Document:

Exhibit 10.1

 

 

 

SERVICING AGREEMENT

 

 

among

 

 

W.S. BADCOCK CORPORATION

Servicer

 

and

 

B. RILEY RECEIVABLES, LLC

Company

 

 

 

 

Dated as of December 20, 2021

 

 

 

 

 

     

     

    

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Section 1.	Definitions	1
	Section 2.	Commencement of Servicing; Books and Records	4
	Section 4.	Statements to Company	7
	Section 5.	General Servicing Procedures; Compensation	8
	Section 6.	Indemnification; Third Party Claims	9
	Section 7.	Merger or Consolidation of Servicer	10
	Section 8.	Servicer Not to Resign	11
	Section 9.	Representations and Warranties of Servicer	11
	Section 10.	Additional Covenants of Servicer	13
	Section 11.	Default; Termination	15
	Section 12.	Transition Services	18
	Section 13.	Privacy; Confidentiality	18
	Section 14.	Notices	20
	Section 15.	Miscellaneous	21

 

EXHIBITS

 

	EXHIBIT A	ACCOUNT DOCUMENTS
	EXHIBIT B	RECEIVABLE LEVEL DATA TAPE
	EXHIBIT C	SERVICING MANUAL
	EXHIBIT D	SERVICING RECORDS
	EXHIBIT E	SERVICER ACCOUNT
	EXHIBIT F	COLLECTION ACCOUNT
	EXHIBIT G	CHARGED OFF REPORTING
	EXHIBIT H	INSURANCE REPORTING

 

    	I

     

    

SERVICING AGREEMENT

 

This Servicing
Agreement (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”), dated as
of December 20, 2021 (the “Effective Date”), is by and among B. Riley Receivables, LLC, a Delaware limited liability
company, as owner (“Company”) and W.S. Badcock Corporation, a Florida corporation, as servicer (in such capacity, “Servicer”)
and seller (in such capacity, “Seller”).

 

Recitals

 

WHEREAS, in the regular course of its business,
Servicer services Accounts and Receivables for its own account;

 

WHEREAS, Company intends to purchase certain
Receivables arising under Accounts owned by Seller from Seller from time to time pursuant to the Master Receivables Purchase Agreement
dated as of December 20, 2021 (as amended, restated, supplemented or otherwise modified from time to time, the “Master Receivables
Purchase Agreement”);

 

WHEREAS, Company
desires to retain Servicer to service and administer the Receivables purchased by the Company under the Receivables Purchase Agreements
in connection with the Servicer’s servicing of the related Accounts for Seller’s own account; and

 

WHEREAS, Company
and Servicer desire to set forth the terms and conditions on which Servicer will service and administer the Receivables and related Accounts.

 

NOW THEREFORE,
in consideration of the premises and the mutual agreements hereinafter set forth, the Company and Servicer agree as follows:

 

Section
1.      Definitions. Unless the context shall clearly indicate some other meaning, terms used
in this Agreement shall have the meanings assigned thereto in the recitals above or specified in this Section 1 or, if not defined
in this Section 1, in the Master Receivables Purchase Agreement.

 

For purposes
of this Agreement, the following capitalized terms shall have the respective meanings set forth below.

 

Authorized
Representative: Any Person expressly designated by Company as an Authorized Representative, as set forth from time to time in a certificate
in a form prescribed by Company, and Servicer shall be an Authorized Representative of Company solely for the purposes of the actions
to be taken by Servicer pursuant to Section 3(a).

 

Change in Control
of Servicer: (A) Servicer or any direct or indirect holder of equity interests in Servicer enters into any agreement or agreements
that contemplates (i) the merger or consolidation of Servicer with or into any Person, (ii) the sale, transfer or other disposition of
any material portion of Servicer’s assets or business to any Person (other than the sale of receivables in the normal course of
Servicer’s business) or (iii) Franchise Group, Inc. shall fail to own and control, in the aggregate, more than 51% of the outstanding
equity interests of Servicer, or shall fail to own and control the right to appoint a majority of the Board of Directors of Servicer (or
the equivalent governing body).

 

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Collection
Account: The Company’s bank account as set forth on Exhibit F.

 

Collection
Period: As of the Effective Date, from the first Cutoff Time to and including January 15, 2022, after January 15, 2022, bi-weekly
(from Sunday to the second Saturday) until the end of the Purchase Period, and on the first day after the Purchase Period, from such date
weekly (from Sunday to Saturday) until all Receivables have been paid in full.

 

Confidential
Information: The terms and conditions of this Agreement and any proprietary non-public information of a party hereto that is furnished
to the other party hereto in connection with this Agreement or the transactions contemplated hereby, including but not limited to, records,
documents, proprietary information, technology, software, trade secrets, financial and business information, or data related to such other
party’s products (including the discovery, invention, research, improvement, development, manufacture, or sale thereof), processes,
or general business operations (including sales, costs, profits, pricing methods, organization, employee or customer lists and process),
whether oral, written, or communicated via electronic media or otherwise disclosed or made available to a party or to which a party is
given access pursuant to this Agreement by the other party, and any information obtained through access to any information assets or information
systems (including computers, networks, voice mail, etc.), that, if not otherwise described above, is of such a nature that a reasonable
person would believe to be confidential, as well as any Consumer Information. Information (other than Consumer Information) that is made
available to the general public, received from independent sources, already in possession of the receiving party prior to disclosure hereunder
or that is independently developed without the use of Confidential Information shall not be considered Confidential Information.

 

Consumer Information:
Any “nonpublic personal information” (as such term is defined in the Gramm-Leach-Bliley Act and/or the regulations implementing
the provisions thereof) and other personally identifiable information relating to Buyers or applicants.

 

Customary
Servicing Procedures: Procedures (including collection procedures) that Servicer customarily employs and exercises in servicing and
administering consumer loans for its own account and in accordance with the Servicing Manual, and in compliance with all applicable Laws.

 

GAAP:
Generally accepted accounting principles in the United States of America or International Financial Reporting Standards (IFRS) as in effect
from time to time.

 

Local Account:
An account established by or in the name of Servicer or controlled by Servicer into which Collections from applicable Buyers may be paid.

 

Principal
Prepayment: Any payment or other receipt of the unpaid amount of a Receivable which is received in advance of its scheduled due date
and is not accompanied by an amount of interest representing scheduled interest due on any date or dates in any month or months subsequent
to the month of prepayment.

 

    	3

     

    

Receivable
Level Data Tape: An electronic file containing Buyer information, original Receivable amount, current Unpaid Amount, payment history
and the other fields set forth in Exhibit B with respect to each Receivable from the date hereof.

 

Reporting
and Remittance Date: With respect to any Collection Period, the sixth Business Day after the end of such Collection Period.

 

Scheduled
Payments: With respect to any Receivable, the periodic payments payable under the terms of the related Account Documents (which shall
include all payments of principal, interest, fees and premiums).

 

Servicer Account:
The Servicer’s bank account set forth on Exhibit E.

 

Servicer Event
of Default: Any one of the conditions or circumstances enumerated in Section 11(a).

 

Services:
The services that Servicer has agreed to provide to Company under this Agreement, whether directly or through one or more agents, subcontractors
or service providers.

 

Servicing
Fee: As of any date of determination, an amount equal to 2.0% per annum on the aggregate Unpaid Amount of Receivables (other than
Defaulted Receivables) owned by the Purchaser at the beginning of the each calendar month (to be pro-rated in the first reporting period
for newly purchased Receivables acquired mid-month).

 

Servicing
Manual: Servicer’s servicing policies and procedures applicable to the Receivables in the form attached hereto as Exhibit
C, as amended, modified and/or supplemented from time to time in accordance with the terms of this Agreement.

 

Servicing Records:
With respect to any Receivable, all of the documents and records related to or required for the servicing of such Receivable, including
the items referred to in Exhibit D annexed hereto pertaining to such Receivable.

 

Section 2.     Commencement
of Servicing; Books and Records

 

		(a)	Commencement of Servicing.

 

(i)   
Servicer shall service the Receivables and the related Accounts in accordance with the terms hereof. Upon request, Servicer
shall cooperate and use commercially reasonable efforts to transfer the Electronic Account Documents and any related electronic documents
to the Purchaser or its designee.

 

(ii)   
Servicer’s possession of the Servicing Records retained by Servicer is for the purpose of servicing the related Receivable
and the related Account. The portion of the Servicing Records so retained by Servicer shall be appropriately marked to reflect clearly
Company’s ownership of the related Receivable. Servicer shall release Servicing Records from its custody only in accordance with
written instructions from Company, unless such release is (A) required as incidental to Servicer’s servicing of the Receivables
and related Accounts or (B) otherwise required or permitted pursuant to the terms hereof, including Section 3(b).

 

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		(b)	Books and Records, Receivable Level Data Tape, Servicing Manual.

 

(i)   
All rights arising out of the Receivables, including all funds received on or in connection with a Receivable, except as
otherwise provided herein, shall be held by Servicer in trust for the benefit of Company as the owner of the Receivables. Servicer, on
behalf of Company, shall be responsible for maintaining, and shall maintain, a complete and accurate set of books and records for each
Receivable and related Account, which shall include the related Account Documents and Servicing Records, and shall be clearly marked to
reflect the ownership of each Receivable by Company.

 

(ii)   
Servicer may not make amendments or modifications to the Servicing Manual that could reasonably be expected to have a Material
Adverse Effect on any Receivables at any time during the term hereof without the prior written consent of Company (such consent not to
be unreasonably withheld or delayed). In the event of any amendment or modification of the Servicing Manual, Servicer shall promptly provide
a copy of the amended or modified manual to Company, and the Servicing Manual, as amended or modified, must continue to be in compliance
with Laws.

 

Section 3.     Administration
and Servicing of Receivables and Accounts

 

(a)                               
Servicer to Act as Servicer.

 

(i)   
Servicer shall service and administer the Receivables and related Accounts in accordance with this Agreement and Customary
Servicing Procedures, and shall have full power and authority to do or cause to be done any and all things in connection with such servicing
and administration that Servicer may deem necessary or desirable and in compliance with the terms of this Agreement, the Customary Servicing
Procedures and applicable Laws. Servicer may subcontract with a qualified person to perform all or any portion of the Servicer’s
servicing duties hereunder; provided that (i) the Servicer shall select such person with reasonable care and shall be solely responsible
for the fees and expenses payable to any such subcontractor, (ii) Servicer shall not be relieved of, and shall remain liable for, the
performance of the duties and obligations of the Servicer pursuant to the terms hereof without regard to any subcontracting arrangement
and (iii) any such subcontract shall be terminable with respect to the Receivables and related Accounts upon termination of this Agreement.

 

(ii)   
Servicer may waive, modify or vary the terms of any Receivable and related Account or consent to the postponement of strict
compliance with any such term if in the Servicer’s reasonable and prudent determination such waiver, modification or postponement
is consistent with its Underwriting Guidelines and the Servicing Manual; provided that Servicer shall not (A) forgive any portion
of a scheduled payment under any Receivable or permit any modification with respect to any Receivable that would decrease total Scheduled
Payments due thereunder unless, in each case such modification is made in accordance with the policy and procedures as identified in the
Servicing Manual and the Underwriting Guidelines. For the avoidance of doubt, Servicer may waive any late payment charge or any other
fees that may be collected in the ordinary course of servicing any of the Receivables.

 

(iii)   
Servicer may request from Company any powers of attorney and other documents reasonably necessary to enable Servicer to
carry out their servicing and administrative duties under this Agreement.

 

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(iv)   
Notwithstanding anything to the contrary herein, to the extent there is any conflict between the terms of this Agreement
and Customary Servicing Procedures (including the Servicing Manual), the terms of this Agreement shall control, except to the extent required
to comply with applicable Laws.

 

 (b)                Enforcement and Liquidation; Reporting.

 

(i)   
Servicer shall, consistent with Customary Servicing Procedures, act with respect to the Receivables and related Accounts
in such manner as will maximize the receipt of principal, interest, fees and premiums on the Receivables and related Accounts. Subject
to Section 3(b)(ii) in the event that any Receivable becomes a Defaulted Receivable, Servicer shall take such action, consistent with
Customary Servicing Procedures, as it shall deem to be in the best interest of Company so as to maximize the receipt of principal and
interest on such Defaulted Receivable.

 

(ii)   
Notwithstanding anything to the contrary herein or in the Servicing Manual, Servicer shall not, without the prior written
consent of Company, commence any Proceeding to enforce or collect upon the Receivables, regardless of whether such Proceeding is brought
in its own name, as an agent for Company, or in the name of Company.

 

(c)               
Collection of Receivable Payments. Continuously from the date hereof until the principal, interest, fees and premiums
on all Receivables are paid in full, Servicer will proceed diligently, in accordance with this Agreement and the Servicing Manual, to
collect all payments due under each of the Receivables and related Accounts when the same shall become due and payable.

 

(d)               
Reporting of Collections on Charged Off Receivables. Servicer shall, on the Reporting and Remittance Date immediately
following the 15th day of each calendar month, provide a written report to Company, in reasonable detail, setting forth all
collections and charged off Receivables for the related Collection Period, which shall include the information set forth in Exhibit
G. The parties agree that the form of reporting on charged off Receivables in Exhibit G will be finalized after the Effective Date

 

(e)               
Insurance Reporting: Servicer shall on the Reporting and Remittance Date immediately following the 15th
day of each calendar month, provide a written report to Company, in reasonable detail, which shall include the information set forth in
Exhibit H for all Insurance with respect to the related Collection Period. The parties agree that the form of insurance reporting
in Exhibit H will be finalized after the Effective Date

 

 (f)                Deposits in Collection Account.

 

(i)   
Company has established and shall maintain the Collection Account into which Servicer or Seller, as the case may be, shall
deposit all Collections net of the Servicing Fee and Purchase Price payable to the Seller pursuant to Section 5(a) of the Master Receivables
Purchase Agreement (“Net Collections”) with respect to the Receivables, the applicable details of which are set forth
herein in Exhibit B, provided that all credit card servicing fees and related expenses shall be borne by Servicer. Subject to Section
5(b), all Net Collections received by Servicer with respect to the Receivables for each Collection Period, including, among other things,
Principal Prepayments, Liquidation Proceeds, Insurance Retro Commissions and charged off Receivables, will be transferred to the Collection
Account on or before the related Reporting and Remittance Date (it being understood that Net Collections in respect of Insurance Retro
Commissions and charged off Receivables shall be deposited in the Collection Account no less frequently than monthly). Servicer shall
bear all costs associated with transferring Net Collections into the Collection Account. Only the Company or its designee will have authority
to withdraw or release funds from the Collection Account. Servicer shall not deposit in Collection Account any funds other than Net Collections
received with respect to the Receivables. For the avoidance of doubt, Servicer shall not be liable for any costs associated with opening,
setting-up, maintaining, creating or perfecting a security interest in the Collection Account for the benefit of Company.

 

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(ii)   
Servicer shall identify all funds collected and received pursuant to each Receivable as separate from any of its own general
assets and from any other amount owed in respect of the related Accounts; provided that Company acknowledges and agrees that Servicer
may co-mingle payments received in the account on behalf of itself and purchasers, including Collections; provided further that
the Servicer acknowledges and agrees that it shall hold in trust for the benefit of Company any such payments of Collections it receives
related to the Receivables prior to remittance of such funds to the Collection Account.

 

(iii)   
Servicer will transfer funds from each Local Account related to each applicable Receivable into the Servicer Account within
two (2) Business Days of receipt. Servicer will pay all fees related to the maintenance of the Local Accounts and the Servicer Account.
The Local Accounts and the Servicer Account will not be exclusive to Company (e.g. check payments from all of Servicer’s serviced
accounts are deposited into the comingled Local Accounts and the Servicer Account).

 

Section 4.     Statements to Company

 

(a)   
Remittance Report. On or before each Reporting and Remittance Date, Servicer shall deliver to Company via secure
and mutually acceptable transmission method a remittance report and Receivable Level Data Tape as of the end of the related Collection
Period reflecting all activity with respect to the Receivables during such Collection Period.

 

(b)   
Notice of Claims. Servicer shall give prompt written notice to Company, containing the details thereof, of (1) any
material Claim or Proceeding instituted by or against Servicer or any of its Affiliates related to the Services, or the Receivables in
any federal or state court or before any commission or other Governmental Authority, or any material Claim or Proceeding to Servicer’s
knowledge threatened against Servicer or any of its Affiliates related to the Services or the Receivables; (2) any Claim or Proceeding
pending, or to Servicer’s knowledge, threatened against Servicer before any Governmental Authority that might prohibit or materially
and adversely affect the performance by Servicer of its obligations under, or the validity or enforceability of, this Agreement or materially
and adversely affect the condition (financial or otherwise) or operations of Servicer; (3) any putative class action complaint; (4) to
the extent permitted by Laws and such Governmental Authority, any material investigation by any Governmental Authority involving the Services;
and (5) the occurrence of facts actually known to Servicer that would constitute a Servicer Event of Default under this Agreement, following
the giving of notice and the failure to cure.

 

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Section 5.     General
Servicing Procedures; Compensation

 

(a)   
Servicing Compensation. As compensation for the Services, Servicer shall be entitled to receive the Servicing Fee
on the first Business Day of each calendar month for services rendered during the immediately preceding month, it being understood that
no compensation in addition to the Servicing Fee shall be payable in respect of Defaulted Receivables; provided however, in the
event of termination of this Agreement and upon the receipt by Servicer of a Successor Servicer Commencement Notice, the Servicer shall
not be entitled to any portion of the Servicing Fee that would have been earned after the date occurring after the date of such termination
on which the transfer of the servicing of the Receivables becomes fully effective.

