Exhibit 4.9


 








 


AGREEMENT AND PLAN OF MERGER


 


This Agreement and Plan of Merger (this “Agreement”),
is entered into as of September 1, 2021, by and among IndieFlix Group, Inc., Delaware corporation (the “Company”), Liquid
Media Group Ltd., a corporation formed under the Business Act, British Columbia Canada, (“Parent”), Liquid Media Merger
Sub, a Delaware corporation and a wholly-owned or indirect wholly-owned Subsidiary of Parent (“Merger Sub”) and Scilla Andreen,
in her capacity as representative for each of the Noteholders (“Noteholder Representative”). Capitalized terms used herein
(including in the immediately preceding sentence) and not otherwise defined herein shall have the meanings set forth in Section 8.01 hereof.


 


RECITALS


 


WHEREAS, the parties intend that Merger Sub be merged
with and into the Company, with the Company surviving that merger on the terms and subject to the conditions set forth herein;


 


WHEREAS, the Board of Directors of the Company (the
“Company Board”) has: (a) determined that it is in the best interests of the Company and the holders of shares of the Company’s
Capital Stock, and declared it advisable, to enter into this Agreement with Parent and Merger Sub; (b) approved the execution, delivery,
and performance of this Agreement and the consummation of the transactions contemplated hereby, including the Merger; and (c) resolved,
subject to the terms and conditions set forth in this Agreement, to recommend adoption of this Agreement by the stockholders of the Company;
in each case, in accordance with the Delaware General Corporation Law (the “DGCL”);


 


WHEREAS, the respective Boards of Directors of Parent
(the “Parent Board”) and Merger Sub (the “Merger Sub Board”) have each: (a) determined that it is in the best
interests of Parent or Merger Sub, as applicable, and their respective stockholders, and declared it advisable, to enter into this Agreement;
and (b) approved the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby,
including the Merger; in each case, in accordance with the DGCL;


 


WHEREAS, the Parent Board has approved the issuance
of cash in connection with the Merger on the terms and subject to the conditions set forth in this Agreement;


 


WHEREAS, the Parent Board has approved the issuance
of Parent Common Shares and Earn-Out Shares in connection with the cancellation of debt of the Company on the terms and subject to the
conditions set forth in this Agreement; and


 


WHEREAS, the parties desire to make certain representations,
warranties, covenants, and agreements in connection with the Merger and the other transactions contemplated by this Agreement and also
to prescribe certain terms and conditions to the Merger.


 


NOW, THEREFORE, in consideration of the foregoing and
of the representations, warranties, covenants, and agreements contained in this Agreement, the parties, intending to be legally bound,
agree as follows:


 






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ARTICLE I


THE MERGER


 


Section 1.01The Merger. On the terms and subject to the
conditions set forth in this Agreement, and in accordance with the DGCL, at the Effective Time: (a) Merger Sub will merge with and into
the Company (the “Merger”); (b) the separate corporate existence of Merger Sub will cease; and (c) the Company will continue
its corporate existence under the DGCL as the surviving corporation in the Merger and a Subsidiary of Parent (referred to herein as the
“Surviving Corporation”).


 


Section 1.02Closing. Upon the terms and subject to the conditions
set forth herein, the closing of the Merger (the “Closing”) will take place at 11:00 a.m. ET, Toronto time, as soon as practicable
(and, in any event, within five Business Days) after the satisfaction or, to the extent permitted hereunder, waiver of all conditions
to the Merger set forth in Article VI (other than those conditions that by their nature are to be satisfied at the Closing, but subject
to the satisfaction or, to the extent permitted hereunder, waiver of all such conditions), unless this Agreement has been terminated pursuant
to its terms or unless another time or date is agreed to in writing by the parties hereto. The Closing shall take place remotely by exchange
of documents and signatures (or their electronic counterparts), unless otherwise agreed to in writing by the parties hereto. The actual
date of the Closing is hereinafter referred to as the “Closing Date.”


 


Section 1.03Effective Time. Subject to the provisions of
this Agreement, at the Closing, the Company, Parent, and Merger Sub will cause a certificate of merger (the “Certificate of Merger”)
to be executed, acknowledged, and filed with the Secretary of State of the State of Delaware in accordance with the relevant provisions
of the DGCL and shall make all other filings or recordings required under the DGCL. The Merger will become effective at such time as the
Certificate of Merger has been duly filed with the Secretary of State of the State of Delaware or at such later date or time as may be
agreed by the Company and Parent in writing and specified in the Certificate of Merger in accordance with the DGCL (the effective time
of the Merger being hereinafter referred to as the “Effective Time”).


 


Section 1.04Effects of the Merger. The Merger shall have
the effects set forth in this Agreement and in the applicable provisions of the DGCL. Without limiting the generality of the foregoing,
and subject thereto, from and after the Effective Time, all property, rights, privileges, immunities, powers, franchises, licenses, and
authority of each of the Company and Merger Sub shall vest in the Surviving Corporation, and all debts, liabilities, obligations, restrictions,
and duties of each of the Company and Merger Sub shall become the debts, liabilities, obligations, restrictions, and duties of the Surviving
Corporation. Subject to the terms set forth herein, the aggregate consideration to be paid by Parent with respect to the Merger shall
be the Exchange Consideration, the Earn-Out Shares and the Per Share Cash-Out Consideration.


 


Section 1.05Certificate of Incorporation; By-Laws. At the
Effective Time: (a) the certificate of incorporation of the Surviving Corporation shall be amended and restated so as to read in its entirety
as set forth in Exhibit A, and, as so amended and restated, shall be the certificate of incorporation of the Surviving Corporation
until thereafter amended in accordance with the terms thereof and applicable Law; and (b) the by-laws of Merger Sub as in effect immediately
prior to the Effective Time shall be the by-laws of the Surviving Corporation, except that references to Merger Sub’s name shall
be replaced with references to the Surviving Corporation’s name until thereafter amended in accordance with the terms thereof, the
certificate of incorporation of the Surviving Corporation, and applicable Law.


 


 






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 Section 1.06Directors and Officers of Surviving Corporation.


 


(a)               
Directors. From and after the Effective Time until the earlier of (1) the Milepost Deadline, or (2) issuance of all the Earn-Out
Shares as a result of achieving all the Mileposts set forth in Section 2.07, there will be five (5) members on the board of directors
of the Surviving Corporation: which board will consist of three (3) directors designated by the Parent and two (2) of whom will be designated
by Scilla Andreen and Paul Pigott, on behalf of the Company, subject to the receipt of all applicable regulatory and stockholder approvals.
The initial directors following the Closing shall be as follows: (i) Ronald W. Thomson, B. Andrus Wilson and Joshua Jackson, as designees
of the Parent, and (ii) Scilla Andreen and Paul Pigott, as designees of Company.


 


(b)               
Officers. The officers of the Surviving Corporation, from and after the Effective Time, shall be as follows: Scilla Andreen, President,
Secretary and CEO until her successors has been duly elected or appointed and qualified or until her earlier death, resignation, or removal
in accordance with the certificate of incorporation and by-laws of the Surviving Corporation.


 


ARTICLE II


EFFECT OF THE MERGER ON CAPITAL STOCK; EXCHANGE OF CERTIFICATES


 


Section 2.01Effect of the Merger on Capital Stock and Other Securities of the Company
and Merger Sub.


 


(a)       Effect
on Capital Stock. At the Effective Time, as a result of the Merger and without any action on the part of Parent, Merger Sub, or the
Company or the holder of any capital stock of Parent, Merger Sub, or the Company, each share of Company Capital Stock issued and outstanding
immediately prior to the Effective Time shall be cancelled and extinguished (“Cancelled Shares”) and shall be paid an amount
of cash equal to the Per Share Cash-Out Consideration.


 


(b)       Effect
on Capital Stock of Merger Sub. At the Effective Time, as a result of the Merger and without any action on the part of Parent, Merger
Sub, or the Company or the holder of any capital stock of Parent, Merger Sub, or the Company, each share of common stock, par value $0.0001
per share, of Merger Sub issued and outstanding immediately prior to the Effective Time shall be converted into and become one newly issued,
fully paid, and non-assessable share of common stock, par value $0.0001 per share, of the Surviving Corporation with the same rights,
powers, and privileges as the shares so converted and shall constitute the only outstanding shares of capital stock of the Surviving Corporation.
From and after the Effective Time, all certificates representing shares of Merger Sub’s common stock shall be deemed for all purposes
to represent the number of shares of common stock of the Surviving Corporation into which they were converted in accordance with the immediately
preceding sentence.


 


(c)       Effect
of Merger on Other Securities of Company.


 


(i)       Options.
No Options shall be assumed by Parent in the Merger.


 


(A)       Vested
Options. At the Effective Time, as a result of the Merger and without any action on the part of Parent, Merger Sub, or the Company
or the holder of any capital stock of Parent, Merger Sub, or the Company, each Vested Option outstanding immediately prior to the Effective
Time shall be cancelled and extinguished without any consideration paid therefor.


 


(B)       Unvested
Options. Immediately prior to the Effective Time, by virtue of the Merger and without any action on the part of Parent, Merger Sub
or the Company, each Unvested Option outstanding immediately prior to the Effective Time shall be cancelled and extinguished without any
consideration paid therefor.


 


(C)       Termination
and Cancellation. Company shall take all necessary actions to have such Vested Options and Unvested Options terminated or cancelled
pursuant to their respective agreement and plans without any Liabilities surviving after the Effective Time.


 


 






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(d)       Notes.
The Company shall take all actions that are necessary so that at the Effective Time, each unpaid Note existing and outstanding immediately
prior to the Effective Time shall be cancelled and extinguished and shall be exchanged into the right to receive (i) 500,000 shares of
Parent Common Shares (the “Exchange Consideration”); (ii) any cash in lieu of fractional shares of Parent Common Shares payable
pursuant to Section 2.01(f); and (iii) the right to the Earn-Out Shares pursuant to Section 2.07, all as set forth on Schedule 1. The
Notes shall cease to accrue any interest as of the Effective Date. Prior to Closing, Company shall deliver to the Parent a Joinder and
Release Agreement executed by each of the Noteholders, in a form set forth in Exhibit C (the “Release”) which among
other things shall (i) provide for the acceptance of the Exchange Consideration and/or the right to the Earn-Out Shares as full payment
and satisfaction for all indebtedness related to the Note; (ii) release the Parent and Company from all claims related to such Noteholder’s
Note; (iii) provide certain investor representations regarding its “accredited investor” status as such term is defined in
Regulation D under the Securities Act of 1933 and additional representation as reasonably requested by Parent, and (iv) appoint the Noteholder
Representative as its attorney-in-fact with the powers and authority as set forth in this Agreement and agreeing that all the acts of
the Noteholder Representative taken in connection with this Agreement shall be binding on such Noteholder.


 


(e)       Cancellation
of Shares. At the Effective Time, all shares of Company Capital Stock will no longer be outstanding and all shares of Company Capital
Stock will be cancelled and retired and will cease to exist, and each holder of (i) a certificate formerly representing any shares of
Company Capital Stock (each, a “Certificate”) or (ii) any book-entry shares which immediately prior to the Effective Time
represented shares of Company Capital Stock (each, a “Book-Entry Share”) will cease to have any rights with respect thereto,
except the right to receive the Per Share Cash-Out Consideration. The aggregate cash consideration to be paid by Parent and Merger Sub
with respect to the Merger shall be the Per Share Cash Out Consideration.


 


(f)       Fractional
Shares. No certificates or scrip representing fractional shares of Parent Common Shares shall be issued in connection with the Exchange
Consideration and Earn-Out Shares and such fractional share interests shall not entitle the owner thereof to vote or to any other rights
of a holder of shares of Parent Common Shares. Notwithstanding any other provision of this Agreement, each Noteholder entitled to Parent
Common Shares hereunder who would otherwise have been entitled to receive a fraction of a share of Parent Common Shares (after taking
into account all Notes exchanged by such holder and the Earn-Out Shares to be issued pursuant to Section 2.07, as the case may be) shall
in lieu thereof receive in cash (rounded to the nearest whole cent), without interest, an amount equal to such fractional amount multiplied
by the last reported sale price of Parent Common Shares on the Nasdaq Stock Market (“Nasdaq”) on the last complete trading
day prior to the (i) date of the Effective Time for the Exchange Consideration, or as the case may be (ii) date the respective Milepost
is achieved.


