations
                                         under applicable securities laws) until the Subscriber 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 (B) it will maintain the confidentiality of any information
                                         included in such written notice delivered by the Company unless otherwise required by
                                         Law. If so directed by the Company, the Subscriber will deliver to the Company or, in
                                         the Subscriber’s sole discretion destroy, all copies of the prospectus covering
                                         the Shares in the Subscriber’s possession; provided, however, that
                                         this obligation to deliver or destroy all copies of the prospectus covering the Shares
                                         shall not apply (x) to the extent the Subscriber is required to retain a copy of such
                                         to comply with applicable legal, regulatory, self-regulatory or professional requirements
                                         prospectus or 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.

 

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		(d)	The
                                         Company shall indemnify and hold harmless the Subscriber (to the extent a seller under
                                         the Registration Statement), its officers, directors, advisors and agents, and each person
                                         who controls the 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,
                                         without limitation, 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, 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 the Subscriber furnished in
                                         writing to the Company by the Subscriber expressly for use therein or the Subscriber
                                         has omitted a material fact from such information or otherwise violated the Securities
                                         Act, Exchange Act or any state securities law or any rule or regulation thereunder.

 

		(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
                                         the Subscriber furnished in writing to the Company by the Subscriber expressly for use
                                         therein. In no event shall the liability of the Subscriber be greater in amount than
                                         the dollar amount of the net proceeds received by the Subscriber upon the sale of the
                                         Shares giving rise to such indemnification obligation. The Subscriber shall notify the
                                         Company promptly of the institution, threat or assertion of any Action arising from or
                                         in connection with the transactions contemplated by this Section 7 of which the
                                         Subscriber is aware.

 

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		(f)	Any
                                         person or entity entitled to indemnification herein shall (i) give prompt written notice
                                         to the indemnifying party of any claim with respect to which it seeks indemnification
                                         (provided that the failure to give prompt notice shall not impair any person’s
                                         or entity’s right to indemnification hereunder to the extent such failure has not
                                         prejudiced the indemnifying party) and (ii) unless in such indemnified party’s
                                         reasonable judgment a conflict of interest between such indemnified and indemnifying
                                         parties may exist with respect to such claim, permit such indemnifying party to assume
                                         the defense of such claim with counsel reasonably satisfactory to the indemnified party.
                                         If such defense is assumed, the indemnifying party shall not be subject to any liability
                                         for any settlement made by the indemnified party without its consent (but such consent
                                         shall not be unreasonably withheld, conditioned or delayed). An indemnifying party who
                                         is not entitled to, or elects not to, assume the defense of a claim shall not be obligated
                                         to pay the fees and expenses of more than one counsel for all parties indemnified by
                                         such indemnifying party with respect to such claim, unless in the reasonable judgment
                                         of any indemnified party a conflict of interest may exist between such indemnified party
                                         and any other of such indemnified parties with respect to such claim. No indemnifying
                                         party shall, without the consent of the indemnified party, consent to the entry of any
                                         judgment or enter into any settlement which cannot be settled in all respects by the
                                         payment of money (and such money is so paid by the indemnifying party pursuant to the
                                         terms of such settlement), which settlement shall not include a statement or admission
                                         of fault and culpability on the part of such indemnified party, and which settlement
                                         shall include as an unconditional term thereof the giving by the claimant or plaintiff
                                         to such indemnified party of a release from all liability in respect to such claim or
                                         litigation.

 

		(g)	The
                                         indemnification provided for under this Subscription Agreement shall remain in full force
                                         and effect regardless of any investigation made by or on behalf of the indemnified party
                                         or any officer, director or controlling person or entity of such indemnified party and
                                         shall survive the transfer of securities.

 

		(h)	If
                                         the indemnification provided under this Section 7 from the indemnifying party is unavailable
                                         or insufficient to hold harmless an indemnified party in respect of any Losses, 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 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; provided,
                                         however, that the liability of the Subscriber shall be limited to the net proceeds received
                                         by such Subscriber from the sale of Shares giving rise to such indemnification obligation.
                                         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 not made by, in the case of an omission), or relates
                                         to information supplied by (or not supplied by, in the case of an omission), 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 shall be
                                         deemed to include, subject to the limitations set forth in this Section 7, 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 7(g) from any person or entity who was not guilty of such fraudulent
                                         misrepresentation.