 

(b)   
Invoicing. In the event that a Servicing Fee has not been paid in full when due as set forth in Section 5(a), Servicer
shall invoice Company monthly, but no later than the 5th Business Day of the applicable month, for the amount of the applicable
Servicing Fee which remains unpaid. Such invoice shall include reasonable detail on the amount due, all amounts netted out of Collections
and what such amounts are attributable to, and shall provide to Company such supporting documentation as Company may reasonably request.
To the extent Collections are insufficient to cover the Servicing Fee, Company shall pay the unpaid amount of the Servicing Fee within
thirty (30) days after the date the invoice is received by Company and all further Collections shall be applied to such outstanding amount
until paid in full either by Company or through the application of Collections.

 

(c)   
Termination. If any material portion of the Servicing Fee that is not then being disputed in good faith by Company
remains unpaid for more than ninety (90) days from the date the invoice is received by Company and Servicer has provided Company with
notice of such late payment, Servicer may terminate this Agreement.

 

 (d)    Company’s Right to Examine Servicer Records; Inspections.

 

(i)   
Company and its agents and designees shall have the right, after reasonable notice to Servicer, during normal business hours,
to examine and audit any and all of the books, records, systems or other information of Servicer whether held by Servicer or by another
on behalf of Servicer, which may be relevant to the performance or observance by Servicer of the terms, covenants or conditions of this
Agreement. The cost of such review shall be borne by the Company.

 

(ii)   
Servicer will permit, with reasonable advance notice, any authorized representatives designated by Company or its financing
sources to visit and inspect, without hindrance, any of the properties of Servicer related to the Receivables or to the performance of
this Agreement, to inspect, audit, copy and take extracts from its financial and accounting records, and to discuss its affairs, finances
and accounts with any Person, including, without limitation, employees of Servicer and independent public accountants (and shall instruct
such accountants to communicate directly with Company and its agents and designees), all at such reasonable times during normal business
hours and as often as may reasonably be requested.

 

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(iii)  
At any time during the existence of a Servicer Event of Default and otherwise one (1) time in any calendar quarter, upon
five (5) Business Days’ prior written notice, Servicer will permit any authorized representatives designated by Company to perform
a compliance review (a “Compliance Review”) to examine, audit and verify the compliance by Servicer with this Agreement
and applicable Laws. Servicer shall cooperate with all reasonable requests and provide Company (or its designees) with all necessary assistance
and information in connection with each such Compliance Review. In connection with any such Compliance Review, Servicer will permit any
authorized representatives designated by Company to review Servicer’s forms, books, records, information processes and internal
control environment, records management, performance standards, compliance practices (including consumer compliance practices), policies,
procedures, and practices with respect to the management and oversight of any agent, subcontractor, or service provider Servicer has involved
in the provision of the services hereunder, and procedures and marketing materials. Company or its designees may make written recommendations
regarding Servicer’s compliance with applicable Laws, and Servicer shall consider these recommendations in good faith, consult with
Company regarding the implementation of such recommendations and will use commercially reasonable efforts to implement in all material
respects on a timely basis any recommendation which Company determines, in its reasonable discretion, is a reasonable recommendation.

 

(iv)   
Servicer shall use commercially reasonable efforts to cause any of its agents, contractors, or service providers to allow
Company and its designees access to the premises of such agent, contractor, or service provider for the purpose of auditing its operations
related to the Services upon reasonable prior notice.

 

(v)   
Servicer shall cooperate with any examination that may be required by any Governmental Authority with audit and examination
authority over Company; provided, however, that if such audit is occasioned by anything other than the Servicer’s performance under
this Agreement, the reasonable and documented out-of-pocket costs and expenses of such audit (including without limitation reasonable
attorneys, accountants and other professional fees) shall be reimbursed and paid by Company.

 

Section 6.     Indemnification;
Third Party Claims.

 

(a)   
Servicer Indemnification. Servicer will defend, indemnify and hold Company, its Affiliates and each of their officers,
directors, trustees, employees and agents harmless (to the fullest extent permitted by law) from and against, any and all liabilities,
damages, losses, and expenses (regardless of the capacity in which the indemnified party incurs such liabilities, damages, losses, and
expenses), including, without limitation, reasonable attorneys’ fees and expenses (other than those for a third party claim with
respect to which Servicer has retained counsel and assumed the defense on behalf of Company in accordance with Section 6(d)) reasonable
out-of-pocket costs, interest and penalties arising from (i) any default or failure by Servicer in the performance of its duties as Servicer
under this Agreement; (ii) errors and omissions of the Servicer in the performance of its duties as Servicer under this Agreement; (iii)
any breach of a representation, warranty or covenant by Servicer under this Agreement or any breach by Servicer of its obligations under
this Agreement; and (iv) fraud, willful misconduct, bad faith or gross negligence on the part of Servicer; provided that such indemnity
shall not, as to Company or its Affiliates, or any of their officers, directors, employees and agents, be available to the extent that
such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by a final and non-appealable
judgement to have resulted from the gross negligence or willful misconduct of such Person.

 

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(b)   
Company Indemnification. Company will defend, indemnify and hold Servicer, its Affiliates and each of their officers,
directors, employees and agents harmless from and against any and all liabilities, damages, losses, and expenses (regardless of the capacity
in which the indemnified party incurs such liabilities, damages, losses, and expenses), including, without limitation, reasonable attorneys’
fees and expenses (other than those for a third party claim with respect to which Company has retained counsel and assumed the defense
on behalf of Servicer in accordance with Section 6(d)), reasonable out-of-pocket costs, interest and penalties, arising from (i) any breach
of this Agreement on the part of Company; (ii) all third party claims brought against Servicer or its Affiliates that result from Company’s
performance or failure to perform any of its obligations under this Agreement; and (iii) all third party claims brought against Servicer
or its Affiliates arising out of or relating to the failure of Company and/or any of its Affiliates to comply with all applicable Laws,
in all cases, except to the extent such liabilities, damages, losses and expenses arise from the willful misconduct or gross negligence
of Servicer; provided that such indemnity shall not, as to Servicer or its Affiliates, or any of their officers, directors, employees
and agents, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of
competent jurisdiction by a final and non-appealable judgement to have resulted from the gross negligence or willful misconduct of such
Person.

 

(c)   
Damages Waiver. Notwithstanding anything to the contrary in this Agreement, neither Servicer nor Company shall be
liable to the other (or the other’s Affiliates, officer, directors, employees and agents) under or in connection with this Agreement
for any indirect or consequential or other damages relating to prospective profits, income, anticipated sales or investments, or goodwill,
or for any punitive or exemplary damages, except to the extent such losses or damages (i) are payable to a third party in connection
with a third party claim or (ii) result from willful misconduct, a willful breach of this Agreement, fraud or gross negligence.

 

(d)   
Indemnification Procedure. A party entitled to indemnification shall give prompt written notice to the indemnifying
party of any claim, assertion, event, condition or proceeding by any third party with respect to which it may request indemnification
under this Section 6. The failure to give such notice will not relieve the indemnifying party from liability hereunder unless, and solely
to the extent that, the liabilities, damages, losses or expenses to be indemnified could have been avoided with such prompt notification.
An indemnifying party will have the right, upon written notice to the indemnified party within twenty (20) days after receiving notice
of a third-party claim, to conduct at its own expense the defense against such third-party claim in its own name, or, if necessary, in
the name of the indemnified party. When the indemnifying party assumes the defense, the indemnified party will have no liability for any
compromise or settlement of any third-party claim that is effected without its prior written consent (which consents shall not be unreasonably
withheld or delayed), unless the sole relief provided is monetary damages that are paid in full by the indemnifying party and such compromise
or settlement includes a release of each indemnified party from any liabilities arising out of the third-party claim. If the indemnifying
party delivers a notice electing to conduct the defense of the third-party claim, the indemnified party will, at the indemnifying party’s
expense, cooperate with and make available to the indemnifying party such assistance, personnel, witnesses and materials as the indemnifying
party may reasonably request. If the indemnifying party does not deliver a notice electing to conduct the defense of the third- party
claim, the indemnified party will have the sole right to conduct such defense and the indemnified party may pay, compromise or defend
such third-party claim or proceeding at the indemnifying party’s expense. Regardless of which party defends the third-party claim,
the other party will have the right at its sole expense to participate in the defense assisted by counsel of its own choosing.

 

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(e)   
Survival. Notwithstanding anything else in this Agreement, this Section 6 shall survive the expiration or termination
of this Agreement.

 

Section 7.     Merger
or Consolidation of Servicer.

 

(a)   
Existence. Servicer will keep in full effect its existence, rights and franchises as a limited liability company,
and will obtain and preserve its qualification to do business as a foreign corporation in each jurisdiction in which such qualification
is or shall be necessary to protect the validity and enforceability of this Agreement or any of the Receivables and to perform its duties
under this Agreement.

 

(b)   
Successor Qualifications. Subject to Company’s termination rights under Section 11, any Person into which Servicer
may be merged or consolidated, or any Person resulting from any merger, conversion or consolidation to which Servicer shall be a party,
or any Person (including an Affiliate of Servicer) succeeding to substantially all of the business or assets of Servicer (whether or not
related to loan servicing), shall automatically be the successor of Servicer hereunder, without the execution or filing of any paper or
any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided, however, that the
successor or surviving Person shall be an entity whose ongoing business includes the servicing of Receivables and shall be fully licensed
to service Receivables, respectively, under applicable Laws and in accordance with Customary Servicing Procedures; provided, further,
that, notwithstanding the foregoing, upon the closing of any such merger, conversion or consolidation, the successor or surviving Person
shall expressly assume in writing all obligations of Servicer under this Agreement.

 

Section
8.     Servicer Not to Resign. Servicer shall not assign this Agreement or resign from the obligations and duties hereby
imposed on it except (a) by mutual consent of Servicer and Company, or (b) upon the determination that Servicer’s duties hereunder
are no longer permissible under applicable Laws and such impermissibility cannot be cured by Servicer. Any such determination permitting
the resignation of Servicer shall be evidenced by an opinion of counsel to such effect delivered to Company, which opinion of counsel
shall be in form and substance reasonably acceptable to Company.

 

Section
9.     Representations and Warranties of Servicer. The Servicer makes the following representations and warranties to
Company as of the date of this Agreement, and as of the date each Receivable becomes subject to this Agreement:

 

(a)   
Servicer is a corporation, validly existing and in good standing under the laws of the state of Florida. Servicer is duly qualified
and in good standing in each state where the nature of its business or the character of its properties makes such qualification and good
standing necessary, except where the failure to be so qualified or in good standing could not reasonably be expected to result in a Material
Adverse Effect and Servicer is taking all commercially reasonable actions necessary to remedy such failure to be so qualified or in good
standing. Servicer is licensed and registered, in each state where the nature of its business or the character of its properties makes
such licensing or registration necessary.

    	11

     

    

 

(b)   
Servicer has the full power and authority to service the Receivables and related Accounts hereunder and to execute, deliver and
perform its obligations under, and to enter into and consummate all transactions contemplated by, this Agreement. Servicer has duly authorized
the execution, delivery and performance of this Agreement, has duly executed and delivered this Agreement, and this Agreement, assuming
due authorization, execution and delivery by Company, constitutes a legal, valid and binding obligation of Servicer, enforceable against
it in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
and other similar laws and general principles of equity (regardless of whether considered in a proceeding in equity or at law).

 

(c)   
The execution and delivery of this Agreement by Servicer and the performance of and compliance with the terms of this Agreement
will not (i) violate Servicer’s organizational documents, (ii) constitute a default under, or result in a breach or acceleration
of, any material contract, agreement or other instrument to which Servicer is a party or which may be applicable to Servicer or its assets
where such default, breach or acceleration could reasonably be expected to have a Material Adverse Effect, (iii) violate any Laws applicable
to Servicer or its assets or (iv) impair the ability of Company to enforce the Receivables or related Accounts, impair the value of the
Receivables, or impair the ability of Company to realize the full benefits accruing pursuant to this Agreement.

 

(d)   
Servicer is (A) in compliance in all material respects with all Laws applicable to Servicer that relate to the Receivables or Servicer’s
performance of the Services or its other obligations under this Agreement and (B) except where such failure to be in compliance could
not reasonably be expected to have a Material Adverse Effect, in compliance with all other Laws applicable to Servicer or its assets.

 

(e)   
There are no Claims or Proceedings pending, or to Servicer’s knowledge, threatened against or affecting Servicer before any
Governmental Authority (i) that might prohibit its entering into this Agreement, (ii) seeking to prevent the consummation of the transactions
contemplated by this Agreement, (iii) asserting the invalidity of this Agreement, any Receivable or Account Document or (iv) that could
reasonably be expected to have a Material Adverse Effect on the Servicer or on the timing of any payments or prepayments of, or the enforceability
of, any Receivables.

 

(f)   
No consents, licenses, registrations, permits, approvals, authorizations or orders of any Governmental Authority (“Permits”)
are required for the operation of Servicer’s business or the execution, delivery and performance by Servicer of, or compliance by
Servicer with, this Agreement or the consummation of the transactions contemplated by this Agreement, except for such Permits, if any,
that have been obtained by Servicer prior to the date hereof. Throughout the term of this Agreement, Servicer shall comply with and maintain
in full force and effect all such Permits. All such Permits are in full force and effect, no violations are or have been recorded with
respect to any such Permits, and there are no Proceedings pending or, to Servicer’s knowledge, threatened that may terminate, revoke,
or limit any such Permits.

 

(g)   
The performance of the Services and the consummation of the transactions contemplated by this Agreement are in the ordinary course
of business of Servicer.

 

(h)   
Servicer has the facilities, procedures and experienced personnel necessary for the servicing of the Receivables in accordance
with this Agreement and Customary Servicing Procedures, and no event has occurred (including, but not limited to, any change in insurance
coverage) which would make Servicer unable to comply with Customary Servicing Procedures.

    	12

     

    

 

(i)   
Servicer has disclosed to Company all agreements, instruments and corporate or other restrictions to which it or any of its Affiliates
is subject that, individually or in the aggregate, would result in a Material Adverse Effect on servicing of the Receivables under this
Agreement.

 

(j)   
All monthly servicer reports, information, exhibits, financial statements, documents, books, data files or other reports furnished
or to be furnished by the Servicer to the Company in connection with this Agreement or any other Program Agreement are accurate, true
and correct in all material respects. The Servicing Manual delivered to Company is a complete, true and correct copy of the Servicing
Manual.

 

(k)   
Servicer’s chief place of business, its chief executive office and the office in which the Servicer maintains its books and
records are located in the State of Florida. Servicer’s registered office and the jurisdiction of organization of the Servicer is
the jurisdiction referred to in Section 9(a).

 

(l)    
Servicer has filed all federal and material state income tax returns and all other material tax returns which are required to be
filed by it, if any, and has paid all taxes shown to be due and payable on such returns, if any, or pursuant to any assessment received
by any such Person, other than any such taxes, assessments or charges that are being contested in good faith by appropriate proceedings
and for which appropriate reserves in accordance with GAAP have been established.

 

(m)  
Servicer is not Insolvent and is not the subject of any Insolvency Event.

 

Section 10.     Additional
Covenants of Servicer.

 

(a)   
Government Approvals. Servicer shall remain duly licensed, registered and authorized to do business in all jurisdictions
necessary to perform the Services and carry out its obligations under this Agreement.

 

(b)   
Insurance. Servicer shall, at all times that this Agreement is in effect and at Servicer’s cost and expense,
keep in full force and effect general liability, errors and omissions, cyber liability, employee crime, commercial automobile (if Servicer
owns automobiles), workers’ compensation insurance coverage for the Services rendered pursuant to this Agreement, and any other
industry standard insurance policies required under applicable Laws. The general liability coverage will have limits of liability of not
less than $2,000,000 aggregate, $1,000,000 per occurrence, with an excess liability policy(ies) (written over general liability) of not
less than $25,000,000, the cyber liability coverage will have an aggregate limit of not less than $7,000,000, the employee crime (including
fidelity) coverage will have a per occurrence limit of not less than $1,000,000 and the commercial automobile coverage will have an aggregate
limit of $2,000,000.

 

At all times that this Agreement is in effect, Servicer shall add and maintain Company as an additional insured
on the general liability policy described above and provide Company with a copy of the applicable certificate of insurance. On or before
the Initial Closing Date (as defined in the Master Receivables Purchase Agreement), the general liability policy shall include a separation
of insureds clause or similar language that will not bar coverage of Company’s claims. Company shall be given notice within five
(5) Business Days of such event if the insurance coverage, or any portion thereof, has been terminated, cancelled or modified in any way
that would cause Servicer to be in default of its obligations under this Section 10(d). In addition, Servicer shall provide Company with
30 days’ prior written notice of any expected material change to, or termination of, such insurance coverage. Servicer shall not
terminate or allow such insurance coverage to be terminated unless Servicer has replaced such terminated portions of the insurance coverage
prior to final termination or modification, without interruption of insurance coverage. Servicer shall cause its commercial general liability
insurance policy(ies) to provide for waiver of subrogation in favor of Company as respects ongoing operations related to this Agreement.

 

    	13

     

    

		(c)	Periodic Reports.

 

(i)                          As
promptly as practicable (but in any event not later than two (2) Business Days) after Servicer obtains knowledge of the occurrence of
any event or circumstance which would permit Company to terminate this Agreement pursuant to Section 11(a), Servicer shall deliver written
notice thereof to Company.

 

(ii)                        
Within forty-five (45) days after the end of each quarter, Servicer shall deliver to Company its consolidated balance sheet
and the related consolidated statement of income, stockholders’ equity and cash flows for such quarter and for the period from the
beginning of the then-current fiscal year to the end of such quarter, setting forth in each case in comparative form the corresponding
figures for the corresponding periods of the previous fiscal year, all in reasonable detail, together with a certification by Servicer’s
chief financial officer attesting to the material accuracy thereof.