 


Section 2.02Exchange Procedures; Exchange Fund.


 


(a)Exchange Agent. Prior to the Effective
Time, Parent shall appoint Odyssey Trust Company as exchange agent (the “Exchange Agent”) to act as the agent for the purpose
of paying the Exchange Consideration and Earn-Out Shares for the Notes. At or promptly following the Effective Time, Parent shall deposit,
or cause the Surviving Corporation to deposit, with the Exchange Agent: (i) certificates representing the shares of Parent Common Shares
to be issued as Exchange Consideration or Earn-Out Shares (or make appropriate alternative arrangements if uncertificated shares of Parent
Common Shares represented by book-entry shares will be issued). Parent shall act as the agent for the purpose of paying (i) the Per Share
Cash-Out Consideration for the Certificates and the Book Entry Shares, and (ii) cash sufficient to make payments in lieu of fractional
shares pursuant to Section 2.01(f). Such cash and shares of Parent Common Shares, are referred to collectively in this Agreement as the
“Exchange Fund.”


 


 






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(b)Procedures for Surrender; No Interest.
Promptly after the Effective Time, Parent or the Exchange Agent, as the case may be, shall send, to each record holder of shares of Company
Capital Stock and Noteholder at the Effective Time, whose Company Capital Stock was converted pursuant to Section 2.01(a) into the right
to receive the Per Share Cash-Out Consideration, and whose Note was exchanged pursuant to Section 2.01(d) into the right to receive the
Exchange Consideration, a letter of transmittal and instructions (which shall specify that the delivery shall be effected, and risk of
loss and title shall pass, only upon proper delivery of the Certificates or transfer of the Book Entry Shares, or as the case may be,
cancelled Note or affidavit of loss of such Note to Parent or the Exchange Agent, as the case may be and which letter of transmittal will
be in customary form and have such other provisions as Parent and the Surviving Corporation may reasonably specify) for use in such exchange.
Each holder of shares of Company Capital Stock that have been converted into the right to receive the Per Share Cash-Out Consideration
shall be entitled to receive the Per Share Cash-Out Consideration upon: (i) surrender to the Exchange Agent of a Certificate; or (ii)
receipt of an “agent’s message” by the Parent (or such other evidence, if any, of transfer as Exchange Agent may reasonably
request) in the case of Book Entry Shares, in each case, together with a duly completed and validly executed letter of transmittal and
such other documents as my be reasonably be requested by Parent. No interest shall be paid or accrued upon the surrender or transfer of
any Certificate or Book Entry Share. Upon payment of the Per Share Cash-Out Consideration pursuant to the provisions of this Article II,
each Certificate, Certificates or Book Entry Shares so surrendered or transferred, as the case may be, shall immediately be cancelled.
Each Noteholder who has agreed to receive the Exchange Consideration in exchange for such Note and any cash in lieu of fractional shares
which the Noteholder has the right to receive pursuant to Section 2.01(f) upon surrender to the Exchange Agent of a cancelled Note or
affidavit of loss of such Note, together with a duly completed and validly executed letter of transmittal and such other documents as
may reasonably be requested by the Exchange Agent. Upon payment of the Exchange Consideration or right to Earn-Out Shares pursuant to
the provisions of this Article II, each Note so surrendered or transferred, as the case may be, shall immediately be cancelled.


 


(c)Payments to Non-Registered Holders.
If any portion of the Per Share Cash-Out Consideration is to be paid to a Person or other than the Person in whose name the surrendered
Certificate or the transferred Book Entry Share, as applicable, is registered, or as the case may be, if any portion of the Exchange Consideration
or Earn-Out Shares is to be paid to a Person other than the Person in whose name the surrendered and cancelled Note or affidavit of loss
of such Note, as applicable, is registered, it shall be a condition to such payment that: (i) such Certificate, or such cancelled Note
or affidavit of loss of such Note shall be properly endorsed or shall otherwise be in proper form for transfer, or such Book Entry Shares
shall be property transferred; and (ii) the Person requesting such payment shall pay to the Exchange Agent any transfer or other Tax required
as a result of such payment to a Person other than the registered holder of such Certificate, Book Entry Share, or the cancelled Note
or affidavit of loss of such Note, as applicable, or establish to the reasonable satisfaction of the Exchange Agent that such Tax has
been paid or is not payable.


 


(d)Full Satisfaction.


 


(i)                
All Per Share Cash-Out Consideration paid upon the surrender of Certificates or transfer of the Book Entry Shares, in accordance with
the terms hereof shall be deemed to have been paid in full satisfaction of all rights pertaining to the shares of the Company Capital
Stock formerly represented by such Certificate or Book Entry Shares and from and after the Effective Time, there shall be no further registration
or transfers of shares of Company Capital Stock on the stock transfer books of the Surviving Corporation. If, after the Effective Time,
Certificates or Book Entry Shares are presented to the Surviving Corporation, they shall be cancelled and exchanged as provided in this
Article II.


 


 






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(ii)              
All Exchange Consideration paid or right to receive Earn-Out Shares upon the surrender of the cancelled Note or affidavit of loss of such
Note in accordance with the terms hereof shall be deemed to have been paid in full satisfaction of all rights pertaining to the Notes
formerly represented by such the cancelled Note or affidavit of loss of such Note, and from and after the Effective Time, there shall
be no further registration of transfers of Notes transfer books of the Surviving Corporation. If, after the Effective Time, Notes are
presented to the Surviving Corporation, they shall be cancelled and exchanged as provided in this Article II.


 


(e)Termination of Exchange Fund. Any
portion of the Exchange Fund that remains unclaimed by the Noteholders or holders of shares of Company Capital Stock six (6) months after
the Effective Time shall be returned to Parent, upon demand, and any such holder of Company Capital Stock who has not exchanged shares
of Company Capital Stock for the Per Share Cash-Out Consideration or Noteholder who has not exchanged Notes for the Exchange Consideration
in accordance with this Section 2.02 prior to that time shall thereafter look only to Parent (subject to abandoned property, escheat,
or other similar Laws), as general creditors thereof, for payment of the Exchange Consideration or the Per Share Cash-Out Consideration,
as the case may be, without any interest. Notwithstanding the foregoing, Parent shall not be liable to any holder of shares of Company
Capital Stock or Noteholder for any amounts paid to a public official pursuant to applicable abandoned property, escheat, or similar Laws.
Any amounts remaining unclaimed by holders of shares of Company Capital Stock or Noteholders two (2) years after the Effective Time (or
such earlier date, immediately prior to such time when the amounts would otherwise escheat to or become property of any Governmental Entity)
shall become, to the extent permitted by applicable Law, the property of Parent free and clear of any claims or interest of any Person
previously entitled thereto.


 


(f)Distributions with Respect to Unsurrendered
Notes. The Exchange Consideration to be issued for the cancellation of the Notes pursuant to the Merger shall be deemed issued and
outstanding as of the Effective Time and whenever a dividend or other distribution is declared by Parent in respect of the Parent Common
Shares, the record date for which is after the Effective Time, that declaration shall include dividends or other distributions in respect
of all shares issuable pursuant to this Agreement. No dividends or other distributions in respect of the Parent Common Shares shall be
paid to any holder of any unsurrendered Notes until the Note or affidavit of loss in lieu of the Note is surrendered for exchange in accordance
with this Section 2.02. Subject to the effect of applicable Laws, following such surrender, there shall be issued or paid to the Noteholder
the Parent Common Shares issued in exchange for the Notes in accordance with this Section 2.02, without interest: (i) at the time of such
surrender, the dividends or other distributions with a record date after the Effective Time theretofore payable with respect to such whole
shares of Parent Common Shares and not paid; and (ii) at the appropriate payment date, the dividends or other distributions payable with
respect to such whole shares of Parent Common Shares with a record date after the Effective Time but with a payment date subsequent to
surrender.


 


Section 2.03Adjustments. Without limiting the other provisions
of this Agreement, if at any time during the period between the date of this Agreement and the Effective Time, any change in the outstanding
shares of capital stock of the Company or the Parent Common Shares shall occur (other than the issuance of additional shares of capital
stock of the Company or Parent as permitted by this Agreement), including by reason of any reclassification, recapitalization, stock split
(including a reverse stock split), or combination, exchange, readjustment of shares, or similar transaction, or any stock dividend or
distribution paid in stock, the Exchange Consideration and any other amounts payable pursuant to this Agreement shall be appropriately
adjusted to reflect such change; provided, however, that this sentence shall not be construed to permit Parent or the Company to take
any action with respect to its securities that is prohibited by the terms of this Agreement.


 


 






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Section 2.04Withholding Rights. Each of the Exchange Agent,
Parent, Merger Sub, and the Surviving Corporation shall be entitled to deduct and withhold from the consideration otherwise payable to
any Person pursuant to this Article II such amounts as may be required to be deducted and withheld with respect to the making of such
payment under any Tax Laws. To the extent that amounts are so deducted and withheld by the Exchange Agent, Parent, Merger Sub, or the
Surviving Corporation, as the case may be, such amounts shall be treated for all purposes of this Agreement as having been paid to the
Person in respect of which the Exchange Agent, Parent, Merger Sub, or the Surviving Corporation, as the case may be, made such deduction
and withholding.


 


Section 2.05Lost Certificates or Notes. If any Certificate
or Note shall have been lost, stolen, or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate
or Note to be lost, stolen, or destroyed and, if required by Parent, the posting by such Person of a bond, in such reasonable amount as
Parent may direct, as indemnity against any claim that may be made against it with respect to such Certificate or Note, the Exchange Agent
will issue, in exchange for such lost, stolen, or destroyed (i) Certificate, the Per Share Cash-Out Consideration to be paid in respect
of the shares of Company Capital Stock formerly represented by such Certificate as contemplated under this Article II, or (ii) the Exchange
Consideration to be paid in respect of the Notes as contemplated under this Article II.


 


Section 2.06Tax Treatment. The Parties hereto make no representation
as to the U.S. federal income Tax treatment of the Merger or Parent Common Shares to be issued in connection with this Agreement.


 


Section 2.07Earn-Out Shares.


 


(a)               
In addition to the Exchange Consideration, Parent agrees to issue up to 2,000,000 Parent Common Shares (“Earn-Out Shares”)
to the former Noteholders as set forth in Schedule 1 and who signed the Release immediately prior to the Effective Time provided
that Surviving Corporation achieves the following Mileposts by the end of the seventh anniversary of the Closing Date (the “Milepost
Deadline”). All revenue recognized under this Section 2.07 will be determined in accordance with IFRS, consistently applied.


 


	Milepost 	 	Number of Parent 

Common Shares
	Surviving Corporation cumulative revenue recognized following the Effective Time in excess of $4,521,630 (the “First Milepost”) on or before the Milepost Deadline.	 	500,000
	Surviving Corporation cumulative revenue recognized following completion of the First Milepost in excess of $9,244,802 (the “Second Milepost”) on or before the Milepost Deadline.	 	500,000
	Surviving Corporation cumulative revenue recognized following completion of the Second Milepost in excess of $17,730,216 (the “Third Milepost”) on or before the Milepost Deadline.	 	500,000
	Surviving Corporation cumulative revenue recognized following completion of the Third Milepost in excess of $33,371,818 (the “Fourth Milepost”) on or before the Milepost Deadline.	 	 500,000 or such lesser number based on a pro rata amount of Surviving Corporation’s revenue recognized relative to the Fourth Milepost


 


 






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(b)               
The number of Earn-Out Shares to be issued under this Section 2.07 to each former Noteholder, who is a holder immediately prior to the
Effective Time, will be equal to the quotation of the number of Earn-Out Shares to be issued upon achievement of the respective Milepost
as set forth in Schedule 1. No fractional shares will be issue and in lieu thereof, cash will be determined and issued in accordance with
Section 2.01(f).