 

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		(i)	For
                                         purposes of this Section 7 of this Subscription Agreement, (i) “Shares”
                                         shall mean, as of any date of determination, the Shares (as defined in the recitals to
                                         this Subscription Agreement) and any other equity security issued or issuable with respect
                                         to the Shares by way of share split, dividend, distribution, recapitalization, merger,
                                         exchange, or replacement, and (ii) “Subscriber” shall include any affiliate
                                         of the Subscriber to which the rights under this Section 7 shall have been duly assigned.

 

		8.	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 each of the parties hereto and in the case of
                                         the Company, with consent of the Target to terminate this Subscription Agreement or (c)
                                         the End Date (as defined in the Merger Agreement as of the date hereof without giving
                                         effect to any amendment, modification or waiver thereto from and after the date hereof).
                                         The Company shall notify Subscriber of the termination of the Merger Agreement promptly
                                         after the termination thereof. Upon the termination hereof in accordance with this Section
                                         8, the Purchase Price paid by Subscriber to the Company (if any) in connection herewith
                                         shall promptly (and in any event within three (3) Business Days) be returned in full
                                         to Subscriber by wire transfer of U.S. dollars in immediately available funds to the
                                         account specified by Subscriber, without any deduction for or on account of any tax withholding,
                                         charges or set-off.

 

		9.	TRUST
                                         WAIVER. Reference is made to the final prospectus of the Company, filed with
                                         the SEC (File No. 333-249856) (the “Prospectus”) and dated as
                                         of December 1, 2020 (the “Effective Date”). The Subscriber warrants
                                         and represents that it has read the Prospectus and understands that the Company has established
                                         a trust account containing the proceeds of its initial public offering (the “IPO”)
                                         and from certain private placements occurring simultaneously with the IPO (collectively,
                                         with interest accrued from time to time thereon, the “Trust Fund”)
                                         for the benefit of the Company’s public stockholders (the “Public Stockholders”)
                                         and certain parties (including the underwriters of the IPO) and that the Company may
                                         disburse monies from the Trust Fund only: (a) to the Public Stockholders in the event
                                         they elect to redeem shares of Acquiror Class A Common Stock in connection with the Closing,
                                         (b) to the Public Stockholders if the Company fails to consummate the transactions contemplated
                                         by the Merger Agreement or another business combination within twenty-four (24) months
                                         from the closing of the IPO, (c) any interest earned on the amounts held in the Trust
                                         Fund necessary to pay any taxes or (d) to the Company after or concurrently with the
                                         Closing or the consummation of another business combination. The Subscriber hereby 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 monies in the Trust Fund or distributions therefrom,
                                         or make any claim against, the Trust Fund, to the extent such claim arises as a result
                                         of, in connection with or relating in any way to any proposed or actual business relationship
                                         between the Company and the Subscriber, this Subscription Agreement or any other matter,
                                         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 “Claims”). The Subscriber hereby irrevocably waives any Claims
                                         it may have against the Trust Fund (including any distributions therefrom) now or in
                                         the future as a result of, or arising out of, any negotiations, contracts or agreements
                                         with respect to this Subscription Agreement and will not seek recourse against the Trust
                                         Fund (including any distributions therefrom) for any reason whatsoever (including, without
                                         limitation, for an alleged breach of this Subscription Agreement) with respect thereto.
                                         The Subscriber agrees and acknowledges that such irrevocable waiver is material to this
                                         Subscription Agreement and specifically relied upon by the Company to induce it to enter
                                         into this Subscription Agreement, and the Subscriber further intends and understands
                                         such waiver to be valid, binding and enforceable under applicable law. To the extent
                                         the Subscriber commences any action or proceeding based upon, in connection with, relating
                                         to or arising out of any matter relating to the Company, which proceeding seeks, in whole
                                         or in part, monetary relief against the Company, the Subscriber hereby acknowledges and
                                         agrees its sole remedy shall be against funds held outside of the Trust Fund and that
                                         such claim shall not permit the Subscriber (or any party claiming on the Subscriber’s
                                         behalf or in lieu of the Subscriber) to have any claim against the Trust Fund (including
                                         any distributions therefrom) or any amounts contained therein. In the event the Subscriber
                                         commences any action or proceeding based upon, in connection with, relating to or arising
                                         out of any matter relating to the Company, which proceeding seeks, in whole or in part,
                                         relief against the Trust Fund (including any distributions therefrom) or the Public Stockholders,
                                         whether in the form of money damages or injunctive relief, the Company shall be entitled
                                         to recover from the Subscriber the associated legal fees and costs in connection with
                                         any such action, in the event the Company prevails in such action or proceeding. Notwithstanding
                                         anything to the contrary contained herein, the provisions of this Section 9 shall
                                         not affect the rights of the Subscriber, if applicable, in its capacity as a Public Stockholder
                                         to receive distributions from the Trust Fund paid to Public Stockholders in accordance
                                         with the Company’s organizational documents and the Prospectus.

