Exhibit 10.1 


 


ASSET
PURCHASE AGREEMENT


 


between


 


NEIGHBORHOOD
FUEL, INC.


 


and


 


NEIGHBORHOOD
FUEL HOLDINGS, LLC.


 


dated
as of


 


February
__, 2020


 




    	 	 	 



     


    

 


ASSET
PURCHASE AGREEMENT


 


This
Asset Purchase Agreement (this “Agreement”), dated as of February 2020, is entered into between Neighborhood
Fuel, Inc., a Delaware corporation (“Seller”) and Neighborhood Fuel Holdings, LLC., a Nevada limited liability
Company (“Buyer”) and solely for purposes of Section 1.04 hereof, EzFill Holdings, Inc. (the “Company”).


 


Recitals


 


WHEREAS,
Seller is engaged in the business of mobile gas delivery (the “Business”);


 


WHEREAS,
Seller wishes to sell and assign to Buyer, and Buyer wishes to purchase and assume from Seller, substantially all the assets of
the Business, subject to the terms and conditions set forth herein; and


 


NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:


 


ARTICLE
I

Purchase and Sale


 


Section
1.01 Purchase and Sale of Assets. Subject
to the terms and conditions set forth herein, at the Closing, Seller shall sell, assign, transfer, convey and deliver to Buyer,
and Buyer shall purchase from Seller, free and clear of any encumbrances, all of Seller’s right, title and interest in,
to and under all of the assets, properties and rights of every kind and nature, whether real, personal or mixed, tangible or intangible
(including goodwill), wherever located and whether now existing or hereafter acquired (other than the Excluded Assets), which
relate to, or are used or held for use in connection with, the Business (collectively, the “Purchased Assets”),
including, without limitation, the following:


 


(a)
cash and cash equivalents;


 


(b)
all accounts or notes receivable held by Seller, and any security, claim, remedy or other right related to any of the foregoing
(“Accounts Receivable”);


 


(c)
all contracts, including Intellectual Property Agreements (the “Assigned Contracts”),, set forth on Section
1.01(c) of the disclosure schedules delivered by Seller and Buyer concurrently with the execution and delivery of this Agreement
(the “Disclosure Schedule”);


 


(d)
all Intellectual Property that is owned by Seller or used or held for use in the conduct of the Business as currently conducted
set forth on Section 1.01(d) of the Disclosure Schedule (the “Intellectual Property Assets”);


 


(e)
all furniture, fixtures, equipment, machinery, tools, vehicles, office equipment, supplies, computers, telephones and other tangible
personal property set forth in Section 1.01(e) of the Disclosure Schedule (the “Tangible Personal Property”);


 




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(f)
all permits, including environmental permits, which are held by Seller and required for the conduct of the Business as currently
conducted or for the ownership and use of the Purchased Assets, including, without limitation, those listed on the Disclosure
Schedule delivered by Seller and Buyer concurrently with the execution and delivery of this Agreement;


 


(g)
all of Seller’s rights under warranties, indemnities and all similar rights against third parties to the extent related
to any Purchased Assets;


 


(h)
originals, or where not available, copies, of all books and records, including, but not limited to, books of account, ledgers
and general, financial and accounting records, machinery and equipment maintenance files, customer lists, customer purchasing
histories, price lists, distribution lists, supplier lists, production data, quality control records and procedures, customer
complaints and inquiry files, research and development files, records and data (including all correspondence with any Governmental
Authority), sales material and records (including pricing history, total sales, terms and conditions of sale, sales and pricing
policies and practices), strategic plans, internal financial statements, marketing and promotional surveys, material and research
and files relating to the Intellectual Property Assets and the Intellectual Property Agreements (“Books and Records”);
and


 


(i)
all goodwill and the going concern value of the Business.


 


Section
1.02 Excluded Assets. Notwithstanding the
foregoing, the Purchased Assets shall not include the following assets (collectively, the “Excluded Assets”):


 


(a)
Contracts, including Intellectual Property Agreements, that are not Assigned Contracts;


 


(b)
the corporate seals, organizational documents, minute books, stock books, Tax Returns, books of account or other records having
to do with the corporate organization of Seller; and


 


(c)
the assets, properties and rights specifically set forth on Section 1.02 of (c) the Disclosure Schedule.


 


Section
1.03 No Liabilities; Excluded Liabilities. Buyer
shall not assume and shall not be responsible to pay, perform or discharge any Liabilities (as defined below) of Seller or any
of its Affiliates (as defined below)of any kind or nature whatsoever (the “Excluded Liabilities”). Seller shall,
and shall cause each of its affiliates to, pay and satisfy in due course all Excluded Liabilities which they are obligated to
pay and satisfy. Without limiting the generality of the foregoing, the Excluded Liabilities shall include, but not be limited
to, the following:


 


(a)
any Liabilities of Seller arising or incurred in connection with the negotiation, preparation, investigation and performance of
this Agreement, the Ancillary Documents and the transactions contemplated hereby and thereby, including, without limitation, fees
and expenses of counsel, accountants, consultants, advisers and others;


 




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(b)
any Liability for (i) taxes of Seller (or any stockholder or Affiliate of Seller) or relating to the Business or the Purchased
Assets for any tax period ending before the Closing Date and with respect to any taxable period beginning before and ending after
the Closing Date, the portion of such tax period ending on and including the Closing Date (the “Pre-Closing Tax Period”);
(ii) taxes that arise out of the consummation of the transactions contemplated hereby or that are the responsibility of Seller;
or (iii) other taxes of Seller (or any stockholder or affiliate of Seller) of any kind or description (including any liability
for Taxes of Seller (or any stockholder or affiliate of Seller) that becomes a liability of Buyer under any common law doctrine
of de facto merger or transferee or successor liability or otherwise by operation of contract or Law);


 


(c)
any liabilities in respect of any pending or threatened action arising out of, relating to or otherwise in respect of the operation
of the Business or the Purchased Assets to the extent such action relates to such operation on or prior to the Closing Date;


 


(d)
any Liabilities of Seller for any present or former employees, officers, directors, retirees, independent contractors or consultants
of Seller, including, without limitation, any liabilities associated with any claims for wages or other benefits, bonuses, accrued
vacation, workers’ compensation, severance, retention, termination or other payments;


 


(e)
any environmental claims, or liabilities under environmental laws, to the extent arising out of or relating to facts, circumstances
or conditions existing on or prior to the Closing or otherwise to the extent arising out of any actions or omissions of Seller;


 


(f)
any liabilities to indemnify, reimburse or advance amounts to any present or former officer, director, employee or agent of Seller
(including with respect to any breach of fiduciary obligations by same);


 


(g)
any Liabilities associated with debt, loans or credit facilities of Seller and/or the Business owing to financial institutions;
and


 


(h)
any Liabilities arising out of, in respect of or in connection with the failure by Seller or any of its affiliates to comply with
any law or governmental order.