 

(iii)                         Within
one hundred-fifty (150) daysafter the end of each fiscal year, commencing with Servicer’s fiscal year ending on December 31, 2021,
Servicer shall deliver to Company (1) its audited consolidated balance sheet as at the end of such fiscal year and the related consolidated
statement of income, stockholders’ equity and cash flows for such fiscal year, setting forth in each case in comparative form the
corresponding figures for the previous fiscal year, all in reasonable detail, together with a certification by its chief financial officer
attesting to the material accuracy thereof and with respect to such financial statements, a report thereon of its independent public
accountants of recognized national standing (which report shall state that such financial statements fairly present, in all material
respects, the financial position of Servicer as at the dates indicated and the results of its operations and its cash flows for the periods
indicated in conformity with GAAP applied on a basis consistent with prior years (except as otherwise disclosed in such financial statements)
and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with
GAAP).

 

(d)       
Account Document and Data Integrity. Servicer agrees that all Account Documents, Account data and other information
reported by Servicer to Company with respect to the Receivables will be accurate and complete and will at all times be consistent with
(i) the Account Documents signed, accepted, acknowledged or agreed by, or otherwise disclosed or presented to, the related Buyer or Buyers;
(ii) all Account data and other information related to the Receivables in existence at the time of origination or purchase, as applicable;
and (iii) such Account Documents, Account data and other information as they concurrently exist in the applicable Buyer’s Account
portal, except in the case of each of clauses (i), (ii) and (iii), where such differences are the result of an amendment or changes in
accordance with the terms of the Account Document that is not otherwise in contravention of this Agreement.

 

    	14

     

    

Section 11.     Default;
Termination

 

(a)                               
Servicer Events of Default. Each of the following shall constitute a Servicer Event of Default under this Agreement:

 

(i)     
any failure by Servicer to remit to Company or deposit in the Collection Account any amount required to be so remitted or
deposited under the terms of this Agreement and such failure continues unremedied for a period of three (3) Business Days after (A) the
date on which written notice of such failure, requiring the same to be remedied, shall have been given to Servicer by Company or (B) Servicer’s
discovery of such failure;

 

(ii)    
any failure by Servicer to duly observe or perform, in any material respect, any other covenants, obligations or agreements of
Servicer as set forth in this Agreement which failure continues unremedied for a period of thirty (30) days after the date on which written
notice of such failure, requiring the same to be remedied, shall have been given to Servicer by Company;

 

 (iii)    an Insolvency Event shall have occurred with respect to Servicer;

 

(iv)   
Servicer shall become Insolvent, admit in writing its inability to pay its debts as they become due, file a petition to take advantage
of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment
of its obligations;

 

(v)    
any representation or warranty made by Servicer as set forth in Section 9 proves not to have been complete, true and correct
in any respect as of the date when made which could reasonably be expected to have a Material Adverse Effect;

 

(vi)   
Servicer fails to maintain any Permits required for (A) the operation of Servicer’s servicing business or compliance
by Servicer with its obligations under this Agreement or (B) the operation of Servicer’s non-servicing business if, only in the
case of clause (B), the failure to maintain any such required Permit could reasonably be expected to have a Material Adverse Effect;

 

(vii)   
Servicer fails to comply with applicable Laws and such failure could reasonably be expected to have a Material Adverse Effect;

 

(viii)  
any regulatory inquiry (other than a routine regulatory examination, a complaint regarding a single Buyer or an inquiry
that does not allege, or could not reasonably be expected to result in an allegation of, a violation of Law by Servicer or any agent or
other representative of Servicer with respect to the Services or a material violation of Law by Servicer or any agent or other representative
of Servicer whether or not with respect to the Services), investigation, enforcement action or litigation is commenced or order or judgment
is imposed on or issued against Servicer or any agent or other representative of Servicer, in each case that could reasonably be expected
to have a Material Adverse Effect;

 

    	15

     

    

(ix)   
The occurrence of any material adverse change or event that could reasonably be expected to have a Material Adverse Effect; or

 

(x)    
The occurrence of any Change in Control of Servicer.

 

(b)                               
Termination Due to Servicer Event of Default. In each and every case of a Servicer Event of Default, Company, by
notice in writing to Servicer, may, in addition to whatever rights Company may have at law or equity to damages, including injunctive
relief and specific performance, commence termination of all the rights and obligations of Servicer under this Agreement and in and to
the servicing of the Receivables. After receipt by Servicer of a written notice from Company, stating that Company intends to terminate
Servicer as a result of such Servicer Event of Default, and upon the receipt by Servicer of a Successor Servicer Commencement Notice pursuant
to Section 11(e), all authority and power of Servicer under this Agreement, whether with respect to the Receivables or otherwise, shall
pass to and be vested in the Successor Servicer appointed pursuant to Section 11(e) and the Successor Servicer shall commence servicing
the Receivables pursuant to terms hereof; provided that Servicer shall retain authority and power to service and shall continue to service
the Receivables until all of the Account Files have been successfully transferred to the applicable platform of the Successor Servicer.
Upon written request from Company, Servicer shall prepare, execute and deliver to the Successor Servicer any and all documents and other
instruments, place in such successor’s possession all Servicing Records and do or cause to be done all other acts or things necessary
or appropriate to effect the purposes of such notice of termination, including the transfer, endorsement or assignment of the Receivables
and related documents to the successor at Servicer’s sole expense. Servicer agrees to cooperate with Company and the Successor Servicer
in effecting the termination of Servicer’s responsibilities and rights hereunder. Servicer shall be entitled to the Servicing Fee
and Servicing Expenses with respect to the Receivables for its performance of such duties. Such fees and expenses shall be payable by
the Company.

 

(c)                               
Waiver of Defaults. Company may waive any default by Servicer in the performance of its obligations hereunder and
its consequences. Upon any waiver of a past default, such default shall cease to exist, and any Servicer Event of Default arising therefrom
shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default
or impair any right consequent thereto except to the extent expressly so waived.

 

		(d)	Termination.

 

(i)    
Except as otherwise provided herein, this Agreement shall terminate upon the payment in full of the Unpaid Amount of the
Receivables and all Net Collections to the Company, subject to the parties’ right to terminate this Agreement by their mutual consent
at any time.

 

(ii)   
Except as otherwise provided herein, this Agreement shall terminate with respect to any Receivable on the date on which
such Receivable is paid in full by the Buyer. Upon such termination Servicer shall provide the Company with all material information with
respect to any ongoing collection efforts with respect to Defaulted Receivables.

 

(iii)  
 If termination of this Agreement is required or requested by any Governmental Authority, or if Company determines in good
faith in its sole discretion, as supported by a legal opinion of counsel for Company, that its actions contemplated under this Agreement
or the actions or activities of Servicer violate any applicable Laws, then Company shall have the right to terminate this Agreement, such
termination effective upon receipt of the notice of such termination by Servicer.

 

    	16

     

    

(e)                               
Successor to Servicer.

 

(i)   
Prior to termination of Servicer’s responsibilities and duties under this Agreement pursuant to this Section 11 or
by Servicer’s resignation as servicer to the extent permitted hereunder, Company shall appoint a successor servicer (the “Successor
Servicer”), which shall succeed to all rights and assume all of the responsibilities, duties and liabilities of Servicer under
this Agreement. In connection with such appointment and assumption, Company may make such arrangements for the compensation of such successor
out of payments on Receivables as it and such Successor Servicer shall agree. In the event that Servicer’s duties, responsibilities
and liabilities under this Agreement shall be terminated pursuant to this Section 11 or Servicer shall resign in accordance with the terms
hereof, Servicer shall discharge such duties and responsibilities during the period from the date it acquires knowledge of such termination
until the effective date thereof with the same degree of diligence and prudence which it is obligated to exercise under this Agreement,
and shall take no action whatsoever that might impair or prejudice the rights or financial condition of the Successor Servicer. The resignation
or removal of Servicer pursuant to this Section 11 shall not become effective until a Successor Servicer shall be appointed pursuant to
this Section. Any Successor Servicer appointed as provided herein shall execute, acknowledge and deliver to Company an instrument accepting
such appointment (the “Successor Servicer Commencement Notice”), whereupon such Successor Servicer shall become fully
vested with all the rights, powers, duties, responsibilities, obligations and liabilities of Servicer, with like effect as if originally
named as a party to this Agreement; provided, however, that the Successor Servicer must either assume the insurance contracts the Servicer
maintained in conformance with Section 10(b) herein or acquire new policies that satisfy the conditions of Section 10(b) prior to accepting
such appointment and the predecessor Servicer shall be entitled to any amounts accrued and unpaid under such Insurance contracts prior
to termination as Servicer. Any termination or resignation of Servicer or this Agreement shall not affect any claims that Company may
have against Servicer arising prior to any such termination or resignation.

 

(ii)   
Upon termination or resignation of Servicer hereunder, Servicer shall promptly deliver to the Successor Servicer all Servicing
Records and related documents and statements held by it hereunder. Servicer shall account for all funds held in trust for the benefit
of Company under this Agreement and not yet deposited into the Collection Account and shall immediately distribute such funds and all
funds held in the Collection Account to the Successor Servicer or as otherwise directed by Company, and shall execute and deliver such
instruments and do such other things as may reasonably be required to more fully and definitively vest in the Successor Servicer all such
rights, powers, duties, responsibilities, obligations and liabilities of Servicer. Servicer shall promptly notify Company of any funds
Servicer receives with respect to any Receivable after the termination of this Agreement that are due to Company and shall promptly distribute
such funds as directed by Company. The termination rights provided herein shall be in addition to whatever rights the non-defaulting party
may have at law or equity to damages, including injunctive relief and specific performance. .

 

    	17

     

    

Section 12.     Transition
Services.

 

(a)  
 Upon termination in whole or in part of this Agreement for any reason (other than termination pursuant to 11(d)(i) or (ii)),
at Company’s request and expense, Servicer must provide reasonable transition services up to the end of the last full calendar month
ending on or after the date that is six (6) months after the effective date of such termination, or such longer period as the parties
may agree, to facilitate the orderly transfer of the Services to another provider or in bringing such services in-house with Company or
its affiliates such that there will be no material interruption or adverse effect with respect to such Services.

 

(b)   
During any transition services period requested by Company pursuant to Section 12(a), Servicer shall diligently continue
to perform the Services, and Company will diligently continue to fulfill its duties and obligations, pursuant to the terms of this Agreement
(subject to the payment of compensation therefor by Company pursuant to the terms of this Agreement) as if this Agreement had not been
terminated during such time.

 

(c)   
Any notice of termination delivered to Servicer by Company shall specify, to the extent then known and possible, the timing
and method of transition to a successor servicer. Servicer agrees to cooperate in the transfer of its responsibilities and rights hereunder
to a successor servicer or subservicer, including, without limitation, the transfer to such party for administration by it of (a) all
cash amounts that shall at the time be credited to the related Receivables or thereafter be received with respect to the related Receivables
and (b) all files, documents and records relating to the related Receivables in its possession, regardless of whether such files are in
electronic and hard copy form.

 

(d)   
Without in any way limiting the foregoing, Servicer shall provide Company information concerning the Services reasonably
necessary for the timely transition of the Services from Servicer to Company or the designee of Company.

 

(e)    
Notwithstanding the foregoing, Servicer shall not be required to provide any Confidential Information of Servicer to any
person other than that which it typically provides to Company pursuant to this Agreement, and then only to the extent that such person
has executed a valid and binding confidentiality agreement with customary terms for agreements of such kind.

 

Section 13.     Privacy;
Confidentiality.

 

(a)                               
Protection of Consumer Information.

 

(i)                                 
Servicer will only use, maintain and/or disclose Consumer Information in compliance with all applicable privacy and security
Laws and with the policies set forth in this Section 13(a), and will ensure that Persons to whom it transfers Consumer Information do
the same. In the event that Company or any of its Affiliates request Servicer to provide it with any Consumer Information, such Person
shall have compliance measures in place with respect to such Consumer Information that comply with all applicable privacy and security
Laws.

 

(ii)                                
Servicer will establish and maintain appropriate administrative, technical and physical safeguards to protect the security,
confidentiality and integrity of the Consumer Information. These safeguards will be designed to protect the security, confidentiality
and integrity of the Consumer Information, ensure against any anticipated threats or hazards to its security and integrity, and protect
against unauthorized access to or use of such information or associated records which could result in substantial harm or inconvenience
to any Buyer or applicant.

 

    	18

     

    

(iii)                                
Servicer will ensure that any third party to whom it transfers or discloses Consumer Information (other than a credit agency)
signs a written contract with Servicer in which such third party agrees to (A) restrict its use of Consumer Information to the use specified
in the written contract; (B) to comply with all applicable Laws; and (C) implement and maintain appropriate safeguards as stated in clause
(ii) above. Servicer agrees to transfer or make available to third parties only such Consumer Information as is reasonably necessary to
carry out the contemplated task.

 

(iv)                                 
Servicer shall notify Company immediately following discovery or notification of any breach of security of the systems maintained
by Servicer. Servicer agrees to take action immediately, at its own expense, to investigate the breach, to identify and mitigate the effects
of any such breach and to implement reasonable and appropriate measures in response to such breach. Servicer also will provide Company
with all available information regarding such breach to assist Company in implementing its information security response program and,
if applicable, in notifying affected Buyers. For the purposes of this Section 13(a), the term “breach of security” or “breach”
means the unauthorized access to or acquisition of any record containing personally identifiable information relating to a Buyer, whether
in paper, electronic, or other form, in a manner that renders misuse of the information reasonably possible or that otherwise compromises
the security, confidentiality, or integrity of the information.

 

(v)                                   
Notwithstanding anything else contained in this Agreement, neither Servicer nor Company will, and neither of them will be
obligated to, take any action that either of them believes in good faith would violate, or is reasonably likely to cause either of them
to violate, any applicable Laws or that would cause either of them to become a “consumer reporting agency” for purposes of
the federal Fair Credit Reporting Act, as it may be amended from time to time.

 

(vi)                                 
Servicer will use commercially reasonable measures designed to properly dispose of all records containing personally identifiable
information relating to Buyers, whether in paper, electronic, or other form, including adhering to policies and procedures that require
the destruction or erasure of electronic media containing such personally identifiable information so that the information cannot practicably
be read or reconstructed.

 

		(b)	Confidentiality.

 

(i)                                   
Generally. Each party agrees that it will hold all Confidential Information in the strictest confidence and will
not disclose or use any Confidential Information for any purpose other than in connection with the performance by such party of its obligations
under this Agreement, and shall not disclose any Confidential Information to any third party, except that, subject to Section 13(a) each
party may disclose Confidential Information: (A) to its Affiliates, and its and its Affiliates’ officers, directors, employees,
auditors, agents, advisors and attorneys, (B) to its third party service providers, capital providers, and asset funders (to the extend
such funders are impacted by the servicing of the assets) that have agreed in writing with such disclosing party to use and maintain the
confidentiality of such Confidential Information in accordance with this Agreement, (C) to any Governmental Authority of such party, (D)
to potential purchasers or assignees of all or any portion of the Receivables, or (E) to the extent such disclosure is required or compelled
in any judicial or regulatory Proceeding or is otherwise required by applicable Laws. The parties acknowledge and agree that Servicer’s
origination, purchase, credit risk management and underwriting strategies constitute Confidential Information of Servicer that is subject
to the terms and conditions of this Section 13(b) that may not be disclosed to any third party.

 

    	19

     

    

(ii)                                
Account Level Data. The parties acknowledge and agree that all account level data, including the application, credit
bureau and ongoing account performance history related to the Receivables sold to Company under the Master Receivables Purchase Agreement,
shall be the property of Servicer. Servicer hereby grants to Company, a non-exclusive, worldwide, non-sub licensable, royalty-free, fully
paid-up license to use, reproduce, prepare derivative works of such account level data to develop, refine, or enhance Servicer’s
origination, purchase, credit risk management and underwriting strategies. Servicer shall provide to Company the ongoing account performance
data for the life of each Receivable sold to Company hereunder Such data shall be treated as Confidential Information of Company that
is subject to the terms and conditions of this Section 13(b).

 

(c)                               
Publications. Servicer shall not publish or otherwise distribute any written materials (including any website content
or correspondence with Buyers) referencing Company or any of its Affiliates, nor shall Servicer orally discuss or reference Company or
any of its Affiliates in connection with any Receivable or the Account Program with any Buyers or Receivable applicants, in each case,
without the express prior written consent of Company.

 

Section
14. Notices. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been
duly given when received by the other party when sent by certified mail, return receipt requested, or electronic mail (at such email addresses
as a party may designate in accordance herewith), at the respective addresses set forth below:

if to Company:

 

B. Riley Receivables, LLC

30870 Russell Ranch Road, Suite 250

Westlake Village, CA 91362   

Attention: Gina Downs

Phone: (818) 746-9310

E-mail Address: gdowns@brileyfin.com

 

with a copy, which shall not constitute notice, to:

 

Choate, Hall & Stewart LLP

Two International Place

Boston, MA 02110

Attention: John Ventola

E-mail Address: jventola@choate.com

 

    	20

     

    

if to Servicer:

 

W.S. Badcock Corporation

200 Phosphate Blvd., N.W.

Mulberry, FL 33860

Attention: Mitchell P. Stiles, Senior Vice President- Retail
Operations

E-mail Address: Mitchell.Stiles@badcock.com

(863) 425-7506

 

with a copy, which shall not constitute notice, to:

 

W.S. Badcock Corporation

200 Phosphate Blvd., N.W.

Mulberry, FL 33860

Attention: Phillip Bayt, Senior Vice President and General
Counsel

E-mail Address: phil.bayt@badcock.com

(863) 425-7637

 

 

or such other address as may hereafter
be furnished to the other party by like notice. Any such demand, notice or communication hereunder shall be deemed to have been received
on the date delivered to or received at the premises of the addressee (as evidenced, in the case of registered or certified mail, by the
date noted on the return receipt). The parties may provide other communications hereunder via email, but such communications shall only
be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as a return e-mail or other
written acknowledgement, but not an automated response such as by the “return receipt requested” function).

 

Section 15.     Miscellaneous

 

(a)   
Amendment. This Agreement, including any exhibits or schedules hereto, may be amended from time to time only by an
agreement in writing signed by Company and Servicer.