 

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		10.	SECURITIES
                                         LAW MATTERS.

 

		(a)	It
                                         is understood that, except as provided below, book entry accounts evidencing the Shares
                                         must bear the following legends:

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF
THE ISSUER THAT THESE SECURITIES MAY BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED ONLY (I) TO THE ISSUER OR A SUBSIDIARY THEREOF,
(II) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (III) OUTSIDE THE UNITED STATES PURSUANT TO REGULATION
S UNDER THE SECURITIES ACT OR (IV) IN A TRANSACTION THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, AND
IN EACH CASE IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS AND THE APPLICABLE LAWS OF ANY OTHER JURISDICTION.

 

		(b)	The
                                         Company shall use commercially reasonable efforts, if requested by the Subscriber, to
                                         (i) cause the removal of any restrictive legend set forth on the Shares and (ii) issue
                                         Shares without any such legend in certificated or book-entry form or by electronic delivery
                                         through The Depository Trust Company, at the Subscriber’s option, within five (5)
                                         Business Days of such deposit, provided that in each case (A) such Shares are registered
                                         for resale under the Securities Act pursuant to an effective Registration Statement and
                                         the Subscriber has sold or proposes to sell such Shares pursuant to such registration,
                                         (B) the Subscriber has sold or transferred, or proposes to sell or transfer, Shares pursuant
                                         to Rule 144 and (C) the Company, its counsel and its transfer agent have received customary
                                         representations and other documentation from the Subscriber that is reasonably necessary
                                         to establish that restrictive legends are no longer required as reasonably requested
                                         by the Company, its counsel or its transfer agent. With respect to clause (A), while
                                         the Registration Statement is effective, the Company shall cause its counsel to issue
                                         to the transfer agent a legal opinion to allow the legend on the Shares to be removed
                                         upon resale of the Shares pursuant to the effective Registration Statement in accordance
                                         with this Section 10, and within two (2) trading days of any request therefor from the
                                         Subscriber accompanied by such customary and reasonably acceptable representations and
                                         other documentation establishing that restrictive legends are no longer required, deliver
                                         to the transfer agent instructions that the transfer agent shall make a new, unlegended
                                         entry for such book entry Shares.

 

		(c)	As
                                         long as the Subscriber shall own any of the Shares, and such Shares are “restricted
                                         securities” (as defined in Rule 144 of the Securities Act), the Company covenants
                                         to use its commercially reasonable efforts to make and keep public information available
                                         (as those terms are understood and defined in Rule 144) and file timely (or obtain
                                         extensions in respect thereof and file within the applicable grace period) all reports
                                         required to be filed by the Company after the Closing pursuant to Sections 13(a)
                                         or 15(d) of the Exchange Act and to promptly furnish the Subscriber with true and complete
                                         copies of all such filings to enable the Subscriber to resell the Shares pursuant to
                                         Rule 144; provided that any documents publicly filed or furnished with the SEC
                                         pursuant to the SEC’s Electronic Data Gathering, Analysis and Retrieval System
                                         shall be deemed to have been furnished or delivered to the Subscriber pursuant to this
                                         Section 10(c).