 


Notwithstanding
the foregoing, the parties agree that the liens imposed by the State of Florida against the Seller and the Purchased Assets acquired
hereunder shall be the sole responsibility of Seller and in the event Buyer’s title to Purchased Assets is affected by such
liens, Buyer shall have the right to satisfy the liens by withholding such portion of the Remainder Purchase Price sufficient
to satisfy such outstanding payments. In addition, the parties agree that in the event Buyer or its Affiliates are named or made
a party to any lawsuits arising out or relating to the Purchased Assets prior to the Closing, Buyer shall have the right to satisfy
any such cost, claims arising in respect thereof by withholding a portion of the Remainder Purchase Price.


 


As
used herein, Affiliate of a person means any other person that directly or indirectly, through
one or more intermediaries, controls, is controlled by, or is under common control with, such person. The term “control”
(including the terms “controlled by” and “under common control with”) means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership
of voting securities, by contract or otherwise.


 




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As
used herein, Liabilities means liabilities, obligations or commitments of any nature whatsoever, asserted or unasserted, known
or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise.


 


Section
1.04 Purchase Price. The aggregate purchase price for the Purchased Assets shall
be such number of shares of common stock par value $0.0001 per share of the Company that shall equal to $750,000 (the “Shares”)
subject to adjustment as set forth herein (the “Purchase Price”). The Shares shall be valued based upon the
valuation of the Company as of the date of the consummation of an initial public offering of the Company’s common stock
(the “IPO”). Buyer understands and accepts that the Company contemplates an IPO valuation of $35,000,000 (the
“Target Valuation”). At the Closing, the Company shall issue to Seller such number of shares that shall constitute
50% of the Purchase Price based upon the Target Valuation (the “Closing Purchase Price”) with the remainder
of the Purchase Price, subject to adjustment as set forth herein, issuable at the closing of the Company’s IPO (the “Remainder
Purchase Price”). The parties agree that in the event the IPO is not consummated on or before March 1, 2022, Seller
shall receive the remainder of the Purchase Price, subject to adjustment as set forth herein, calculated based upon the Target
Valuation.


 


Section
1.05 Allocation of Purchase Price. Seller
and Buyer agree to allocate the Purchase Price among the Purchased Assets for all purposes (including tax and financial accounting).
Buyer and Seller shall file all tax returns (including amended returns and claims for refund) and information reports in a manner
consistent with such allocation.


 


Section
1.06 Withholding Tax. Buyer shall be entitled
to deduct and withhold from the Purchase Price all taxes that Buyer may be required to deduct and withhold under any provision
of Tax Law. All such withheld amounts shall be treated as delivered to Seller hereunder.


 


Section
1.07 Third Party Consents. To the extent that
Seller’s rights under any contract or permit constituting a Purchased Asset, or any other Purchased Asset, may not be assigned
to Buyer without the consent of another Person which has not been obtained, this Agreement shall not constitute an agreement to
assign the same if an attempted assignment would constitute a breach thereof or be unlawful, and Seller, at its expense, shall
use its commercially reasonable efforts to obtain any such required consent(s) as promptly as possible. If any such consent shall
not be obtained or if any attempted assignment would be ineffective or would impair Buyer’s rights under the Purchased Asset
in question so that Buyer would not in effect acquire the benefit of all such rights, Seller, to the reasonable extent permitted
by law and the Purchased Asset, shall act after the Closing as Buyer’s agent in order to obtain for it the benefits thereunder
and shall cooperate, to the extent permitted by Law and the Purchased Asset, with Buyer in any other reasonable arrangement designed
to provide such benefits to Buyer. Notwithstanding any provision in this Section 1.07
to the contrary, Buyer shall not be deemed to have waived its rights under Section 6.02(d)
hereof unless and until Buyer either provides written waivers thereof or elects to proceed to consummate the transactions
contemplated by this Agreement at Closing.


 




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ARTICLE
II

Closing


 


Section
2.01 Closing. Subject to the terms and conditions
of this Agreement, the consummation of the transactions contemplated by this Agreement (the “Closing”) shall
take place at the offices of Sichenzia Ross Ference LLP or remotely by exchange of documents and signatures (or their electronic
counterparts), at 4:00 p.m., Eastern time, on the Business Day after all of the conditions to Closing set forth in ARTICLE
VI are either satisfied or waived (other than conditions which, by their nature, are to be satisfied on the Closing Date),
or at such other time, date or place as Seller and Buyer may mutually agree upon in writing. The date on which the Closing is
to occur is herein referred to as the “Closing Date”.


 


Section
2.02 Closing Deliverables.


 


(a)
At the Closing, Seller shall deliver to Buyer the following:


 


(i)
a bill of sale, in form and substance satisfactory to Buyer (the “Bill of Sale”) and duly executed by Seller,
transferring the tangible personal property included in the Purchased Assets to Buyer;


 


(ii)
an assignment and assumption agreement, in form and substance satisfactory to Buyer (the “Assignment and Assumption Agreement”)
and duly executed by Seller, effecting the assignment to and assumption by Buyer of the Purchased Assets and the Assumed Liabilities;


 


(iii)
an assignment in form and substance satisfactory to Buyer (the “Intellectual Property Assignments” and together
with the Bill of Sale and Assignment and Assumption Agreement, the “Ancillary Documents”) and duly executed
by Seller, transferring all of Seller’s right, title and interest in and to the Intellectual Property Assets to Buyer;


 


(iv)
copies of all consents, approvals, waivers and authorizations referred to in the Disclosure Schedule;


 


(v)
a certificate of the Secretary or Assistant Secretary (or equivalent officer) of Seller certifying as to (A) the resolutions of
the board of directors of Seller, duly adopted and in effect, which authorize the execution, delivery and performance of this
Agreement and the transactions contemplated hereby; and (B) the names and signatures of the officers of Seller authorized to sign
this Agreement and the documents to be delivered hereunder;


 


(vi)
such other customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory
to Buyer, as may be required to give effect to this Agreement; and


 




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(b)
At the Closing, Buyer shall deliver to Seller the following:


 


(i)
the Purchase Price as set forth in Section 1.07;


 


(ii)
the Assignment and Assumption Agreement duly executed by Buyer; and


 


(iii)
a certificate of the Secretary or Assistant Secretary (or equivalent officer) of Buyer certifying as to (A) the resolutions of
the board of directors of Buyer, duly adopted and in effect, which authorize the execution, delivery and performance of this Agreement
and the transactions contemplated hereby; and (B) the names and signatures of the officers of Buyer authorized to sign this Agreement
and the documents to be delivered hereunder.


