Document:

CNL Strategic Capital, LLC 8-K

EXHIBIT 10.1

 

 

 

 

 

 

 

 

 

 

 

STOCK PURCHASE AGREEMENT

 

STOCK PURCHASE AGREEMENT

by and among

DOUGLAS
MACHINES BUYER, INC.,

DOUGLAS
MACHINES CORP.,

AND

DOUGLAS
ACQUISITION COMPANY, LLC

OCTOBER 7, 2021

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

TABLE OF CONTENTS

	ARTICLE I SALE AND PURCHASE OF SHARES	4
	1.01	Sale and Purchase of Transferred Shares	4
	1.02	Consideration	4
	1.03	Closing Calculations	4
	1.04	Final Closing Calculations	4
	1.05	Post Closing Adjustment Payment	5
	ARTICLE II THE CLOSING	6
	2.01	The Closing	6
	2.02	The Closing Deliveries	7
	2.03	Withholding	8
	ARTICLE III REPRESENTATIONS AND WARRANTIES CONCERNING THE COMPANY	9
	3.01	Organization and Organizational Power	9
	3.02	Authorization; No Breach; Valid and Binding Agreement	9
	3.03	Capitalization	9
	3.04	Financial Statements	10
	3.05	Absence of Certain Developments	11
	3.06	COVID-19 Pandemic; CARES Act and PPP Loans	14
	3.07	Properties	14
	3.08	Tax Matters	15
	3.09	Contracts and Commitments	17
	3.10	Intellectual Property	20
	3.11	Litigation	22
	3.12	Employee Benefit Plans	22
	3.13	Insurance	25
	3.14	Compliance with Laws	25
	3.15	Environmental Matters	26
	3.16	Affiliated Transactions	27
	3.17	Labor and Employment Matters	27
	3.18	Warranty Liability and Product Liability	30
	3.19	Suppliers	30
	3.20	Customers	30
	3.21	Brokerage	31
	3.22	Bank Accounts and Powers of Attorney	31
	ARTICLE IV REPRESENTATIONS AND WARRANTIES CONCERNING SELLER	31
	4.01	Authorization	31
	4.02	No Violation	31
	4.03	Governmental Consents	32
	4.04	Litigation	32

 

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	ARTICLE V REPRESENTATIONS AND WARRANTIES OF PURCHASER	32
	5.01	Organization and Organizational Power	32
	5.02	Authorization	32
	5.03	No Violation	33
	5.04	Litigation	33
	5.05	Brokerage	33
	ARTICLE VI COVENANTS	33
	6.01	Non-Competition	33
	6.02	Non-Solicitation; Non-Interference; Non-Hire	33
	6.03	Confidentiality	34
	6.04	Enforceability; Severability	34
	6.05	Remedies	35
	6.06	Further Assurances	35
	6.07	Tax Matters	35
	6.08	R&W Policy	38
	6.09	D&O Indemnification	39
	6.10	Release	39
	ARTICLE VII INDEMNIFICATION AND RELATED MATTERS	39
	7.01	Survival	39
	7.02	Indemnification	40
	ARTICLE VIII DEFINITIONS	44
	8.01	Definitions	44
	8.02	Other Definitional Provisions	52
	ARTICLE IX MISCELLANEOUS	52
	9.01	Amendment and Waiver	52
	9.02	Press Releases and Communications	52
	9.03	Expenses	53
	9.04	Notices	53
	9.05	Assignment	54
	9.06	Severability	55
	9.07	References	55
	9.08	Construction	55
	9.09	Complete Agreement	56
	9.10	Third Party Beneficiaries	56
	9.11	Delivery by Electronic Transmission	56
	9.12	Counterparts	56
	9.13	Governing Law	56
	9.14	Jurisdiction	56
	9.15	Waiver of Trial by Jury	57
	9.16	Specific Performance	57

 

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STOCK
PURCHASE AGREEMENT

THIS
STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of October 7, 2021, is
made by and among Douglas Machines Buyer, Inc., a Delaware corporation (“Purchaser”), Douglas Machines Corp., a Delaware
corporation (the “Company”), and Douglas Acquisition Company, LLC, a Delaware limited liability company (“Seller”).

A.
       Except for the Exchanged Shares, Seller owns beneficially and of record all of the issued and
outstanding capital stock of the Company (the “Shares”).

B.
       Immediately prior to Closing (i) the William S. Karol Family Trust of 2012 (the “Trust”),
a shareholder of the Company contributed a portion of the Shares, as indicated on Annex A (“Exchanged Shares”)
in the amount of $3,500,000 (“Exchanged Amount”) to the Douglas Machines Holdings, LLC, a Delaware limited liability
company and the sole stockholder of Purchaser (“Parent”) in consideration for the issuance to the Trust of a number
of Class A Units of Parent having the same aggregate value as such Exchanged Shares, in each case, pursuant to that certain Contribution
and Exchange Agreement between the Trust and Parent entered into immediately prior to the execution and delivery of this Agreement (“Exchange
Agreement”), and (ii) immediately prior to the execution and delivery of this Agreement, Parent contributed the Exchanged Shares
to Purchaser pursuant to that certain Contribution Agreement between Parent and Purchaser dated as of the date hereof, with such contribution
being a transaction intended to qualify as a tax deferred contribution under Section 351 of the Code.

C.
       Purchaser desires to acquire from Seller, and Seller desires to sell to Purchaser, the Shares
that are not Exchanged Shares, as indicated on Annex A (the “Transferred Shares”)
in exchange for the Final Cash Consideration, being all of the issued and outstanding capital stock of the Company, on the terms and
subject to the conditions set forth herein.

D.
       As a result of (i) the Seller’s contribution of the Exchanged Shares to Parent, (ii)
Parent’s contribution of the Exchanged Shares to Purchaser, and (iii) Purchaser’s purchase of the Transferred Shares
from Seller, all in the manner more particularly described above, Purchaser shall become a wholly-owned subsidiary of Parent and Seller
shall become an equity holder of Parent.

E.       As
a result of the transactions to occur hereunder at the Closing, Purchaser will acquire all of the issued and outstanding capital stock
of the Company, in each case on the terms and conditions set forth herein.

F.       Immediately
following the Closing, Purchaser shall merge with and into the Company, with the Company being the surviving entity in such transaction.

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

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Article
I

SALE AND PURCHASE OF SHARES

1.01       Sale
and Purchase of Transferred Shares. At the Closing, upon the terms and subject to the conditions set forth in this Agreement, Seller
agrees to sell, convey, assign, transfer and deliver to Purchaser, and Purchaser agrees to purchase and accept delivery from the Seller
of, all of the Transferred Shares (except for the Exchanged Shares), free and clear of all Liens and other restrictions on transfer (other
than applicable federal and state securities law restrictions).

1.02       Consideration.
As consideration for the Transferred Shares, Purchaser shall, by wire transfer of immediately available funds:

(a)          pay,
on Seller’s behalf, the Funded Indebtedness of the Company in accordance with the payoff letters delivered to Purchaser pursuant
to Section 2.02(h);

(b)         pay,
on the Seller’s behalf, the Transaction Expenses to such account or accounts as Seller specify in writing to Purchaser pursuant
to Section 2.02(b); provided that, any amounts treated as wages to a current or former employee of the Company shall be paid to
the Company, which shall pay the respective payee such amount, less applicable withholding Taxes, through the Company’s payroll
system as a payment made and accounted for in a Pre-Closing Tax Period, unless otherwise required by applicable Law;

(c)       deposit
an amount equal to the Escrow Amount with the Escrow Agent, which amount will be held for purposes of providing security for satisfaction
for any claims in accordance with the terms of this Agreement; and

(d)       to
Seller the Closing Cash Consideration, by wire transfer of immediately available funds in accordance with Section 2.02(a).

1.03       Closing
Calculations. At least three (3) Business Days prior to the Closing, Seller shall provide Purchaser a statement setting forth the
Company’s good faith estimates of (i) Cash (“Estimated Cash”), (ii) Indebtedness (“Estimated Indebtedness”),
(iii) Transaction Expenses (“Estimated Transaction Expenses”), (iv) Net Working Capital (the “Estimated Net Working
Capital”) and (v) the resulting calculation of Closing Cash Consideration, together with a schedule calculating in reasonable detail
such amounts as of the Closing Effective Time. The Estimated Net Working Capital and the Final Net Working Capital (as defined below)
shall be calculated in the same manner and using the same methodologies are were used in the Example Net Working Capital Calculation
attached hereto as Exhibit A.

1.04       Final
Closing Calculations. As promptly as possible, but in any event within ninety (90) days after the Closing Date, Purchaser will deliver
to Seller a statement showing the calculation of Cash, Indebtedness, Transaction Expenses, Net Working Capital and the resulting calculation
of Final Cash Consideration (the “Preliminary Statement”). After delivery of the Preliminary Statement, Purchaser shall cause
the Company to provide Seller and Seller’s accountants and other representatives reasonable access to review the Company’s
books and records and any work papers (subject to customary access agreements) related to the preparation of the Preliminary Statement.
Seller and Seller’s accountants and other representatives may make inquiries of Purchaser, the Company and their respective accountants
regarding questions concerning or disagreements with the Preliminary Statement arising in the course of their review thereof, and Purchaser
shall use its, and shall cause the Company to use its, commercially reasonable efforts to cause any such accountants to cooperate with
and respond to such inquiries. If Seller has any objections to the Preliminary Statement, Seller shall deliver to Purchaser a statement
setting forth in reasonable detail based on the information then available to

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it such objections
(an “Objections Statement”) within thirty (30) days after delivery of the Preliminary Statement to Seller (the “Objection
Period”). If an Objections Statement is not delivered to Purchaser during the Objection Period, the Preliminary Statement and the
resulting calculation of the Final Cash Consideration shall be final, binding and non-appealable by the parties hereto. Seller and Purchaser
shall negotiate in good faith to resolve any such objections, but if they do not reach a final resolution within thirty (30) days after
the delivery of the Objections Statement, Seller and Purchaser shall submit such dispute to BDO USA LLP (the “Accounting Referee”).
Any submissions to the Accounting Referee shall be limited to the disputes outstanding as of the date of such submission and must be
set forth in a written statement (each, a “Position Statement”) and delivered to the Accounting Referee and concurrently
to each party to the dispute. The Accounting Referee shall be given reasonable access to all of the records of the Company and, to the
extent related to the calculations contained in any Position Statement, the Preliminary Statement or Objections Statement, Purchaser
to resolve any dispute regarding the Preliminary Statement, which determination with respect to any disputed matters shall be submitted
to Purchaser and Seller within twenty (20) Business Days. The Accounting Referee shall address only those items disputed in accordance
with this Section 1.04 and the Accounting Referee, acting as an expert and not as an arbitrator, shall make its determination as
to any disputed items within the dollar ranges set forth in the respective Position Statements delivered by Purchaser and Seller. No
party nor any Affiliate or representative of a party will (A) meet or discuss the subject matter hereof with the Accounting Referee without
Purchaser and Seller and their respective representatives present or having the opportunity, following at least three (3) Business Days’
written notice, to be present, either in person or by telephone, or (B) exchange any written correspondence with the Accounting Referee
regarding the subject matter hereof without simultaneously providing a copy of such correspondence to Purchaser or Seller, as applicable.
Absent fraud or manifest error, the determination of the Accounting Referee shall be conclusive and binding upon the parties hereto.
The fees and expenses of such Accounting Referee incurred in resolving the disputed matter shall be equitably apportioned by the Accounting
Referee based on the extent to which Purchaser, on the one hand, or Seller, on the other hand, is determined by the Accounting Referee
to be the prevailing party in the resolution of such disputed matters. For example, if Purchaser claims to be owed $100,000 on a net
basis pursuant to this Section 1.04, Seller claims that $0 is owed to Purchaser and the Accounting Referee determines that $60,000 is
owed to Purchaser on a net basis, then Purchaser shall pay 40% of the Accounting Referee’s fees and expenses and Seller shall 60%
of such fees and expenses. For the avoidance of doubt, the Accounting Referee shall also resolve any disputes that may arise as to whether
the Seller and Purchaser have complied with the terms and procedures of this Section 1.04. The amount of Cash, Indebtedness, Transaction
Expenses and Net Working Capital as finally determined pursuant to this Section 1.04 shall be referred to herein as “Final
Cash,” “Final Indebtedness,” “Final Transaction Expenses,” and “Final Net Working Capital.”

1.05       Post-Closing
Adjustment Payment. 

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(a)         If
the Final Cash Consideration is greater than the Closing Cash Consideration (such difference, the “Excess Amount”),
(i) Purchaser shall promptly (but in any event within five (5) Business Days following the determination of the Final Cash Consideration)
pay, or cause to be paid, to Seller the Excess Amount, by wire transfer of immediately available funds to an account designated in writing
by Seller and (ii) Purchaser and Seller shall promptly, and in any event within five (5) Business Days following the determination of
the Final Cash Consideration, provide joint written instructions to the Escrow Agent instructing the Escrow Agent to release the entire
Adjustment Escrow Amount in the Escrow Account to Seller.

(b)         If
the Final Cash Consideration is less than the Closing Cash Consideration (the absolute value of such difference, the “Deficit
Amount”), Purchaser and Seller shall promptly, and in any event within five (5) Business Days following the determination of
the Final Cash Consideration, provide joint written instructions to the Escrow Agent instructing the Escrow Agent to release from the
Adjustment Escrow Amount in the Escrow Account (i) to an account designated in writing by Purchaser, the Deficit Amount and (ii) to an
account designated in writing by Seller, the balance remaining (if any) of the Adjustment Escrow Amount remaining in the Escrow Account
(after any payment made to Purchaser from the Adjustment Escrow Amount pursuant to the foregoing clause (i)). If the Deficit Amount is
greater than the then remaining balance of the Adjustment Escrow Amount (before any payment made to Purchaser from the Adjustment Escrow
Amount pursuant to the foregoing clause (i)) (such excess, the “Shortfall Amount”), then Seller shall promptly, and
in any event within five (5) Business Days following the determination of the Final Cash Consideration, pay, by wire transfer of immediately
available funds, an amount equal to the Shortfall Amount to an account or accounts designated by Purchaser.

(c)         If
the Final Cash Consideration is equal to the Closing Cash Consideration, Purchaser and Seller shall promptly, and in any event within
five (5) Business Days following the determination of the Final Cash Consideration, provide joint written instructions to the Escrow
Agent instructing the Escrow Agent to release the entire Adjustment Escrow Amount in the Escrow Account to Seller.

(d)         For
the avoidance of doubt, any payments made to Seller pursuant to an adjustment to the Closing Cash Consideration under this Section
1.05 shall be treated as an adjustment to the purchase price for all applicable Tax purposes.

Article
II

THE CLOSING

2.01       The
Closing . The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place remotely via
electronic exchange of documents and signatures and shall be deemed to have occurred at 12:01 a.m. Eastern Time (the “Closing Effective
Time”) on the date of this Agreement (the “Closing Date”).

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2.02       The
Closing Deliveries. At the Closing, the parties shall deliver, or cause to be delivered, each of the following:

(a)          Purchaser
shall deliver to Seller the Closing Cash Consideration, by wire transfer of immediately available funds pursuant to wire instructions
provided in writing by Seller to Purchaser not less than three (3) Business Days prior to the Closing;

(b)          Seller
shall have delivered to Purchaser invoices for the Transaction Expenses payable at or prior to the Closing and wire instructions for
the recipients thereof at least three (3) Business Days prior to the Closing Date, and Purchaser shall pay, or cause to be paid, on behalf
of Seller and the Company (as applicable), such Transaction Expenses by wire transfer of immediately available funds in accordance with
such invoices and wire instructions;

(c)          Seller
shall deliver to Purchaser and Parent, as applicable, the stock certificates and stock powers representing the Transferred Shares and
Exchanged Shares, duly endorsed over to each of Purchaser and Parent, as applicable;

(d)          Purchaser
and Seller shall deliver duly executed copies of the Escrow Agreement;

(e)          Purchaser
shall deliver, or cause to be delivered, executed copies of the Exchange Agreement and the limited liability company agreement of Parent,
delivered by each party thereto other than Seller;

(f)          Seller
shall deliver its counterpart signature pages to the Exchange Agreement and the limited liability company agreement of Parent;

(g)          Seller
shall deliver to Purchaser a duly executed IRS Form W-9;

(h)          Seller
shall cause to be delivered to Purchaser such resignations of the directors and officers of the Company as Purchaser may require, in
a form acceptable to Purchaser and Seller;

(i)          Seller
shall have delivered to Purchaser the payoff letters (the “Payoff Letters”) with respect to the Funded Indebtedness
executed by the lenders thereof at least three (3) Business Days prior to the Closing Date, which Payoff Letters (i) set forth the amount
required to be paid to satisfy in full all of such Funded Indebtedness, and (ii) provide for, upon receipt of such amount, authority
to release of all collateral and Liens in respect of the applicable Funded Indebtedness;

(j)          Seller
shall deliver to Purchaser certified copies of resolutions duly adopted by the Company’s board of directors, authorizing the execution,
delivery and performance by the Company of this Agreement and the other agreements contemplated hereby, and the consummation of all transactions
contemplated hereby and thereby;

(k)         Seller
shall deliver to Purchaser certified copies of resolutions duly adopted by the Seller’s sole Manager, authorizing the execution,
delivery and performance by Seller of this Agreement and the other agreements contemplated hereby, and the consummation of all transactions
contemplated hereby and thereby;

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(l)          Seller
shall deliver to Purchaser duly executed copies of the consents set forth on Schedule 2.02(l) in form and substance reasonably
acceptable to Purchaser;

(m)         Seller
shall deliver a certificate signed by an officer of the Company certifying correct and complete copies of the Company’s certificate
of incorporation and bylaws (the “Organizational Documents”);

(n)          Seller
shall deliver to Purchaser a certificate of good standing issued by the Secretary of State of the jurisdiction in which the Company is
organized and each jurisdiction where the Company is qualified to do business stating that the Company, as applicable, is in good standing
in such jurisdiction, dated no earlier than ten (10) Business Days prior to the Closing Date;

(o)          Seller
shall deliver to Purchaser duly executed SAR Payment, Termination and Release Agreements terminating all obligations and other Liabilities
of the Company under each of the Contracts set forth on Schedule 2.02(l) (collectively, the “SAR Obligations”)
representing all Company Stock Appreciation Rights Agreements, duly executed by the Company and each grantee party thereto;

(p)          Seller
and Purchaser shall cause to be delivered continuing employment offer letters, duly executed by the Company each of Paul Claro and Rodney
Surratt;

(q)          Seller
shall deliver to Purchaser duly executed copies evidencing the terminations of that certain (i) Management Consulting Services Agreement,
dated as of February 16, 2021, by and between KODA Enterprises Group, LLC and the Company, as amended by that certain Amendment to Management
Consulting Services Agreement, dated as of May 10, 2021, as amended, and (ii) Consulting Agreement, dated as of January 1, 2018, by and
between James H. Peden and the Company, as amended;

(r)          Seller
shall deliver to Purchaser a duly executed termination of engagement letter and release agreement by and between the Company and Sperry
Mitchell & Company; and

(s)          Purchaser
shall have delivered to Seller a copy of the binder for the R&W Policy.

2.03       Withholding.
Notwithstanding any other provision in this Agreement to the contrary, Purchaser and the Company, as applicable, shall be entitled to
deduct and withhold from any amounts otherwise payable (directly or indirectly) pursuant to this Agreement such amounts as Purchaser
or the Company are required to deduct and withhold with respect to the making of such payment under applicable Law; provided that with
respect to any payments not in the nature of compensation, if Purchaser determines that any deduction and withholding is required, Purchaser
shall provide Seller with two (2) days’ notice of its intent to so deduct and withhold, and the parties shall cooperate to minimize
any required deduction and withholding. To the extent that amounts are so withheld, such withheld amounts shall be treated for all purposes
of this Agreement as having been paid to the applicable payee in respect of which such deduction and withholding was made.

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Article
III

REPRESENTATIONS AND WARRANTIES CONCERNING THE COMPANY

Seller
hereby represents and warrants to Purchaser as follows:

3.01       Organization
and Organizational Power. The Company is a corporation duly organized, validly existing and in good standing under the Laws of the
State of Delaware, and has all requisite corporate power, authority, and Registrations necessary to own, lease, and operate its properties
and to carry on its businesses as now conducted. The Company is in good standing and qualified to do business in every jurisdiction in
which its ownership, lease, or operation of property or the conduct of business as now conducted requires it to qualify, except where
the failure to be so qualified has not been and would not reasonably be expected to be material. The Company has delivered or made available
to Purchaser true, correct and complete copies of the Company’s Organizational Documents.

3.02       Authorization;
No Breach; Valid and Binding Agreement. Except as set forth on Schedule 3.02, the execution, delivery and performance of this Agreement
and the Ancillary Agreements by the Company does not, and the consummation of the transactions contemplated hereby and thereby will not,
(i) violate or result in a breach of or constitute a default under any applicable Law or Registration applicable to the Company, (ii)
conflict with, breach, violate, or require any consent under, the provisions of the Company’s Organizational Documents, or (iii)
result in any breach or violation of, constitute a default under, or result in the termination, cancellation, modification or acceleration
of any right or obligation of the Company under, or result in the creation of any Lien upon any assets of the Company under, or require
any authorization, consent, approval, exemption, or other action by or notice to any Governmental Entity or other third party under,
any Material Contract (in each case, whether with or without notice or the lapse of time or both). Assuming that this Agreement is a
valid and binding obligation of the other parties hereto and that each Ancillary Agreement to which the Company is a party will be a
valid and binding obligation of the other parties thereto (as applicable), this Agreement constitutes, and each Ancillary Agreement to
which Purchaser is a party will constitute, a valid and binding obligation of the Company, enforceable in accordance with its terms,
except as enforceability may be limited by bankruptcy Laws, other similar Laws affecting creditors’ rights and general principles
of equity affecting the availability of specific performance and other equitable remedies. No other vote of the holders of any class
or series of capital stock of the Company is required to adopt this Agreement and approve the transactions contemplated hereby.

3.03       Capitalization.

(a)         Seller
owns beneficially and of record the Transferred Shares, which collectively, constitute all of the issued and outstanding capital stock
of the Company other than the Exchanged Shares. All of the Shares are duly authorized and validly issued in compliance with the applicable
Company’s the Organizational Documents.

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(b)         Except
as set forth on Schedule 3.03(b), other than the Shares held by Seller and the Exchanged Shares, the Company does not have any
equity securities or securities containing any equity features issued or outstanding (including, for the avoidance of doubt, any securities
of the Company convertible into or exchangeable for equity securities of the Company) (collectively, “Company Securities”),
and there are no subscriptions, agreements, options, phantom equity, equity appreciation rights, warrants or other rights or arrangements
outstanding that provide for the sale or issuance of any Company Securities. There are no agreements or other obligations (contingent
or otherwise) that require any Company to repurchase or otherwise acquire any Company Securities.

(c)         Except
as set forth on Schedule 3.03(c), there are no outstanding contractual rights, obligations or arrangements to which the Company
is a party and the value of which are based on the Transferred Shares or the Exchanged Shares (including equity appreciation, phantom
equity, profit participation or similar rights). There are no voting trusts, proxies or other agreements with respect to the voting of
the Transferred Shares or the Exchanged Shares. Upon consummation of the transactions contemplated by this Agreement, Purchaser shall
own all of the Transferred Shares free and clear of all Liens and other restrictions on transfer (other than applicable federal and state
securities law restrictions or the then-applicable Organizational Documents).

(d)         The
Company does not have any Subsidiaries or ownership interest in any other Person.

3.04       Financial
Statements.

(a)         Schedule
3.04(a) sets forth: (i) the unaudited balance sheet of the Company as of July 31, 2021 (the “Latest Balance Sheet”)
and the related statements of income and cash flows for the one (1)-month period then ended (the “Interim Financial Statements”)
and (ii) the audited balance sheet and statements of income and cash flows of the Company for the fiscal years ended, June 30, 2019,
June 30, 2020 and June 30, 2021 (collectively, with the Interim Financial Statements, the “Financial Statements”).
The Financial Statements have been prepared in accordance with GAAP, consistently applied throughout the relevant reporting period, and
present fairly in all material respects the financial condition and results of operations of the Company as of the times and for the
periods referred to therein, subject to (x) the absence of footnote disclosures and other presentation items in the Interim Financial
Statements and (y) changes resulting from normal year-end adjustments in the Interim Financial Statements, in the cases of clauses (x)
and (y), none of which would be material individually or in the aggregate to the business, operations, assets, liabilities, financial
condition, operating results or cash flow of the Company. The Financial Statements are based on, and consistent with, the books and records
of the Company (which in turn are true, correct and complete in all material respects).

(b)         The
Company has no material outstanding Liabilities, debts or obligations of any nature, other than Liabilities, debts and obligations (i)
specifically accrued or disclosed on the Latest Balance Sheet, (ii) incurred in the ordinary course of business since the date of
the Latest Balance Sheet (none of which is a Liability relating to any breach of Contract, breach of warranty, tort, infringement, misappropriation,
violation of Law, Proceeding or environmental Liability), or (iii) otherwise disclosed on Schedule 3.04(b)(iii).

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(c)         The
Company is not a party to, nor has any commitment to become a party to, any off-balance sheet partnership or any similar off-balance
sheet arrangement relating to any transaction or relationship between or among the Company, on one hand, and any unaffiliated Person,
on the other hand.

(d)         Except
as otherwise set forth on Schedule 3.04(d) and subject to the reserve set forth on the Latest Balance Sheet, the Company’s
accounts receivable (the “Receivables”) reflected on the Latest Balance Sheet, and all of the Receivables arising
since the date of the Latest Balance Sheet, arose from bona fide transactions in the ordinary course of business and represent enforceable
obligations of the Company, and the goods and/or services involved have been sold, delivered and/or performed to the account obligors,
and no further goods are required to be provided, no further services are required to be rendered to complete the sales and fully render
the services and, no Receivables are subject to any written contest, claim or right of setoff or counterclaim relating to the amount
or validity thereof. To the Company’s Knowledge, there is no fact or circumstance to indicate that the collection of accounts receivable
will be materially different than what has historically been customary for the Company and the business. Except as otherwise set forth
Schedule 3.04(d), no such Receivable has been assigned or pledged to any Person.

(e)         The
inventory of the Company (whether raw materials, work-in-process, or finished goods) is in good and usable condition, merchantable and
fit for the purpose for which it was procured or manufactured, subject only to the reserve for obsolescence included in the Latest Balance
Sheet, as adjusted for the passage of time through the Closing Date in accordance with GAAP and the past custom and practice of the Company.
All of the inventory is valued on the books and records of the Company and in the Financial Statements at the lower of cost or market.
All inventory is accounted for using the “first-in, first-out” basis of accounting in accordance with GAAP. Except as reserved
on the Financial Statements or set forth on Schedule 3.04(e), all of the raw materials and work-in-process inventory of the Company
can reasonably be expected to be consumed in the ordinary course of business. Except as reserved in the Financial Statements, none of
the inventory is obsolete, slow moving, has been consigned to others or is on consignment from or owned by others. Since the date of
the Latest Balance Sheet, no inventory has been sold or disposed of except through sales or disposals in the ordinary course of business.
The quantities of each item of inventory (whether raw materials, work-in-process, or finished goods) are not excessive, but are reasonable
in the present circumstances of the Company. All of the inventory of the Company is identified on and is located at the Leased Real Property.

(f)          The
Company has not entered into any transaction involving the use of a special purpose entity for any off balance sheet activity.

3.05       Absence
of Certain Developments. Except as set forth on the Schedule 3.05, since December 31, 2020, the Company has:

(a)         conducted
its business in the ordinary course in all material respects of business

(b)         not
mortgaged, pledged or otherwise imposed any Liens on any material portion of its property or assets (whether tangible or intangible),
except Permitted Liens;

    	 	11	 

    	 

    

(c)         not
sold, assigned, exchanged, transferred, leased, subleased, or otherwise disposed of any material portion of its Registrations or any
of its property or assets, except in the ordinary course of business;

(d)         not
(i) issued, sold, disposed or otherwise transferred any Company Securities or warrants, options or other rights to acquire Company Securities,
or any bonds or debt securities or any equity appreciation rights, phantom units or profit participation rights in respect of its equity
securities or (ii) granted, or entered into any Contract to grant, any options, warrants, puts, calls, subscriptions, rights, claims,
commitments or other rights of any character relating to the issuance, sale, purchase, redemption, conversion, exchange, registration,
voting or transfer of any Company Securities;

(e)         not
amended any of its organizational or governing documents;

(f)          not
suffered any material loss, damage or destruction to, or any material interruption in the use of, any of its properties or assets;

(g)          not
acquired or agreed to acquire any business or Person or any business organization or division thereof, or acquired any material assets,
other than the acquisition of inventory or other assets in the ordinary course of business;

(h)          not
declared, set aside, or paid any dividend or distribution with respect to its equity securities or repurchased or redeemed any of its
equity securities;

(i)          not
amended, terminated, accelerated, modified, or cancelled (or had a party accelerate, terminate, modify, or cancel) any Material Contract
required to be listed on Schedule 3.08(i);

(j)          not
cancelled, compromised, waived, or released any right or claim (or series of related rights and claims) involving more than $50,000;

(k)          not
made any capital expenditures in excess of $50,000 in the aggregate or commitments therefor, except for such capital expenditures or
commitments that are reflected in the Financial Statements, or deferred the making of any capital expenditures contemplated by the Financial
Statements;

(l)          (i)
other than commissions, bonuses and salary or wage increases paid or granted in the ordinary course of business consistent with past
practices but not more than 3%, not granted, communicated, announced or committed to any actual or planned cash incentive awards, bonuses
or similar compensation or any increase in the salaries, bonuses, or other compensation payable by the Company to any of its directors,
managers, officers, employees or individual service providers, (ii) not established, adopted, amended, terminated or increased the benefits
under any Plans or otherwise, other than amendments required by applicable Law, or (iii) not taken any action to accelerate any
payment or benefit, or the funding of any payment or benefit, payable or to become payable to any of its directors, managers, officers,
employees or other service providers; (iv) not granted any severance or termination pay to, or entered into or materially amended any
employment, severance or other Contract with any of its shareholders, directors, officers, employees, agents or independent contractors;
or (v) not entered into or materially amended any collective bargaining agreement, labor contract, or other Contract with any labor organization
or union;

    	 	12	 

    	 

    

(m)          not
effectuated a “plant closing” or “mass layoff” (as those terms are defined under the WARN Act) affecting in whole
or in part any site of employment, facility, operating unit or employees

(n)          not
made any loan to, or entered into any Contract or other transaction involving the payment or provision of money (other than a transaction
relating to the payment of base compensation, annual bonuses and health and welfare benefits) with, any of their respective shareholders,
directors, officers or employees;

(o)          not
hired or terminated the employment of any director, manager, officer, employee, or individual service provider whose total annual compensation
opportunity exceeds $100,000;

(p)          not
commenced or settled any Proceeding in excess of $50,000;

(q)          except
as required by GAAP or by applicable Law, not changed any of its accounting principles or practices or revalued, wrote up, wrote down
or wrote off the book value of any material asset;

(r)          not
(i) made, changed, revoked or rescinded any material Tax election, (ii) adopted or changed any Tax accounting period, (iii) adopted or
changed any method of Tax accounting, (iv) amended any Tax Return, or (v) entered into any closing agreement or settled any Tax claim,
audit or assessment, or surrendered any right to claim a Tax refund, offset or other reduction in Tax Liability;

(s)          not
experienced any damage, destruction, or loss of any of its assets or properties involving more than $50,000 in the aggregate (whether
or not covered by insurance);

(t)          not
engaged in any merger, consolidation, reorganization, reclassification, liquidation, dissolution or similar transaction or filed a petition
in bankruptcy under any provision of federal or state bankruptcy Law or consented to the filing of any bankruptcy petition against it
under any similar Law;

(u)          not
(i) created, incurred, assumed or otherwise become liable with respect to, or agreed to create, incur, assume or otherwise become liable
with respect to, any Indebtedness or capital expenditure, other than those created, incurred, assumed or granted in the ordinary course
of business in amounts that do not exceed $50,000 or (ii) imposed or granted any Lien upon any of the assets of the Company other than
Permitted Liens;

(v)          not
sold, transferred, licensed, sublicensed or otherwise encumbered or disposed of any Intellectual Property, amended or modified in any
respect any existing Contracts or rights with respect to any Intellectual Property, disclosed to any Person (other Persons bound by confidentiality
and non-disclosure obligations), or allowed to fall into the public domain, any trade secrets or confidential information, or abandoned
or permitted to lapse any Intellectual Property;

    	 	13	 

    	 

    

(w)          not
made any loan to any third party other than trade payables in the ordinary course of business;

(x)          not
undertaken any revaluation, in any material respect, of any of its material assets or waived, released or assigned any material rights
or claims, in each case excluding any writing-off or discounting of notes, accounts receivable or other assets in the ordinary course
of business consistent with past practice and that is not material, individually or in the aggregate; and

(y)          not
authorized, committed to do, or communicated intent to do any of the foregoing.

3.06       COVID-19
Pandemic; CARES Act and PPP Loans. 

(a)         Since
the announcement of an official order by Governmental Bodies related to the COVID-19 Pandemic, the Company has complied, in all material
respects, with all applicable Law relating to COVID-19, including those relating to (i) shelter-in-place and quarantine orders, (ii)
the maintenance of safe and acceptable working conditions, including by making disclosures regarding positive cases of COVID-19 among
employees or service providers of the Company, (iii) employee benefits, privacy, or labor and employment, including with respect to the
furlough or termination of employees or the reduction or modification of compensation or employee benefits, if any, and (iv) the Families
First Act.

(b)         The
Company has complied with the CARES Act and has no plans to undertake any action in the future that would cause any violation thereof.
Except for the PPP Loan, the Company does not have any liabilities, obligations, and indebtedness and has not applied for or received
an Economic Injury Disaster Relief Loan (“EIDL”) from the Small Business Administration (“SBA”)
or a Paycheck Protection Program loan. The Company has not (x) claimed any employee retention tax credit available under the CARES Act,
or (y) deferred any payment of payroll taxes in accordance with the CARES Act. The Company received a $10,000 Targeted EIDL Advance grant
but does not have any liabilities, obligations, or indebtedness owing with respect thereto.

(c)         The
Company has not received any payments under Provider Relief Fund Act or other grants from U.S. Department of Health & Human Services
pursuant to the CARES Act.

(d)         In
submitting all documentation with respect to, and accepting the proceeds of the PPP Loan, the Company has provided complete and accurate
information and has complied with all of the requirements of the CARES Act, including the eligibility and certification requirements
for the PPP Loan. The Company has not used any proceeds from its PPP Loan for any purpose prohibited by the CARES Act.

3.07       Properties.

(a)         The
assets, rights, personnel and properties owned, leased, employed or licensed by the Company constitute all of the assets, rights, personnel
and properties necessary to operate and otherwise used in, or useable in, the Company’s business in all material respects as currently
conducted by the Company .

    	 	14	 

    	 

    

(b)         Except
as set forth on Schedule 3.07(b)(i), the Company owns good and marketable title to, or holds pursuant to valid and enforceable
leases, all of the tangible personal property shown to be owned or leased by it on the Latest Balance Sheet and all tangible personal
property acquired since the date of the Latest Balance Sheet, in each case free and clear of all Liens (other than Permitted Liens).
Except as otherwise set forth on Schedule 3.07(b)(ii), the Company’s equipment, furniture, machinery, vehicles, structures,
fixtures, improvements to real property and other tangible property (collectively, the “Assets”) (i) are in good working
order, operating condition and state of repair, except for ordinary wear and tear and except for such Assets as shall have been taken
out of service on a temporary basis for repairs or replacement in the ordinary course of business, (ii) are fit for the use by the Company
in the ordinary course of business, (iii) are free of any structural defects (whether patent or, to the Company’s Knowledge, latent),
(iv) have been maintained in accordance with normal industry practices and in a commercially reasonable manner in all material respects
and (v) include, together with the Leased Real Property, all assets and properties used in the business of the Company as presently conducted.

(c)         The
real property demised by the leases described on Schedule 3.07(c) (the “Leased Real Property” and such
leases, the “Leases”) constitutes all of the leasehold or subleasehold estates and rights to use or occupy any land,
buildings, structures, improvements, fixtures or other interest in real property used or occupied in the Company’s business. Schedule
3.07(c) sets forth the address of each Leased Real Property, and a true and complete list of all Leases (including all amendments,
extensions and renewals with respect thereto) for each such Leased Real Property. The Leases are legal, valid, binding, enforceable and
in full force and effect, and the Company holds a valid and existing leasehold interest under each such Lease. The Company has made available
to Purchaser true, correct and complete copies of each of the Leases described on Schedule 3.07(c), in each case as is in effect
as of the date hereof. Neither the Company nor, to the Company’s Knowledge, any other party to any Lease is in material breach
or default under any such Lease. The Company has not subleased, licensed or otherwise granted any Person the right to use or occupy any
Leased Real Property or any portion thereof.

(d)         The
Leased Real Property comprises all of the real property used in the Company’s business as currently conducted.

(e)         The
Company does not own any real property.

3.08       Tax
Matters. Except as set forth on Schedule 3.08:

(a)         The
Company has properly and timely filed, or caused to be filed, all Tax Returns that were required to be filed by it, and all such Tax
Returns are true, correct, and complete in all material respects and have been prepared in compliance with all applicable Law. The Company
currently is not the beneficiary of any extension of time within which to file any Tax Return. There are no Liens for Taxes (other than
Taxes not yet due and payable) upon any of the assets of the Company.

(b)         The
Company has timely paid all Taxes due and payable (whether or not shown as due and payable on any Tax Return) and has withheld and timely
paid over to the appropriate Governmental Entity or other taxing authority all Taxes that it was required to withhold from amounts paid
or owing to any employee, agent, independent contractor or other third party and has complied with all reporting requirements in connection
with amounts paid to any such Person.

    	 	15	 

    	 

    

(c)         The
Company has not waived any statute of limitations for the period of assessment or collection of any Taxes or agreed to any extension
of time for filing any Tax Return or with respect to any Tax assessment, prior Tax reporting period or deficiency that has not yet been
either paid or resolved, which waiver or extension is currently in effect. No adjustment relating to any Tax Return filed by the Company
has ever been proposed in writing by any Governmental Entity for the last five (5) taxable years.

(d)         No
audits, examinations, or administrative or judicial Proceedings are currently being conducted or have been threatened in writing with
respect to Taxes of the Company. The Company has not received from any federal, state, local, or non-U.S. taxing authority (including
jurisdictions where the Company has not filed Tax Returns) any written (i) notice indicating an intent to open an audit or other review,
(ii) request for information related to Tax matters, or (iii) notice of deficiency or proposed adjustment for any amount of Tax proposed,
asserted, or assessed by any taxing authority against the Company.

(e)         The
Company is not a party to, or participated in, any “reportable transaction” as defined in Code Section 6707A(c)(1) and
Treasury Regulations Section 1.6011-4(b) or any analogous provision of state, local or foreign Law.

(f)         The
Company has not entered into any closing agreement with any Governmental Entity, including, but not limited to, a closing agreement pursuant
to Code Section 7121, with regard to any Tax Liability of the Company.

(g)         The
Company is not a party to, or bound by, or has any obligation or potential Liability under, any Tax allocation, sharing or indemnity
agreement or any other agreement or practice of a similar nature with respect to any amount of Taxes (other than any credit or other
commercial agreement entered into in the ordinary course of business, the principal purpose of which does not relate to Tax).

(h)         No
Governmental Entity in any state, territory or jurisdiction (whether foreign or domestic) where the Company does not file Tax Returns
has made a written claim that the Company is required to file Tax Returns or is otherwise subject to Tax in such state, territory or
jurisdiction.

(i)         The
Company (i) is not a member of any affiliated, consolidated, combined, unitary or other group, or has been included or required to be
included in any Tax Return related to any such group or (ii) has no Liability for the Taxes of any Person under Treasury Regulations
Section 1.1502-6 (or any similar provision of state, local, or foreign Law), as a transferee or successor, by contract (other than
any credit or other commercial agreement entered into in the ordinary course of business, the principal purpose of which does not relate
to Tax) or other provision of applicable Law.

(j)         The
Company is not subject to Tax or required to file an income Tax Return in any country (other than the United States) by virtue of having
a permanent establishment or other place of business in such country.

    	 	16	 

    	 

    

(k)         No
power of attorney has been granted by or with respect to the Company with respect to any matter relating to Taxes that has not been revoked
or cancelled prior to the Closing.

(l)         The
Company has not agreed, or are otherwise obligated, to reimburse, indemnify, or “gross up” any employee or contractor for
any Taxes (including any Taxes imposed under Code Sections 409A or 4999). The Company is not a party to any agreement, contract, arrangement
or plan that has resulted or could result, separately or in the aggregate, in the payment of any “excess parachute payment”
within the meaning of Code Section 280G (or any corresponding provision of state, local, or non-U.S. Tax law).

(m)         The
Company has not distributed stock of another Person, or has had its stock distributed by another Person, in a transaction that was purported
or intended to be governed in whole or in part by Code Sections 355 or 361 of the Code.

(n)         The
Company has properly (i) collected and remitted sales, value added and similar Taxes with respect to sales or leases made to or services
provided to, its customers, and (ii), for all sales, leases or services that are exempt from sales, value added and similar Taxes and
that were made without charging or remitting sales, value added or similar Taxes, received and retained any appropriate tax exemption
certificates and other documentation qualifying such sale as exempt.

(o)         The
Company will not be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable
period (or portion thereof) ending after the Closing Date as a result of any: (i) change in method of accounting for a taxable period
ending on or prior to the Closing Date; (ii) use of an improper method of accounting for a taxable period ending on or prior to the Closing
Date; (iii) “closing agreement” as described in Code Section 7121 (or any corresponding or similar provision of state, local,
or non-U.S. income Tax law) executed on or prior to the Closing Date; (iv) installment sale or open transaction disposition made on or
prior to the Closing Date; (v) prepaid amount or deferred revenue received or accrued on or prior to the Closing Date; or (vi) election
under Code Section 108(i). The Company does not use, and has not used, the cash receipts and disbursements method of accounting for income
Tax purposes. The Company has not adopted as a method of accounting, or otherwise accounted for any advance payment or prepaid amount
under (i) the “deferral method” of accounting described in Rev. Proc. 2004-34, 2004-22 IRB 991 (or any similar method under
state, local or non-U.S. Law) or (ii) the method described in Code Section 451(c) (or any similar method under state, local or non-U.S.
Law).

(p)         The
Company has not elected to defer the payment of any “applicable employment taxes” (as defined in Section 2302(d)(1) of the
CARES Act) pursuant to Section 2302 of the CARES Act and the Company has not claimed any “employee retention credit” pursuant
to Section 2301 of the CARES Act.

3.09       Contracts
and Commitments.

(a)         Schedule
3.09(a) contains a list of the following contracts to which the Company is a party or is otherwise bound (all such contracts required
to be listed on Schedule 3.09(a), collectively, “Material Contracts”):

    	 	17	 

    	 

    

  (i)       contract
or agreement with any staffing agent, employee leasing agency, or other provider of contingent workers to the Company;

  (ii)       contract,
agreement, instrument or indenture relating to the borrowing of money or incurrence, guaranty or assumption of Indebtedness or to mortgaging,
pledging or otherwise placing a Lien, except for Permitted Liens, on any portion of the assets of the Company;

  (iii)       contract
under which the Company has made an advance or loan to any other Person (other than a routine advance made to an employee of the Company
in the ordinary course of business);

  (iv)       contract,
lease or agreement under which it is lessee of, or holds or operates any personal property owned by any other party for which the annual
rental exceeds $50,000 or has an unexpired term in excess of one (1) year;

  (v)       contract
that requires capital expenditures in excess of $50,000 following the Closing Date;

  (vi)       contract
for the sale or purchase of fixed assets or real estate having a value individually, with respect to all sales or purchases thereunder,
in excess of $100,000, other than Contracts in which the applicable acquisition or disposition has been consummated and there are no
material liabilities remaining thereunder;

  (vii)       contract
that requires the Company to purchase its total requirements of any product or service from a third Person

  (viii)       contract
or agreement relating to any acquisition of another Person, any equity interests of another Person or a material portion of the business
or assets of another Person by the Company within the last five (5) years, in each case, other than those under which all liabilities,
obligations and responsibilities of the Company have (1) expired or been fully discharged or performed or (2) been assigned to another
Person that is not the Company;

  (ix)       contract
containing earn-out, deferred or contingent payment obligations on the part of the Company;

  (x)       contract
or agreement relating to the licensing or use of any third party Intellectual Property (other than non-exclusive licenses for commercially
available, unmodified, off-the-shelf software licensed for aggregate fees of less than $10,000);

 (xi)       contract
or agreement relating to (a) the licensing of, or use by a third party of, any Intellectual Property owned or controlled by the Company
(other than nonexclusive licenses to customers granted in the ordinary course of business), or (b) the development of Intellectual Property
for the Company;

 (xii)       Affiliate
Agreement;

    	 	18	 

    	 

    

 (xiii)       contract
or agreement (other than confidentiality agreements entered into in the ordinary course of business) which places any material (1) restriction
or limitation on the Company from freely engaging in any line of business or otherwise competes with any Person, (2) restriction or limitation
in any manner the location the Company may operate or otherwise conduct business, (3) prohibition or limitation in any manner the right
or ability of the Company to make, sell or distribute any products or services to or purchase any products or services from any Person,
or (4) restriction or limitation in any manner the right or ability of the Company to solicit, hire or employ any Person;

 (xiv)       except
for nondisclosure agreements entered into in connection with the sale process of the Company, contract restricting or limiting in any
manner the right or ability of any third party to (1) compete with the Company or (2) solicit, hire or employ any employee of the Company;

 (xv)       contract
or agreement with a Material Supplier;

 (xvi)       contract
or agreement with a Material Customer.

 (xvii)       Government
Contract;

 (xviii)       contract
or agreement that is a settlement, conciliation or similar agreement entered into during the past five (5) years with any Governmental
Entity or third party involving the payment or receipt in excess of $50,000, including any contract related to any matter that, if made
available to and known by the public, would reasonably be expected to result in public disgrace or disrepute, contempt, scandal, ridicule
or substantial harm to the reputation or public standing of the Company;

 (xix)       contract
or agreement which the Company has (1) granted “most favored nation” or similar pricing terms, (2) agreed to sell or provide
a minimum quantity of goods or services to, or agreed to sell or provide goods or services exclusively to, a certain Person, (3) granted
any right of first refusal, right of first offer, right of first negotiation or similar right, or that could otherwise require the disposition
of any assets or line of business of the Company, or (4) granted marketing or distribution rights relating to any products or territory;

 (xx)       collective
bargaining agreements or other agreements or contracts with any union or labor organization;

 (xxi)       any
employment, consulting, severance or compensation agreements or contracts (or similar arrangements) with employees, independent contractors
or consultants which obligate the Company to pay more than $100,000 in any one (1) year period; 

 (xxii)       contract
for the employment or severance of any current or former employee, director or other service provider of the Company and pursuant to
which the Company has, or could reasonably be expected to have, any actual or contingent Liability or obligation to provide compensation
or benefits in consideration for past, present or future services;

 (xxiii)       contract
which provides the counterparty (other than the Company) with a power of attorney to bind the Company;

    	 	19	 

    	 

    

 (xxiv)       contract
that imposes any confidentiality, standstill or similar obligation on the Company, except for those entered into in the ordinary course
of business or in connection with the sale process of the Company or in connection with acquisitions of assets pursued by the Company
in the ordinary course of business;

 (xxv)       any
partnership, joint venture or similar contract or agreement or any contract or agreement relating to ownership of or investment in any
other Person; or

 (xxvi)       contract
not otherwise listed on Schedule 3.09(a) entered into outside the ordinary course of business for consideration in excess of $100,000.