 

(b)   
Severability. Any part, provision, representation or warranty of this Agreement which is prohibited or which is held
to be void or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof. Any part, provision, representation or warranty of this Agreement which is prohibited or unenforceable or is held to
be void or unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction, to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction as to any Receivable
sold to Company shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable
Laws, the parties hereto waive any provision of Laws which prohibits or renders void or unenforceable any provision hereof. If the invalidity
of any part, provision, representation or warranty of this Agreement shall deprive any party of the economic benefit intended to be conferred
by this Agreement, the parties shall negotiate, in good-faith, to develop a structure the economic effect of which is nearly as possible
the same as the economic effect of this Agreement without regard to such invalidity.

 

    	21

     

    

(c)   
Duration of Agreement. This Agreement shall continue in existence and effect until terminated as herein provided.

 

(d)   
GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO ANY CONFLICTS OF LAW PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT PREEMPTED
BY FEDERAL LAW.

 

(e)   
WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

(f)   
Choice of Forum. Each party irrevocably and unconditionally submits to the exclusive jurisdiction of the U.S. District
Court for the Southern District of New York or any court of the State of New York sitting in New York County, and any appellate court
from any thereof, in any action, litigation or proceeding of any kind arising out of or relating to this Agreement and agrees to bring
any such action, litigation, or proceeding only in such courts. Each party agrees that a final judgment in any such action, litigation,
or proceeding is conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Each party hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that
it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in
any New York State or federal court. Each party hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient form to the maintenance of such action or proceeding in any such court.

 

(g)   
Assignment. This Agreement shall not be assigned by Servicer to a third party without the prior written consent of
the Company. The Company may, without the consent of Servicer, assign this Agreement and its rights and obligations hereunder to any Affiliate
of Company or any purchaser, assignee of other transferee of all or some of the Receivables from Company. Notwithstanding anything in
this Agreement or in the Master Receivables Purchase Agreement to the contrary, Company may, without prior written notice and without
the consent of Servicer, sell, assign or otherwise transfer all or any part of the any Receivables.

 

(h)   
General Interpretive Principles. For purposes of this Agreement, except as otherwise expressly provided or unless
the context otherwise requires:

 

(i)                                the terms defined in this Agreement have the meanings assigned to them in this Agreement and include the plural as well
as the singular, and the use of any gender herein shall be deemed to include the other gender;

 

(ii)                              
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP;

 

    	22

     

    

(iii)                           
references herein to “Sections”, “Exhibits” and other subdivisions without reference to a document
are to designated Sections, Exhibits and other subdivisions of this Agreement;

 

(iv)                           
the words “herein”, “hereof”, “hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular provision;

 

(v)                            
the term “include” or “including” shall mean without limitation by reason of enumeration; and

 

(vi)                           
section headings are for convenience only and shall not be part of the terms and conditions of this Agreement.

 

(i)   
Execution; Successors and Assigns. This Agreement, any documents to be delivered pursuant to this Agreement and any
notices thereunder, may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original,
and all such counterparts shall constitute one and the same instrument. The parties agree that this Agreement, any documents to be delivered
pursuant to this Agreement, any notices thereunder, and signature pages to any of the foregoing, may be transmitted between them by facsimile
or by electronic mail and that faxed, PDF or DocuSign (or other e-signature) signatures may constitute original signatures and that a
faxed, PDF or DocuSign (or other e-signature) signature page containing the signature (faxed, PDF, DocuSign (or other e-signature) or
original) is binding upon the parties. The original documents shall be promptly delivered, if requested. Subject to the express terms
hereof, this Agreement shall inure to the benefit of and be binding upon Company and Servicer and their respective successors and permitted
assigns.

 

(j)   
Further Agreements. Servicer and Company each agrees to execute and deliver to the other such reasonable and appropriate
additional documents, instruments or agreements as may be necessary or appropriate to effectuate the purposes of this Agreement.

 

(k)  
No Partnership. Nothing herein contained shall be deemed or construed to create a co-partnership or joint venture
between the parties hereto and the Services of Servicer shall be rendered as an independent contractor and not as agent for Company.

 

(l)   
Waivers. No term or provision of this Agreement may be waived or modified unless such waiver or modification is in
writing and signed by the party against whom such waiver or modification is sought to be enforced.

 

(m) 
Exhibits. The exhibits to this Agreement are hereby incorporated and made a part hereof and are an integral part
of this Agreement.

 

    	23

     

    

(n)   
Force Majeure. No party to this Agreement shall be liable for any failure to perform or delay in its performance
of its obligations to the extent such failure or delay is as a result of war, invasion, act of foreign enemies, hostilities (whether war
is declared or not), civil war, rebellion, revolution, insurrection, military or usurped power of confiscation, terrorist activities,
nationalization, government sanction, blockade or embargo (a “Force Majeure Event”). Notwithstanding the foregoing,
a Force Majeure Event shall not excuse a party from any of its obligations hereunder or liability for failure to perform (i) if such failure
or delay is due to the non-performing party’s (or any of its personnel’s) gross negligence or willful misconduct, including
failing to prevent or causing such failure or delay and (ii) to the extent that the non- performing party commercially reasonably could
have prevented the failure or delay by reasonable precautions or could not reasonably have circumvented the underlying issues through
the use of alternate sources, workaround plans or other means. In the case of a Force Majeure Event to which the previous sentence is
not applicable, the non-performing party shall be excused from further performance or observance of the obligations so affected for as
long as such circumstances prevail and such party continues to use commercially reasonable efforts to recommence performance or observance
whenever and to whatever extent possible without delay. Any party so delayed in its performance or unable to perform shall immediately
notify the party to whom performance is due, describe at a reasonable level of detail the circumstances causing such delay and keep the
other party informed on a daily basis of the status of its efforts to recommence performance of its obligations under this Agreement.

 

 

[Signature page follows]

 

 

 

 

 

    	24

     

    

 

IN WITNESS WHEREOF, Company and Servicer
have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the date first above written.

 

 

	 	W.S. BADCOCK CORPORATION
	 	(Servicer)
	 	 
	 	 
	 	By: /s/ Robert Burnette          
	 	Name: Robert Burnette
	 	Title: Chief Executive Officer
	 	 
	 	B. RILEY RECEIVABLES, LLC
	 	(Company)
	 	 
	 	 
	 	By:/s/ Martin Bernstein          
	 	Name: Martin Bernstein
	 	Title: Senior Vice PresidentExhibit 10.1

    

     

    

    CarParts.com, Inc.

    

    

    Common Stock

    ($0.001 par value per share)

    

    

    EQUITY OFFERING SALES AGREEMENT

    

    

    December 20, 2021

    

    

    D.A. Davidson & Co.

    8 Third Street North

    Great Falls, MT 59401

    

    

    Ladies and Gentlemen:

    

    

    CarParts.com, Inc., a Delaware corporation (the “Company”),

      proposes, subject to the terms and conditions stated herein, to issue and sell from time to time to or through D.A. Davidson & Co., as sales agent and/or principal (the “Agent”),

      shares (the “Shares”) of the Company’s common stock, $0.001 par value per share (the “Common Stock”), having an aggregate gross sales price of up to $50,000,000 on the terms set forth in this Equity Offering Sales Agreement (this “Agreement”).

      The Company agrees that whenever it determines to sell Shares directly to the Agent as principal, it will enter into a separate agreement (each such agreement, a “Terms
          Agreement”) in substantially the form of Annex I hereto, relating to such sale in accordance with Section 2 of this Agreement.

    

    

    Section 1. Representations and Warranties. The
      Company represents and warrants to the Agent that as of the date of this Agreement, the date of any Terms Agreement, each Registration Statement Amendment Date (as defined in Section 3(i) below), each Company Periodic Report Date (as defined in
      Section 3(h) below), each Company Earnings Report Date (as defined in Section 3(i) below), each Applicable Time (as defined in Section 1(c) below) and each Settlement Date (as defined in Section 2(g) below):

    

    

    (a) A registration statement on Form S-3 (File No. 333-240467), including a form of prospectus (the “Base Prospectus”), covering the registration of the offer and sale of certain securities (including the Shares) has been prepared by the Company in conformity with the requirements of the
      Securities Act of 1933, as amended (the “1933 Act”), and the rules and regulations (the “1933 Act Regulations”) of the Securities and Exchange Commission (the “Commission”) thereunder and has been filed with the Commission.
      The Company and the transactions contemplated by this Agreement and any applicable Terms Agreement meet the requirements and comply with the conditions for the use of Form S-3 under the 1933 Act. Such registration statement, together with any
      registration statement filed by the Company pursuant to Rule 462(b) of the 1933 Act Regulations, is herein referred to as the “Registration Statement,” which
      shall be deemed to include all information omitted therefrom in reliance upon Rule 430B of the 1933 Act Regulations (“Rule 430B”) and contained in the
      Prospectus referred to below, has become effective under the 1933 Act and no post-effective amendment to the Registration Statement has been filed as of the date of this Agreement. “Prospectus” means the Base Prospectus, as supplemented by the final prospectus supplement relating to the Shares, in the form filed with the Commission pursuant to and within the time limits described in Rule 424(b) of the
      1933 Act Regulations. Any reference herein to the Registration Statement or to the Prospectus shall be deemed to refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the 1933 Act, as of the
      effective date of the Registration Statement or the date of the Prospectus, as the case may be, and any reference to “amend,” “amendment” or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to include any
      documents incorporated by reference therein, and any supplements or amendments thereto, filed with the Commission and incorporated by reference therein.

    
      
        

    

    

    

    (b) The Commission has not issued an order preventing or suspending the use of the Registration Statement, any Issuer Free Writing
      Prospectus (as defined in Section 1(c) below) or the Prospectus relating to the proposed offering from time to time of the Shares, and no proceeding for that purpose or pursuant to Section 8A of the 1933 Act has been instituted or, to the Company’s
      knowledge, threatened by the Commission. Each of the Registration Statement and the Prospectus, as of the date hereof and the date of any Terms Agreement and as of each Applicable Time and each Settlement Date, as applicable, comply or will comply as
      to form in all material respects with the applicable requirements of the 1933 Act and the 1933 Act Regulations. The documents incorporated by reference in the Prospectus, at the time filed with the Commission, conformed in all material respects to
      the requirements of the Securities Exchange Act of 1934, as amended (“1934 Act”), and the rules and regulations of the Commission thereunder (the “1934 Act Regulations”). Subject to the limitation included in the next sentence, the Registration Statement and any amendment thereto, as of its effective date, at
      each deemed effective date with respect to the Agent and the Shares pursuant to Rule 430B(f)(2) of the 1933 Act Regulations and as of each Settlement Date, do not and will not contain any untrue statement of a material fact and do not and will not
      omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus and any amendments and supplements thereto, as of its date and as of each Settlement Date, do not and will not
      contain any untrue statement of a material fact and do not and will not omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Company makes no representations or
      warranties as to information contained in or omitted from the Registration Statement or the Prospectus, or any amendment or supplement to the Registration Statement or the Prospectus, in reliance upon, and in conformity with, written information
      furnished to the Company by or on behalf of the Agent, specifically for use therein.

    

    

    (c) The Prospectus and the applicable Issuer Free Writing Prospectus(es) issued at or prior to the relevant Applicable Time, taken together
      (collectively, and, with respect to any Shares, together with the public offering price of such Shares, the “General Disclosure Package”) as of such Applicable
      Time and the applicable Settlement Date, will not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
      misleading; provided, however, that the Company makes no
      representations or warranties as to information contained in or omitted from the General Disclosure Package, in reliance upon, and in conformity with, written information furnished to the Company by or on behalf of the Agent, specifically for use
      therein. As used in this subsection and elsewhere in this Agreement:

    

    

    “Applicable Time” means, with respect to any
      Shares, the time of sale of such Shares pursuant to this Agreement or any Terms Agreement; and

    

    

    “Issuer Free Writing Prospectus” means any
      “issuer free writing prospectus,” as defined in Rule 433 of the 1933 Act Regulations, relating to the Shares in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s records
      pursuant to Rule 433(g) of the 1933 Act Regulations.

    

    

    (d) Each Issuer Free Writing Prospectus, as of its date and as of each Applicable Time and each Settlement Date, does not and will not
      include any information that conflicted, conflicts or will conflict with the information contained in the Registration Statement or the Prospectus, including any document incorporated by reference and any preliminary or other prospectus deemed to be
      a part thereof that has not been superseded or modified; provided, however,
      that the Company makes no representations or warranties as to information contained in or omitted from any Issuer Free Writing Prospectus, in reliance upon, and in conformity with, written information furnished to the Company by or on behalf of the
      Agent, specifically for use therein.

    

    

    (e) The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the State of
      Delaware, with the requisite corporate power and authority to own or lease its properties and conduct its business as described in the Registration Statement, the General Disclosure Package and the Prospectus. Each of the Company’s “subsidiaries” (as
      such term is defined in Rule 1-02 of Regulation S-X) (each, a “Subsidiary” and, collectively, the “Subsidiaries”) has been duly incorporated or formed and is validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation, as the case may be, with the requisite
      corporate, limited liability company or limited partnership power and authority, as the case may be, to own or lease its properties and conduct its business as described in the Registration Statement, the General Disclosure Package and the
      Prospectus, except where failure to be in good standing or lack of such power and authority would not have a Material Adverse Effect (as defined below). The Company and each of the Subsidiaries are duly qualified to transact business in all
      jurisdictions in which the conduct of their business requires such qualification, except where the failure to so qualify would not have a Material Adverse Effect. The outstanding shares of capital stock, membership interests or limited partnership
      interests, as the case may be, of each of the Subsidiaries have been duly authorized and validly issued, are fully paid and non-assessable and, except as described in the Registration Statement, the General Disclosure Package and the Prospectus or as
      would not have a Material Adverse Effect, are owned by the Company or another Subsidiary free and clear of all liens, encumbrances, equities and claims; and, except as described in the Registration Statement, the General Disclosure Package and the
      Prospectus or as would not have a Material Adverse Effect, no options, warrants or other rights to purchase, agreements or other obligations to issue or other rights to convert any obligations into shares of capital stock, membership interests or
      limited partnership interests, as the case may be, in the Subsidiaries are outstanding.

    
      
        

    

    

    

    (f) The Company has an authorized and outstanding capitalization as set forth in the Registration Statement, the General Disclosure Package
      and the Prospectus, except for any subsequent issuances of Common Stock pursuant to reservations, agreements, compensatory arrangements or benefit plans that are disclosed in the Registration Statement, the General Disclosure Package and the
      Prospectus. The outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable; and none of the outstanding shares of capital stock of the Company was issued in violation of the
      preemptive or other similar rights of any securityholder of the Company.

    

    

    (g) The Shares have been duly authorized and when issued and paid for as contemplated herein will be validly issued, fully paid and
      non-assessable. No holder of the Shares will be subject to personal liability by reason of being such a holder. The issuance of the Shares is not subject to the preemptive or other similar rights of any securityholder of the Company. The Shares
      conform in all material respects to the description thereof contained in the Registration Statement, the General Disclosure Package and the Prospectus. The form of certificate for the Shares will be in substantially the form incorporated by reference
      as an exhibit to the Registration Statement, and such form complies with all applicable statutory requirements, requirements of the Company’s articles of incorporation and bylaws and requirements of The Nasdaq Global Market (“Nasdaq”).

    

    

    (h) (i) At the earliest time after the filing of the Registration Statement that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) of the 1933 Act Regulations) of the Shares and (ii) as of the date hereof (with such date being
      used as the determination date for purposes of this clause (ii)), the Company was not and is not an “ineligible issuer” (as defined in Rule 405 of the 1933 Act Regulations, without taking into account any determination by the Commission pursuant to
      Rule 405 of the 1933 Act Regulations that it is not necessary that the Company be considered an ineligible issuer), including, without limitation, for purposes of Rules 164 and 433 of the 1933 Act Regulations with respect to the offering of the
      Shares as contemplated by the Registration Statement.

    

    

    (i) The consolidated financial statements of the Company and the Subsidiaries, together with related notes and schedules as set forth or
      incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus, comply in all material respects with the 1933 Act, the 1933 Act Regulations, the 1934 Act and the 1934 Act Regulations, and present fairly the
      financial position and the results of operations and cash flows of the Company and the consolidated Subsidiaries, at the indicated dates and for the indicated periods. Such financial statements and related schedules have been prepared in accordance
      with United States generally accepted principles of accounting (“GAAP”), consistently applied throughout the periods involved, except as disclosed therein, and
      all adjustments necessary for a fair presentation of results for such periods have been made. The summary and selected consolidated financial and statistical data included or incorporated by reference in the Registration Statement, the General
      Disclosure Package and the Prospectus presents fairly, in all material respects, the information shown therein and such data has been compiled on a basis consistent with the financial statements presented therein and the books and records of the
      Company. The financial statements of the businesses or properties acquired or proposed to be acquired, if any, included or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus present fairly in
      all material respects the information set forth therein and have been prepared, in all material respects, in accordance with the applicable financial statement requirements of the 1934 Act Regulations. The pro forma financial statements and other pro
      forma financial information, if any, included or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus present fairly, in all material respects, the information shown therein, have been prepared in
      accordance with the Commission’s rules and guidelines with respect to pro forma financial statements, have been properly compiled on the pro forma bases described therein, and, in the opinion of the Company, the assumptions used in the preparation
      thereof are reasonable and the adjustments used therein are appropriate to give effect to the transactions or circumstances referred to therein. All disclosures contained in the Registration Statement, the General Disclosure Package and the
      Prospectus regarding “non-GAAP financial measures” (as such term is defined by the 1933 Act Regulations) comply with Regulation G of the 1934 Act and Item 10 of Regulation S-K under the 1933 Act, to the extent applicable. The interactive data in
      eXtensible Business Reporting Language incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus fairly presents, in all material respects, the required information and has been prepared, in all
      material respects, in accordance with the Commission’s rules and guidelines applicable thereto. The Company and the Subsidiaries do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations or
      any “variable interest entities” within the meaning of Financial Accounting Standards Board Interpretation No. 46), that are required to be disclosed in the Registration Statement, the General Disclosure Package and the Prospectus that are not so
      disclosed. There are no financial statements (historical or pro forma) that are required to be included in the Registration Statement, the General Disclosure Package or the Prospectus that are not included as required.