 


ARTICLE
III

Representations and warranties of seller


 


Except
as set forth in the Disclosure Schedule, Seller represents and warrants to Buyer that the statements contained in this ARTICLE
III are true and correct as of the date hereof. For the purposes of these representations of Seller, the term Seller’s
knowledge shall mean, Seller’s actual knowledge, or what Seller reasonably should have known in light of the circumstances.


 


Section
3.01 Organization and Qualification of Seller. Seller
is a corporation duly organized, validly existing and in good standing under the Laws of the state of Delaware and has full corporate
power and authority to own, operate or lease the properties and assets now owned, operated or leased by it and to carry on the
Business as currently conducted. The Disclosure Schedule sets forth each jurisdiction in which Seller is licensed or qualified
to do business, and Seller is duly licensed or qualified to do business and is in good standing in each jurisdiction in which
the ownership of the Purchased Assets or the operation of the Business as currently conducted makes such licensing or qualification
necessary.


 


Section
3.02 Authority of Seller. Seller has full
corporate power and authority to enter into this Agreement and the Ancillary Documents to which Seller is a party, to carry out
its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and
delivery by Seller of this Agreement and any Ancillary Document to which Seller is a party, the performance by Seller of its obligations
hereunder and thereunder and the consummation by Seller of the transactions contemplated hereby and thereby have been duly authorized
by all requisite corporate action on the part of Seller. This Agreement has been duly executed and delivered by Seller, and (assuming
due authorization, execution and delivery by Buyer) this Agreement constitutes a legal, valid and binding obligation of Seller
enforceable against Seller in accordance with its terms. When each Ancillary Document to which Seller is or will be a party has
been duly executed and delivered by Seller (assuming due authorization, execution and delivery by each other party thereto), such
Ancillary Document will constitute a legal and binding obligation of Seller enforceable against it in accordance with its terms.


 




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Section
3.03 No Conflicts; Consents. The execution, delivery and performance by Seller
of this Agreement and the Ancillary Documents to which it is a party, and the consummation of the transactions contemplated hereby
and thereby, do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of
the certificate of incorporation, by-laws or other organizational documents of Seller; (b) violate or conflict with any judgment,
order, decree, statute, law, ordinance, rule or regulation applicable to Seller, the Business or the Purchased Assets (c) require
the consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default
or an event that, with or without notice or lapse of time or both, would constitute a default under, result in the acceleration
of or create in any party the right to accelerate, terminate, modify or cancel any Contract or Permit to which Seller is a party
or by which Seller or the Business is bound or to which any of the Purchased Assets are subject (including any Assigned Contract);
or (d) result in the creation or imposition of any Encumbrance on the Purchased Assets. No consent, approval, waiver or authorization
is required to be obtained by Seller from any person or entity (including any governmental authority) in connection with the execution,
delivery and performance by Seller of this Agreement and the consummation of the transactions contemplated hereby.


 


As
used herein Encumbrance means any charge, claim, community property interest, pledge, condition, equitable interest, lien (statutory
or other), option, security interest, mortgage, easement, encroachment, right of way, right of first refusal, or restriction of
any kind, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.


 


Section
3.04 Material Contracts.


 


(a)
The Disclosure Schedule lists each of the contracts by which any of the Purchased Assets are bound or affected or (y) to which
Seller is a party or by which it is bound in connection with the Business or the Purchased Assets (such Contracts, being “Material
Contracts”).


 


(b)
To the Seller’s knowledge, each Material Contract is valid and binding on Seller in accordance with its terms and is in
full force and effect. To the Seller’s knowledge, neither Seller nor any other party thereto is in breach of or default
under (or is alleged to be in breach of or default under) or has provided or received any notice of any intention to terminate,
any Material Contract. To the Seller’s knowledge, no event or circumstance has occurred that, with notice or lapse of time
or both, would constitute an event of default under any Material Contract or result in a termination thereof or would cause or
permit the acceleration or other changes of any right or obligation or the loss of any benefit thereunder. To the Seller’s
knowledge, complete and correct copies of each Material Contract (including all modifications, amendments and supplements thereto
and waivers thereunder) have been made available to Buyer. There are no material disputes pending or threatened under any Contract
included in the Purchased Assets.


 


Section
3.05 Title to Purchased Assets. To the Seller’s knowledge, Seller has
good and valid title to, or a valid leasehold interest in, all of the Purchased Assets except for those items set forth in Section
3.05 of the Disclosure Schedule. All such Purchased Assets (including leaseholder interests) are free and clear of Encumbrances
except for the those items set forth on Section 3.05 of the Disclosure Schedule.


 




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Section
3.06 Condition and Sufficiency of Assets. To
the Seller’s knowledge, the Purchased Assets are in good operating condition and repair, and are adequate for the uses to
which they are being put, and none of such Purchased Assets is in need of maintenance or repairs except for ordinary, routine
maintenance and repairs that are not material in nature or cost. The Purchased Assets are sufficient for the continued conduct
of the Business after the Closing in substantially the same manner as conducted prior to the Closing and constitute all of the
rights, property and assets necessary to conduct the Business as currently conducted. To the Seller’s knowledge, none of
the Excluded Assets are material to the Business.


 


Section
3.07 Intellectual Property.


 


(a)
“Intellectual Property” means any and all of the following in any jurisdiction throughout the world: (i) trademarks
and service marks, including all applications and registrations and the goodwill connected with the use of and symbolized by the
foregoing; (ii) copyrights, including all applications and registrations related to the foregoing; (iii) trade secrets and confidential
know-how; (iv) patents and patent applications; (v) websites and internet domain name registrations; and (vi) other intellectual
property and related proprietary rights, interests and protections (including all rights to sue and recover and retain damages,
costs and attorneys’ fees for past, present and future infringement and any other rights relating to any of the foregoing).


 


(b)
The Disclosure Schedule lists all Intellectual Property included in the Purchased Assets (“Purchased IP”).
Seller owns or has adequate, valid and enforceable rights to use all the Purchased IP, free and clear of all Encumbrances. Seller
is not bound by any outstanding judgment, injunction, order or decree restricting the use of the Purchased IP or restricting the
licensing thereof to any person or entity.