(b)        True,
correct and complete copies of all Material Contracts, including any amendments, waivers, or modifications thereto, have been made
available to Purchaser. A true, correct and complete summary of the material terms of each non-written Material Contract has been made
available to Purchaser.

(c)        Each
Material Contract is valid, binding, enforceable and in full force and effect, except as enforceability may be limited by bankruptcy
Laws, other similar Laws affecting creditors’ rights and general principles of equity affecting the availability of specific performance
and other equitable remedies, and neither the Company nor, to the Company’s Knowledge, any other Person party to any such Material
Contract is in, or is alleged in writing to be in, material breach of or default under any such Material Contract. The Company has not
received any written or, to the Company’s Knowledge, oral notice of non-renewal or termination of any Material Contract. No event
has occurred, and no condition exists, that, after notice or lapse of time or both, would constitute a material violation, breach or
event of default on the part of the Company under any Material Contract, or to the Company’s Knowledge, any other party thereto.
No party to any Material Contract has exercised any termination rights with respect thereto, and no such party has given any written
or, to the Company’s Knowledge, oral notice of any significant dispute with respect to any Material Contract.

3.10       Intellectual
Property.

(a)         Schedule
3.10(a) contains a complete and accurate list of (i) patents and patent applications owned by the Company, (ii) registered trademarks
and applications for registrations of trademarks owned by the Company, (iii) registered copyrights and applications for registrations
of copyrights owned by the Company, (iv) domain names owned by the Company, (v) material unregistered trademarks owned by the Company,
and (vi) Software owned by the Company (collectively, together with all other Intellectual Property owned or purported to be owned by
the Company, the “Company Intellectual Property”). The Company exclusively owns all right, title and interest in and
to each item of Company Intellectual Property, including the Company Intellectual Property set forth on the Schedule 3.10(a) and
without the payment of any royalties or other amounts to any other Person, and has a valid and enforceable right or license to use all
other Intellectual Property used in the operation of the business of the Company as currently conducted.

(b)         The
Company is not in breach of any of the terms of any third party license agreement in any way related to or affecting the Company-owned
software.

    	 	20	 

    	 

    

(c)         Unless
otherwise set forth on Schedule 3.10(c), (i) all rights to the Company Intellectual Property are valid, subsisting, in full force
and effect, and the registered and applied for Company Intellectual Property are held of record in the name of the Company and are not
the subject of any proceeding challenging any scope, effect or validity and are in material compliance with formal legal requirements
(including, as applicable, the payment of filing, examination and maintenance fees, inventor declarations, proofs of working or use,
timely post-registration filing of affidavits of use and incontestability and renewal applications), (ii) the Company has not received
any written notice with respect to any alleged infringement, misappropriation or violation of any Intellectual Property of any Person,
(iii) no written claim has been asserted against the Company for infringement, misappropriation or violation of any Intellectual Property
of any Person and no such written claim with respect to infringement, misappropriation or violation of any Intellectual Property of any
Person is pending or, to the Company’s knowledge, threatened (including any unsolicited demand or request from a third party to
license any Intellectual Property), (iv) neither the Company nor the conduct of its business, infringes, misappropriates or violates,
or has in the five (5) years prior to the date hereof has infringed, misappropriated or violated, the Intellectual Property of any Person,
(v) the Company has not made any written claim or sent any written notice at any time since January 1, 2017 that a Person is infringing,
misappropriating or violating the Company Intellectual Property, (vi) to the Company’s Knowledge, no Person is infringing, misappropriating
or violating any Company Intellectual Property, and (vii) no judgment, holding, decision, order or decree of any court or other Governmental
Entity, and no agreement, consent or stipulation exists which would limit the use or enjoyment by the Company of any right in any Company
Intellectual Property.

(d)         No
current or former Affiliate, partner, director, stockholder, officer, member, manager, employee, consultant or contractor of the Company
will, after giving effect to the transactions contemplated hereby, own, license or retain any of the Company Intellectual Property.

(e)         The
Company has taken commercially reasonable measures to protect the Company Intellectual Property and has taken commercially reasonable
steps to maintain the confidentiality of the trade secrets and other material confidential information of the Company.  

(f)         Neither
the execution, delivery or performance of this Agreement, nor the consummation of the transactions contemplated hereunder, will result
in the loss or impairment of or payment of any additional amounts with respect to, nor require the consent of any other Person in respect
of, Purchaser’s right to own or use any Company Intellectual Property or breach any agreement related to Intellectual Property
used by the Company.

(g)         The
Company maintains policies and procedures regarding data security, data privacy, collection of data, data transfer, and the use of data,
written agreements in place, and safeguards in place to protect Personal Data and confidential information in the Company’s possession
or control from unauthorized access by third Persons and to ensure that the operation of the business of the Company (including with
respect to employee matters) is in material compliance with all applicable Data Security Requirements in all material respects. The Company
and the operation of its business are and have been in compliance with Data Security Requirements. Neither the execution and delivery
of this Agreement nor the consummation of the Closing will result in a breach or violation of, or constitute a default under, any Data
Security Requirement. The Company has not experienced any breach of security, phishing incident, ransomware or malware attack or other
incident in which confidential or sensitive information, payment card data, personally identifiable information or other protected information
relating to individuals was or may have been accessed, disclosed or exfiltrated in an unauthorized manner (“Security Incident”),
and the Company has not received any written notices, complaints or Claims from any Person or been the subject of any proceeding or investigation
with respect thereto.

    	 	21	 

    	 

    

(h)         The
Company has made transparent privacy notices available to all individuals about whom the Company Processes or directs the Processing
of Personal Data, if required by, and in conformance with, the Data Security Requirements.

(i)         The
Company uses commercially reasonable efforts to protect the confidentiality, integrity and security of the Systems used in the operation
of the business of the Company and to prevent any unauthorized use, access, interruption or modification of the Systems. All Systems
owned or controlled by, or used for the Company are (i) free from any material defect, bug, virus, or programming, design, or documentation
error or corruptant or other software routines or hardware components that permit unauthorized access or the unauthorized disablement
or erasure of such Systems, (ii) in sufficiently good working condition to effectively perform all information technology operations
and include a sufficient number of license seats for all third-party licensed software and are functional, in each case as necessary
for the operation of the business of the Company as currently conducted, and (iii) sufficient for the current needs of the Company. There
have been no material failures, breakdowns, outages, continued substandard performance, or other adverse events affecting any such Systems
in the five (5) years prior to the date hereof. The Company maintains commercially reasonable disaster recovery and business continuity
plans, procedures and facilities in connection with the operation of their business, act in compliance therewith and have taken commercially
reasonable steps to test such plans and procedures on a periodic basis, and such plans and procedures have been proven effective upon
such testing in all material respects.

3.11       Litigation.
Except as set forth on Schedule 3.11, there are no, and during the past five (5) years there has been no, Proceedings pending or, to
the Company’s Knowledge, threatened against or affecting the Company (and, to the Company’s Knowledge, no such event has
occurred or circumstance exists that could give rise or serve as a basis for any such Proceeding), at law or in equity, or before any
arbitrator or before or by any Governmental Entity. Except as set forth on Schedule 3.11, the Company is not subject to (i) any outstanding
judgment, order, injunction, decision, arbitral award or decree of any court or other Governmental Entity or (ii) any settlement agreement
with any present or former employee or Governmental Entity.

3.12       Employee
Benefit Plans.

(a)         Schedule
3.12(a) sets forth a complete and correct list of each “employee benefit plan” as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), whether or not subject to ERISA, and each pension,
savings, profit sharing, retirement, deferred compensation, insurance, sick leave, short and long term disability, medical, death benefit,
equity or equity-based, profits interest, incentive, incentive compensation, bonus, commission deferred compensation, severance, termination,
retention, change of control, health, dental, welfare, fringe, vacation pay, paid time off, or other benefit or compensation plan, program,
contract, policy, agreement or arrangement, whether funded or unfunded, whether qualified or nonqualified, whether fully insured or self-insured,
whether oral or written, in each case (i) that is established, maintained, operated, administered, funded sponsored or contributed or
required to be contributed to by the Company or any of its ERISA Affiliates, (ii) that covers current or former employees, directors,

    	 	22	 

    	 

    

officers,
consultants or independent contractors of the Company, or (iii) under or with respect to which the Company or any of its ERISA Affiliates
has any current or contingent Liability or obligation (each, a “Plan” and collectively, the “Plans”).
With respect to each Plan, the Company has provided Purchaser copies of (to the extent applicable) or if no written document exists,
a detailed written description of such Plan: (i) the current Plan and all subsequent amendments thereto; (ii) if applicable, the most
recent summary plan description provided to participants and any summary of material modification and other similar material written
communications to the employees of the Company concerning the benefits provided under each Plan; (iii) the Form 5500 annual report and
all attachments, if required by applicable Law, for the most recent three plan years; (iv) with respect to any Plan intended to be qualified
under Section 401(a) of the Code, the most recent determination or opinion letter received from the Internal Revenue Service; (v) all
contracts and agreements (and any amendments thereto) relating to the Plans; (vi) copy of the most recent nondiscrimination testing for
each Plan, if applicable, for the most recent three plan years; and (vii) any non-routine correspondence with any Governmental Entity,
including the Internal Revenue Service and U.S. Department of Labor.

(b)         Each
Plan that is intended to be qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”)
is so qualified, has received a current favorable determination letter from the Internal Revenue Service or may rely upon a current opinion
or advisory letter from the Internal Revenue Service, and nothing has occurred that could adversely affect the qualification of such
Plan. The Plans have been established, maintained, funded, and administered and comply in form and in operation in all material respects
with their terms and with the requirements of the Code and ERISA and other applicable Laws. All contributions, distributions, reimbursements,
and premium payments with respect to each Plan which are due on or before the Closing Date in respect of current or former employees
of the Company have been timely made in accordance with the terms of each Plan and in material compliance with the requirements of ERISA
and the Code and the terms of each Plan, and all contributions, distributions, reimbursements, and premium payments not yet due for such
period have been properly accrued. Each Plan that is a “group health plan” (as such term is defined in Section 5000(b)(1)
of the Code) has been administered and operated in all material respects compliance with the applicable requirements of Section 601,
et seq. of ERISA, Section 4980B(b) of the Code, the Health Insurance Portability and Accountability Act of 1986, as amended, Section
4980D of the Code and the Patient Protection and Affordable Care Act of 2010, as amended (the “ACA”) and the Company has
not incurred and is not subject to any penalty or Tax under the ACA (including with respect to the reporting requirements under Sections
6055 and 6056 of the Code, as applicable) or Sections 4980B, 4980H or 4980D of the Code. The Company has maintained all records as reasonably
necessary to document and demonstrate such compliance under the ACA. All required reports and descriptions (including, without limitation,
Form 5500 annual reports, Forms 1094-C and 1095-C, summary annual reports, and summary plan descriptions) with respect to each Plan have
been properly and timely filed and/or distributed to participants and other applicable individuals in accordance with the requirements
of ERISA and the Code.

    	 	23	 

    	 

    

(c)         No
Plan is and neither the Company nor any ERISA Affiliates maintains, sponsors, operates, administers, contributes to, has any obligation
to contribute to, or has any current or contingent Liability under or with respect to, (i) any “multiemployer plan” (as defined
in Section 3(37) of ERISA), (ii) any “pension plan” (as defined in Section 3(2) of ERISA) that is or was subject
to Sections 412 or 430 of the Code, Section 302 of ERISA or Title IV of ERISA, (iii) any “multiple employer plan” within
the meaning of Section 210 of ERISA or Section 413(c) of the Code or (iv) any “multiple employer welfare arrangement”
as defined in Section 3(40) of ERISA. There is no Lien pursuant to ERISA Sections 303(k) or 4068 or Code Sections 412 or 430(k)
in favor of, or enforceable by the Pension Benefit Guaranty Corporation or any other entity with respect to any of the assets of the
Company. No cash or bond or other amount is payable by the Company or any of its ERISA Affiliate to the Pension Benefit Guaranty Corporation
pursuant to Section 4062(e) of ERISA. With respect to any Plan that is a multiemployer plan, neither the Company nor any ERISA Affiliate
has withdrawn or partially withdrawn or received any notice or demand for withdrawal Liability with respect to such Plan. Except as set
forth on Schedule 3.12(c), no Plan provides and the Company has no obligation or Liability for post-employment or post-service
health or other welfare benefits except as required by Section 4980B of the Code and Part 6 of Subtitle B of Title I of ERISA (and
for which the covered Person pays the full cost of coverage), and the Company has not promised to provide any such benefits. The Company
has no current or contingent Liability or obligation as a consequence of at any time being considered a single employer with any other
Person under Section 414 of the Code or Section 4001(b) of ERISA.

(d)         No
Proceeding with respect to any Plan (other than routine claims for benefits) is pending or, to the Company’s Knowledge, threatened.
There have been no non-exempt prohibited transactions (as defined in Section 406 of ERISA or Section 4975 of the Code) or breaches
of fiduciary duty (as determined under ERISA) with respect to any Plan.

(e)         There
is no Proceeding currently being conducted by the U.S. Department of Labor, the Pension Benefit Guaranty Corporation, the Internal Revenue
Service or any other Governmental Entity, having jurisdiction over a Plan.

(f)         No
Plan is currently under investigation, audit or review by any Governmental Entity nor subject to any current litigation, and to the Company’s
Knowledge, no such action is currently threatened.

(g)         Each
Plan subject to Section 409A of the Code has complied in form and operation with the requirements of Section 409A of the Code as in effect
from time to time.

(h)         Each
contract, arrangement, or Plan of the Company that is a “nonqualified deferred compensation plan” (as defined for purposes
of Code Section 409A(d)(1)) has been maintained in documentary and operational compliance with Code Section 409A and the applicable
guidance issued thereunder in all material respects.

(i)         Except
as required by any Law, no provision or condition exists that would prevent the Company or Purchaser from terminating or amending any
Plan at any time for any reason.

(j)         The
Company has, for purposes of each Plan, correctly classified those individuals performing services for the Company or the respective
ERISA Affiliate as common law employees, leased employees, independent contractors or agents, as applicable.

    	 	24	 

    	 

    

(k)         Nothing
has occurred with respect to any Plan that has subjected or could subject the Company to a civil action, penalty, surcharge, or Tax under
applicable Law.

(l)       Except
as set forth on Schedule 3.12(l), neither the execution and delivery of this Agreement nor the consummation of the transactions
contemplated, either alone or in combination with any other subsequent events, here  by will: (i) entitle any Person to
any payment, compensation, benefit, forgiveness of Indebtedness, vesting, distribution, severance, retention, change in control or increase
in payments, benefits, or compensation under or with respect to any Plan, (ii) result in any acceleration (of vesting or payment
of benefits or compensation or otherwise) under or with respect to any Plan, or (iii) trigger any obligation to fund any Plan.

3.13       Insurance.

(a)         Schedule
3.12(a) lists each insurance policy maintained by the Company (other than in connection with a Plan) (collectively, the “Insurance
Policies”). The Company has not received written or, to the Company’s Knowledge, oral cancellation, termination, or denial
of coverage with respect to any such Insurance Policy and each such Insurance Policy is in full force and effect and all premiums with
respect thereto covering all periods up to and including the Closing Date have been paid. The Company (i) is not in breach or default
of any Insurance Policy or (ii) has not taken any action or failed to take any action which, with or without notice or the lapse of time
or both, would constitute a breach or default of any Insurance Policy or permit termination or modification of any such Insurance Policy.

(b)         Except
as set forth on Schedule 3.13(b), the Company has not made any claim under any such policy during the four (4) year period prior
to the date of this Agreement in which the Company incurred damages in excess of $10,000 per claim individually (collectively, the “Historical
Claims”). No insurer has, in a written or, to the Company’s Knowledge, oral notice to the Company, permanently denied
any Historical Claim or otherwise threatened in writing to cancel any applicable policy with respect to any Historical Claim. All such
insurance policies provide coverage in amounts and against such risks as are sufficient to comply with Law and as is customary for a
business similar in size and operations to that of the Company.

(c)         All
potential insurance claims in excess of $10,000 per claim individually for matters arising during the four (4) year period prior to the
Closing for which insurance coverage is (or would have been) available have been timely and properly tendered to the respective insurance
carrier by the Company. The Company does not have, and has not had during the past four (4) years, any self-insurance or co-insurance
programs.

3.14       Compliance
with Laws. Except as set forth on Schedule 3.14:

(a)         The
Company possesses all licenses, registrations, permits, certifications, approvals, authorizations, accreditations, qualifications, rights,
privileges and consents from Governmental Entities, in each case required by Governmental Entities, or as otherwise necessary for the
ownership, use, occupancy or operation of all facilities of the Company and the conduct of its business (collectively, “Registrations”),
each of which is listed on Schedule 3.14(a). The Company has been, and at all times during the past four (4) years has

    	 	25	 

    	 

    

been, in compliance
in all material respects with its Registrations, all of which are in full force and effect, and the Company has not received written
or, to the Company’s Knowledge, oral notice that any such Registration will not be renewed upon expiration following the fulfillment
of routine renewal requirements and payment of routine filing fees thereby. For the past four (4) years, the Company has not received
notice of or been a party to or subject of any Proceeding seeking to revoke, suspend or otherwise limit any Registration.

(b)         The
Company is in compliance in all material respects with all applicable Laws. During the past four (4) years, the Company has not (i) received
any written or, to the Company’s Knowledge, oral notice, report, or request with respect to, or been subjected to or asked in writing
to comply with, any audit, investigation, Proceeding, or review with respect to or alleging in writing any non-compliance or involving
any assessment, review or determination of compliance with or the applicability of, any Laws, including by or from any Governmental Entity
or (ii) made any voluntary or involuntary disclosure to a Governmental Entity or conducted any internal investigation or audit concerning
any actual or potential violation or wrongdoing related to any applicable Law.

(c)         Neither
the Company nor, to the Company’s Knowledge, any agent or other representative acting on behalf of the Company, has, at any time,
directly or indirectly: (i) made any payment of cash or other consideration (including payments or discounts to customers or clients
or employees of customers or clients or any government employee or public official) for purposes of doing business with such Persons,
(ii) taken any action, or failed to take any action, in violation of any Laws prohibiting the payment of undisclosed commissions or bonuses,
(iii) made any illegal contribution, gift, bribe, rebate, payoff, commission, promotional allowance, influence payment, kickback, or
other payment or economic benefit or anything of value to any Person, in any country, private or public, regardless of what form, whether
in money, property, or services, (iv) paid, established or maintained any funds or assets that have not been recorded in the books and
records of the Company, (v) aided, abetted, caused (directly or indirectly), participated in, or otherwise conspired with, any Person
to violate the terms of any judgment, sentence, order or decree of any court or Governmental Entity applicable to the Company, or (vi)
violated any Anti-Corruption Laws.

(d)         Neither
the Company nor, to the Company’s Knowledge, any agent or other representative acting on behalf of the Company, is currently, or
has been in the last four (4) years: (i) a Sanctioned Person, (ii) organized or located in, or a resident of, a Sanctioned Country, (iii)
engaging in any dealings or transactions with any Sanctioned Person or in any Sanctioned Country, (iv) engaging in any export, reexport,
transfer or provision of any goods, software, technology, data or service without, or exceeding the scope of, any required or applicable
licenses or authorizations under all applicable Ex-Im Laws, or (v) otherwise in violation of applicable Trade Control Laws.

3.15       Environmental
Matters. Except as set forth on Schedule 3.15:

(a)         The
Company is, and has at all times been, in compliance in all material respects with all Environmental Laws, which compliance includes
and has included obtaining, maintaining and complying with all Registrations required under Environmental Laws for the operation of the
business and the occupancy of the Leased Real Property. The Company has timely applied for renewal of all such Registrations. All such
Registrations are listed in Schedule 3.15.

    	 	26	 

    	 

    

(b)         The
Company has not received any written or, to the Company’s Knowledge, oral notice regarding any violation of, or Liability arising
under, Environmental Laws or relating to Hazardous Materials, and there are no Proceedings pending or, to the Company’s Knowledge,
threatened against the Company, nor is the Company subject to any outstanding judgment, order or decree of any court or other Governmental
Entity, in each case pursuant to Environmental Laws or relating to Hazardous Materials.

(c)         The
Company has not generated, managed, used, transported, stored, treated, released, disposed of or arranged for the disposal, transportation,
handling, storage, or treatment of, or exposed any Person to, any Hazardous Materials, or owned, leased or operated any property contaminated
by any Hazardous Materials, in each case in a manner as would give rise to any liabilities under any Environmental Laws.

(d)         The
Company has not designed, manufactured, sold, marketed or distributed products or other items containing Hazardous Materials, in each
case in a manner as would give rise to any liabilities under any Environmental Laws.

(e)           There
has been no release of Hazardous Substances at, on, under, from or to the Leased Real Property or, to Seller’s knowledge, any other
real property currently or formerly owned or operated by the Company in contravention of Environmental Laws or in a manner that would
reasonably be expected to result in Liability (including, but not limited, investigation or remediation Liability) under any Environmental
Law.

(f)         The
Company has not assumed, undertaken, or otherwise become subject to, any Liability of any other Person, or provided an indemnity with
respect to any Liability, in each case relating to any Environmental Law or Hazardous Materials.

(g)         The
Company has provided Purchaser with copies of any environmental audits, assessments and reports in its possession or control, relating
to the Company or any of its past or current operations, properties or facilities (including the Leased Real Property).

3.16       
Affiliated Transactions . Except as set forth on the Schedule 3.16 and other than pursuant to an employment agreement with
an employee of the Company or any salary or other compensation or benefit under any Plan paid or payable in the ordinary course of business,
no officer, director, manager, equity holder or any other Affiliate of the Company or a Restricted Party (as defined in Section 6.01
below) or any member of any such Person’s immediate family (a) is a party to any agreement, contract, lease, commitment or transaction
with the Company (any such agreement, contract, lease, commitment or transaction required to be set forth on the Schedule 3.16, an “Affiliate
Agreement”), (b) has any direct or indirect ownership interest in any customer or any entity that provides material goods or services
to the Company, (c) owns or leases any of the Company’s assets or properties, (d) is owed any obligation by the Company, or (e)
is indebted to, or owes any obligation to, the Company.

3.17       Labor
and Employment Matters.

(a)         Schedule
3.17(a) sets forth a complete and correct list of the following information with respect to each current employee, independent contractor
and consultant of the Company: (i) name, (ii) title or position held, (iii) status as either employee or independent contractor, (iv)
if an employee, classification as

    	 	27	 

    	 

    

exempt or
non-exempt, (v) base salary or hourly rate (or other rate of compensation), (vi) status as full-time or part-time and (vii) citizenship
status or applicable work visa. Each employee set forth on Schedule 3.17(a) is terminable at-will and the Company’s relationship
with each employee and independent contractor may be terminated without notice and without penalty.

(b)         Except
as set forth on Schedule 3.17(b), (i) there are no, and during the past five (5) years there have not been, any strikes, work
stoppages, walkouts, slowdowns, picketing, hand billing, lockouts, or other material labor disputes or concerted activities pending or,
to the Company’s Knowledge, threatened, against or affecting the Company, (ii) to the Company’s Knowledge, no organizational
effort, campaign, or petition for representation is presently being made or threatened, and has not been threatened during the past five
(5) years, by or on behalf of any employees of the Company, union or other labor organization on behalf of Company employees, (iii) the
Company is not party to or bound by, and has not during the past five (5) years been party to or bound by, any collective bargaining
agreements, contracts, understandings (formal or informal) or other agreements or relationships with any labor union, works council,
or other labor organizations with respect to its employees, nor are any currently being negotiated by the Company, (iv) no employees
of the Company are, and have not during the past five (5) years been, represented by a labor union, works council, or other labor organization
with respect to their employment with the Company, (v) there are not any pending or, to the Company’s Knowledge, threatened during
the past five (5) years against the Company any grievances or Proceedings arising under any collective bargaining agreement or any unfair
labor practice, Proceedings before the National Labor Relations Board or similar Governmental Entity, (vi) the Company is not a party
to or bound by, and has not during the past five (5) years been party to or bound by, an agreement with a union or other labor organization,
and (vii) the Company has not and has not during the past five (5) years implemented any plant closings, mass layoffs or other employee
layoffs that could violate or require notice under the Worker Adjustment and Retraining Notification Act of 1988, as amended (“WARN”)
or any similar Law, and no such actions are currently contemplated, planned or announced. No employee has suffered an “employment
loss” as defined in WARN or similar Law in the past six (6) months.

(c)         (i)
the Company is, and has been for the past five (5) years, in material compliance with all applicable Laws relating to the payment of
wages, minimum wage, and overtime compensation, (ii) during the past five (5) years, the Company has paid all wages, salaries, wage premiums,
bonuses, commissions, separation payments, fees, expense reimbursements and other compensation that has come due and payable to its current
or former employees and independent contractors under applicable Law, contract, or any Plan or policies of the Company, (iii) each employee
of the Company is, and has been for the past five (5) years, properly classified and treated for purposes of applicable employment Laws,
and (iv) each individual who is providing services to the Company and is or was classified and treated as an independent contractor,
consultant, leased employee, or other non-employee service provider is and was properly classified and treated as such under applicable
Law for the past five (5) year period. The Company has complied in all material respects with all applicable employment-related contracts
to which it is party or by which it is bound and, to the Company’s Knowledge, no current or former employee of the Company is in
breach of any employment-related contract between such employee and the Company. To the Company’s Knowledge, no officer, director,
manager, executive, or employee of the Company is party to or bound by any confidentiality,

    	 	28	 

    	 

    

noncompetition,
nonsolicitation, nondisclosure, proprietary rights, or similar agreement that could or will materially restrict or adversely affect such
person in the performance of his or her employment duties and/or services or the ability of the Company to conduct its business or requires
such person to transfer, assign or disclose information concerning his or her work to anyone other than the Company.

(d)         The
Company is, and has been during the past five (5) years, in compliance in all material respects
with all applicable Laws relating to immigration and/or the verification of immigration/employment status. All employees of the Company
are legally authorized to work in the United States, and the Company and its employees have
properly completed I-9 or similar forms, and the Company has retained such forms in accordance with the requirements of applicable Law
for the past five (5) years.

(e)         The
Company is, and has been during the past five (5) years, in compliance in all materials respects
with all applicable Laws relating to occupational safety and health, including the Occupational Safety and Health Act of 1970, as amended,
and any applicable state safety and health Law.

(f)         Except
as disclosed on Schedule 3.17(f), no officer, director,
manager, employee, independent contractor, or consultant of the Company is a party to any agreement with the Company
regarding employment, change in control, bonus upon sale, transition, or other agreement providing severance benefits, other payments,
or the vesting of equity as a result of or upon the consummation of the transactions contemplated by this Agreement.

(g)         The
Company is, and has been during the past five (5) years, in compliance in all material respects
with all applicable Laws relating to employment and employment practices and terms and conditions of employment, including equal employment
opportunity, non-discrimination, non-retaliation, workplace accommodations and employment actions and decisions in all stages of employment
(including hiring, promotion, transfer, demotion, discipline and termination of employment).

(h)         To
the Company’s Knowledge, no officer, executive, key employee or key consultant of the Company (i) has any present intention to
terminate or materially alter the terms or nature of his or her employment or services with the Company, or (ii) is party to or bound
by any confidentiality, non-disclosure, proprietary rights, non-solicitation, non-competition or similar Contract that could materially
restrict such Person in the performance of his or her employment or service duties or the Company in the conduct of the Business.

(i)       There
are no, and during the past five (5) years there have been no, internal reports or internal written or, to the Company’s Knowledge,
oral complaints submitted concerning sexual harassment or conduct of a sexual nature by any employee of the Company.

(j)         Except
for relationships between married employees, there are no, and during the past four (4) years there have been no, consensual or non-consensual
sexual relationships between any legal or beneficial owner, officer or supervisor-level employee of the Company, on the one hand, and
any direct report or other subordinate of any of the foregoing individuals, on the other hand. The Company has not entered into any settlement
or other Contract related to allegations of sexual harassment by any legal or beneficial owner, officer or employee of the Company.

    	 	29	 

    	 

    

3.18       Warranty
Liability and Product Liability.

(a)         Schedule
3.18 sets forth all warranties or other similar arrangements that relate to the contracts or purchase orders (or similar), as applicable,
with the Company’s customers.

(b)         Except
as set forth on the Schedule 3.18, the Company has not made any express warranties or guarantees with respect to the products
sold or services rendered by it. Each product sold or service rendered by the Company has been in conformity in all material respects
with all applicable Law, applicable government and other mandatory requirements, specifications, contractual commitments and all express
and implied warranties and, except as set forth on Schedule 3.18, the Company does not have any liabilities or obligations for
damages in connection therewith. Except for customer claims in the amounts set forth on Schedule 3.18, and for any other customer
claims of less than $5,000 individually, to the Knowledge of the Company, no facts, circumstances or conditions exist which would reasonably
be expected to give rise to any Warranty Liability in excess of $1,000 individually. Set forth in Schedule 3.18 is a true, correct
and complete list of all Contracts between the Company, on the one hand, and customers of the Company, on the other hand, regarding Warranty
Liability that provide warranty coverage to any customer in excess of the Company’s or any of its Subsidiaries’ standard
warranty terms.

(c)         Except
as set forth Schedule 3.18, (i) the Company has no Liability arising from or alleged to arise from any Product Liability in excess
of the amount, if any, reserved for in the Financial Statements (whether or not covered by any insurance policy listed on Schedule
3.12(a)) and (ii) to the Knowledge of the Company, no facts, circumstances or conditions exist which would reasonably be expected
to give rise to any Product Liability. Except as set forth in Schedule 3.18, the Company has not, during the past four (4) years,
been notified in writing (or, to the Company’s Knowledge, orally) of any Product Liability claims. There has not been during the
last four (4) years, and the Company has not considered in the last two (2) years, any product or item recall or post-sale warning by
or on behalf of the Company with respect to any service rendered or product or item assembled, marketed, distributed, installed and/or
sold by the Company.

3.19       Suppliers.
Schedule 3.19 sets forth a list of the ten (10) largest vendors or suppliers of products or services to the Company and sets forth opposite
the name of each supplier the aggregate expenditures of the Company with respect to each such vendor or supplier for the fiscal years
ended June 30, 2020 and June 30, 2021 (“Material Supplier”). Since December 31, 2020, (i) no Material Supplier has notified
the Company in writing or, to the Company’s Knowledge, otherwise indicated that it intends to terminate or materially diminish
its business relationship with the Company, (ii) there have been no material disputes between the Company, on the one hand, and any Material
Supplier, on the other and (iii) no Material Supplier is a sole source of supply of any material goods, materials or services used by
the Company.

3.20       Customers.
Schedule 3.20 sets forth a list of the twenty-five (25) largest customers of the Company and sets forth opposite the name of each customer
the aggregate expenditures of such customer for the Company’s goods and services for the fiscal years ended June 30, 2020 and June
30, 2021 (“Material Customer”). Since December 31, 2020, (i) no Material Customer has notified the Company in writing or,
to the Company’s Knowledge, otherwise indicated that it intends to terminate or materially diminish its business relationship with
the Company and (ii) there have been no material disputes between the Company, on the one hand, and any Material Customer, on the other.
No Material Customer has provided written or, to the Company's Knowledge, oral notice that the Company will incur Losses or obligations
for product returns from sales occurring during the past two (2) years.

    	 	30	 

    	 

    

3.21       Brokerage.
Except with respect to Sperry Mitchell & Company, there are no claims for, and the Company will not have any Liability for, any brokerage
commissions, finders’ fees or similar compensation in connection with the transactions contemplated by this Agreement or any future
sale, restructuring, equity, or debt financing or other similar transaction involving the Company based on any arrangement or agreement
made by or on behalf of the Company for which Purchaser or the Company would be liable following the Closing.

3.22       Bank
Accounts and Powers of Attorney. Schedule 3.22 sets forth (i)
each bank and other financial institution with which the Company
has an account or safe deposit box, (ii) the type and number of each account or safety deposit box, and (iii) the names of all Persons
authorized to draw thereon or to have access thereto. Each Person holding a power of attorney or similar grant of authority on behalf
of the Company is identified on Schedule 3.22. Except as disclosed on Schedule
3.22, the Company has not given any revocable or irrevocable powers of attorney to any
Person relating to its business for any purpose whatsoever.

Article
IV

REPRESENTATIONS AND WARRANTIES CONCERNING SELLER

Seller
hereby represents and warrants to Purchaser as follows:

4.01       Authorization
. The Seller is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of
Delaware, and has all requisite power, authority, and Registrations necessary to own, lease, and operate its properties and to carry
on its businesses as now conducted. The Seller is in good standing and qualified to do business in every jurisdiction in which its ownership,
lease, or operation of property or the conduct of business as now conducted requires it to qualify, except where the failure to be so
qualified has not been and would not reasonably be expected to be material. The execution, delivery and performance of this Agreement
and the Ancillary Agreements to which Seller is a party and the consummation of the transactions contemplated hereby and thereby have
been duly and validly authorized by all requisite action, and no other proceedings on Seller’s part are necessary to authorize
the execution, delivery or performance of this Agreement or the Ancillary Agreements to which Seller is a party. Assuming that this Agreement
is a valid and binding obligation of the other parties hereto and that each Ancillary Agreement to which Seller is a party will be a
valid and binding obligation of the other parties thereto, this Agreement constitutes, and each Ancillary Agreement to which Seller is
a party will constitute, a valid and binding obligation of Seller, enforceable in accordance with its terms, except as enforceability
may be limited by bankruptcy Laws, other similar Laws affecting creditors’ rights and general principles of equity affecting the
availability of specific performance and other equitable remedies.

4.02       No
Violation . Seller is not subject to or obligated under any applicable Law, or any Organizational Document, material agreement, instrument,
license, franchise or permit, or subject to any order, writ, injunction or decree, which would be breached or violated by Seller’s
execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby.

    	 	31	 

    	 

    

4.03       Governmental
Consents . Seller is not required to submit any notice, report or other filing with any Governmental Entity in connection with the
execution, delivery or performance by Seller of this Agreement or the Ancillary Agreements to which Seller is a party or the consummation
of the transactions contemplated hereby or thereby. No consent, approval or authorization of any Governmental Entity or any other party
or Person is required to be obtained by Seller in connection with Seller’s execution, delivery and performance of this Agreement
or the Ancillary Agreements to which Seller is a party or the consummation of the transactions contemplated hereby or thereby.

4.04       Litigation
. There are no Proceedings pending or, to Seller’s knowledge, threatened against Seller at law or in equity, or before or by
any Governmental Entity, which would adversely affect Seller’s performance under this Agreement or any Ancillary Agreement to which
Seller is a party or the consummation of the transactions contemplated hereby or thereby. Seller is not subject to any outstanding judgment,
order or decree of any court or other Governmental Entity with respect to the transactions contemplated hereby.

Article
V

REPRESENTATIONS AND WARRANTIES OF PURCHASER

Purchaser
represents and warrants to Seller as follows:

5.01       Organization
and Organizational Power. Purchaser is a corporation duly formed, validly existing and in good standing under the Laws of the State
of Delaware, with full power and authority to enter into this Agreement and perform its obligations hereunder.

5.02       Authorization.
(a) Purchaser has all requisite corporate power and authority to execute and deliver this Agreement and the Ancillary Agreements to which
it is a party and to perform its obligations hereunder and thereunder and (b) the execution, delivery and performance of this Agreement
and the Ancillary Agreements to which it is a party by Purchaser and the consummation of the transactions contemplated hereby and thereby
have been duly and validly authorized by all requisite action, and no other proceedings on the part of Purchaser are necessary to authorize
the execution, delivery or performance of this Agreement or the Ancillary Agreements to which it is a party. Assuming that this Agreement
is a valid and binding obligation of the other parties hereto and that each Ancillary Agreement to which Purchaser is a party will be
a valid and binding obligation of the other parties thereto (as applicable), this Agreement constitutes, and each Ancillary Agreement
to which Purchaser is a party will constitute, a valid and binding obligation of Purchaser, enforceable in accordance with its terms,
except as enforceability may be limited by bankruptcy Laws, other similar Laws affecting creditors’ rights and general principles
of equity affecting the availability of specific performance and other equitable remedies. No other vote of the holders of any class
or series of capital stock of Purchaser is required to adopt this Agreement and approve the transactions contemplated hereby.

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5.03       No
Violation. Purchaser is not subject to or obligated under its certificate of formation or operating agreement (or similar organizational
documents), any applicable Law, or any material agreement, instrument, license, franchise or permit, or subject to any order, writ, injunction
or decree, which would be breached or violated by Purchaser’s execution, delivery or performance of this Agreement or the consummation
of the transactions contemplated hereby.

5.04       Litigation.
There are no Proceedings pending or, to Purchaser’s knowledge, threatened against Purchaser at law or in equity, or before or by
any Governmental Entity, which would adversely affect Purchaser’s performance under this Agreement or the consummation of the transactions
contemplated hereby. Purchaser is not subject to any outstanding judgment, order or decree of any court or other Governmental Entity
with respect to the transactions contemplated hereby.

5.05       Brokerage.
There are no claims for brokerage commissions, finders’ fees or similar compensation in connection with the transactions contemplated
by this Agreement based on any arrangement or agreement made by or on behalf of Purchaser for which any Restricted Party or any of its
Affiliates would be liable following the Closing.

Article
VI

COVENANTS

6.01       Non-Competition.
Each of the Seller, William Karol, James Peden and William Leaver (each a “Restricted Party” and, collectively, the “Restricted
Parties”), severally and not jointly, agrees that commencing on the Closing Date and continuing until the fifth anniversary of
the Closing Date (the “Restricted Period”), such Restricted Party will not, directly or indirectly, either for itself or
himself or through any other Person, as an employee, agent, independent contractor, consultant, director, equity holder, manager, co-partner
or in any other individual or representative capacity, own, operate, manage, control, engage in, invest in, be employed by or participate
in any manner in, act as a consultant or advisor to, render services for (alone or in association with any Person), or otherwise assist
any Person that engages in or owns, invests in, operates, manages or controls any venture or enterprise that directly or indirectly engages
or proposes to engage anywhere within North America in the business of designing, manufacturing, assembling, distributing and selling
cleaning and sanitation products for the food, pet food, food service and nutraceutical end-markets industries (the “Restricted
Business”) other than in connection with such Restricted Party's ownership of the Exchanged Shares. Nothing contained herein will
be construed to prevent a Restricted Party from investing in the stock of any competing entity which is listed on a national securities
exchange or traded in the over the counter market, so long as such Restricted Party is not involved in the business of such Person, and
is merely a passive investor, and so long as such Restricted Party does not own more than five percent (5%) of the equity of such Person.

    	 	33	 

    	 

    

6.02       Non-Solicitation;
Non-Interference; Non-Hire. During the Restricted Period, each of the Restricted Parties, severally and not jointly, agrees that
such Restricted Party will not, directly or indirectly, either for himself or through any other person, as employee, agent, consultant,
director, equity holder, manager, co-partner or in any other capacity, without the prior written consent of Purchaser, (i) employ, hire,
engage, recruit or solicit for employment or engagement (other than by a general solicitation advertisement, posting, use of recruiting
services or websites, or similar job solicitation process not targeting the employees of the Company), any Person who is (or was during
the two (2) year period preceding the Closing) employed or engaged by the Company or otherwise seek to interfere with, influence or alter
any such Person’s relationship with the Company, (ii) solicit, interfere with, or adversely influence or alter the relationship
of, any Person with whom the Company conducts the Restricted Business, including, without limitation, any customers, vendors and suppliers
of the Company, or (iii) make any negative or disparaging statements or communications about the Company, Purchaser or any of their respective
Affiliates; provided, that the making of any truthful statement required by Law or due legal process shall not violate the requirements
of this Section 6.03.

6.03       Confidentiality.
Each of the Restricted Parties, severally and not jointly, agrees that such Restricted Party will treat and hold as confidential all
of the Confidential Information (as hereinafter defined) and refrain from disclosing or using any of the Confidential Information. In
the event that a Restricted Party is requested or required, by any regulatory or quasi-regulatory body, or in any legal proceeding, interrogatory,
subpoena, civil investigative demand, or similar process, to disclose any Confidential Information, such Restricted Party will notify
Purchaser promptly (to the extent that such notice is legally permissible) of the request or requirement so that the Company may seek,
at the Company’s sole expense, an appropriate protective order or waive compliance with the provisions of this Section 6.03. If,
in the absence of a protective order or the receipt of a waiver hereunder, a Restricted Party is compelled to disclose any Confidential
Information, such Restricted Party may disclose the Confidential Information; provided, however, that such Restricted Party will use
its commercially reasonable efforts to obtain, at the reasonable request and sole expense of the Company, an order or other assurance
that confidential treatment will be accorded to such portion of the Confidential Information required to be disclosed as the Company
will designate. For purposes of this Agreement, “Confidential Information” means all confidential matters relating to the
Company, including, but not limited to, “know how”, trade secrets, customer lists, supplier lists, intellectual property,
details of consultant and employment contracts, pricing policies, operational methods, marketing plans or strategies, product development
techniques or plans, business acquisition plans, technical processes, designs and design projects, processes, inventions, software, source
codes, object codes, systems documentation and research projects and other business affairs. A Restricted Party will not be held criminally
or civilly liable under any federal or state trade secret law for such Restricted Party’s disclosure of a trade secret that is
made in confidence to a federal, state or local government official or to an attorney, provided that such disclosure is: (a) solely for
the purpose of reporting or investigating a suspected violation of law; or (b) made in a complaint or other document filed in a lawsuit
or other proceeding, if such filing is made under seal.

6.04       Enforceability;
Severability. Each Restricted Party recognizes that the territorial, time and scope limitations set forth in this Agreement are reasonable
and are properly required to protect the Company’s and Purchaser’s substantial investment under the Purchase Agreement and
for the protection of the Company’s and Purchaser’s legitimate interest in client relationships, goodwill and trade secrets
of the Restricted Business, and that such limitations do not impose any undue burden upon such Restricted Party. In the event that any
such territorial, time or scope limitation is deemed to be invalid, prohibited or unenforceable by a court of competent jurisdiction,
the Company, Purchaser and each Restricted Party agrees, and each Restricted Party submits, to the reduction of any or all of said territorial,
time or scope limitations to such an area, period or scope as said court deems reasonable or enforceable under the circumstances. If
such partial enforcement is not possible in such jurisdiction, the provision will be deemed severed as to such jurisdiction and the remaining
provisions of this Agreement will remain in full force and effect.

    	 	34	 

    	 

    

6.05       Remedies.
Each Restricted Party acknowledges and agrees that the covenants set forth in this Agreement are reasonable and necessary for the protection
of the Company’s and Purchaser’s business interests and the Restricted Business, that irreparable injury will result to the
Company, Purchaser and the Restricted Business if such Restricted Party breaches any of the terms of this Agreement, and that in the
event of such Restricted Party’s actual or threatened breach of any of the provisions contained in this Agreement, the Company
and Purchaser may have no adequate remedy at law. Each Restricted Party accordingly agrees that in the event of any actual or threatened
breach by it of any of the provisions contained in this Agreement, each of the Company and Purchaser will be entitled to such injunctive
and other equitable relief as may be deemed necessary or appropriate by a court of competent jurisdiction. Nothing contained herein will
be construed as prohibiting the Company or Purchaser from pursuing any other remedies available to it for such breach or threatened breach,
including the recovery of any damages which it is able to prove. In addition, in the event of a breach or violation by a Restricted Party
of this Agreement, the Restricted Period will be tolled until such breach or violation has been duly cured.

6.06       Further
Assurances. From time to time, as and when requested by any Party hereto and at such Party’s expense, any other party shall
execute and deliver, or cause to be executed and delivered, all assignments, transfers, consents, assumptions and other documents and
instruments and shall take, or cause to be taken, all such further or other actions as such requesting party may reasonably deem necessary
or desirable to (a) evidence and effectuate the transactions contemplated by this Agreement and the Ancillary Agreements and (b) preserve
for a Company any right or benefit under any lease, license, commitment or other contract to which such Company is a party.

6.07       Tax
Matters.

(a)         Tax
Returns.

  (i)       Seller
shall, at its own cost and expense, prepare, or cause to be prepared, all IRS Forms 1120 (and analogous forms for state and local income
Tax purposes) of the Company for taxable periods ending on or before the Closing Date that are required to be filed after the Closing
Date (the “Seller Tax Returns”). Such Seller Tax Returns shall be prepared in a manner consistent with the past practices
of the Company, except to the extent otherwise required by applicable Law; provided, that the parties agree that an election shall
be made to treat seventy percent (70%) of any success-based fees as an amount that does not facilitate the transaction contemplated by
this Agreement pursuant to the safe harbor in Revenue Procedure 2011-29. Seller shall provide Purchaser with a copy of all such Seller
Tax Returns (including any related work papers or other information reasonably requested by the Purchaser) not later than sixty (60)
days before the due date for filing such Seller Tax Returns (including extensions) for Purchaser’s review. Seller shall make any
changes reasonably requested by Purchaser in writing not later than thirty (30) days after receiving such Seller Tax Return to the extent
such comments are consistent with the past practice of the Company and permitted by applicable Law. Purchaser and Seller will attempt
in good faith to resolve any dispute with respect to such

    	 	35	 

    	 

    

Seller Tax
Return. If there are no disputes among the parties (or the parties are able to resolve such disputes) with respect to any Seller Tax
Return, Purchaser shall thereafter cause such Seller Tax Returns to be filed. If the parties are unable to resolve any such dispute at
least five (5) days before the due date (with applicable extensions) for any Seller Tax Return, the dispute will be referred to the Accounting
Referee for resolution in accordance with the procedure set forth in Section 1.04, mutatis mutandis. If the Accounting
Referee is unable to resolve any such dispute prior to the due date (with applicable extensions) for any Seller Tax Return, such Seller
Tax Return will be filed reflecting the comments of Purchaser, subject to amendment, if necessary, to reflect the resolution of the dispute
by the Accounting Referee.