 


(c)        In the
event that after the Closing Date and before expiration of Milepost Deadline, there occurs (i) a sale or other disposition of all or substantially
all of the assets of Surviving Corporation which is not in the ordinary course of business, or (ii) a merger, consolidation, recapitalization
or other transaction with another entity in which the Surviving Corporation is not the continuing and surviving entity (“Acceleration
Event”), the unearned and unissued Earn-Out Shares shall be accelerated and issued within 30 days of the occurrence of the Acceleration
Event, to the former Noteholders, who are holders immediately prior to the Effective Time, and such Earn-Out Shares shall be issued to
such former Noteholders pursuant to 2.07(b) and Schedule 1. Notwithstanding the forgoing, provided that: (i) Parent has provided the Surviving
Corporation with working capital funding of up to $2,500,000 pursuant to Section 5.18 of which such $2,500,000 includes advances paid
by Parent to the Company prior to this Agreement; (ii) Parent and Surviving Corporation have complied with the post-Closing covenants
contained in Section 5.19; and (iii) Parent has not, without the prior approval of Scilla Andreen, burdened the Surviving Corporation
with any debt or expenditures that are not contemplated in the Business Objectives, Parent will have the right to cease the operations
of, or liquidate or otherwise dispose of, the Surviving Corporation in the event that the Surviving Corporation is unable to timely pay
its expenses and obligations when due from its revenues and such cessation, liquidation or disposal will not be deemed an Acceleration
Event. Provided further, that if Parent ceases operations of or liquidates or otherwise disposes of the Surviving Corporation, then the
Noteholders shall be entitled to receive the number of Earn-Out Shares that are earned based on a pro rata amount of Surviving Corporation’s
revenue recognized relative to the next Milepost.


 


(d) If any change in the outstanding shares of Parent
Common Shares by reason of any reclassification, recapitalization, stock split (including a reverse stock split), or combination, exchange,
readjustment of shares, or similar transaction, or any stock dividend or distribution paid in stock, occurs after the Closing and before
the Milestone Deadline, the unearned and unissued Earn-Out Shares at such time shall be appropriately adjusted to reflect such change.


 


2.08.       Restricted
Securities.


 


(a)       The Company
is aware and will ensure that each of its Noteholders is aware, that the offer or sale of the Parent Common Shares to be issued as Exchange
Consideration and Earn-Out Shares have not been registered under the Securities Act, or under any state securities law. The Company understands
and will ensure that each of its Noteholders understands that the Exchange Consideration and Earn-Out Shares will be characterized as
“restricted securities” under United States Federal and state securities laws and that under such laws and applicable regulations
such securities may be resold without registration under the Securities Act only in certain limited circumstances. The Company agrees
and will ensure that each Noteholder agrees that the Noteholder will not sell all or any portion of the Exchange Consideration and Earn-Out
Shares except pursuant to registration under the Securities Act or pursuant to an available exemption from registration under the Securities
Act. The Company understands and will ensure that each Noteholder understands that each certificate for the shares of the Exchange Consideration
and Earn-Out Shares issued to the Noteholder or to any subsequent transferee shall be stamped or otherwise imprinted with the legend set
forth below summarizing the restrictions described in this Section 2.08(a) and that such Noteholder shall not transfer the Exchange Consideration
and Earn-Out Shares except in accordance with such restrictions:


 


 






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THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, IN WHICH CASE THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH
TO THE COMPANY AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE
OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. ANY ATTEMPT TO TRANSFER OR SELL SUCH SECURITY IN VIOLATION OF
THESE RESTRICTIONS SHALL BE VOID.


 


(b)       No Registration.
The Company understands and will ensure that each Company Noteholder will understand that Parent is under no obligation to register the
Exchange Consideration and Earn-Out Shares under the Securities Act, or to assist the Company shareholder in complying with the Securities
Act or the securities laws of any state of the United States or of any foreign jurisdiction.


 


ARTICLE III


REPRESENTATIONS AND WARRANTIES OF THE COMPANY


 


Except as set forth in the correspondingly numbered
Section of the Company Disclosure Schedule that relates to such Section or in another Section of the Company Disclosure Schedule to the
extent that it is reasonably apparent on the face of such disclosure that such disclosure is applicable to such Section, the Company hereby
represents and warrants to Parent and Merger Sub as follows:


 


Section 3.01Organization; Standing and Power; Charter Documents;
Subsidiaries.


 


(a)Organization; Standing and Power.
The Company and each of its Subsidiaries is a corporation, limited liability company, or other legal entity duly organized, validly existing,
and in good standing under the Laws of its jurisdiction of organization, and has the requisite corporate, limited liability company, or
other organizational, as applicable, power and authority to own, lease, and operate its assets and to carry on its business as now conducted.
Each of the Company and its Subsidiaries is duly qualified or licensed to do business as a foreign corporation, limited liability company,
or other legal entity and is in good standing in each jurisdiction where the character of the assets and properties owned, leased, or
operated by it or the nature of its business makes such qualification or license necessary, except where the failure to be so qualified
or licensed or to be in good standing, would not reasonably be expected to have, individually or in the aggregate, a Company Material
Adverse Effect.


 


 






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(b)Charter Documents. The copies of
the Certificate of Incorporation and By-Laws of the Company are true, correct, and complete copies of such documents as in effect as of
the date of this Agreement. The Company has delivered or made available to Parent a true and correct copy of the Charter Documents of
each of the Company’s Subsidiaries. Neither the Company nor any of its Subsidiaries is in violation of any of the provisions of
its Charter Documents.


 


(c)Subsidiaries. Section 3.01(c)(i)
of the Company Disclosure Schedule lists each of the Subsidiaries of the Company as of the date hereof and its place of organization.
Section 3.01(c)(ii) of the Company Disclosure Schedule sets forth, for each Subsidiary that is not, directly or indirectly, wholly-owned
by the Company: (i) the number and type of any capital stock of, or other equity or voting interests in, such Subsidiary that is outstanding
as of the date hereof; and (ii) the number and type of shares of capital stock of, or other equity or voting interests in, such Subsidiary
that, as of the date hereof, are owned, directly or indirectly, by the Company. All of the outstanding shares of capital stock of, or
other equity or voting interests in, each Subsidiary of the Company that is owned directly or indirectly by the Company have been validly
issued, were issued free of pre-emptive rights, are fully paid and non-assessable, and are free and clear of all Liens, including any
restriction on the right to vote, sell, or otherwise dispose of such capital stock or other equity or voting interests, except for any
Liens: (A) imposed by applicable securities Laws; or (B) arising pursuant to the Charter Documents of any non-wholly-owned Subsidiary
of the Company. Except for the capital stock of, or other equity or voting interests in, its Subsidiaries, the Company does not own, directly
or indirectly, any capital stock of, or other equity or voting interests in, any Person.


 


Section 3.02Capital Structure.


 


(a)Capital Stock. The number of authorized
capital stock of the Company authorized is 25,998,498 consisting of: (i) 17,000,00 shares of Common Stock, par value $0.0001 per share
(“Company Common Stock”); and (ii) 8,998,498 shares of preferred stock, par value $0.0001 per share. As of the date of this
Agreement: (A) 2,222,336 shares of Company Common Stock were issued and outstanding; and (B) 4,944,444 shares of Series A Preferred Stock
and 1,993,241 shares of Series B Preferred Stock were issued and outstanding. All of the outstanding shares of capital stock of the Company
are, and all shares of capital stock of the Company which may be issued as contemplated or permitted by this Agreement will be, when issued,
duly authorized, validly issued, fully paid, and non-assessable, and not subject to any pre-emptive rights and free and clear of all Liens.
All outstanding shares of capital stock of the Company have been and will have been issued in compliance with federal securities and state
securities or “blue sky” Laws. No Subsidiary of the Company owns any shares of Company Capital Stock. A true, current and
complete stockholder list as of the date hereof and Closing Date, containing the registered stockholder, the number of shares owned by
such registered holder, date of acquisition, and address has been and will be provided to the Parent.


 


(b)Stock Awards and Convertible Securities.


 


(i)As of the date of this Agreement, 4,227,648
shares of Company Common Stock were reserved for issuance pursuant to outstanding Company Stock Options. Section 3.02(b)(i) of the Company
Disclosure Schedule sets forth as of the date of this Agreement a list of each outstanding Company Equity Award granted under the Company
Stock Plans and: (A) the name of the holder of such Company Equity Award; (B) the number of shares of Company Capital Stock subject to
such outstanding Company Equity Award; (C) if applicable, the exercise price, purchase price, or similar pricing of such Company Equity
Award; (D) the date on which such Company Equity Award was granted or issued; (E) the applicable vesting, repurchase, or other lapse of
restrictions schedule, and the extent to which such Company Equity Award is vested and exercisable as of the date hereof; and (F) with
respect to Company Stock Options, the date on which such Company Stock Option expires. All shares of Company Capital Stock subject to
issuance under the Company Stock Plans, upon issuance in accordance with the terms and conditions specified in the instruments pursuant
to which they are issuable, will be duly authorized, validly issued, fully paid, and non-assessable.


 


 






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(ii)Except for the Company Stock Plans and as
set forth in Section 3.02(b)(ii) of the Company Disclosure Schedule, there are no Contracts to which the Company is a party obligating
the Company to accelerate the vesting of any Company Equity Award as a result of the transactions contemplated by this Agreement (whether
alone or upon the occurrence of any additional or subsequent events). Other than the Company Equity Awards and except for the Notes as
set forth on Schedule 2, there are no outstanding: (A) securities of the Company or any of its Subsidiaries convertible into or
exchangeable for shares of capital stock of the Company; (B) options, warrants, or other agreements or commitments to acquire from the
Company or any of its Subsidiaries, or obligations of the Company or any of its Subsidiaries to issue, any shares of capital stock of
(or securities convertible into or exchangeable for shares of capital stock of) the Company; or (C) restricted shares, restricted stock
units, stock appreciation rights, performance shares, profit participation rights, contingent value rights, “phantom” stock,
or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price
of, any shares of capital stock of the Company, in each case that have been issued by the Company or its Subsidiaries (the items in clauses
(A), (B), and (C), together with the capital stock of the Company, being referred to collectively as “Company Securities”).
All outstanding shares of Company Capital Stock, all outstanding Company Equity Awards, and all outstanding shares of capital stock, voting
securities, or other ownership interests in any Subsidiary of the Company, have been issued or granted, as applicable, in compliance in
all material respects with all applicable securities Laws.


 


(iii)There are no outstanding Contracts requiring
the Company or any of its Subsidiaries to repurchase, redeem, or otherwise acquire any Company Securities or Company Subsidiary Securities.
Neither the Company nor any of its Subsidiaries is a party to any voting agreement with respect to any Company Securities or Company Subsidiary
Securities.


 


(c)Voting Debt. There are no bonds,
debentures, notes, or other indebtedness issued by the Company or any of its Subsidiaries: (i) having the right to vote on any matters
on which stockholders or equity holders of the Company or any of its Subsidiaries may vote (or which is convertible into, or exchangeable
for, securities having such right); or (ii) the value of which is directly based upon or derived from the capital stock, voting securities,
or other ownership interests of the Company or any of its Subsidiaries, are issued or outstanding (collectively, “Voting Debt”).


 


(d)Company Subsidiary Securities. As
of the date hereof, there are no outstanding: (i) securities of the Company or any of its Subsidiaries convertible into or exchangeable
for Voting Debt, capital stock, voting securities, or other ownership interests in any Subsidiary of the Company; (ii) options, warrants,
or other agreements or commitments to acquire from the Company or any of its Subsidiaries, or obligations of the Company or any of its
Subsidiaries to issue, any Voting Debt, capital stock, voting securities, or other ownership interests in (or securities convertible into
or exchangeable for capital stock, voting securities, or other ownership interests in) any Subsidiary of the Company; or (iii) restricted
shares, restricted stock units, stock appreciation rights, performance shares, profit participation rights, contingent value rights, “phantom”
stock, or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value
or price of, any capital stock or voting securities of, or other ownership interests in, any Subsidiary of the Company, in each case that
have been issued by a Subsidiary of the Company (the items in clauses (i), (ii), and (iii), together with the capital stock, voting securities,
or other ownership interests of such Subsidiaries, being referred to collectively as “Company Subsidiary Securities”).


 


 






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Section 3.03Authority; Non-Contravention; Governmental Consents;
Board Approval; Anti-Takeover Statutes.