 


(c)
To the Seller’s knowledge, Seller’s prior and current use of the Purchased IP has not and does not infringe, violate,
dilute or misappropriate the Intellectual Property of any person or entity and there are no claims pending or threatened by any
person or entity with respect to the ownership, validity, enforceability, effectiveness or use of the Purchased IP. To the Seller’s
knowledge, no person or entity is infringing, misappropriating, diluting or otherwise violating any of the Purchased IP, and neither
Seller nor any affiliate of Seller has made or asserted any claim, demand or notice against any person or entity alleging any
such infringement, misappropriation, dilution or other violation.


 


Section
3.08 Legal Proceedings; Governmental Orders. Except
as set forth on Section 3.08 of the Disclosure Schedule, there is no claim, action, suit, proceeding or governmental investigation
(“Action”) of any nature pending or, to Seller’s knowledge, threatened against or by Seller (a) relating
to or affecting the Purchased Assets; or (b) that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated
by this Agreement. To the Seller’s knowledge, no event has occurred, or circumstances exist that may give rise to, or serve
as a basis for, any such Action.


 




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Section
3.09 Compliance With Laws; Permits.


 


(a)
Seller has complied, and is now complying, with all Laws applicable to the conduct of the Business as currently conducted or the
ownership and use of the Purchased Assets.


 


(b)
To the Seller’s knowledge, all permits required for Seller to conduct the Business as currently conducted or for the ownership
and use of the Purchased Assets have been obtained by Seller and are valid and in full force and effect. To the Seller’s
knowledge, all fees and charges with respect to such Permits as of the date hereof have been paid in full. The Disclosure Schedule
lists all current permits issued to Seller which are related to the conduct of the Business as currently conducted or the ownership
and use of the Purchased Assets, including the names of the Permits and their respective dates of issuance and expiration. To
the Seller’s knowledge, no event has occurred that, with or without notice or lapse of time or both, would reasonably be
expected to result in the revocation, suspension, lapse or limitation of any Permit set forth in the Disclosure Schedule.


 


Section
3.10 Environmental Matters.


 


(a)
“Environmental Law” means any applicable law, and any governmental order or binding agreement with any governmental
authority: (a) relating to pollution (or the cleanup thereof) or the protection of natural resources, endangered or threatened
species, human health or safety, or the environment (including ambient air, soil, surface water or groundwater, or subsurface
strata); or (b) concerning the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling,
reclamation, reuse, treatment, generation, discharge, transportation, processing, production, disposal or remediation of any Hazardous
Materials. The term “Environmental Law” includes, without limitation, the following (including their implementing
regulations and any state analogs): the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended
by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.; the Solid Waste Disposal Act,
as amended by the Resource Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984,
42 U.S.C. §§ 6901 et seq.; the Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977,
33 U.S.C. §§ 1251 et seq.; the Toxic Substances Control Act of 1976, as amended, 15 U.S.C. §§ 2601 et seq.;
the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air Act of 1966,
as amended by the Clean Air Act Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; and the Occupational Safety and Health
Act of 1970, as amended, 29 U.S.C. §§ 651 et seq.


 


(b)
To the Seller’s knowledge, the operations of Seller with respect to the Business and the Purchased Assets are currently
and have been in compliance with all Environmental Laws. Seller has not received from any Person, with respect to the Business
or the Purchased Assets, any: (i) written directive, notice of violation or infraction relating to actual or alleged non-compliance
with any Environmental Law or any action, governmental order, lien, fine, penalty alleging liability of non-compliance with any
Environmental Law; or (ii) written request for information pursuant to Environmental Law, which, in each case, either remains
pending or unresolved, or is the source of ongoing obligations or requirements as of the Closing Date.


 




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Section
3.11 Employment Matters.


 


(a)
The Disclosure Schedule contains a list of all persons who are employees, independent contractors or consultants of the Business
as of the date hereof, including any employee who is on a leave of absence of any nature, paid or unpaid, authorized or unauthorized,
and sets forth for each such individual the following: (i) name; (ii) title or position (including whether full-time or part-time);
(iii) hire or retention date; (iv) current annual base compensation rate or contract fee; (v) commission, bonus or other incentive-based
compensation; and (vi) a description of the fringe benefits provided to each such individual as of the date hereof. As of the
date hereof, all compensation, including wages, commissions, bonuses, fees and other compensation, payable to all employees, independent
contractors or consultants of the Business for services performed on or prior to the date hereof have been paid in full and there
are no outstanding agreements, understandings or commitments of Seller with respect to any compensation, commissions, bonuses
or fees.


 


Section
3.12 Taxes.


 


(a)
All Tax Returns with respect to the Business required to be filed by Seller for any Pre-Closing Tax Period have been, or will
be, timely filed. Such Tax Returns are, or will be, true, complete and correct in all respects. All Taxes due and owing by Seller
(whether or not shown on any Tax Return) have been, or will be, timely paid.


 


(b)
Seller has withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any
Employee, independent contractor, creditor, customer, shareholder or other party, and complied with all information reporting
and backup withholding provisions of applicable Law.


 


(c)
No extensions or waivers of statutes of limitations have been given or requested with respect to any Taxes of Seller.


 


Section
3.13 Brokers. No broker, finder or investment
banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated
by this Agreement or any Ancillary Document based upon arrangements made by or on behalf of Seller.


 


Section
3.14 Full Disclosure. To the Seller’s knowledge, no representation or
warranty by Seller in this Agreement and no statement contained in the Disclosure Schedule to this Agreement or any certificate
or other document furnished or to be furnished to Buyer pursuant to this Agreement contains any untrue statement of a material
fact., or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in
which they are made, not misleading.


 




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Section
3.15 Securities Representations. The Seller hereby confirms that the Shares
to be acquired by the Seller hereunder (subject to the terms and conditions herein) will be acquired for investment for the Seller’s
own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof (other than pursuant
to an effective registration statement or an available exemption therefrom), and that the Seller has no present intention of selling,
granting any participation in, or otherwise distributing the same (other than pursuant to an effective registration statement
or an available exemption therefrom). The Seller further represents that the Seller does not presently have any contract, undertaking,
agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with
respect to any of such securities. The Seller understands that the Shares to be acquired, subject to the terms and conditions
herein, have not been, and until registered, will not be, registered under the Securities Act of 1933, as amended (the “Securities
Act”) , by reason of a specific exemption from the registration provisions of the Securities Act which depends upon,
among other things, the bona fide nature of the investment intent and the accuracy of the Seller’s representations as expressed
herein. The Seller understands that the Shares are “restricted securities” under applicable U.S. federal and state
securities laws and that, pursuant to these laws, the Seller must hold the Shares indefinitely unless they are registered with
the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification
requirements is available. The Seller acknowledges that Company has no obligation to register or qualify the securities for resale.
The Seller understands that the Shares may, be notated with a customary Securities Act legend. The Seller represents that it is
an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.