  (ii)       Subject
to Section 6.07(c) below, Purchaser shall prepare and file, or cause to be prepared and filed, all Tax Returns of the Company
that are not Seller Tax Returns for any Pre-Closing Tax Period that are required to be filed after the Closing Date. Such Tax Return
shall be prepared in a manner consistent with the past practices of the Company, except to the extent otherwise required by applicable
Law; provided, that the parties agree that an election shall be made to treat seventy percent (70%) of any success-based fees
as an amount that does not facilitate the transaction contemplated by this Agreement pursuant to the safe harbor in Revenue Procedure
2011-29. Purchaser shall provide Seller with a copy of any such income and other material Tax Returns reasonably in advance of the due
date for such Tax Returns to permit its timely review; provided, that the delay to deliver such Tax Returns to Seller shall not
relieve the Seller of its obligations hereunder except to the extent that (and only to the extent that) the Seller has been materially
prejudiced thereby. Purchaser shall make any changes reasonably requested by Seller in writing not later than fifteen (15) days after
receiving such Tax Return to the extent such comments are consistent with the past practice of the Company and permitted by applicable
Law. Purchaser and Seller will attempt in good faith to resolve any dispute with respect to such Tax Return. If the parties are unable
to resolve any such dispute at least five (5) days before the due date (with applicable extensions) for the Tax Return, the dispute will
be referred to the Accounting Referee for resolution in accordance with the procedure set forth in Section 1.04, mutatis mutandis.
If the Accounting Referee is unable to resolve any such dispute prior to the due date (with applicable extensions) for the Tax Return,
such Tax Return will be filed reflecting the comments of Purchaser, subject to amendment, if necessary, to reflect the resolution of
the dispute by the Accounting Referee.

(b)         Payment
of Taxes. Seller shall reimburse Purchaser for Taxes of or with respect to the Company with respect to all Tax Returns described
in Section 6.07(a), to the extent relating to Pre-Closing Tax Periods and not included as Final Indebtedness, no later than
three (3) Business Days before payment by Purchaser and/or the Company of such Taxes. Seller shall not amend, restate, or correct any
Tax Return filed by the Company without the prior written consent of Purchaser.

(c)         Transfer
Taxes. All transfer, documentary, sales, use, registration and real property transfer or gains tax, stamp tax, excise tax, equity
transfer tax, or other similar Tax imposed on the Company in connection with the transactions contemplated by this Agreement (collectively,
“Transfer Taxes”), and any penalties or interest with respect to the Transfer Taxes, will be split evenly between
Purchaser, on the one hand, and Seller, on the other hand. Seller shall cooperate with Purchaser in the filing of any returns with respect
to the Transfer Taxes.

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(d)         Tax-Sharing
Agreements. All Tax sharing, allocation, and indemnity agreements and similar agreements with respect to or involving the Company
shall be terminated as of the Closing Date, and, after the Closing Date, the Company shall not be bound thereby or have any Liability
or obligation thereunder.

(e)         Straddle
Periods. For purposes of this Agreement, any applicable Taxes with respect to any taxable period that includes (but does not end
on) the Closing Date (a “Straddle Period”) shall be prorated (i) in the case of any real property, personal property
and similar ad valorem Taxes, on a daily basis based upon the number of days in the portion of such Straddle Period that ends on and
includes the Closing Date and the number of days in the portion of such Straddle Period after the Closing Date, and (ii) in the case
of any other Taxes, on the basis of a deemed closing of the books as of the end of the Closing Date.

(f)         Cooperation
on Tax Matters. Purchaser and Seller shall cooperate fully, as and to the extent reasonably requested by the other party, in connection
with the preparation and filing of any Tax Return and any audit, litigation or other Proceeding with respect to Tax Returns or Taxes
of the Company. Such cooperation shall include the retention and (upon the other party’s request) the provision of records and
information which are reasonably relevant to any such Tax Return, audit, litigation or other Proceeding; provided that the party
requesting assistance shall pay the reasonable out-of-pocket expenses incurred by the party providing such assistance; provided,
further, no party shall be required to provide assistance at times or in amounts that would interfere unreasonably with the business
or other activities of any such party.

(g)         Tax
Proceedings. Purchaser agrees to give written notice to Seller of the receipt of Purchaser or the Company which involves the commencement
of any audit, litigation or other Proceeding with respect to Tax Returns or Taxes of the Company (a “Tax Proceeding”)
in respect of which an indemnity may be sought by Purchaser pursuant to Section 7.02(a)(iii). If a Tax Proceeding relates solely
to a Pre-Closing Tax Period, Seller shall have the right (but not the obligation) to elect to control such Tax Proceeding; provided
however that Seller shall obtain the prior written consent of Purchaser (which consent shall not be unreasonably withheld, conditioned
or delayed) before entering into any settlement or ceasing to defend a Tax Proceeding; and, provided further, that Purchaser shall
be entitled to participate in the defense of such Tax Proceeding and to employ counsel of its choice for such purpose, the fees and expenses
of which separate counsel shall be borne solely by Purchaser. If any Tax Proceeding is not controlled by Seller under this Section
6.07(g), whether by reason of Seller declining to control such claim pursuant to the terms of this Section 6.07(g) or otherwise,
Purchaser shall use commercially reasonable efforts to fully and actively defend such Tax Proceeding. In the event Purchase controls
a Tax Proceeding pursuant to this Section 6.07(g), Seller shall be entitled to participate in the defense of such Tax Proceeding
at Seller's sole cost and expense, and Purchaser shall obtain the prior written consent of Seller (which consent shall not be unreasonably
withheld, conditioned or delayed) before entering into any settlement or ceasing to defend a Tax Proceeding controlled by Purchaser.
With respect to a claim for indemnification pursuant to Article VII for a breach related to any Tax, to the extent of any inconsistencies,
this Section 6.07(g) shall control.

    	 	37	 

    	 

    

(h)         Post-Closing
Actions. Without the prior written consent of Seller, which shall not be unreasonably withheld, conditioned or delayed, after the
Closing, Purchaser and the Company shall not (i) other than Tax Returns that are filed in accordance with this Section 6.07, file
or amend any Tax Return of the Company for a Pre-Closing Tax Period (except as required by applicable Law), (ii) after the date of any
Tax Return filed pursuant to Section 6.07, amend or otherwise modify any such Tax Return, (iii) make or change any Tax election
for the Company, for or that has retroactive effect to, any Pre-Closing Tax Period, (iv) subject to Section 6.07(j), voluntarily
make contact with any Tax Authority with respect to the Company for any Pre-Closing Tax Period or Taxes attributable to a Pre-Closing
Tax Period (except as required by applicable Law), (v) extend, waive, or cause to be extended or waived, any statute of limitations applicable
to a Company with respect to any Pre-Closing Tax Period, in each case, in a manner that increases the Liability of Seller under this
Agreement, or (vi) make (or permit to be made) any election under Section 338(g) of the Code (or any comparable applicable provision
of state, local or foreign Tax Law) with respect to the Company.

(i)         Tax
Refunds. Any cash Tax refunds (or credits claimed in lieu of a cash Tax refund) received (or claimed) by Purchaser or its Affiliates
(including the Company after the Closing Date) for any Pre-Closing Tax Period of the Company shall be for the account of the Seller,
and shall be paid by Purchaser or its Affiliates to Seller within ten (10) days after Purchaser or its Affiliates (including the Company
after the Closing Date) receive such refund or file the relevant Tax Return in which such credit is obtained (net of (1) any Taxes payable
by the Purchaser, the Company, or their Affiliates in obtaining such refund or credit, (2) any reasonable out-of-pocket costs associated
in obtaining such refund, and (3) any amounts required to be withheld on such payment to Seller). If any refunds or credits (including
any interest related thereto) previously paid to Seller pursuant to this Section 6.07(i) is required to be repaid or is subsequently
disallowed, Seller shall repay to Purchaser all such previously paid amounts within ten (10) days after such requirement or disallowance
is finally determined. Notwithstanding anything in this Section 6.07(i) to the contrary, any refund attributable to the carryback
of any Tax asset generated in a taxable period (or portion thereof) beginning after the Closing Date to a Pre-Closing Tax Period shall
be for the benefit of the Purchaser.

(j)       Purchaser
shall be permitted to file any application, or otherwise voluntarily undertake to participate in any program of voluntary disclosure,
for amnesty or other relief from penalty for the Company’s failure to report or pay the type of Taxes in the applicable jurisdictions,
in Pre-Closing Tax Periods, set forth on Schedule 6.07(j); provided that Seller shall be entitled to participate in any such process,
at Seller’s sole cost and expense.  All reasonable and documented out-of-pocket third-party fees and expenses paid by any
Purchaser Parties in connection with preparing, filing and negotiating any such voluntary disclosures and related submissions in any
jurisdiction set forth on Schedule 6.07(j) (each, a “Designated State”) shall be treated as “Losses”
for purposes of Section 7.02(a)(v).  Following the execution of any voluntary disclosure agreement or receipt of a certificate
(such agreement or certificate, a “VDA”) with respect to a Designated State, the amount of any Tax (including any
interest, penalties or additions to such Tax) attributable to such Designated State for a Pre-Closing Tax Period with respect to the
VDA shall be treated as “Losses” for purposes of Section 7.02(a)(v).

6.08       R&W
Policy. On or prior to the Closing, Purchaser shall obtain insurance coverage under a R&W Policy. Prior to binding the R&W
Policy, Purchaser shall share a draft in substantially final form with Seller and reasonably consider any comments communicated to Purchaser
by Seller. All premiums and related costs due under the R&W Policy shall be paid 50% by the Purchaser and 50% by the Seller to the
applicable insurer at or prior to the Closing.

    	 	38	 

    	 

    

6.09       D&O
Indemnification. The Company shall obtain as of the Closing Date a “tail” insurance policy (the “D&O Tail Policy”)
with a claims period of six (6) years from the Closing Date with at least the same coverage and amounts, and containing terms and conditions
that are not less advantageous to the directors and officers of the Company (each, a “D&O Indemnified Person”), in each
case as the sole source of recovery with respect to claims arising out of or relating to events which occurred on or prior to the Closing
Date (including in connection with the Transactions). The fees and expenses of the D&O Tail Policy shall be borne 50% by Purchaser
and 50% by Seller (as Transaction Expenses).

6.10       Release.
In consideration of the mutual covenants and agreements contained in this Agreement, effective as of the Closing, each Restricted Party
and each of their Affiliates (excluding, for the avoidance of doubt, the Company), heirs, beneficiaries, trustees, successors and assigns
(each, a “Releaser”) hereby irrevocably on behalf of himself or itself and the Releasers: (a) releases and forever discharges
the Company and their past and present directors, shareholders, officers, employees, and agents, and each of their respective successors,
heirs, assigns, executors and administrators (collectively, the “Released Persons”) of and from any and all manners or causes
of action and actions, claims, suits, rights, debts, sums of money, covenants, contracts, damages and judgments whatsoever, in law or
in equity (collectively, the “Released Claims”) which Seller ever had or now has or which it hereafter can, will or may have,
against the Released Persons of and from any and all Contracts (excluding, however, all those arising under or contained in this Agreement),
whether known or unknown, suspected or unsuspected, matured or unmatured, fixed or contingent, for, upon or by reason of any matter relating
to the Company, arising at any time on or prior to the Closing whether as an equity holder, a holder of Indebtedness or otherwise, and
the Released Persons shall not have Liability with respect thereto and (b) consents to this Agreement, each other Ancillary Agreement
and the transactions contemplated hereby and thereby. Seller and each Restricted Party hereby represents and warrants, on behalf of itself
or himself and each of the Releasers, that Seller and such Restricted Party has not, and none of the Releasers has, assigned or otherwise
transferred any right or interest in or to any of the Released Claims. Seller, on behalf of Seller and each of the Releasers, hereby
irrevocably covenants to refrain from asserting any claim or demand, or commencing, instituting or causing to be commenced or instituted,
or participating, assisting, or cooperating (except with Purchaser, or the Company) in, or encouraging, assisting or soliciting any other
Person to institute, any suit, claim, action or other Proceeding of any kind against any Releasee that is based upon or related to any
Released Claim, and hereby waives any benefit conferred upon Seller or the Releasers by any judgment or order issued in connection with
any suit, claim, action or other Proceeding filed against any Releasee based upon or related to any Released Claim. Notwithstanding the
foregoing, nothing contained in this Section 6.10 will operate to release any Released Claims of Seller arising under or pursuant to
this Agreement, any other Ancillary Agreement, or the D&O Tail Policy.

Article
VII

INDEMNIFICATION AND RELATED MATTERS

7.01       Survival.
(a) All representations and warranties set forth in this Agreement (other than Fundamental Reps and the representations and warranties
made by Seller in Article IV) shall survive the Closing and the consummation of the transactions contemplated hereby and terminate on
the date that is twelve (12) months following the Closing Date, (b) the Fundamental Reps and the representations and warranties made
by Seller in Article IV shall survive the Closing and the consummation of the transactions contemplated

    	 	39	 

    	 

    

hereby and
terminate on the date that is thirty (30) days after the expiration of the applicable statute of limitations, (c) the covenants and agreements
set forth in this Agreement shall survive for the express period of time stated with respect thereto or, absent any such expressly stated
period, then seven (7) years, and (d) claims based upon Fraud shall survive for seven (7) years (each of the foregoing dates, a “Survival
Date”). Notwithstanding the foregoing, no party shall be entitled to recover for any Loss pursuant to Section 7.02 for a breach
of representation or warranty unless written notice of a claim thereof is delivered prior to the applicable Survival Date to the party
against whom indemnification is sought; provided that the right of indemnity with respect thereto, shall survive the time at which it
would otherwise terminate pursuant to this Section 7.01 and the applicable statute of limitations if notice of the inaccuracy or breach
or potential inaccuracy or breach thereof giving rise to such right or potential right of indemnity shall have been given to the party
against whom such indemnity may be sought prior to the applicable Survival Date. 

7.02       Indemnification.

(a)         Each
Restricted Party, severally and not jointly (provided that each member of the Karol Group shall have joint and several liability with
respect to the obligations of the other member of the Karol Group) based upon such Restricted Party’s Pro Rata Share, shall indemnify
Purchaser and its officers, directors, members, managers, equity holders, employees, agents, representatives, Affiliates (including the
Company after the Closing), successors and permitted assigns (collectively, the “Purchaser Parties”) and hold each
of them harmless from and against, and pay on behalf of or reimburse such Purchaser Parties in respect of, any Loss which any such Purchaser
Party may suffer, sustain or become subject to, as a result of, in connection with, relating to or incidental to or by virtue of:

  (i)       any
breach of any representation or warranty set forth in Article III or Article IV; provided that for purposes of determining
whether there has been a breach and the amount of Losses that are the subject matter of a claim for indemnification or reimbursement
hereunder, each such representation or warranty shall be read without regard and without giving effect to the term “material”
or “Material Adverse Effect” or similar phrases or qualifiers contained in such representation or warranty;

  (ii)       any
breach by a Restricted Party of any covenant or agreement contained in this Agreement; provided, that only the breaching Restricted Party
shall be liable to indemnity Purchaser for such breach hereunder; and, provided, further, that, notwithstanding the foregoing proviso,
each member of the Karol Group shall have joint and several liability with respect to the obligations of the other member of the Karol
Group;

  (iii)       any
Transaction Expenses or Indebtedness outstanding as of the Closing to the extent not included in the calculation of the Final Cash Consideration;

  (iv)       any
amounts payable in respect of the PPP Loan;

  (v)       Indemnified
Taxes; or

    	 	40	 

    	 

    

  (vi)       any
of the matters described in the exclusions expressly set forth in Section 4 (i) through (k) of the R&W Policy.

(b)         The
indemnification provided for in Section 7.02(a) shall be subject to the following limitations:

  (i)       Except
in the case of Fraud and other than Losses arising from or related to a breach of any Fundamental Rep, Restricted Party shall be liable
to Purchaser Parties for any Loss arising under Section 7.02(a)(i) unless the aggregate amount of all Losses under Section 7.02(a)(i)
exceeds $262,500 in the aggregate (the “Basket”), in which case the Restricted Parties shall be liable only for
the amount of Losses in excess of such Basket;

  (ii)       Except
in the case of Fraud and other than Losses arising from or related to a breach of any Fundamental Rep, the aggregate Liability under
Section 7.02(a)(i) shall in no event exceed $262,500 (the “Cap”);

  (iii)       Except
in the case of Fraud, Losses arising from or related to a breach of any Fundamental Rep, Section 7.02(a)(ii), Section 7.02(a)(iii),
Section 7.02(a)(iv), Section 7.02(a)(v) or Section 7.02(a)(vi) shall in no event exceed the Final
Cash Consideration; and

  (iv)       The
limitations set forth in this Section 7.02(b) shall in no way limit or affect the rights of the Purchaser Parties under the
R&W Policy.

(c)         Purchaser
shall indemnify Seller, each Restricted Party and such Restricted Party’s heirs, administrators, representatives, successors and
assigns (each a “Seller Party” and, collectively, the “Seller Parties”) and hold the Seller Parties
harmless from and against any Loss which any of the Seller Parties may suffer, sustain or become subject to, as the result of (i) any
misrepresentation or breach of any representation or warranty set forth in Article V and (ii) any failure to perform or breach
by Purchaser of any covenant or agreement made by Purchaser contained in this Agreement. Notwithstanding the foregoing, in no event shall
Purchaser’s Liability under clause (i) of this Section 7.02(c) exceed the Final Cash Consideration.

(d)         Any
party making a claim for indemnification under this Article VII (the “Indemnified Party”) shall notify the
indemnifying party (the “Indemnifying Party”) of the claim in writing promptly after receiving written notice of any
action, lawsuit, proceeding, investigation or other claim against it (if by a third party) or discovering any potential Liability, obligation
or facts giving rise to such potential claim for indemnification, describing the claim, the amount thereof (if known and quantifiable)
and the basis thereof; provided that the failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party
of its obligations hereunder, except to the extent (and only to the extent) such failure shall have actually and materially prejudiced
the Indemnifying Party; and provided, further, that if the claim relates to an actual or alleged breach of a representation
or warranty made by Seller that is not excluded from coverage under the R&W Policy, Purchaser may also provide written notice thereof
to the R&W Insurer in accordance with the R&W Policy. The Indemnifying Party shall not be entitled to assume the defense or control
of a third party claim and shall pay the fees and expenses of counsel retained by the Indemnified Party unless (1) the Indemnifying Party
agrees to assume in writing all Losses associated with or arising from such third party claim notwithstanding any limitations

    	 	41	 

    	 

    

thereon otherwise
set forth herein, (2) such third party claim involves solely claims for monetary relief and no criminal Proceeding is threatened by such
third party claim, (3) such third party claim could not reasonably have an adverse effect (reputational, economic or otherwise) that
is material on the Indemnified Party and/or any of its Subsidiaries or Affiliates or otherwise materially impair any business relations
of the Indemnified Party and/or any of its Subsidiaries or Affiliates, (4) counsel to the Indemnified Party shall have reasonably concluded
that there is no conflict of interest between the Indemnified Party and the Indemnifying Party in the conduct of the defense of such
third party claim and (5) the amount in controversy under such claim is covered by the R&W Policy, or in the event the claim is excluded
under the R&W Policy, such amount is less than the remaining balance of the Indemnity Escrow Amount. If the Indemnifying Party shall
assume the control of the defense of any third party claim in accordance with the provisions of this Section 7.02(d), the
Indemnifying Party shall obtain the prior written consent of the Indemnified Party (which shall not be unreasonably withheld, conditioned
or delayed) before entering into any settlement of such third party claim, if (x) the settlement does not expressly release the Indemnified
Party and its Affiliates from all liabilities and obligations with respect to, or involve the dismissal with prejudice of all claims
asserted in, such third party claim, or (y) the settlement imposes injunctive or other equitable relief against the Indemnified Party
or any of its Affiliates. The Indemnified Party shall be entitled to participate in the defense of any such third party claim and to
employ separate counsel of its choice for such purpose; provided that the cost of such counsel shall be at the Indemnified Party’s
sole cost (other than any actual and reasonable fees and expenses of such separate counsel that are incurred prior to the date the Indemnifying
Party effectively assumes control of such defense, so long as the Indemnified Party provided prompt notice the applicable claim, which,
notwithstanding the foregoing, shall be borne by the Indemnifying Party). Notwithstanding anything herein to the contrary, Seller, on
behalf of the Restricted Parties, shall lose its right to contest, defend, litigate and settle a third party claim if they fail to promptly
accept a tender of the defense of the third party claim or thereafter at all relevant times conduct a good faith defense of such third
party claim. In such event, the Purchaser Party will have the right to conduct and control, through counsel of its choosing, the defense,
compromise or settlement of any such third party claim; provided, that at least five (5) business days prior to any such settlement,
written notice of the material terms of compromise or settlement is provided to Seller, on behalf of the Restricted Parties.

(e)         Amounts
paid to or on behalf of the Restricted Parties, on the one hand, or Purchaser, on the other hand, as indemnification shall be treated
as adjustments to the Final Cash Consideration for Tax purposes to the extent permitted by applicable Law.

(f)         Except
in the case of Fraud and other than Losses arising from or related to a breach of any Fundamental Rep, any indemnification payments to
be made by the Restricted Parties pursuant to Section 7.02(a)(i) shall be recovered:

  (i)       if
the claims resulting in such indemnification payments are not in respect of the exclusions expressly set forth in Section 4 (i) through
(k) of the R&W Policy, first from the Indemnity Escrow Amount and then under the R&W Policy as Purchaser’s sole and exclusive
remedy;

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  (ii)       if
the claims resulting in such indemnification payments are in respect of the exclusions expressly set forth in Section 4 (i) through (k)
of the R&W Policy, from the Restricted Parties based upon such Restricted Party’s Pro Rata Share as provided in Section 7.02(a)
in cash by wire transfer of immediately available funds to the account or accounts designated by the Purchaser Party within five (5)
Business Days after the final determination thereof.

Any
indemnification payments to be made by a Restricted Party pursuant to Section 7.02(a)(ii) through Section 7.02(a)(vi) shall
be paid by such Restricted Party in cash by wire transfer of immediately available funds to the account or accounts designated by the
Purchaser Party within five (5) Business Days after the final determination thereof. Any indemnification payments to be made by Purchaser
pursuant to Section 7.02(b) shall be paid by Purchaser in cash by wire transfer of immediately available funds to the account
or accounts designated by Seller, on behalf of the Restricted Parties, within five (5) Business Days after the final determination thereof.

(g)         On
the first Business Day after the date that is twelve (12) months following the Closing Date, Purchaser and Seller, on behalf of the Restricted
Parties, shall execute and deliver instructions instructing the Escrow Agent to release to Seller, on behalf of the Restricted Parties,
the remaining balance of the Escrow Amount, less any portion of the Indemnity Escrow Amount subject to a claim for indemnification by
a Purchaser Party that has been noticed on or prior to the date of expiration of the applicable Survival Date and is pending under this
Article VII (each, an “Outstanding Claim”), which portion shall continue to be retained until final settlement
between the Purchaser Party and Seller, on behalf of the Restricted Parties, or final determination of all such Outstanding Claims (and
thereafter released in accordance with the terms of such settlement or resolution from which such final determination results).

(h)         Except
(i) with respect to injunctive and other non-monetary equitable relief, (ii) with respect to the provisions of Section 1.04 and
Section 1.05, and (iii) for any action arising under, based upon, or related to, Fraud, Purchaser acknowledges and agrees (on
behalf of itself and its Affiliates) that, from and after the Closing, its sole and exclusive remedy with respect to any and all claims
for money damages relating to a breach of representation or warranty contained in this Agreement shall be pursuant to the provisions
of this Article VII. In the event any Indemnified Party suffers any Loss by reason of a Party’s Fraud, such Indemnified
Party shall be entitled to seek recovery therefor without regard to any limitation set forth in this Agreement (whether a temporal limitation,
dollar limitation or otherwise).

(i)         For
purposes of calculating the amount of Loss incurred by an Indemnified Party under this Agreement, such amount shall be reduced by (i)
the amount of any insurance proceeds actually paid to such Indemnified Party in respect of such Loss, net of any deductible amounts,
any increase in premiums directly attributable thereto and any costs reasonably incurred in obtaining such insurance proceeds and (ii)
the amount of any indemnification, contribution, and other similar proceeds actually recovered by such Indemnified Party in respect of
such Loss, net of any costs reasonable incurred in obtaining such proceeds.

    	 	43	 

    	 

    

(j)         Notwithstanding
anything to the contrary in this Agreement or in the Organizational Documents of the Company: (i) none of the Restricted Parties shall
make or initiate any claim for indemnification or advancement of expenses hereunder or under the Organizational Documents of the Company
against any Purchaser Party by reason of the fact that such Restricted Party was a director, manager, partner, member, trustee, officer,
employee, equity holder or agent (each, an “Entity Representative”) of the Company or was serving at the request of
the Company as an Entity Representative of another Person (whether such claim is for judgments, Losses, penalties, fines, costs, amounts
paid in settlement, expenses or otherwise) to the extent the claim for indemnification or advancement of expenses arises from a claim
pursuant to which any Purchaser Party is entitled to indemnification from such Restricted Party; provided, that the foregoing shall not
apply to remedies such Restricted Party may have under the D&O Tail Policy; and (ii) each Restricted Party hereby acknowledges and
agrees that such Restricted Party shall have no claim or right to contribution or indemnity from any Purchaser Party with respect to
any amounts paid pursuant to this Article VII.

Article
VIII

DEFINITIONS

8.01       Definitions.
For purposes hereof, the following terms when used herein shall have the respective meanings set forth below:

“Adjustment
Escrow Amount” means $1,000,000.

“Affiliate”
of any particular Person means any other Person controlling, controlled by or under common control with such particular Person, where
“control” means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether
through the ownership of voting securities, contract or otherwise.

“Ancillary
Agreements” means the Escrow Agreement, Exchange Agreement and each other agreement, document, instrument or certificate contemplated
by this Agreement or to be executed by Purchaser, the Company or Seller in connection with the consummation of the acquisition transactions
contemplated by this Agreement.

“Anti-Corruption
Laws” means any U.S. or non-U.S. Laws relating to anti-bribery or anticorruption or that otherwise prohibit a corrupt payment
to any government or public officials, including, but not limited to the Foreign Corrupt Practices Act of 1977 and UK Bribery Act.

“Base
Consideration” means $52,500,000.

“Business
Day” means any day other than a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed
in Florida.

“Cash”
means, with respect to the Company, cash, cash equivalents and other short-term marketable securities of the Company as of the Closing
Effective Time, plus any deposits made but not yet posted, less the amounts of (i) any unpaid checks, drafts and wire transfers (but
without duplication of any such unpaid amounts being taken into account in the determination of the Net Working Capital), (ii) any restricted
deposits maintained with lessors, banks or other third parties, (iii) restricted cash and (iv) any
cash used to pay or discharge any Indebtedness or Transaction Expenses, pay any dividends or distributions to equity holders of the Company,
or repurchase or redeem any equity securities of the Company, plus (i) deposits already paid by the Company for installation of a new
awning and trade show deposits, with such amount not to exceed $106,000, in each case between the Closing Effective Time and the Closing.

    	 	44	 

    	 

    

“Closing
Cash Consideration” means (i) the Base Consideration, minus (ii) the amount of Estimated Indebtedness, plus (iii)
the amount, if any, by which the Estimated Net Working Capital exceeds the Target Net Working Upper Threshold, minus (iv) the
amount, if any, by which the Estimated Net Working Capital is less than the Target Net Working Capital Lower Threshold, plus (v)
the amount of Estimated Cash, minus (vi) the amount of Estimated Transaction Expenses, minus (vii) the Escrow Amount, minus
(viii) the Exchanged Amount.

“Contract”
or “contract” means any oral or written contract, agreement, deed, mortgage, lease, license, instrument, note, commitment,
undertaking or other legally enforceable arrangement.

“Data
Security Requirements” means, collectively, all of the following to the extent relating to confidential or sensitive information,
payment card data, Personal Data, or other protected information relating to individuals or otherwise relating to privacy, security,
Processing, marketing, or security breach notification requirements and applicable to the Company: (i) the Company’s own rules,
policies, and procedures (whether physical or technical in nature, or otherwise), (ii) all applicable Laws and all industry standards
applicable to the Company’s industry (including the Payment Card Industry Data Security Standard (PCI DSS)), and (iii) agreements
the Company has entered into or by which any of them is bound.

“COVID-19”
means SARS-CoV-2 (severe acute respiratory syndrome coronavirus 2), coronavirus disease 2019 or COVID-19.

“COVID-19
Pandemic” means the pandemic caused by COVID-19 which, as of the date hereof, has spread throughout the world and has resulted
in Governmental Bodies implementing numerous measures to try to contain COVID-19, including travel bans and restrictions, quarantines,
shelter in place orders and shutdowns.

“Environmental
Laws” means all Laws, and any order or binding agreement with any Governmental Entity: (a) relating to pollution (or the cleanup
thereof) or the protection of natural resources, endangered or threatened species, human health or safety, or the environment (including,
but not limited to, ambient air, soil, surface water, groundwater, or subsurface strata); or (b) concerning the presence of, exposure
to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse, treatment, generation, discharge, transportation,
processing, production, disposal or remediation of any Hazardous Substances.

“ERISA
Affiliate” means each Person treated at a relevant time as a single employer with the Company pursuant to Section 4001(b) of
ERISA or Section 414(b), (c), (m) or (o) of the Code or a member of a “controlled group” within the meaning of Section 4001(a)(14)
of ERISA.

“Escrow
Account” means a bank account designated in writing by the Escrow Agent, into which the Indemnity Escrow Amount and the Adjustment
Escrow Amount will be deposited at the Closing.

“Escrow
Agent” means PNC Bank.

    	 	45	 

    	 

    

“Escrow
Agreement” means the Escrow Agreement dated as of the Closing Date, by and among Seller, Purchaser and the Escrow Agent.

“Escrow
Amount” means the Indemnity Escrow Amount and the Adjustment Escrow Amount.

“Ex-Im
Laws” means all U.S. and non-U.S. Laws relating to export, reexport, transfer, and import controls, including the Export Administration
Regulations, the International Traffic in Arms Regulations, and the customs and import Laws administered by U.S. Customs and Border Protection.

“Final
Cash Consideration” means (i) the Base Consideration, minus (ii) the Final Indebtedness, plus (iii) the amount,
if any, by which the Final Net Working Capital exceeds the Target Net Working Upper Threshold, minus (iv) the amount, if any,
by which the Final Net Working Capital is less than the Target Net Working Lower Threshold, plus
(v) the Final Cash, minus (vi) the Final Transaction Expenses, minus (vii) the Escrow Amount, minus (viii) the
Exchanged Amount.

“Fraud”
means an actual and intentional fraud by a Person (excluding constructive fraud and any recklessness
standard) with respect to making the specific representations and warranties in this Agreement or any of the Ancillary Documents.

“Fundamental
Reps” means those representations and warranties contained in (i) Section 3.01 (Organization and Organizational
Power), Section 3.02, (Authorization; No Breach; Valid and Binding Agreement), Section 3.03 (Capitalization), Section 3.08
(Tax Matters), Section 3.16 (Affiliated Transactions), and Section 3.21 (Brokerage) and (ii) in Article IV.

“Funded
Indebtedness” means all Indebtedness set forth in clause (i) of the definition of “Indebtedness” as of immediately
prior to the consummation of the Closing.

“GAAP”
means United States generally accepted accounting principles as in effect from time to time, consistently applied.

“Government
Contract” means any contract or agreement currently in performance that is between the Company and a Governmental Entity or
entered into by the Company as a subcontractor (at any tier) in connection with a contract between another Person and a Governmental
Entity.

“Governmental
Entity” means any federal, national, state, foreign, provincial, local or other government or any governmental, quasi-governmental
or regulatory authority, agency, bureau, board, commission, court, judicial or arbitral body (public or private), department, political
subdivision, tribunal or other instrumentality thereof.

“Hazardous
Materials” means any material, substance or waste, which is defined, prohibited, limited or regulated by, or for which Liability
or standards of conduct may be imposed under Environmental Laws, including petroleum and petroleum by-products, asbestos, asbestos-containing
materials, lead based paint, perfluorinated compounds, polychlorinated biphenyls, toxic mold, radiation, radon, noise or odor.

    	 	46	 

    	 

    

“Indebtedness”
means with respect to the Company and without duplication, the aggregate amount of the following: (i) indebtedness for money borrowed
or advanced or monetary obligations, (ii) any Liability evidenced by any bonds, debentures, notes, or similar debt securities or similar
obligations, whether or not secured by a Lien, (iii) any Liability, loans or advances received from, or other amounts owed to, Seller,
any Affiliate of any Seller or any employee or any former equity holder of the Company, (iv) any Liability or obligation in respect of
leases of real or personal property or any purchase money or vendor financing that are, or are required to be, capitalized in accordance
with GAAP, (v) any commitment, Liability or obligation under or pursuant to commitments by which such Person assures a creditor against
loss (including reimbursement obligations of such Person under acceptance credit, letters of credit, in each case, whether or not such
letters of credit have been drawn), (vi) any guaranty or other obligation in respect of indebtedness for borrowed money of a Person other
than the Company, (vii) any indebtedness secured by a Lien on any of the Company’s assets, (viii) any Liability or obligation for
any deferred purchase price of assets, property, goods or services, including any contingent payment, earn-out, seller note or similar
obligation (whether contingent or otherwise), at the maximum amount that is or may become payable by the Company (whether as of, prior
to or following the date hereof), and with respect to any conditional sale, title retention, consignment or similar arrangement (other
than trade payables incurred in the ordinary course of business), (ix) any Liability or obligation in respect of deferred revenue, customer
deposits and customer prepayments, (x) any off-balance sheet transactions, (xi) any obligation under hedging, swap, derivative financial
instrument or similar arrangements, including interest rate swaps, (xii) all long-term or non-current compensation liabilities, including
all SAR Obligations and unpaid retirement contributions, (xiii) Tax liabilities (whether or not due and payable as of the Closing) of
the Company for Pre-Closing Tax Periods (which amounts shall not (1) be less than zero in any specific jurisdiction, (2) include deferred
Tax assets or liabilities, and (2) include any Tax refunds), (xiv) any deferred “applicable employment taxes” (as defined
in Section 2302 of the CARES Act) attributable to Pre-Closing Tax Periods the Company elected to defer pursuant to Section 2303 of the
CARES Act, (xv) any obligations to pay management fees or reimburse board fees and/or travel expenses owed to any Seller (or any of their
respective Affiliates), including the Closing Success Fee payable to Koda pursuant to Section 1 of the Management Consulting Services
Termination Agreement (such Closing Success Fee being defined in Section 2 therein), (xvi) any unpaid distribution or dividend (including
tax distributions) whether or not declared, (xvii) unpaid bonus and commission obligations (whether or not accrued) and unpaid retirement
contributions, (xviii) guarantee or keep well obligations in respect of obligations of the kind referred to in clauses (i) through (xviii)
above, (xix) all liabilities and obligations for the employer’s share of payroll Taxes attributable thereto contemplated by clauses
(i) through (xviii) above, and (xx) all liabilities and obligations for accrued but unpaid interest, unpaid prepayment or redemption
penalties, termination fees, premiums or payments, make-whole payments, breakage costs, and unpaid fees and expenses that are payable
in connection with the retirement, prepayment, repayment, redemption, payoff, amendment, modification or supplement of any of any of
the liabilities contemplated by clauses (i) through (xviii) above; provided that “Indebtedness” shall not include
(1) any liabilities or obligations that are taken into account in the calculation of the Final Net Working Capital, or (2) any liabilities
or obligations that are taken into account as a deduction to Base Consideration in the calculation of “Transaction Expenses”.

    	 	47	 

    	 

    

“Indemnified
Taxes” means (i) all Taxes (or the non-payment thereof) of the Company for all Pre-Closing Tax Periods, (ii) all Taxes of any
member of an affiliated, consolidated, combined or unitary group of which the Company (or any predecessor) is or was a member on or prior
to the Closing Date, including pursuant to Treasury Regulation §1.1502-6 or any analogous or similar state, local, or non-U.S. law
or regulation, (iii) costs of preparing, amending, and defending any Tax Return of the Company for a Pre-Closing Tax Period, and (iv)
any and all Taxes of any person imposed on Company as a transferee or successor, by contract or pursuant to any law, rule, or regulation,
which Taxes relate to an event or transaction occurring before the Closing.

“Indemnity
Escrow Amount” means $262,500.

“Intellectual
Property” means any intellectual property or proprietary rights arising under the Laws of any jurisdiction in the world, including:
(i) copyrights, copyrightable works, and registrations and applications for registration thereof; (ii) trade names, trademarks, service
marks, and trade dress, and registrations and applications for registration thereof, and all goodwill associated therewith; (iii) patents
and applications therefor and all reissues, divisions, renewals, extensions, provisionals, continuations and continuations-in-part thereof;
(iv) internet uniform resource locators and domain names and social media accounts; (v) inventions (whether or not patentable), processes,
methods, trade secrets, know-how, and other confidential information; and (vi) rights in software, data and databases.

“Knowledge”
means, with respect to the Company, the actual knowledge of Paul Claro, Rodney Surratt and Susan Mader, together with such knowledge
that each such individual would reasonably be expected to have with respect to the matter at issue after reasonable inquiry of relevant
employees of the Company with respect thereto.

“Law”
means any federal, state, provincial, municipal, local, supranational, domestic or foreign law (including common law), act, code, rule,
ruling, directive, regulation, judgment, injunction, award, order, determination, ordinance, statute, writ, or decree of any Governmental
Entity.

“Liability”
shall mean any debt, loss, damage, commitment, deficiency, interest, Tax, fine, demand, judgment, cause of action, fine, penalty, liability,
obligation or other Loss (including loss of benefit or relief), cost or expense of any kind or nature whatsoever, whether direct or indirect,
known or unknown, suspected or unsuspected, asserted or unasserted, accrued or unaccrued, absolute, contingent, matured or unmatured,
liquidated or unliquidated, disputed or undisputed, due or to become due, whether in at law or in equity, whether disclosed or not in
the Disclosure Schedules, including those arising under any Law, Proceeding, order or Contract, and regardless of when or by whom asserted,
and any cost or expense (including any attorneys’ fees) relating to any of the foregoing.

“Liens”
means any encumbrance, hypothecation, infringement, license, lien, deed of trust, mortgage, easement, encroachment, pledge, restriction,
conditional sale agreement, right of first refusal, right of first offer, security interest, option, title retention or other security
arrangement, or any other adverse right or interest, charge or claim of a similar nature in or on any asset, property or property interest.

    	 	48	 

    	 

    

“Loss”
means each loss, liability, demand, claim, action, cause of action, charge, suits, awards, judgements, assessment, cost, damage, deficiency,
penalty, fine or expense of any kind or nature (including, in each case, interest, penalties, reasonable out-of-pocket attorneys’
fees and expenses, court costs and all amounts reasonably and actually paid in the investigation, defense, collection or settlement of
any of the foregoing, but excluding, in each case, punitive damages except to the extent incurred as a result of a third party claim).

“Material
Adverse Effect” means any change, effect, event, occurrence, state of facts or development that, individually or in the aggregate,
is, has had or would reasonably be expected to have or result in, a material adverse effect on (x) the business, assets, liabilities,
results of operations or condition (financial or otherwise) of the Company or (y) the ability of the Company or any Restricted Party
to timely perform any of their respective obligations under this Agreement or any Ancillary Agreement or to consummate the transactions
contemplated herein or therein; provided that no change, effect, event, occurrence, state of facts or development arising or resulting
from any of the following, either alone or in combination, shall constitute or be taken into account in determining whether there has
been a Material Adverse Effect pursuant to clause (x) of this definition: (A) operating, business, regulatory or other conditions in
the industry in which the Company operates; (B) general economic conditions, including changes in the credit, debt, financial, currency
or capital markets (including changes in interest or exchange rates), in each case, in the United States or anywhere else in the world;
(C) earthquakes, floods, hurricanes, tornadoes, volcanic eruptions, natural disasters or other acts of nature; and (D) global, national
or regional political conditions, including pandemics, hostilities, acts of war, sabotage or terrorism or military actions or any escalation,
worsening or diminution of any such pandemics, hostilities, acts of war, sabotage or terrorism or military actions existing or underway
as of the date hereof.

“Net
Working Capital” means an amount equal to, without duplication, the amount of current assets (excluding current and deferred
Tax assets) of the Company, less the amount of current liabilities of the Company (excluding any cash and cash equivalents, current and
deferred Tax liabilities, Indebtedness and Transaction Expenses), as of the Closing Effective Time. Net Working Capital shall be calculated
in accordance with GAAP and the Company’s historical practices as reflected in Exhibit A-1, and using the line items set
forth on, the sample calculation of Net Working Capital set forth on Exhibit A-2.

“Permitted
Liens” means (i) statutory Liens for current Taxes or other governmental charges not yet due and payable or the amount or validity
of which is being contested in good faith by appropriate proceedings by the Company and for which appropriate reserves are maintained
in accordance with GAAP; (ii) mechanics’, carriers’, workers’, repairers’ and similar statutory Liens arising
or incurred in the ordinary course of business for amounts which are not delinquent; (iii) zoning, entitlement, building and other land
use regulations imposed by governmental agencies having jurisdiction over the Leased Real Property which are not violated by the current
use or operation of the Leased Real Property, as applicable; (iv) covenants, conditions, restrictions, easements and other similar matters
of record affecting title to the Leased Real Property which do not materially impair the occupancy or use of the Leased Real Property,
as applicable for the purposes for which it is currently used in connection with the Company’s business; (v) Liens arising in the
ordinary course of business under worker’s compensation, unemployment insurance, social security, retirement and similar legislation
for amounts which are not delinquent; (vi) Liens on goods currently in transit incurred pursuant to documentary letters of credit; and
(vii) nonexclusive licenses of Intellectual Property granted to customers in the ordinary course of business.

    	 	49	 

    	 

    

“Person”
means an individual, a partnership, a limited partnership, a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization or a Governmental Entity or any department, agency or political subdivision
thereof.

“Personal
Data” means all information or data relating to one or more individual(s) that is personally identifying (i.e., data
that identifies an individual or, in combination with any other information or data, is capable of identifying an individual), including
all information or data regulated or protected by one or more federal, state, or foreign data privacy or security Laws.

“PPP
Loan” means the loan evidenced by that certain Promissory Note (Paycheck Protection Loan) (SBA Loan #00004750840158) dated
as of April 17, 2020 made by the Company to the order of the Webster Bank, N.A. in the original principal
amount of $943,670.20, which was fully forgiven on April 12, 2021.

“Pre-Closing
Tax Period” means any taxable period ending on or prior to the Closing Date and the portion through the end of the Closing
Date for any Straddle Period.

“Pro
Rata Share” means (i) with respect to William S. Karol (“Karol”), 27%, (ii) with respect to the William
S. Karol Family Trust of 2012 (“Karol Trust” and together with Karol, collectively, the “Karol Group”),
63%, (iii) with respect to James H. Peden (“Peden”), 5%, and (iv) with respect to William J. Leaver (“Leaver”),
5%.

“Proceeding”
means any action, suit, litigation, audit, investigation, grievance, claim, charge, complaint, inquiry, debarment proceeding, arbitration,
condemnation proceeding or other legal proceeding (whether civil, criminal, arbitral or otherwise).

“Process”
or “Processing” means any operation or set of operations which is performed on Personal Data or on sets of Personal
Data, whether or not by automated means, such as the receipt, access, acquisition, collection, recording, organization, compilation,
structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transfer, transmission, dissemination or
otherwise making available, alignment or combination, restriction, disposal, erasure or destruction.

“Product
Liability” shall mean any Liability of the Company for damage or injury to any Person, or damage to property under any theory
whatsoever (whether negligence, breach of express or implied warranty, strict liability, failure to warn, design or manufacturing defect,
conspiracy, violation of Law or any other theory) arising out of, relating to, or otherwise in respect of, any products (including any
part or component and regardless of the date of manufacture) designed, manufactured, assembled, marketed, sold or distributed by the
Company or any services (regardless of the date of performance) performed by the Company.

“R&W
Insurer” means AIG Specialty Insurance Company.

“R&W
Policy” means that certain Representations and Warranties Insurance Policy (Policy Number 55713865) issued to Purchaser by
the R&W Insurer.

    	 	50	 

    	 

    

“Sanctioned
Country” means any country or region that is the subject or target of a comprehensive embargo under Sanctions Laws (including
Cuba, Iran, North Korea, Sudan, Syria, Venezuela, Myanmar (Burma), and the Crimea region of Ukraine).

“Sanctioned
Person” means any individual or entity that is the subject or target of sanctions or restrictions under Sanctions Laws or Ex-Im
Laws, including: (i) any individual, aircraft, vessel, or entity listed on any applicable U.S. or non-U.S. sanctions- or export-related
restricted party list, including the U.S. Department of Treasury, Office of Foreign Asset Control’s (“OFAC”)
Specially Designated Nationals and Blocked Persons List and the U.S. Department of Commerce, Bureau of Industry and Security’s
Entity List; (ii) any individual ordinarily resident in a Sanctioned Country; (iii) any entity incorporated in, or with a primary place
of business in, a Sanctioned Country; and (iv) any entity, aircraft, or vessel that is, in the aggregate, 50% or more owned, directly
or indirectly, or otherwise controlled by a person or persons described in clauses (i)-(iii).

“Sanctions
Laws” means all U.S. and non-U.S. Laws relating to economic or trade sanctions, including the Laws administered or enforced
by the United States (including by OFAC or the U.S. Department of State), the United Nations Security Council, and the European Union.

“Software”
means any and all software, including operating system and applications software, embedded software, firmware, tools, data, databases,
implementations of algorithms, and program interfaces, whether in source code or object code form.

“Subsidiary”
means, with respect to any Person, any partnership, limited liability company, corporation or other business entity of which (i) if a
corporation, a majority of the total voting power of shares of capital stock entitled (without regard to the occurrence of any contingency)
to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a partnership, limited liability
company or other business entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof.

“Systems”
means servers, software, computer firmware, computer hardware, electronic data processing equipment, websites, databases, circuits, networks,
network equipment, peripherals, computer systems, and other computer, communications, and telecommunications devices and equipment, and
data or information contained therein or transmitted thereby.

“Target
Net Working Capital Lower Threshold” means $4,929,000.

“Target
Net Working Capital Upper Threshold” means $5,129,000.

“Tax”
(including with correlative meaning the term “Taxes”) means any and all taxes, charges, fees, duties, contributions,
levies or other similar assessments or liabilities, including income, gross receipts, corporation, ad valorem, premium, value-added,
capital gains, documentary, alternative or add-on minimum, registration, recording, excise, real property, personal property, escheat,
sales, use, license, transfer, withholding, employment, unemployment, social security, business organization, workers compensation, payroll,
profits, severance, stamp, occupation, customs duties, franchise, estimated and other taxes of any kind whatsoever, and any interest,
fines, penalties, assessments or additions to tax.

    	 	51	 

    	 

    

“Tax
Returns” means any return, report, information return or other document (including schedules, attachments or any related or
supporting information and any amended returns) filed or required to be filed with any Governmental Entity charged with the determination,
assessment or collection of any Tax.

“Trade
Control Laws” means all Sanctions Laws, Ex-Im Laws, or the anti-boycott Laws administered by the U.S. Department of Commerce
and the U.S. Department of Treasury’s Internal Revenue Service.