 


(a)Authority. The Company has all requisite
corporate power and authority to enter into and to perform its obligations under this Agreement and, subject to, in the case of the consummation
of the Merger, adoption of this Agreement by the affirmative vote or consent of the holders of a majority of the outstanding shares of
Company Common Stock, Series A Preferred Stock and Series B Preferred Stock, each voting as a separate class and/or series and voting
together in the aggregate (the “Requisite Company Vote”), to consummate the transactions contemplated by this Agreement. The
execution and delivery of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby have
been duly authorized by all necessary corporate action on the part of the Company and no other corporate proceedings on the part of the
Company are necessary to authorize the execution and delivery of this Agreement or to consummate the Merger and the other transactions
contemplated hereby, subject only, in the case of consummation of the Merger, to the receipt of the Requisite Company Vote. The Requisite
Company Vote is the only vote or consent of the holders of any class or series of the Company’s capital stock necessary to approve
and adopt this Agreement, approve the Merger, and consummate the Merger and the other transactions contemplated hereby. This Agreement
has been duly executed and delivered by the Company and, assuming due execution and delivery by Parent and Merger Sub, constitutes the
legal, valid, and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability
may be limited by bankruptcy, insolvency, moratorium, and other similar Laws affecting creditors’ rights generally and by general
principles of equity.


 


(b)Non-Contravention. The execution,
delivery, and performance of this Agreement by the Company, and the consummation by the Company of the transactions contemplated by this
Agreement, including the Merger, do not and will not: (i) subject to obtaining the Requisite Company Vote, contravene or conflict with,
or result in any violation or breach of, the Charter Documents of the Company or any of its Subsidiaries; (ii) assuming that all Consents
contemplated by clauses (i) through (iv) of Section 3.03(c) have been obtained or made and, in the case of the consummation of the Merger,
obtaining the Requisite Company Vote, conflict with or violate any Law applicable to the Company, any of its Subsidiaries, or any of their
respective properties or assets; (iii) result in any breach of or constitute a default (or an event that with notice or lapse of time
or both would become a default) under, result in the Company’s or any of its Subsidiaries’ loss of any benefit or the imposition
of any additional payment or other liability under, or alter the rights or obligations of any third party under, or give to any third
party any rights of termination, amendment, acceleration, or cancellation, or require any Consent under, any Contract to which the Company
or any of its Subsidiaries is a party or otherwise bound as of the date hereof; or (iv) result in the creation of a Lien (other than Permitted
Liens) on any of the properties or assets of the Company or any of its Subsidiaries, except, in the case of each of clauses (ii), (iii),
and (iv), for any conflicts, violations, breaches, defaults, loss of benefits, additional payments or other liabilities, alterations,
terminations, amendments, accelerations, cancellations, or Liens that, or where the failure to obtain any Consents, in each case, would
not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.


 


(c)Governmental Consents. No consent,
approval, order, or authorization of, or registration, declaration, or filing with, or notice to (any of the foregoing being a “Consent”),
any supranational, national, state, municipal, local, or foreign government, any instrumentality, subdivision, court, administrative agency
or commission, or other governmental authority, or any quasi-governmental or private body exercising any regulatory or other governmental
or quasi-governmental authority (a “Governmental Entity”) is required to be obtained or made by the Company in connection
with the execution, delivery, and performance by the Company of this Agreement or the consummation by the Company of the Merger and other
transactions contemplated hereby, except for: (i) the filing of the Certificate of Merger with the Secretary of State of the State of
Delaware; (ii) such Consents as may be required under applicable Federal securities and state securities or “blue sky” Laws
and the securities Laws of any foreign country or the rules and regulations of the Nasdaq; (iii) the other Consents of Governmental Entities
listed in Section 3.03(c) of the Company Disclosure Schedule (the “Other Governmental Approvals”); and (iv) such other Consents
which if not obtained or made would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.


 


 






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(d)Board Approval. The Company Board,
by resolutions duly adopted by a vote at a meeting of all directors of the Company duly called and held and, not subsequently rescinded
or modified in any way, has: (i) determined that this Agreement and the transactions contemplated hereby, including the Merger, upon the
terms and subject to the conditions set forth herein, are fair to, and in the best interests of, the Company and the Company’s stockholders;
(ii) approved and declared advisable this Agreement, including the execution, delivery, and performance thereof, and the consummation
of the transactions contemplated by this Agreement, including the Merger, upon the terms and subject to the conditions set forth herein;
(iii) directed that this Agreement be submitted to a vote of the Company’s stockholders for adoption at the Company Stockholders
Meeting; and (iv) resolved to recommend that Company stockholders vote in favor of adoption of this Agreement in accordance with the DGCL
(collectively, the “Company Board Recommendation”).


 


(e)The Company Board has taken all actions
so that the restrictions contained in Section 203 of the DGCL applicable to a “business combination” (as defined in such Section
203) will not apply to the execution, delivery, or performance of this Agreement and the consummation of the Merger and the other transactions
contemplated by this Agreement.


 


Section 3.04Financial Statements; Undisclosed Liabilities; Off-Balance
Sheet Arrangements.


 


(a)Financial Statements. Each of the
consolidated financial statements for the year ended December 31, 2019 and 2020 was (i) prepared in accordance with past practice applied
on a consistent basis throughout the periods involved; and (ii) fairly presented in all material respects the consolidated financial position
and the results of operations of the Company and its consolidated Subsidiaries as of the respective dates of and for the periods referred
to in such financial statements.


 


(b)Undisclosed Liabilities. The balance
sheet of the Company dated as of December 31, 2020 is hereinafter referred to as the “Company Balance Sheet.” Neither the
Company nor any of its Subsidiaries has any Liabilities other than Liabilities that: (i) are reflected or reserved against in the Company
Balance Sheet; (ii) were incurred since the date of the Company Balance Sheet in the ordinary course of business consistent with past
practice; (iii) are incurred in connection with the transactions contemplated by this Agreement; or (iv) would not reasonably be expected
to have, individually or in the aggregate, a Company Material Adverse Effect.


 


(c)Off-Balance Sheet Arrangements. Neither
the Company nor any of its Subsidiaries is a party to, or has any commitment to become a party to: (i) any joint venture, off-balance
sheet partnership, or any similar Contract or arrangement (including any Contract or arrangement relating to any transaction or relationship
between or among the Company or any of its Subsidiaries, on the one hand, and any other Person, including any structured finance, special
purpose, or limited purpose Person, on the other hand); or (ii) any “off-balance sheet arrangements”.


 


Section 3.05Absence of Certain Changes or Events. Since
the date of the Company Balance Sheet, except in connection with the execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby, the business of the Company and each of its Subsidiaries has been conducted in the ordinary course
of business consistent with past practice and there has not been or occurred:


 


(a)any Company Material Adverse Effect or any
event, condition, change, or effect that could reasonably be expected to have, individually or in the aggregate, a Company Material Adverse
Effect; or


 


 






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(b)any event, condition, action, or effect
that, if taken during the period from the date of this Agreement through the Effective Time, would constitute a breach of Section 5.01.


 


Section 3.06Taxes.


 


(a)Tax Returns and Payment of Taxes.
The Company and each of its Subsidiaries have duly and timely filed or caused to be filed (taking into account any valid extensions) all
material Tax Returns required to be filed by them. Such Tax Returns are true, complete, and correct in all material respects. Neither
Company nor any of its Subsidiaries is currently the beneficiary of any extension of time within which to file any Tax Return other than
extensions of time to file Tax Returns obtained in the ordinary course of business consistent with past practice. All material Taxes due
and owing by the Company or any of its Subsidiaries (whether or not shown on any Tax Return) have been timely paid or, where payment is
not yet due, the Company has made an adequate provision for such Taxes in the Company’s financial statements. Neither the Company
nor any of its Subsidiaries has incurred any material Liability for Taxes since the date of the Company’s most recent financial
statements outside of the ordinary course of business or otherwise inconsistent with past practice.


 


(b)Availability of Tax Returns. The
Company has made available to Parent complete and accurate copies of all federal, state, local, and foreign income, franchise, and other
material Tax Returns filed by or on behalf of the Company or its Subsidiaries for any Tax period ending after December 31, 2018.


 


(c)Withholding. The Company and each
of its Subsidiaries have withheld and timely paid each material Tax required to have been withheld and paid in connection with amounts
paid or owing to any Company Employee, creditor, customer, stockholder, or other party (including, without limitation, withholding of
Taxes pursuant to Sections 1441 and 1442 of the Code or similar provisions under any state, local, and foreign Laws), and materially complied
with all information reporting and backup withholding provisions of applicable Law.


 


(d)Liens. There are no Liens for material
Taxes upon the assets of the Company or any of its Subsidiaries other than for current Taxes not yet due and payable or for Taxes that
are being contested in good faith by appropriate proceedings.


 


(e)Tax Deficiencies and Audits. No deficiency
for any material amount of Taxes which has been proposed, asserted, or assessed in writing by any taxing authority against the Company
or any of its Subsidiaries remains unpaid. There are no waivers or extensions of any statute of limitations currently in effect with respect
to Taxes of the Company or any of its Subsidiaries. There are no audits, suits, proceedings, investigations, claims, examinations, or
other administrative or judicial proceedings ongoing or pending with respect to any material Taxes of the Company or any of its Subsidiaries.


 


(f)Tax Jurisdictions. No claim has ever
been made in writing by any taxing authority in a jurisdiction where the Company and its Subsidiaries do not file Tax Returns that the
Company or any of its Subsidiaries is or may be subject to Tax in that jurisdiction.


 


(g)Tax Rulings. Neither the Company
nor any of its Subsidiaries has requested or is the subject of or bound by any private letter ruling, technical advice memorandum, or
similar ruling or memorandum with any taxing authority with respect to any material Taxes, nor is any such request outstanding.


 


 






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(h)Consolidated Groups, Transferee Liability,
and Tax Agreements. Neither Company nor any of its Subsidiaries: (i) has been a member of a group filing Tax Returns on a consolidated,
combined, unitary, or similar basis; (ii) has any material liability for Taxes of any Person (other than the Company or any of its Subsidiaries)
under Treasury Regulation Section 1.1502-6 (or any comparable provision of local, state, or foreign Law), as a transferee or successor,
by Contract, or otherwise; or (iii) is a party to, bound by or has any material liability under any Tax sharing, allocation, or indemnification
agreement or arrangement.


 


(i)Change in Accounting Method. Neither
Company nor any of its Subsidiaries has agreed to make, nor is it required to make, any material adjustment under Section 481(a) of the
Code or any comparable provision of state, local, or foreign Tax Laws by reason of a change in accounting method or otherwise.


 


(j)Ownership Changes. Without regard
to this Agreement, neither the Company nor any of its Subsidiaries has undergone an “ownership change” within the meaning
of Section 382 of the Code.


 


Section 3.07Intellectual Property.


 


(a)Scheduled Company-Owned IP. Section
3.07(a) of the Company Disclosure Schedule contains a true and complete list, as of the date hereof, of all: (i) Company-Owned IP that
is the subject of any issuance, registration, certificate, application, or other filing by, to or with any Governmental Entity or authorized
private registrar, including patents, patent applications, trademark registrations and pending applications for registration, copyright
registrations and pending applications for registration, and internet domain name registrations; and (ii) material unregistered Company-Owned
IP.


 


(b)Right to Use; Title. The Company
or one of its Subsidiaries is the sole and exclusive legal and beneficial owner of all right, title, and interest in and to the Company-Owned
IP, and has the valid and enforceable right to use all other Intellectual Property used in or necessary for the conduct of the business
of the Company and its Subsidiaries as currently conducted and as proposed to be conducted (“Company IP”), in each case, free
and clear of all Liens other than Permitted Liens, except as would not reasonably be expected to have, individually or in the aggregate,
a Company Material Adverse Effect.


 


(c)Validity and Enforceability. The
Company and its Subsidiaries’ rights in the Company-Owned IP are valid, subsisting, and enforceable, except as would not reasonably
be expected to have, individually or in the aggregate, a Company Material Adverse Effect. The Company and each of its Subsidiaries have
taken reasonable steps to maintain the Company IP and to protect and preserve the confidentiality of all trade secrets included in the
Company IP, except where the failure to take such actions would not reasonably be expected to have, individually or in the aggregate,
a Company Material Adverse Effect.