 

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		(d)	The
                                         Subscriber hereby acknowledges and agrees that it will not, nor will any person acting
                                         at the Subscriber’s direction or pursuant to any understanding with the Subscriber,
                                         directly or indirectly engage in hedging activities or execute any “short sales”
                                         as defined in Rule 200 of Regulation SHO under the Exchange Act of the Acquiror Class
                                         A Common Stock (any of the foregoing transactions, “Short Sales”)
                                         until the Closing or the earlier termination of this Subscription Agreement in accordance
                                         with its terms. Notwithstanding the foregoing, (i) nothing herein shall prohibit other
                                         entities under common management, or that share a common investment advisor, with the
                                         Subscriber that have no knowledge of this Subscription Agreement or of the Subscriber’s
                                         participation in the subscription (including the Subscriber’s controlled affiliates
                                         and/or affiliates) from entering into any Short Sales and (ii) in the case of a Subscriber
                                         that is a multi-managed investment vehicle whereby separate portfolio managers or desks
                                         manage separate portions of such Subscriber’s assets and the portfolio managers
                                         have no knowledge of the investment decisions made by the portfolio managers managing
                                         other portions of such Subscriber’s assets, the covenant set forth in this Section
                                         10(d) shall only apply with respect to the portion of assets managed by the portfolio
                                         manager that made the investment decision to purchase the Shares covered by this Subscription
                                         Agreement.

 

		11.	MISCELLANEOUS. 

 

		(a)	All
                                         press releases or other public communications relating to the transactions contemplated
                                         hereby between the Company and the Subscriber, and the method of the release for publication
                                         thereof, shall prior to the Closing be subject to the prior approval of (i) the Company,
                                         and (ii) to the extent such public communication references the Subscriber, the Subscriber.
                                         The restriction in this Section 11(a) shall not apply to the extent the public
                                         announcement is required by applicable securities Law, any governmental authority or
                                         stock exchange rule; provided, however, that in such an event, the applicable
                                         party shall consult with the other party in advance as to its form, content and timing
                                         to the extent practicable and permitted by Law.

 

		(b)	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 (the “Disclosure Time”),
                                         issue one or more press releases or file with the SEC a Current Report on Form 8-K (collectively,
                                         the “Disclosure Document”) disclosing all material terms of the transactions
                                         contemplated hereby, by the Other Subscription Agreements, and by the Merger Agreement.
                                         From and after the Disclosure Time, the Company represents to the Subscriber that it
                                         shall have publicly disclosed all material, non-public information delivered to the Subscriber
                                         by the Company or any of its officers, directors, employees or agents, in connection
                                         with the transactions contemplated by the Subscription Agreement and the Merger Agreement,
                                         and from and after the earlier of the Disclosure Time and the issuance or filing of the
                                         Disclosure Document, Subscriber shall no longer be subject to any confidentiality or
                                         similar obligations under any current agreement, whether written or oral with the Company,
                                         the Placement Agents, or any of their respective officers, directors, employees, agent
                                         or affiliates with respect to the transactions contemplated by the Subscription Agreement
                                         and the Merger Agreement. For the avoidance of doubt, unless otherwise prohibited by
                                         applicable Law, the Company or Target, as applicable, shall consult with the Subscriber
                                         prior to the publication and disclosure in any Form 8-K filed by the Company with the
                                         SEC in connection with the execution and delivery of the Merger Agreement or the transactions
                                         contemplated thereby and the Registration Statement (as defined in the Merger Agreement)
                                         (and, as and to the extent otherwise required by the federal securities laws, exchange
                                         rules, the SEC or any other securities authorities or any rules and regulations promulgated
                                         thereby, any other documents or communications provided by the Company or Target to any
                                         governmental entity or to any securityholders of the Company) of Subscriber’s identity
                                         and beneficial ownership of the Shares and the nature of Subscriber’s commitments,
                                         arrangements and understandings under and relating to this Subscription Agreement and,
                                         if deemed appropriate by the Company or Target, a copy of this Subscription Agreement,
                                         all solely to the extent required by applicable law or any regulation or stock exchange
                                         listing requirement.

 

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		(c)	All
                                         notices and other communications among the parties shall be in writing and shall be deemed
                                         to have been duly given (i) when delivered in person, (ii) when delivered after posting
                                         in the United States mail having been sent registered or certified mail return receipt
                                         requested, postage prepaid, (iii) when delivered by FedEx or other nationally recognized
                                         overnight delivery service, or (iv) when delivered by email (in each case in this clause
                                         (iv), solely if receipt is confirmed, but excluding any automated reply, such as an out-of-office
                                         notification), addressed as follows:

 

		(i)	If
                                         to the Company:

 

Capitol
Investment Corp. V

1300 17th Street North,

Suite 820

Arlington, Virginia 22209

Attn: Mark D. Ein, Chief Executive Officer

 

with
copies to (which shall not constitute notice):

 

Latham & Watkins LLP

555 Eleventh Street N.W.,

Suite 1000

Washington, DC 20004

Attn: Paul Sheridan and Daniel Breslin

Email:paul.sheridan@lw.com and daniel.breslin@lw.com

 

		(ii)	If
                                         to the Subscriber, to its address set forth on the signature page hereto.