“Transaction
Expenses” means, without duplication, (i) all expenses, fees, liabilities or obligations incurred by the Company in connection
with the preparation, negotiation or execution of this Agreement or the consummation or performance of the transactions contemplated
hereby (including the fees and expenses of any broker, investment banker or financial advisor, and any legal, accounting and consulting
fees and expenses), (ii) all fees, expenses, liabilities and obligations of the Company under or in connection with any severance obligations,
bonuses, equity issuances, termination and change of control arrangements, and similar obligations that are triggered by the consummation
of the transactions contemplated hereby (including the employer’s share of payroll Taxes attributable thereto), (iii) 50% of any
Transfer Taxes, if any, (iv) 50% of the fees payable under the Escrow Agreement, (v) 50% of the fees and expenses in connection with
the R&W Policy, and (v) 50% of the fees and expenses in connection with the D&O Tail Policy.

“Warranty
Liability” shall mean any Liability of the Company arising from any express warranty or breach of warranty claim, guaranty,
indemnity, or other Contract, with respect to any product manufactured, sold or distributed, or any service performed, by the Company
prior to the Closing Date.

8.02       Other
Definitional Provisions. Any reference to any particular Code section or any Law will be interpreted to include any revision of or
successor to that section regardless of how it is numbered or classified.

Article
IX

MISCELLANEOUS

9.01       Amendment
and Waiver. This Agreement may be amended and any provision of this Agreement may be waived; provided that any such amendment or
waiver shall be binding upon a party only if such amendment or waiver is set forth in a writing executed by Purchaser and Seller making
specific reference to this Agreement. No course of dealing between or among any Persons having any interest in this Agreement shall be
deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any party under or by reason
of this Agreement.

    	 	52	 

    	 

    

9.02       Press
Releases and Communications. No press release or public announcement related to this Agreement or the transactions contemplated herein
shall be issued or made by any party hereto (or any Affiliate of a party hereto) without the prior written consent of Purchaser, in which
case (i) Purchaser shall have the right to review such press release, announcement or communication prior to issuance, distribution or
publication to the extent reasonably practicable and (ii) no such release shall include any of the economic terms of this Agreement or
the Ancillary Agreements; provided, however, that Purchaser may, without the prior written consent of Seller, issue or
cause publication of any such press release or public announcement to the extent that Purchaser reasonably determines, after consultation
with legal counsel, such action to be required by applicable Law or by the rules of any stock exchange having jurisdiction over Purchaser
or its Affiliates or any applicable self-regulatory organization, in which event Purchaser will use commercially reasonable efforts to
allow Seller reasonable time to comment on such press release or public announcement in advance of its issuance. For the avoidance of
doubt, the parties acknowledge and agree that Purchaser and any of its Affiliates who is an investment fund may disclose the economic
terms of the transactions contemplated hereunder, this Agreement and the Ancillary Agreements to its Affiliates and any lender and any
current or potential investor in such fund(s) in connection with fundraising, marketing, informational or reporting activities or otherwise
in the ordinary course of such Person’s business so long as the Person to whom such disclosure is made is bound by confidentiality
obligations.

9.03       Expenses.
Except as otherwise expressly provided herein, Seller, on the one hand, and Purchaser, on the other hand, shall pay all of their own
expenses (including attorneys’ and accountants’ fees and expenses and, in the case of the Seller Parties, the expenses of
the Company) in connection with the negotiation of this Agreement, the performance of their obligations hereunder and the consummation
of the transactions contemplated by this Agreement.

9.04       Notices.
All notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement shall be
in writing and shall be deemed to have been given (a) when personally delivered, (b) on the date sent if transmitted via e-mail prior
to 5:00 PM Eastern Time to the e-mail address set out below if confirmation of transmission is received by the sender or no failure message
is generated, (c) on the first Business Day following delivery, if sent by e-mail on a day that is not a Business Day or after 5:00 p.m.
Eastern Time on a Business Day, or (d) the day following the day (except if not a Business Day then the next Business Day) on which the
same has been delivered prepaid to a reputable national overnight air courier service. Notices, demands and communications, in each case
to the respective parties, shall be sent to the applicable address set forth below, unless another address has been previously specified
in writing:

Notices
to Purchaser and the Company:

Douglas Machines Buyer, Inc.

c/o Levine Leichtman Capital Partners, LLC

345 North Maple Drive, Suite 300

Beverly Hills, CA 90210

Attention: David I. Wolmer

Email: dwolmer@llcp.com

 

    	 	53	 

    	 

    

with
copies (which shall not constitute notice) to:

Honigman
LLP

2290 First
National Building

660 Woodward
Avenue

Detroit, MI
48226-3506

Attention:
Joshua F. Opperer

Jacob D. Drouillard

E-mail: JOpperer@honigman.com

JDrouillard@honigman.com

 

Notices
to Seller:

c/o KODA Enterprises
Group, LLC

51 Sawyer Road, Suite 420

Waltham, MA 02453

Attention:
William S. Karol

E-mail: wkarol@koda.com

with
copies (which shall not constitute notice) to:

E-mail: jpeden@koda.com

jhodson@koda.com

Burns &
Levinson LLP

125 High Street

Boston, MA 02110

Attention: Frank A. Segall

Mark
W. Manning

E-mail: fsegall@burnslev.com

mmanning@burnslev.com

Or
to such other address with respect to a party as such party notifies the other in writing as above provided.

9.05       Assignment.
This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns, provided that Seller may not assign or delegate any rights or obligations under this Agreement without
the prior written consent of Purchaser and neither Purchaser nor the Company may assign or delegate any rights or obligations under this
Agreement without the prior written consent of Seller; provided, further that (i) Purchaser may assign (without relieving it of its obligations
under) this Agreement in whole or in part to any of its Subsidiaries or Affiliates, (ii) each of Purchaser and the Company may collaterally
assign its rights under this Agreement to any lender providing financing to Purchaser or, following the Closing, the Company and (iii)
Purchaser may assign its rights under this Agreement, in whole or in part, to any subsequent purchaser of the Company or its Affiliates
or any division thereof or any material portion of its assets (whether such sale is structured as a sale of stock, a sale of assets,
a merger or otherwise). Any purported assignment in violation of the terms hereof shall be null and void ab initio.

    	 	54	 

    	 

    

9.06       Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
Law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable Law, such provision shall be ineffective
only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement, unless the severance of such provision would be in opposition to the parties’ intent with respect to such provision.

9.07       References.
The table of contents and the section and other headings and subheadings contained in this Agreement and the Exhibits hereto are solely
for the purpose of reference, are not part of the agreement of the parties hereto, and shall not in any way affect the meaning or interpretation
of this Agreement or any Exhibit hereto. All references to days or months shall be deemed references to calendar days or months.
All references to “$” shall be deemed references to United States dollars. Unless the context otherwise requires, any reference
to an “Article,” “Section,” “Exhibit,” “Disclosure Schedule” or “Schedule”
shall be deemed to refer to an article of this Agreement, section of this Agreement, exhibit to this Agreement or a schedule to this
Agreement, as applicable. Capitalized terms used in the Schedules and not otherwise defined therein have the meanings given to them in
this Agreement. The words “hereof,” “herein” and “hereunder” and words of similar import referring
to this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. The word “including”
or any variation thereof means “including, without limitation” and shall not be construed to limit any general statement
that it follows to the specific or similar items or matters immediately following it. The phrase “ordinary course of business”
means “ordinary course of business consistent with past practice of the Company.” The phrase “to the extent”
means “the degree by which.” The use of the words “or,” “any” and “either” shall not
be exclusive. Unless the context otherwise clearly indicates, each defined term used in this Agreement shall have a comparable meaning
when used in its plural or singular form. With respect to all materials that are described as having been “made available”,
“provided” or “delivered” (or words or phrases of similar import) to Purchaser, such materials shall be deemed
to have been delivered or made available to Purchaser only if such materials were continuously available to Purchaser and its representatives
in the Intralinks virtual data room for at least two (2) Business Days prior to the execution and delivery of this Agreement and were
not removed on or prior to the date of this Agreement.

9.08       Construction.
The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and
no rule of strict construction shall be applied against any Person. The Schedules have been arranged for purposes of convenience in separately
titled sections; however, each section of the Schedules shall be deemed to incorporate by reference all information disclosed in any
other section of the Schedules to the extent its relevance is reasonably apparent on the face of such disclosure. The specification of
any dollar amount or the inclusion of any item in the representations and warranties contained in this Agreement or the Schedules or
Exhibits is not intended to imply that the amounts, or higher or lower amounts, or the items so included, or other items, are or are
not required to be disclosed (including whether such amounts or items are required to be disclosed as material or threatened) or are
within or outside of the ordinary course of business. The information contained in this Agreement and in the Schedules and Exhibits hereto
is disclosed solely for purposes of this Agreement, and no information contained herein or therein shall be deemed to be an admission
by any party hereto to any third party of any matter whatsoever (including any violation of Law or breach of contract). 

    	 	55	 

    	 

    

9.09       Complete
Agreement. This Agreement and the documents referred to herein (including the Ancillary Agreements) contain the complete agreement
between the parties hereto and supersede any prior understandings, agreements or representations by or between the parties, written or
oral, which may have related to the subject matter hereof in any way. 

9.10       Third-Party
Beneficiaries. Except as otherwise expressly provided herein, nothing expressed or referred to in this Agreement will be construed
to give any Person other than the parties to this Agreement any legal or equitable right, remedy, or claim under or with respect to this
Agreement or any provision of this Agreement.

9.11       Delivery
by Electronic Transmission. This Agreement and any signed agreement entered into in connection herewith or contemplated hereby, and
any amendments hereto or thereto, to the extent signed and delivered by means of DocuSign or by .pdf, .tif, .gif, .jpeg or similar electronic
means, shall be treated in all manner and respects as an original contract and shall be considered to have the same binding legal effects
as if it were the original signed version thereof delivered in person. At the request of any party hereto or to any such contract, each
other party hereto or thereto shall re–execute original forms thereof and deliver them to all other parties. No party hereto or
to any such contract shall raise the use of DocuSign or .pdf, .tif, .gif, .jpeg or similar electronic means to deliver a signature or
the fact that any signature or contract was transmitted or communicated through the use of DocuSign or by .pdf, .tif, .gif, .jpeg or
similar electronic means as a defense to the formation of a contract and each such party forever waives any such defense.

9.12       Counterparts.
This Agreement may be executed in multiple counterparts, any one of which need not contain the signature of more than one party, but
all such counterparts taken together shall constitute one and the same instrument.

9.13       Governing
Law. All claims, controversies, causes of action, issues and questions concerning the construction, validity, interpretation and
enforceability of, arising out of or relating to this Agreement and the Exhibits and Schedules hereto whether sounding in tort, contract
or statute, shall be governed by, and construed in accordance with, the Laws of the State of Delaware, without giving effect to any choice
of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application
of the Laws of any jurisdiction other than the State of Delaware.

9.14       Jurisdiction.

(a)          Except
as otherwise expressly provided in this Agreement and subject to Section 9.15 below, (i) any Proceeding seeking to enforce
any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby
and any Proceeding for recognition and enforcement of any judgment in respect thereof shall be brought, tried and determined in the United
States District Court for the District of Delaware, the Court of Chancery of the State of Delaware or any other court

    	 	56	 

    	 

    

of the State of Delaware, and (ii) each of the parties hereto hereby (A) irrevocably and unconditionally
consents and submits itself and its property to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom)
in any such Proceeding, (B) irrevocably and unconditionally waives, to the fullest extent permitted by Law, any objection which it may
now or hereafter have to the laying of the venue of any such Proceeding in any such court or that any such Proceeding which is brought
in any such court has been brought in an inconvenient forum and (C) agrees that it shall not bring any Proceeding based upon, arising
out of or related to this Agreement or any of the transactions contemplated hereby in any court other than the aforesaid courts. Process
in any such Proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.
Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 9.04 shall
be deemed effective service of process on such party.

9.15       Waiver
of Trial by Jury. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY
OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
TO THE DEALINGS AMONG THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER
NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. EACH PARTY TO THIS AGREEMENT HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT THE PARTIES
TO THIS AGREEMENT MAY FILE A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER
OF THEIR RIGHT TO TRIAL BY JURY.

9.16       Specific
Performance. Each of the parties hereto acknowledges that the rights of each party to consummate the transactions contemplated hereby
are unique and recognizes and affirms that in the event of a breach of this Agreement by any party, money damages may be inadequate and
the non-breaching party may have no adequate remedy at law. Accordingly, the parties agree that such non-breaching party shall have the
right, in addition to any other rights and remedies existing in their favor at law or in equity, to specific performance, injunctive
or other equitable relief in order to enforce their rights under or prevent any violations (whether anticipatory, continuing or future)
of the terms hereof with respect to the transactions contemplated hereby. The foregoing sentence will not be construed as a waiver of
any right such Person may now have or hereafter acquire to monetary damages from the other parties.

[SIGNATURE
PAGES FOLLOW]

    	 	57	 

    	 

    
 

IN
WITNESS WHEREOF, the parties hereto have executed this Membership Interest Purchase Agreement on the date first above written.

 

	PURCHASER:	DOUGLAS
    MACHINES BUYER, INC.

     

    By: _/s/ David I. Wolmer     

    Name: David I. Wolmer

Title: Authorized Person

	 	 

 

 

Signature Page to Stock Purchase Agreement

    	 		 

    	 

    

 

	COMPANY:	DOUGLAS MACHINES CORP.

     

    By:  /s/ Authorized Signatory     

    Name: 

    Title: 

     

	SELLER:	DOUGLAS ACQUISITION COMPANY,
    LLC

     

     

    By:__/s/ Authorized Signatory     

    Name:

    Title:

    

    	 		 

    	 

    

Solely for the purposes of Sections
6.01 through 6.05, 6.10 and 9.14 through 9.16:

 

 

_____________________________________

William Karol

 

_____________________________________

James Peden

 

_____________________________________

William Leaver

WILLIAM S. KAROL FAMILY TRUST
OF 2012

 

 

By:_____________________________________

Name:

Title:

 

KODA ENTERPRISES GROUP, LLC

 

 

By:_____________________________________

Name:

Title:

Signature Page to Stock Purchase Agreement

    	 		 

    	 

    

Exhibit A

Example Net
Working Capital Calculation

 

    	 		 

    	 

    

Annex A

	Holder	Transferred
    Shares	Exchanged
    Shares
	William
    S. Karol Family Trust of 2012	666
    and 2/3 Shares of Common Stock	3,500
    Class A UnitsCNL Strategic Capital, LLC 8-K  

 

Exhibit
10.2

 

 

Execution Version

 

 

 

 

 

NOTE PURCHASE AGREEMENT

dated as of October 7, 2021,

 

by and among

 

DOUGLAS MACHINES BUYER, INC.,

as a Company

 

DOUGLAS MACHINES CORP.,

immediately following the Nautilus Acquisition, and

 

and each other Person who from time to time joins this
Agreement as a borrower,

as a Company,

 

DOUGLAS MACHINES HOLDINGS, LLC, 

as a Guarantor

 

THE PURCHASERS PARTY HERETO,

as Purchasers,

 

and

 

DM STRATEGIC CAPITAL DEBTCO, LLC,

as Agent

 

 

 

$15,000,000 Aggregate Principal Amount

Senior Secured Notes

 

 

 

 

 

 

 

     

    

    

TABLE OF CONTENTS

 

	Section 1	Definitions; Interpretation.	2
	1.1	Definitions.	2
	1.2	Interpretation.	17
	1.3	Company Representative	17
	1.4	Joint and Several Liability	18
	 	 	 
	Section 2	Notes.	19
	2.1	Senior Secured Notes.	19
	2.2	Reserved.	21
	2.3	Prepayment.	21
	2.4	Payment.	23
	 	 	 
	Section 3	Yield Protection.	25
	3.1	Taxes.	25
	3.2	Increased Cost.	27
	3.3	Mitigation of Circumstances; Replacement of Purchasers.	28
	3.4	Conclusiveness of Statements; Survival.	29
	 	 	 
	Section 4	Conditions to Closing by Purchasers.	29
	4.1	Conditions.	29
	 	 	 
	Section 5	Representations and Warranties.	31
	5.1	Organization.	31
	5.2	Authorization; No Conflict.	31
	5.3	Validity; Binding Nature.	31
	5.4	Financial Condition.	32
	5.5	No Material Adverse Effect.	32
	5.6	Litigation.	32
	5.7	Ownership of Properties: Liens.	32
	5.8	Capitalization.	32
	5.9	Pension Plans.	33
	5.10	Investment Company Act.	33
	5.11	No Default.	33
	5.12	Margin Stock.	33
	5.13	Taxes.	33
	5.14	Solvency.	34
	5.15	Environmental Matters.	34
	5.16	Insurance.	34
	5.17	Information.	35
	5.18	Intellectual Property.	35

 

     

    

    

 

	5.19	Restrictive Provisions.	35
	5.20	Labor Matters.	35
	5.21	Related Agreements.	35
	5.22	[Reserved].	36
	5.23	Compliance with Laws.	36
	 	 	 
	Section 6	Affirmative Covenants.	36
	6.1	Information.	36
	6.2	Books; Records; Inspections.	39
	6.3	Maintenance of Property; Insurance.	40
	6.4	Compliance with Laws; Payment of Taxes and Liabilities.	41
	6.5	Maintenance of Existence.	41
	6.6	Employee Benefit Plans.	41
	6.7	Environmental Matters.	42
	6.8	Further Assurances.	42
	6.9	Post-Closing Obligations.	43
	 	 	 
	Section 7	Negative Covenants.	43
	7.1	Debt.	43
	7.2	Liens.	45
	7.3	[Reserved].	47
	7.4	Restricted Payments.	47
	7.5	Mergers; Consolidations; Asset Sales.	49
	7.6	Modification of Organizational Documents.	50
	7.7	Use of Proceeds.	50
	7.8	Transactions with Affiliates.	51
	7.9	Inconsistent Agreements.	51
	7.10	Business Activities.	51
	7.11	Investments.	52
	7.12	Restriction of Amendments to Certain Documents.	54
	7.13	Fiscal Year.	54
	7.14	Financial Covenant.	54
	7.15	Bank Accounts; Account Control Agreements.	54
	7.16	Subsidiaries.	55
	 	 	 
	Section 8	Events of Default; Remedies.	55
	8.1	Events of Default.	55
	8.2	Remedies.	58
	 	 	 
	Section 9	Agent.	58
	9.1	Appointment; Authorization.	58
	9.2	Credit Decision.	59
	9.3	Delegation of Duties.	59
	9.4	Limited Liability.	60
	9.5	Reliance.	61
	9.6	Notice of Default.	61

 

     

    

    

 

	9.7	Indemnification.	61
	9.8	Agent Individually.	62
	9.9	Successor Agent.	62
	9.10	[Reserved].	63
	9.11	Subordinated Debt.	63
	 	 	 
	Section 10	Miscellaneous	63
	10.1	Waiver; Amendments.	63
	10.2	Notices.	64
	10.3	Computations.	64
	10.4	[Reserved].	64
	10.5	[Reserved].	64
	10.6	Marshaling; Payments Set Aside	65
	10.7	Nonliability of Purchasers	65
	10.8	Assignments; Participations	65
	10.9	Confidentiality	67
	10.10	Captions	68
	10.11	Nature of Remedies	68
	10.12	Counterparts	68
	10.13	Severability	69
	10.14	Entire Agreement	69
	10.15	Successors; Assigns	69
	10.16	Governing Law	69
	10.17	Forum Selection; Consent to Jurisdiction	69
	10.18	Waiver of Jury Trial	70
	10.19	Patriot Act	70
	10.20	Representations and Warranties of Purchasers: Purchase for Investment	71
	 	 	 
	Section 11	Indemnification	72
	11.1	Indemnification	72
	11.2	Indemnification Procedures	74
	11.3	Contribution	75
	11.4	Reimbursement of Deal-Related Costs and Expenses	75
	11.5	Costs of Collection	75

 

 

     

    

    

NOTE PURCHASE AGREEMENT

This Note Purchase Agreement
(as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”), dated as of October
7, 2021, is by and among DOUGLAS MACHINES BUYER, INC., a Delaware corporation (“BuyerCo”), and immediately following
the consummation of the Nautilus Acquisition (as defined below), DOUGLAS MACHINES CORP., a Delaware corporation (“Douglas”;
together with BuyerCo, and each other Person who, with the consent of Agent and Company Representative (as defined below), joins in the
execution of this Agreement and agrees to be bound as a Company hereby pursuant to a joinder in form and substance reasonably acceptable
to Agent, are referred to herein individually as a “Company” and collectively as the “Companies”),
the Company Representative (as defined below), DOUGLAS MACHINES HOLDINGS, LLC, a Delaware limited liability company (“Parent”),
the Persons party hereto identified as Purchasers as of the date hereof, and any new or replacement Purchasers becoming parties hereto
from time to time (“Purchasers”), and DM STRATEGIC CAPITAL DEBTCO, LLC, a Delaware limited liability company
(“Debtco”), as agent for all Purchasers (in such capacity, together with its successors and assigns in such capacity,
“Agent”).

WHEREAS, BuyerCo will acquire
100% of the issued and outstanding equity interests of Douglas (the “Nautilus Acquisition”) pursuant to that certain
Stock Purchase Agreement dated as of October 7, 2021 (the “Nautilus Acquisition Agreement”), by and among BuyerCo,
Douglas and Douglas Acquisition Company, LLC, a Delaware limited liability company (the “Seller”), on the other hand;

WHEREAS, promptly upon consummation
of the Nautilus Acquisition on the Closing Date (as hereafter defined) BuyerCo will merge with and into Douglas (the “Merger”),
with Douglas being the surviving entity thereof (the Nautilus Acquisition, the Merger and the other transactions expressly contemplated
by the Nautilus Acquisition Agreement being hereinafter referred to, in their integrated entirety, as the “Closing Date Transactions”);

WHEREAS, BuyerCo has requested
that the Purchasers purchase from BuyerCo, and the Purchasers wish to purchase from BuyerCo, on terms and conditions set forth herein,
Senior Secured Notes Due 2028 in the aggregate original principal amount of $15,000,000 (each a “Senior Secured Note”),
in order to provide funds necessary to (i) refinance and repay certain outstanding principal indebtedness of Douglas (the “Existing
Debt”), (ii) to fund a portion of the Purchase Price (as defined in the Nautilus Acquisition Agreement), and (iii) to pay a
portion of the fees and expenses related to the Nautilus Acquisition, the purchase of the Senior Secured Notes pursuant to this Agreement
and the other Closing Date Transactions contemplated hereunder;

WHEREAS, it is agreed and
acknowledged by the parties hereto that (i) immediately upon consummation of the Merger, by operation of law and pursuant to the terms
of the Merger Agreement, Douglas shall succeed to all of the rights, obligations, liabilities and interests of BuyerCo hereunder and under
the other Investment Documents, and (ii) by executing and upon subsequently delivering this Agreement, Douglas shall join this Agreement
as a Company and borrower hereunder, effective automatically and immediately following the consummation of the Nautilus Acquisition, in
each case without any further documentation or action on the part of Agent, any Purchaser, any Note Party (as hereinafter defined) or
any other Person, and Douglas

     

    

    

shall thereafter (a) be deemed a “Company”
and a “Note Party” for all purposes of this Agreement and the other Investment Documents (as defined below), and (b) be bound,
effective immediately following the consummation of the Nautilus Acquisition, as a “Company” and as a “Note Party”
in respect of all of the obligations, conditions, representations, warranties, covenants and other agreements set forth in this Agreement
and the other Investment Documents to which it is a party;

WHEREAS, each Company desires
to secure all of the Obligations by granting to Agent, for the benefit of Agent and the Secured Parties, a first priority perfected Lien
upon substantially all of such Company’s personal property and real property, subject only to Permitted Liens; and

WHEREAS, Parent, as the
sole stockholder of BuyerCo (and following consummation of the Merger, the sole stockholder of Douglas) is willing to guaranty all of
the Obligations, and to grant to Agent, for the benefit of Agent and the Secured Parties, a perfected Lien upon substantially all of its
respective personal property and real property, including without limitation all of the issued and outstanding capital stock and other
equity interests of BuyerCo (prior to the Merger) and of Douglas (following consummation of the Merger), subject only to Permitted Liens.

NOW THEREFORE, in consideration
of the mutual agreements herein contained, the parties hereto agree as follows:

		Section	1                 
Definitions; Interpretation.

1.1             
Definitions.

When used herein the following terms shall have the following meanings:

“Account”
has the meaning set forth in the Guarantee and Collateral Agreement.

“Account Debtor”
means any Person who is obligated to any Company or any Subsidiary with respect to any Account.

“Acquisition”
means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition
of all or a substantial portion of the assets of a Person, or of all or a substantial portion of any business or division of a Person,
(b) the acquisition of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person, or
otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other
than a Person that is already a Subsidiary).

“Adjusted Working
Capital” means the remainder of (a) the consolidated current assets of the Companies and their respective Subsidiaries less
the amount of cash and cash equivalents included in such consolidated current assets, minus (b) the consolidated current liabilities
of the Companies and their respective Subsidiaries less the amount of consolidated short-term Debt (including current maturities
of long-term Debt) of the Companies and their respective Subsidiaries included in such consolidated current liabilities.

“Affiliate”
of any Person means (a) any other Person which, directly or indirectly, controls or is controlled by or is under common control with such
Person, (b) any executive officer or director of such Person and (c) with respect to any Purchaser, any entity administered or managed
by such Purchaser or an Affiliate or investment advisor thereof which is engaged in

    	 	 2	 

    	 	 

    

making, purchasing, holding or otherwise investing
in commercial loans. A Person shall be deemed to be “controlled by” any other Person if such Person possesses, directly or
indirectly, power to vote 10% or more of the securities (on a fully diluted basis) having ordinary voting power for the election of directors
or managers or power to direct or cause the direction of the management and policies of such Person whether by contract or otherwise.
Unless expressly stated otherwise herein, neither Agent nor any Purchaser shall be deemed an Affiliate of Parent or of any Subsidiary.

“Agent”
means DM Strategic Capital DebtCo, LLC, a Delaware limited liability company, in its capacity as administrative agent for all Purchasers
hereunder, and any successor thereto in such capacity.

“Aggregate Accrual”
has the meaning set forth in Section 2.1.4 hereof.

“Agreement”
has the meaning set forth in the Preamble.

“Approved Fund”
means (a) any fund, trust or similar entity that is advised or managed by (i) Sponsor, (ii) an Investment Affiliate, (iii) a Purchaser,
(iv) an Affiliate of a Purchaser, (v) the same investment advisor that manages a Purchaser or (vi) an Affiliate of an investment advisor
that manages a Purchaser, or (b) any finance company, insurance company or other financial institution which, in each instance, temporarily
warehouses loans for any Purchasers or any Person described in clause (a) above.

“Assignee”
has the meaning set forth in Section 10.8.1 hereof.

“Assignment Agreement”
means an agreement substantially in the form of Exhibit A.

“Base Interest
Rate” has the meaning set forth in Section 2.1.4 hereof.

“Business Day”
means any day on which commercial banks are open for commercial banking business in Los Angeles, California and New York, New York.

“Capital Expenditures”
means all expenditures which, in accordance with GAAP, would be required to be capitalized and shown on the consolidated balance sheet
of the Companies and their respective Subsidiaries, but excluding (i) expenditures made in connection with the replacement, substitution
or restoration of assets to the extent financed (a) from insurance proceeds (or other similar recoveries) paid on account of the loss
of or damage to the assets being replaced or restored, (b) with cash awards of compensation arising from the taking by eminent domain
or condemnation of the assets being replaced or (c) with cash proceeds of Dispositions that are reinvested in accordance with this Agreement,
(ii) expenditures made to fund the purchase price for assets acquired in Permitted Acquisitions, (iii) expenditures financed with any
issuance of equity interests of, or capital contributions to, the Companies that is permitted hereunder and (iv) expenditures reimbursed
by third parties. For purposes of clarification, “Capital Expenditures” shall include the purchase price of equipment or other
fixed assets that are purchased substantially simultaneously with the trade-in of existing assets only to the extent of the gross amount
by which such purchase price exceeds the credit granted by the seller of such assets for the assets being traded in at such time.

“Capital Lease”
means, subject to Section 10.3, with respect to any Person, any lease of (or other agreement conveying the right to use) any real
or personal property by such Person that, in conformity with GAAP, notwithstanding the issuance on February 25, 2016 by the

    	 	 3	 

    	 	 

    

Financial Accounting Standards Board of a new
Accounting Standards Update (ASU), Leases (Topic 842)) is accounted for as a capital lease on the balance sheet of such Person.

“Capital Lease
Obligations” shall mean, with respect to any Person, all liabilities or other obligations for the payment of rent for any property
(whether real, personal or mixed) which has been or is required to be classified or accounted for as a Capital Lease on a consolidated
balance sheet of such Person and its Subsidiaries in accordance with GAAP, notwithstanding the issuance on February 25, 2016 by the Financial
Accounting Standards Board of a new Accounting Standards Update (ASU), Leases (Topic 842)) is accounted for as a capital lease on the
balance sheet of such Person.

“Cash”
means cash on hand, excluding restricted balances or deposits, un-cleared checks and overdrafts, and deposits in transit.

“Cash Equivalent
Investment” means, at any time, (a) any evidence of Debt, maturing not more than one year after such time, issued or guaranteed
by the United States Government or any agency thereof, (b) commercial paper, or corporate demand notes, in each case (unless issued by
a Purchaser or its holding company) rated at least A-1 by Standard & Poor’s Ratings Group or P-1 by Moody’s Investors
Service, Inc., (c) any certificate of deposit (or time deposit represented by a certificate of deposit) or banker’s acceptance maturing
not more than one year after such time, or any overnight Federal Funds transaction that is issued or sold by any Purchaser (or by a commercial
banking institution that is a member of the Federal Reserve System and has a combined capital and surplus and undivided profits of not
less than $500,000,000), (d) any repurchase agreement entered into with any Purchaser (or commercial banking institution of the nature
referred to in clause (c) above) which (i) is secured by a fully perfected security interest in any obligation of the type described in
any of clauses (a) through (c) above and (ii) has a market value at the time such repurchase agreement is entered into of not less than
100% of the repurchase obligation of such Purchaser (or other commercial banking institution) thereunder, (e) money market accounts or
mutual funds which invest exclusively in assets satisfying the foregoing requirements and (f) other short term liquid investments approved
in writing by Agent.

“Cash Interest
Expense” shall mean, for any Person for any period, without duplication and only to the extent deducted in determining Net Income
(Loss), calculated without regard to any limitation on the payment thereof and determined in accordance with GAAP, (a) total consolidated
interest expense of such Person and its Subsidiaries (including interest paid to Affiliates (other than wholly owned Subsidiaries)), whether
paid or accrued, minus (b) to the extent included in total consolidated interest expense in clause (a) above,
any non-cash interest expense, including, without limitation, any interest paid in-kind, amortization of original issue discount, non-cash
losses on hedging agreements and amortization of capitalized upfront costs.

“Change of Control”
means any of the events described in Section 8.1.11 hereof.

“Closing”
has the meaning set forth in Section 2.1.3 hereof.

“Closing Date”
has the meaning set forth in Section 2.1.3 hereof.

“Collateral”
has the meaning set forth in the Guarantee and Collateral Agreement.

“Collateral Access
Agreement” means an agreement in form and substance reasonably satisfactory to Agent pursuant to which a mortgagee or lessor
of real property on which

    	 	 4	 

    	 	 

    

Collateral is stored or otherwise located, or
a warehouseman, processor or other bailee of Inventory or other property owned by any Note Party, acknowledges the Liens of Agent and
waives any Liens held by such Person on any of the assets of the Note Parties, and, in the case of any such agreement with a mortgagee
or lessor, permits Agent reasonable access to any Collateral stored or otherwise located thereon.

“Collateral Documents”
means, collectively, the Guarantee and Collateral Agreement, each Mortgage, any intercreditor agreement governing Debt permitted under
Section 7.1(f) hereof, and each other agreement or instrument pursuant to or in connection with which any Note Party or any other
Person grants a security interest in any Collateral to Agent, for the benefit of Agent and the Secured Parties, each as amended, restated
or otherwise modified from time to time.

“Company”
has the meaning set forth in the preamble hereto.

“Company Representative”
means, initially, BuyerCo, and upon and at all times following the consummation of the Merger, the Company Representative shall refer
to and be deemed to be Douglas, in each case acting in the capacity of representative and agent on behalf of all Companies, as more particularly
set forth in Section 1.3.

“Compliance Certificate”
has the meaning set forth in Section 6.1.6.

“Computation Period”
means each period of four consecutive Fiscal Quarters ending on the last day of a Fiscal Quarter.

“Consolidated Net
Income” means, with respect to the Companies and their respective Subsidiaries for any period, the consolidated net income (or
loss) of the Companies and their respective Subsidiaries for such period, excluding consolidated net income of any Target in a
Permitted Acquisition for any period prior to the consummation of such Permitted Acquisition, non-cash income and expenses resulting from
increases or decreases in expected future payments of Permitted Earn-Outs, any gains or non-cash losses from Dispositions, any extraordinary
gains or extraordinary non-cash losses and any gains or non-cash losses from discontinued operations.

“Contingent Obligation”
means any agreement, undertaking or arrangement by which any Person guarantees, endorses or otherwise becomes or is contingently liable
upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to or otherwise to invest
in a debtor, or otherwise to assure a creditor against loss) any indebtedness, obligation or other liability of any other Person (other
than by endorsements of instruments in the course of collection), or guarantees the payment of dividends or other distributions upon the
shares of any other Person. The amount of any Person’s obligation in respect of any Contingent Obligation shall (subject to any
limitation set forth therein) be deemed to be the principal amount of the debt, obligation or other liability supported thereby.

“Controlled Group”
means all members of a controlled group of corporations and all members of a controlled group of trades or businesses (whether or not
incorporated) under common control which, together with a Note Party, are treated as a single employer under Section 414 of the IRC or
Section 4001 of ERISA.

“Debt”
of any Person means, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all indebtedness evidenced by bonds,
debentures, notes or similar

    	 	 5	 

    	 	 

    

instruments (including, without limitation,
any notes issued to sellers in connection with an Acquisition), (c) all obligations of such Person as lessee under Capital Leases which
have been or should be recorded as liabilities on a balance sheet of such Person in accordance with GAAP, (d) all obligations of such
Person to pay the deferred purchase price of property or services (excluding (i) trade accounts payable and accrued expenses, in each
case, incurred in the ordinary course of business and (ii) earn-outs), (e) all indebtedness not already included in clause (d) and secured
by a Lien on the property of such Person, whether or not such indebtedness shall have been assumed by such Person (with the amount thereof
being the lesser of the amount of such obligations or the fair market value of such property), (f) all obligations, contingent or otherwise,
with respect to letters of credit (whether or not drawn), banker’s acceptances and surety bonds issued for the account of such Person,
(g) all Hedging Obligations of such Person, (h) all Contingent Obligations of such Person, (i) all non-compete payment obligations, earn-outs
and similar payment obligations, (j) all indebtedness of any partnership of which such Person is a general partner, and (k) all obligations
of such Person under any synthetic lease transaction.

“Default”
means any event that, if it continues uncured, will, with the lapse of time or the giving of notice or both, constitute an Event of Default.

“Default Interest
Rate” has the meaning set forth in Section 2.1.4 hereof

“Disposition”
means, as to any asset of any Note Party, (a) any sale, lease, assignment or other transfer of the ownership interest therein or exclusive
right to possession thereof (other than to the Companies or any of their Wholly-Owned Domestic Subsidiaries), (b) any loss or substantial
destruction thereof or (c) any condemnation, confiscation, requisition, seizure or taking thereof, in each case, excluding (i) Dispositions
in any Fiscal Year, the Net Cash Proceeds of which do not in the aggregate exceed $500,000, and (ii) the sale or other transfer of Inventory
in the ordinary course of business, and in each case other than such sales, transfers or other occurrences permitted under Section
7.5(b)(i), (iii) - (v) and (vii) - (xi).

“Disqualified
Stock” means any capital stock or other equity interest of a Person which, by its terms (or by the terms of any security
into which it is convertible or for which it is exchangeable), or upon the happening of any event, fund obligation or otherwise, (a)
is redeemable at the option of the holder thereof (whether described as a “put option” or otherwise), in whole or in
part on or prior to the date that is one hundred eighty (180) days after the Maturity Date, (b) is convertible into or exchangeable
for (i) debt securities or (ii) any capital stock or other equity interest referred to in (a) above on or prior to the date that is
one hundred eighty (180) days after the Maturity Date, or (c) is entitled to receive a mandatory dividend or distribution in cash or
other property on or prior to the date that is one hundred eighty (180) days after the Maturity Date, other than (A) in the case of
clause (c), dividends or distributions (x) for taxes attributable to the operations of the business of such Person or (y) in the
form of equity interests not constituting Disqualified Stock and (B) in the case of clauses (a), (b) and (c), if any such
redemption, conversion, exchange, dividend or distribution occurs solely (x) as the result of a change of control event or asset
sale or other Disposition or casualty or condemnation event (so long as any rights of the holders thereof to require the redemption,
conversion, exchange, dividend or distribution thereof upon the occurrence of such a change of control event or asset sale or other
Deposition or casualty or condemnation event are expressly subject to the prior Payment in Full of the Obligations) or (y) with
respect to any capital stock that is issued pursuant to a plan for the benefit of employees of Douglas or any of its Subsidiaries or
by any such plan to such employees, as a result of such actions necessary to satisfy applicable statutory or regulatory
obligations.

    	 	 6	 

    	 	 

    

“Dollar”
and “$” mean lawful money of the United States of America.

“Domestic Subsidiary”
means any Subsidiary that is incorporated or organized under the laws of a State within the United States of America or the District of
Columbia, excluding any Excluded Subsidiary.

“EBITDA”
shall mean, for any period, with respect to any Person and its Subsidiaries on a consolidated basis and in accordance with GAAP:

(a)              
Net Income (Loss) for such period; plus,

(b)              
without duplication and to the extent deducted in calculating Net Income (Loss), the sum of

(i)                
interest expense for such period (including all Cash Interest Expense and all non-cash interest expense);

(ii)             
the amount of income taxes and depreciation and amortization expenses for such period;

(iii)           
the costs and expenses incurred in connection with the transactions contemplated by the Investment Documents and the Related Agreements
during such period;

(iv)            
management, consulting, servicing, advisory or other similar fees paid to Sponsor, LLCP or any other Investment Affiliate during
such period, to the extent permitted by Section 7.4;

(v)              
the aggregate amount of all other non-cash expenses, losses and charges reducing Net Income (Loss) (including any changes resulting
from purchase accounting, non-cash compensation charges, including any such non-cash charges arising from stock options, restricted stock
grants or other equity incentive plans, or the non-cash write-off of goodwill, intangibles and long-lived assets but excluding any non-cash
charge that results in an accrual of a reserve for cash charges in any future period and write-offs of inventory or accounts receivable)
for such period;

(vi)            
all documented costs, fees, expenses, charges and any one time payments made to any Person that is not an Affiliate of the Company
or any of its Subsidiaries during such period in connection with any issuance of capital stock, recapitalization, reorganization, Disposition,
or issuance of Debt, in each case, permitted hereunder;

(vii)         
all documented costs and expenses of the Agent during such period in respect of the Agent’s administration of the Investment
Documents;

(viii)       
any extraordinary, non-recurring or unusual non-cash losses of such Person or any of its Subsidiaries for such period (including,
without limitation, the mark-to-market of any earnouts);

    	 	 7	 

    	 	 

    

(ix)            
 extraordinary or non-recurring charges, expenses or losses acceptable to the Agent, including, without limitation, (A) severance
costs, (B) non-recurring restructuring and integration costs (including one-time set-up costs), and (C) non-recurring litigation and settlement
costs and expenses; provided that the aggregate amount added back to EBITDA pursuant to this clause (ix) for unusual or
non-recurring charges, expenses or losses for any measurement period shall not exceed 10% of consolidated EBITDA for such measurement
period (calculated prior to giving effect to any adjustment pursuant to this clause (ix)); and

(x)              
(A) all fees, costs and expenses incurred within one year of the Closing Date in connection with the transactions contemplated
by this Agreement, the other Investment Documents, the Related Agreements and any Related Transactions, (B) all fees, costs and expenses
incurred in connection with Permitted Acquisitions, permitted investments, sale processes and equity issuances and other transactions
permitted under the Investment Documents (whether or not consummated, in each case to the extent reasonable, and to the extent paid on
the date consummated or within one year of consummation, abandonment or opening thereof), and (C) all fees, costs and expenses incurred
in connection with the prepayment or amendment of, or refinancing of, indebtedness (whether or not any such amendment or refinancing is
consummated) including, without limitation, the Senior Secured Note, in each case above, to the extent acceptable to the Agent;

(xi)            
any charges, costs, expenses and payments related to earnouts and comparable deferred payment obligations;

(xii)         
 (A) salaries, wages, commissions, employment compensation and related expenses paid to any employee, officer or manager whose
business function, title, role or job description overlaps with and is largely redundant or duplicative of another employee, officer or
manager then employed by or on behalf of a Company; and (B) non-recurring and unusual expenses (including legal expenses) incurred by
the Note Parties (or any of them) associated with recruitment of management (including one-time bonuses, retention, recruiting fees, relocation
expenses and signing bonuses in connection therewith) or separation of employees;

(xiii)       
such other charges, costs, expenses and payments as Agent may approve in its sole discretion; minus,

(c)              
without duplication and to the extent included in calculating Net Income (Loss), any extraordinary or unusual income or gains of
such Person and its Subsidiaries for such period.

“Environmental
Claims” means all claims, however asserted, by any governmental, regulatory or judicial authority or other Person alleging potential
liability or responsibility for violation of any Environmental Law, or for the release of Hazardous Substances to or affecting the environment
or any Person or property.

“Environmental
Laws” means all present or future federal, state or local laws, statutes, common law duties, rules, regulations,
ordinances and codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of,
and agreements with, any Governmental Authority, in each case relating to any matter arising out of or relating to health and
safety, or pollution or protection of the environment or workplace, including any of the foregoing relating to the presence, use,
production, generation, handling, transport, treatment, storage, disposal, distribution, discharge, release, control or cleanup of
any Hazardous Substance.

    	 	 8	 

    	 	 

    

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

“Event of Default”
means any of the events described in Section 8.1 hereof.

“Excluded Issuance”
means the issuance of equity securities (other than Disqualified Stock) (a) by Parent (i) to members of the management, employees or directors
of any Note Party, the proceeds of which are immediately contributed by Parent to the Companies (whether as a contribution in respect
of existing equity securities or purchase price in respect of the issuance of new equity securities by Parent), (ii) to any Person the
proceeds of which are (1) immediately contributed by Parent to the Companies (whether as a contribution in respect of existing equity
securities or purchase price in respect of the issuance of new equity securities by Parent) and the proceeds of which will be and actually
are used, within sixty (60) days following the issuance thereof to fund Permitted Acquisitions, Capital Expenditures or Permitted Earn-Outs
or (2) used within sixty (60) days following the issuance thereof to redeem, repurchase or otherwise acquire equity interests of Parent
from then existing equity holders of Parent, (iii) to any Person the proceeds of which will be and actually are used, within sixty (60)
days following the issuance thereof to fund the repurchase of equity securities of Parent held by former members of management, employees
or directors of any Note Party, (iv) in connection with an employee equity plan or employee profits interest plan or exercise of employee
equity options, or (v) so long as no Event of Default is existing or would result therefrom, to Sponsor, any Investment Affiliates or
any other equity holder of Parent as of the Closing Date, the proceeds of which are immediately contributed by Parent to the Companies
(whether as a contribution in respect of existing equity securities or purchase price in respect of the issuance of new equity securities
by Parent), or (b) by Douglas to Parent. Notwithstanding the foregoing, in no event shall the issuance of Equity Cure Securities be deemed
to constitute an Excluded Issuance.

“Excluded Subsidiary”
means (a) any Domestic Subsidiary of a Foreign Subsidiary and (b) any Domestic Subsidiary described in clause (b) of the definition of
Foreign Subsidiary.

“Excluded Taxes”
has the meaning set forth in Section 3.1(a) hereof.

“Exempt Accounts”
means any deposit accounts, securities accounts or other similar accounts (i) into which there is deposited no funds other than those
intended solely to cover wages for employees of the Note Parties for a period of service no longer than two weeks at any time (and related
contributions to be made on behalf of such employees to health and benefit plans) plus balances for outstanding checks for wages from
prior periods; (ii) constituting employee withholding accounts and contain only funds deducted from pay otherwise due to employees for
services rendered to be applied toward the tax obligations of such employees; and (iii) other than the accounts set forth in the preceding
clauses (i) and (ii), in which there is not maintained at any point in time funds on deposit greater than $100,000 in the aggregate for
all such accounts.

“Existing Debt”
has the meaning set forth in the Recitals hereto.

“Extraordinary
Receipt” means any cash received by or paid to or for the account of any Note Party not in the ordinary course of business,
including, but not limited to, (i) (A)  United States, state or local tax refunds for taxable periods beginning after the date hereof
(other than

    	 	 9	 

    	 	 

    

amounts automatically applied to future tax
payments or representing overpayments of estimated taxes for the current or immediately preceding tax year and other than any Tax refunds
paid or payable to Seller pursuant to Section 6.07(i) of the Nautilus Acquisition Agreement), (B) pension plan reversions, (C) proceeds
of insurance to the extent such proceeds (1) are not used and permitted to be used by the applicable Note Party or the applicable
Subsidiary to repair, replace or restore property in accordance with the terms hereof, or (2) exceed the out-of-pocket amount of
damages incurred by the applicable Note Party or Subsidiary in connection with any matter covered by any liability insurance policy, (D) condemnation
awards (and payments in lieu thereof) to the extent not used and permitted to be used to repair, replace or restore property in accordance
with the terms hereof, (E) judgments, proceeds of settlements or other consideration of any kind in connection with any cause of
action to the extent such proceeds exceed the damages incurred by the applicable Note Party or Subsidiary in connection with any such
matter, (F) indemnity payments to the extent such proceeds exceed the damages incurred by the applicable Note Party or Subsidiary
in connection with any such matter, or (G)  purchase price and other monetary adjustments made in connection with any Acquisition
or indemnification payments made in connection with any Acquisition; provided, that Extraordinary Receipts shall exclude (a) working
capital adjustments in connection with any Acquisition, (b) any single or related series of amounts received in an aggregate amount less
than $500,000, (c) indemnification payments received as reimbursement for any payment previously made, or as compensation for any loss,
cost or expense previously incurred, in each case, by Parent or any of its Subsidiaries and (d) insurance proceeds.

“FATCA”
means Sections 1471 through 1474 of the IRC as of the date of this Agreement (or any amended or successor statutes that are substantially
comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any
agreements entered into pursuant to Section 1471(b)(1) of the IRC, and any fiscal or regulatory legislation, rules, or practices adopted
pursuant to any intergovernmental agreement, treaty, or convention among Governmental Authorities and implementing such Sections of the
IRC.

“FEMA”
means the Federal Emergency Management Agency, a component of the U.S. Department of Homeland Security that administers the National Flood
Insurance Program.