    
      
        

    

    

    

    (j) RSM US LLP (“RSM”), who have certified
      certain of the financial statements filed with the Commission as part of, or incorporated by reference in, the Registration Statement, the General Disclosure Package and the Prospectus, is an independent registered public accounting firm with respect
      to the Company and the Subsidiaries within the meaning of the 1933 Act and the applicable Rules and Regulations and the Public Company Accounting Oversight Board (United States).

    

    

    (k) There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities as such,
      to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith, except where the failure to so comply would not have a Material Adverse Effect.

    

    

    (l) There is no action, suit, claim or proceeding pending or, to the knowledge of the Company, threatened against the Company or any of the
      Subsidiaries before any court or administrative agency or otherwise which if determined adversely to the Company or any of the Subsidiaries would either (i) have, individually or in the aggregate, a material adverse effect on the earnings, business,
      management, properties, assets, rights, operations, condition (financial or otherwise) or prospects of the Company and of the Subsidiaries taken as a whole or (ii) prevent the consummation of the transactions contemplated hereby (the occurrence of
      any such effect or any such prevention described in the foregoing clauses (i) and (ii) being referred to as a “Material Adverse Effect”), except as set forth
      in the Registration Statement, the General Disclosure Package and the Prospectus.

    

    

    (m) There are no contracts or documents which are required to be described in the Registration Statement, the General Disclosure Package or
      the Prospectus or the documents incorporated by reference therein or to be filed as exhibits thereto which have not been so described and filed as required.

    

    

    (n) Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company and its subsidiaries
      have good and marketable title to all real property and good and valid title to all other properties and assets owned by them, in each case free from liens, charges, encumbrances and defects that would, singly or in the aggregate, result in a
      Material Adverse Effect, and, except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company and its subsidiaries hold any leased real or personal property under valid and enforceable leases with no
      terms or provisions that would, singly or in the aggregate, have a Material Adverse Effect.

    

    

    (o) [Reserved].

    

    

    (p) Except as described in the Registration Statement, the General Disclosure Package and the Prospectus or except as would not result in a
      Material Adverse Effect, (A) none of the Company, nor any of the Subsidiaries is in violation of any federal, state or local statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial or administrative
      interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land
      surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or
      petroleum products, asbestos-containing materials or mold (collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use,
      treatment, storage, disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”), (B) the Company, the Subsidiaries and the
      Related Entities have all permits, authorizations and approvals required under any applicable Environmental Laws and are each in compliance with their requirements, (C) there are no pending or, to the knowledge of the Company or any Subsidiary,
      threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violations, investigations or proceedings relating to any Environmental Law against the Company or any of the
      Subsidiaries and (D) there are no events or circumstances that might reasonably be expected to form the basis of an order for clean-up or remediation, or an action, suit or proceeding by any private party or governmental body or agency, against or
      affecting the Company or any of the Subsidiaries relating to Hazardous Materials or any Environmental Laws.

    
      
        

    

    

    

    (q) Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there are no persons with
      registration rights or other similar rights to have any securities registered pursuant to the Registration Statement.

    

    

    (r) The Company and the Subsidiaries have filed all federal, state, local and foreign tax returns which have been required to be filed and
      have paid all taxes indicated by such returns and all assessments received by them or any of them to the extent that such taxes have become due, except for any such tax or assessment that is being contested in good faith. All tax liabilities have
      been adequately provided for in the financial statements of the Company, and the Company does not know of any actual or proposed additional material tax assessments.

    

    

    (s) Since the date of the most recent financial statements of the Company included or incorporated by reference in the Registration
      Statement, the General Disclosure Package and the Prospectus, except as otherwise described in the Registration Statement, the General Disclosure Package and the Prospectus, (i) there has not been any Material Adverse Effect or any development
      involving a prospective Material Adverse Effect, (ii) there has not been any material transaction entered into or any material transaction that is probable of being entered into by the Company or the Subsidiaries, other than transactions in the
      ordinary course of business and (iii) there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital stock. The Company and the Subsidiaries have no material contingent obligations that are
      required to be disclosed which are not disclosed in the Company’s financial statements which are included in the Registration Statement, the General Disclosure Package and the Prospectus.

    

    

    (t) Neither the Company nor any of the Subsidiaries is or with the giving of notice or lapse of time or both, will be, (i) in violation of
      its certificate or articles of incorporation, bylaws, certificate of formation, limited liability agreement, partnership agreement or other organizational documents or (ii) in violation of or in default under any agreement, lease, contract, indenture
      or other instrument or obligation to which it is a party or by which it, or any of its properties, is bound and, solely with respect to this clause (ii), which violation or default would have a Material Adverse Effect. The execution and delivery of
      this Agreement and any Terms Agreement and the consummation of the transactions herein and therein contemplated and the fulfillment of the terms hereof and thereof will not conflict with or result in a breach of any of the terms or provisions of, or
      constitute a default under, any indenture, mortgage, deed of trust or other agreement or instrument to which the Company or any Subsidiary is a party or by which the Company or any Subsidiary or any of their respective properties is bound, except for
      any such conflict, breach or default that would not have a Material Adverse Effect, or of the certificate or articles of incorporation, bylaws, certificate of formation, limited liability agreement, partnership agreement or other organizational
      documents of the Company or any Subsidiary or any law, order, rule or regulation, judgment, order, writ or decree applicable to the Company or any Subsidiary of any court or of any government, regulatory body or administrative agency or other
      governmental body having jurisdiction.

    

    

    (u) The execution and delivery of, and the performance by the Company of its obligations under, this Agreement and any Terms Agreement have
      been duly and validly authorized by all necessary corporate action on the part of the Company, and this Agreement and any Terms Agreement have been duly executed and delivered by the Company.

    

    

    (v) Each approval, consent, order, authorization, designation, declaration or filing by or with any regulatory, administrative or other
      governmental body necessary in connection with the execution and delivery by the Company of this Agreement and any Terms Agreement and the consummation of the transactions herein and therein contemplated (except such additional steps as may be
      required by the Financial Industry Regulatory Authority, Inc. (“FINRA”) or such additional steps as may be necessary to qualify the Shares for public offering
      by the Agent under state securities or Blue Sky laws) has been obtained or made is in full force and effect.

    
      
        

    

    

    

    (w) The Company and each of the Subsidiaries hold all material licenses, certificates and permits from governmental authorities which are
      necessary to the conduct of their businesses as currently conducted; the Company and the Subsidiaries each own or possess the right to use all patents, patent rights, trademarks, trade names, service marks, service names, copyrights, license rights,
      know-how (including trade secrets and other unpatented and unpatentable proprietary or confidential information, systems or procedures) and other intellectual property rights (“Intellectual Property”) necessary to carry on their businesses in all material respects; neither the Company nor any of the Subsidiaries has infringed (except as would not reasonably be expected to have a Material Adverse
      Effect), and none of the Company or the Subsidiaries have received notice of conflict with, any Intellectual Property of any other person or entity. The Company has taken all reasonable steps necessary to secure interests in such Intellectual
      Property from its contractors. There are no outstanding options, licenses or agreements of any kind relating to the Intellectual Property of the Company that are required to be described in the Registration Statement, the General Disclosure Package
      and the Prospectus that are not so described in all material respects. The Company is not a party to or bound by any options, licenses or agreements with respect to the Intellectual Property of any other person or entity that are required to be
      described in the Registration Statement, the General Disclosure Package or the Prospectus that are not so described in all material respects. None of the technology employed by the Company has been obtained or is being used by the Company in
      violation of any contractual obligation binding on the Company or any of its officers, directors or employees or otherwise in violation of the rights of any persons (except as would not reasonably be expected to have a Material Adverse Effect). The
      Company has not received any written or oral communications alleging that the Company has violated, infringed or conflicted with, or, by conducting its business as set forth in the Registration Statement, the General Disclosure Package and the
      Prospectus, would violate, infringe or conflict with, any of the Intellectual Property of any other person or entity. The Company knows of no infringement by others of Intellectual Property owned by or licensed to the Company.

    

    

     (x) Neither the Company, nor to the Company’s knowledge, any of its affiliates, has taken or may take, directly or indirectly, any action
      designed to cause or result in, or which has constituted or which might reasonably be expected to constitute, the stabilization or manipulation of the price of the shares of Common Stock to facilitate the sale or resale of the Shares.

    

    

    (y) Neither the Company nor any Subsidiary is or, after giving effect to the offering and sale of the Shares from time to time as
      contemplated by this Agreement or any Terms Agreement and the application of the net proceeds from any such sale as described in the Registration Statement, the General Disclosure Package and the Prospectus, will be an “investment company” within the
      meaning of such term under the Investment Company Act of 1940, as amended (the “1940 Act”), and the rules and regulations of the Commission thereunder.

    

    

    (z) The Company and the Subsidiaries maintain systems of “internal control over financial reporting” (as defined in Rule 13a-15(f) of the
      1934 Act Regulations) that comply with the requirements of the 1934 Act and have been designed by, or under the supervision of, their respective principal executive and principal financial officers, or persons performing similar functions, to provide
      reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP, including, but not limited to, internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to
      maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and
      appropriate action is taken with respect to any differences; and (v) the interactive data in eXtensible Business Reporting Language incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus fairly
      presents, in all material respects, the required information and is prepared, in all material respects, in accordance with the Commission’s rules and guidelines applicable thereto. Except as disclosed in the Registration Statement, the General
      Disclosure Package and the Prospectus, the Company has not publicly disclosed or reported to the Audit Committee (“Audit Committee”) of the Board of Directors or the Board of Directors (the “Board”) of the Company, and within the next 90 days the
      Company does not reasonably expect to publicly disclose or report to the Audit Committee or the Board, (i) a significant deficiency, (ii) a material weakness, (iii) a change in Internal Controls that has materially affected, or is reasonably likely
      to materially affect, the Internal Controls, (iv) fraud involving management or other employees who have a significant role in Internal Controls, (v) any violation of, or failure to comply with Sarbanes-Oxley, the 1933 Act Regulations, the 1934 Act
      Regulations, the rules and regulations of the Trust Indenture Act of 1939, as amended, the rules and regulations of the Commission, the auditing principles, rules, standards and practices applicable to auditors of “issuers” (as defined in
      Sarbanes-Oxley) promulgated or approved by the Public Company Accounting Oversight Board and the Exchange Rules, or (vi) any other matter involving Internal Controls, except, in the case of (i) and (vi), as would not reasonably be expected to have a
      Material Adverse Effect.

    
      
        

    

    

    

    (aa) The Company has established and maintains an effective system of “disclosure controls and procedures” (as defined in Rules 13a-15(e)
      and 15d-15(e) of the 1934 Act Regulations) that complies with the requirements of the 1934 Act; the Company’s “disclosure controls and procedures” are reasonably designed to ensure that all information (both financial and non-financial) required to
      be disclosed by the Company in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the 1934 Act, and that all such information is accumulated and communicated to
      the Company’s management as appropriate to allow timely decisions regarding required disclosure and to make the certifications of the Chief Executive Officer and Chief Financial Officer of the Company required under the 1934 Act with respect to such
      reports.

    

    

    (bb) The statistical, industry-related and market-related data included in the Registration Statement, the General Disclosure Package and
      the Prospectus are based on or derived from sources which the Company reasonably and in good faith believes are reliable and accurate, and such data agree with the sources from which they are derived.

    

    

    (cc) The operations of the Company and the Subsidiaries are, and have been conducted at all times, in compliance with applicable financial
      record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar
      applicable rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”), and no
      action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of the Subsidiaries with respect to the Money Laundering Laws is pending or, to the Company’s knowledge,
      threatened.

    

    

    (dd) Neither the Company nor, any Subsidiary, director, officer, agent, employee, nor, to the Company’s knowledge, after due inquiry, any
      agent, affiliate or other person acting on behalf of the Company or any of its subsidiaries is currently the subject or the target of any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”) or the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury of the United Kingdom, or other relevant
      sanctions authority (collectively, “Sanctions”); nor is the Company or any of its subsidiaries located, organized or resident in a country or territory that is
      the subject or the target of Sanctions, including without limitation, Crimea, Cuba, Iran, North Korea, and Syria; and the Company will not directly or indirectly use the proceeds of this offering, or lend, contribute or otherwise make available such
      proceeds to any subsidiary, or any joint venture partner or other person or entity, for the purpose of financing the activities of or any business with any person, or in any country or territory, that at the time of such financing, is the subject or
      the target of Sanctions or in any other manner that will result in a violation by any person (including any person participating in the transaction whether as underwriter, advisor, investor or otherwise) of applicable Sanctions. For the past five
      years, the Company and its subsidiaries have not knowingly engaged in and are not now knowingly engaged in any dealings or transactions with any person that at the time of dealing or transaction is or was the subject or the target of Sanctions or
      with any Sanctioned Country.

    

    

    (ee) The Company and each of the Subsidiaries carry, or are covered by, insurance in such amounts and covering such risks as is adequate
      for the conduct of their respective businesses and the value of their respective properties and as is customary for companies engaged in similar businesses.

    

    

    (ff) No labor dispute with the employees of the Company or any Subsidiary exists or, to the knowledge of the Company, is imminent, and the
      Company is not aware of any existing or imminent labor disturbance by the employees of any of its or any Subsidiary’s principal suppliers, manufacturers, customers or contractors, which, in either case, would result in a Material Adverse Effect.

    
      
        

    

    

    

    (gg) Except as otherwise disclosed in the Prospectus, the Company and its subsidiaries and any “employee benefit plan” (as defined under
      the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”))

      established or maintained by the Company, its subsidiaries or their “ERISA Affiliates” (as defined below) are in compliance in all material respects with ERISA.  “ERISA Affiliate” means, with respect to the Company or any of its subsidiaries, any member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as amended, and
      the regulations and published interpretations thereunder (the “Code”) of which the Company or such subsidiary is a member.  No “reportable event”
      (as defined under ERISA) has occurred or is reasonably expected to occur with respect to any “employee benefit plan” established or maintained by the Company, its subsidiaries or any of their ERISA Affiliates.  No “employee benefit plan” established
      or maintained by the Company, its subsidiaries or any of their ERISA Affiliates, if such “employee benefit plan” were terminated, would have any “amount of unfunded benefit liabilities” (as defined under ERISA).  Neither the Company, its subsidiaries
      nor any of their ERISA Affiliates has incurred or reasonably expects to incur any liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the
      Code.  Each “employee benefit plan” established or maintained by the Company, its subsidiaries or any of their ERISA Affiliates that is intended to be qualified under Section 401(a) of the Code is so qualified and nothing has occurred, whether by
      action or failure to act, which would cause the loss of such qualification.

    

    

    (hh) There are no relationships or related-party transactions involving the Company or any of the Subsidiaries or any other person required
      to be described in the Registration Statement, the General Disclosure Package or the Prospectus which have not been described as required.

    

    

    (ii) Neither the Company nor any of the Subsidiaries has made any contribution or other payment to any official of, or candidate for, any
      federal, state or foreign office in violation of any law which violation is required to be disclosed in the Registration Statement, the General Disclosure Package or the Prospectus.

    

    

    (jj) Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus or as would not have a Material
      Adverse Effect, no Subsidiary of the Company is currently prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying to the Company any loans or
      advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s property or assets to the Company or any other Subsidiary of the Company.

    

    

    (kk) Neither the Company nor any of the Subsidiaries nor any director, officer, employee of the Company or any of the Subsidiaries, nor to
      the knowledge of the Company, any agent, affiliate or other person acting on behalf of the Company or any of the Subsidiaries has, in the course of its actions for, or on behalf of, the Company or any of its subsidiaries (i) used any corporate funds
      for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made or taken any act in furtherance of an offer, promise, or authorization of any direct or indirect unlawful payment or benefit to
      any foreign or domestic government official or employee, including of any government-owned or controlled entity or public international organization, or any political party, party official, or candidate for political office; (iii) violated or is in
      violation of any provision  U.S. Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), the UK Bribery Act
      2010, or any other applicable anti-bribery or anti-corruption law; or (iv) made, offered, authorized, requested, or taken an act in furtherance of any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment or benefit.
      The Company, the Subsidiaries and, to the knowledge of the Company, the Company’s affiliates have conducted their respective businesses in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which
      are reasonably expected to continue to ensure, continued compliance therewith.

    

    

    (ll) Neither the Company nor any of the Subsidiaries is a party to any contract, agreement or understanding with any person (other than as
      contemplated by this Agreement) that would give rise to a valid claim against the Company or any of the Subsidiaries or the Agent for a brokerage commission, finder’s fee or like payment in connection with the offering and sale of the Shares.

    
      
        

    

    

    

    (mm) The Company and its subsidiaries’ information technology assets and equipment, computers, systems, networks, hardware, software,
      websites, applications, and databases (collectively, “IT Systems”) are adequate for, and operate and perform in all material respects as required in connection
      with the operation of the business of the Company and its subsidiaries as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company and its subsidiaries have
      implemented and maintained commercially reasonable physical, technical and administrative controls, policies, procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation,
      redundancy and security of all IT Systems and data, including “Personal Data,” used in connection with their businesses.  “Personal Data” means (i) a natural
      person’s name, street address, telephone number, e-mail address, photograph, social security number or tax identification number, driver’s license number, passport number, credit card number, bank information, or customer or account number; (ii) any
      information which would qualify as “personally identifying information” under the Federal Trade Commission Act, as amended; (iii) “personal data” as defined by GDPR; (iv) any information which would qualify as “protected health information” under the
      Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act (collectively, “HIPAA”); and (v) any other piece of information that allows the identification of such natural person, or his or her family, or permits the collection or
      analysis of any data related to an identified person’s health or sexual orientation. There have been no breaches, violations, outages or unauthorized uses of or accesses to same, except for those that have been remedied without material cost or
      liability or the duty to notify any other person, nor any incidents under internal review or investigations relating to the same. The Company and its subsidiaries are presently in material compliance with all applicable laws or statutes and all
      judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection of
      such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification.