 

or
to such other address or addresses as the parties may from time to time designate in writing. Copies delivered solely to outside
counsel shall not constitute notice.

 

		(d)	No
                                         party hereto shall assign this Subscription Agreement or any part hereof without the
                                         prior written consent of the other parties and any such transfer without prior written
                                         consent shall be void; provided no consent of the parties hereto shall be required in
                                         connection with (i) the Merger or (ii) an assignment by the Subscriber to any fund or
                                         account managed by the same investment manager as Subscriber, provided that such assignee(s)
                                         agrees in writing to be bound by the terms hereof, and upon such assignment by a Subscriber,
                                         the assignee(s) shall become Subscriber hereunder and have the rights and obligations
                                         and be deemed to make the representations and warranties of Subscriber provided for herein
                                         to the extent of such assignment; provided further that, no assignment shall relieve
                                         the assigning party of any of its obligations hereunder, including any assignment to
                                         any fund or account managed by the same investment manager as Subscriber. Subject to
                                         the foregoing, this Subscription Agreement shall be binding upon and inure to the benefit
                                         of the parties hereto and their respective permitted successors and assigns.

 

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		(e)	Prior
                                         to or at the Subscription Closing, the parties hereto shall execute and deliver such
                                         additional documents and use commercially reasonable efforts to take such additional
                                         actions as the parties reasonably may deem to be practical and necessary, in each case,
                                         in order to consummate the subscription as contemplated by this Subscription Agreement.
                                         The Company may request from the Subscriber such additional information as the Company
                                         may deem necessary to obtain any material consents and approvals of third parties (including
                                         Governmental Authorities) required in connection with the Closing, and the Subscriber
                                         shall provide such information as may reasonably be requested to the extent readily available
                                         and to the extent consistent with its internal policies and procedures; provided, that
                                         the Company agrees to keep any such information provided by Subscriber confidential,
                                         except (A) as required by the federal securities laws, rules or regulations and (B) 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 regulations of the NYSE,
                                         in which case of clause (A) or (B), the Company shall provide the Subscriber with prior
                                         written notice (including by e-mail) of such permitted disclosure, and shall reasonably
                                         consult with the Subscriber regarding such disclosure.

 

		(f)	This
                                         Subscription Agreement may not be amended, modified, waived or terminated except by an
                                         instrument in writing signed by the parties hereto and Target as a third party beneficiary
                                         to Section 8 and this Section 11(f); provided, that Section 5,
                                         this Section 11(f), Section 11(n), Section 12 and Section 13
                                         of this Subscription Agreement may not be amended, terminated or waived in a manner
                                         that is material and adverse to the Placement Agent without the written consent of the
                                         Placement Agent.

 

		(g)	This
                                         Subscription Agreement constitutes the entire agreement, and supersedes all other prior
                                         agreements, understandings, representations and warranties, both written and oral, among
                                         the parties, with respect to the subject matter hereof. Except as otherwise set forth
                                         herein, this Subscription Agreement shall not confer any rights or remedies upon any
                                         person other than the parties hereto, and their respective successor and assigns.

 

		(h)	If
                                         any provision of this Subscription Agreement is held invalid or unenforceable by any
                                         court of competent jurisdiction, the other provisions of this Subscription Agreement
                                         shall remain in full force and effect. The parties further agree that if any provision
                                         contained herein is, to any extent, held invalid or unenforceable in any respect under
                                         the Laws governing this Subscription Agreement, they shall take any actions reasonably
                                         necessary to render the remaining provisions of this Subscription Agreement valid and
                                         enforceable to the fullest extent permitted by Law and, to the extent reasonably necessary,
                                         shall amend or otherwise modify this Subscription Agreement to replace any provision
                                         contained herein that is held invalid or unenforceable with a valid and enforceable provision
                                         giving effect to the intent of the parties.

 

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		(i)	The
                                         headings in this Subscription Agreement are for convenience only and shall not be considered
                                         a part of or affect the construction or interpretation of any provision of this Subscription
                                         Agreement. This Subscription Agreement may be executed in one or more counterparts (including
                                         by electronic mail or other electronic submission, including .pdf or any electronic signature
                                         complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) 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.