 


Section
3.16 Acknowledgment of Restricted Securities. Each Seller has read and understands the following:


 


THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT, OR ANY STATE SECURITIES LAWS AND ARE BEING OFFERED
AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE PURCHASER SECURITIES ARE
SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SAID ACT
AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE PURCHASER SECURITIES HAVE NOT BEEN RECOMMENDED, APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY AUTHORITY, NOR
HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE MEMORANDUM
OR THIS SUBSCRIPTION AGREEMENT. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL


 


ARTICLE
IV

Representations and warranties of buyer


 


Buyer
represents and warrants to Seller that the statements contained in this ARTICLE IV
are true and correct as of the date hereof, except as otherwise scheduled hereto.


 


Section
4.01 Organization of Buyer. Buyer is a corporation
duly organized, validly existing and in good standing under the Laws of the state of Delaware.


 




    	 	12	 



     


    

 


Section
4.02 Authority of Buyer. Buyer has full corporate
power and authority to enter into this Agreement and the Ancillary Documents to which Buyer is a party, to carry out its obligations
hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Buyer
of this Agreement and any Ancillary Document to which Buyer is a party, the performance by Buyer of its obligations hereunder
and thereunder and the consummation by Buyer of the transactions contemplated hereby and thereby have been duly authorized by
all requisite corporate action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer, and (assuming
due authorization, execution and delivery by Seller) this Agreement constitutes a legal, valid and binding obligation of Buyer
enforceable against Buyer in accordance with its terms. When each Ancillary Document to which Buyer is or will be a party has
been duly executed and delivered by Buyer (assuming due authorization, execution and delivery by each other party thereto), such
Ancillary Document will constitute a legal and binding obligation of Buyer enforceable against it in accordance with its terms.


 


Section
4.03 No Conflicts; Consents. The
execution, delivery and performance by Buyer of this Agreement and the documents to be delivered hereunder, and the
consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict with the certificate of
incorporation, by-laws or other organizational documents of Buyer; or (b) violate or conflict with any judgment, order,
decree, statute, law, ordinance, rule or regulation applicable to Buyer. No consent, approval, waiver or authorization is
required to be obtained by Buyer from any person or entity (including any governmental authority) in connection with the
execution, delivery and performance by Buyer of this Agreement and the consummation of the transactions contemplated
hereby


 


Section
4.04 Title to Stock. Buyer will provide good title to the Shares free and clear of any restrictions
on transfer (other than any restrictions under the Securities Act and state securities laws), taxes, security interests, options,
warrants, purchase rights, contracts, commitments, equities, claims, and demands.


 


Section
4.05 Brokers. No broker, finder or investment
banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated
by this Agreement or any Ancillary Document based upon arrangements made by or on behalf of Buyer.


 


Section
4.06 Sufficiency of Funds. Buyer has sufficient
cash on hand or other sources of immediately available funds to enable it to make payment of the Purchase Price and consummate
the transactions contemplated by this Agreement.


 


Section
4.07 Legal Proceedings. There are no Actions
pending or, to Buyer’s knowledge, threatened against or by Buyer or any Affiliate of Buyer that challenge or seek to prevent,
enjoin or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may
give rise or serve as a basis for any such Action.


 




    	 	13	 



     


    

 


ARTICLE
V

Covenants


 


Section
5.01 Employees and Employee Benefits.


 


(a)
Commencing on the Closing Date, Seller shall terminate all employees of the Business who are actively at work on the Closing Date,
and, at Buyer’s sole discretion, Buyer may offer employment, on an “at will” basis, to any or all of such employees.


 


(b)
Seller shall be solely responsible, and Buyer shall have no obligations whatsoever for, any compensation or other amounts payable
to any current or former employee, officer, director, independent contractor or consultant of the Business, including, without
limitation, hourly pay, commission, bonus, salary, accrued vacation, fringe, pension or profit sharing benefits or severance pay
for any period relating to the service with Seller at any time on or prior to the Closing Date and Seller shall pay all such amounts
to all entitled persons on or prior to the Closing Date.


 


(c)
Seller shall remain solely responsible for the satisfaction of all claims for medical, dental, life insurance, health accident
or disability benefits brought by or in respect of current or former employees, officers, directors, independent contractors or
consultants of the Business or the spouses, dependents or beneficiaries thereof, which claims relate to events occurring on or
prior to the Closing Date. Seller also shall remain solely responsible for all worker’s compensation claims of any current
or former employees, officers, directors, independent contractors or consultants of the Business which relate to events occurring
on or prior to the Closing Date. Seller shall pay, or cause to be paid, all such amounts to the appropriate persons as and when
due.


 


Section
5.02 Confidentiality. From and after the Closing,
Seller shall, and shall cause its Affiliates to, hold, and shall use its reasonable best efforts to cause its or their respective
Representatives to hold, in confidence any and all information, whether written or oral, concerning the Business, except to the
extent that Seller can show that such information (a) is generally available to and known by the public through no fault of Seller,
any of its Affiliates or their respective Representatives; or (b) is lawfully acquired by Seller, any of its Affiliates or their
respective Representatives from and after the Closing from sources which are not prohibited from disclosing such information by
a legal, contractual or fiduciary obligation. If Seller or any of its Affiliates or their respective Representatives are compelled
to disclose any information by judicial or administrative process or by other requirements of Law, Seller shall promptly notify
Buyer in writing and shall disclose only that portion of such information which Seller is advised by its counsel in writing is
legally required to be disclosed, provided that Seller shall use reasonable best efforts to obtain an appropriate protective
order or other reasonable assurance that confidential treatment will be accorded such information.


 




    	 	14	 



     


    

 


Section
5.03 Non-Competition; Non-Solicitation.


 


(a)
For a period of 2 years commencing on the Closing Date (the “Restricted Period”), Seller shall not, and shall
not permit any of its Affiliates to, directly or indirectly, (i) engage in or assist others in engaging in the Restricted Business
in the Territory; (ii) have an interest in any Person that engages directly or indirectly in the Restricted Business in the Territory
in any capacity, including as a partner, shareholder, member, employee, principal, agent, trustee or consultant; or (iii) cause,
induce or encourage any material actual or prospective client, customer, supplier or licensor of the Business (including any existing
or former client or customer of Seller and any Person that becomes a client or customer of the Business after the Closing), or
any other Person who has a material business relationship with the Business, to terminate or modify any such actual or prospective
relationship. Notwithstanding the foregoing, Seller may own, directly or indirectly, solely as an investment, securities of any
Person traded on any national securities exchange if Seller is not a controlling Person of, or a member of a group which controls,
such Person and does not, directly or indirectly, own 10% or more of any class of securities of such Person.