 


(d)Non-Infringement. Except as would
not be reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, to the Knowledge of the Company:
(i) the conduct of the businesses of the Company and any of its Subsidiaries has not infringed, misappropriated, or otherwise violated,
and is not infringing, misappropriating, or otherwise violating, any Intellectual Property of any other Person; and (ii) no third party
is infringing upon, violating, or misappropriating any Company IP.


 


 






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(e)IP Legal Actions and Orders. There
are no Legal Actions pending or, to the Knowledge of the Company, threatened: (i) alleging any infringement, misappropriation, or violation
by the Company or any of its Subsidiaries of the Intellectual Property of any Person; or (ii) challenging the validity, enforceability,
or ownership of any Company-Owned IP or the Company or any of its Subsidiaries’ rights with respect to any Company IP, in each case
except for such Legal Actions that would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse
Effect. The Company and its Subsidiaries are not subject to any outstanding Order that restricts or impairs the use of any Company-Owned
IP, except where compliance with such Order would not reasonably be expected to have, individually or in the aggregate, a Company Material
Adverse Effect.


 


(f)Company IT Systems. In the past three
(3) years, there has been no malfunction, failure, continued substandard performance, denial-of-service, or other cyber incident, including
any cyberattack, or other impairment of the Company IT Systems, in each case except as would not reasonably be expected to have, individually
or in the aggregate, a Company Material Adverse Effect. The Company and its Subsidiaries have taken all reasonable best effort steps to
safeguard the confidentiality, availability, security, and integrity of the Company IT Systems, including implementing and maintaining
appropriate backup, disaster recovery, and software and hardware support arrangements, in each case except as would not reasonably be
expected to have, individually or in the aggregate, a Company Material Adverse Effect.


 


(g)Privacy and Data Security. To the
Knowledge of the Company, the Company and each of its Subsidiaries have complied with all applicable Laws and all internal or publicly
posted policies, notices, and statements concerning the collection, use, processing, storage, transfer, and security of personal information
in the conduct of the Company’s and its Subsidiaries’ businesses, in each case except as would not reasonably be expected
to have, individually or in the aggregate, a Company Material Adverse Effect. Except as set forth in Section 3.07(g) of the Company Disclosure
Schedule, in the past three (3) years, the Company and its Subsidiaries have not: (i) experienced any actual, alleged, or suspected data
breach or other security incident involving personal information in their possession or control; or (ii) been subject to or received any
notice of any audit, investigation, complaint, or other Legal Action by any Governmental Entity or other Person concerning the Company’s
or any of its Subsidiaries’ collection, use, processing, storage, transfer, or protection of personal information or actual, alleged,
or suspected violation of any applicable Law concerning privacy, data security, or data breach notification, and to the Company’s
Knowledge, there are no facts or circumstances that could reasonably be expected to give rise to any such Legal Action, in each case except
as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.





(h)Scripts; Film and Distribution Rights.
The Company and its Subsidiaries do not have any right, title, or interest in or to any scripts.  Section 3.07(h) of the Company
Disclosure Schedule sets forth a list of all of the companies, subsidiaries or joint ventures, in which the Company or any Subsidiary
has an interest, film or distribution rights. The Company has, and/or each Subsidiary or joint venture has, valid and enforceable contracts
related to such film, production and distribution rights allowing the Company, Subsidiary or joint venture to lawfully develop, produce
and distribute the contents thereto. To the Knowledge of the Company, such production and distribution contracts owned by the Company,
Subsidiary or joint venture remain in full force and effect and the Company has not received any notice of a dispute.


 


(i)                
Streaming Services. The Company has valid and enforceable license agreements to provide the content material for its steaming services
except where the failure to have valid and enforceable license agreements would not become a Company Material Adverse Effect.


 


Section 3.08Compliance; Permits.


 


(a)Compliance. To the Knowledge of the
Company, the Company and each of its Subsidiaries are and, since January 1, 2018, have been in material compliance with, all Laws or Orders
applicable to the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries or any of their respective businesses
or properties is bound. Since January 1, 2018, no Governmental Entity has issued any notice or notification stating that the Company or
any of its Subsidiaries is not in compliance with any Law in any material respect.


 


 






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(b)Permits. The Company and its Subsidiaries
hold, to the extent necessary to operate their respective businesses as such businesses are being operated as of the date hereof, all
permits, licenses, registrations, variances, clearances, consents, commissions, franchises, exemptions, Orders, authorizations, and approvals
from Governmental Entities (collectively, “Permits”), except for any Permits for which the failure to obtain or hold would
not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. No suspension, cancellation,
non-renewal, or adverse modifications of any Permits of the Company or any of its Subsidiaries is pending or, to the Knowledge of the
Company, threatened, except for any such suspension or cancellation which would not reasonably be expected to have, individually or in
the aggregate, a Company Material Adverse Effect. The Company and each of its Subsidiaries is and, since January 1, 2018, has been in
compliance with the terms of all Permits, except where the failure to be in such compliance would not reasonably be expected to have,
individually or in the aggregate, a Company Material Adverse Effect.


 


Section 3.09Litigation. There is no Legal Action pending,
or to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries or any of their respective properties or
assets or, to the Knowledge of the Company, any officer or director of the Company or any of its Subsidiaries in their capacities as such.
None of the Company or any of its Subsidiaries or any of their respective properties or assets is subject to any order, writ, assessment,
decision, injunction, decree, ruling, or judgment of a Governmental Entity or arbitrator, whether temporary, preliminary, or permanent
(“Order”), which would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.
To the Knowledge of the Company, there are no governmental inquiries or investigations, or internal investigations pending or, to the
Knowledge of the Company, threatened, in each case regarding any accounting practices of the Company or any of its Subsidiaries or any
malfeasance by any officer or director of the Company.


 


Section 3.10Brokers’ and Finders’ Fees. Except
for fees previously paid to Cameron Thomson Group, pursuant to an engagement letter listed in Section 3.10 of the Company Disclosure Schedule,
a correct and complete copy of which has been provided to Parent, neither the Company nor any of its Subsidiaries has incurred, nor will
it incur, directly or indirectly, any liability for investment banker, brokerage, or finders’ fees or agents’ commissions,
or any similar charges in connection with this Agreement or any transaction contemplated by this Agreement.


 


Section 3.11Related Person Transactions. Except as set forth
in Section 3.11 of the Company Disclosure Schedule, there are, and since January 1, 2018, there have been, no Contracts, transactions,
arrangements, or understandings between the Company or any of its Subsidiaries, on the one hand, and any Affiliate (including any director,
officer, or employee or any of their respective family members) thereof or any holder of 5% or more of the shares of Company Capital Stock
(or any of their respective family members), but not including any wholly-owned Subsidiary of the Company.


 


Section 3.12Employee Benefit Issues.


 


(a)Schedule. Section 3.12(a) of the
Company Disclosure Schedule contains a true and complete list, as of the date hereof, of each plan, program, policy, agreement, collective
bargaining agreement, or other arrangement providing for compensation, severance, deferred compensation, performance awards, stock or
stock-based awards, health, dental, retirement, life insurance, death, accidental death & dismemberment, disability, fringe, or wellness
benefits, or other employee benefits or remuneration of any kind, including each employment, termination, severance, retention, change
in control, or consulting or independent contractor plan, program, arrangement, or agreement, in each case whether written or unwritten
or otherwise, funded or unfunded, insured or self-insured, including each “employee benefit plan,” within the meaning of Section
3(3) of ERISA, whether or not subject to ERISA, which is or has been sponsored, maintained, contributed to, or required to be contributed
to, by the Company or any of its Subsidiaries for the benefit of any current or former employee, independent contractor, consultant, or
director of the Company or any of its Subsidiaries (each, a “Company Employee”), or with respect to which the Company or any
Company ERISA Affiliate has or may have any Liability (collectively, the “Company Employee Plans”).


 


 






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(b)Documents. The Company has made available
to Parent correct and complete copies (or, if a plan or arrangement is not written, a written description) of all Company Employee Plans
and amendments thereto, and, to the extent applicable: (i) all related trust agreements, funding arrangements, insurance contracts, and
service provider agreements now in effect or required in the future as a result of the transactions contemplated by this Agreement or
otherwise; (ii) the most recent determination letter received regarding the tax-qualified status of each Company Employee Plan; (iii)
the most recent financial statements for each Company Employee Plan; (iv) the current summary plan description and any related summary
of material modifications and, if applicable, summary of benefits and coverage, for each Company Employee Plan.


 


(c)Employee Plan Compliance. (i) Each
Company Employee Plan has been established, administered, and maintained in all material respects in accordance with its terms and in
material compliance with applicable Laws, including but not limited to ERISA and the Code; (ii) all the Company Employee Plans that are
intended to be qualified under Section 401(a) of the Code are so qualified and have received timely determination letters from the IRS
and no such determination letter has been revoked nor, to the Knowledge of the Company, has any such revocation been threatened, or with
respect to a prototype plan, can rely on an opinion letter from the IRS to the prototype plan sponsor, to the effect that such qualified
retirement plan and the related trust are exempt from federal income taxes under Sections 401(a) and 501(a), respectively, of the Code,
and to the Knowledge of the Company no circumstance exists that is likely to result in the loss of such qualified status under Section
401(a) of the Code; (iii) the Company and its Subsidiaries, where applicable, have timely made all contributions, benefits, premiums,
and other payments required by and due under the terms of each Company Employee Plan and applicable Law and accounting principles, and
all benefits accrued under any unfunded Company Employee Plan have been paid, accrued, or otherwise adequately reserved to the extent
required by, and in accordance with past practice of the Company; (iv) except to the extent limited by applicable Law, each Company Employee
Plan can be amended, terminated, or otherwise discontinued after the Effective Time in accordance with its terms, without material liability
to Parent, the Company, or any of its Subsidiaries (other than ordinary administration expenses and in respect of accrued benefits thereunder);
(v) there are no investigations, audits, inquiries, enforcement actions, or Legal Actions pending or, to the Knowledge of the Company,
threatened by the IRS, U.S. Department of Labor, Health and Human Services, Equal Employment Opportunity Commission, or any similar Governmental
Entity with respect to any Company Employee Plan; (vi) there are no material Legal Actions pending, or, to the Knowledge of the Company,
threatened with respect to any Company Employee Plan (in each case, other than routine claims for benefits).


 


(d)Plan Liabilities. Neither the Company
nor any Company ERISA Affiliate has: (i) incurred or reasonably expects to incur, either directly or indirectly, any liability under Title
I or Title IV of ERISA, or related provisions of the Code relating to any Company Employee Plan and nothing has occurred that could reasonably
be expected to constitute grounds under Title IV of ERISA to terminate, or appoint a trustee to administer, any Company Employee Plan;
(ii) except for payments of premiums to the Pension Benefit Guaranty Corporation (“PBGC”) which have been timely paid in full,
not incurred any liability to the PBGC in connection with any Company Employee Plan covering any active, retired, or former employees
or directors of the Company or any Company ERISA Affiliate, including, without limitation, any liability under Sections 4069 or 4212(c)
of ERISA or any penalty imposed under Section 4071 of ERISA, or ceased operations at any facility, or withdrawn from any such Company
Employee Plan in a manner that could subject it to liability under Sections 4062, 4063 or 4064 of ERISA; (iii) failed to satisfy the health
plan compliance requirements under the Affordable Care Act, including the employer mandate under Section 4980H of the Code and related
information reporting requirements; (iv) failed to comply with Section 601 through 608 of ERISA and Section 4980B of the Code, regarding
the health plan continuation coverage requirements under COBRA; (v) failed to comply with the privacy, security, and breach notification
requirements under HIPAA; or (vi) incurred any withdrawal liability (including any contingent or secondary withdrawal liability) within
the meaning of Sections 4201 or 4204 of ERISA to any multiemployer plan and nothing has occurred that presents a material risk of the
occurrence of any withdrawal from or the partition, termination, reorganization, or insolvency of any such multiemployer plan which could
result in any liability of the Company or any Company ERISA Affiliate to any such multiemployer plan. No complete or partial termination
of any Company Employee Plan has occurred or is expected to occur.