“FIRREA”
means the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended.

“First Tier Foreign
Subsidiary” means a Foreign Subsidiary more than fifty percent (50%) of the voting capital stock or other equity interests (directly
or through ownership of capital stock or other equity interests) of which is held directly by a Note Party or indirectly by a Note Party
through one or more Domestic Subsidiaries.

“Fiscal Quarter”
means a fiscal quarter of a Fiscal Year.

“Fiscal Year”
means the fiscal year of the Companies and their respective Subsidiaries, which period shall be the 12-month period ending on December
31 of each year.

“Flood Insurance”
means, for any owned real property located in a Special Flood Hazard Area, Federal Flood Insurance or private insurance that meets the
requirements set forth by FEMA in its Mandatory Purchase of Flood Insurance Guidelines. Flood Insurance shall be in an amount equal to
the full, unpaid balance of the Notes and any prior Liens on the real property up

    	 	 10	 

    	 	 

    

to the maximum policy limits set under the
National Flood Insurance Program, or as otherwise required by Agent, with deductibles not to exceed $50,000.

“Foreign Subsidiary”
means (a) any Subsidiary that is not incorporated or organized under the laws of a State within the United States of America or the District
of Columbia or (b) any Subsidiary that is incorporated or organized under the laws of a State within the United States of America or the
District of Columbia substantially all of the assets of which consist of the capital stock or other equity interests of one or more Subsidiaries
described in clause (a) that are “controlled foreign corporations” within the meaning of Section 957 of the IRC.

“FRB”
means the Board of Governors of the Federal Reserve System or any successor thereto.

“GAAP”
means generally accepted accounting principles in effect in the United States of America set forth from time to time in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements
of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting
profession), which are applicable to the circumstances as of the date of determination.

“Governmental Authority”
means any nation or government, any state or other political subdivision thereof, and any agency, branch of government, department or
Person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any corporation
or other Person owned or controlled (through stock or capital ownership or otherwise) by any of the foregoing, whether domestic or foreign.
Government Authority shall include any agency, branch or other governmental body charged with the responsibility and/or vested with the
authority to administer and/or enforce any applicable laws.

“Guarantee and
Collateral Agreement” means the Guarantee and Collateral Agreement dated as of the Closing Date by each Note Party signatory
thereto in favor of Agent for the benefit of the Secured Parties, as amended from time to time.

“Guarantor”
means Parent and shall include each other Person that executes and delivers a joinder to the Guarantee and Collateral Agreement to the
Secured Parties after the Closing.

“Hazardous Substances”
means hazardous waste, hazardous substance, pollutant, contaminant, toxic substance, oil, hazardous material, chemical or other substance
regulated by any Environmental Law.

“Hedging Obligation”
means, with respect to any Person, any liability of such Person under any interest rate, currency or commodity swap agreement, cap agreement
or collar agreement, and any other agreement or arrangement designed to protect a Person against fluctuations in interest rates, currency
exchange rates or commodity prices. The amount of any Person’s obligation in respect of any Hedging Obligation shall be deemed to
be the incremental obligation that would be reflected in the financial statements of such Person in accordance with GAAP.

“Indemnified Parties”
has the meaning set forth in Section 11 hereof.

“Indemnified Taxes”
has the meaning set forth in Section 3.1(a) hereof.

    	 	 11	 

    	 	 

    

       “Interest
Expense” means for any period the consolidated interest expense of Parent, the Companies and their respective Subsidiaries for
such period (including all imputed interest on Capital Leases, but excluding any amortization related to deferred financing fees, costs
or expenses to the extent required to be included in interest expense under GAAP).

“Interest Payment
Date” has the meaning set forth in Section 2.1.4 hereof.

“Inventory”
has the meaning set forth in the Guarantee and Collateral Agreement.

“Investment”
means, with respect to any Person, (a) the purchase of any debt or equity security of any other Person, (b) the making of any loan or
advance to any other Person, (c) becoming obligated with respect to a Contingent Obligation in respect of obligations of any other Person
(other than travel and similar advances to employees in the ordinary course of business) or (d) the making of an Acquisition.

“Investment Affiliate”
means any fund or investment vehicle that (a) is organized by Sponsor or by Levine Leichtman Capital Partners, LLC for the purpose of
making equity or debt investments in one or more companies and (b) is controlled by, or under common control with, either Sponsor or Levine
Leichtman Capital Partners, LLC. For purposes of this definition “control” means the power to direct or cause the direction
of management and policies of a Person, whether by contract or otherwise.

“Investment Documents”
means this Agreement, the Notes, the Collateral Documents and all documents, instruments and agreements delivered by a Note Party in connection
with the foregoing (excluding any documents, instruments or agreements to the extent pertaining to Agent’s or any Purchaser’s
equity investment in Parent).

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

“Legal Costs”
means, with respect to any Person, (a) all reasonable and documented out-of-pocket fees and charges of any counsel, accountants, auditors,
appraisers, consultants and other professionals to such Person and (b) all documented out-of-pocket court costs.

“Lien”
means, with respect to any Person, any interest granted by such Person in any real or personal property, asset or other right owned or
being purchased or acquired by such Person which secures payment or performance of any obligation and shall include any mortgage, lien,
encumbrance, charge or other security interest of any kind, whether such interest arises by contract, as a matter of law, by judicial
process or otherwise.

“LLCP”
means Levine Leichtman Capital Partners, LLC.

“Management Agreement”
means that certain Management Agreement dated as of October ___, 2021, by and among Parent, Douglas, CNL Strategic Capital Management,
LLC and LLCP, as amended from time to time.

“Margin Stock”
means any “margin stock” as defined in Regulation T, U or X of the FRB.

“Material Adverse
Effect” means (a) a material adverse change in, or a material adverse effect upon, the financial condition, operations, assets,
business, or properties of the Note Parties taken as a whole, (b) a material impairment of the ability of any Note Party to perform any
of its Obligations under any Investment Document or (c) a material adverse effect upon any substantial portion of the Collateral under
the Collateral Documents or upon the legality,

    	 	 12	 

    	 	 

    

validity, binding effect or enforceability against
any Note Party of any Investment Document or the perfection or priority of any Lien granted to Agent, for the benefit of the Secured Parties,
under any Collateral Document.

“Maturity Date”
means October ___, 2028.

“Maximum Accrual”
has the meaning set forth in Section 2.1.4 hereof.

“Merger Agreement”
means the Agreement and Plan of Merger dated as of the Closing Date, by and between BuyerCo and Douglas.

“Mortgage”
means a mortgage, deed of trust, leasehold mortgage or similar instrument granting Agent a Lien on a real property interest of any Note
Party, each as amended, restated or otherwise modified from time to time.

“Multiemployer
Pension Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which the Companies or any member of
the Controlled Group may have any liability.

“National Flood
Insurance Program” means the program created by the U.S. Congress pursuant to the National Flood Insurance Act of 1968 and the
Flood Disaster Protection Act of 1973, as revised by the National Flood Insurance Reform Act of 1994, that mandates the purchase of flood
insurance to cover real property improvements located in Special Flood Hazard Areas in participating communities and provides protection
to property owners through a Federal insurance program.

“Nautilus Acquisition”
has the meaning set forth in the Recitals.

“Nautilus Acquisition
Agreement” has the meaning set forth in the Recitals.

“Net Cash Proceeds”
means:

(a)       with
respect to any Disposition, the aggregate cash proceeds (including cash proceeds received pursuant to policies of insurance and by way
of deferred payment of principal pursuant to a note, installment receivable or otherwise, but only as and when received) received by any
Note Party pursuant to such Disposition net of (i) the reasonable direct fees, costs and expenses relating to such Disposition (including
sales commissions and legal, accounting and investment banking fees, commissions and expenses), (ii) any portion of such proceeds deposited
in an escrow account pursuant to the documentation relating to such Disposition (provided that such amounts shall be treated as Net Cash
Proceeds upon their release from such escrow account to the applicable Note Party), (iii) taxes paid or reasonably estimated by the Companies
to be payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements),
(iv) amounts required to be applied to the repayment of any Debt secured by a Lien that has priority over the Lien of Agent on the asset
subject to such Disposition and (v) (A) with respect to any Disposition described in clause (a) of the definition thereof, all money that
the Company Representative notifies Agent will be applied within one hundred eighty (180) days to replace such assets with fixed or capital
assets used or useful in the business of a Company, and (B) with respect to any Disposition described in clause (b) or (c) of the definition
thereof, all money that the Company Representative notifies Agent will be applied within one hundred eighty (180) days to repair, replace
or reconstruct damaged property or property affected by

    	 	 13	 

    	 	 

    

loss, destruction, damage, condemnation,
confiscation, requisition, seizure or taking; provided that in the case of clauses (A) and (B), any portion of such monies not so applied
within such one hundred eighty (180) day period shall promptly be applied to the prepayment of the Notes in accordance with Section
2.3.2(a)(i);

(b)       with
respect to any issuance of equity securities (other than an Excluded Issuance), the aggregate cash proceeds received by Parent, the Companies
or any Subsidiary pursuant to such issuance, net of the reasonable direct fees, costs and expenses relating to such issuance (including
reasonable sales and underwriter’s commission); and

(c)       with
respect to any Extraordinary Receipt, the aggregate cash proceeds received by any Note Party pursuant to such Extraordinary Receipt net
of (i) the reasonable and direct fees, costs and expenses incurred in obtaining such Extraordinary Receipt (including legal and accounting
expenses), (ii) taxes paid or reasonably estimated by the Companies to be payable as a result thereof (after taking into account any available
tax credits or deductions and any tax sharing arrangements), and (iii) with respect to indemnification payments received by a Note Party,
the amount of such indemnification payment to the extent that such amount is (A) intended by the Companies to be applied (and actually
is so applied) within one-hundred eighty (180) days for purposes of remedying the condition giving rise to such claim for indemnification
together with reasonable fees, costs and expenses related thereto or (B) payable to a third party.

“Net Income (Loss)”
shall mean, for any Person for any period, net income (loss) after Taxes of such Person and its Subsidiaries on a consolidated basis for
such period taken as a single accounting period, all computed in accordance with GAAP.

“Note Party”
means each Company and each Guarantor.

“Notes”
means the Senior Secured Notes and (ii) any other notes issued pursuant to this Agreement.

“Obligations”
means all liabilities, indebtedness and obligations (monetary (including post-petition interest, allowed or not) or otherwise) of any
Note Party under this Agreement, any other Investment Document or Collateral Document or any other document or instrument executed in
connection herewith or therewith, in each case, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent,
now or hereafter existing, or due or to become due.

“Operating Lease”
means any lease of (or other agreement conveying the right to possession or use of) any real or personal property by Parent, any Company
or any Subsidiary of any Company, as lessee, other than any Capital Lease.

“Paid in Full”,
“Pay in Full” or “Payment in Full” means, with respect to any Obligations, the payment in full in
cash of all such Obligations (other than contingent indemnification or expense reimbursement obligations to the extent no claim giving
rise thereto has been asserted).

    	 	 14	 

    	 	 

    

       “Parent
LLC Agreement” means that certain Limited Liability Company Agreement of Parent dated as of October 7, 2021.

“Participant”
has the meaning set forth in Section 10.8.2 hereof.

“Participant Register”
has the meaning set forth in Section 10.8.2 hereof.

“PBGC”
means the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

“Pension Plan”
means a “pension plan”, as such term is defined in Section 3(2) of ERISA, which is subject to Title IV of ERISA (other than
a Multiemployer Pension Plan), and to which the Companies or any member of the Controlled Group may have any liability, including any
liability by reason of having been a substantial employer within the meaning of Section 4063 of ERISA at any time during the preceding
five years, or by reason of being deemed to be a contributing sponsor under Section 4069 of ERISA.

“Permitted Acquisition”
means any Acquisition after the Closing Date by any Company or any Note Party that is a Wholly-Owned Domestic Subsidiary of any Company
of (i) all or substantially all of the assets of a Person, or all or substantially all of any business or division of a Person or (ii)
no less than 100% of the capital stock, partnership interests, membership interests or equity of any Person, in each case to the extent
that:

(a)       each
of the conditions precedent set forth in Annex III shall have been satisfied in a manner satisfactory to Agent and Required Purchasers
unless otherwise waived in writing by Agent and Required Purchasers;

(b)       such
Acquisition shall not be hostile and shall have been approved by the board of directors (or other similar body) and/or the stockholders
or other equity holders of the Target; and

(c)       no
Default or Event of Default is in existence or would occur after giving effect to such Acquisition.

“Permitted Earn-Outs”
means, with respect to any Person, obligations of such Person arising from a Permitted Acquisition which are payable based on the achievement
of specified financial results over time and (i) are subject to subordination terms (or a subordination agreement in favor of Agent and
Purchasers) acceptable to Agent in its reasonable discretion, which subordination terms (or subordination agreement) shall, unless otherwise
agreed to by Agent in its sole discretion, provide for, in each case so long as an Event of Default has occurred and is continuing, unlimited
payment blockage and unlimited standstill provisions, and (ii) provide for a cap on the maximum amount payable in connection with such
Permitted Earn-Out.

“Permitted Liens”
means Liens permitted by Section 7.2 hereof.

“Permitted Seller
Debt” means unsecured Debt incurred in accordance with Section 7.1(h) and in connection with a Permitted Acquisition,
payable to the seller in connection therewith and containing subordination terms (or subject to a subordination agreement in favor of
Agent and Purchasers) and other terms and conditions acceptable to Agent in its reasonable discretion, which subordination terms (or subordination
agreement) shall, unless otherwise agreed to by Agent in its sole discretion, provide for, in each case so long as an Event of Default
has occurred and is continuing, unlimited payment blockage and unlimited standstill provisions.

    	 	 15	 

    	 	 

    

       “Person”
means any natural person, corporation, partnership, trust, limited liability company, association, Governmental Authority or unit, or
any other entity, whether acting in an individual, fiduciary or other capacity.

“Prepayment Premium”
has the meaning set forth in Section 2.3.1(a) hereof.

“Pro Rata Share
of the Senior Secured Notes” means, with respect to any Purchaser, the applicable percentage (as adjusted from time to time
in accordance with the terms hereof) specified opposite such Purchaser’s name on Annex I which corresponds to the Senior
Secured Notes.

“Purchase Price”
has the meaning set forth in Section 2.1.2 hereof.

“Purchasers”
has the meaning set forth in the Preamble.

“Related Agreements”
means the Nautilus Acquisition Agreement, the Merger Agreement and the other agreements, instruments and documents executed in connection
therewith.

“Related Transactions”
means the Closing Date Transactions and the other transactions contemplated by the Related Agreements.

“Required Purchasers”
means, at any time, Purchasers holding more than fifty percent (50%) of the sum of the then aggregate outstanding principal balance of
the Notes.

“Responsible Officer”
means any person holding any of the following offices of a Note Party: (i) chief executive officer, president, chief financial officer,
and, if there is no chief financial officer, the controller.

“Restricted Payment”
has the meaning set forth in Section 7.4 hereof.

“Secured Parties”
means Agent and each Purchaser.

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, all as the same shall be in effect
at the time.

“Senior Secured
Note” means a promissory note substantially in the form of Exhibit B as such note may be amended, restated, supplemented
or otherwise modified from time to time in accordance with the terms hereof.

“Special Flood
Hazard Area” means an area that FEMA’s current flood maps indicate has at least a one percent (1%) chance of a flood equal
to or exceeding the base flood elevation (a 100-year flood) in any given year.

“Specified Event
of Default” means an Event of Default arising under Sections 8.1.1, 8.1.3, 8.1.4(a) (but solely with respect
to noncompliance with 8.1.4(b) (but solely with respect to noncompliance with Sections 6.1.1, 6.1.2 or 6.1.3).

“Sponsor”
means CNL Strategic Capital, LLC, a Delaware limited liability company.

“Subordinated Debt”
means (a) any Permitted Earn-Out, (b) any Permitted Seller Debt, and (c) any other unsecured Debt of Parent, a Company or a Subsidiary
which has subordination terms, covenants, pricing and other terms which have been approved in writing by Required Purchasers and which
has been confirmed in writing by Required Purchasers as constituting Subordinated Debt.

    	 	 16	 

    	 	 

    

       “Subsidiary”
means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which such Person owns, directly
or indirectly, such number of outstanding shares or other equity interests as to have more than 50% of the ordinary voting power for the
election of directors or other managers of such corporation, partnership, limited liability company or other entity. Unless the context
otherwise requires, each reference to Subsidiaries herein shall be a reference to Subsidiaries of Parent.

“Target”
means the Person, or business or substantially all of the assets of a Person, acquired in an Acquisition.

“Taxes”
has the meaning set forth in Section 3.1(a) hereof.

“Total Leverage
Ratio” shall mean, with respect to the Parent and its Subsidiaries for any period, the ratio of (a) total Debt of the Parent
and its Subsidiaries outstanding at the end of such period to (b) EBITDA of the Parent and its Subsidiaries for such period.

“U.S. Person”
shall mean any Person who is a “United States person” as defined in Section 7701(a)(30) of the IRC.

“Wholly-Owned Domestic
Subsidiary” means a Wholly-Owned Subsidiary that is a Domestic Subsidiary.

“Wholly-Owned Subsidiary”
means, as to any Person, another Person all of the equity interests of which (except directors’ qualifying shares) are at the time
directly or indirectly owned by such Person and/or another Wholly-Owned Subsidiary of such Person.

1.2             
Interpretation.

In the case of this Agreement and each other
Investment Document, (a) the meanings of defined terms are equally applicable to the singular and plural forms of the defined terms; (b)
Annex, Exhibit, Schedule and Section references are to such Investment Document unless otherwise specified; (c) the term “including”
is not limiting and means “including but not limited to”; (d) in the computation of periods of time from a specified date
to a later specified date, the word “from” means “from and including”; the words “to” and “until”
each mean “to but excluding”, and the word “through” means “to and including”; (e) unless otherwise
expressly provided in such Investment Document, (i) references to agreements and other contractual instruments shall be deemed to include
all subsequent amendments and other modifications thereto, but only to the extent such amendments and other modifications are not prohibited
by the terms of any Investment Document, and (ii) references to any statute or regulation shall be construed as including all statutory
and regulatory provisions amending, replacing, supplementing or interpreting such statute or regulation; (f) this Agreement and the other
Investment Documents may use several different limitations, tests or measurements to regulate the same or similar matters, all of which
are cumulative and each shall be performed in accordance with its terms; and (g) this Agreement and the other Investment Documents are
the result of negotiations among and have been reviewed by counsel to Agent, the Companies, Purchasers and the other parties hereto and
thereto and are the products of all parties; accordingly, they shall not be construed against Agent or Purchasers merely because of Agent’s,
Agent’s or Purchasers’ involvement in their preparation.

1.3             
Company Representative. Each Company hereby designates BuyerCo prior to the consummation of the Nautilus Acquisition and
Douglas after consummation of the Nautilus

    	 	 17	 

    	 	 

    

Acquisition and Merger, as its representative
and agent on its behalf (in such capacity, the “Company Representative”) for the purposes of selecting interest rate
options, giving and receiving all other notices and consents hereunder or under any of the other Investment Documents and taking all other
actions (including in respect of compliance with covenants) on behalf of any Company or the Companies under the Investment Documents.
Douglas hereby accepts such appointment and, by its execution and delivery of this Agreement, Douglas upon consummation of the Nautilus
Acquisition, confirms and ratifies its role as Company Representative. Notwithstanding anything to the contrary contained in this Agreement,
no Company other than Company Representative shall be entitled to take any of the foregoing actions. Agent and each Purchaser may regard
any notice or other communication pursuant to any Investment Document from Company Representative as a notice or communication from all
of the Companies, and may give any notice or communication required or permitted to be given to any Company or all of the Companies hereunder
to Company Representative on behalf of such Company or all of the Companies. Each Company agrees that each notice, election, representation
and warranty, covenant, agreement and undertaking made on its behalf by Company Representative shall be deemed for all purposes to have
been made by such Company and shall be binding upon and enforceable against such Company to the same extent as if the same had been made
directly by such Company.

1.4             
Joint and Several Liability. Each Company acknowledges that it is jointly and severally liable for all of the Obligations
and as a result hereby unconditionally guaranties the full and prompt payment when due, whether at maturity or earlier, by reason of acceleration
or otherwise, and at all times thereafter, of all Obligations of every kind and nature of each other Company to Agent, Purchasers and
their Affiliates, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, joint or several, now or
hereafter existing, or due or to become due, and howsoever owned, held or acquired by Agent, any Purchaser or any Affiliate of a Purchaser.
Each Company agrees that if this guaranty, or any Liens securing this guaranty, would, but for the application of this sentence, be unenforceable
under applicable law, this guaranty and each such Lien shall be valid and enforceable to the maximum extent that would not cause this
guaranty or such Lien to be unenforceable under applicable law, and this guaranty shall automatically be deemed to have been amended accordingly
at all relevant times. Each Company hereby agrees that its obligations under this guaranty shall be unconditional, irrespective of (a)
the validity or enforceability of the Obligations or any part thereof, or of any promissory note or other document evidencing all or any
part of the Obligations, (b) the absence of any attempt to collect the Obligations from any other Company or any guarantor or other action
to enforce the same, (c) the waiver or consent by Agent, any Purchaser or any other Person with respect to any provision of any agreement,
instrument or document evidencing or securing all or any part of the Obligations, or any other agreement, instrument or document now or
hereafter executed by any other Company and delivered to Agent, any Purchaser or any other Person (other than a waiver, forgiveness or
consent by Agent, a Purchaser or other Person, as applicable, that reduces the amount of any of the Obligations to such Person), (d) the
failure by Agent, any Purchaser or any other Person to take any steps to perfect and maintain its security interest in, or to preserve
its rights to, any security or Collateral for the Obligations, for its benefit, (e) Agent’s or any Purchaser’s election, in
any proceeding instituted under the United States Bankruptcy Code or any other similar bankruptcy or insolvency legislation, of the application
of Section 1111(b)(2) of the United States Bankruptcy Code or any other similar bankruptcy or insolvency legislation, (f) any borrowing

    	 	 18	 

    	 	 

    

or grant of a security interest by any Company
as debtor-in-possession, under Section 364 of the United States Bankruptcy Code or any other similar bankruptcy or insolvency legislation,
(g) the disallowance, under Section 502 of the United States Bankruptcy Code or any other similar bankruptcy or insolvency legislation,
of all or any portion of Agent’s or any Purchaser’s claim(s) for repayment of the Obligations or (h) any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a Company or a guarantor (other than payment in full of
the Obligations). Notwithstanding anything to the contrary set forth in this Section 1.4, it is the intent of the parties hereto
that the liability incurred by each Company in respect of the Obligations of the other Company (and any Lien granted by each Company to
secure such Obligations), not constitute a fraudulent conveyance under Section 548 of the United States Bankruptcy Code or a fraudulent
conveyance or fraudulent transfer under the provisions of any applicable law of any state or other governmental unit (“Fraudulent
Conveyance”). Consequently, each Company, Agent and each Purchaser hereby agree that if a court of competent jurisdiction determines
that the incurrence of liability by any Company in respect of the Obligations of the other Company (or any Liens granted by such Company
to secure such Obligations) would, but for the application of this sentence, constitute a Fraudulent Conveyance, such liability (and such
Liens) shall be valid and enforceable only to the maximum extent that would not cause the same to constitute a Fraudulent Conveyance,
and this Agreement and the other Investment Documents shall automatically be deemed to have been amended accordingly.

		Section	2                 
Notes.

2.1             
Senior Secured Notes.

		2.1.1	Authorization of Senior Secured Notes.

BuyerCo has authorized
the issuance and sale of the Senior Secured Notes to the Purchasers pursuant to the terms of this Agreement. The payment and performance
of the Senior Secured Notes (and any other Notes) and all other Obligations shall be secured by the Collateral under the Collateral Documents
and be guaranteed by the other Note Parties (which shall also be secured under the respective Collateral Documents).

		2.1.2	Purchase of the Senior Secured Notes; Purchase Price.

On the terms and subject
to the conditions contained herein and in the other Investment Documents, and in reliance upon the representations, warranties, covenants
and agreements contained herein, at the Closing, BuyerCo shall issue, sell and deliver to the Purchasers and the Purchasers shall purchase
from BuyerCo, the Senior Secured Notes. The aggregate purchase price to be paid by Purchasers for the Senior Secured Notes (the “Purchase
Price”) shall be $15,000,000. Each Purchaser’s obligation to purchase the Senior Secured Notes shall be limited to such
Purchaser’s Pro Rata Share of the Senior Secured Notes set forth in Annex I attached hereto.

    	 	 19	 

    	 	 

    

 

		2.1.3	Closing.

The closing of the purchase
and sale of the Senior Secured Notes under this Agreement (the “Closing”) shall take place at the offices of Honigman
LLP, as soon as practicable following the satisfaction or waiver of the conditions precedent set forth in Section 4 (the day upon
which the last of all of such conditions precedent shall have been satisfied or waived being referred to as the “Closing Date”).
At or prior to the Closing, BuyerCo shall deliver to the Purchasers the Senior Secured Notes, each duly executed by BuyerCo, and all other
documents required hereunder or under any other Investment Document, each duly executed by the parties thereto, against payment of the
Purchase Price therefor (net of fees, costs and expenses to be paid by BuyerCo and permitted to be withheld pursuant to Section 4.1.5
and Section 11) to the Companies by wire transfer.

		2.1.4	Interest.

(a)              
The Companies shall pay interest on the unpaid principal balance of the Notes, together with any past-due Prepayment Premium, if
any, and past-due accrued and unpaid interest on the Notes and all other Obligations owing under the Notes and the other Investment Documents
from the date hereof until fully paid at a rate per annum equal to sixteen percent (16.0%) (the “Base Interest Rate”).
Interest payable at the Base Interest Rate shall be payable in cash. Interest shall be computed on the basis of the actual number of days
elapsed based on a 360-day year.

(b)              
(i) At any time a Specified Event of Default exists, then, in addition to the rights, powers and remedies available to the Purchasers
under this Agreement, the other Investment Documents and applicable law, if requested in writing by Required Purchasers (or Agent at the
request of the Required Purchasers), from the date of such written election (or such earlier date on which Agent or Required Purchasers
shall have provided written notice to the Companies after the occurrence of such Specified Event of Default of their right to impose default
rate interest), the Companies shall pay interest on the unpaid principal balance of the Notes, together with any past-due Prepayment Premium,
if any, and past-due accrued and unpaid interest on the Notes, and all other Obligations owing under the Notes and the other Investment
Documents, at a rate per annum (the “Default Interest Rate”) equal to the Base Interest Rate as provided in Section
2.1.4(a) plus two percent (2.0%); (ii) any such increase may thereafter be rescinded by Required Purchasers, notwithstanding
Section 10.1, and (iii) upon the occurrence of an Event of Default under Section 8.1.1 or 8.1.3, any such increase
described in the foregoing clause (i) shall occur automatically. In no event shall interest payable by Companies to Agent and Purchasers
hereunder exceed the maximum rate permitted under applicable law, and if any such provision of this Agreement is in contravention of any
such law, such provision shall be deemed modified to limit such interest to the maximum rate permitted under such law.

(c)              
Interest shall be payable in cash monthly in arrears on the last Business Day of each calendar month and at maturity (each such
date, an “Interest Payment Date”), commencing October 31, 2021; provided that interest at the Default Interest
Rate shall be payable on demand.

    	 	 20	 

    	 	 

    

(d)              
 [Reserved].

(e)              
If on any Interest Payment Date following the fifth anniversary of the Closing Date, the aggregate amount which would be includible
in income of the holders of the Notes issued on such date with respect to such Notes for periods ending on or before such Interest Payment
Date (within the meaning of Section 163(i) of the IRC) (the “Aggregate Accrual”) would exceed an amount equal to the
sum of (x) the aggregate amount of interest to be paid (within the meaning of Section 163(i) of the IRC) under such Notes on or before
such Interest Payment Date and (y) the product of (A) the issue price (as defined in Sections 1273(b) and 1274(a) of the IRC) of such
Notes and (B) the yield to maturity (interpreted in accordance with Section 163(i) of the IRC) of such Notes (such sum, the “Maximum
Accrual”), then, on such Interest Payment Date, the Companies shall pay to the holders of such Notes an aggregate amount equal
to the excess, if any, of the Aggregate Accrual over the Maximum Accrual.

2.2             
Reserved.

2.3             
Prepayment.

		2.3.1	Voluntary Prepayment; Prepayment Premium.

(a)              
The Companies may at any time and from time to time, on at least one (1) Business Day’s written notice to Agent (which shall
promptly advise each Purchaser thereof) not later than 10:00 a.m. Los Angeles time on such day and specifying the date and amount of prepayment,
prepay the Notes, in whole or in part, or redeem the principal balance of the Notes, in whole or in part, upon payment of the applicable
prepayment premium provided below (the “Prepayment Premium”) applicable to any such prepayment or redemption with respect
to the date such prepayment or redemption occurs, as follows:

	Applicable Period	 	
    Prepayment

    Percentage Premium

	From and after the Closing Date up to and including the date that is the first anniversary of the Closing Date	 	106.0%
	After the date that is the first anniversary of the Closing Date up to and including the date that is the second anniversary of the Closing Date	 	104.0%
	After the date that is the second anniversary of the Closing Date up to and including the date that is the third anniversary of the Closing Date	 	102.0%
	After the date that is the third anniversary of the Closing Date	 	100.0%

 

(b)              
In the event of (i) any prepayment of the Obligations pursuant to Section 2.3.1(a) or Section 2.3.2(b), (ii) any
acceleration of the Obligations for any reason, including, without limitation, any acceleration of the Obligations upon the election of
the

    	 	 21	 

    	 	 

    

Required Purchasers after the occurrence and
during the continuation of an Event of Default (or, in the case of the occurrence of any Event of Default described in Section 8.1.3,
automatically upon the occurrence thereof), (iii) any termination of this Agreement for any reason, (iv) any foreclosure and sale of Collateral,
(v) any sale of Collateral in any Proceeding, or (vi) any restructure, reorganization, or compromise of the Obligations by the confirmation
of a plan of reorganization or any other plan of compromise, restructure, or arrangement in any Proceeding, then, in view of the impracticability
and extreme difficulty of ascertaining the actual amount of damages to Purchasers or profits lost by Purchasers as a result of such early
termination, and by mutual agreement of the parties as to a reasonable estimation and calculation of the lost profits or damages of Purchasers,
the Companies shall pay to Purchasers the Prepayment Premium, measured as of the date of such event.

		2.3.2	Mandatory Prepayment.

(a)              
At the election of Agent, there shall become due and payable, and the Companies shall prepay the Notes, at the following times
and in the following amounts:

(i)                
Within three (3) Business Days of receipt thereof by Parent, the Companies or any Subsidiary of the Companies of any Net Cash Proceeds
from any Disposition, in an amount equal to such Net Cash Proceeds;

(ii)             
Within three (3) Business Days of receipt thereof by Parent, the Companies or any Subsidiary of the Companies of any Net Cash Proceeds
in respect of any issuance of its equity securities (including, without limitation, any Equity Cure Securities, but excluding any Excluded
Issuances), in an amount equal to such Net Cash Proceeds.

(iii)           
Within three (3) Business Days of receipt thereof by Parent, the Companies or any Subsidiary of the Companies of any Extraordinary
Receipt, in an amount equal to the Net Cash Proceeds of such Extraordinary Receipt; and

(iv)            
Within two (2) Business Days following the receipt by Parent, the Companies or any Subsidiary of the Companies of any Net Cash
Proceeds from any issuance of Debt for borrowed money not permitted by Section 7.1 hereof, an amount equal to such Net Cash Proceeds
(it being understood that the making of a mandatory prepayment under this Section 2.3.2(a)(v) shall not limit the rights and remedies
of Agent and the Purchasers in respect of any breach of Section 7.1 hereof or any other terms of the Investment Documents).

(b)              
The Companies shall notify Agent in writing of any proposed or expected Change of Control at least ten (10) Business Days prior
to the date that such Change of Control is scheduled to occur and shall inform Agent in such notification of Agent’s right to require
the Companies to prepay the Obligations as provided in this Section 2.3.2(b). If a Change of Control shall occur, then on the date
such Change of Control occurs, the Companies shall prepay the outstanding principal amount of the Notes, in full, in cash, plus
(i) an amount equal to the sum of the greater of (A)(1) the Prepayment Percentage applicable, if any, to such prepayment on such prepayment
date, multiplied by (2) the outstanding principal balance of the

    	 	 22	 

    	 	 

    

Notes, and (B) 103.0% of the outstanding principal
balance of the Notes, plus (iii) all accrued and unpaid interest on, and other amounts owing hereunder this Note through the date
of prepayment. Nothing in this Section 2.3.2(b) shall be construed to permit or waive any Default or an Event of Default arising,
directly or indirectly, from any such Change of Control.

(c)              
All mandatory payments provided for in this Section 2.3.2 shall be applied pro rata to the Notes in accordance with the
respective unpaid principal amounts thereof.

		2.4	Payment.

		2.4.1	Making and Settlement of Payments.

All payments of principal
of or interest on the Notes, and of all fees, shall be made by the Companies to Agent without setoff, recoupment or counterclaim and in
immediately available funds at the office specified by Agent not later than 10:00 a.m. (Los Angeles time) on the date due for payment,
and payments received at or before such date and hour shall be deemed to have been received and shall be credited on that date; and funds
received after that hour shall be deemed to have been received by Agent on the following Business Day. Agent shall promptly remit to each
Purchaser its share of all principal payments received in collected funds by Agent for the account of such Purchaser.

		2.4.2	Application of Payments and Proceeds.

(a)              
Except as provided in Section 2.3.2(c), Section 2.4.2(b) and Section 2.4.2(c), any payments received by Agent,
in its capacity as such, from the Companies or any of their Affiliates in respect of the Obligations shall be applied pro rata to all
outstanding Notes in accordance with the respective unpaid principal amounts thereof first to interest due and outstanding on the Notes
and then to unpaid principal amounts thereof.

(b)              
Upon the occurrence and during the continuance of an Event of Default, any payments and other amounts received by Agent, in its
capacity as such, from the Companies or any of their Affiliates in respect of the Obligations shall, subject to Section 2.4.2(c),
be applied as follows:

(i)                
to the payment of (A) all fees, costs and expenses incurred by Agent in its capacity as such in connection with the Notes, the
other Investment Documents, or any other Obligation from time to time owing from the Companies or any of their Affiliates to Agent, and
the transactions contemplated hereby or thereby, including out-of-pocket legal and other professional fees and expenses, and all other
expenses, liabilities and advances made or incurred by Agent in connection therewith, (B) all amounts for which Agent may be entitled
in its capacity as such to indemnification under any Investment Document, and (C) all out-of-pocket costs and expenses paid or incurred
by Agent in connection with any negotiation, enforcement action, sale, collection or other realization, or the exercise of any other right
or remedy against any Collateral or under any Investment Document;

(ii)             
to the payment of (A) all fees, costs and expenses incurred by Purchasers in connection with the Notes, the other Investment Documents,
or any other

    	 	 23	 

    	 	 

    

Obligation from time to time owing from
the Companies or any of their Affiliates to any Indemnified Party (other than Agent), and the transactions contemplated hereby or thereby,
including out-of-pocket legal and other professional fees and expenses, and all other expenses, liabilities and advances made or incurred
by such Indemnified Party (other than Agent) in connection therewith, (B) all amounts for which any Indemnified Party (other than Agent)
may be entitled to indemnification under any Investment Document, and (C) all out-of-pocket costs and expenses paid or incurred by any
Indemnified Party (other than Agent) in connection with any negotiation, enforcement action, sale, collection or other realization, or
the exercise of any other right or remedy against any Collateral or under any Investment Document;

(iii)           
to the payment of accrued and unpaid interest on the Notes, and/or accrued and unpaid interest on any other Obligations under any
of the other Investment Documents;

(iv)            
to the outstanding principal amount of the Notes, and/or the outstanding principal amount of any other Obligations (to be applied,
in the case of prepayments hereof or thereof, to the installments hereof or thereof in the inverse order of the maturity hereof or thereof)
under any of the other Investment Documents; and

(v)              
to any other Obligation from time to time owing from any Note Party or any of its Affiliates to Agent, the Purchasers, or any other
Indemnified Party.

(c)              
Notwithstanding anything to the contrary contained in this Agreement or in any other Investment Document, upon the occurrence and
during the continuance of an Event of Default (whether before or after giving effect to the application of payments and other amounts
as set forth above), any and all payments and other amounts received by Agent, whether as a regularly scheduled payment, a prepayment
or otherwise, from the Companies or any of their Affiliates, or as a result of the exercise of remedies under the Investment Documents,
or in respect of any sale of, collection from, or other realization upon all or any part of the Collateral under any Collateral Document
or from any other source may, in the sole discretion of Agent, be held by Agent as Collateral for, or applied in full or in part by Agent
against, the Obligations in any order of priority that Agent may elect in its sole discretion.

		2.4.3	Replacement Notes.

Upon receipt of evidence
reasonably satisfactory to the Companies of the loss, theft, destruction or mutilation of any Note and, in the case of any such loss,
theft or destruction, upon receipt of an indemnity agreement or other indemnity reasonably satisfactory to the Companies or, in the case
of any such mutilation, upon surrender and cancellation of such mutilated Note, the Companies shall issue and deliver within three (3)
Business Days a new Note, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Note.

		2.4.4	Proration of Payments.

If any Purchaser shall
obtain any payment or other recovery (whether voluntary, involuntary, by application of set-off or otherwise), on account of principal
of or

    	 	 24	 

    	 	 

    

interest on any Note then held by it, then
such Purchaser shall purchase from the other Purchasers such participations in the Notes held by them as shall be necessary to cause such
purchasing Purchaser to share the excess payment or other recovery ratably with each of them; provided that if all or any portion
of the excess payment or other recovery is thereafter recovered from such purchasing Purchaser, the purchase shall be rescinded and the
purchase price restored to the extent of such recovery.

		Section	3                 
Yield Protection.

3.1             
Taxes.

(a)              
All payments of principal and interest on the Notes and all other amounts payable under this Agreement shall be made free and clear
of and without deduction for any present or future income, excise, stamp or documentary taxes and other taxes, fees, duties, levies, withholdings
(including backup withholding), deductions or other charges of any nature whatsoever imposed by any taxing authority, including any interest,
additions to tax or penalties applicable thereto (“Taxes”), excluding any (i) Taxes imposed on or measured by any Purchaser’s
net income or franchise Taxes (or other similar Taxes imposed in lieu thereof) either (A) by the jurisdiction under which such Purchaser
is organized or conducts business or (B) as a result of a present or former connection between such Purchaser and the jurisdiction imposing
such Tax (other than connections arising from such Purchaser having executed, delivered, become a party to, performed its obligation under,
received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any
Investment Document), (ii) any branch profit Taxes imposed by the United States of America or any similar Tax imposed by any other jurisdiction
in which a Purchaser is located, (iii) in the case of any foreign Purchaser, any withholding Tax that is imposed on amounts payable to
such foreign Purchaser at the time such foreign Purchaser becomes a party to this Agreement or changes its lending office, (iv) Taxes
imposed pursuant to FATCA, and (v) any Taxes imposed as a result of any Purchaser’s failure to comply with Section 3.1(d)
(all excluded items being called “Excluded Taxes” and all Taxes that are not Excluded Taxes being called “Indemnified
Taxes”). If any withholding or deduction from any payment to be made by the Companies hereunder is required in respect of any
Taxes pursuant to any applicable law, rule or regulation, then the Companies will: (i) pay directly to the relevant authority the full
amount required to be so withheld or deducted; (ii) promptly forward to Agent an official receipt or other documentation satisfactory
to Agent evidencing such payment to such authority; and (iii) in the case of amounts withheld or deducted in respect of Indemnified Taxes,
pay to Agent for the account of Purchasers such additional amount or amounts as is necessary to ensure that the net amount actually received
by each Purchaser will equal the full amount such Purchaser would have received had no such withholding or deduction been required. If
any Indemnified Taxes are directly asserted against Agent or any Purchaser with respect to any payment received by Agent or such Purchaser
hereunder, Agent or such Purchaser may pay such Indemnified Taxes and the Companies will promptly pay such additional amounts (including
any penalty, interest or expense, except to the extent such penalty, interest or expense is imposed on Agent or the affected Purchaser
for the time period after such Agent or Purchaser has received notice of liability for such Indemnified Tax and such Agent or Purchaser
fails to make timely payment of such Tax) as is necessary in order that the net amount received by such Person after the payment of such
Indemnified Taxes (including any Indemnified Taxes on such additional amount) shall

    	 	 25	 

    	 	 

    

equal the amount such Person would have received
had such Indemnified Taxes not been asserted so long as such amounts have accrued on or after the day which is 180 days prior to the date
on which Agent or such Purchaser first made demand therefor; provided, that if the event giving rise to such costs or reductions
has retroactive effect, such 180 day period shall be extended to include the period of retroactive effect.

(b)              
If the Companies fail to pay any Taxes when due to the appropriate taxing authority or fail to remit to Agent, for the account
of the respective Purchasers, the required receipts or other required documentary evidence, the Companies shall indemnify Purchasers for
any incremental Taxes, interest or penalties that may become payable by any Purchaser as a result of any such failure. For purposes of
this Section 3.1, a distribution hereunder by Agent or any Purchaser to or for the account of any Purchaser shall be deemed a payment
by the Companies.

(c)              
If Agent or any Purchaser determines, in its sole discretion, that it has received a refund of any Indemnified Taxes as to which
it has been indemnified by the Companies or with respect to which the Companies have paid additional or make-up amounts pursuant to Section
3.1, it shall pay over such refund to the Companies (but only to the extent of indemnity payments made, or additional or make-up amounts
paid, including all interest, penalties and expenses, by the Companies under this Section 3.1 with respect to Indemnified Taxes
giving rise to such refund), net of all reasonable expenses of Agent or such Purchaser and without interest (other than interest paid
by the relevant Governmental Authority with respect to such refund); provided that the Companies, upon the request of Agent or
such Purchaser, agree to repay the amount received (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to Agent or such Purchaser in the event Agent or such Purchaser is required to repay such refund to such Governmental Authority.
This paragraph shall not be construed to require Agent or any Purchaser to make available its tax returns (or any other information relating
to its taxes which it deems confidential) to the Companies or any other Person.

(d)              
(i)Each Purchaser that is a U.S. Person shall deliver to Company Representative and Agent on or prior to the date on which
such Purchaser becomes a Purchaser under this Agreement and from time to time thereafter upon the reasonable request of Company Representative
or Agent), executed originals of Internal Revenue Service Form W-9 certifying that such Purchaser is not subject to United State federal
backup withholding tax.

(ii)             
Each Purchaser that is organized under the laws of a jurisdiction other than the United States of America shall execute and deliver
to Company Representative and Agent one or more (as the Companies or Agent may reasonably request) Internal Revenue Service Forms W-8ECI,
W-8BEN, W-8IMY (as applicable) or other applicable form, certificate or document prescribed by the United States Internal Revenue Service
certifying as to such Purchaser’s entitlement to exemption from or reduced rate of withholding or deduction of Taxes.

(iii)           
If a payment made to a Purchaser under any Investment Document would be subject to United States federal withholding tax imposed
by FATCA if such Purchaser were to fail to comply with the applicable reporting requirements of FATCA

    	 	 26	 

    	 	 

    

(including those contained in Section
1471(b) or 1472(b) of the IRC, as applicable), such Purchaser shall deliver to Company Representative and Agent at the time or times prescribed
by law and at such time or times reasonably requested by Company Representative or Agent such documentation prescribed by applicable law
(including as prescribed by Section 1471(b)(3)(C)(i) of the IRC) and such additional documentation reasonably requested by Company Representative
or Agent as may be necessary for Company Representative and Agent to comply with their obligations under FATCA and to determine the amount
to duct and withhold from such payment. For purposes of this subsection 3.1(d)(iii), “FATCA” shall include any amendments
made to FATCA after the date of this Agreement.

(iv)            
Each Purchaser agrees that if any form or certification it previously delivered under this Section 3.1(d) expires or becomes
obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify Company Representative and Agent
in writing of its legal inability to do so.

3.2             
Increased Cost.

(a)              
If, after the Closing Date, the adoption of, or any change in, any applicable law, rule or regulation (other than the implementation
of FATCA, as in effect, with respect to any Purchaser, as of the date such Purchaser becomes a party to this Agreement), or any change
in the interpretation or administration of any applicable law, rule or regulation (other than FATCA) by any Governmental Authority, central
bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Purchaser with any request or
directive (whether or not having the force of law) of any such authority, central bank or comparable agency shall impose on any Purchaser
any condition affecting its Note and the result is to increase the cost to (or to impose a cost on) such Purchaser of making or maintaining
its Note, or to reduce the amount of any sum received or receivable by such Purchaser under this Agreement or under its Note with respect
thereto (other than any such increased cost or reduction attributable to an Excluded Tax), then upon demand by such Purchaser (which demand
shall be accompanied by a statement setting forth the basis for such demand and a calculation of the amount thereof in reasonable detail,
a copy of which shall be furnished to Agent and the Companies), the Companies shall pay directly to such Purchaser such additional amount
as will compensate such Purchaser for such increased cost or such reduction to the extent arising from and in connection with, the Notes,
so long as such amounts have accrued on or after the day which is 180 days prior to the date on which such Purchaser first made demand
therefor; provided, that if the event giving rise to such costs or reductions has retroactive effect, such 180 day period shall
be extended to include the period of retroactive effect.

(b)              
If any Purchaser shall reasonably determine that any change in, or the adoption or phase-in of, any applicable law, rule or regulation
regarding capital adequacy, or any change in the interpretation or administration thereof by any Governmental Authority, central bank
or comparable agency charged with the interpretation or administration thereof, or the compliance by any Purchaser or any Person controlling
such Purchaser with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority,
central bank or comparable agency, has or would have the effect of reducing the rate of return on such Purchaser’s or such controlling
Person’s capital as a consequence of such

    	 	 27	 

    	 	 

    

Purchaser’s obligations hereunder to
a level below that which such Purchaser or such controlling Person could have achieved but for such change, adoption, phase-in or compliance
(taking into consideration such Purchaser’s or such controlling Person’s policies with respect to capital adequacy) by an
amount deemed by such Purchaser or such controlling Person to be material, then from time to time, upon demand by such Purchaser (which
demand shall be accompanied by a statement setting forth the basis for such demand and a calculation of the amount thereof in reasonable
detail, a copy of which shall be furnished to Agent and the Companies), the Companies shall pay to such Purchaser such additional amount
as will compensate such Purchaser or such controlling Person for such reduction, to the extent arising from and in connection with, the
Notes, so long as such amounts have accrued on or after the day which is one hundred eighty (180) days prior to the date on which such
Purchaser first made demand therefor; provided, that if the event giving rise to such costs or reductions has retroactive effect,
such one hundred eighty (180) day period shall be extended to include the period of retroactive effect.