    

    

    (nn) Except as disclosed in the Registration Statement, the General Disclosure Package or the Prospectus, the Company (A) does not have any
      material lending or other relationship with the Agent or any bank, lending or other affiliate of the Agent and (B) does not intend to use any of the proceeds from the sale of the Shares to repay any outstanding debt owed to the Agent or any affiliate
      of the Agent.

    

    

    (oo) The Common Stock is an actively traded security excepted from the requirements of Rule 101 of Regulation M under the 1934 Act by
      subsection (c)(1) of such rule.

    

    

    Any certificate signed by any officer of the Company and delivered to the Agent or to counsel for the Agent shall be deemed a
      representation and warranty by the Company to the Agent as to the matters covered thereby.

    

    

    Section 2. Sale and Delivery of Shares.

    

    

    (a) Subject to the terms and conditions set forth herein, the Company agrees to issue and sell through the Agent acting as sales agent or
      directly to the Agent acting as principal from time to time, and the Agent agrees to use its commercially reasonable efforts to sell as sales agent for the Company, the Shares. Sales of the Shares, if any, through the Agent acting as sales agent or
      directly to the Agent acting as principal will be made by at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices (i) by means of ordinary brokers’ transactions, to or through the Nasdaq
      or any other market venue where the Shares may be traded, in transactions deemed to be “at-the-market offerings” as defined in Rule 415 under the Securities Act, (ii) in privately negotiated transactions, which may include block trades, as otherwise
      agreed by the Company and the Agent, or through a combination of any such methods of sale or (iii) any other method permitted by law.

    

    

    (b) The Shares are to be sold to the Agent on an agented basis on any day (other than a day on which the Nasdaq is scheduled to close prior
      to its regular weekday closing time) (each, a “Trading Day”) on which (i) the Company has instructed the Agent to make such sales (a “Placement Notice”) and (ii) the Company has satisfied its covenants and conditions specified in Sections 4 and 5 hereof. To the extent the Common Stock is not, at the time of
      delivery of the Placement Notice, an actively traded security excepted from the requirements of Rule 101 of Regulation M under the 1934 Act by subsection (c)(1) of such rule, the Placement Notice must be delivered at least three (3) business days in
      advance of the sale date. The Company will designate in the Placement Notice the time period during which sales are requested to be made, the maximum number of Shares to be sold during such time period and the minimum price per Share at which such
      Shares may be sold. Subject to the terms and conditions specified herein (including, without limitation, the accuracy of the representations and warranties of the Company and the performance by the Company of its covenants and other obligations,
      contained herein and the satisfaction of the additional conditions specified in Section 5 hereof), the Agent shall use its commercially reasonable efforts, consistent with its normal trading and sales practices and applicable law and regulations, to
      sell all of the Shares so designated by the Company as sales agent in accordance with such instruction. The Company and the Agent each acknowledge and agree that (A) there can be no assurance that the Agent will be successful in selling any Shares
      and (B) the Agent will not incur any liability or obligation to the Company if it fails to sell Shares for any reason other than a failure to use commercially reasonable efforts, consistent with its normal trading and sales practices and applicable
      law and regulations, to sell such Shares as required by this Agreement.

    
      
        

    

    

    

    (c) The Company or the Agent through whom the sale of Shares are to be made as sales agent on any Trading Day may, upon notice to the other
      party hereto by telephone (confirmed promptly by telecopy or email, which confirmation will be promptly acknowledged by the receiving party), suspend the offering of the Shares with respect to which the Agent is acting as sales agent for any reason
      and at any time; provided, however, that such suspension or
      termination shall not affect or impair the parties’ respective obligations with respect to the Shares sold, or with respect to Shares that the Company has agreed to sell, hereunder prior to the giving of such notice.

    

    

    (d) The gross sales price of any Shares sold pursuant to this Agreement by the Agent acting as sales agent of the Company shall be equal
      to, subject to the specific instructions of the Company, the market price prevailing at the time of sale for the Shares sold by the Agent on the Nasdaq or otherwise, at prices relating to prevailing market prices or at negotiated prices. The
      compensation payable for sales of Shares with respect to which the Agent acts as sales agent shall be 1.5% of the gross sales prices for such Shares. The Agent shall notify the Company as promptly as practicable if any deduction referenced in the
      preceding sentence will be made. Notwithstanding the foregoing, in the event the Company engages the Agent as a sales agent for a sale of Shares that would constitute a “distribution” within the meaning of Rule 100 of Regulation M under the 1934 Act,
      the Company and the Agent will agree prior to the commencement thereof to compensation for the Agent that is customary for such sales.

    

    

    (e) If acting as sales agent hereunder, the Agent shall provide written confirmation to the Company following the close of trading on the
      Nasdaq on each Trading Day on which Shares are sold under this Agreement setting forth the number of Shares sold on such day, the aggregate gross sales proceeds of the Shares, the aggregate Net Proceeds to the Company and the aggregate compensation
      payable by the Company to the Agent with respect to such sales.

    

    

    (f) Under no circumstances shall the aggregate gross sales price or number, as the case may be, of Shares offered or sold pursuant to this
      Agreement and any Terms Agreement exceed the aggregate gross sales price or number, as the case may be, of Shares (i) set forth in the preamble paragraph of this Agreement, (ii) available for sale under the Prospectus and the Registration Statement
      or (iii) duly authorized from time to time to be issued and sold under this Agreement or any Terms Agreement by the Company  or approved for listing on the Nasdaq, and in each case referred to in clause (ii) and (iii), notified to the Agent in
      writing. In addition, under no circumstances shall any Shares with respect to the Agent, acting as sales agent, be offered or sold at a price lower than the minimum price therefor duly authorized from time to time by the Company and notified to the
      Agent in writing.

    

    

    (g) Settlement for sales of Shares pursuant to this Section 2 will occur on the second business day that is also a Trading Day following
      the trade date on which such sales are made, unless another date shall be agreed to in writing by the Company and the Agent (each such day, a “Settlement Date”).

      On each Settlement Date, the Shares sold through the Agent as sales agent shall be delivered by the Company to the Agent against payment of the Net Proceeds from the sale of such Shares. Settlement for all Shares shall be effected by book-entry
      delivery of Shares to the Agent’s account at The Depository Trust Company against payments by the Agent of the Net Proceeds from the sale of such Shares in same day funds delivered to an account designated by the Company. If the Company shall default
      on its obligation to deliver Shares through the Agent as a sales agent on any Settlement Date, the Company shall (i) indemnify and hold the Agent harmless against any loss, claim or damage arising from or as a result of such default by the Company
      and (ii) pay the Agent any commission to which it would otherwise be entitled absent such default.

    
      
        

    

    

    

    (h) Notwithstanding any other provision of this Agreement, the Company shall not offer, sell or deliver, or request the offer or sale of
      any Shares and, by notice to the Agent given by telephone (confirmed promptly by telecopy or email), shall cancel any instructions for the offer or sale of any Shares, and the Agent shall not be obligated to offer or sell any Shares, (i) during any
      period in which the Agent believes that the Company is, or could be deemed to be, in possession of material non-public information or (ii) except as provided in Section 2(i) below, at any time from and including the date (each, an “Announcement Date”) on which the Company shall issue a press release containing, or shall otherwise publicly announce, its earnings, revenues or other results of
      operations (each, an “Earnings Announcement”) through and including the time that is 24 hours after the time that the Company files (a “Filing Time”) a Quarterly Report on Form 10-Q or an Annual Report on Form 10-K that includes consolidated financial statements as of and for the same period or periods, as the case
      may be, covered by such Earnings Announcement. Provided, however, that the restrictions set forth in clause (i) of this Section 2(h) shall not apply to sales under any plan adopted by the Company under Rule 10b5-1 of the Exchange Act.

    

    

    (i) If the Company wishes to offer, sell or deliver Shares at any time during the period from and including an Announcement Date through
      and including the time that is 24 hours after the corresponding Filing Time, the Company shall (i) prepare and deliver to the Agent (with a copy to counsel to the Agent) a Current Report on Form 8-K which shall include substantially the same
      financial and related information as was set forth in the relevant Earnings Announcement (other than any earnings projections, similar forward-looking data and officers’ quotations) (each, an “Earnings 8-K”), in form and substance reasonably satisfactory to the Agent, (ii) provide the Agent with the officers’ certificate, accountants’ letter and opinions and letters of counsel called for by Sections
      (3)(j), (k) and (l) hereof, respectively, (iii) afford the Agent the opportunity to conduct a due diligence review in accordance with Section 3(n) hereof and (iv) file such Earnings 8-K with the Commission, then the provisions of clause (ii) of
      Section 2(h) shall not be applicable for the period from and after the time at which the foregoing conditions shall have been satisfied (or, if later, the time that is 24 hours after the time that the relevant Earnings Announcement was first publicly
      released) through and including the time that is 24 hours after the Filing Time of the relevant Quarterly Report on Form 10-Q or Annual Report on Form 10-K, as the case may be. For purposes of clarity, the parties hereto agree that (A) the delivery
      of any officers’ certificate, accountants’ letter and opinions and letters of counsel pursuant to this Section 2(i) shall not relieve the Company from any of its obligations under this Agreement with respect to any Quarterly Report on Form 10-Q or
      Annual Report on Form 10-K, as the case may be, including, without limitation, the obligation to deliver officers’ certificates, accountants’ letters and legal opinions and letters as provided in Section 3 hereof and (B) this Section 2(i) shall in no
      way affect or limit the operation of the provisions of clause (i) of Section 2(h), which shall have independent application.

    

    

    (j) At each Applicable Time, Settlement Date, Registration Statement Amendment Date, Company Periodic Report Date, and Company Earnings
      Report Date, the Company shall be deemed to have affirmed each representation and warranty contained in this Agreement. Any obligation of the Agent to use its commercially reasonable efforts to sell the Shares on behalf of the Company as sales agent
      shall be subject to the continuing accuracy of the representations and warranties of the Company herein, to the performance by the Company of its obligations hereunder and to the continuing satisfaction of the additional conditions specified in
      Section 6 of this Agreement.

    

    

    (k) If the exemptive provisions set forth in Rule 101(c)(1) of Regulation M under the 1934 Act are not satisfied with respect to the
      Company or the Shares, the Company shall promptly notify the Agent and future offers and sales of Shares through the Agent on an agented basis under this Equity Offering Sales Agreement shall be suspended until that or other exemptive provisions have
      been satisfied in the judgment of each party.

    

    

    (l) The Agent shall not have any obligation to purchase Shares as principal, whether from the Company or otherwise, unless the Company and
      the Agent agree as set forth below. Shares purchased from the Company by the Agent, individually or in a syndicate, as principal shall be made in accordance with terms agreed upon between the Agent and the Company as evidenced by a Terms Agreement.
      The Agent’s commitment to purchase Shares from the Company as principal shall be deemed to have been made on the basis of the accuracy of the representations and warranties of the Company, and performance by the Company of its covenants and other
      obligations, herein contained and shall be subject to the terms and conditions herein set forth. At the time of each Terms Agreement, the Agent shall specify the requirements, if any, for the officers’ certificate, opinions and letters of counsel and
      accountants’ letter pursuant to Section 3(i), (j) and (k), respectively, hereof. In the event of a conflict between the terms of this Equity Offering Sales Agreement and a Terms Agreement, the terms of such Terms Agreement shall control.

    
      
        

    

    

    

    Section 3. Covenants. The Company agrees with
      the Agent as follows:

    

    

    (a) During any period when the delivery of a prospectus is required in connection with the offering or sale of Shares (whether physically
      or through compliance with Rule 153 or 172, or in lieu thereof, a notice referred to in Rule 173(a) of the 1933 Act Regulations), (i) to make no further amendment or any supplement to the Registration Statement or the Prospectus, other than as a
      result of any filing made under the Exchange Act that is deemed to be incorporated by reference into the Registration Statement or the Prospectus, prior to any Settlement Date without first providing the Agent a reasonable opportunity to review and
      comment on such amendment or supplement, and to advise the Agent, promptly after it receives notice thereof, of the time when any amendment to the Registration Statement has been filed or becomes effective or any amendment or supplement to the
      Prospectus has been filed, (ii) to file promptly all other material required to be filed by the Company with the Commission pursuant to Rule 433(d) of the 1933 Act Regulations, (iii) to file promptly all reports and any definitive proxy or
      information statements required to be filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act, (iv) to advise the Agent, promptly after it receives notice thereof, of the issuance by the Commission of
      any stop order or of any order preventing or suspending the use of the Prospectus or other prospectus in respect of the Shares, of the suspension of the qualification of the Shares for offering or sale in any jurisdiction, of the initiation or
      threatening of any proceeding for any such purpose, or of any request by the Commission for the amending or supplementing of the form of the Registration Statement or the Prospectus or for additional information, and (v) in the event of the issuance
      of any such stop order or of any such order preventing or suspending the use of the Prospectus in respect of the Shares or suspending any such qualification, to promptly use its commercially reasonable efforts to obtain the withdrawal of such order;
      and in the event of any such order, promptly to take such reasonable steps as may be necessary to permit offers and sales of the Shares by the Agent, which may include, without limitation, amending the Registration Statement or filing a new
      registration statement, at the Company’s expense (references herein to the Registration Statement shall include any such amendment or new registration statement).

    

    

    (b) Promptly from time to time (in each case other than during a Suspension Period (as defined in Section 3(q)) to take such action as the
      Agent may reasonably request to qualify the Shares for offering and sale under the securities laws of such United States jurisdictions as the Agent may request and to comply with such laws so as to permit the continuance of sales and dealings therein
      in such jurisdictions for as long as may be necessary to complete the sale of the Shares, provided that in connection therewith the Company shall not be required to qualify as a foreign entity, subject itself to taxation or to file a general consent
      to service of process in any jurisdiction; and to promptly advise the Agent of the receipt by the Company of any notification with respect to the suspension of the qualification of the Shares for offer or sale in any jurisdiction or the initiation or
      threatening of any proceeding for such purpose.

    

    

    (c) During any period when the delivery of a prospectus is required (whether physically or through compliance with Rule 153 or 172, or in
      lieu thereof, a notice referred to in Rule 173(a) of the 1933 Act Regulations) in connection with the offering or sale of Shares, the Company will make available to the Agent, as soon as practicable after the execution of this Agreement, and
      thereafter from time to time furnish to the Agent, copies of the most recent Prospectus in such quantities and at such locations as the Agent may reasonably request for the purposes contemplated by the 1933 Act. During any period when the delivery of
      a prospectus is required (whether physically or through compliance with Rules 153 or 172, or in lieu thereof, a notice referred to in Rule 173(a) of the 1933 Act Regulations) in connection with the offering or sale of Shares, and if at such time any
      event shall have occurred as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of
      the circumstances under which they were made when such Prospectus is delivered, not misleading, or, if for any other reason it shall be necessary during such same period to amend or supplement the Prospectus or to file under the 1934 Act any document
      incorporated by reference in the Prospectus in order to comply with the 1933 Act or the 1934 Act, to notify the Agent and to file such document and to prepare and furnish without charge to the Agent as many written and electronic copies as the Agent
      may from time to time reasonably request of an amended Prospectus or a supplement to the Prospectus which will correct such statement or omission or effect such compliance.

    

    

    (d) To timely file such reports pursuant to the 1934 Act as are necessary in order to make generally available to its securityholders an
      earnings statement of the Company and its subsidiaries in form complying with the provisions of Rule 158 of the 1933 Act Regulations.

    
      
        

    

    

    

    (e) To use the Net Proceeds received by it from the sale of the Shares pursuant to this Agreement and any Terms Agreement in the manner
      specified in the General Disclosure Package and the Prospectus.

    

    

    (f) In connection with the offering and sale of the Shares, the Company will file with the Nasdaq all documents and notices, and make all
      certifications, required by the Nasdaq of companies that have securities that are listed on the Nasdaq and will maintain such listing.

    

    

    (g) To not take, directly or indirectly, any action designed to cause or result in, or that has constituted or might reasonably be expected
      to constitute, under the 1934 Act or otherwise, the stabilization or manipulation of the price of any securities of the Company to facilitate the sale or resale of the Shares.

    

    

    (h) At each Applicable Time, each Settlement Date, each Registration Statement Amendment Date, each Company Earnings Report Date, each
      Company Periodic Report Date and each date on which Shares are delivered to the Agent pursuant to a Terms Agreement (in each case other than during a Suspension Period), the Company shall be deemed to have affirmed each representation, warranty,
      covenant and other agreement contained in this Agreement or any Terms Agreement. In each Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed by the Company in respect of any quarter in which sales of Shares were made by or through the
      Agent under this Agreement or any Terms Agreement (each date on which any such document is filed, and any date on which an amendment to any such document is filed, a “Company

          Periodic Report Date”), or, to the extent required by applicable law and Commission interpretations thereof, in prospectus supplements to be filed by the Company from time to time, the Company shall set forth with regard to such
      quarter or such shorter period determined by the Company, as the case may be, the number of Shares sold through the Agent under this Agreement or any Terms Agreement and the Net Proceeds received by the Company with respect to sales of Shares
      pursuant to this Agreement or any Terms Agreement.