 


 






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(e)No Post-Employment Obligations. No
Company Employee Plan provides post-termination or retiree health benefits to any person for any reason, except as may be required by
COBRA or other applicable Law, and neither the Company nor any Company ERISA Affiliate has any Liability to provide post-termination or
retiree health benefits to any person or ever represented, promised, or contracted to any Company Employee (either individually or to
Company Employees as a group) or any other person that such Company Employee(s) or other person would be provided with post-termination
or retiree health benefits, except to the extent required by COBRA or other applicable Law.


 


(f)Section 409A Compliance. Each Company
Employee Plan that is subject to Section 409A of the Code has been operated in compliance with such section and all applicable regulatory
guidance (including, without limitation, proposed regulations, notices, rulings, and final regulations).


 


(g)Health Plan Compliance. Each of the
Company and its Subsidiaries complies in all material respects with the applicable requirements under ERISA and the Code, including COBRA,
HIPAA, and the Affordable Care Act, and other federal requirements for employer-sponsored health plans, and any corresponding requirements
under state statutes, with respect to each Company Employee Plan that is a group health plan within the meaning of Section 733(a) of ERISA,
Section 5000(b)(1) of the Code, or such state statute.


 


(h)Effect of Transaction. Neither the
execution or delivery of this Agreement, the consummation of the Merger, nor any of the other transactions contemplated by this Agreement
will (either alone or in combination with any other event): (i) entitle any current or former director, employee, contractor, or consultant
of the Company or any of its Subsidiaries to severance pay or any other payment; (ii) accelerate the timing of payment, funding, or vesting,
or increase the amount of compensation due to any such individual; (iii) limit or restrict the right of the Company to merge, amend, or
terminate any Company Employee Plan; or (iv) increase the amount payable or result in any other material obligation pursuant to any Company
Employee Plan. No amount that could be received (whether in cash or property or the vesting of any property) as a result of the consummation
of the transactions contemplated by this Agreement by any employee, director, or other service provider of the Company under any Company
Employee Plan or otherwise would not be deductible by reason of Section 280G of the Code nor would be subject to an excise tax under Section
4999 of the Code.


 


 






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(i)Employment Law Matters. The Company
and each of its Subsidiaries: (i) is in compliance with all applicable Laws and agreements regarding hiring, employment, termination of
employment, plant closing and mass layoff, employment discrimination, harassment, retaliation, and reasonable accommodation, leaves of
absence, terms and conditions of employment, wages and hours of work, employee classification, employee health and safety, use of genetic
information, leasing and supply of temporary and contingent staff, engagement of independent contractors, including proper classification
of same, payroll taxes, and immigration with respect to Company Employees and contingent workers; and (ii) is in compliance with all applicable
Laws relating to the relations between it and any labor organization, trade union, work council, or other body representing Company Employees,
except, in the case of clauses (i) and (ii) immediately above, where the failure to be in compliance with the foregoing would not reasonably
be expected to have, individually or in the aggregate, a Company Material Adverse Effect.


 


(j)Labor. Neither Company nor any of
its Subsidiaries is party to, or subject to, any collective bargaining agreement or other agreement with any labor organization, work
council, or trade union with respect to any of its or their operations. None of the Company Employees is represented by a labor organization,
work council, or trade union and, to the Knowledge of the Company, there is no organizing activity, Legal Action, election petition, union
card signing or other union activity, or union corporate campaigns of or by any labor organization, trade union, or work council directed
at the Company or any of its Subsidiaries, or any Company Employees. There are no Legal Actions, government investigations, or labor grievances
pending, or, to the Knowledge of the Company, threatened relating to any employment related matter involving any Company Employee or applicant,
including, but not limited to, charges of unlawful discrimination, retaliation or harassment, failure to provide reasonable accommodation,
denial of a leave of absence, failure to provide compensation or benefits, unfair labor practices, or other alleged violations of Law,
except for any of the foregoing which would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse
Effect.


 


(k)Section 3.12(k) of the Company Disclosure
Schedule lists the name of each employee, position and annual salary as of the date hereof.


 


Section 3.13Real Property and Personal Property Matters.


 


(a)Leased Real Estate. Company owns
no real property. Section 3.13(a) of the Company Disclosure Schedule contains a true and complete list of all Leases (including all amendments,
extensions, renewals, guaranties, and other agreements with respect thereto) as of the date hereof for each such Leased Real Estate (including
the date and name of the parties to such Lease document). The Company has delivered to Parent a true and complete copy of each such Lease.
Except as set forth on Section 3.13(a) of the Company Disclosure Schedule, with respect to each of the Leases: (i) such Lease is legal,
valid, binding, enforceable, and in full force and effect; (ii) neither the Company nor any of its Subsidiaries nor, to the Knowledge
of the Company, any other party to the Lease, is in breach or default under such Lease, and no event has occurred or circumstance exists
which, with or without notice, lapse of time, or both, would constitute a breach or default under such Lease; (iii) the Company’s
or its Subsidiary’s possession and quiet enjoyment of the Leased Real Estate under such Lease has not been disturbed, and to the
Knowledge of the Company, there are no disputes with respect to such Lease; and (iv) there are no Liens on the real estate created by
such Lease other than Permitted Liens. Neither the Company nor any of its Subsidiaries has assigned, pledged, mortgaged, hypothecated,
or otherwise transferred any Lease or any interest therein nor has the Company or any of its Subsidiaries subleased, licensed, or otherwise
granted any Person (other than another wholly-owned Subsidiary of the Company) a right to use or occupy such Leased Real Estate or any
portion thereof.


 


(b)Real Estate Used in the Business.
The Leased Real Estate identified in Section 3.13(a) of the Company Disclosure Schedule comprise all of the real property used or intended
to be used in, or otherwise related to, the business of the Company or any of its Subsidiaries.


 


 






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(c)Personal Property. Except as would
not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, the Company and each of its Subsidiaries
are in possession of and have good and marketable title to, or valid leasehold interests in or valid rights under contract to use, the
machinery, equipment, furniture, fixtures, and other tangible personal property and assets owned, leased, or used by the Company or any
of its Subsidiaries, free and clear of all Liens other than Permitted Liens.


 


Section 3.14Environmental Matters. Except for such matters
as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, to the Knowledge of
the Company:


 


(a)Compliance with Environmental Laws.
The Company and its Subsidiaries are, and have been, in compliance with all Environmental Laws, which compliance includes the possession,
maintenance of, compliance with, or application for, all Permits required under applicable Environmental Laws for the operation of the
business of the Company and its Subsidiaries as currently conducted.


 


(b)No Disposal, Release, or Discharge of
Hazardous Substances. Neither the Company nor any of its Subsidiaries has disposed of, released, or discharged any Hazardous Substances
on, at, under, in, or from any real property currently or, to the Knowledge of the Company, formerly owned, leased, or operated by it
or any of its Subsidiaries or at any other location that is: (i) currently subject to any investigation, remediation, or monitoring; or
(ii) reasonably likely to result in liability to the Company or any of its Subsidiaries, in either case of (i) or (ii) under any applicable
Environmental Laws.


 


(c)No Legal Actions or Orders. Neither
the Company nor any of its Subsidiaries has received written notice of and there is no Legal Action pending, or to the Knowledge of the
Company, threatened against the Company or any of its Subsidiaries, alleging any Liability or responsibility under or non-compliance with
any Environmental Law or seeking to impose any financial responsibility for any investigation, cleanup, removal, containment, or any other
remediation or compliance under any Environmental Law. Neither the Company nor any of its Subsidiaries is subject to any Order, settlement
agreement, or other written agreement by or with any Governmental Entity or third party imposing any material Liability or obligation
with respect to any of the foregoing.


 


(d)No Assumption of Environmental Law Liabilities.
Neither the Company nor any of its Subsidiaries has expressly assumed or retained any Liabilities under any applicable Environmental Laws
of any other Person, including in any acquisition or divestiture of any property or business.


 


Section 3.15Material Contracts.


 


(a)Material Contracts. For purposes
of this Agreement, “Company Material Contract” shall mean the following to which the Company or any of its Subsidiaries is
a party or any of the respective assets are bound (excluding any Leases):


 


(i)any “material contract” (as such
term is defined in Item 601(b)(10) of Regulation S-K promulgated by the SEC) or Contract the Company’s business is dependent on;


 


(ii)any employment or consulting Contract (in
each case with respect to which the Company has continuing obligations as of the date hereof) with any current (A) officer of the Company,
(B) member of the Company Board, or (C) Company Employee providing for an annual base salary or payment in excess of $120,000;


 


 






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(iii)any Contract providing for indemnification
or any guaranty by the Company or any Subsidiary thereof, in each case that is material to the Company and its Subsidiaries, taken as
a whole, other than (A) any guaranty by the Company or a Subsidiary thereof of any of the obligations of (1) the Company or another wholly-owned
Subsidiary thereof or (2) any Subsidiary (other than a wholly-owned Subsidiary) of the Company that was entered into in the ordinary course
of business pursuant to or in connection with a customer Contract, or (B) any Contract providing for indemnification of customers or other
Persons pursuant to Contracts entered into in the ordinary course of business;


 


(iv)any Contract that purports to limit in any
material respect the right of the Company or any of its Subsidiaries (or, at any time after the consummation of the Merger, Parent or
any of its Subsidiaries) (A) to engage in any line of business, (B) compete with any Person or solicit any client or customer, or (C)
operate in any geographical location;


 


(v)any Contract relating to the disposition or
acquisition, directly or indirectly (by merger, sale of stock, sale of assets, or otherwise), by the Company or any of its Subsidiaries
after the date of this Agreement of assets or capital stock or other equity interests of any Person, in each case with a fair market value
in excess of $5,000;


 


(vi)any Contract that grants any right of first
refusal, right of first offer, or similar right with respect to any material assets, rights, or properties of the Company or any of its
Subsidiaries;


 


(vii)any Contract that contains any provision
that requires the purchase of all or a material portion of the Company’s or any of its Subsidiaries’ requirements for a given
product or service from a given third party, which product or service is material to the Company and its Subsidiaries, taken as a whole;


 


(viii)any Contract that obligates the Company
or any of its Subsidiaries to conduct business on an exclusive or preferential basis or that contains a “most favored nation”
or similar covenant with any third party or upon consummation of the Merger will obligate Parent, the Surviving Corporation, or any of
their respective Subsidiaries to conduct business on an exclusive or preferential basis or that contains a “most favored nation”
or similar covenant with any third party;


 


(ix)any partnership, joint venture, limited liability
company agreement, or similar Contract relating to the formation, creation, operation, management, or control of any material joint venture,
partnership, or limited liability company, other than any such Contract solely between the Company and its wholly-owned Subsidiaries or
among the Company’s wholly-owned Subsidiaries;


 


(x)any mortgages, indentures, guarantees, loans,
or credit agreements, security agreements, or other Contracts, in each case relating to indebtedness for borrowed money, whether as borrower
or lender, in each case in excess of $5,000, other than (A) accounts receivables and payables, and (B) loans to direct or indirect wholly-owned
Subsidiaries of the Company;


 


(xi)any Company IP Agreement, other than licenses
for shrinkwrap, clickwrap, or other similar commercially available off-the-shelf software that has not been modified or customized by
a third party for the Company or any of its Subsidiaries;


 


(xii)any other Contract under which the Company
or any of its Subsidiaries is obligated to make payment or incur costs in excess of $5,000 in any year and which is not otherwise described
in clauses (i)–(xi) above; or


 


(xiii)any Contract which is not otherwise described
in clauses (i)-(xii) above that is material to the Company and its Subsidiaries, taken as a whole.


 


 






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(b)Schedule of Material Contracts; Documents.
Section 3.15(b) of the Company Disclosure Schedule sets forth a true and complete list as of the date hereof of all Company Material Contracts.
The Company has made available to Parent correct and complete copies of all Company Material Contracts, including any amendments thereto.


 


(c)No Breach. (i) All the Company Material
Contracts are legal, valid, and binding on the Company or its applicable Subsidiary, enforceable against it in accordance with its terms,
and is in full force and effect; (ii) neither the Company nor any of its Subsidiaries nor, to the Knowledge of the Company, any third
party has violated any provision of, or failed to perform any obligation required under the provisions of, any Company Material Contract;
and (iii) neither the Company nor any of its Subsidiaries nor, to the Knowledge of the Company, any third party is in breach, or has received
written notice of breach, of any Company Material Contract.