 


(b)
During the Restricted Period, Seller shall not, and shall not permit any of its Affiliates to, directly or indirectly, hire or
solicit any person who is offered employment by Buyer pursuant to Section 5.01(a)
or is or was employed in the Business during the Restricted Period, or encourage any such employee to leave such employment or
hire any such employee who has left such employment, except pursuant to a general solicitation which is not directed specifically
to any such employees; provided, that nothing in this Section 5.03(b) shall
prevent Seller or any of its Affiliates from hiring (i) any employee whose employment has been terminated by Buyer or (ii) after
180 days from the date of termination of employment, any employee whose employment has been terminated by the employee.


 


(c)
Seller acknowledges that a breach or threatened breach of this Section 5.03 would
give rise to irreparable harm to Buyer, for which monetary damages would not be an adequate remedy, and hereby agrees that in
the event of a breach or a threatened breach by Seller of any such obligations, Buyer shall, in addition to any and all other
rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a temporary
restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction
(without any requirement to post bond).


 


(d)
Seller acknowledges that the restrictions contained in this Section 5.03 are reasonable
and necessary to protect the legitimate interests of Buyer and constitute a material inducement to Buyer to enter into this Agreement
and consummate the transactions contemplated by this Agreement. In the event that any covenant contained in this Section
5.03 should ever be adjudicated to exceed the time, geographic, product or service or other limitations permitted by applicable
Law in any jurisdiction, then any court is expressly empowered to reform such covenant, and such covenant shall be deemed reformed,
in such jurisdiction to the maximum time, geographic, product or service or other limitations permitted by applicable Law. The
covenants contained in this Section 5.03 and each provision hereof are severable
and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not
invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.


 




    	 	15	 



     


    

 


Section
5.04 Books and Records.


 


(a)
In order to facilitate the resolution of any claims made against or incurred by Seller prior to the Closing, or for any other
reasonable purpose, for a period of 2 years after the Closing, Buyer shall:


 


(i)
retain the Books and Records (including personnel files) relating to periods prior to the Closing in a manner reasonably consistent
with the prior practices of Seller; and


 


(ii)
upon reasonable notice, afford the Seller’s Representatives reasonable access (including the right to make, at Seller’s
expense, photocopies), during normal business hours, to such Books and Records.


 


(b)
In order to facilitate the resolution of any claims made by or against or incurred by Buyer after the Closing, or for any other
reasonable purpose, for a period of 2 years following the Closing, Seller shall:


 


(i)
retain the books and records (including personnel files) of Seller which relate to the Business and its operations for periods
prior to the Closing; and


 


(ii)
upon reasonable notice, afford the Buyer’s Representatives reasonable access (including the right to make, at Buyer’s
expense, photocopies), during normal business hours, to such books and records.


 


(c)
Neither Buyer nor Seller shall be obligated to provide the other party with access to any books or records (including personnel
files) pursuant to this Section 5.04 where such access would violate any law.


 


Section
5.05 Public Announcements. Unless otherwise
required by applicable law or stock exchange requirements (based upon the reasonable advice of counsel), no party to this Agreement
shall make any public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate
with any news media without the prior written consent of the other party (which consent shall not be unreasonably withheld or
delayed), and the parties shall cooperate as to the timing and contents of any such announcement.


 


Section
5.06 Bulk Sales Laws. The parties hereby waive
compliance with the provisions of any bulk sales, bulk transfer or similar Laws of any jurisdiction that may otherwise be applicable
with respect to the sale of any or all of the Purchased Assets to Buyer; it being understood that any Liabilities arising out
of the failure of Seller to comply with the requirements and provisions of any bulk sales, bulk transfer or similar Laws of any
jurisdiction which would not otherwise constitute Assumed Liabilities shall be treated as Excluded Liabilities.


 


Section
5.07 Transfer Taxes. All transfer, documentary,
sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and interest) incurred in
connection with this Agreement (including any real property transfer Tax and any other similar Tax) shall be borne and paid by
Seller when due. Seller shall, at its own expense, timely file any Tax Return or other document with respect to such Taxes or
fees (and Buyer shall cooperate with respect thereto as necessary).


 




    	 	16	 



     


    

 


Section
5.08 Further Assurances. Following the Closing,
each of the parties hereto shall, and shall cause their respective affiliates to, execute and deliver such additional documents,
instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions
hereof and give effect to the transactions contemplated by this Agreement.


 


ARTICLE
VI

Conditions to closing


 


Section
6.01 Conditions to Obligations of All Parties. The
obligations of each party to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment, at
or prior to the Closing, of each of the following conditions:


 


(a)
No governmental authority shall have enacted, issued, promulgated, enforced or entered any governmental order which is in effect
and has the effect of making the transactions contemplated by this Agreement illegal, otherwise restraining or prohibiting consummation
of such transactions or causing any of the transactions contemplated hereunder to be rescinded following completion thereof.


 


Section
6.02 Conditions to Obligations of Buyer. The
obligations of Buyer to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or Buyer’s
waiver, at or prior to the Closing, of each of the following conditions:


 


(a)
Other than the representations and warranties of Seller contained in Section 3.01,
Section 3.02, and Section 3.15, the
representations and warranties of Seller contained in this Agreement, the Ancillary Documents and any certificate or other writing
delivered pursuant hereto shall be true and correct in all respects (in the case of any representation or warranty qualified by
materiality) or in all material respects (in the case of any representation or warranty not qualified by materiality) on and as
of the date hereof and on and as of the Closing Date with the same effect as though made at and as of such date (except those
representations and warranties that address matters only as of a specified date, the accuracy of which shall be determined as
of that specified date in all respects). The representations and warranties of Seller contained in Section
3.01, Section 3.02, and Section 3.15
shall be true and correct in all respects on and as of the date hereof and on and as of the Closing Date with the same
effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified
date, the accuracy of which shall be determined as of that specified date in all respects).


 


(b)
Seller shall have duly performed and complied in all material respects with all agreements, covenants and conditions required
by this Agreement and each of the Ancillary Documents to be performed or complied with by it prior to or on the Closing Date.


 




    	 	17	 



     


    

 


(c)
No action shall have been commenced against Buyer or Seller, which would prevent the Closing. No injunction or restraining order
shall have been issued by any governmental authority, and be in effect, which restrains or prohibits any transaction contemplated
hereby.


 


(d)
All approvals, consents and waivers that are listed on the Disclosure Schedule shall have been received and executed counterparts
thereof shall have been delivered to Buyer at or prior to the Closing.