(c)              
Notwithstanding anything to the contrary contained herein, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and
all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or
directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar
authority) or the United States of America or foreign regulatory authorities, in each case in respect of this clause (ii) pursuant to
Basel III, shall be deemed to constitute an adoption of, or change in, a law, rule or regulation, for purposes of Section 3.2(a)
above, and a change in, or the adoption or phase-in of, a law, rule or regulation regarding capital adequacy, for purposes of Section
3.2(b) above, regardless of the date enacted, adopted or issued.

3.3             
Mitigation of Circumstances; Replacement of Purchasers.

(a)              
Each Purchaser shall promptly notify Company Representative and Agent of any event of which it has knowledge which will result
in, and will use reasonable commercial efforts available to it (and not, in such Purchaser’s reasonable judgment, otherwise disadvantageous
to such Purchaser) to mitigate or avoid, any obligation by Companies to pay any amount pursuant to Section 3.1 or 3.2 (and,
if any Purchaser has given notice of any such event and thereafter such event ceases to exist, such Purchaser shall promptly so notify
Companies and Agent). Without limiting the foregoing, each Purchaser will designate a different funding office if such designation will
avoid (or reduce the cost to Companies of) any event described above and such designation would not, in such Purchaser’s sole judgment,
be otherwise disadvantageous to such Purchaser.

(b)              
If (i) the Companies become obligated to pay additional amounts to any Purchaser pursuant to Section 3.1 or 3.2 or
(ii) any Purchaser does not consent to any matter requiring its consent under Section 10.1 when the Required Purchasers have otherwise
consented to such matter, then the Companies may within ninety (90) days thereafter designate another lender which is acceptable to Agent
(such other lender being called a “Replacement Purchaser”) to purchase the Notes of such Purchaser and such Purchaser’s
rights hereunder, without recourse to or warranty by, or expense to, such Purchaser, for a purchase price equal to the outstanding principal
amount of the Notes payable to such Purchaser plus any accrued but

    	 	 28	 

    	 	 

    

unpaid interest on such Notes and all accrued
but unpaid fees owed to such Purchaser and any other amounts payable to such Purchaser under this Agreement, and to assume all the obligations
of such Purchaser hereunder, all in compliance with Section 10.8.1. Upon such purchase and assumption (pursuant to an Assignment
Agreement), such Purchaser shall no longer be a party hereto or have any rights hereunder (other than rights with respect to indemnities
and similar rights applicable to such Purchaser prior to the date of such purchase and assumption) and shall be relieved from all obligations
to the Companies hereunder, and the Replacement Purchaser shall succeed to the rights and obligations of such Purchaser hereunder.

3.4             
Conclusiveness of Statements; Survival.

Determinations and statements
of any Purchaser pursuant to Sections 3.1 and 3.2 shall be conclusive absent demonstrable error. Purchasers may use reasonable
averaging and attribution methods in determining compensation under Sections 3.1 and 3.2, provided that all such methods
are based on and evidenced by reasonable documentation of the applicable costs, expenses, losses, etc., and the provisions of such Sections
shall survive repayment of the Notes, cancellation of the Notes and termination of this Agreement.

		Section	4                 
Conditions to Closing by Purchasers.

4.1             
Conditions.

The obligation of Purchasers
to purchase the Senior Secured Notes is subject to the following conditions precedent, each of which shall be satisfactory in all respects
to Agent:

		4.1.1	[Reserved].

		4.1.2	Representations and Warranties.

The representations and
warranties of the Companies and the other Note Parties set forth in this Agreement and the other Investment Documents shall be true and
correct in all material respects with the same effect as if then made (except to the extent stated to relate to a specific earlier date,
in which case such representations and warranties shall be true and correct in all material respects as of such earlier date).

		4.1.3	Existing Debt.

The Existing Debt, if any,
has been paid in full (or concurrently with the purchase of Notes hereunder will be paid in full).

		4.1.4	Related Transactions.

Note Parties shall have
completed the other Related Transactions (or concurrently with the initial purchase of Notes hereunder, will complete such other Related
Transactions) in accordance with the terms of the applicable Related Agreements (without any amendment thereto or waiver thereunder unless
consented to by Purchasers).

    	 	 29	 

    	 	 

    

 

		4.1.5	Fees.

The Companies shall have
paid all fees, costs and expenses due and payable under this Agreement and the other Investment Documents on the Closing Date.

		4.1.6	Delivery of Investment Documents.

The Companies shall have
delivered the following documents in form and substance satisfactory to Agent (and, as applicable, duly executed and dated the Closing
Date or an earlier date satisfactory to Agent):

(a)              
Agreement. This Agreement.

(b)              
Notes. Notes for each Purchaser.

(c)              
Collateral Documents. The Guarantee and Collateral Agreement, all other Collateral Documents, and all instruments, documents,
certificates and agreements executed or delivered pursuant thereto (including intellectual property assignments and pledged Collateral,
with undated irrevocable transfer powers executed in blank).

(d)              
Financing Statements. Properly completed Uniform Commercial Code financing statements and other filings and documents required
by law or the Investment Documents to provide Agent perfected Liens (subject only to Permitted Liens) in the Collateral.

(e)              
Lien Searches. Copies of Uniform Commercial Code search reports listing all effective financing statements filed against
any Note Party, with copies of such financing statements.

(f)               
Payoff; Release. Payoff letters evidencing repayment in full of all Existing Debt, termination of all agreements relating
thereto and the release of all Liens, if any, granted in connection therewith, with Uniform Commercial Code or other appropriate termination
statements and documents effective to evidence the foregoing.

(g)              
Letter of Direction. A letter of direction containing funds flow information, with respect to the proceeds of the Notes
on the Closing Date.

(h)              
Authorization Documents. For each Note Party, such Person’s (i) charter (or similar formation document), certified
by the appropriate Governmental Authority, (ii) good standing certificates in its state of incorporation (or formation) and in each other
state requested by Agent, (iii) bylaws (or similar governing document), (iv) resolutions of its board of directors (or similar governing
body, including the manager of a manager-managed limited liability company) approving and authorizing such Person’s execution, delivery
and performance of the Investment Documents to which it is party and the transactions contemplated thereby, and (v) signature and incumbency
certificates of its officers executing any of the Investment Documents, all certified by its secretary or an assistant secretary (or similar
officer) as being in full force and effect without modification.

    	 	 30	 

    	 	 

    

(i)                
 Financials. The financial statements, projections and pro forma balance sheet requested by Agent and the Purchasers prior
to execution and delivery hereof.

(j)                
Consents. Evidence or certification by the Companies that all necessary consents, permits and approvals (governmental or
otherwise) required for the execution, delivery and performance by each Note Party of the Investment Documents and the Related Transactions
have been duly obtained and are in full force and effect.

(k)              
Certified Documents. Copies of the Related Agreements certified by an officer of Company Representative as being in true,
accurate and complete.

(l)                
Other Documents. Such other certificates, documents and agreements as Agent or any Purchaser may reasonably request.

		Section	5                 
Representations and Warranties.

To induce Agent and Purchasers
to enter into this Agreement and to induce Purchasers to purchase the Notes, the Note Parties represent and warrant to Agent and Purchasers
that, both before and after giving effect to the Related Transactions:

5.1             
Organization.

Each Note Party is a corporation
or limited liability company, as applicable, validly existing and in good standing under the laws of the jurisdiction of its organization.
Each Note Party is duly qualified to do business in each jurisdiction where, because of the nature of its activities or properties, such
qualification is required, except for such jurisdictions where the failure to so qualify could not reasonably be expected to have a Material
Adverse Effect.

5.2             
Authorization; No Conflict.

Each Note Party is duly
authorized to execute and deliver each Investment Document and each Related Agreement to which it is a party, each Company is duly authorized
to borrow monies hereunder, and each Note Party is duly authorized to perform its Obligations under each Investment Document to which
it is a party. The execution, delivery and performance by the Note Parties of this Agreement and of each Investment Document to which
it is a party, and the borrowings by the Companies hereunder, do not and will not (a) require any consent or approval of any governmental
agency or authority (other than any consent or approval which has been obtained and is in full force and effect), (b) conflict with (i)
any provision of applicable law, (ii) the charter, by-laws or other organizational documents of any Note Party or (iii) any agreement,
indenture, instrument or other document, or any judgment, order or decree, which is binding upon the Note Parties or any of their respective
properties in such manner which could reasonably be expected to have a Materially Adverse Effect or (c) require, or result in, the creation
or imposition of any Lien on any asset of the Note Parties (other than Liens in favor of Agent created pursuant to the Collateral Documents).

5.3             
Validity; Binding Nature.

This Agreement and each
other Investment Document to which any Note Party is a party is the legal, valid and binding obligation of such Note Party, enforceable
against such Note Party

    	 	 31	 

    	 	 

    

in accordance with its terms, subject to bankruptcy,
insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity.

5.4             
Financial Condition.

The unaudited balance sheet
of Douglas as of July 31, 2021 (the “Latest Balance Sheet”) and the related statements of income and cash flows for
the one (1)-month period then ended (the “Interim Financial Statements”) and the audited balance sheet and statements
of income and cash flows of Douglas for the fiscal years ended, June 30, 2019, June 30, 2020 and June 30, 2021 (collectively, with the
Interim Financial Statements, the “Financial Statements”) have been prepared in accordance with GAAP, consistently
applied throughout the relevant reporting period, and present fairly in all material respects the financial condition and results of operations
of Douglas as of the times and for the periods referred to therein, subject to (x) the absence of footnote disclosures and other presentation
items in the Interim Financial Statements and (y) changes resulting from normal year-end adjustments in the Interim Financial Statements,
in the cases of clauses (x) and (y), none of which would be material individually or in the aggregate to the business, operations, assets,
liabilities, financial condition, operating results or cash flow of Douglas. The Financial Statements are based on, and consistent with,
the books and records of Douglas (which in turn are true, correct and complete in all material respects).

5.5             
No Material Adverse Effect.

Since December 31, 2020, there has been no Material
Adverse Effect.

5.6             
Litigation.

No litigation (including
derivative actions), arbitration proceeding or governmental investigation or proceeding is pending or, to the Note Parties’ knowledge,
threatened against any Note Party or Subsidiary which could reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect, except as set forth in Schedule 5.6.

5.7             
Ownership of Properties: Liens.

Each Note Party has a valid
license or leasehold right to use, or owns good and, in the case of real property, if any, marketable title to all of its properties and
assets, real and personal, tangible and intangible, of any nature whatsoever (excluding patents, trademarks, trade names, service marks
and copyrights, representations and warranties with respect to which are set forth in Section 5.18), which in each case are material
to the operation of the business of such Note Party, free and clear of all Liens, charges and claims (excluding infringement claims with
respect to patents, trademarks, service marks, copyrights and the like, representations and warranties with respect to which are set forth
in Section 5.18), except Permitted Liens.

5.8             
Capitalization.

All issued and outstanding
equity securities of the Note Parties and their Subsidiaries are duly authorized and validly issued, fully paid, non-assessable, and free
and clear of all Liens other than those in favor of Agent, and such securities were issued in compliance with all applicable state and
federal laws concerning the issuance of securities. Schedule 5.8 sets forth the authorized equity securities and all of the issued
and outstanding equity of each Note Party and their Subsidiaries as of the Closing Date. As of the Closing Date, except as set forth on

    	 	 32	 

    	 	 

    

Schedule 5.8, there are no pre-emptive
or other outstanding rights, options, warrants, conversion rights or other similar agreements or understandings for the purchase or acquisition
of any equity interests of any Note Party or any Subsidiary thereof.

5.9             
Pension Plans.

During the twelve-consecutive-month
period prior to the Closing Date, (i) no steps have been taken to terminate any Pension Plan and (ii) no contribution failure has occurred
with respect to any Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA. No condition exists or event or transaction
has occurred with respect to any Pension Plan which could result in the incurrence by any Note Party or any Subsidiary of any liability,
fine or penalty that could reasonably be expected to have a Material Adverse Effect. All contributions (if any) have been made to any
Multiemployer Pension Plan that are required to be made by any Note Party or any Subsidiary or any other member of the Controlled Group
under the terms of the plan or of any collective bargaining agreement or by applicable law; neither any Note Party nor any member of the
Controlled Group has withdrawn or partially withdrawn from any Multiemployer Pension Plan, incurred any withdrawal liability with respect
to any such plan or received notice of any claim or demand for withdrawal liability or partial withdrawal liability from any such plan,
and no condition has occurred which, if continued, could result in a withdrawal or partial withdrawal from any such plan, and neither
any Note Party nor any member of the Controlled Group has received any notice that any Multiemployer Pension Plan is in reorganization,
that increased contributions may be required to avoid a reduction in plan benefits or the imposition of any excise tax, that any such
plan is or has been funded at a rate less than that required under Section 412 of the IRC, that any such plan is or may be terminated,
or that any such plan is or may become insolvent, in each case, that could reasonably be expected to have a Material Adverse Effect.

5.10         
Investment Company Act.

No Note Party or Subsidiary
is an “investment company” or a company “controlled” by an “investment company” or a “subsidiary”
of an “investment company”, within the meaning of the Investment Company Act of 1940.

5.11         
No Default.

No Event of Default or Default
exists or would result from the incurrence by any Note Party of the Obligations hereunder or under any other Investment Document.

5.12         
Margin Stock.

No Note Party or Subsidiary
is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying
Margin Stock. No portion of the Obligations is secured directly or indirectly by Margin Stock.

5.13         
Taxes.

The Note Parties and their
respective Subsidiaries have filed all U.S. federal income tax returns and all other material returns and reports required by law to have
been filed by it and has paid all taxes and governmental charges thereby shown to be owing, and all other material taxes due and payable
and not yet delinquent as of the date hereof, except any such taxes or charges

    	 	 33	 

    	 	 

    

which are being diligently contested in good
faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books.

5.14         
Solvency.

On the Closing Date, and
immediately prior to and after giving effect to the initial purchase of Notes hereunder, with respect to the Note Parties and their respective
Subsidiaries, taken as a whole, (a) the fair value of their assets is greater than the amount of their liabilities (including disputed,
contingent and unliquidated liabilities) as such value is established and liabilities evaluated, (b) the present fair saleable value of
their assets is not less than the amount that will be required to pay the probable liability on their debts as they become absolute and
matured, (c) they are able to realize upon their assets and pay their debts and other liabilities (including disputed, contingent and
unliquidated liabilities) as they mature in the normal course of business, (d) they do not intend to, and do not believe that they will,
incur debts or liabilities beyond their ability to pay as such debts and liabilities mature and (e) they are not engaged in business or
a transaction, and are not about to engage in business or a transaction, for which their property and other assets would constitute unreasonably
small capital.

5.15         
Environmental Matters.

The on-going operations
of the Note Parties and their Subsidiaries comply in all respects with all Environmental Laws, except such non-compliance which could
not (if enforced in accordance with applicable law) reasonably be expected to have a Material Adverse Effect. The Note Parties and their
Subsidiaries have obtained, and maintained in good standing, all licenses, permits, authorizations and registrations required under any
Environmental Law and necessary for their respective ordinary course operations, and the Note Parties and their Subsidiaries are in compliance
with all material terms and conditions thereof, except, in each case, where the failure to do so could not reasonably be expected to result
in material liability to any Note Party or Subsidiary and could not reasonably be expected to have a Material Adverse Effect. No Note
Party, any Subsidiary or any of their respective properties or operations is subject to any outstanding written order from or agreement
with any Federal, state or local Governmental Authority, nor is subject to and has received service of process of any judicial or docketed
administrative proceeding, respecting any Environmental Law, Environmental Claim or Hazardous Substance, except for any order, agreement
or proceeding that could reasonably be expected to result in material liability to the Note Parties or their Subsidiaries and could not
reasonably be expected to have a Material Adverse Effect. To the Note Parties’ actual knowledge, there are no Hazardous Substances
or other conditions or circumstances giving rise to liability under any Environmental Law existing with respect to any property, or arising
from operations prior to the Closing Date, of the Note Parties that could reasonably be expected to have a Material Adverse Effect. To
the Note Parties’ actual knowledge, no Note Party owns any underground storage tanks that are not properly registered or permitted
under applicable Environmental Laws or that are leaking or disposing of Hazardous Substances.

5.16         
Insurance.

The Note Parties, their
Subsidiaries and their respective properties are insured with financially sound and reputable insurance companies which are not Affiliates
of any Note Party, in such amounts, with such deductibles and covering such risks as are customarily carried by

    	 	 34	 

    	 	 

    

companies engaged in similar businesses and
owning similar properties in localities where such Note Party or Subsidiary operates. A true and complete listing of such insurance as
of the Closing Date, including issuers, coverages and deductibles, is set forth on Schedule 5.16.

5.17         
Information.

All information furnished
in writing by any Note Party or Subsidiary to Agent or any Purchaser for purposes of or in connection with this Agreement and the transactions
contemplated hereby is, taken as a whole, true and accurate in all material respects and does not omit to state any material fact necessary
to make such information, when taken as a whole, not materially misleading in light of the circumstances under which made (it being recognized
by Agent and Purchasers that any projections and forecasts provided by the Note Parties are based on good faith estimates and assumptions
believed by the Note Parties to be reasonable as of the date of the applicable projections or assumptions and that actual results during
the period or periods covered by any such projections and forecasts may differ from projected or forecasted results).

5.18         
Intellectual Property.

Each Note Party owns and
possesses or has a license or other right to use all patents, patent rights, trademarks, trademark rights, trade names, trade name rights,
service marks, service mark rights and copyrights as are necessary for the conduct of the business of the Note Parties, without any infringement
upon rights of others which could reasonably be expected to have a Material Adverse Effect.

5.19         
Restrictive Provisions.

No Note Party or any Subsidiary
is a party to any agreement or contract or subject to any restriction contained in its operative documents which could reasonably be expected
to have a Material Adverse Effect.

5.20         
Labor Matters.

As of the Closing Date,
except as set forth on Schedule 5.20, no Note Party or Subsidiary is subject to any labor or collective bargaining agreement. There
are no existing or threatened strikes, lockouts or other labor disputes involving any Note Party or Subsidiary that singly or in the aggregate
could reasonably be expected to have a Material Adverse Effect. Hours worked by and payment made to employees of the Note Parties and
their Subsidiaries are not in violation in any material respect that could reasonably be expected to result in an enforcement action under
the Fair Labor Standards Act or any other applicable law, rule or regulation dealing with such matters that could reasonably be expected
to have a Material Adverse Effect.

5.21         
Related Agreements.

The Note Parties have furnished
to Agent a true and correct copy of the Related Agreements pursuant hereto. Each Note Party and, to the Note Parties’ knowledge,
each other party to the Related Agreements, has duly taken all necessary organizational action to authorize the execution, delivery and
performance of the Related Agreements and the consummation of transactions contemplated thereby. As of the Closing Date, the other Related
Transactions have been consummated (or concurrently with the initial purchase of Notes hereunder, will be

    	 	 35	 

    	 	 

    

consummated) in accordance with the terms of
the applicable Related Agreements. The Related Transactions consummated on the Closing Date comply, or will comply as the case may be,
with all applicable legal requirements, and all necessary governmental, regulatory, creditor, shareholder, partner and other material
consents, approvals and exemptions required to be obtained by a Note Party and, to the Note Parties’ knowledge, each other party
to the Related Agreements in connection with the Related Transactions have been, or will be, as the case may be, prior to consummation
of the Related Transactions, duly obtained and are, or will be, as the case may be, in full force and effect. As of the date of the Related
Agreements, all applicable waiting periods with respect to the Related Transactions contemplated by such Related Agreements will have
expired without any action being taken by any competent Governmental Authority which restrains, prevents or imposes material adverse conditions
upon the consummation of the Related Transactions. The execution and delivery of the Related Agreements on the Closing Date did not, or
will not, as the case may be, and the consummation of the Related Transactions did not, or will not, as the case may be, violate any statute
or regulation of the United States (including any securities law) or of any state or other applicable jurisdiction, or any order, judgment
or decree of any court or governmental body binding on the Note Parties or, to the Note Parties’ knowledge, any other party to the
Related Agreements, or result in a breach of, or constitute a default under, any material agreement, indenture, instrument or other document,
or any judgment, order or decree, to which any Note Party is a party or by which the Note Parties are bound or, to the Note Parties’
knowledge, to which any other party to the Related Agreements is a party or by which any such party is bound in such manner which could
reasonably be expected to have a Materially Adverse Effect. As of the Closing Date, each of the representations and warranties contained
in the Related Agreements made by any Note Party is true and correct in all material respects. As of the Closing Date, to each Note Parties’
knowledge, each of the representations and warranties contained in the Related Agreements made by any Person other than such Note Party
is true and correct except as otherwise would not reasonably be expected to have a Material Adverse Effect.

5.22         
[Reserved].

5.23         
Compliance with Laws.

Each Note Party and each
Subsidiary is in compliance with, and is conducting and has conducted its respective business and operations in material compliance with
the requirements of all applicable laws, rules, regulations, decrees, orders, judgments, licenses and permits, except where the failure
to comply in any instance or in the aggregate could not reasonably be expected to have a Material Adverse Effect.

		Section	6                 
Affirmative Covenants.

Until all Obligations have
been Paid in Full, the Note Parties agree that, unless at any time Required Purchasers shall otherwise expressly consent in writing, they
will:

6.1             
Information.

    	 	 36	 

    	 	 

    

Furnish to Agent and each Purchaser:

		6.1.1	Annual Report.

Promptly when available
and in any event within 120 days after the close of each Fiscal Year: (a) a copy of the annual audit report of the Parent and its Subsidiaries
for such Fiscal Year, including therein a consolidated balance sheet and statement of earnings and cash flows of the Parent and its Subsidiaries
as at the end of such Fiscal Year, certified without qualification (except for qualifications relating to changes in accounting principles
or practices reflecting changes in GAAP and required or approved by the Parent’s independent certified public accountants) by independent
auditors of recognized standing selected by the Parent and reasonably acceptable to Agent, and (b) a comparison with the previous Fiscal
Year together with a comparison of actual results for such Fiscal Year with the budget for such Fiscal Year, each certified by a Responsible
Officer of Company Representative.

		6.1.2	Interim Reports.

Promptly when available
and in any event within (i) with respect to each month which is the last month of a Fiscal Quarter, forty-five (45) days after the end
of each such month, and (ii) with respect to each month which is not the last month of a Fiscal Quarter, thirty-five (35) days after the
end of each such month, a consolidated balance sheet of the Parent and its Subsidiaries as of the end of such month, together with a consolidated
and, if available, a consolidating, statement of earnings and a consolidated statement of cash flows for such month and for the period
beginning with the first day of such Fiscal Year and ending on the last day of such month, together with a comparison with the corresponding
period of the previous Fiscal Year and a comparison with the budget for such period of the current Fiscal Year, certified by a Responsible
Officer of Company Representative as being prepared in accordance with GAAP (subject to the absence of footnotes and to normal year-end
adjustments) and fairly presenting in all material respects the consolidated financial condition of such Persons as at such dates and
the results of their operations for the periods then ended.

		6.1.3	MD&A.

Contemporaneously with
the furnishing of a copy of each annual audit report pursuant to Section 6.1.1 and forty-five (45) days after the end of each month
which is the last month of a Fiscal Quarter, including the fourth Fiscal Quarter of each Fiscal Year, a written statement of the Companies’
management setting forth a discussion of the Companies’ financial condition, changes in financial condition and results of operations.

		6.1.4	Reports to SEC and Shareholders.

Promptly upon the filing
or sending thereof, copies of (a) all regular, periodic or special reports of each Note Party or Subsidiary filed with the Securities
Exchange Commission, (b) all registration statements of each Note Party filed with the Securities Exchange Commission (other than on Form
S-8) and (c) all proxy statements or other communications made to security holders generally.

		6.1.5	Notice of Default; Litigation; ERISA Matters.

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Promptly upon a Responsible
Officer becoming aware of any of the following, written notice describing the same and the steps being taken by the applicable Note Party
affected thereby with respect thereto:

(a)              
the occurrence of an Event of Default or a Default;

(b)              
any litigation, arbitration or governmental investigation or proceeding not previously disclosed by the Note Parties to Purchasers
which has been instituted or, to the knowledge of the Note Parties, is threatened in writing against the Note Parties or to which any
of their properties is subject which could reasonably be expected to have a Material Adverse Effect;

(c)              
the institution of any steps by any member of the Controlled Group or any other Person to terminate any Pension Plan, or the failure
of any member of the Controlled Group to make a required contribution to any Pension Plan (if such failure is sufficient to give rise
to a Lien under Section 302(f) of ERISA) or to any Multiemployer Pension Plan, or the taking of any action with respect to a Pension Plan
which could result in the requirement that the Note Parties furnish a bond or other security to the PBGC or such Pension Plan, or the
occurrence of any event with respect to any Pension Plan or Multiemployer Pension Plan which could result in the incurrence by any member
of the Controlled Group of any material liability, fine or penalty (including any claim or demand for withdrawal liability or partial
withdrawal from any Multiemployer Pension Plan), or any material increase in the contingent liability of the Note Parties with respect
to any post-retirement welfare plan benefit, or any notice that any Multiemployer Pension Plan is in reorganization, that increased contributions
may be required to avoid a reduction in plan benefits or the imposition of an excise tax, that any such plan is or has been funded at
a rate less than that required under Section 412 of the IRC, that any such plan is or may be terminated, or that any such plan is or may
become insolvent;

(d)              
any cancellation or material change in any insurance maintained by any Note Party; or

(e)              
any other event (including (i) any violation of any Environmental Law or the assertion of any Environmental Claim or (ii) the enactment
or effectiveness of any law, rule or regulation affecting any Note Party) which could reasonably be expected to have a Material Adverse
Effect.

		6.1.6	Compliance Certificate.

Simultaneously with the
delivery of the financial statements required to be delivered to the Agent under Section 6.1.1 and Section 6.1.2(i),
a Compliance Certificate, in substantially the form attached as Exhibit C (a “Compliance Certificate”),
signed on behalf of the Note Parties by the Chief Financial Officer or any other officer having substantially the same authority and responsibility
of the Company Representative, certifying that such officer has reviewed this Agreement and the other Investment Documents and the financial
statements (including the financial condition and results of operations) of the Companies and their Subsidiaries for purposes of delivering
such Compliance Certificate and further certifying as to

    	 	 38	 

    	 	 

    

the matters set forth in such Compliance Certificate,
which shall include, without limitation, the computations used by the Note Parties in determining compliance with the covenants set forth
in Section 7.14.

		6.1.7	Management Report.

Promptly upon receipt thereof,
copies of all detailed financial and management reports submitted to the Note Parties by independent auditors in connection with each
annual or interim audit made by such auditors of the books of the Note Parties.

		6.1.8	Projections.

As soon as practicable,
and in any event not later than sixty (60) days after the commencement of each Fiscal Year, financial projections for the Note Parties
and their respective Subsidiaries for such Fiscal Year (including monthly operating and cash flow budgets) prepared in a manner consistent
with the projections delivered by the Note Parties to Agent prior to the Closing Date or otherwise in a manner reasonably satisfactory
to Agent, the delivery of which shall be deemed a representation by the Note Parties that such projections were prepared by the Note Parties
in good faith; provided, it is understood by all parties hereto that such estimates, projections and forecasts are not viewed as
facts and are subject to certain uncertainties and contingencies, some of which are beyond the control of the Note Parties.

		6.1.9	Subordinated Debt Notices.

Promptly following receipt,
copies of any notices (including notices of default or acceleration) received from any holder or trustee of, under or with respect to
any Subordinated Debt.

		6.1.10	Updated Schedules to Guarantee and Collateral Agreement.

Contemporaneously with
the furnishing of each annual audit report pursuant to Section 6.1.1, updated versions of the Schedules to the Guarantee and Collateral
Agreement showing information as of the date of such audit report (it being agreed and understood that this requirement shall be in addition
to the notice and delivery requirements set forth in the Guarantee and Collateral Agreement).

		6.1.11	Other Information.

Promptly from time to time,
such other information concerning the Note Parties as any Purchaser or Agent may reasonably request.

		6.2	Books; Records; Inspections.

Keep, and cause each Note
Party to keep, its books and records in accordance with sound business practices sufficient to allow the preparation of financial statements
in accordance with GAAP; permit, and cause each other Note Party to permit, Agent (accompanied by any Purchaser) or any representative
thereof to inspect the properties and operations of the Note Parties; and permit, and cause each other Note Party, at any reasonable time
and with reasonable

    	 	 39	 

    	 	 

    

notice, to permit (or at any time without notice
if an Event of Default exists), Agent (accompanied by any Purchaser) or any representative thereof to visit any or all of its offices,
to discuss its financial matters with its officers and its independent auditors (and the Note Parties hereby authorize such independent
auditors to discuss such financial matters with any Purchaser or Agent or any representative thereof), and to examine any of its books
or other records; and permit, and cause each other Note Party, at any reasonable time and with reasonable notice, to permit Agent and
its representatives to inspect the Collateral and other tangible assets of the Note Parties, to perform appraisals of the equipment of
the Note Parties, and to inspect, audit, check and make copies of and extracts from the books, records, computer data, computer programs,
journals, orders, receipts, correspondence and other data relating to any Collateral. So long as no Event of Default or Default exists,
(i) such inspections or audits by Agent (including any request by Agent to any Note Party’s independent public accountants) shall
be in a manner that does not unduly interfere with the business and operations of the Note Parties and their Subsidiaries, (ii) the Note
Parties shall receive reasonable prior notice of such inspection and/or audit and (iii) notwithstanding any other provision hereof or
of any other Investment Document, the Note Parties shall not be required to reimburse Agent for more than one appraisal and audit each
Fiscal Year.

		6.3	Maintenance of Property; Insurance.

(a)              
Keep, and cause each other Note Party to keep, all property necessary in the business of the Note Parties in good working order
and condition, ordinary wear and tear excepted.

(b)              
Maintain, and cause each other Note Party to maintain, with responsible insurance companies, such insurance coverage as shall be
required by all laws, governmental regulations and court decrees and orders applicable to it and such other insurance, including Flood
Insurance, to such extent and against such hazards and liabilities, as is customarily maintained by companies similarly situated. Notwithstanding
the foregoing, Flood Insurance shall not be required for (x) real property not located in a Special Flood Hazard Area or (y) real property
located in a Special Flood Hazard Area in a community that does not participate in the National Flood Insurance Program. Upon request
of Agent or any Secured Party, the Note Parties shall furnish to Agent or such Secured Party a certificate setting forth in reasonable
detail the nature and extent of all insurance maintained by the Note Parties. The Note Parties shall cause each issuer of an insurance
policy insuring the Note Parties (or their respective property) to provide Agent with an endorsement (i) showing Agent as a loss payee
with respect to each policy of property or casualty insurance and naming Agent as an additional insured with respect to each policy of
liability insurance and (ii) providing that such issuer will provide thirty (30) days’ notice (or ten (10) days’ notice in
the case of non-payment) to Agent prior to any cancellation of, or reduction or change in coverage provided by or other material modification
to such policy. If requested by Agent, the Note Parties shall execute and deliver to Agent a collateral assignment, in form and substance
satisfactory to Agent, of any and each business interruption insurance policy maintained by the Note Parties.

(c)              
Unless the Note Parties provide Agent with evidence of the continuing insurance coverage required by this Agreement within two
(2) Business Days of Agent’s written request therefor, Agent may purchase insurance at the Note Parties’ expense to

    	 	 40	 

    	 	 

    

protect Agent’s and Secured Parties’
interests in the Collateral. This insurance may, but need not, protect the Note Parties’ interests. The coverage that Agent may
purchase may, but need not, pay any claim that is made against the Note Parties in connection with the Collateral. The Note Parties may
later cancel any insurance purchased by Agent, but only after providing Agent with evidence reasonably satisfactory to Agent that the
Note Parties have obtained the insurance coverage otherwise required by this Agreement. If Agent purchases insurance for the Collateral,
as set forth above, the Note Parties will be responsible for the costs of that insurance, including interest and any other charges that
may be imposed with the placement of the insurance, until the effective date of the cancellation or expiration of the insurance and the
costs of the insurance may be added to the principal amount of the Notes owing hereunder.

		6.4	Compliance with Laws; Payment of Taxes and Liabilities.

Comply, and cause each
other Note Party and Subsidiary to comply, in all material respects with all applicable laws, rules, regulations, decrees, orders, judgments,
licenses and permits, except where failure to comply could not reasonably be expected to have a Material Adverse Effect; (b) without limiting
clause (a) above, ensure, and cause each other Note Party to ensure, that no person who owns a controlling interest in or otherwise controls
a Note Party is or shall be (i) listed on the Specially Designated Nationals and Blocked Person List maintained by the Office of Foreign
Assets Control (“OFAC”), Department of the Treasury, and/or any other similar lists maintained by OFAC pursuant to any authorizing
statute, Executive Order or regulation or (ii) a person designated under Section 1(b), (c) or (d) or Executive Order No. 13224 (September
23, 2001), any related enabling legislation or any other similar Executive Orders; (c) without limiting clause (a) above, comply and cause
each other Note Party to comply, with all applicable Bank Secrecy Act and anti-money laundering laws and regulations and (d) pay, and
cause each other Note Party to pay, prior to delinquency, all material Taxes and other governmental charges against it or any of its property,
as well as claims of any kind which, if unpaid, could become a Lien on any of its property; provided that the foregoing shall not
require the Note Parties to pay any such Tax or charge so long as it shall contest the validity thereof in good faith by appropriate proceedings
and shall set aside on its books adequate reserves with respect thereto in accordance with GAAP.

		6.5	Maintenance of Existence.

Maintain and preserve
(subject to Section 7.5) (a) its existence and good standing in the jurisdiction of its organization and (b) its qualification
to do business and good standing in each jurisdiction where the nature of its business makes such qualification necessary, other than
any such jurisdiction where the failure to be qualified or in good standing could not reasonably be expected to have a Material Adverse
Effect.

		6.6	Employee Benefit Plans.

Maintain, and cause each
Subsidiary to maintain, each Pension Plan (if any) in compliance with all applicable requirements of law and regulations, except where
the failure to comply could not reasonably be expected to have a Material Adverse Effect.

    	 	 41	 

    	 	 

    

		6.7	Environmental Matters.

If any release or disposal
of Hazardous Substances shall occur or shall have occurred on any real property or any other assets of the Note Parties or any Subsidiary,
cause, or direct the applicable Note Party or Subsidiary to cause, the prompt containment and removal of such Hazardous Substances and
the remediation of such real property or other assets as is necessary to comply with all Environmental Laws and to preserve the value
of such real property or other assets where the failure to do so could reasonably be expected to have a Material Adverse Effect. Without
limiting the generality of the foregoing, the Note Parties shall, and shall cause each other Note Party and Subsidiary to, comply in all
material respects with each valid Federal or state judicial or administrative order requiring the performance at any real property by
the Note Parties or their Subsidiaries of activities in response to the release or threatened release of a Hazardous Substance.

		6.8	Further Assurances.

Take, and cause each other
Note Party and Subsidiary to take, such actions as are necessary or as Agent or the Required Purchasers may reasonably request from time
to time to ensure that the Obligations of the Note Parties under the Investment Documents are secured by a first priority perfected Lien
in favor of Agent (subject only to the Permitted Liens and except as otherwise expressly provided by the Investment Documents) on substantially
all of the present and future assets (other than Excluded Property, as defined in the Guarantee and Collateral Agreement) of the Note
Parties (as well as all equity interests of the Companies and each Domestic Subsidiary) and guaranteed by each Note Party (including,
promptly upon the acquisition or creation thereof, any Domestic Subsidiary acquired or created after the Closing Date), in each case including
(a) the execution and delivery of (i) guaranties, security agreements, pledge agreements and (ii) mortgages or deeds of trust (as applicable)
for all real property Collateral with a fair market value equal to or greater than $1,000,000, financing statements and other documents,
and the filing or recording of any of the foregoing and (b) the delivery of certificated securities and other Collateral with respect
to which perfection is obtained by possession. Without limiting the generality of the foregoing:

(i)                
the Note Parties shall pledge all of the capital stock and other equity interests of each of its Domestic Subsidiaries and First
Tier Foreign Subsidiaries (and provided that with respect to any such First Tier Foreign Subsidiary, such pledge shall be limited to sixty-five
percent (65%) of such First Tier Foreign Subsidiary’s outstanding voting capital stock and other equity interests and one hundred
percent (100%) of such First Tier Foreign Subsidiary’s outstanding non-voting capital stock and other equity interests) to Agent,
for the benefit of Agent and the Secured Parties, to secure the Obligations.

(ii)             
in the event any Note Party acquires a fee ownership interest in any parcel or group of related parcels of real property not constituting
Excluded Real Property, within sixty (60) days of such acquisition (or such longer period as may be agreed to by Agent), such Note Party
shall execute and/or deliver to Agent (unless otherwise waived in writing by Agent), (v) an appraisal and flood determination in each
case complying with FIRREA, (w) to the extent such real property is located in a Special Flood Hazard Area, evidence of Flood Insurance
as required by Section 6.3(b), (x) a fully

    	 	 42	 

    	 	 

    

executed Mortgage securing all Obligations,
in form and substance reasonably satisfactory to Agent together with an A.L.T.A. lender’s title insurance policy issued by a title
insurer reasonably satisfactory to Agent, in form and substance reasonably satisfactory to Agent insuring that the Mortgage is a valid
and enforceable first priority Lien on the respective property, free and clear of all defects, encumbrances and Liens other than Permitted
Liens, (y) to the extent required in order to obtain a title insurance policy (without survey exception or qualification) for such real
property, then current A.L.T.A. surveys, certified to Agent by a licensed surveyor sufficient to allow the issuer of the lender’s
title insurance policy to issue such policy without a survey exception and (z) if obtained by such Note Party in connection with the acquisition
of such real property, an environmental site assessment prepared by a qualified firm; and

(iii)           
notwithstanding anything to the contrary in this Agreement or any Investment Document, no Note Party shall be required to pledge
or grant security interests in any particular assets if the Agent and the Company Representative mutually agree that the costs of creating
or perfecting such pledges or security interests in such assets (including any mortgage, stamp, intangibles or other tax) are excessive
in relation to the benefit to the Purchasers afforded thereby.

		6.9	Post-Closing Obligations.

Notwithstanding the conditions
precedent set forth in Section 4 above, the Companies have informed Agent and the Purchasers that certain of such items required
to be delivered to Agent or otherwise satisfied as conditions precedent to the effectiveness of this Agreement will not be delivered to
Agent as of the date hereof. Therefore, with respect to the items set forth on Schedule 6.9 or pursuant to any letter agreement
between the Note Parties and Agent (collectively, the “Outstanding Items”), and notwithstanding anything to the contrary
contained herein or in any other Investment Document, the Note Parties shall deliver or otherwise satisfy each Outstanding Item to Agent
in the form, manner and time set forth thereon for such Outstanding Item or as Agent may otherwise agree in its sole discretion.

		Section	7                 
Negative Covenants.

Until all Obligations have
been Paid in Full, the Note Parties agree that, unless at any time Required Purchasers shall otherwise expressly consent in writing, it
will:

7.1             
Debt.

Not, and not permit any
Subsidiary to, create, incur, assume or suffer to exist any Debt, except:

(a)              
Obligations under this Agreement and the other Investment Documents;

(b)              
Debt secured by Liens permitted by Section 7.2(d), and extensions, renewals and refinancings thereof; provided that
the aggregate amount of all such Debt at any time outstanding shall not exceed $2,000,000;

    	 	 43	 

    	 	 

    

(c)              
 Debt of the Companies to any Wholly-Owned Domestic Subsidiary or Debt of any Wholly-Owned Domestic Subsidiary to the Companies
or another Wholly-Owned Domestic Subsidiary of the Companies; provided that, if requested by Agent, such Debt shall be evidenced
by a demand note in form and substance reasonably satisfactory to Agent and pledged and delivered to Agent pursuant to the Guarantee and
Collateral Agreement as additional collateral security for the Obligations, and the obligations under such demand note shall be subordinated
to the Obligations hereunder in a manner reasonably satisfactory to Agent;

(d)              
Hedging Obligations for bona fide hedging purposes (and not for speculation);

(e)              
Debt described on Schedule 7.1 as of the Closing Date, and any extension, renewal or refinancing thereof so long as the
principal amount thereof is not increased;

(f)               
Debt incurred at any time following consummation of the Closing Date Transactions in the form of or otherwise pursuant to a revolving
credit facility from a lender or lenders, in amounts and with documentation and terms reasonably acceptable to Agent, so long as such
Debt is at all times subject to an intercreditor agreement acceptable to Agent;

(g)              
Contingent Obligations arising with respect to customary indemnification obligations in favor of purchasers in connection with
dispositions permitted under Section 7.5;

(h)              
In amounts acceptable to the Agent, (i) (A) Permitted Seller Debt and (B) Debt of a Subsidiary of a Company acquired pursuant to
a Permitted Acquisition (or Debt of a Target assumed at the time of a Permitted Acquisition of such Target) so long as, in each case,
such Debt was not incurred in contemplation of such Permitted Acquisition;

(i)                
Contingent Obligations arising under guarantees by a Note Party of Debt or other obligations of any other Note Party (other than
Parent), which Debt or other obligations are otherwise permitted hereunder; provided that if such obligation is subordinated to
the Obligations, such guarantee shall be subordinated to the same extent;

(j)                
Debt consisting of unpaid insurance premiums (not in excess of one (1) year’s premiums) owing to insurance companies and
insurance brokers incurred in connection with the financing of insurance premiums in the ordinary course of business;

(k)              
unsecured guarantees (i) made in the ordinary course of business with respect to appeal bonds; (ii) made in the ordinary course
of business with respect to surety bonds, customs bonds, performance bonds, bid bonds, completion guarantees and similar obligations,
in each case to the extent such bonds, guarantees or other obligations are permitted under clause (l) below, or (iii) arising as a result
of customary indemnification obligations to purchasers that are not Affiliates of a Note Party in connection with any disposition permitted
by Section 7.5 hereof;

(l)                
indebtedness incurred in the ordinary course of business under (i) appeal bonds and (ii) surety bonds, customs bonds, performance
bonds, bid bonds, completion

    	 	 44	 

    	 	 

    

guarantees and similar obligations in an aggregate
amount, with respect to this clause (ii), not to exceed $750,000 at any time outstanding;

(m)            
unsecured Debt of Parent owing to former employees, officers, or directors (or any spouses, former spouses, or estates of any of
the foregoing) of Parent, the Companies and their Subsidiaries to finance the repurchase by Parent of equity interests of Parent that
have been issued to such Persons upon the death or separation from employment thereof, so long as (i) no Event of Default has occurred
and is continuing at the time of issuance or would result from the incurrence of such Debt and (ii) the aggregate amount of all such Debt
outstanding at any one time does not exceed $1,000,000;

(n)              
unsecured indebtedness representing deferred compensation or similar obligations to employees, officers and directors incurred
in the ordinary course of business;

(o)              
[reserved];

(p)              
[reserved];

(q)              
Debt in connection with permitted intercompany advances, loans and capital contributions permitted by Section 7.11(q) below;

(r)               
Contingent payment obligations and contingent liabilities in respect of customary indemnification obligations and customary post-closing
adjustments or “true-ups” of purchase price in connection with any Permitted Acquisition;

(s)               
accrued unpaid management fees, in an aggregate amount not to exceed $750,000 per Fiscal Year, to the extent not permitted to be
paid pursuant to Section 7.4(h); and

(t)                
other unsecured Debt, in addition to the Debt listed above, in an aggregate outstanding amount not at any time exceeding $2,000,000.

7.2             
Liens.

Not, and not permit any
Subsidiary to, create or permit to exist any Lien on any of its real or personal properties, assets or rights of whatsoever nature (whether
now owned or hereafter acquired), except:

(a)              
Liens for Taxes, assessments or other governmental charges not at the time delinquent or thereafter payable without penalty or
being diligently contested in good faith by appropriate proceedings and, in each case, for which it maintains adequate reserves in accordance
with GAAP and the execution or other enforcement of which is effectively stayed;

(b)              
Liens arising in the ordinary course of business, such as (i) Liens of carriers, warehousemen, mechanics, landlords and materialmen
and other similar Liens imposed by law, (ii) Liens arising by statute or ordinance and incurred in connection with worker’s compensation,
unemployment compensation and other types of social security

    	 	 45	 

    	 	 

    

(excluding Liens arising under ERISA) or in
connection with surety bonds, customs bonds, bids, performance bonds, completion guarantees and similar obligations for sums not overdue
or being diligently contested in good faith by appropriate proceedings and not involving any deposits or advances or borrowed money or
the deferred purchase price of property or services and, in each case, for which it maintains adequate reserves in accordance with GAAP
and the execution or other enforcement of which is effectively stayed and (iii) good faith deposits in connection with tenders, bids,
contracts or leases to which any Note Party is a party or other cash deposits, in each case required to be made in the ordinary course
of business;

(c)              
Liens described on Schedule 7.2 as existing as of the Closing Date and any replacement Liens that do not increase the obligations
secured thereby or the collateral subject thereto;

(d)              
subject to the limitation set forth in Section 7.1(b), (i) Liens arising in connection with Capital Leases (and attaching
only to the property being leased), (ii) Liens existing on property at the time of the acquisition thereof by the Companies or any Subsidiary
(and not created in contemplation of such acquisition) and (iii) Liens that constitute purchase money security interests on any property
securing debt incurred for the purpose of financing all or any part of the cost of acquiring such property, provided that any such Lien
attaches to such property within 60 days of the acquisition thereof and attaches solely to the property so acquired;

(e)              
attachments, appeal bonds, judgment and other similar Liens, for sums not exceeding $750,000 arising in connection with court proceedings;
provided that the execution or other enforcement of such Liens is effectively stayed and the claims secured thereby are being actively
contested in good faith and by appropriate proceedings;

(f)               
easements, rights of way, licenses, restrictions, minor defects or irregularities in title and other similar Liens and encumbrances
against real property owned or leased by a Note Party not interfering in any material respect with the ordinary conduct of the business
of such Note Party or any of its Subsidiaries;

(g)              
Liens securing the obligations under the Investment Documents;

(h)              
the replacement, extension or renewal of any Lien permitted by clause (c) above upon or in the same property subject thereto arising
out of the extension, renewal or replacement of the Debt secured thereby (without increase in the amount thereof);

(i)                
Liens securing Debt permitted under Section 7.1(j) hereof on the policies being financed, including in respect thereof,
all returns of premium, dividend payments and loss payments which reduce unearned premiums;

(j)                
any interest or title of a lessor, licensor, sublessor or sublicensor under any lease or license permitted by this Agreement;

(k)              
non-exclusive licenses, sublicenses, leases or subleases granted to third parties in the ordinary course of business not interfering
with the business of the Note Parties or any of their Subsidiaries;

    	 	 46	 

    	 	 

    

(l)                
 customary rights of set-off, revocation, refund or chargeback under deposit agreements or under the Uniform Commercial Code of
banks or other similar financial institutions where any Note Party maintains deposits, solely to the extent incurred in connection with
the maintenance of deposit accounts at such institutions in the ordinary course of business;

(m)            
Liens in favor of collecting banks arising under Section 4-210 of the Uniform Commercial Code and other banker’s liens or
rights of set off arising by operation of Law in favor of banks or other depository institutions;

(n)              
Liens on earnest money deposits made in cash by the Companies or any of their respective Subsidiaries in connection with any letter
of intent or purchase agreement in connection with a Permitted Acquisition;

(o)              
Liens consisting of an agreement to sell, transfer, lease or otherwise dispose of any property in a disposition permitted by Section
7.5 hereof, solely to the extent such disposition would have been permitted under this Agreement on the date of the creation of such
Lien;

(p)              
Liens securing Debt permitted under Section 7.1(f) hereof on the assets of the Companies subject to an intercreditor agreement
acceptable to Agent, provided that any such Liens, other than Liens on a Company’s Inventory, Accounts Receivable and/or
other current assets shall be junior and subordinate to the Liens securing the Obligations;

(q)              
Liens in favor of customs and revenue authorities arising as a matter of law which secure payment of customs duties in connection
with the importation of goods in the ordinary course; and

(r)               
other Liens as to which the aggregate amount of the obligations secured thereby does not exceed $2,000,000;

7.3             
[Reserved].