 


Section 3.16Insurance. All insurance policies maintained
by the Company and its Subsidiaries are in full force and effect and provide insurance in such amounts and against such risks as the Company
reasonably has determined to be prudent, taking into account the industries in which the Company and its Subsidiaries operate, and as
is sufficient to comply with applicable Law. Neither the Company nor any of its Subsidiaries is in breach or default, and neither the
Company nor any of its Subsidiaries has taken any action or failed to take any action which, with notice or the lapse of time, would constitute
such a breach or default, or permit termination or modification of, any of such insurance policies. To the Knowledge of the Company: (i)
no insurer of any such policy has been declared insolvent or placed in receivership, conservatorship, or liquidation; and (ii) no notice
of cancellation or termination, other than pursuant to the expiration of a term in accordance with the terms thereof, has been received
with respect to any such policy.


 


ARTICLE IV


REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB


 


Except as set forth in the correspondingly numbered
Section of the Parent Disclosure Schedule that relates to such Section or in another Section of the Parent Disclosure Schedule to the
extent that it is reasonably apparent on the face of such disclosure that such disclosure is applicable to such Section, Parent and Merger
Sub hereby jointly and severally represent and warrant to the Company as follows:


 


Section 4.01Organization; Standing and Power; Charter Documents;
Subsidiaries.


 


(a)Organization; Standing and Power.
Each of Parent and its Subsidiaries is a corporation, limited liability company, or other legal entity duly organized, validly existing,
and in good standing (to the extent that the concept of “good standing” is applicable in the case of any jurisdiction outside
the United States) under the Laws of its jurisdiction of organization, and has the requisite corporate, limited liability company, or
other organizational, as applicable, power and authority to own, lease, and operate its assets and to carry on its business as now conducted.
Each of Parent and its Subsidiaries is duly qualified or licensed to do business as a foreign corporation, limited liability company,
or other legal entity and is in good standing (to the extent that the concept of “good standing” is applicable in the case
of any jurisdiction outside the United States) in each jurisdiction where the character of the assets and properties owned, leased, or
operated by it or the nature of its business makes such qualification or license necessary, except where the failure to be so qualified
or licensed or to be in good standing, would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse
Effect.


 


 






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(b)Charter Documents. The Certificate
of Incorporation of Parent incorporated by reference to Form 20-F/A for fiscal year ended November 30, 2020 filed with the SEC are true,
correct, and complete copies of such documents as in effect as of the date of this Agreement. Parent has delivered or made available to
the Company a true and correct copy of the Charter Documents of Merger Sub. Neither Parent nor Merger Sub is in violation of any of the
provisions of its Charter Documents.


 


(c)Subsidiaries. All of the outstanding
shares of capital stock of, or other equity or voting interests in, each Subsidiary of Parent have been validly issued and are owned by
Parent, directly or indirectly, free of pre-emptive rights, are fully paid and non-assessable, and are free and clear of all Liens, including
any restriction on the right to vote, sell, or otherwise dispose of such capital stock or other equity or voting interests, except for
any Liens: (i) imposed by applicable securities Laws; or (ii) arising pursuant to the Charter Documents of any non-wholly-owned Subsidiary
of Parent. Except for the capital stock of, or other equity or voting interests in, its Subsidiaries, Parent does not own, directly or
indirectly, any capital stock of, or other equity or voting interests in, any Person.


 


Section 4.02Capital Structure.


 


(a)Capital Stock. The authorized capital
stock of Parent consists of (i) 100,000,000 commons shares without par value, of which 14,597,933 Parent Common Shares are issued and
outstanding; and (ii) and 9,999,900 preferred shares without par value; 1,000,000 Series A Preferred Shares; 100 Series B Preferred Shares;
1,000,000 Series C Preferred Shares; 4,000,000 Series D Preferred Shares; and 4,000,000 Series E Preferred Shares of which no preferred
shares are outstanding. All of the outstanding shares of capital stock of Parent are, and all shares of capital stock of Parent which
may be issued as contemplated or permitted by this Agreement, including the Parent Common Shares constituting the Exchange Consideration
and Earn-Out Shares, will be, when issued, duly authorized, validly issued, fully paid, and non-assessable, and not subject to any pre-emptive
rights. No Subsidiary of Parent owns any shares of Parent Common Shares.


 


(b)Stock Awards. As of the date of this
Agreement, 2,030,445 Parent Common Shares were reserved for issuance pursuant to outstanding Parent Stock Options and 474,999 Parent Restricted
Shares are issuable pursuant to outstanding Restricted Share Units. All shares of Parent Common Shares subject to issuance under the Parent
Stock Options and Restricted Share Units upon issuance in accordance with the terms and conditions specified in the instruments pursuant
to which they are issuable, will be duly authorized, validly issued, fully paid, and non-assessable.


 


(c)As of the date hereof, there are 1,179,208
shares of Parent Common Shares are issuable pursuant to outstanding common share warrants.


 


Section 4.03Authority; Non-Contravention; Governmental Consents;
Board Approval.


 


(a)Authority. Each of Parent and Merger
Sub has all requisite corporate power and authority to enter into and to perform its obligations under this Agreement and, subject to,
in the case of the consummation of the Merger the adoption of this Agreement by Parent as the sole stockholder of Merger Sub to consummate
the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Parent and Merger Sub and the consummation
by Parent and Merger Sub of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate action
on the part of Parent and Merger Sub and no other corporate proceedings on the part of Parent or Merger Sub are necessary to authorize
the execution and delivery of this Agreement or to consummate the Merger, the Parent Stock Issuance, and the other transactions contemplated
by this Agreement, subject only, in the case of consummation of the Merger, the adoption of this Agreement by Parent as the sole stockholder
of Merger Sub. This Agreement has been duly executed and delivered by Parent and Merger Sub and, assuming due execution and delivery by
the Company, constitutes the legal, valid, and binding obligation of Parent and Merger Sub, enforceable against Parent and Merger Sub
in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium, and other similar Laws
affecting creditors’ rights generally and by general principles of equity.


 


 






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(b)Non-Contravention. The execution,
delivery, and performance of this Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub of the transactions
contemplated by this Agreement, do not and will not: (i) contravene or conflict with, or result in any violation or breach of, the Charter
Documents of Parent or Merger Sub; (ii) assuming that all of the Consents contemplated by clauses (i) through (v) of Section 4.03(c) have
been obtained or made, and in the case of the consummation of the Merger, obtaining the Requisite Parent Vote, conflict with or violate
any Law applicable to Parent or Merger Sub or any of their respective properties or assets; (iii) result in any breach of or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, result in Parent’s or any of its
Subsidiaries’ loss of any benefit or the imposition of any additional payment or other liability under, or alter the rights or obligations
of any third party under, or give to any third party any rights of termination, amendment, acceleration, or cancellation, or require any
Consent under, any Contract to which Parent or any of its Subsidiaries is a party or otherwise bound as of the date hereof; or (iv) result
in the creation of a Lien (other than Permitted Liens) on any of the properties or assets of Parent or any of its Subsidiaries, except,
in the case of each of clauses (ii), (iii), and (iv), for any conflicts, violations, breaches, defaults, loss of benefits, additional
payments or other liabilities, alterations, terminations, amendments, accelerations, cancellations, or Liens that, or where the failure
to obtain any Consents, in each case, would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse
Effect.


 


(c)Governmental Consents. No Consent
of any Governmental Entity is required to be obtained or made by Parent or Merger Sub in connection with the execution, delivery, and
performance by Parent and Merger Sub of this Agreement or the consummation by Parent and Merger Sub of the Merger, the Parent Stock Issuance,
and the other transactions contemplated hereby, except for: (i) the filing of the Certificate of Merger with the Secretary of State of
the State of Delaware; (ii) the filing of such reports under the Exchange Act as may be required in connection with this Agreement, the
Merger, the Parent Stock Issuance, and the other transactions contemplated by this Agreement; (iii) such Consents as may be required under
applicable state securities or “blue sky” Laws and the securities Laws of any foreign country or the rules and regulations
of Nasdaq; (iv) the Other Governmental Approvals; and (v) such other Consents which if not obtained or made would not reasonably be expected
to have, individually or in the aggregate, a Parent Material Adverse Effect.


 


(d)Board Approval.


 


(i)The Parent Board by resolutions duly adopted
by a vote at a meeting of all directors of Parent duly called and held and, not subsequently rescinded or modified in any way, has (A)
determined that this Agreement and the transactions contemplated hereby, including the Merger, and the Parent Stock Issuance, upon the
terms and subject to the conditions set forth herein, are fair to, and in the best interests of, Parent and the Parent’s stockholders,
and (B) approved and declared advisable this Agreement, including the execution, delivery, and performance thereof, and the consummation
of the transactions contemplated by this Agreement, including the Merger and the Parent Stock Issuance, upon the terms and subject to
the conditions set forth herein.


 


(ii)The Merger Sub Board by resolutions duly
adopted by a vote at a meeting of all directors of Merger Sub duly called and held and, not subsequently rescinded or modified in any
way, has (A) determined that this Agreement and the transactions contemplated hereby, including the Merger, upon the terms and subject
to the conditions set forth herein, are fair to, and in the best interests of, Merger Sub and Parent, as the sole stockholder of Merger
Sub, (B) approved and declared advisable this Agreement, including the execution, delivery, and performance thereof, and the consummation
of the transactions contemplated by this Agreement, including the Merger, upon the terms and subject to the conditions set forth herein,
and (C) resolved to recommend that Parent, as the sole stockholder of Merger Sub, approve the adoption of this Agreement in accordance
with the DGCL.


 


 






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Section 4.04SEC Filings; Financial Statements; Undisclosed Liabilities.


 


(a)SEC Filings. Parent has timely filed
with or furnished to, as applicable, the SEC all registration statements, prospectuses, reports, schedules, forms, statements, and other
documents (including exhibits and all other information incorporated by reference) required to be filed or furnished by it with the SEC
since January 1, 2018 (the “Parent SEC Documents”). True, correct, and complete copies of all the Parent SEC Documents are
publicly available on EDGAR. As of their respective filing dates or, if amended or superseded by a subsequent filing prior to the date
hereof, as of the date of the last such amendment or superseding filing (and, in the case of registration statements and proxy statements,
on the dates of effectiveness and the dates of the relevant meetings, respectively), each of the Parent SEC Documents complied as to form
in all material respects with the applicable requirements of the Securities Act, the Exchange Act, and the Sarbanes-Oxley Act, and the
rules and regulations of the SEC thereunder applicable to such Parent SEC Documents. None of the Parent SEC Documents, including any financial
statements, schedules, or exhibits included or incorporated by reference therein at the time they were filed (or, if amended or superseded
by a subsequent filing prior to the date hereof, as of the date of the last such amendment or superseding filing), contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. To the Knowledge of Parent, none of the Parent SEC
Documents is the subject of ongoing SEC review or outstanding SEC investigation and there are no outstanding or unresolved comments received
from the SEC with respect to any of the Parent SEC Documents. None of Parent’s Subsidiaries is required to file or furnish any forms,
reports, or other documents with the SEC.


 


(b)Financial Statements. Each of the
consolidated financial statements (including, in each case, any notes and schedules thereto) contained in or incorporated by reference
into the Parent SEC Documents: (i) complied as to form in all material respects with the published rules and regulations of the SEC with
respect thereto as of their respective dates; (ii) was prepared in accordance with IFRS applied on a consistent basis throughout the periods
involved (except as may be indicated in the notes thereto and, in the case of unaudited interim financial statements, as may be permitted
by the SEC for Quarterly Reports); and (iii) fairly presented in all material respects the consolidated financial position and the results
of operations, changes in stockholders’ equity, and cash flows of Parent and its consolidated Subsidiaries as of the respective
dates of and for the periods referred to in such financial statements, subject, in the case of unaudited interim financial statements,
to normal and year-end audit adjustments as permitted by the applicable rules and regulations of the SEC (but only if the effect of such
adjustments would not, individually or in the aggregate, be material).