 


(e)
From the date of this Agreement, there shall not have occurred any Material Adverse Effect, nor shall any event or events have
occurred that, individually or in the aggregate, with or without the lapse of time, could reasonably be expected to result in
a Material Adverse Effect. “Material Adverse Effect” means any event, occurrence, fact, condition or change
that is, or could reasonably be expected to become, individually or in the aggregate, materially adverse to (a) the business,
results of operations, condition (financial or otherwise) or assets of the Business, (b) the value of the Purchased Assets, or
(c) the ability of Seller to consummate the transactions contemplated hereby on a timely basis.


 


(f)
Seller shall have delivered to Buyer duly executed counterparts to the Ancillary Documents and such other documents and deliveries
set forth in Section 2.02(a).


 


(g)
Buyer shall have received all permits that are necessary for it to conduct the Business as conducted by Seller as of the Closing
Date.


 


(h)
Buyer shall have received a certificate of the Secretary or an Assistant Secretary (or equivalent officer) of Seller certifying
that attached thereto are true and complete copies of all resolutions adopted by the board of directors of Seller authorizing
the execution, delivery and performance of this Agreement and the Ancillary Documents and the consummation of the transactions
contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the resolutions adopted
in connection with the transactions contemplated hereby and thereby.


 


(i)
Seller shall have delivered to Buyer such other documents or instruments as Buyer reasonably requests and are reasonably necessary
to consummate the transactions contemplated by this Agreement.


 


Section
6.03 Conditions to Obligations of Seller. The
obligations of Seller to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or Seller’s
waiver, at or prior to the Closing, of each of the following conditions:


 


(a)
the representations and warranties of Buyer contained in this Agreement, the Ancillary Documents and any certificate or other
writing delivered pursuant hereto shall be true and correct in all respects (in the case of any representation or warranty qualified
by materiality) or in all material respects (in the case of any representation or warranty not qualified by materiality) on and
as of the date hereof and on and as of the Closing Date with the same effect as though made at and as of such date (except those
representations and warranties that address matters only as of a specified date, the accuracy of which shall be determined as
of that specified date in all respects).


 




    	 	18	 



     


    

 


(b)
Buyer shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by
this Agreement and each of the Ancillary Documents to be performed or complied with by it prior to or on the Closing Date.


 


(c)
No injunction or restraining order shall have been issued by any Governmental Authority, and be in effect, which restrains or
prohibits any material transaction contemplated hereby.


 


(d)
Buyer shall have delivered to Seller duly executed counterparts to the Ancillary Documents and such other documents and deliveries
set forth in Section 2.02(b).


 


(e)
Buyer shall have delivered to Seller such other documents or instruments as Seller reasonably requests and are reasonably necessary
to consummate the transactions contemplated by this Agreement.


 


ARTICLE
VII

Indemnification


 


Section
7.01 Survival. Subject to the limitations
and other provisions of this Agreement, the representations and warranties contained herein shall survive the Closing and shall
remain in full force and effect and shall survive indefinitely provided, that the representations and warranties in Section
3.14 shall survive for 12 months. All covenants and agreements of the parties contained herein shall survive the Closing
for 12 months or for the period explicitly specified therein. Notwithstanding the foregoing, any claims asserted in good faith
with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching
party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of the relevant
representation or warranty and such claims shall survive until finally resolved.


 


Section
7.02 Indemnification By Seller. Subject to
the other terms and conditions of this ARTICLE VII, Seller shall indemnify and defend
each of Buyer and its affiliates and their respective stockholders, directors, officers and employees (collectively, the “Buyer
Indemnitees”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them
for, any and all Losses incurred or sustained by, or imposed upon, the Buyer Indemnitees based upon, arising out of, with respect
to or by reason of:


 


(a)
any inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement, the Ancillary Documents
or in any certificate or instrument delivered by or on behalf of Seller pursuant to this Agreement, as of the date such representation
or warranty was made or as if such representation or warranty was made on and as of the Closing Date (except for representations
and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference
to such specified date);


 




    	 	19	 



     


    

 


(b)
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller pursuant to this Agreement, the
Ancillary Documents or any certificate or instrument delivered by or on behalf of Seller pursuant to this Agreement; or


 


(c)
any third-party claim based upon, resulting from or arising out of the business, operations, properties, assets or obligations
of Seller or any of its affiliates (other than the Purchased Assets) conducted, existing or arising on or prior to the Closing
Date.


 


Section
7.03 Indemnification by Buyer. Subject to
the other terms and conditions of this ARTICLE VII, Buyer shall indemnify and defend
each of Seller and its Affiliates and their respective Representatives (collectively, the “Seller Indemnitees”)
against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses
incurred or sustained by, or imposed upon, the Seller Indemnitees based upon, arising out of, with respect to or by reason of:


 


(a)
any inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement or in any certificate
or instrument delivered by or on behalf of Buyer pursuant to this Agreement, as of the date such representation or warranty was
made or as if such representation or warranty was made on and as of the Closing Date (except for representations and warranties
that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified
date); or


 


(b)
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement.


 


Section
7.04 Indemnification Procedures. Whenever
any claim shall arise for indemnification hereunder, the party entitled to indemnification (the “Indemnified Party”)
shall promptly provide written notice of such claim to the other party (the “Indemnifying Party”). In connection
with any claim giving rise to indemnity hereunder resulting from or arising out of any Action by a person or entity who is not
a party to this Agreement, the Indemnifying Party, at its sole cost and expense and upon written notice to the Indemnified Party,
may assume the defense of any such Action with counsel reasonably satisfactory to the Indemnified Party. The Indemnified Party
shall be entitled to participate in the defense of any such Action, with its counsel and at its own cost and expense. If the Indemnifying
Party does not assume the defense of any such Action, the Indemnified Party may, but shall not be obligated to, defend against
such Action in such manner as it may deem appropriate, including, but not limited to, settling such Action, after giving notice
of it to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate and no action taken by the Indemnified
Party in accordance with such defense and settlement shall relieve the Indemnifying Party of its indemnification obligations herein
provided with respect to any damages resulting therefrom. The Indemnifying Party shall not settle any Action without the Indemnified
Party’s prior written consent (which consent shall not be unreasonably withheld or delayed).


 




    	 	20	 



     


    

 


Section
7.05 Payments; Indemnification Fund.


 


(a)
Once a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant to this ARTICLE
VII, the Indemnifying Party shall satisfy its obligations within 15 Business Days of such final, non-appealable adjudication
by wire transfer of immediately available funds.


 


(b)
Any Losses payable to a Buyer Indemnitee pursuant to this ARTICLE VII shall be satisfied:
(i) first from the Remainder Purchase Price and (ii) to the extent the amount of Losses exceeds the Remainder Purchase Price available
to the Buyer, from Seller.