7.4             
Restricted Payments.

Not, and not permit any
Subsidiary to, (a) make any dividend or other distribution to any of its equity holders (other than dividends or distributions payable
in its stock, membership interests, or other equity interests not constituting Disqualified Stock), (b) purchase or redeem any of its
equity interests or any warrants, options or other rights in respect thereof, (c) pay any management or other similar fees to any of its
equity holders or any Affiliate thereof, (d) make any redemption, prepayment (whether mandatory or optional), defeasance, repurchase or
any other payment in respect of any Subordinated Debt or (e) set aside funds for any of the foregoing (each of the foregoing, a “Restricted
Payment”). Notwithstanding the foregoing;

(a)              
any Subsidiary may pay dividends or make other distributions to the Companies or to a Wholly-Owned Domestic Subsidiary;

(b)              
the Companies may make distributions to Parent, to permit Parent to (i) pay with respect to a consolidated, combined, unitary or
similar type Tax return with

    	 	 47	 

    	 	 

    

Parent, U.S. federal, state and local income
Taxes then due and payable in respect of such return, provided that the amount of such distributions shall not be greater than the amount
of such Taxes that would have been due and payable by the Companies (and their relevant Subsidiaries) had the Companies not filed a consolidated,
combined, unitary or similar type return with Parent and franchise Taxes and other similar corporate expenses of Parent incurred in the
ordinary course of business and (ii) pay any Tax refunds due or payable to Seller pursuant to Section 6.07(i) of the Nautilus Acquisition
Agreement;

(c)              
in each case to the extent due and payable as permitted under the subordination agreement or subordination provisions applicable
thereto, if any, the Companies and any applicable Subsidiary may make regularly scheduled principal and interest payments in respect of
Permitted Seller Debt and required payments in respect of Permitted Earn-Outs, subject to there being, in each case, immediately before
and immediately after giving effect thereto no Default or Event of Default;

(d)              
so long as no Event of Default exists or would result therefrom, the Companies may make distributions to Parent to permit Parent
to redeem securities of Parent held by officers, directors and employees of Parent, the Companies or any of their Subsidiaries upon the
death or separation from employment thereof, in an amount not to exceed $1,500,000 in the aggregate after the date hereof;

(e)              
Parent may redeem, retire, purchase, repurchase or otherwise acquire its equity interests or the equity interests of Parent at
any time, so long as such transactions are completed solely with the proceeds of an Excluded Issuance described in clause (a)(iii) of
the definition of Excluded Issuance;

(f)               
the Companies may make required payments in respect of Subordinated Debt (other than Permitted Seller Debt and Permitted Earn-Outs
(which are governed by clause (c) above)), in each case, to the extent permitted by the applicable subordination terms or subordination
agreement;

(g)              
so long as no Event of Default exists or would result therefrom, Douglas may make cash distributions to Parent in an aggregate
amount not to exceed $500,000 in any Fiscal Year in order to pay customary holding company fees, costs and expenses;

(h)              
so long as no Specified Event of Default exists or would result therefrom, the Note Parties may make payments of management fees
to Sponsor and any Investment Affiliate in accordance with the terms of the Management Agreement; provided that if at any time any such
management fees are not permitted to be paid as a result of the occurrence and continuance of a Specified Event of Default, then (i) such
amounts shall continue to accrue, and (ii) any such amounts that have accrued but were not permitted to be paid may thereafter be paid
when no Specified Events of Default are continuing or would result therefrom;

(i)                
the Note Parties may pay out-of-pocket costs or expenses incurred by Sponsor and any Investment Affiliate in connection with their
management of the Companies and the other Note Parties in accordance with the terms of the Management Agreement;

    	 	 48	 

    	 	 

    

(j)                
 the Note Parties may make (and/or the Companies may make distributions to Parent to permit Parent to make, as applicable) indemnification
payments to Sponsor and any Investment Affiliate in their capacity as equity owners or as board members, observers or managers pursuant
to Article IX of the Parent LLC Agreement as in effect on the Closing Date;

(k)              
 the Note Parties may make distributions sufficient to enable the payments of fees, costs and expenses to any individual directors
or managers of Parent in an aggregate amount not to exceed $400,000 in any Fiscal Year;

(l)                
[reserved];

(m)            
the Note Parties may make payments of transaction fees and expenses actually incurred by Sponsor and LLCP and its Affiliates in
connection with the consummation of the transactions contemplated by this Agreement, the Nautilus Acquisition Agreement and the Related
Agreements;

(n)              
during any given Fiscal Quarter, beginning with the Fiscal Quarter ending December 31, 2021, the Note Parties may make a single
Restricted Payment to Parent in order to permit Parent to pay dividends to its equity holders from the proceeds of such cash distribution,
but only to the extent that no Default or Event of Default then exists or would result therefrom; and

(o)              
the Note Parties may make payments pursuant to Section 6.07(i) of the Nautilus Acquisition Agreement.

7.5             
Mergers; Consolidations; Asset Sales.

(a)              
Not, and not permit any Subsidiary to, merge or consolidate with any Person, except for (i) any such merger or consolidation of
any Subsidiary with and into Douglas or any Wholly-Owned Domestic Subsidiary or of any Foreign Subsidiary with another Foreign Subsidiary
and (ii) Permitted Acquisitions.

(b)              
Not, and not permit any Subsidiary to, sell, transfer, dispose of, convey or lease any of its assets (including equity interests
owned by it), or sell or assign with or without recourse any receivables, except for:

(i)                
sales of inventory in the ordinary course of business;

(ii)             
sales and dispositions of assets (excluding any equity interests of the Companies or any Subsidiary) for at least fair market value
(as determined by the board of directors (or similar governing body, including the manager of a manager managed limited liability company)
of the Companies) so long as the net book value of all assets sold or otherwise disposed of in any Fiscal Year does not exceed $1,000,000;

(iii)           
the use of cash or Cash Equivalent Investments in a manner not prohibited by the Investment Documents and the making of Investments
otherwise permitted hereunder;

    	 	 49	 

    	 	 

    

(iv)            
 non-exclusive licenses, sublicenses, leases or subleases granted between Note Parties or to third parties in the ordinary course
of business not interfering with the business of the Note Parties;

(v)              
the lapse, abandonment or other dispositions of intellectual property that is, in the reasonable good faith judgment of a Note
Party, no longer economically practicable or commercially desirable to maintain or useful in the conduct of the business of the Note Parties
or any of their Subsidiaries;

(vi)            
dispositions resulting from casualty events, provided the proceeds thereof are applied in accordance with the terms of this Agreement,
as applicable, and abandonment or similar disposition of non-saleable damaged property;

(vii)         
dispositions in the ordinary course of business of obsolete or worn-out equipment, raw materials and inventory, in each case, no
longer used or useful in the business of any Note Party;

(viii)       
the sale of delinquent notes or accounts receivable in the ordinary course of business for purposes of collection only (and not
for the purpose of any bulk sale or securitization transaction);

(ix)            
the granting of Permitted Liens;

(x)              
any involuntary condemnation, seizure or taking, by exercise of the power of eminent domain or otherwise, or confiscation or requisition
of use of property; and

(xi)            
(A) the surrender or termination of contractual rights in the ordinary course of business and subject to the exercise of reasonable
business judgment of such Note Party or Subsidiary or (B) the settlement, release, termination, waiver, release or surrender of any contract,
tort or other litigation claims in the ordinary course of business and subject to the exercise of reasonable business judgment of such
Note Party or Subsidiary.

7.6             
Modification of Organizational Documents.

Not permit the charter,
by-laws or other organizational documents of any Note Party to be amended or modified in any way which could reasonably be expected to
adversely affect the interests of Agent or any Purchaser.

7.7             
Use of Proceeds.

Use the proceeds of the
Notes, solely to refinance or repay the Existing Debt, to fund a portion of the Purchase Price (as defined in the Nautilus Acquisition
Agreement), to pay a portion of the fees and expenses related to the Related Transactions and the other transactions contemplated hereunder,
for Permitted Acquisitions and permitted Investments, and for other general business purposes of the Companies and the Subsidiaries; and
not use or permit any

    	 	 50	 

    	 	 

    

proceeds of any Note to be used, either directly
or indirectly, for the purpose, whether immediate, incidental or ultimate, of “purchasing or carrying” any Margin Stock.

7.8             
Transactions with Affiliates.

Not, and not permit any
Subsidiary to, enter into, or cause, suffer or permit to exist any transaction, arrangement or contract with any of its other Affiliates,
which is on terms which are less favorable than are obtainable from any Person which is not one of its Affiliates, except;

(i)                
transactions, arrangements and contracts which are on terms which are not less favorable to it or such other Note Party or Subsidiary
than are obtainable from any Person which is not one of its Affiliates;

(ii)             
as expressly permitted by this Agreement and the other Investment Documents; or

(iii)           
the consummation of the Related Transactions.

7.9             
Inconsistent Agreements.

Not, and not permit any
Subsidiary to, enter into any agreement containing any provision which would (a) be violated or breached by any borrowing by the Companies
hereunder or by the performance by any Note Party of any of its Obligations hereunder or under any other Investment Document, (b) prohibit
the Note Parties from granting to Agent and the Secured Parties a Lien on any of its assets or (c) create or permit to exist or become
effective any encumbrance or restriction on the ability of any other Note Party to (i) pay dividends or make other distributions to the
Companies or any other Subsidiary, or pay any Debt owed to the Companies or any other Subsidiary, (ii) make loans or advances to the Companies
or any other Note Party, or (iii) transfer any of its assets or properties to the Companies or any other Note Party other than (A) customary
restrictions and conditions contained in agreements relating to the sale of the capital stock or assets of any Subsidiary pending such
sale, provided such restrictions and conditions apply only to the capital stock or assets to be sold and such sale is permitted hereunder,
(B) restrictions or conditions imposed by any agreement relating to purchase money Debt, Capital Leases and other secured Debt permitted
by this Agreement if such restrictions or conditions apply only to the property or assets securing such Debt and (C) customary provisions
in leases, licenses and other contracts restricting the assignment thereof.

7.10         
Business Activities.

Not, and not permit any
Subsidiary to, engage in any line of business other than the businesses engaged by it in on the Closing Date and businesses reasonably
related, incidental or ancillary thereto. Not, and not permit any Subsidiary to, issue any equity interest that is Disqualified Stock.

    	 	 51	 

    	 	 

    

 

7.11         
Investments.

Not, and not permit any
Subsidiary to, make or permit to exist any Investment in any other Person, except the following:

(a)              
contributions by the Companies to the capital of any Wholly-Owned Domestic Subsidiary, or by any Subsidiary to the capital of any
other Wholly-Owned Domestic Subsidiary of the Companies, so long as the recipient of any such capital contribution has guaranteed the
Obligations and such guaranty is secured by a pledge of all of its equity interests and substantially all of its real and personal property,
in each case in accordance with Section 6.8;

(b)              
Investments constituting Debt permitted by Section 7.1(c) or Section 7.1(d);

(c)              
Contingent Obligations constituting Debt permitted by Section 7.1 or Liens permitted by Section 7.2;

(d)              
Cash Equivalent Investments;

(e)              
bank deposits in the ordinary course of business;

(f)               
Investments received in satisfaction of judgments, settlements of debts or compromises of obligations or as consideration for the
settlement, release or surrender of a contract, tort or other litigation claim, including pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of an Account Debtor, upon the foreclosure or enforcement of any Lien in favor of a Note
Party or its Subsidiaries or in connection with any settlement of delinquent accounts in the ordinary course of business;

(g)              
Investments listed on Schedule 7.11 as of the Closing Date;

(h)              
any purchase or other acquisition by the Companies or any Wholly-Owned Domestic Subsidiary of the Companies of the assets or equity
interests of any Domestic Subsidiary of the Companies;

(i)                
Permitted Acquisitions;

(j)                
promissory notes and other non-cash consideration received in connection with Dispositions permitted pursuant to Section 7.5
hereof;

(k)              
advances made in connection with purchases of goods or services in the ordinary course of business;

(l)                
cash deposits made in the ordinary course of business to secure performance of (i) Operating Leases and (ii) other contractual
obligations that do not constitute Debt;

    	 	 52	 

    	 	 

    

(m)            
 non-cash loans to employees, officers and directors of the Companies or any of their respective Subsidiaries for the purpose of
purchasing equity interests in Parent so long as the proceeds of such loans are used in their entirety concurrently with their issuance
to purchase such equity interests in Parent;

(n)              
earnest money deposits made in cash in connection with any letter of intent or purchase agreement in connection with a Permitted
Acquisition;

(o)              
guarantees permitted under Section 7.1;

(p)              
investments in negotiable instruments deposited or to be deposited for collection in the ordinary course of business;

(q)              
loans, capital contributions or other advances made by (i) any Note Party to or in any other Note Party (other than Parent), (ii)
any Note Party to or in any non- Note Party in an aggregate (in the case of loans and other advances, principal) amount, for all such
loans, capital contributions and other advances made by all Note Parties, not to exceed $300,000 at any time outstanding, provided that
all such loans and other advances made by a Note Party shall be evidenced by notes to be pledged, endorsed and delivered to Agent, and
(iii) any non-Note Party to or in any other non- Note Party or to or in any Note Party;

(r)               
other Investments (excluding any Investments consisting of general partnership interests or other equity securities with unlimited
equity holder liability) loans and advances in addition to those otherwise permitted by this Section to the extent the aggregate amount
of such other Investments, loans and advances made after the date hereof does not exceed $1,500,000 in the aggregate at any time outstanding;

(s)               
promissory notes for the purpose of settling delinquent accounts receivable;

(t)                
trade credit extended in the ordinary course of business;

(u)              
advances to employees and independent contractors, with respect to expenses incurred or to be incurred by such Person, which expenses
(i) are ordinary and necessary business expenses, and (ii) do not exceed in the aggregate $250,000, outstanding at any one time;

(v)              
advances to customers made in connection with sales of goods or services to those customers in the ordinary course of business;
and

(w)            
Investments made solely to fund any deferred compensation plans of any Note Party for its employees which deferred compensations
plans have been approved in advance and in writing by Agent.

In determining the amount of investments, acquisitions,
loans, and advances permitted under this Section, investments and acquisitions shall always be taken at the original cost thereof (regardless
of any subsequent appreciation or depreciation therein), and loans and advances shall be taken at the principal amount thereof then remaining
unpaid.

    	 	 53	 

    	 	 

    

7.12         
 Restriction of Amendments to Certain Documents.

Not amend or otherwise modify,
or waive (or permit any Subsidiary to amend, modify or waive) any rights under any Related Agreement, or under any documents evidencing,
securing, or otherwise governing any Debt permitted under Section 7.1(f), other than, in each case, amendments, modifications and
waivers not materially adverse to the interests of Agent or any Purchaser, without the prior written consent of Agent (which consent shall
not be unreasonably withheld or delayed).

7.13         
Fiscal Year.

Not change its Fiscal Year.

7.14         
Financial Covenant.

Maximum Total Leverage
Ratio. The Total Leverage Ratio of the Parent and its Subsidiaries as of any Computation Period shall not exceed the applicable ratio
set forth below for such Computation Period:

	
    Computation

    Period Ending
	
    Total

    Leverage Ratio

     

	December 31, 2021	5.50:1.00
	March 31, 2022	5.50:1.00
	June 30, 2022	5.50:1.00
	September 30, 2022	5.50:1.00
	December 31, 2022	5.50:1.00
	March 31, 2023	5.50:1.00
	June 30, 2023	5.50:1.00
	September 30, 2023	5.25:1.00
	December 31, 2023	5.25:1.00
	March 31, 2024	5.25:1.00
	June 30, 2024	5.25:1.00
	September 30, 2024 and each Computation Period thereafter	5.00:1.00

 

7.15         
Bank Accounts; Account Control Agreements.

Not, and not permit any
other Note Party, to maintain or establish any new bank accounts other than the bank accounts set forth on Schedule 7.15 (which
bank accounts constitute all of the deposit accounts, securities accounts or other similar accounts maintained by the Note Parties as
of the Closing Date) without prior written notice to Agent and unless, if requested by Agent,

    	 	 54	 

    	 	 

    

such Company or such other applicable Note Party
and the bank or other financial institution at which the account is to be opened enter into an account control agreement, in form and
substance satisfactory to Agent, regarding such bank account pursuant to which such bank and the applicable Note Party acknowledges the
security interest and control of Agent in such account and agrees to limit its set-off rights with respect thereto. It is understood and
agreed that, in the case of any Exempt Account, (i) the foregoing requirement to deliver an account control agreement shall not apply
and (ii) notice of the opening of such Exempt Account shall not be required until promptly after the opening thereof.

7.16         
Subsidiaries.

Not, and not permit any
other Note Party to, establish or acquire any Subsidiary except for a Subsidiary that is a Target in a Permitted Acquisition, a Wholly-Owned
Domestic Subsidiary of a Company formed for the sole purpose of consummating a Permitted Acquisition, or the formation of a Wholly-Owned
Domestic Subsidiary of a Company, provided that in the case of each of the foregoing, the Companies have (and have caused the applicable
Subsidiary to have) complied with the applicable further assurances obligations set forth in Section 6.8 hereof.

		Section	8                 
Events of Default; Remedies.

8.1             
Events of Default.

Each of the following shall constitute an Event of Default under
this Agreement:

		8.1.1	Non-Payment of Credit.

Default in the payment
when due of the principal of any Note; or default, and continuance thereof for five (5) Business Days, in the payment when due of any
interest, fee or other amount payable by any Note Party hereunder or under any other Investment Document.

		8.1.2	Default Under Other Debt.

(i) After giving effect
to all applicable grace and cure periods, any default shall occur under the terms applicable to any Debt of any Note Party in an aggregate
amount (for all such Debt so affected and including undrawn committed or available amounts and amounts owing to all creditors under any
combined or syndicated credit arrangement) exceeding $350,000 and such default shall (a) consist of the failure to pay such Debt when
due, whether by acceleration or otherwise, or (b) accelerate the maturity of such Debt or permit the holder or holders thereof, or any
trustee or agent for such holder or holders, to cause such Debt to become due and payable (or require Companies or any other Note Party
to purchase or redeem such Debt or post cash collateral in respect thereof) prior to its expressed maturity.

		8.1.3	Bankruptcy; Insolvency.

Any Note Party applies
for, consents to, or acquiesces in the appointment of a trustee, receiver or other custodian for such Note Party or any property thereof,
or makes a general assignment for the benefit of creditors; or in the absence of such application, consent or acquiescence, a trustee,
receiver or other custodian is appointed for any Note Party or for a substantial part of the property of any thereof and is not discharged
within sixty (60) days; or

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any bankruptcy, reorganization, debt arrangement,
or other case or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is commenced in respect
of any Note Party, and if such case or proceeding is not commenced by such Note Party, it is consented to or acquiesced in by such Note
Party, or remains for sixty (60) days un-dismissed; or any Note Party takes any action to authorize, or in furtherance of, any of the
foregoing.

		8.1.4	Non-Compliance with Investment Documents.

(a) Failure by the Note
Parties to comply with or to perform any covenant set forth in Sections 6.1.5(a), 6.3(b) (solely with respect to the first
sentence of such subsection), 6.5(a) (solely with respect to the existence of a Company) or 7; (b) failure by the Note Parties,
and continuance thereof for five (5) Business Days, to comply with or to perform any covenant set forth in Sections 6.1.1, 6.1.2,
6.1.3, 6.1.6, 6.1.8, 6.5(a) (other than with respect to the existence of a Company), or 6.8; or (c)
failure by any Note Party to comply with or to perform any other provision of this Agreement or any other Investment Document applicable
to it (and not constituting an Event of Default under any other provision of this Section 8) and continuance of such failure described
in this clause (c) for thirty (30) days after the earlier of (1) receipt by any the Note Parties of notice from Agent or any Purchaser
of such failure or (2) actual knowledge of any of the Note Parties of such failure.

		8.1.5	Representations; Warranties.

Any representation or warranty
made by any Note Party herein or in any other Investment Document or any certificate executed by any Note Party in favor of Agent or any
Purchaser in connection herewith is untrue in any material respect on the date as of which the facts therein set forth are stated or certified.

		8.1.6	Pension Plans.

(a) Institution of any
steps by any Person to terminate a Pension Plan if as a result of such termination any Note Party or any member of the Controlled Group
could be required to make a contribution to such Pension Plan, or could incur a liability or obligation to such Pension Plan, in excess
of $250,000; (b) a contribution failure occurs with respect to any Pension Plan sufficient to give rise to a Lien under Section 302(f)
of ERISA; or (c) there shall occur any withdrawal or partial withdrawal from a Multiemployer Pension Plan and the withdrawal liability
(without un-accrued interest) to Multiemployer Pension Plans as a result of such withdrawal (including any outstanding withdrawal liability
that the Companies or any other Note Party or any member of the Controlled Group have incurred on the date of such withdrawal) exceeds
$250,000.

		8.1.7	Judgments.

Final judgments which exceed
an aggregate of $250,000 (to the extent not covered by independent third party insurance in compliance with the requirements of Section
6.3(b) hereof, but only to the extent the applicable insurance carrier has not denied coverage) shall be rendered against any Note
Party and shall not have been paid, discharged, bonded or

    	 	 56	 

    	 	 

    

vacated or had execution thereof stayed pending
appeal within thirty (30) days after entry or filing of such judgments.

		8.1.8	Invalidity of Collateral Documents.

(i) Any Collateral Document
shall cease to be in full force and effect; or any Note Party (or any Person by, through or on behalf of any Note Party) shall contest
in any manner the validity, binding nature or enforceability of any Collateral Document or (ii) any default or breach under any intercreditor
agreement governing Debt permitted under Section 7.1(f) hereof or such agreement shall cease to be in full force and effect for
any reason other than the payment, discharge and/or termination, as applicable, in full of the Obligations or of the Debt and all commitments
to lend under the revolving debt facility subject of such intercreditor agreement.

		8.1.9	Invalidity of Subordination Provisions.

Any subordination provision
in any document or instrument governing Subordinated Debt or any subordination provision in any subordination agreement that relates to
any Subordinated Debt, or any subordination provision in any guaranty by any Note Party of any Subordinated Debt, shall cease to be in
full force and effect, or any Person (including the holder of any applicable Subordinated Debt) shall contest in any manner the validity,
binding nature or enforceability of any such provision.

		8.1.10	[Reserved].

		8.1.11	Change of Control.

(a)              
(i) Sponsor and its Investment Affiliates shall collectively cease to, directly or indirectly, own and control at least fifty-one
percent (51.0%) of the equity interests of each of the Companies (through its direct or indirect ownership of the equity interests of
Parent), after giving effect to the Related Transactions or (ii) LLCP shall cease to possess the right to appoint or elect (through contract,
ownership of voting securities or otherwise) at all times a majority of the board of directors (or similar governing body, including the
manager of a manager-managed limited liability company) of Parent and the Companies and to direct the management policies and decisions
of Parent and each of the Companies, (b) any Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Securities
Exchange Act of 1934 as in effect on the Closing Date) other than Sponsor, LLCP or any of their respective Investment Affiliates shall
have acquired, directly or indirectly, a greater beneficial ownership in any Company’s voting equity interests than that held collectively
by Sponsor, LLCP and their respective Investment Affiliates in such Company, (c) a majority of Douglas’s board of directors (or
similar governing body, including the manager of a manager managed limited liability company) shall cease to consist of the directors
(or similar parties) of Douglas as of the Closing Date (after giving effect to the Related Transactions) and other directors (or similar
parties) whose nomination for election to Douglas’s board of directors (or similar governing body, including the manager of a manager
managed limited liability company) is recommended by either (A) Sponsor, LLCP or any of their respective Investment Affiliates or (B)
at least a majority of the foregoing described directors (or similar parties), (d) Parent shall cease to,

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directly or indirectly, own and control one
hundred percent (100%) of each class of the outstanding equity interests of each of its Subsidiaries (other than in connection with a
transaction expressly permitted by this Agreement) or (e) one hundred percent (100%) of the outstanding equity securities of Douglas shall
cease to be pledged to Agent pursuant to the terms of the Investment Documents.

		8.1.12	Activities of Parent and BuyerCo.

Parent or BuyerCo shall
(i) conduct any business other than (A) its ownership of the equity securities of the Companies (and the indirect ownership of the equity
securities of Subsidiaries of the Companies), (B) activities directly incidental or related thereto or necessary to maintain its corporate
existence (including (1) the payment of accounting and other professional fees and expenses and (2) the payment of tax liabilities of
the Note Parties and their Subsidiaries), and (C) its entry into confidentiality agreements in the ordinary course of business, (ii) own
any material assets other than the equity securities of the Companies (and the indirect ownership of the equity securities of Subsidiaries
of the Companies), (iii) incur any Debt or liabilities other than (A) liabilities incidental to the conduct of its business as a holding
company, (B) Debt or other liabilities under the Investment Documents and Related Agreements to which it is a party, and (C) Debt permitted
to be incurred by Parent under Section 7.1 or (iv) consolidate or merge with or into any other Person, except as permitted under
this Agreement; provided that with respect to BuyerCo, it shall be permitted to enter into and perform its obligations under the Nautilus
Acquisition Agreement; and provided further that with respect to Parent, it shall be permitted to enter into and perform its obligations
under or in respect of any Permitted Acquisition.

		8.2	Remedies.

If any Event of Default
described in Section 8.1.3 shall occur, the Notes and all other Obligations shall become immediately due and payable; and, if any
other Event of Default shall occur and be continuing Agent, upon the written request of Required Purchasers, shall declare all or any
part of the Notes and other Obligations to be due and payable, all without presentment, demand, protest or notice of any kind. Agent shall
promptly advise the Note Parties of any such declaration, but failure to do so shall not impair the effect of such declaration.

		Section	9                 
Agent.

9.1             
Appointment; Authorization.

Each Purchaser hereby irrevocably
appoints, designates and authorizes Agent to take such action on its behalf under the provisions of this Agreement and each other Investment
Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other
Investment Document, together with such powers as are reasonably incidental thereto and (ii) each Secured Party hereby irrevocably appoints,
designates and authorizes Agent to act as its collateral agent and representative for and on its behalf, and on behalf of the Indemnified
Parties, with respect to all Collateral matters and under the Collateral Documents. Each
Purchaser and each Secured Party hereby grants to Agent all such powers and authority as are necessary, desirable or appropriate to carry
out the functions and duties delegated or assigned to Agent hereunder and thereunder, including to take all actions

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as may be necessary, appropriate or desirable
in the sole judgment of Agent to accomplish any of the foregoing (including the authority to release Collateral from the Liens created
under the Collateral Documents and the other Investment Documents under the circumstances specifically provided herein and therein). Notwithstanding
any provision to the contrary contained elsewhere in this Agreement or in any other Investment Document, Agent shall not have any duty
or responsibility except those expressly set forth herein, nor shall (i) Agent have or be deemed to have any fiduciary relationship with
any Purchaser or (ii) Agent have or be deemed to have any fiduciary relationship with any Secured Party, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Investment Document or otherwise exist
against Agent.

9.2             
Credit Decision.

Each Purchaser acknowledges
that Agent has not made any representation or warranty to it, and that no act by Agent hereafter taken, including any review of the affairs
of the Companies and the other Note Parties, shall be deemed to constitute any representation or warranty by Agent to any Purchaser. Each
Purchaser represents to Agent that it has, independently and without reliance upon Agent and based on such documents and information as
it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and
other condition and creditworthiness of the Companies and the other Note Parties, and made its own decision to enter into this Agreement
and to extend credit to the Companies hereunder. Each Purchaser also represents that it will, independently and without reliance upon
Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement and the other Investment Documents, and to make such investigations
as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness
of the Note Parties. Except for notices, reports and other documents expressly herein required to be furnished to Purchasers by Agent,
Agent shall not have any duty or responsibility to provide any Purchaser with any credit or other information concerning the business,
prospects, operations, property, financial or other condition or creditworthiness of any Note Party which may come into the possession
of Agent.

9.3             
Delegation of Duties.

Agent may execute any of
their respective duties under this Agreement or any other Investment Document by or through agents, employees or attorneys in fact and
shall be entitled to advice of counsel concerning all matters pertaining to such duties. Agent shall undertake to perform such functions
and duties, and only such functions and duties, as are specifically set forth in this Agreement and the other Investment Documents, respectively,
and no implied covenants or obligations shall be read into this Agreement or any other Investment Document against Agent. The duties of
Agent shall be mechanical and administrative in nature, and Agent shall not have, or be deemed to have, by reason of this Agreement or
any other Investment Document or otherwise, a fiduciary or trust relationship in respect to any Purchaser or any other Secured Party.
Except as expressly set forth in this Agreement and any other Investment Document, Agent shall not have any duty to disclose, and shall
be liable for any failure to disclose, any information relating to any Note Party that is communicated to or obtained by Agent or any
of its Affiliates in any capacity. Neither Agent nor any of its Affiliates, nor any of its officers, partners, members, employees, attorneys,
agents or representatives, shall be liable to

    	 	 59	 

    	 	 

    

any Purchaser or any other Secured Party for
any action taken or suffered by it or them or omitted to be taken by it or them hereunder or under any other Investment Document, or in
connection herewith or therewith, except for damages caused directly by Agent’s own gross negligence or willful misconduct as determined
by a final non-appealable judgment of a court of competent jurisdiction. In no event shall Agent be liable or otherwise responsible for
any actions taken, or omitted to be taken, or any payments due from, any Note Party or Affiliate thereof.

In
addition, except as otherwise expressly provided for in this Agreement, Agent shall not have any obligation whatsoever to any Purchaser,
any Secured Party, or any other Person to investigate, confirm or assure that the Collateral exists or is owned by any Note Party or is
cared for, protected or insured or has been encumbered, or whether any particular reserves are appropriate, or that the Liens granted
to Agent in or pursuant to the Collateral Documents have been properly or sufficiently or lawfully created, perfected, protected or enforced
or are entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or
fidelity, or to continue exercising, any of the rights authorities and powers granted or available to Agent in this Agreement or any of
the other Investment Documents, it being understood and agreed that (i) in respect of the Collateral, or any act, omission or event related
thereto, Agent may act in any manner deemed appropriate, in its sole and absolute discretion, and (ii) that Agent shall not have any duty
or liability whatsoever to any Purchaser or any other Secured Party, other than liability for its own gross negligence or willful misconduct
as determined by a final non-appealable judgment of a court of competent jurisdiction. Each Purchaser and each other Secured Party hereby
appoints each other Purchaser and each other Secured Party as its agent for the purpose of perfecting Agent’s security interest
for the benefit of the Secured Parties in assets which, in accordance with Article 9 of the UCC, can be perfected by possession. Should
any Purchaser (other than Agent) obtain possession of any such Collateral, such Purchaser shall notify Agent thereof and, promptly upon
Agent’s request therefor, shall deliver such Collateral to Agent or in accordance with Agent’s instructions. In its
capacity as Agent, Agent has the right to exercise all rights and remedies available under the Investment Documents, the UCC and other
applicable law, as directed by the Required Purchasers, which rights and remedies shall include, in the event of a foreclosure by Agent
on any portion of the Collateral, whether pursuant to a public or private sale, the right of Agent, as agent for all Purchasers and with
the consent of the Required Purchasers, to be, or form an acquisition entity to be, the purchaser of any or all of such Collateral at
any such sale.

9.4             
Limited Liability.

None of Agent nor any of
its directors, officers, employees or agents shall (a) be liable for any action taken or omitted to be taken by any of them under or in
connection with this Agreement or any other Investment Document or the transactions contemplated hereby (except to the extent resulting
from its own gross negligence, bad faith or willful misconduct as determined by a court of competent jurisdiction), or (b) be responsible
in any manner to any Purchaser for any recital, statement, representation or warranty made by any Note Party or Affiliate of any Note
Party, or any officer thereof, contained in this Agreement or in any other Investment Document, or in any certificate, report, statement
or other document referred to or provided for in, or received by Agent under or in connection with, this Agreement or any other Investment
Document, or the validity, effectiveness, genuineness, enforceability or sufficiency

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of this Agreement or any other Investment Document
(or the creation, perfection or priority of any Lien or security interest therein), or for any failure of any Note Party or any other
party to any Investment Document to perform its Obligations hereunder or thereunder. Neither Agent nor Agent shall be under any obligation
to any Purchaser or Secured Party, as applicable, to ascertain or to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement or any other Investment Document, or to inspect the properties, books or records of any
Note Party or Affiliate of any Note Party.

9.5             
Reliance.

Agent shall be entitled
to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram,
facsimile, telex or telephone message, statement or other document believed by it to be genuine and correct and to have been signed, sent
or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to any Note Party), independent
accountants and other experts selected by Agent. Agent shall be fully justified in failing or refusing to take any action under this Agreement
or any other Investment Document unless it shall first receive such advice or concurrence of Required Purchasers (or all Purchasers if
expressly required hereunder) as it deems appropriate and, if it so requests, confirmation from Purchasers of their obligation to indemnify
Agent and/or Agent against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any
such action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Investment
Document in accordance with a request or consent of Required Purchasers (or all Purchasers if expressly required hereunder) and such request
and any action taken or failure to act pursuant thereto shall be binding upon each Purchaser.

9.6             
Notice of Default.

Neither Agent nor Agent
shall be deemed to have knowledge or notice of the occurrence of any Event of Default or Default except with respect to defaults in the
payment of principal, interest and fees required to be paid to Agent for the account of Purchasers, unless Agent shall have received written
notice from a Purchaser or the Company Representative referring to this Agreement, describing such Event of Default or Default and stating
that such notice is a “notice of default”. Agent will notify Purchasers of its receipt of any such notice or any such default
in the payment of principal, interest and fees required to be paid to Agent for the account of Purchasers. Agent shall take such action
with respect to such Event of Default or Default as may be requested by Required Purchasers in accordance with Section 8.2; provided,
that unless and until Agent, as the case may be, has received any such request, it may (but shall not be obligated to) take such action,
or refrain from taking such action, with respect to such Event of Default or Default as it shall deem advisable or in the best interest
of Purchasers (or the Secured Parties, as the case may be), except to the extent that this Agreement expressly requires that such action
be taken, or not be taken, only with the consent or upon the authorization of Required Purchasers.

9.7             
Indemnification.

Whether or not the transactions
contemplated hereby are consummated, each Purchaser shall indemnify upon demand Agent and their respective directors, officers, employees
and agents (collectively, together with Agent, the “Indemnified Parties”) (to the extent not

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reimbursed by or on behalf of the Companies
and without limiting the obligation of the Companies to do so in accordance with the terms of this Agreement), based on such Purchaser’s
pro rata share of the outstanding principal amount of the Notes, from and against any and all actions, causes of action, suits, losses,
liabilities, damages and expenses, including Legal Costs, except to the extent any thereof result from the applicable Person’s own
gross negligence or willful misconduct, as determined by a court of competent jurisdiction. Without limitation of the foregoing, each
Purchaser shall reimburse Agent and Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including Legal Costs)
incurred by Agent and/or Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
Agreement, any other Investment Document, or any document contemplated by or referred to herein, to the extent that Agent and/or Agent
is not reimbursed for such expenses by or on behalf of the Companies in accordance with the terms of this Agreement. The undertaking in
this Section 9.7 shall survive repayment of the Notes, any foreclosure under, or modification, release or discharge of, any or
all of the Collateral Documents, termination of this Agreement and the resignation or replacement of Agent.

9.8             
Agent Individually.

Debtco and its Affiliates
may make loans to, acquire equity interests in and generally engage in any kind of lending, financial advisory, underwriting or other
business with any Note Party and any Affiliate of any Note Party as though Debtco were not Agent hereunder and without notice to or consent
of any Purchaser. Each Purchaser acknowledges that, pursuant to such activities, Debtco or its Affiliates may receive information regarding
Note Parties or their Affiliates (including information that may be subject to confidentiality obligations in favor of any such Note Party
or such Affiliate) and acknowledge that Agent shall be under no obligation to provide such information to them. With respect to their
Notes (if any), Debtco and its Affiliates shall have the same rights and powers under this Agreement as any other Purchaser and may exercise
the same as though Debtco were not Agent, and the terms “Purchaser” and “Purchasers” include Debtco and its Affiliates,
to the extent applicable, in their individual capacities. Purchasers hereby acknowledge that Debtco and/or its Affiliates are or may become,
as applicable, the majority equity holder of the Note Parties or any Note Party individually, and that as such, Debtco and its Affiliates
may make decisions in its or their capacity as the majority equity holder which may not be in the Purchasers’ or any Purchaser’s
best interests.

9.9             
Successor Agent.

Agent may resign as Agent
at any time upon thirty (30) days’ prior notice to Purchasers. If Agent resigns under this Agreement, Required Purchasers shall,
with (so long as no Event of Default exists) the consent of the Companies (which shall not be unreasonably withheld or delayed), appoint
from among Purchasers a successor agent for Purchasers. If no successor agent is appointed prior to the effective date of the resignation
of Agent, Agent may appoint, on behalf after consulting with Purchasers and (so long as no Event of Default exists) the Companies, a successor
agent from among Purchasers. Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to
all the rights, powers and duties of the retiring Agent and the term “Agent” shall mean such successor agent, and the retiring
Agent’s appointment, powers and duties as Agent shall be terminated. After any retiring

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Agent’s resignation hereunder as Agent,
the provisions of this Section 9 and Section 11 shall continue to inure to its benefit as to any actions taken or omitted
to be taken by it while it was Agent under this Agreement. If no successor agent has accepted appointment as Agent by the date which is
30 days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon
become effective and Purchasers shall perform all of the duties of Agent hereunder until such time, if any, as Required Purchasers appoint
a successor agent as provided for above.

9.10         
[Reserved].

9.11         
Subordinated Debt.

Each Purchaser hereby irrevocably
appoints, designates and authorizes Agent to enter into any subordination or intercreditor agreement pertaining to any Subordinated Debt,
on its behalf and to take such action on its behalf under the provisions of any such agreement (subject to the last sentence of this Section
9.11). Each Purchaser further agrees to be bound by the terms and conditions of any such subordination or intercreditor agreement
pertaining to any Subordinated Debt. Each Purchaser hereby authorizes Agent to issue blockage notices in connection with any Subordinated
Debt at the direction of Required Purchasers.

		Section	10             
Miscellaneous.

10.1         
Waiver; Amendments.

(a)              
No amendment, modification or waiver of, or consent with respect to, any provision of this Agreement or any of the other Investment
Documents (or subordination and intercreditor provisions relating to any Subordinated Debt) shall in any event be effective unless the
same shall be in writing and signed by the Note Parties and by the Required Purchasers, and then any such amendment, modification, waiver
or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however,
that no such amendment, modification, waiver or consent shall, unless in writing and signed by (i) all of the Purchasers, (A) extend the
date scheduled for payment of any principal of or interest on the Notes or any fees or other amounts payable hereunder or under the other
Investment Documents, unless such extension is made ratably to all of the Notes or other such payment obligations hereunder, (B) reduce
the rate of interest applicable to any Note (provided, that Required Purchasers may rescind an imposition of default interest pursuant
to Section 2.1.4), unless such reduction is made ratably to all of the Notes, (C) change the definition of Required Purchasers,
(D) amend Section 2.4.4 or any other provision of this Agreement providing for the ratable application of payments among the Purchasers,
(E) change any provision of this Section 10.1, or (F) adversely affect the interests of any Purchaser in a disproportionate or
unequal manner as compared to any other Purchaser, or (ii) each of the Purchasers directly affected thereby, (A) waive or reduce the principal
amount of any Note or (B) increase the commitment of a Purchaser to purchase Notes hereunder (provided, that only the Purchasers participating
in any such increase in the principal amount of the Notes shall be considered directly affected by such increase).

(b)              
No amendment, modification, waiver or consent shall, unless in writing and signed by Agent, in addition to the Note Parties and
Required Purchasers (or all of

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the Purchasers, as the case may be, in accordance
with Section 10.1(a) above), affect the rights, privileges, duties or obligations of Agent (including without limitation under
the provisions of Section 9) under this Agreement or any other Investment Document.

(c)              
No delay on the part of Agent or any Purchaser in the exercise of any right, power or remedy shall operate as a waiver thereof,
nor shall any single or partial exercise by any of them of any right, power or remedy preclude other or further exercise thereof, or the
exercise of any other right, power or remedy.

10.2         
Notices.

All notices hereunder shall be in writing (including
facsimile transmission and email) and shall be sent to the applicable party at its address shown on Annex II or at such other address
as such party may, by written notice received by the other parties, have designated as its address for such purpose. Notices sent by facsimile
transmission and email shall be deemed to have been given when sent; notices sent by mail shall be deemed to have been given three (3)
Business Days after the date when sent by registered or certified mail, postage prepaid; and notices sent by hand delivery or overnight
courier service shall be deemed to have been given when received. The Note Parties and Purchasers each hereby acknowledge that, from time
to time, Agent may deliver information and notices to Purchasers using the internet service “Intralinks” or electronic mail.
Each of the Note Parties and each Purchaser hereby agree that Agent may, in its discretion, utilize Intralinks or electronic mail for
such purpose.

10.3         
Computations.

Unless otherwise specifically provided herein,
any accounting term used in this Agreement shall have the meaning customarily given such term in accordance with GAAP, and all financial
computations (including with respect to the character or amount of any asset or liability or item of income or expense, or any consolidation
or other accounting computation) hereunder shall be computed in accordance with GAAP consistently applied. Notwithstanding any other provision
contained herein, (i) all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and
ratios referred to herein shall be made, without giving effect to any election under Statement of Financial Accounting Standards 159 (Codification
of Accounting Standards 825-10) to value any Debt or other liabilities of any Note Party or any Subsidiary at “fair value”,
as defined therein, (ii) to the extent that any change in GAAP after the Closing Date results in leases which are, or would have been,
classified as operating leases under GAAP as it exists on the Closing Date being classified as a capital lease under as revised GAAP,
such change in classification of leases from operating leases to capital leases shall be ignored for purposes of this Agreement and (iii)
for purposes of expenses, Debt, Taxes and Capital Expenditures incurred or made by Parent (excluding expenses or Capital Expenditures
of Parent actually paid with the proceeds of an equity issuance by Parent not prohibited hereunder) shall be deemed to be expenses, indebtedness,
taxes or capital expenditures, as applicable, of the Companies.

10.4         
[Reserved].

10.5         
[Reserved].

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10.6         
 Marshaling; Payments Set Aside.

Neither Agent nor any Purchaser
shall be under any obligation to marshal any assets in favor of the Note Parties or any other Person or against or in payment of any or
all of the Obligations. To the extent that the Note Parties make a payment or payments to Agent or any Purchaser, or Agent or any Purchaser
enforces its Liens or exercises its rights of set-off, and such payment or payments or the proceeds of such enforcement or set-off or
any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to
any settlement entered into by Agent or any Purchaser in its discretion) to be repaid to a trustee, receiver or any other party in connection
with any bankruptcy, insolvency or similar proceeding, or otherwise, then (a) to the extent of such recovery, the obligation hereunder
or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not
been made or such enforcement or setoff had not occurred and (b) each Purchaser severally agrees to pay to Agent upon demand its ratable
share of the total amount so recovered from or repaid by Agent to the extent paid to such Purchaser.

10.7         
Nonliability of Purchasers.

The relationship between
the Companies on the one hand and Purchasers and Agent on the other hand shall be solely that of borrower and lenders. Neither Agent nor
any Purchaser shall have any fiduciary responsibility to the Companies. Neither Agent nor any Purchaser undertakes any responsibility
to the Companies to review or inform the Companies of any matter in connection with any phase of the Companies’ business or operations.
No party to this Agreement or any Note Document, or any of their respective affiliates, agents, officers, owners, investors, partners,
directors, officers or employees shall have any liability with respect to, and each the parties hereto hereby waive, release and agree
not to sue for, any special, indirect, punitive or consequential damages or liabilities.

10.8         
Assignments; Participations.

		10.8.1	Assignments.

(a)              
Any Purchaser may at any time assign to one or more Persons (any such Person, an “Assignee”) all or any portion
of such Purchaser’s Notes, with the prior written consent of Agent (which consent may be given or withheld in Agent’s sole
discretion) and, so long as no Event of Default exists, Company Representative (which consent shall not be unreasonably withheld or delayed)
and which consents shall not be required (i) from Company Representative for an assignment by a Purchaser to another Purchaser or an Affiliate
of a Purchaser or an Approved Fund of a Purchaser or (ii) from Agent for an assignment by a Purchaser to an Affiliate of a Purchaser or
an Approved Fund of a Purchaser). It is understood and agreed that it shall not be considered unreasonable for the Companies to withhold
consent to an assignment to any Person that has been identified by Company Representative or Sponsor as an operating company directly
and primarily engaged in substantially similar business operations as the Note Parties and their Subsidiaries (it being further agreed
that such operating company competitors shall not include any institutional lender that is primarily engaged in making, purchasing, holding
or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of business). Except as Agent may otherwise
agree, any such assignment (other than any assignment by a Purchaser to a Purchaser or an Affiliate or Approved Fund of a

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Purchaser) shall be in a minimum aggregate
amount equal to $1,000,000 or, if less, the principal amount of the Notes being assigned. The Companies and Agent shall be entitled to
continue to deal solely and directly with such Purchaser in connection with the interests so assigned to an Assignee until Agent shall
have received and accepted an effective Assignment Agreement executed, delivered and fully completed by the applicable parties thereto
and a processing fee of $3,500 to be paid by the Purchaser to whom such interest is assigned; provided, that no such fee shall
be payable in connection with any assignment by a Purchaser to a Purchaser or an Affiliate or Approved Fund of a Purchaser. Any attempted
assignment not made in accordance with this Section 10.8.1 shall be null and void. Company Representative shall be deemed to have
granted its consent to any assignment requiring its consent hereunder unless Company Representative has expressly objected to such assignment
within three (3) Business Days after notice thereof.