 

		(j)	This
                                         Subscription Agreement, and all claims or causes of action based upon, arising out of,
                                         or related to this Subscription Agreement or the transactions contemplated hereby, shall
                                         be governed by, and construed in accordance with, the Laws of the State of Delaware,
                                         without giving effect to principles or rules of conflict of Laws to the extent such principles
                                         or rules would require or permit the application of Laws of another jurisdiction.

 

		(k)	Any
                                         proceeding or Action based upon, arising out of or related to this Subscription Agreement
                                         or the transactions contemplated hereby must be brought in the Court of Chancery of the
                                         State of Delaware (or, to the extent such Court does not have subject matter jurisdiction,
                                         the Superior Court of the State of Delaware), or, if it has or can acquire jurisdiction,
                                         in the United States District Court for the District of Delaware, and each of the parties
                                         irrevocably submits to the exclusive jurisdiction of each such court in any such proceeding
                                         or Action, waives any objection it may now or hereafter have to personal jurisdiction,
                                         venue or to convenience of forum, agrees that all claims in respect of the proceeding
                                         or Action shall be heard and determined only in any such court, and agrees not to bring
                                         any proceeding or Action arising out of or relating to this Subscription Agreement or
                                         the transactions contemplated hereby in any other court. Nothing herein contained shall
                                         be deemed to affect the right of any party to serve process in any manner permitted by
                                         Law or to commence legal proceedings or otherwise proceed against any other party in
                                         any other jurisdiction, in each case, to enforce judgments obtained in any Action, suit
                                         or proceeding brought pursuant to this Section 11(k). Each party acknowledges
                                         and agrees that any controversy which may arise under this Subscription Agreement and
                                         the transactions contemplated hereby is likely to involve complicated and difficult issues,
                                         and therefore each such party hereby irrevocably, unconditionally and voluntarily waives
                                         any right such party may have to a trial by jury in respect of any Action, suit or proceeding
                                         directly or indirectly arising out of or relating to this Subscription Agreement or any
                                         of the transactions contemplated hereby.

 

		(l)	Each
                                         party hereto agrees 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 each party hereto
                                         shall be entitled to an injunction or injunctions to prevent breaches of this Subscription
                                         Agreement and to specific enforcement of the terms and provisions of this Subscription
                                         Agreement, in addition to any other remedy to which it is entitled at law or in equity.
                                         In the event that any Action shall be brought in equity to enforce the provisions of
                                         this Subscription Agreement, the defending party shall not allege, and such party hereby
                                         waives the defense, that there is an adequate remedy at law, and such party agrees to
                                         waive any requirement for the securing or posting of any bond in connection therewith.

 

		(m)	Each
                                         party hereto shall be responsible for and pay its own expenses incurred in connection
                                         with this Subscription Agreement, including all fees of its legal counsel, financial
                                         advisers and accountants.

 

		(n)	The
                                         parties hereto agree that the Placement Agents are express third-party beneficiaries
                                         of their express rights in Section 5, Section 11(f), this Section 11(n),
                                         Section 12 and Section 13 of this Subscription Agreement.

 

    23

     

    

 

		12.	NON-RELIANCE.
                                         The Subscriber acknowledges that it is not relying upon, and has not relied upon, any
                                         statement, representation or warranty made by any person, firm or corporation, other
                                         than the statements, representations and warranties of the Company explicitly contained
                                         in this Subscription Agreement, in making its investment or decision to invest in the
                                         Company.

 

		13.	NON-RECOURSE.
                                         This Subscription Agreement may only be enforced against, and any claim or cause of action
                                         based upon, arising out of, or related to any breach of any term or condition of this
                                         Subscription Agreement may only be brought against, the entities that are expressly named
                                         as parties hereto and then only to the extent of the specific obligations set forth herein
                                         with respect to such party.