 


Section
7.06 Tax Treatment of Indemnification Payments. All
indemnification payments made under this Agreement shall be treated by the parties as an adjustment to the Purchase Price for
Tax purposes, unless otherwise required by Law.


 


Section
7.07 Effect of Investigation. The representations, warranties and covenants
of the Indemnifying Party, and the Indemnified Party’s right to indemnification with respect thereto, shall not be affected
or deemed waived by reason of any investigation made by or on behalf of the Indemnified Party (including by any of its Representatives)
or by reason of the fact that the Indemnified Party or any of its Representatives knew or should have known that any such representation
or warranty is, was or might be inaccurate or by reason of the Indemnified Party’s waiver of any condition set forth in
Section 6.02 or Section 6.03, as the
case may be.


 


Section
7.08 Other Rights and Remedies Not Affected. The
indemnification rights of the parties under this ARTICLE VII are
independent of, and in addition to, such rights and remedies as the parties may have at Law or in equity or otherwise for any
misrepresentation, breach of warranty or failure to fulfill any covenant, agreement or obligation hereunder on the part of any
party hereto, including the right to seek specific performance, rescission or restitution, none of which rights or remedies shall
be affected or diminished hereby.


 


Section
7.09 Limitations on Indemnity. The aggregate obligations of the Sellers to indemnify the Buyer, and the obligations of the
Buyer to indemnify the Sellers, are subject to the following limitations.


 


(a)
Notwithstanding anything to the contrary contained herein, Sellers shall not be liable for any claims under this Section 7 until
such claims exceed Ten Thousand Dollars ($10,000) in the aggregate. Once claims exceed Ten Thousand Dollars ($10,000) in the aggregate,
Buyer shall be entitled to recover the amount of such claims.


 


(b)
Notwithstanding anything to the contrary contained herein, Buyer shall not be liable for any claims under this Section 7 until
such claims exceed Ten Thousand Dollars ($10,000) in the aggregate. Once claims exceed Ten Thousand Dollars ($10,000) in the aggregate,
Sellers shall be entitled to recover the amount of such claims.


 




    	 	21	 



     


    

 


(c)
All recoveries for Losses to which an indemnified party may be entitled pursuant to the provisions of this Section 7 shall be
net of any insurance coverage with respect thereto. No director or officer of an indemnifying party shall have any liability to
an indemnified party as a result of a breach of a representation or warranty contained in this Agreement.


 


(d)
Notwithstanding any other provision of this Agreement, neither the Buyer nor the Sellers shall be liable under this Section
7 for Losses to the extent, if any, that any such Losses result from a failure on the part of any Indemnified Party to exercise
good faith in any matter thereby jeopardizing or prejudicing the interests of the Indemnifying Party.


 


(e)
Limitation of Liability. In no event will the indemnification provided for in this Agreement exceed the Purchase Price.


 


ARTICLE
VIII

Miscellaneous


 


Section
8.01 Expenses. Except as otherwise expressly
provided herein, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors
and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party
incurring such costs and expenses, whether or not the Closing shall have occurred.


 


Section
8.02 Notices. All notices, requests, consents,
claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when
delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized
overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission)
if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the
recipient or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.
Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this Section 8.02):


 




    	 	22	 



     


    

 


	If
    to Seller:	[SELLER
                                         ADDRESS]

         

        Facsimile:
        [FAX NUMBER]

         

        E-mail:
        [E-MAIL ADDRESS]

         

        Attention:
        [TITLE OF OFFICER TO RECEIVE NOTICES]

         

         

	If
    to Buyer:	350
                                         Lincoln Rd, 5th Floor,

         

        Miami
        Beach, Fl. 33139

         

        E-mail:
        YBaron@FarkasGroup.com

         

        Attention:
        Legal Department

         

         

	with
    a copy to:	SICHENZIA
                                         ROSS FERENCE LLP

         

        1185
        Avenue of the Americas, 37th Floor

         

        New
        York, NY 10036

         

        Facsimile:
        (212) 930-9725

         

        E-mail:
        gsichenzia@srf.law

         

        Attention:
        Gregory Sichenzia, Esq.



 


Section
8.03 Headings. The headings in this Agreement
are for reference only and shall not affect the interpretation of this Agreement.


 


Section
8.04 Severability. If any term or provision
of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other
jurisdiction.


 


Section
8.05 Entire Agreement. This Agreement and
the Ancillary Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject
matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and
oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement
and those in the Ancillary Documents, and Disclosure Schedule (other than an exception expressly set forth as such in the Disclosure
Schedule), the statements in the body of this Agreement will control.


 


Section
8.06 Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign its
rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably
withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.


 


Section
8.07 No Third-party Beneficiaries. Except
as provided in ARTICLE VII, this Agreement is for the sole benefit of the parties
hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer
upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of
this Agreement.


 


Section
8.08 Amendment and Modification. This Agreement may only be amended, modified
or supplemented by an agreement in writing signed by each party hereto


 




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Section
8.09 Waiver. No waiver by any party of any
of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver
by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by
such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure
to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed
as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, remedy, power or privilege.


 


Section
8.10 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.


 


(a)
This Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida without giving
effect to any choice or conflict of law provision or rule (whether of the State of Florida or any other jurisdiction).


 


(b)
Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be
instituted in the federal courts of the United States of America or the courts of the State of Florida in each case located in
the county of Miami-Dade and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action
or proceeding.


 


Section
8.11 Specific Performance. The parties agree that irreparable damage would occur
if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled
to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.


 


Section
8.12 Attorneys’ Fees. In the event any dispute or litigation arises hereunder between
any of the parties hereto, their heirs, personal representatives, agents, successors or assigns, the prevailing party shall be
entitled to all reasonable costs and expenses incurred by it in connection therewith (including, without limitation, all reasonable
attorneys’ and paralegals’ fees and costs incurred before and at any trial, arbitration, or other proceeding and at
all tribunal levels), as well as all other relief granted in any suit or other proceeding.


 


Section
8.13 Counterparts. This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.
A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have
the same legal effect as delivery of an original signed copy of this Agreement.


 


[signature
page follows]


 




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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.


 


	 	NEIGHBORHOOD
    FUEL, INC.
	 	 	 
	 	By	                      
	 	Name:	 
	 	Title:	 
	 	 	 
	 	NEIGHBORHOOD
    FUEL HOLDINGS, LLC. 
	 	 	 
	 	By	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Solely
    with respect to the obligation to issue the Shares
	 	 
	 	EzFILL
    HOLDINGS, INC.
	 	 	 
	 	By	 
	 	Name:	 
	 	Title:	 


 




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