    

    

    (i) Upon execution of this Agreement and promptly after each time the Company: (i) amends or supplements (other than a prospectus
      supplement relating solely to an offering of securities other than the Shares) the Registration Statement or the Prospectus relating to the Shares by means of a post-effective amendment, sticker, or supplement but not by means of incorporation of
      documents by reference into the Registration Statement or the Prospectus relating to the Shares; (ii) files an annual report on Form 10-K under the 1934 Act (including any Form 10-K/A containing amended audited financial information or a material
      amendment to the previously filed Form 10-K); (iii) files its quarterly reports on Form 10-Q under the 1934 Act; or (iv) files a current report on Form 8-K containing amended financial information (other than information “furnished” pursuant to Items
      2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties as discontinued operations in accordance with Statement of Financial Accounting Standards No. 144) under the
      1934 Act (each date of filing of one or more of the documents referred to in clauses (i) through (iv) shall be a “Representation Date”), the Company shall
      furnish the Agent (but in the case of clause (iv) above only if the Agent reasonably determines that the information contained in such Form 8-K is material) the Company will furnish or cause to be furnished to the Agent (with a copy to counsel to the
      Agent) a certificate dated the date of delivery thereof to the Agent (or, in the case of an amendment or supplement to the Registration Statement or the Prospectus (including, without limitation, by the filing of any document under the 1934 Act that
      is incorporated by reference therein), the date of the effectiveness of such amendment to the Registration Statement or the date of filing with the Commission of such supplement or incorporated document, as the case may be), in form and substance
      reasonably satisfactory to the Agent and its counsel, to the effect that the statements contained in the certificate referred to in Section 6(e) of this Agreement which was last furnished to the Agent are true and correct as of the date of such
      certificate as though made at and as of the date of such certificate (except that such statements shall be deemed to relate to the Registration Statement, the General Disclosure Package and the Prospectus as amended and supplemented to the date of
      such certificate) or, in lieu of such certificate, a certificate of the same tenor as the certificate referred to in Section 6(e), but modified as necessary to relate to the Registration Statement, the General Disclosure Package and the Prospectus as
      amended and supplemented to the date of such certificate; provided, however,
      that the delivery requirements of this Section 3(i) shall not be in effect during a Suspension Period and shall be deemed waived for any Representation Date occurring at a time at which no Placement Notice is pending, which waiver shall continue
      until the earlier to occur of the date the Company delivers a Placement Notice hereunder (which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date on which the Company files its annual
      report on Form 10-K. As used in this paragraph, to the extent there shall be an Applicable Time on or following the applicable Representation Date, “promptly” shall be deemed to be on or prior to the next succeeding Applicable Time.

    
      
        

    

    

    

    (j) Upon execution of this Agreement and promptly after each other Representation Date with respect to which the Company is obligated to
      deliver a certificate pursuant to Section 3(i) for which no waiver is applicable , the Company will furnish or cause to be furnished to the Agent (with a copy to counsel to the Agent) the written opinion of counsel to the Company (who shall be
      reasonably acceptable to the Agent), dated the date of delivery thereof to the Agent (or, in the case of an amendment or supplement to the Registration Statement or the Prospectus (including, without limitation, by the filing of any document under
      the 1934 Act that is incorporated by reference therein), the date of the effectiveness of such amendment to the Registration Statement or the date of filing with the Commission of such supplement or incorporated document, as the case may be), in form
      and substance reasonably satisfactory to the Agent and its counsel, of the same tenor as the opinions referred to in Section 6(c) of this Agreement, but modified as necessary to relate to the Registration Statement, the General Disclosure Package and
      the Prospectus as amended and supplemented to the date of such opinion or, in lieu of any such opinion, counsel last furnishing such opinion to the Agent shall furnish the Agent (with a copy to counsel for the Agent) with a letter substantially to
      the effect that the Agent may rely on such counsel’s last opinion to the same extent as though each were dated the date of such letter authorizing reliance (except that statements in such last opinion shall be deemed to relate to the Registration
      Statement, the General Disclosure Package and Prospectus as amended and supplemented to the date of such letter authorizing reliance); provided, however, that the delivery requirements of this Section 3(j) shall not be in effect during a Suspension Period. As used in this paragraph, to the extent there
      shall be an Applicable Time on or following the applicable Representation Date, “promptly” shall be deemed to be on or prior to the next succeeding Applicable Time.

    

    

    (k) Upon execution of this Agreement and promptly after each other Representation Date with respect to which the Company is obligated to
      deliver a certificate pursuant to Section 3(i) for which no waiver is applicable, the Company will cause RSM, or other independent accountants reasonably satisfactory to the Agent, to furnish to the Agent a letter, dated the date of effectiveness of
      such amendment or the date of filing of such supplement or other document with the Commission, as the case may be, in form reasonably satisfactory to the Agent and its counsel, of the same tenor as the letter referred to in Section 6(d) hereof, but
      modified as necessary to relate to the Registration Statement, the General Disclosure Package and the Prospectus, as amended and supplemented, or to the document incorporated by reference into the Prospectus, to the date of such letter; provided, however, that the delivery requirements of this Section 3(k)
      shall not be in effect during a Suspension Period. As used in this paragraph, to the extent there shall be an Applicable Time on or following the applicable Representation Date, “promptly” shall be deemed to be on or prior to the next succeeding
      Applicable Time.

    

    

    (l) The Company consents to the Agent trading in the Company’s Common Stock for the Agent’s own accounts and for the accounts of its
      clients at the same time as sales of Shares occur pursuant to this Agreement or any Terms Agreement.

    

    

    (m) If, to the knowledge of the Company, all filings required by Rule 424 in connection with this offering shall not have been made or the
      representations contained in Section 1(a) shall not be true and correct on the applicable Settlement Date, the Company will offer to any person who has agreed to purchase Shares from the Company as the result of an offer to purchase solicited by the
      Agent the right to refuse to purchase and pay for such Shares.

    

    

    (n) The Company will cooperate timely with any reasonable due diligence review conducted by the Agent or its counsel from time to time in
      connection with the transactions contemplated hereby or in any Terms Agreement, including, without limitation, and upon reasonable notice providing information and making available documents and appropriate officers, during regular business hours and
      at the Company’s principal offices, as the Agent may reasonably request.

    
      
        

    

    

    

    (o) Other than during a Suspension Period, the Company will not, without (i) giving the Agent at least five  days’ prior written notice
      specifying the nature of the proposed sale and the date of such proposed sale and (ii) the Agent suspending activity under this program for such period of time as requested by the Company or as deemed appropriate by the Agent in light of the proposed
      sale, (A) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of, lend or otherwise transfer or
      dispose of, directly or indirectly, any shares of Common Stock or securities convertible into or exchangeable or exercisable for or repayable with Common Stock, or file any registration statement under the 1933 Act with respect to any of the
      foregoing (other than a shelf registration statement under Rule 415 of the 1933 Act Regulations, a registration statement on Form S-8 or post-effective amendment to the Registration Statement) or (B) enter into any swap or other agreement or any
      transaction that transfers in whole or in part, directly or indirectly, any of the economic consequence of ownership of the Common Stock, or any securities convertible into or exchangeable or exercisable for or repayable with Common Stock, whether
      any such swap or transaction described in clause (A) or (B) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise. The foregoing sentence shall not apply to (i) the Shares to be offered and sold through the
      Agent pursuant to this Agreement or any Terms Agreement, (ii) Common Stock issued pursuant to the Company’s dividend reinvestment plan, stock purchase plans or employee compensation plans, as the same may be amended or replaced from time to time,
      (iii) equity incentive awards approved by the board of directors of the Company or the compensation committee thereof or the issuance of Common Stock upon exercise thereof, or (iv) sales or offers of shares of Common Stock or securities exchangeable
      for or convertible into shares of Common Stock in private placement transactions to sellers relating to acquisition of real property or interests therein, including mortgage or leasehold interests, or in conjunction with any joint venture
      transaction, made to any seller of such real property or such joint venture interest (and the filing of any prospectus supplement related to the resale of such shares of Common Stock as may be required by such seller).

    

    

    (p) If, immediately prior to the third anniversary (the “Renewal

          Deadline”) of the initial effective date of the Registration Statement, any of the Shares remain unsold, the Company will, prior to the Renewal Deadline, file, if it has not already done so and is eligible to do so, a new shelf
      registration statement or, if applicable, an automatic shelf registration statement relating to the Shares, in a form satisfactory to the Agent, and will use its best efforts to cause such registration statement, if it is not an automatic shelf
      registration statement, to be declared effective within 60 days after the Renewal Deadline. The Company will take all other action necessary or appropriate to permit the issuance and sale of the Shares to continue as contemplated in the expired
      registration statement relating to the Shares. References herein to the Registration Statement shall include such new shelf registration statement or such new automatic shelf registration statement, as the case may be.

    

    

    (q) The Company may notify the Agent by telephone (confirmed promptly by e-mail), or by such other method as the Company and the Agent
      shall mutually agree in writing, at any time until 5:00 p.m., New York City time, on the second business day preceding any Representation Date that it does not intend to sell Shares under this Agreement for the period commencing on such
      Representation Date and continuing until the second Trading Day after the earlier of (i) the date the Company instructs the Agent to sell Shares under this Agreement and (ii) the date the Company notifies the Agent that it is revoking its prior
      notice to the Agent that it does not intend to sell Shares under this Agreement (a “Suspension Period”). If the Company shall have provided such notice, the
      requirements to provide certificates pursuant to Section 3(i) hereunder, legal opinions pursuant to Section 3(j) hereunder, and letters from independent accountants pursuant to Section 3(k) hereunder shall be waived during such Suspension Period.
      Notwithstanding the foregoing, during a Suspension Period or subsequent to the completion of a Suspension Period, as applicable, the Agent shall not be obligated to sell any Shares pursuant to the Company’s instruction until all documents required by
      each such applicable Section of this Agreement shall have been provided to the Agent and the Company shall have provided the Agent with a customary due diligence update.

    

    

    Section 4. Free Writing Prospectus.

    

    

    (a) (i) The Company represents and agrees that without the prior consent of the Agent, it has not made and will not make any offer relating
      to the Shares that would constitute a “free writing prospectus” as defined in Rule 405 of the 1933 Act Regulations; and

    

    

    (ii) the Agent represents and agrees that, without the prior consent of the Company it has not made and will not make
      any offer relating to the Shares that would constitute a free writing prospectus required to be filed with the Commission.

    

    

    (b) The Company has complied and will comply with the requirements of Rule 433 of the 1933 Act Regulations applicable to any Issuer Free
      Writing Prospectus (including any free writing prospectus identified in Section 4(a) hereof), including timely filing with the Commission or retention where required and legending.

    
      
        

    

    

    

    Section 5. Payment of Expenses. The Company
      covenants and agrees with the Agent that the Company will pay or cause to be paid all expenses, including the following: (i) the fees, disbursements and expenses of the Company’s counsel and accountants in connection with the registration of the
      Shares under the 1933 Act and all other expenses in connection with the preparation, printing and filing of the Registration Statement, the Base Prospectus, the Prospectus Supplement, any Issuer Free Writing Prospectus and the Prospectus and
      amendments and supplements thereto and the mailing and delivering of copies thereof to the Agent; (ii) the cost of printing or producing this Agreement and any Terms Agreement, any Blue Sky and Legal Investment Memoranda, closing documents (including
      any compilations thereof) and any other documents in connection with the offering, purchase, sale and delivery of the Shares; (iii) all expenses in connection with the qualification of the Shares for offering and sale under state securities laws as
      provided in Section 3(b) hereof, including the reasonable fees and disbursements of counsel for the Agent in connection with such qualification and in connection with the Blue Sky and Legal Investment Surveys; (iv) any filing fees incident to, and
      the reasonable fees and disbursements of counsel for the Agent in connection with, any required review by FINRA of the terms of the sale of the Shares; (v) all fees and expenses in connection with listing the Shares on the Nasdaq; (vi) the cost of
      preparing the Shares; (vii) the costs and charges of any transfer agent or registrar or any dividend distribution agent; (viii) reimbursement of the reasonable out-of-pocket expenses of the Agent including the reasonable fees and disbursements of
      counsel, incurred in connection with the transactions contemplated by this Agreement; provided, however, that such expenses under this Section 5 shall not exceed (A) an aggregate of $75,000 in connection with the execution of this Agreement and (B) $20,000 for each required  bring down as necessary thereafter
      under Section 3(i); and (ix) all other costs and expenses incident to the performance of its obligations hereunder which are not otherwise specifically provided for in this Section.

    

    

    Section 6. Conditions of Agent’s Obligations.
      The obligations of the Agent hereunder shall be subject, in its discretion, to the condition that all representations and warranties and other statements of the Company herein or in certificates of any officer of the Company delivered pursuant to the
      provisions hereof are true and correct as of the time of the execution of this Agreement, the date of any executed Terms Agreement and as of each Representation Date, Applicable Time and Settlement Date, to the condition that the Company shall have
      performed all of its obligations hereunder theretofore to be performed, and the following additional conditions:

    

    

    (a) The Prospectus Supplement shall have been filed with the Commission pursuant to Rule 424(b) of the 1933 Act Regulations on or prior to
      the date hereof and in accordance with Section 3(a) hereof, any other material required to be filed by the Company pursuant to Rule 433(d) of the 1933 Act Regulations shall have been filed with the Commission within the applicable time periods
      prescribed for such filings by Rule 433; no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have been issued and no proceeding for that purpose shall have been initiated or threatened by the Commission;
      no stop order suspending or preventing the use of the Prospectus or any Issuer Free Writing Prospectus shall have been initiated or threatened by the Commission; and all requests for additional information on the part of the Commission shall have
      been complied with to the reasonable satisfaction of the Agent.

    

    

    (b) On every date specified in Section 3(j) hereof, Paul Hastings, LLP, counsel for the Agent, shall have furnished to the Agent such
      written opinion or opinions, dated as of such date, with respect to such matters as the Agent may reasonably request, and such counsel shall have received such papers and information as they may reasonably request to enable them to pass upon such
      matters.

    

    

    (c) On every date specified in Section 3(j) hereof, Dorsey & Whitney LLP, counsel for the Company, shall have furnished to the Agent
      written opinions, dated as of such date, substantially in the forms attached hereto as Exhibits A-1 and A-2, respectively, and to such further effect as counsel to the Agent may reasonably request.

    

    

    (d) At the dates specified in Section 3(k) hereof, RSM, and any other independent accountants who have certified the financial statements
      included or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus shall have furnished to the Agent a letter or letters dated as of the date of delivery thereof and addressed to the Agent in form
      and substance reasonably satisfactory to the Agent and its counsel, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements included or
      incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus.

    
      
        

    

    

    

    (e) On each date specified in Section 3(i) hereof, the Agent shall have received a certificate of the President and Chief Executive Officer
      and the Senior Vice President and Chief Financial Officer of the Company, dated as of the date thereof, to the effect that (A) the Registration Statement has been declared effective under the 1933 Act and no stop order suspending the effectiveness of
      the Registration Statement or no order preventing or suspending the use of any Issuer Free Writing Prospectus or the Prospectus has been issued, and no proceedings for such purpose or pursuant to Section 8A of the 1933 Act have been taken or are, to
      his or her knowledge, contemplated or threatened by the Commission; (B) there has been no Material Adverse Effect, or any development or occurrence that would reasonably be expected to have a Material Adverse Effect, since the respective dates as of
      which information is given in the Registration Statement, the General Disclosure Package and the Prospectus as each is then amended or supplemented, (C) the representations and warranties of the Company contained herein are true and correct as of
      such date and (D) the Company has complied with all of the agreements entered into in connection with the transactions contemplated herein and in any Terms Agreement and satisfied all conditions on its part to be performed or satisfied.

    

    

    (f) Since the date of the latest audited financial statements then included or incorporated by reference in the Registration Statement, the
      General Disclosure Package and the Prospectus, no Material Adverse Effect shall have occurred.

    

    

    (g) The Company shall have complied with the provisions of Section 3(c) hereof with respect to the timely furnishing of prospectuses.

    

    

    (h) On such dates as reasonably requested by the Agent, the Company shall have conducted due diligence sessions, in form and substance
      reasonably satisfactory to the Agent.

    

    

    (i) All filings with the Commission required by Rule 424 of the 1933 Act Regulations to have been filed by each Applicable Time or related
      Settlement Date shall have been made within the applicable time period prescribed for such filing by Rule 424 (without reliance on Rule 424(b)(8)).

    

    

    (j) [Reserved]

    

    

    (k) Counsel for the Agent shall have been furnished with such documents and opinions as they may reasonably require in order to evidence
      the accuracy of any of the representations or warranties, or the fulfillment of any of the conditions, contained herein or in any applicable Terms Agreement; and all proceedings taken by the Company in connection with the issuance and sale of the
      Shares as contemplated herein or in any applicable Terms Agreement and in connection with the other transactions contemplated by this Agreement or any such Terms Agreement shall be reasonably satisfactory in form and substance to the Agent and
      counsel for the Agent.

    

    

    Section 7. Indemnification.

    

    

    (a) The Company agrees:

    

    

    (1) to indemnify and hold harmless the Agent and its affiliates and each person, if any, who controls the Agent within
      the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any losses, claims, damages or liabilities to which the Agent or its affiliates or any such controlling person may become subject under the 1933 Act or otherwise,
      insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement,
      any Issuer Free Writing Prospectus, the Prospectus or any amendment or supplement thereto, (ii) with respect to the Registration Statement or any amendment or supplement thereto, the omission or alleged omission to state therein a material fact
      required to be stated therein or necessary to make the statements therein not misleading or (iii) with respect to any Issuer Free Writing Prospectus, the Prospectus or any amendment or supplement thereto, the omission or alleged omission to state
      therein a material fact necessary to make the statements therein not misleading in the light of the circumstances under which they were made; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue
      statement or alleged untrue statement, or omission or alleged omission made in the Registration Statement, any Issuer Free Writing Prospectus, the Prospectus, or such amendment or supplement, in reliance upon and in conformity with written
      information furnished to the Company by or through the Agent specifically for use therein; and

    
      
        

    

    

    

    (2) to reimburse the Agent, the Agent’s affiliates, and each such controlling person upon demand for any legal or other
      out-of-pocket expenses reasonably incurred by the Agent or its affiliates or such controlling person in connection with investigating or defending any such loss, claim, damage, liability, action or proceeding or in responding to a subpoena or
      governmental inquiry related to the offering of the Shares, whether or not the Agent, its affiliates or controlling person is a party to any action or proceeding. In the event that it is finally judicially determined that the Agent was not entitled
      to receive payments for legal and other expenses pursuant to this subparagraph, the Agent will promptly return all sums that had been advanced pursuant hereto. This indemnity agreement will be in addition to any liability which the Company may
      otherwise have.