 

		14.	INDEPENDENT
                                         OBLIGATIONS. The obligations of the Subscriber under this Subscription Agreement
                                         are several and not joint with the obligations of any Other Subscriber under the Other
                                         Subscription Agreements, and the Subscriber shall not be responsible in any way for the
                                         performance of the obligations of any Other Subscriber under the Other Subscription Agreements.
                                         The decision of the Subscriber to purchase Shares pursuant to this Subscription Agreement
                                         has been made by the Subscriber independently of any Other Subscriber 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 Target or any of its subsidiaries which may have been made or given by
                                         any Other Subscriber or by any agent or employee of any Other Subscriber, and neither
                                         the Subscriber nor any of its agents or employees shall have any liability to any Other
                                         Subscriber (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 the Subscriber or any Other Subscribers pursuant hereto or thereto,
                                         shall be deemed to constitute the Subscriber and Other Subscribers as a partnership,
                                         an association, a joint venture or any other kind of entity, or create a presumption
                                         that the Subscriber and Other Subscribers 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. The 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 Shares or enforcing its rights under
                                         this Subscription Agreement. The 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.

 

		15.	MASSACHUSETTS
                                         BUSINESS TRUST. If the Subscriber is a Massachusetts Business Trust, a copy of the
                                         Agreement and Declaration of Trust of the Subscriber or any affiliate thereof is on file
                                         with the Secretary of State of the Commonwealth of Massachusetts and notice is hereby
                                         given that the Subscription Agreement is executed on behalf of the trustees of the Subscriber
                                         or any affiliate thereof as trustees and not individually and that the obligations of
                                         the Subscription Agreement are not binding on any of the trustees, officers or stockholders
                                         of the Subscriber or any affiliate thereof individually but are binding only upon the
                                         Subscriber or any affiliate thereof and its assets and property.

 

[SIGNATURE
PAGES FOLLOW]

 

    24

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Subscription Agreement on the day and year first above written.

 

	 	Capitol
    Investment Corp. V 
	 	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

[Signature
Page to Subscription Agreement]

 

     

     

    

 

	 	Subscriber:	 
	 	 	 	 
	 	 [●]	 
	 	 	 	 
	 	By:	          
	 	 	Name:	                                            
	 	 	Title:	 
	 	 	 	 
	 	Notice
    Address: 	 
	 	 	 	 
	 	[●]	 	 
	 	[●]	 	 
	 	Attention: [●]
	 	Email:
    [●]	 

 

	 	Number
    of Shares subscribed for:
	 	 
	 	 
	 	 	 
	 	Aggregate
    Purchase Price:
	 	 	 
		$ 	                                                                                          

 

[Signature
Page to Subscription Agreement]

  

     

     

    

 

SCHEDULE
A

 

ELIGIBILITY
REPRESENTATIONS OF THE SUBSCRIBER

 

		A.	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.

 

		B.	INSTITUTIONAL
                                         ACCREDITED INVESTOR STATUS (Please check the applicable subparagraphs):

 

● The
Subscriber is an “accredited investor” (within the meaning of Rule 501(a) under the Securities Act) for one
or more of the following reasons (Please check the applicable subparagraphs):

 

●
The Subscriber is a bank, as defined in Section 3(a)(2) of the Securities Act or any savings and loan association or other
institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in an individual or a fiduciary capacity.

 

●
The Subscriber is a broker or dealer registered under Section 15 of the Securities Exchange Act of 1934, as amended.

 

● The
Subscriber is an insurance company, as defined in Section 2(a)(13) of the Securities Act.

 

● The
Subscriber is an investment company registered under the Investment Company Act of 1940 or a business development company, as
defined in Section 2(a)(48) of that act.

 

●
The Subscriber is a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c)
or (d) of the Small Business Investment Act of 1958.

 

●
The Subscriber is an investment adviser registered pursuant to section 203 of the Investment Advisers Act of 1940, as amended
(the “Investment Advisers Act”), or registered pursuant to the laws of a state.

 

●
The Subscriber is an investment adviser relying on the exemption from registering with the Commission under section 203(l) or
(m) of the Investment Advisers Act.

 

    Schedule A-1

     

    

 

●
The Subscriber is a 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 the plan has total assets in excess of $5 million.

 

●
The Subscriber is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974,
if the investment decision is being made by a plan fiduciary, as defined in Section 3(21) of such act, and the plan fiduciary
is either a bank, an insurance company, or a registered investment adviser, or if the employee benefit plan has total assets in
excess of $5 million.

 

●
The Subscriber is a private business development company, as defined in Section 202(a)(22) of the Investment Advisers Act
of 1940.