(b)              
From and after the date on which the conditions described above have been met, (i) such Assignee shall be deemed automatically
to have become a party hereto and, to the extent that rights and obligations hereunder have been assigned to such Assignee pursuant to
such Assignment Agreement, shall have the rights and obligations of a Purchaser hereunder and (ii) the assigning Purchaser, to the extent
that rights and obligations hereunder have been assigned by it pursuant to such Assignment Agreement, shall be released from its rights
(other than its indemnification rights) and obligations hereunder. Upon the request of the Assignee (and, as applicable, the assigning
Purchaser) pursuant to an effective Assignment Agreement, the Companies shall execute and deliver to Agent for delivery to the Assignee
(and, as applicable, the assigning Purchaser) a Note in the principal amount of the Assignee’s pro rata share of such Notes. Each
such Note shall be dated the effective date of such assignment. Upon receipt by the assigning Purchaser of such Note, the assigning Purchaser
shall return to the Companies any prior Note held by it.

(c)              
Agent, acting solely for this purpose as an agent of the Companies, shall maintain at one of its offices in the United States a
copy of each Assignment Agreement delivered to it and a register for the recordation of the names and addresses of each Purchaser, and
principal amount (and stated interest) of the Notes owing to, such Purchaser pursuant to the terms hereof. The entries in such register
shall be conclusive, and the Companies, Agent and Purchasers may treat each Person whose name is recorded therein pursuant to the terms
hereof as a Purchaser hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. Such register shall be available
for inspection by the Companies and any Purchaser, at any reasonable time upon reasonable prior notice to Agent.

		10.8.2	Participations.

Any Purchaser may at any
time sell to one or more Persons (other than, provided that no Event of Default has occurred and is continuing, any Person that has been
identified in writing to the Agent and the Purchasers at least two (2) Business Days prior to such sale (and which such writing, for purposes
of clarification, shall not apply retroactively to disqualify any Persons that have previously acquired a participation interest) by Company
Representative or Sponsor as an operating company directly and primarily engaged in substantially similar business operations as the Note
Parties and their Subsidiaries (it being further agreed that such operating company competitors shall not include any institutional lender
that is primarily engaged in making, purchasing, holding or otherwise investing in commercial

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loans and similar extensions of credit in the
ordinary course of business) participating interests in its Notes (any such Person, a “Participant”). In the event
of a sale by a Purchaser of a participating interest to a Participant, (a) such Purchaser’s obligations hereunder shall remain unchanged
for all purposes, (b) the Companies and Agent shall continue to deal solely and directly with such Purchaser in connection with such Purchaser’s
rights and obligations hereunder and (c) all amounts payable by the Companies shall be determined as if such Purchaser had not sold such
participation and shall be paid directly to such Purchaser. Unless otherwise expressly provided under a participation agreement between
such Purchaser and a Participant, no Participant shall have any direct or indirect voting rights hereunder. The Companies also agree that,
if a Participant complies with Section 3 hereof as if it were a Purchaser, then such Participant shall be entitled to the benefits
of Section 3 as if it were a Purchaser (provided that no Participant shall receive any greater compensation pursuant to Section
3 than would have been paid to the participating Purchaser if no participation had been sold). Each Purchaser that sells a participation,
acting solely for this purpose as a non-fiduciary agent of the Companies, shall maintain a register on which it enters the name and address
of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Notes under this Agreement
(the “Participant Register”); provided that no Purchaser shall have any obligation to disclose all or any portion
of the Participant Register to any Person except to the extent that such disclosure is necessary to establish that any obligations under
this Agreement are in registered form under Section 5f.103-1(c) of the Treasury Regulations. The entries in the Participant Register shall
be conclusive, and such Purchaser, each Note Party and Agent shall treat each person whose name is recorded in the Participant Register
pursuant to the terms hereof as the owner of such participation for all purposes of this Agreement, notwithstanding notice to the contrary.

		10.9	Confidentiality.

Agent and each Purchaser
agree to use commercially reasonable efforts (equivalent to the efforts Agent or such Purchaser applies to maintain the confidentiality
of its own confidential information) to maintain as confidential all non-public information (and excluding information independently developed
by Agent or Purchasers or in the possession of Agent or Purchasers prior to disclosure thereof by the Note Parties) provided to them by
or on behalf of any Note Party, except that Agent and each Purchaser may disclose such information (a) to Persons employed or engaged
by Agent or such Purchaser or any of their Affiliates (including collateral managers of Purchasers) in evaluating, approving, structuring
or administering the Notes; (b) to any assignee or participant or potential assignee or participant that has agreed to comply with the
covenant contained in this Section 10.9 (and any such assignee or participant or potential assignee or participant may disclose
such information to Persons employed or engaged by them as described in clause (a) above); (c) as required or requested by any federal
or state regulatory authority or examiner, or any insurance industry association; (d) as reasonably believed by Agent or such Purchaser
to be compelled by any court decree, subpoena or legal or administrative order or process; provided that Agent or such Purchaser,
as applicable, shall, except to the extent prohibited by applicable law or such decree, subpoena, order or process, endeavor to provide
prompt written notice to Company Representative of any such disclosure requirement in order to provide the Companies an opportunity to
prevent, dismiss or otherwise limit such disclosure obligation; provided further that such Agent or Purchaser, as applicable, shall
have no liability to any Company, Note Party or any of their Affiliates as a result of the

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failure to supply such notice; (e) as, on the
advice of Agent’s or such Purchaser’s counsel, is required by law; (f) in connection with the exercise of any right or remedy
under the Investment Documents or in connection with any litigation to which Agent or such Purchaser is a party; (g) to any nationally
recognized rating agency or investor of a Purchaser that requires access to information about a Purchaser’s investment portfolio
in connection with ratings issued or investment decisions with respect to such Purchaser; (h) that ceases to be confidential through no
fault of Agent or any Purchaser; (i) to a Person that is an investor or prospective investor in a Securitization that agrees that its
access to information regarding the Companies and the Notes is solely for purposes of evaluating an investment in such Securitization
and who agrees to treat such information as confidential; (j) to a Person that is a lender (or agent for such lenders) to a Purchaser
or participant or potential assignee or participant, to the extent the obligations of such Person to such lender(s) are or are to be secured
by the Notes or a participation interest therein, or (k) to a Person that is a trustee, collateral manager, servicer, noteholder or secured
party in a Securitization in connection with the administration, servicing and reporting on the assets serving as collateral for such
Securitization. For purposes of this Section, “Securitization” means a public or private offering by a Purchaser or
any of its Affiliates or their respective successors and assigns, of securities which represent an interest in, or which are collateralized,
in whole or in part, by the Notes. Notwithstanding the foregoing, the Companies consent to the publication by Agent or any Purchaser of
a tombstone or similar advertising material relating to the financing transactions contemplated by this Agreement, and Agent reserves
the right to provide to industry trade organizations information necessary and customary for inclusion in league table measurements.

		10.10	Captions.

Captions used in this Agreement are for convenience
only and shall not affect the construction of this Agreement.

		10.11	Nature of Remedies.

All Obligations of the
Companies and rights of Agent and Purchasers expressed herein or in any other Investment Document shall be in addition to and not in limitation
of those provided by applicable law. No failure to exercise and no delay in exercising, on the part of Agent or any Purchaser, any right,
remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

		10.12	Counterparts.

This Agreement may be
executed in any number of counterparts and by the different parties hereto on separate counterparts and each such counterpart shall be
deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement. Receipt by telecopy of any
executed signature page to this Agreement or any other Investment Document shall constitute effective delivery of such signature page.
This Agreement and the other Investment Documents to the extent signed and delivered by means of a facsimile machine or other electronic
transmission (including “pdf”), shall be treated in all manner and respects and for all purposes as an original agreement
or amendment and shall be considered to have the same

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binding legal effect as if it were the original
signed version thereof delivered in person. No party hereto or to any such other Investment Document shall raise the use of a facsimile
machine or other electronic transmission to deliver a signature or the fact that any signature or agreement or amendment was transmitted
or communicated through the use of a facsimile machine or other electronic transmission as a defense to the formation or enforceability
of a contract and each such party forever waives any such defense.

		10.13	Severability.

The illegality or unenforceability
of any provision of this Agreement or any instrument or agreement required hereunder shall not in any way affect or impair the legality
or enforceability of the remaining provisions of this Agreement or any instrument or agreement required hereunder.

		10.14	Entire Agreement.

This Agreement, together
with the other Investment Documents, embodies the entire agreement and understanding among the parties hereto and supersedes all prior
or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof and thereof
and any prior arrangements made with respect to the payment by the Companies of (or any indemnification for) any fees, costs or expenses
payable to or incurred (or to be incurred) by or on behalf of Agent or Purchasers.

		10.15	Successors; Assigns.

This Agreement shall be
binding upon the Companies, Purchasers and Agent and their respective successors and assigns, and shall inure to the benefit of the Companies,
Purchasers and Agent and the successors and assigns of Purchasers and Agent. No other Person shall be a direct or indirect legal beneficiary
of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any of the other Investment Documents.
The Companies may not assign or transfer any of its rights or Obligations under this Agreement without the prior written consent of Agent
and each Purchaser.

		10.16	Governing Law.

THIS AGREEMENT AND EACH
NOTE SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE.

		10.17	Forum Selection; Consent to Jurisdiction.

ANY LITIGATION BASED HEREON,
OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER INVESTMENT DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY
IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT
ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION
WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH COMPANY,

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AGENT, AGENT AND EACH PURCHASER HEREBY EXPRESSLY
AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH COMPANY, AGENT, AGENT AND EACH PURCHASER FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE
OF NEW YORK. EACH COMPANY, AGENT, AGENT AND EACH PURCHASER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED
TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

		10.18	Waiver of Jury Trial.

BECAUSE DISPUTES ARISING
IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE
PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED
BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION,
AND UNDERSTANDING THEY ARE WAIVING A CONSTITUTIONAL RIGHT, EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY,
WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT
OR OTHER PROCEEDING BASED UPON, ARISING OUT OF OR IN ANY WAY RELATING TO (A) THIS AGREEMENT, THE NOTES, THE COLLATERAL DOCUMENTS OR ANY
OTHER INVESTMENT DOCUMENT, INCLUDING ANY PRESENT OR FUTURE AMENDMENT THEREOF, OR ANY OF THE TRANSACTIONS CONTEMPLATED BY OR RELATED TO
THIS AGREEMENT OR ANY OTHER INVESTMENT DOCUMENT, OR (B) ANY CONDUCT, ACT OR OMISSION OF THE PARTIES OR THEIR AFFILIATES (OR ANY OF THEM)
WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INVESTMENT DOCUMENT, INCLUDING ANY PRESENT OR FUTURE AMENDMENT THEREOF, WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE, REGARDLESS OF WHICH PARTY INITIATES SUCH ACTION, SUIT OR OTHER PROCEEDING; AND EACH PARTY HEREBY AGREES AND
CONSENTS THAT ANY SUCH ACTION, SUIT OR OTHER PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY MAY FILE
AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE WAIVER OF ANY
RIGHT THEY MIGHT OTHERWISE HAVE TO TRIAL BY JURY.

		10.19	Patriot Act.

Each Purchaser that is
subject to the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”),
and Agent (for itself and not on behalf of any

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Purchaser), hereby notifies each Note Party
that, pursuant to the requirements of the Patriot Act, such Purchaser and Agent are required to obtain, verify and record information
that identifies each Note Party, which information includes the name and address of each Note Party and other information that will allow
such Purchaser or Agent, as applicable, to identify each Note Party in accordance with the Patriot Act.

		10.20	Representations and Warranties of Purchasers: Purchase for Investment.

		10.20.1	Organization. Each Purchaser is a limited liability company, limited partnership or corporation,
as the case may be, formed and validly existing under the laws of its state of incorporation, and has all requisite power and authority
to enter into this Agreement and each Investment Document to which it is a party and to consummate the transactions contemplated hereby
and thereby.

		10.20.2	Authorization. The execution, delivery and performance by each Purchaser of this Agreement and
of each of the other Investment Documents to which such Purchaser is a party, and the consummation of the transactions contemplated hereby
and thereby, have been duly authorized by all necessary action taken on the part of such Purchaser and its partners, members, directors
or shareholders, as applicable.

		10.20.3	Due Execution and Delivery; Binding Obligations. This Agreement has been duly executed and delivered
by each Purchaser. This Agreement is, and at the time of the Closing each of the other Investment Documents to which such Purchaser is
a party will be, legal, valid and binding obligations of such Purchaser, enforceable against such Purchaser in accordance with its terms,
except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or conveyance or similar
laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability, and except as rights
of indemnity or contribution may be limited by federal or state securities laws or the public policy underlying such laws.

		10.20.4	No Violation. The execution, delivery and performance by each Purchaser of this Agreement and each
of the other Investment Documents to which such Purchaser is a party, and the consummation of the transactions contemplated hereby and
thereby, do not violate and will not cause a default under (a) the organizational documents of such Purchaser as in effect on the date
hereof, (b) any material applicable laws of any Governmental Authority or (c) any material indenture, mortgage, lease, agreement or instrument
to which such Purchaser is a party.

		10.20.5	Governmental and Other Third Party Consents. Except for consents that
                                                                   have already been obtained or made, no Purchaser is required to obtain any material consent from, and is not required to make any
                                                                   declaration or filing with, any Governmental Authority or any other Person in connection with the execution, delivery and
                                                                   performance of this Agreement or any other Investment Document. Each of the consents
which have been obtained or made by each Purchaser in connection with the execution, delivery and performance of this Agreement or any
other Investment Document is in full force and effect.

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		10.20.6	Investment Intent. Each Purchaser is acquiring the applicable Notes for its own account, for investment
purposes, and not with a view to or for sale in connection with any distribution thereof in violation of applicable federal or state securities
laws. Each Purchaser understands that the Notes have not been registered under the Securities Act or registered or qualified under any
state securities laws in reliance upon specific exemptions therefrom, which exemptions may depend upon, among other things, the bona fide
nature of each Purchaser’s investment intent as expressed herein. Therefore, each Note is a “restricted security” which
cannot be sold without registration under the Securities Act or pursuant to an exemption therefrom and may have to be held indefinitely.
Each Purchaser accepts the risk of such restrictions on resale.

		10.20.7	Accredited Investor Status. Each Purchaser is an “accredited investor” (as such term
is defined in Rule 501(a) of Regulation D promulgated under the Securities Act). By reason of its own business and financial experience,
each Purchaser has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the
merits and risks of the investment in any of the Notes, has the capacity to protect its own interests in connection with the purchase
of any of the Notes contemplated hereby and is able to bear the economic risk of such investment.

		Section	11             
Indemnification.

11.1         
Indemnification.

The Note Parties shall
indemnify, defend and save and hold harmless CNL, CNL Strategic Capital Management, LLC, LLCP, Agent, each Purchaser and each of their
respective successors and assigns, Affiliates, employees, partners (both limited and general), members, shareholders, managers, officers,
directors, representatives, agents, attorneys, successors, permitted assigns and participants (the “Indemnified Parties”),
from and against, any and all actions, causes of action, suits, losses, liabilities, damages and reasonable and documented out-of-pocket
expenses, including Legal Costs (collectively, the “Losses”) incurred by or asserted or awarded against the Indemnified
Parties in connection with, by reason of, or arising from:

(a)              
the negotiation, preparation, execution, performance or enforcement of this Agreement or any other Investment Document;

(b)              
any matter relating to the financing transactions contemplated by this Agreement or any other Investment Document;

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(c)              
 any breach of any warranty or the inaccuracy of any representation made or deemed made by any Note Party or any representative
thereof in this Agreement or any other Investment Document (or any other document or instrument executed herewith or pursuant hereto);

(d)              
the failure by any Note Party to fulfill any of its covenants, agreements or undertakings under this Agreement or any other Investment
Document (or any other document or instrument executed herewith or pursuant hereto);

(e)              
any third party actions, suits, legal Proceedings or claims brought against any Indemnified Party in connection with, arising out
of or with respect to (A) any other matters arising out of or in connection with the transactions contemplated by this Agreement, the
Notes or any other Investment Document or (B) the business, operations or affairs of the Note Parties (including any litigation in which
any Note Party (or any Affiliate, officer, director or employee thereof) is involved);

(f)               
any fee or commission payable or otherwise owing to any investment banker, broker, finder, placement agent or similar intermediary
claiming to have been retained or employed by or on behalf of any Note Party;

(g)              
any action arising out of advisory or management services provided to any Note Party by Sponsor, LLCP or any of their respective
Affiliates; or

(h)              
any merger or consolidation (or any aspect thereof), including with respect to any document related thereto and any breach of any
provisions of any such document and any breach of any warranty or the inaccuracy of any representation made by any Person in any such
document.

(i)                
Notwithstanding the foregoing, this Section 11.1 shall not be deemed to require the Note Parties to indemnify any of the
Indemnified Parties for Losses resulting from Agent’s or Purchasers’ gross negligence, bad faith or willful misconduct or
material breach of this Agreement or another Investment Document, in each case as finally determined by a court of competent jurisdiction.
If and to the extent that the foregoing undertaking may be unenforceable for any reason, the Note Parties hereby agree to make the maximum
contribution to the payment and satisfaction of each of the Losses which is permissible under applicable law.

(j)                
Without limiting the foregoing Section 11.1, the Note Parties shall indemnify, defend and save and hold harmless the Indemnified
Parties against any and all Environmental Claims asserted against any Indemnified Party in connection with, arising out of or with respect
to (i) the use, handling, release, emission, discharge, transportation, storage, treatment or disposal of any Hazardous Substance at any
property owned or leased by a Note Party, (ii) the investigation, cleanup or remediation of offsite locations at which any Note Party
or their respective predecessors are alleged to have directly or indirectly disposed of Hazardous Substances, (iii) any actual or alleged
violations of Environmental Laws by any Note Party or any of its Subsidiaries, or any predecessor in interest, (iv) any Environmental
Claim in any way relating to any Note Party or any of its Subsidiaries, or any predecessor in interest, and (v) any

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Environmental lien against any real property
or any other property presently or formerly owned or operated by any Note Party or any of its Subsidiaries or any predecessor in interest.
Notwithstanding the foregoing, this Section 11.1 shall not be deemed to require the Companies to indemnify any Indemnified Party
for Losses resulting directly and solely from Agent’s or Purchasers’ own gross negligence, bad faith or willful misconduct
or material breach of this Agreement or another Investment Document, in each case as finally determined by a court of competent jurisdiction.

(k)              
The Note Parties shall either pay directly all Losses which they are required to pay hereunder or reimburse any Indemnified Party
within ten (10) days after any written request for such payment. The liability of the Companies to such Indemnified Parties hereunder
shall not be extinguished solely because any Indemnified Party is not entitled to indemnity hereunder.

(l)                
The obligations of the Note Parties to the Indemnified Parties under this Section 11 shall survive (i) the repayment of
the Obligations (whether at maturity, by prepayment or acceleration or otherwise), (ii) any transfer of any Obligation or any interest
therein, and (iii) the termination of this Agreement or any other Investment Document.

		11.2	Indemnification Procedures.

Any Person entitled to
indemnification under this Section 11 shall (a) give prompt written notice to Company Representative of any claim with respect
to which it is entitled to seek indemnification and (b) permit the Note Parties to assume the defense of such claim with counsel selected
by the Note Parties and reasonably acceptable to such Person; provided, however, that any Person entitled to indemnification
hereunder shall have the right to employ separate counsel and to participate in the defense of such claim and the fees and expenses of
such counsel shall be at the expense of such Person unless (i) the Note Parties shall have agreed to pay such fees or expenses, (ii) the
Note Parties shall have failed to notify such Person in writing within ten (10) days of its receipt of such written notice to Company
Representative that it will assume the defense of such claim and employ counsel reasonably acceptable to such Person, or (iii) in the
good faith judgment of any such Person, based on the advice of counsel, a conflict of interest exists between such Person, on the one
hand, and the Companies or Affiliate thereof, on the other hand, with respect to such claims (in which case, if the Person notifies the
Company Representative in writing that such Person elects to employ separate counsel at the expense of the Note Parties, the Note Parties
shall not have the right to assume the defense of such claim on behalf of such Person). No Note Party nor any Indemnified Party will be
subject to any liability for any settlement made without its consent (but such consent may not be unreasonably withheld). No Indemnified
Party may, without the consent of the Note Parties (which consent will not be unreasonably withheld), consent to the entry of any judgment
or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to the Note
Parties of a release from all liability in respect of such claim or litigation. Further, the Note Parties may not, without the consent
of the applicable Indemnified Parties (which consent will not be unreasonably withheld), consent to the entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
Parties of a release from all liability in respect of such claim or litigation.

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		11.3	Contribution.

If the indemnification
provided for in this Section 11 is unavailable to an Indemnified Party in respect of any Losses, then the Note Parties, in lieu
of indemnifying such 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 Note Parties, on the one hand, and such Indemnified Party, on
the other hand, in connection with the actions, statements or omissions which resulted in such Losses, as well as any other relevant equitable
considerations. The relative fault of the Note Parties, on the one hand, and such Indemnified Party, on the other hand, 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, has been taken by, or relates to information supplied by, either any Note Party
or such Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
any such action, statement or omission. The parties agree that it would not be just and equitable if contribution pursuant to this Section
11.3 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations
referred to above. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall
be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

		11.4	Reimbursement of Deal-Related Costs and Expenses.

Notwithstanding anything
to the contrary contained herein or otherwise, and in addition to all other amounts due or owing to Agent and each Purchaser hereunder,
under any other Investment Document or otherwise, the Note Parties shall be responsible to, and agree to promptly after demand therefor
by Agent and each Purchaser, reimburse Agent and each Purchaser for any and all out-of-pocket fees, costs and expenses of every type and
nature (including all fees and expenses of outside counsel, consultants, accountants, solvency firms and other deal-related costs and
expenses) incurred by or on behalf of Agent and each Purchaser in connection with its due diligence investigation of the Note Parties
and their respective Affiliates, and the transactions contemplated thereby (including, without limitation, all fees, costs and expenses
relating to lien searches, filing fees, due diligence, accounting services, legal services, administration of the credit relationship,
interpretation or enforcement of the Note Parties’ rights under any of the Investment Documents), the preparation, negotiation,
execution, delivery and enforcement of this Agreement, the Notes, and the other Investment Documents and the consummation of the transactions
contemplated hereby. The Note Parties agree to pay to Agent and each Purchaser on the Closing Date for all of such fees, costs and expenses.
At Agent’s and each Purchaser’s request and direction, the Note Parties shall reimburse third party providers directly for
all of such fees, costs and expenses.

		11.5	Costs of Collection.

The Note Parties agree
to pay to Agent and each Purchaser on demand all fees, costs and expenses of every type and nature (including all fees and expenses of
attorneys, accountants and other experts and all due diligence, collateral review, appraisal, search, filing and recording fees and expenses)
which are expended or incurred by or on behalf of Agent and each Purchaser in connection with (a) documented reasonable out-of-pocket
costs associated with (i) any

    	 	 75	 

    	 	 

    

assignment, delegation or participation to or
by any Person by Purchaser of any of Purchaser’s right, title and interest in the Notes and the other Investment Documents and (ii)
the administration of the Investment Documents or the collection and enforcement of the Obligations (including, without limitation, attorneys,
accountants, consultants, and other advisor fees and expenses incurred in connection with the exercise of its rights or remedies under
this Agreement or any other Investment Document), whether or not any action, suit or other Proceeding is commenced, (b) any actions for
declaratory relief in any way related to the Obligations, (c) the protection or preservation of any rights, powers or remedies of Agent
and each Purchaser under this Agreement or any other Investment Document, (d) any actions taken by Agent and each Purchaser in negotiating
any amendment, waiver, consent or release of or under this Agreement, the Notes or any other Investment Document, (e) any actions taken
in reviewing the Note Parties’ financial affairs, which actions shall include (i) inspecting the facilities of any Note Party or
conducting audits or appraisals of the financial condition of any Note Party, (ii) having an accounting or other firm selected by Agent
to review the books and records of any Note Party and perform a thorough and complete examination thereof, (iii) interviewing the Note
Parties’ employees, attorneys, accountants, customers and any other Persons related to the Note Parties which Purchaser reasonably
believes may have relevant information concerning the business, condition (financial or otherwise), results of operations or prospects
of any of the Note Parties, and (iv) undertaking any other action which Agent believes is necessary to assess accurately the financial
condition and prospects of the Note Parties or any operational or regulatory matters relating to the Note Parties, (f) any refinancing,
restructuring (whether in the nature of a “work out” or otherwise), bankruptcy or insolvency proceeding involving any Note
Party or their Affiliates, including any refinancing or restructuring of this Agreement, the Notes or any other Obligations or Investment
Document (including, without limitation, attorneys, accountants, consultants, and other advisor fees and expenses incurred after the occurrence
of an Event of Default or otherwise in connection with a “work out,” a “restructuring,” or an insolvency proceeding
concerning any Note Party or any of its Subsidiaries), (g) any actions taken to verify, maintain, perfect and protect any Lien granted
to Agent, for the benefit of Agent the Secured Parties, (h) any effort by Agent to protect, audit, assemble, complete, collect, sell,
liquidate or otherwise dispose of the Notes or any Collateral, including in connection with any case under any bankruptcy laws, or (i)
having counsel advise Agent and each Purchaser (including Agent) as to its rights and responsibilities, the perfection, protection or
preservation of rights or interests under the Investment Documents, with respect to negotiations with any Note Party or its Affiliates
or with other creditors of any Note Party or with respect to any proceeding under any bankruptcy law. The Note Parties hereby consent
to the taking of the foregoing actions by Agent and each Purchaser without conditions or restrictions.

 

- Remainder of Page Intentionally Left Blank;
Signature Pages Follow –

 

    	 	 76	 

    	 	 

    

The parties hereto have
caused this Note Purchase Agreement to be duly executed and delivered by their duly authorized officers as of the date first set forth
above.

 

NOTE PARTIES AND COMPANY REPRESENTATIVE:

 

DOUGLAS MACHINES BUYER, INC., a Delaware corporation, as
a Company and as Company Representative, in each case immediately prior to the consummation of the Nautilus Acquisition

 

 

By:          /s/
Stephen Hogan           

Name:    Stephen Hogan

Title:       President

 

 

DOUGLAS MACHINES CORP., a Delaware corporation, as a Company
and as Company Representative, in each case immediately following the consummation of the Nautilus Acquisition

 

 

By:      /s/
Paul Claro                    

Name:    Paul Claro

Title:      Chief Executive Officer

 

 

DOUGLAS MACHINES HOLDINGS, LLC, a Delaware limited liability
company, as a Guarantor

 

 

By:          /s/
Stephen Hogan          

Name:     Stephen Hogan

Title:       President

 

 

    	Signature Page to Note Purchase Agreement

                                                                                                                                                                                                  

    	 

    

 

The parties hereto have executed or caused this
Note Purchase Agreement to be duly executed and delivered by their duly authorized officers as of the date first set forth above.

 

 

AGENT AND PURCHASER:

 

DM STRATEGIC CAPITAL DEBTCO, LLC, as Agent and as Purchaser

 

 

By: _/s/ David I. Wolmer          

Name: David I. Wolmer

Title: Authorized Agent

 

 

    	Signature Page to Note Purchase Agreement

                                                                                                                                                                                                  

    	 

    

ANNEX I

Senior Secured Note Amounts and Pro Rata Shares

	Purchaser	
    Senior Secured Note

    Amount
	Pro Rata Share
	DM STRATEGIC CAPITAL DEBTCO, LLC	$15,000,000	100.00%
	TOTAL	$15,000,000	100.00%

 

     

    

    

ANNEX II

Addresses

Companies

 

Address for Notices:

 

Douglas Machines Buyer, Inc.

c/o Levine Leichtman Capital Partners, LLC

345 N. Maple Drive, Suite 300

Beverly Hills, CA 90210

Attention: David Wolmer

Telephone: (310) 275-5335

Facsimile: (310) 275-1305

 

 

Agent and Purchasers 

 

Address for Notices:

 

DM Strategic Capital DebtCo, LLC

c/o CNL Strategic Capital, LLC

450 S. Orange Avenue, Suite 1400

Orlando, Florida 32801

Attention: Holly Greer and Tammy Tipton

Email: holly.greer@cnl.com

tammy.tipton@cnl.com

 

With a copy, which shall not constitute notice, to:

 

CNL Strategic Capital, LLC

450 S. Orange Avenue, Suite 1400

Orlando, Florida 32801

Attention: Holly Greer and Tammy Tipton

Email: holly.greer@cnl.com

tammy.tipton@cnl.com

 

    	II-1

    	 

    

ANNEX III

Conditions Precedent to Permitted Acquisitions

		(1)	Agent and Purchasers shall receive not less than fifteen (15) Business Days’ prior written notice
of such Acquisition, which notice shall include a reasonably detailed description of the proposed terms of such Acquisition and identify
the anticipated closing date thereof;

		(2)	such Acquisition shall be structured as (a) an asset acquisition by the Companies or a Domestic Subsidiary
of the Companies, (b) a merger of the Target with and into the Companies or a Domestic Subsidiary of the Companies, with the Companies
or such Domestic Subsidiary as the surviving corporation in such merger, or (c) a purchase of no less than one hundred percent (100%)
of the equity interests of the Target by the Companies, which Target shall become a Domestic Subsidiary of the Companies;

		(3)	unless otherwise agreed to by Agent in its reasonable discretion, Agent and Purchasers shall receive,
not less than ten (10) Business Days prior to the consummation of such Acquisition, a due diligence package, reasonably satisfactory to
Agent, which package shall include, without limitation, the following with regard to the Acquisition of the applicable Target:

		(a)	pro forma financial projections (after giving effect to such Acquisition) for the Companies and their
Subsidiaries for the current and next two Fiscal Years;

(b)       appraisals
(if existing);

		(c)	historical financial statements of the applicable Target for the three fiscal years prior to such Acquisition
(or, if such Target has not been in existence for three years, for each year such Target has existed) (if existing);

		(d)	a general description of (i) the applicable Target’s business, (ii) the Target’s competitive
position within such Target’s industry and (iii) material agreements binding upon the applicable Target or any of its personal or
real property and, if requested by Agent, copies of such material agreements;

(e)       pending
material litigation involving the applicable Target;

		(f)	a description of the method of financing the Acquisition, including sources and uses;

		(g)	locations of all material personal and real property of the applicable Target, including the location
of its chief executive office;

(h)       a
description of the applicable Target’s management; and

		(i)	any other testings or material due diligence investigation with respect to such Acquisition reasonably
required by Agent;

		(4)	if requested by Agent, Agent and Purchasers shall receive environmental reports and related information
regarding any property owned by the applicable Target, which shall be in form and substance satisfactory to Agent; provided however that
such

    	III-1

    	 

    

environmental reports shall not be required
to include subsurface investigation or sampling unless reasonably recommended by a Phase I environmental site assessment;

		(5)	such Acquisition shall only involve assets located in the United States and comprising a business, or
those assets of a business, of the type engaged in by the Companies as of the Closing Date, and which business would not subject Agent
or any Purchaser to regulatory or third party approvals in connection with the exercise of its rights and remedies under this Agreement
or any other Investment Documents other than approvals applicable to the exercise of such rights and remedies with respect to the Companies
prior to such Acquisition;

		(6)	Agent and Purchasers shall receive a financial due diligence report from a nationally recognized accounting
firm reasonably acceptable to Agent with respect to any Target whose EBITDA, as of the closing date of such Acquisition and calculated
in a manner reasonably acceptable to Agent, would equal or exceed $500,000;

		(7)	the applicable Target must have had a positive EBITDA (computed in a manner reasonably acceptable to Agent)
on a cumulative basis for the immediately preceding four fiscal quarters;

		(8)	Agent, for the benefit of Agent and the Secured Parties, (a) is granted a first priority perfected Lien
(subject only to Permitted Liens) on all real and personal property (to the extent required by Section 6.8) being acquired pursuant
to such Acquisition (and, in the case of an Acquisition involving the purchase of any applicable Target’s equity interests, all
of such purchased equity interests shall be pledged to Agent for the benefit of Agent and the Secured Parties, and such Target shall guarantee
the Obligations and grant to Agent, for the benefit of Agent and the Secured Parties, a first priority perfected Lien (subject only to
Permitted Liens) on such Person’s assets) and (b) will be provided such other documents, instruments and legal opinions as Agent
shall request in connection therewith, all such documents, instruments and opinions to be delivered no later than five (5) days after
the closing of such Acquisition and shall each be in form and substance satisfactory to Agent;

		(9)	the aggregate consideration paid in connection with the Acquisition shall not exceed $10,000,000 and the
aggregate consideration paid in connection with all Acquisitions shall not exceed $25,000,000 (for purposes hereof, consideration shall
include all amounts paid or payable in connection with an Acquisition (including all transaction costs and all Debt, liabilities and Contingent
Obligations incurred or assumed in connection therewith, including the maximum amount payable under any earn-out obligations));

		(10)	all material consents necessary for such Acquisition (including such consents as Agent deems reasonably
necessary) have been acquired and such Acquisition is consummated in accordance with the applicable acquisition documents and applicable
law;

		(11)	the Companies’ computation of pro forma EBITDA shall be reasonably acceptable to Agent; and

		(12)	as soon as practicable after the closing of such Acquisition, and in any event within twenty (20) Business
Days after such closing, the Companies shall deliver copies of all documents executed in connection with such Acquisition to Agent and
Purchasers.

    	III-2

    	 

    

Exhibit A

Form of Assignment Agreement

This Assignment Agreement (this “Assignment
Agreement”) is entered into as of ________ __, 20__ by and between the Assignor named on the signature page hereto (“Assignor”)
and the Assignee named on the signature page hereto (“Assignee”). Reference is made to the Note Purchase Agreement
dated as of October 7, 2021 (as amended, restated or otherwise modified from time to time, the “Note Purchase Agreement”)
among DOUGLAS MACHINES BUYER, INC., a Delaware corporation, and immediately following the consummation of the Nautilus Acquisition (as
defined in the Note Purchase Agreement), DOUGLAS MACHINES CORP., a Delaware corporation, DOUGLAS MACHINES HOLDINGS, LLC, a Delaware limited
liability company, the Persons party thereto identified as Purchasers from time to time, and DM STRATEGIC CAPITAL DEBTCO, LLC, a Delaware
limited liability company, as administrative agent (“Agent”). Capitalized terms used herein and not otherwise defined
shall have the meanings assigned to them in the Note Purchase Agreement.

Assignor and Assignee agree as follows:

1.       Assignor
hereby sells and assigns to Assignee, and Assignee hereby purchases and assumes from Assignor the interests set forth on the schedule
attached hereto, in and to Assignor’s rights and obligations under the Note Purchase Agreement and the other Investment Documents
as of the Effective Date (as defined below). Such purchase and sale is made without recourse, representation or warranty except as expressly
set forth herein.

2.       Assignor
(i) represents that as of the Effective Date, that it is the legal and beneficial owner of the interests assigned hereunder free and clear
of any adverse claim, (ii) makes no other representation or warranty and assumes no responsibility with respect to any statement, warranties
or representations made in or in connection with the Note Purchase Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Note Purchase Agreement, any Investment Documents or any other instrument or document furnished pursuant thereto;
and (iii) makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Note Party
or any other Person or the performance or observance by any Note Party of its Obligations under the Note Purchase Agreement or the Investment
Documents or any other instrument or document furnished pursuant thereto.

3.       Assignee
(i) represents and warrants that it is legally authorized to enter into this Assignment Agreement; (ii) confirms that it has received
a copy of the Note Purchase Agreement, together with copies of the most recent financial statements delivered pursuant thereto and such
other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment
Agreement; (iii) agrees that it will, independently and without reliance upon Agent, Assignor or any other Purchaser and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under the Note Purchase Agreement; (iv) appoints and authorizes Agent to take such action as agent on its behalf and to exercise
such powers under the Note Purchase Agreement as are delegated to Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; (v) agrees that it will perform in accordance with their terms all obligations which by the terms of the Note Purchase
Agreement

    	Exhibit A-1

    	 

    

are required to be performed by it as a Purchaser;
(vi) represents that on the date of this Assignment Agreement it is not presently aware of any facts that would cause it to make a claim
under the Note Purchase Agreement; and (vii) if organized under the laws of a jurisdiction outside the United States, attaches the forms
prescribed by the Internal Revenue Service of the United States, which have been duly executed, certifying as to Assignee’s exemption
from United States withholding taxes with respect to all payments to be made to Assignee under the Agreement or such other documents as
are necessary to indicate that all such payments are subject to such tax at a rate reduced by an applicable tax treaty.

4.       The
effective date for this Assignment Agreement shall be as set forth on the schedule attached hereto (the “Effective Date”).
Following the execution of this Assignment Agreement, it will be delivered to Agent for acceptance and recording by Agent pursuant to
the Note Purchase Agreement.

5.       Upon
such acceptance and recording, from and after the Effective Date, (i) Assignee shall be a party to the Note Purchase Agreement and, to
the extent provided in this Assignment Agreement, have the rights and obligations of a Purchaser thereunder and (ii) Assignor shall, to
the extent provided in this Assignment Agreement, relinquish its rights (other than indemnification rights) and be released from its obligations
under the Note Purchase Agreement.

6.       Upon
such acceptance and recording, from and after the Effective Date, Agent shall make all payments in respect of the interest assigned hereby
(including payments of principal, interest, fees and other amounts) to Assignee. Assignor and Assignee shall make all appropriate adjustments
in payments for periods prior to the Effective Date with respect to the making of this assignment directly between themselves.

7.       THIS
ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

8.       This
Assignment Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts and each
such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Assignment
Agreement. Receipt by telecopy of any executed signature page to this Assignment Agreement shall constitute effective delivery of such
signature page.

    	Exhibit A-2

    	 

    

 

The parties hereto have caused this Assignment Agreement to be executed
and delivered as of the date first written above.

 

	 	ASSIGNOR:
	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	 
	 	ASSIGNEE:
	 	 
	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	 
	 	Consented to:
	 	 
	 	DM STRATEGIC CAPITAL DEBTCO, LLC, as Agent
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	]
	 	 
	 	 
	 	DOUGLAS MACHINES CORP.,
	 	as Company Representative
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

    	Exhibit A-3

    	 

    

 

Schedule
to Assignment Agreement

Assignor:                                                          

 

Assignee:                                                          

 

Effective Date:                                                  

 

Note Purchase Agreement dated as of October
7, 2021 (as amended, restated or otherwise modified from time to time, the “Note Purchase Agreement”) DOUGLAS MACHINES
BUYER, INC., a Delaware corporation, and immediately following the consummation of the Nautilus Acquisition (as defined in the Note Purchase
Agreement), DOUGLAS MACHINES CORP., a Delaware corporation, DOUGLAS MACHINES HOLDINGS, LLC, a Delaware limited liability company, the
Persons party thereto identified as Purchasers from time to time, and DM STRATEGIC CAPITAL DEBTCO, LLC, a Delaware limited liability company,
as administrative agent

 

Interests Assigned:

	Note	Senior Secured Note
	Assignor Amounts	$
	Amounts Assigned	$
	Assignee Amounts (post-assignment)	$

 

 

Assignee Information:

	Address for Notices:	 	Address for Payments:

 

	 	 	 	 	 
	 	 	Bank:	 	 
	Attention:	 	 	ABA #:	 	 
	Telephone:	 	 	Account #:	 	 
	Telecopy:	 	 	Reference:	 	 

 

    	Exhibit A-4

    	 

    

Exhibit B

Form of Senior Secured Note

SENIOR SECURED NOTE

THE SECURITY REPRESENTED HEREBY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAW AND MAY
NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH
ACT AND THE REGISTRATION OR QUALIFICATION REQUIREMENTS OF SUCH STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION FROM SUCH REGISTRATION
AND QUALIFICATION.

 

DOUGLAS MACHINES BUYER, INC.

DOUGLAS MACHINES CORP.

SENIOR SECURED NOTE

$15,000,000October 7, 2021

 

FOR VALUE RECEIVED, the
undersigned, together with each other Person who, with the consent of Agent and Company Representative, joins in the execution of the
Note Purchase Agreement (as defined below) and agrees to be bound as a Company thereby (collectively, the “Companies”)
hereby promise to pay DM STRATEGIC CAPITAL DEBTCO, LLC, a Delaware limited liability company, or any registered assigns (collectively,
the “Holder”), the principal amount of Fifteen Million and 00/100 Dollars ($15,000,000.00), together with all premium,
if any, accrued interest and other amounts owing from time to time hereunder, on the dates set forth in the Note Purchase Agreement (as
defined below).

Each Company further promises
to pay interest on the unpaid principal balance of this Note from the date hereof until the date on which this Note is paid in full in
accordance with the provisions of the Note Purchase Agreement, payable at the rate(s) and at the time(s) set forth in the Note Purchase
Agreement.

This Senior Secured Note
(this “Note”) is a “Senior Secured Note” referred to in, and being issued in connection with the consummation
of the transactions contemplated by, that certain Note Purchase Agreement dated as of October 7, 2021 (as amended, restated, supplemented
or otherwise modified from time to time, the “Note Purchase Agreement”), by and among inter alios, Douglas Machines
Buyer, Inc., a Delaware corporation, and immediately following the consummation of the Nautilus Acquisition, Douglas Machines Corp., a
Delaware corporation, Douglas Machines Holdings, LLC, a Delaware limited liability company, the purchasers (including the Holder) party
thereto from time to time (collectively, the “Purchasers”), and DM STRATEGIC CAPITAL DEBTCO, LLC, as agent for the
Purchasers.

    	Exhibit B-1

    	 

    

Unless otherwise indicated, all capitalized
terms used and not otherwise defined in this Note have the respective meanings ascribed to them in the Note Purchase Agreement.

The Holder is entitled to
all of the rights and benefits of a “Purchaser” under the Note Purchase Agreement, the Collateral Documents and the other
Investment Documents. If an Event of Default shall occur and be continuing, the unpaid principal balance of this Note, together with all
premium, if any, accrued and unpaid interest on and other amounts owing under this Note, and the other Obligations may be declared to
be or shall become, as the case may be, immediately due and payable, upon the terms set forth in the Note Purchase Agreement. The payment
and performance of this Note is secured and guarantied as set forth in the Note Purchase Agreement and the Collateral Documents.

All principal, premium,
interest and other amounts to be paid under this Note shall be made by payment to the Holder on the date when due in lawful money of the
United States of America in immediately available funds pursuant to wire instructions heretofore provided by the Holder to the Company
Representative (or such other place of payment as the Holder may designate in writing) in accordance with the terms of the Note Purchase
Agreement. All such payments shall be made without any deduction whatsoever, including any deduction for set-off, recoupment, counterclaim
or taxes.

Each Company hereby waives
presentment for payment, demand, protest, notice of protest and notice of dishonor, and all other notices of any kind whatsoever to which
such Company may be entitled under applicable law or otherwise, except for notices to which such Company is expressly entitled under this
Note. The failure of the holder hereof to exercise any of its rights hereunder in any particular instance shall not constitute a waiver
of the same or of any other right in that or any subsequent instance.

This Note shall be binding
upon each Company, its successors and permitted assigns, and shall inure to the benefit of the Purchaser, its successors and permitted
assigns.

This Note is a contract
made under and governed by, and shall be construed and enforced in accordance with, the laws of the State of New York, without regard
to conflict of laws principles.

[Signature Page Follows]

 

    	Exhibit B-2

    	 

    

 

IN WITNESS WHEREOF, the
undersigned has caused this Senior Secured Note to be executed and delivered by its duly authorized representative on the date first above
written.

	 	DOUGLAS MACHINES BUYER, INC.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	DOUGLAS MACHINES CORP.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

 

    	Exhibit B-3

    	 

    

Exhibit C

Form of Compliance Certificate

[on Company Representative’s letterhead]

		To:	DM STRATEGIC CAPITAL DEBTCO, LLC, as Agent

c/o CNL Strategic Capital, LLC

450 S. Orange Avenue, Suite 1400

Orlando, Florida 32801

Re:Compliance Certificate dated                   

Ladies and Gentlemen:

Reference is made to that certain Note Purchase
Agreement dated as of October 7, 2021 (as the same may be amended, restated, supplemented or otherwise modified from time to time, including
any replacement agreement therefor, the “Note Purchase Agreement”), by and among DOUGLAS
MACHINES BUYER, INC., a Delaware corporation (“BuyerCo”), and immediately following the consummation of the
Nautilus Acquisition (as defined in the Note Purchase Agreement), DOUGLAS MACHINES CORP.,
a Delaware corporation (“Douglas”), DOUGLAS MACHINES HOLDINGS, LLC, a Delaware limited liability company (“Parent”),
the Persons party thereto identified as Purchasers from time to time, and DM STRATEGIC CAPITAL DEBTCO, LLC, a Delaware limited liability
company, as administrative agent for the Purchasers (in such capacity, “Agent”). Capitalized terms used in this Compliance
Certificate have the meanings set forth in the Note Purchase Agreement unless specifically defined herein.

Pursuant to Section 6.1.6 of the Note
Purchase Agreement, the undersigned Chief Financial Officer or other officer having substantially the same authority and responsibility,
of Company Representative hereby certifies that:

1.       The
financial information of the Companies and their Subsidiaries (including, without limitation, computations used by the Companies and their
Subsidiaries in determining compliance with the covenant set forth in Section 7.14 of the Note Purchase Agreement) furnished in
Schedule 1 attached hereto, has been prepared in accordance with GAAP (except for normal year-end adjustments and the lack of footnotes),
and fairly presents in all material respects the financial condition of the Companies and their Subsidiaries.

2.       Such
officer has reviewed the terms of the Note Purchase Agreement, the other Investment Documents and the financial statements of the Companies
and their Subsidiaries and has made, or caused to be made under his/her supervision, a review in reasonable detail of the financial condition
and results of operations of the Companies and their Subsidiaries during the accounting period covered by the financial statements delivered
pursuant to [Section 6.1.1]1 [Section 6.1.2(i)]2 of the Note Purchase Agreement.

 

 

1 Include for Compliance Certificates
delivered with audited annual financial statements.

2 Include for Compliance Certificates
delivered with quarter-end reporting package.

     

    

    

3.       Such
review has not disclosed the existence on and as of the date hereof, and the undersigned does not have knowledge of the existence as of
the date hereof, of any event or condition that constitutes a Default or Event of Default, except for such conditions or events listed
on Schedule 2 attached hereto, specifying the nature and period of existence thereof and what action the Companies and their Subsidiaries
have taken, are taking, or propose to take with respect thereto.

4.       The
Companies and their Subsidiaries are in compliance with the covenant contained in Section 7.14 of the Note Purchase Agreement as
demonstrated on Schedule 3 hereof.

[Remainder
of page intentionally left blank]

 

     

    

    

IN WITNESS WHEREOF, this Compliance Certificate
is executed by the undersigned this ____ day of ____________.

DOUGLAS MACHINES CORP., as Company Representative

By:                                               

Name:

Title:

     

    

    

 

SCHEDULE 1

Financial Information

 

 

 

 

     

    

    

 

SCHEDULE 2

Default or Event of Default

 

 

 

     

    

    

 

SCHEDULE 3

Financial Covenant

		1.	Maximum Total Leverage Ratio. Total Leverage Ratio of the Companies and their Subsidiaries
for the four consecutive Fiscal Quarter[s] ending _______ __, 20__ is ___:1.0, which [is/is not] greater than or equal to the amount
set forth in Section 7.14(b) of the Note Purchase Agreement for the corresponding period.

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