    

    

    (b) The Agent, severally and not jointly, will indemnify and hold harmless the Company, its affiliates, each of its directors, each of its
      officers who have signed the Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any losses, claims, damages or liabilities to which the
      Company or any such director, officer, or controlling person may become subject under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of or are based upon (i)
      any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement, any Issuer Free Writing Prospectus, the Prospectus or any amendment or supplement thereto, (ii) with respect to the Registration Statement
      or any amendment or supplement thereto, the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or (iii) with respect to any Issuer Free Writing
      Prospectus, the Prospectus or any amendment or supplement thereto, the omission or alleged omission to state therein a material fact necessary to make the statements therein not misleading in the light of the circumstances under which they were made;
      and will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer or controlling person in connection with investigating or defending any such loss, claim, damage, liability, action or proceeding; provided, however, that the Agent will be liable in each case to the
      extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission has been made in the Registration Statement, any Issuer Free Writing Prospectus, the Prospectus or such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by or through the Agent specifically for use therein. This
      indemnity agreement will be in addition to any liability which the Agent may otherwise have.

    

    

    (c) In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which
      indemnity may be sought pursuant to this Section 7, such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be
      sought (the “indemnifying party”) in writing. No indemnification provided for in Section 7(a) or (b) shall be available to any party who shall fail to give
      notice as provided in this Section 7(c) if the party to whom notice was not given was unaware of the proceeding to which such notice would have related and was materially prejudiced by the failure to give such notice, but the failure to give such
      notice shall not relieve the indemnifying party or parties from any liability which it or they may have to the indemnified party for contribution or otherwise than on account of the provisions of Section 7(a) or (b). In case any such proceeding shall
      be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other
      indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party and shall pay as incurred the fees and disbursements of such counsel related to such proceeding. In any such
      proceeding, any indemnified party shall have the right to retain its own counsel at its own expense. Notwithstanding the foregoing, the indemnifying party shall pay as incurred (or within 30 days of presentation) the fees and expenses of the counsel
      retained by the indemnified party in the event (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel, (ii) the named parties to any such proceeding (including any impleaded parties) include
      both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them or (iii) the indemnifying party shall have failed to
      assume the defense and employ counsel acceptable to the indemnified party within a reasonable period of time after notice of commencement of the action. Such firm shall be designated in writing by the Agent in the case of parties indemnified pursuant
      to Section 7(a) and by the Company in the case of parties indemnified pursuant to Section 7(b). The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent but if settled with such consent or
      if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. In addition, the indemnifying party will not, without
      the prior written consent of the indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding of which indemnification may be sought hereunder (whether or not any indemnified
      party is an actual or potential party to such claim, action or proceeding) unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such claim, action or
      proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party.

    
      
        

    

    

    

    (d) To the extent the indemnification provided for in this Section 7 is unavailable to or insufficient to hold harmless an indemnified
      party under Section 7(a) or (b) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such
      indemnified party as a result of such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Agent on
      the other from the offering of the Shares. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law then each indemnifying party shall contribute to such amount paid or payable by such indemnified
      party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Agent on the other in connection with the statements or omissions which resulted in such losses,
      claims, damages or liabilities (or actions or proceedings in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Agent on the other shall be deemed to be in
      the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total commissions received by the Agent. The relative fault shall be determined by reference to, among other things,
      whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or the Agent on the other and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such statement or omission.

    

    

    The Company and the Agent agrees that it would not be just and equitable if contributions pursuant to this Section 7(d) 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 in this Section 7(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages
      or liabilities (or actions or proceedings in respect thereof) referred to above in this Section 7(d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending
      any such action or claim. Notwithstanding the provisions of this subsection (d), (i) the Agent shall not be required to contribute any amount in excess of the amount by which the total price at which the Shares sold by it to the public were offered
      to the public exceeds the amount of any damages which the Agent has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission and (ii) no person guilty of fraudulent misrepresentation (within
      the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

    

    

    (e) In any proceeding relating to the Registration Statement, any Issuer Free Writing Prospectus, the Prospectus or any supplement or
      amendment thereto, each party against whom contribution may be sought under this Section 7 hereby consents to the jurisdiction of any court having jurisdiction over any other contributing party, agrees that process issuing from such court may be
      served upon it by any other contributing party and consents to the service of such process and agrees that any other contributing party may join it as an additional defendant in any such proceeding in which such other contributing party is a party.

    

    

    (f) Any losses, claims, damages, liabilities or expenses for which an indemnified party is entitled to indemnification or contribution
      under this Section 7 shall be paid by the indemnifying party to the indemnified party as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 7 and the representations
      and warranties of the Company set forth in this Agreement shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of the Agent, the directors or officers or any person controlling the Agent, the
      Company, its directors or officers or any persons controlling the Company, (ii) acceptance of any Shares and payment therefor hereunder, and (iii) any termination of this Agreement or any Terms Agreement. A successor to the Agent, its directors or
      officers or any person controlling the Agent, or to the Company, its directors or officers, or any person controlling the Company, shall be entitled to the benefits of the indemnity, contribution and reimbursement agreements contained in this Section
      7.

    
      
        

    

    

    

    Section 8. Representations, Warranties and Agreements to
          Survive Delivery. The respective indemnities, agreements, representations, warranties and other statements of the Company and the Agent, as set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this
      Agreement, shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of the Agent or any controlling person of the Agent, or the Company, or any officer or director of the
      Company or controlling person of the Company, and shall survive delivery of and payment for the Shares.

    

    

    Section 9. No Advisory or Fiduciary Relationship.
      The Company acknowledges and agrees that (i) the Agent is acting solely in the capacity of an arm’s length contractual counterparty to the Company with respect to the offering of Shares contemplated hereby (including in connection with determining
      the terms of such offering) and (ii) the Agent has not assumed an advisory or fiduciary responsibility in favor of the Company with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether the Agent has
      advised or is currently advising the Company on other matters) or any other obligation to the Company except the obligations expressly set forth in this Agreement and any Terms Agreement, (ii) the public offering price of the Shares sold pursuant to
      this Agreement was not established by the Agent, (iii) it is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions contemplated by this Agreement, (iv) the Company has consulted its
      own legal and financial advisors to the extent it deemed appropriate and that the Agent has not provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement, (v) the Company is aware that
      the Agent and its respective affiliates are engaged in a broad range of transactions which may involve interest that differ from those of the Company and the Agent has no obligation to disclose such interests and transactions to the Company by virtue
      of any fiduciary, advisory or agency relationship or otherwise and (vi) it waives, to the fullest extent permitted by law, any claims it may have against the Agent for breach of fiduciary duty or alleged breach of fiduciary duty and agrees the Agent
      shall not have any liability (whether direct or indirect, in contract, tort or otherwise) to it in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on its behalf or in right of it or the Company, employees or
      creditors of the Company. The Company agrees that it will not claim that the Agent has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Company, in connection with such transaction or the process leading
      thereto.

    

    

    Section 10. Termination.

    

    

    (a) The Company shall have the right, by giving written notice as hereinafter specified, to terminate this Agreement in its sole discretion
      at any time. Any such termination shall be without liability of any party to any other party, except that (i) with respect to any pending sale through the Agent for the Company or with respect to any pending sale to the Agent pursuant to a Term
      Agreement or any offering or resale of any Shares purchased or to be purchased by the Agent pursuant to a Terms Agreement, the obligations of the Company, including in respect of compensation of the Agent, shall remain in full force and effect
      notwithstanding such termination; and (ii) the provisions of Section 1, Section 5, Section 7 and Section 8 of this Agreement shall remain in full force and effect notwithstanding such termination.

    

    

    (b) The Agent shall have the right, by giving written notice as hereinafter specified, to terminate this Agreement in its sole discretion
      at any time. Any such termination shall be without liability of any party to any other party except that the provisions of Section 1, Section 5, Section 7 and Section 8 of this Agreement shall remain in full force and effect notwithstanding such
      termination.

    

    

    (c) This Agreement shall remain in full force and effect until and unless terminated pursuant to Section 10(a) or (b) above or otherwise by
      mutual agreement of the parties; provided that any such termination by mutual agreement or pursuant to this clause (c) shall in all cases be deemed to provide
      that Section 1, Section 5, Section 7 and Section 8 of this Agreement shall remain in full force and effect.

    
      
        

    

    

    

    (d) Any termination of this Agreement shall be effective on the date specified in such notice of termination; provided that such termination shall not be effective until the close of business on the date of receipt of such notice by the Agent or the Company, as the case may be. If such
      termination shall occur prior to the Settlement Date for any sale of Shares, such sale shall settle in accordance with the provisions of Section 2(g) hereof.

    

    

    (e) In the case of any purchase by the Agent pursuant to a Terms Agreement, the Agent may terminate this Agreement, at any time at or prior
      to the Settlement Date (i) if there has been, in the judgment of the Agent, since the time of execution of this Agreement or since the respective dates as of which information is given in the Registration Statement, the General Disclosure Package or
      the Prospectus, any Material Adverse Effect, or (ii) if there has occurred any material adverse change in the financial markets in the United States or the international financial markets, any outbreak of hostilities or escalation thereof or other
      calamity or crisis or any change or development involving a prospective change in national or international political, financial or economic conditions, in each case the effect of which is such as to make it, in the judgment of the Agent,
      impracticable or inadvisable to market the Shares or to enforce contracts for the sale of Shares, or (iii) if trading in any securities of the Company has been suspended or materially limited by the Commission or the Nasdaq, or if trading generally
      on the NYSE, the NYSE MKT or the Nasdaq  has been suspended or materially limited, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any of said exchanges or by such system or by order of
      the Commission, FINRA or any other governmental authority, or (iv) a material disruption has occurred in commercial banking or securities settlement or clearance services in the United States, or (v) if a banking moratorium has been declared by
      either federal of New York authorities.

    

    

    Section 11. Notices. All statements, requests,
      notices and agreements hereunder shall be in writing, and if to the Agent shall be delivered or sent by mail, telex or facsimile transmission to:

    

    

    D.A. Davidson & Co.

    8 Third Street North

    Great Falls, MT 59401

    Attention: Equity Syndicate Department

    Fax No.: (406) 791-7357

    

    

    And if to the Company to:

    

    

    CarParts.com, Inc.

    2050 W. 190th Street, Suite 400,

    Torrance, CA 90504

    Attention: CFO

    

    

    Any such statements, requests, notices or agreements shall take effect upon receipt thereof.

    

    

    Section 12. Parties. This Agreement shall be
      binding upon, and inure solely to the benefit of, the Agent and the Company and, to the extent provided in Sections 7 and 8 hereof, the officers and directors of the Company and the Agent and each person who controls the Company or the Agent, and
      their respective heirs, executors, administrators, successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement. No purchaser of Shares through the Agent shall be deemed a successor or assign by
      reason merely of such purchase.

    

    

    Section 13. Time of the Essence. Time shall be
      of the essence of this Agreement. As used herein, the term “business day” shall mean any day when the Commission’s office in Washington, D.C. is open for business.

    

    

    Section 14. Submission to Jurisdiction; Waiver of Jury
          Trial. No proceeding related to this Agreement or any Terms Agreement or any transactions contemplated hereby or thereby may be commenced, prosecuted or continued in any court other than the courts of the State of New York located in
      the City and County of New York or in the United States District Court for the Southern District of New York, which courts shall have jurisdiction over the adjudication of such matters, and the Company consents to the jurisdiction of such courts and
      personal service with respect thereto. The Company waives all right to trial by jury in any proceeding (whether based upon contract, tort or otherwise) in any way arising out of or relating to this Agreement or any Terms Agreement. The Company agrees
      that a final judgment in any such proceeding brought in any such court shall be conclusive and binding upon it and may be enforced in any other courts to whose jurisdiction it is or may be subject, by suit upon such judgment.

    
      
        

    

    

    

    Section 15. Governing Law. THIS AGREEMENT SHALL
      BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS PRINCIPLES OF CONFLICTS OF LAW.

    

    

    Section 16. Counterparts. This Agreement and
      any Terms Agreement may be executed by any one or more of the parties hereto and thereto in any number of counterparts, each of which shall be deemed to be an original, but all such respective counterparts shall together constitute one and the same
      instrument. This Agreement and any Terms Agreement may be delivered by any party by facsimile or other electronic transmission, including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the
      Electronic Signatures and Records Act or other applicable law (e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

    

    

    Section 17. Severability. The invalidity or
      unenforceability of any Section, paragraph or provision of this Agreement or any Terms Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof or thereof, as the case may be. If any Section,
      paragraph or provision of this Agreement or any Terms Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and
      enforceable.

    

    

    If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof,
      whereupon this instrument, along with all counterparts, will become a binding agreement among the Agent and the Company in accordance with its terms.

    

    

    	 	
            Very truly yours,

          
	 	 
	 	
            CarParts.com, Inc.

          
	 	 
	 	
            By:

          	
            /s/ Lev Peker

            

          
	 	 	
            Name: Lev Peker

          
	 	 	
            Title: Chief Executive Officer

            

          

    

    

    
      
        

    

    

    

    Accepted as of the date hereof:

    

    

    D.A. DAVIDSON & CO.

    

    

    	
            By:

          	
            /s/ Frederick D. Johnson

            

          	 
	 	
            Name: Frederick D. Johnson

          	 
	 	
            Title: Managing Director

            

          	 

    

    

    
      
        

    

    Annex 1

    

    

    CarParts.com, Inc.

    

    

    Common Stock

    ($0.001 par value per share)

    

    

    TERMS AGREEMENT

    

    

    [ADDRESS OF AGENT[S]]

    

    

    Ladies and Gentlemen:

    

    

    CarParts.com, Inc., a Delaware corporation (the “Company”),

      proposes, subject to the terms and conditions stated herein and in the Equity Offering Sales Agreement, dated [•], 2021 (the “Sales Agreement”), between the
      Company and D.A. Davidson & Co., to sell and issue to D.A. Davidson & Co. (the “Agent”) the securities specified in the Schedule hereto (the “Purchased Securities”)

      [, and solely for the purpose of covering over-allotments, to grant to the Agent the option to purchase the additional securities specified in the Schedule hereto (the “Additional

          Securities”)]*. Capitalized terms used herein and not defined have the respective meanings ascribed thereto in the Sales Agreement.

    

    

    [The Agent shall have the right to purchase from the Company all or a portion of the Additional Securities as may be necessary to cover
      over-allotments made in connection with the offering of the Purchased Securities, at the same purchase price per share to be paid by the Agent to the Company for the Purchased Securities; provided, that the purchase price payable by the Agent for any Additional Securities shall be reduced by an amount per share equal to any dividends or distributions paid or payable by the Company on the Purchased
      Securities but not payable on such Additional Securities. This option may be exercised by the Agent at any time (but not more than once) on or before the thirtieth day following the date hereof, by written notice to the Company. Such notice shall set
      forth the aggregate number of shares of Additional Securities as to which the option is being exercised, and the date and time when the Additional Securities are to be delivered (such date and time being herein referred to as the “Option Closing Date”); provided, however, that the Option Closing Date shall not be earlier than the Time of Delivery (as set forth in the Schedule hereto) nor earlier than the second business day after the date on which
      the option shall have been exercised nor later than the fifth business day after the date on which the option shall have been exercised. Payment of the purchase price for the Additional Securities shall be made at the Option Closing Date in the same
      manner and at the same office as the payment for the Purchased Securities. For purposes of clarity, the parties hereto agree that any Option Closing Date shall be a “time Shares are delivered to the Agent as principal on a Settlement Date” within the
      meaning of Sections 3(j), (k) and (l) of the Sales Agreement.]*

    

    

    	 	
            *

          	
            Include only if the Agent has an over-allotment option.

          

    

    

    Each of the provisions of the Sales Agreement not specifically related to the solicitation by the Agent, as agent of the Company, of offers
      to purchase securities is incorporated herein by reference in its entirety, and shall be deemed to be part of this Terms Agreement to the same extent as if such provisions had been set forth in full herein. Each of the representations and warranties
      set forth therein shall be deemed to have been made at and as of the date of this Terms Agreement [and] [,] the Applicable Time [and any Option Closing Date]*, except that each representation and warranty in Section 1 of the Sales
      Agreement which makes reference to the Prospectus (as therein defined) shall be deemed to be a representation and warranty as of the date of the Sales Agreement in relation to the Prospectus, and also a representation and warranty as of the date of
      this Terms Agreement [and] [,] the Settlement Date [and any Option Closing Date]* in relation to the Prospectus as amended and supplemented to relate to the Purchased Securities.

    

    

    An amendment to the Registration Statement (as defined in the Sales Agreement), or a supplement to the Prospectus, as the case may be,
      relating to the Purchased Securities [and the Additional Securities]*, in the form heretofore delivered to the Agent is now proposed to be filed with the Securities and Exchange Commission.

    
      
        

    

    

    

    Subject to the terms and conditions set forth herein and in the Sales Agreement which are incorporated herein by reference, the Company
      agrees to issue and sell to the Agent and the latter agrees to purchase from the Company the number of shares of the Purchased Securities at the time and place and at the purchase price set forth in the Schedule hereto.

    

    

    If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof,
      whereupon this instrument, along with all counterparts, will become a binding agreement between the Agent and the Company in accordance with its terms.

    

    

    THIS TERMS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

    

    

    	
            *

          	
            Include only if the Agent has an over-allotment option.

          

    
      
        

    

    

    

    	 	
            CARPARTS.COM, INC.

          
	 	 
	 	
            By:

          	 
	 	 	
            Name:

          
	 	 	
            Title:

          

    

    

    Accepted as of the date hereof:

    

    

    D.A. DAVIDSON & CO

    

    

    	
            By:

          	 	 
	 	
            Name:

          	 
	 	
            Title:

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