 

● The
Subscriber is a corporation, limited liability company, Massachusetts or similar business trust, or partnership, or an organization
described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, that was not formed for the specific purpose
of acquiring the Shares, and that has total assets in excess of $5 million.

 

● The
Subscriber is a trust with total assets in excess of $5 million not formed for the specific purpose of acquiring the Securities,
whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the Securities Act.

 

● The
Subscriber is an entity, other than an entity described in the categories of “accredited investors” above, not formed
for the specific purpose of acquiring the securities offered, owning investments in excess of $5,000,000.

 

●
The Subscriber is a “family office,” as defined under the Investment Advisers Act that satisfies all of the following
conditions: (i) with assets under management in excess of $5,000,000, (ii) that is not formed for the specific purpose of acquiring
the securities offered and (iii) whose prospective investment is directed by a person who has such knowledge and experience in
financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment.

 

●
The Subscriber is a “family client,” as defined under the Investment Advisers Act, of a family office meeting the
requirements in the previous paragraph and whose prospective investment in the issuer is directed by such family office pursuant
to the previous paragraph.

 

● The
Subscriber is an entity in which all of the equity owners are accredited investors.

 

    Schedule A-2

     

    

 

		C.	QUALIFIED
                                         INSTITUTIONAL BUYER STATUS (Please check the applicable subparagraphs):

 

●
The Subscriber is a “qualified institutional buyer” (within the meaning of Rule 144A under the Securities Act)
if it is an entity that meets any one of the following categories at the time of the sale of securities to the Subscriber (Please
check the applicable subparagraphs):

 

●
The Subscriber is an entity that, acting for its own account or the accounts of other qualified institutional buyers, in the aggregate
owns and invests on a discretionary basis at least $100 million in securities of issuers that are not affiliated with the Subscriber
and:

 

●
The Subscriber is an insurance company.

 

●
The Subscriber is an investment company registered under the Investment Company Act or any business development company as defined
in section 2(a)(48) of that Act.

 

●
The Subscriber is a Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c)
or (d) of the Small Business Investment Act of 1958.

 

●
The Subscriber is a 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.

 

●
The Subscriber is a trust fund whose trustee is a bank or trust company and whose participants are exclusively plans established
for the benefit of state employees or employee benefit plans, except trust funds that include as participants individual retirement
accounts or H.R. 10 plans.

 

●
The Subscriber is a business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940.

 

●
The Subscriber is an organization described in section 501(c)(3) of the Internal Revenue Code, corporation (other than a
bank as defined in section 3(a)(2) of the Act, a savings and loan association or other institution referenced in section 3(a)(5)(A)
of the Act, a foreign bank or savings and loan association, or equivalent institution), partnership, or Massachusetts or similar
business trust.

 

●
The Subscriber is an investment adviser registered under the Investment Advisers Act.

 

●
The Subscriber is an institutional accredited investor, as defined in Rule 501(a) under the Securities Act, of a type not listed
in paragraphs (a)(1)(i)(A) through (I) or paragraphs (a)(1)(ii) through (vi) thereof.

 

●
The Subscriber is registered dealer, acting for its own account or the accounts of other qualified institutional buyers, that
in the aggregate owns and invests on a discretionary basis at least $10 million of securities of issuers that are not affiliated
with the Subscriber.

 

●
The Subscriber is a registered dealer acting in a riskless principal transaction on behalf of a qualified institutional buyer.

 

●
The Subscriber is an investment company registered under the Investment Company Act, acting for its own account or for the accounts
of other qualified institutional buyers, that is part of a family of investment companies which own in the aggregate at least
$100 million in securities of issuers, other than issuers that are affiliated with Subscriber or are part of such family of investment
companies.

 

●
The Subscriber is an entity, all of the equity owners of which are qualified institutional buyers, acting for its own account
or the accounts of other qualified institutional buyers.

 

●
The Subscriber is a bank or any savings and loan association or other institution, acting for its own account or the accounts
of other qualified institutional buyers, that in the aggregate owns and invests on a discretionary basis at least $100 million
in securities of issuers that are not affiliated with it and that has an audited net worth of at least $25 million as demonstrated
in its latest annual financial statements, as of a date not more than 16 months preceding the date of sale under Rule 144A in
the case of a US bank or savings and loan association, and not more than 18 months preceding the date of sale for a foreign bank
or savings and loan association or equivalent institution.

 

Schedule A-3

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