 


(c)Undisclosed Liabilities. The audited
balance sheet of Parent dated as of November 30, 2020 contained in the Parent SEC Documents filed prior to the date hereof is hereinafter
referred to as the “Parent Balance Sheet.” Neither Parent nor any of its Subsidiaries has any Liabilities other than Liabilities
that: (i) are reflected or reserved against in the Parent Balance Sheet (including in the notes thereto); (ii) were incurred since the
date of the Parent Balance Sheet in the ordinary course of business consistent with past practice; (iii) are incurred in connection with
the transactions contemplated by this Agreement; or (iv) would not reasonably be expected to have, individually or in the aggregate, a
Parent Material Adverse Effect.


 


 






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(d)Nasdaq Compliance. Parent is in compliance
in all material respects with all of the applicable listing and corporate governance rules of Nasdaq.


 


Section 4.05Absence of Certain Changes or Events. Since
the date of the unaudited financial statements for the three months ended February 28, 2021 as filed with the SEC, except as disclosed
in the Parent SEC Documents and in connection with the execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby, the business of Parent and each of its Subsidiaries has been conducted in the ordinary course of business consistent
with past practice and there has not been or occurred any Parent Material Adverse Effect or any event, condition, change, or effect that
could reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect


 


Section 4.06Compliance; Permits.


 


(a)Parent and each of its Subsidiaries are
and, since January 1, 2018, have been in compliance with, all Laws or Orders applicable to Parent or any of its Subsidiaries or by which
Parent or any of its Subsidiaries or any of their respective businesses or properties is bound, except for such non-compliance that would
not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect. Since January 1, 2021, no Governmental
Entity has issued any notice or notification stating that Parent or any of its Subsidiaries is not in compliance with any Law, except
where such non-compliance would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.


 


(b)Permits. Parent and its Subsidiaries
hold, to the extent necessary to operate their respective businesses as such businesses are being operated as of the date hereof, all
Permits except for any Permits for which the failure to obtain or hold would not reasonably be expected to have, individually or in the
aggregate, a Parent Material Adverse Effect. No suspension, cancellation, non-renewal, or adverse modifications of any Permits of Parent
or any of its Subsidiaries is pending or, to the Knowledge of Parent, threatened, except for any such suspension or cancellation which
would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect. Parent and each of its Subsidiaries
is and, since January 1, 2018, has been in compliance with the terms of all Permits, except where the failure to be in such compliance
would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.


 


Section 4.07Litigation. Except as set forth in the Parent
Disclosure Schedule or reported in Parent SEC Documents, there is no Legal Action pending, or to the Knowledge of Parent, threatened against
Parent or any of its Subsidiaries or any of their respective properties or assets or, to the Knowledge of Parent, any officer or director
of Parent or any of its Subsidiaries in their capacities as such other than any such Legal Action that: (a) does not involve an amount
that would reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect; and (b) does not seek material
injunctive or other material non-monetary relief. None of Parent or any of its Subsidiaries or any of their respective properties or assets
is subject to any Order of a Governmental Entity or arbitrator, whether temporary, preliminary, or permanent, which would reasonably be
expected to have, individually or in the aggregate, a Parent Material Adverse Effect. To the Knowledge of Parent, there are no SEC inquiries
or investigations, other governmental inquiries or investigations, or internal investigations pending or, to the Knowledge of Parent,
threatened, in each case regarding any accounting practices of Parent or any of its Subsidiaries or any malfeasance by any officer or
director of Parent.


 


Section 4.08Brokers. Neither Parent, Merger Sub, nor any
of their respective Affiliates has incurred, nor will it incur, directly or indirectly, any liability for investment banker, brokerage,
or finders’ fees or agents’ commissions or any similar charges in connection with this Agreement or any transaction contemplated
hereby for which the Company would be liable in connection the Merger.


 


Section 4.09[Reserved]


 


 






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Section 4.10Ownership of Company Capital Stock. Neither
Parent nor any of its Affiliates or Associates “owns” (as defined in Section 203(c)(9) of the DGCL) any shares of Company
Capital Stock.


 


Section 4.11Intended Tax Treatment. Neither Parent nor any
of its Subsidiaries makes a representation as to the tax effect of the Merger.


 


Section 4.12Merger Sub. Merger Sub: (a) has engaged in no
business activities other than those related to the transactions contemplated by this Agreement; and (b) is a direct, wholly-owned Subsidiary
of Parent.


 


ARTICLE V


COVENANTS


 


Section 5.01Conduct of Business of the Company. During the
period from the date of this Agreement until the Effective Time, the Company shall, and shall cause each of its Subsidiaries, except as
expressly permitted or required by this Agreement, as required by applicable Law, or with the prior written consent of Parent (which consent
shall not be unreasonably withheld), to conduct its business in the ordinary course of business consistent with past practice, and, to
the extent consistent therewith, the Company shall, and shall cause each of its Subsidiaries to, use its reasonable best efforts to preserve
substantially intact its and its Subsidiaries’ business organization, to keep available the services of its and its Subsidiaries’
current officers and employees, to preserve its and its Subsidiaries’ present relationships with customers, suppliers, distributors,
licensors, licensees, and other Persons having business relationships with it. Without limiting the generality of the foregoing, between
the date of this Agreement and the Effective Time, except as otherwise expressly permitted or required by this Agreement, or as required
by applicable Law, the Company shall not, nor shall it permit any of its Subsidiaries to, without the prior written consent of Parent
(which consent shall not be unreasonably withheld, conditioned, or delayed):


 


(a)amend or propose to amend its Charter Documents;


 


(b)(i) split, combine, or reclassify any Company
Securities or Company Subsidiary Securities, (ii) repurchase, redeem, or otherwise acquire, or offer to repurchase, redeem, or otherwise
acquire, any Company Securities or Company Subsidiary Securities, or (iii) declare, set aside, or pay any dividend or distribution (whether
in cash, stock, property, or otherwise) in respect of, or enter into any Contract with respect to the voting of, any shares of its capital
stock (other than dividends from its direct or indirect wholly-owned Subsidiaries);


 


(c)issue, sell, pledge, dispose of, or encumber
any Company Securities or Company Subsidiary Securities, other than the issuance of shares of Company Capital Stock upon the exercise
of any Company Equity Award outstanding as of the date of this Agreement in accordance with its terms;


 


(d)except as required by applicable Law or
by any Company Employee Plan or Contract in effect as of the date of this Agreement (i) increase the compensation payable or that could
become payable by the Company or any of its Subsidiaries to directors, officers, or employees, other than increases in compensation made
to non-officer employees in the ordinary course of business consistent with past practice, (ii) promote any officers or employees, except
in connection with the Company’s annual or quarterly compensation review cycle or as the result of the termination or resignation
of any officer or employee, (iii) hire new employees, or (iv) establish, adopt, enter into, amend, terminate, exercise any discretion
under, or take any action to accelerate rights under any Company Employee Plans or any plan, agreement, program, policy, trust, fund,
or other arrangement that would be a Company Employee Plan if it were in existence as of the date of this Agreement, or make any contribution
to any Company Employee Plan, other than contributions required by Law, the terms of such Company Employee Plans as in effect on the date
hereof, or that are made in the ordinary course of business consistent with past practice;


 


(e)acquire, by merger, consolidation, acquisition
of stock or assets, or otherwise, any business or Person or division thereof or make any loans, advances, or capital contributions to
or investments in any Person in excess of $1,000 in the aggregate;


 


 






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(f)(i) transfer, license, sell, lease, or otherwise
dispose of (whether by way of merger, consolidation, sale of stock or assets, or otherwise) or pledge, encumber, mortgage, or otherwise
subject to any Lien (other than a Permitted Lien), any assets, including the capital stock or other equity interests in any Subsidiary
of the Company; provided, that the foregoing shall not prohibit the Company and its Subsidiaries from transferring, selling, leasing,
or disposing of obsolete equipment or assets being replaced, or granting non-exclusive licenses under the Company IP, in each case in
the ordinary course of business consistent with past practice, or (ii) adopt or effect a plan of complete or partial liquidation, dissolution,
restructuring, recapitalization, or other reorganization;


 


(g)repurchase, prepay, or incur any indebtedness
for borrowed money or guarantee any such indebtedness of another Person, issue or sell any debt securities or options, warrants, calls,
or other rights to acquire any debt securities of the Company or any of its Subsidiaries, guarantee any debt securities of another Person,
enter into any “keep well” or other Contract to maintain any financial statement condition of any other Person (other than
any wholly-owned Subsidiary of it) or enter into any arrangement having the economic effect of any of the foregoing, other than in connection
with the financing of ordinary course trade payables consistent with past practice;


 


(h)enter into or amend or modify in any material
respect, or consent to the termination of (other than at its stated expiry date), any Company Material Contract or any Lease with respect
to material Real Estate or any other Contract or Lease that, if in effect as of the date hereof would constitute a Company Material Contract
or Lease with respect to material Real Estate hereunder;


 


(i)institute, settle, or compromise any Legal
Action involving the payment of monetary damages by the Company or any of its Subsidiaries of any amount exceeding $1,000 in the aggregate,
other than (i) any Legal Action brought against Parent or Merger Sub arising out of a breach or alleged breach of this Agreement by Parent
or Merger Sub, and (ii) the settlement of claims, liabilities, or obligations reserved against on the Company Balance Sheet; provided,
that neither the Company nor any of its Subsidiaries shall settle or agree to settle any Legal Action which settlement involves a conduct
remedy or injunctive or similar relief or has a restrictive impact on the Company’s business;


 


(j)make any material change in any method of
financial accounting principles or practices, in each case except for any such change required by a change in GAAP or applicable Law;


 


(k)(i) settle or compromise any material Tax
claim, audit, or assessment, (ii) make or change any material Tax election, change any annual Tax accounting period, or adopt or change
any method of Tax accounting, (iii) amend any material Tax Returns or file claims for material Tax refunds, or (iv) enter into any material
closing agreement, surrender in writing any right to claim a material Tax refund, offset or other reduction in Tax liability or consent
to any extension or waiver of the limitation period applicable to any material Tax claim or assessment relating to the Company or its
Subsidiaries;


 


(l)enter into any material agreement, agreement
in principle, letter of intent, memorandum of understanding, or similar Contract with respect to (i) any joint venture, strategic partnership,
or alliance, or (ii) outside the ordinary course of business consistent with past practices in excess of $1,000;


 


 






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(m)except in connection with actions permitted
by Section 5.04 hereof, take any action to exempt any Person from, or make any acquisition of securities of the Company by any Person
not subject to, any state takeover statute or similar statute or regulation that applies to Company with respect to a Takeover Proposal
or otherwise, including the restrictions on “business combinations” set forth in Section 203 of the DGCL, except for Parent,
Merger Sub, or any of their respective Subsidiaries or Affiliates, or the transactions contemplated by this Agreement;


 


(n)abandon, allow to lapse, sell, assign, transfer,
grant any security interest in otherwise encumber or dispose of any Company IP, or grant any right or license to any Company IP other
than pursuant to non-exclusive licenses entered into in the ordinary course of business consistent with past practice;


 


(o)terminate or modify in any material respect,
or fail to exercise renewal rights with respect to, any material insurance policy;


 


(p)engage in any transaction with, or enter
into any agreement, arrangement or understanding with, any Affiliate of the Company or other Person covered by Item 404 of Regulation
S-K promulgated by the SEC that would be required to be disclosed pursuant to Item 404 of Regulation S-K promulgated by the SEC;


 


(q)adopt or implement any stockholder rights
plan or similar arrangement; or


 


(r)agree or commit to do any of the foregoing.


 


Section 5.02Parent Charter Documents. Parent will not amend
or propose to amend its Charter Documents.


 


Section 5.03Access to Information; Confidentiality.


 


(a)Access to Information. From the date
of this Agreement until the earlier to occur of the Effective Time or the termination of this Agreement in accordance with the terms set
forth in Article VII, the Company shall, and shall cause its Subsidiaries to, afford to Parent and Parent’s Representatives reasonable
access, at reasonable times and in a manner as shall not unreasonably interfere with the business or operations of the Company or any
Subsidiary thereof, to the officers, employees, accountants, agents, properties, offices, and other facilities and to all books, records,
contracts, and other assets of the Company and its Subsidiaries, and the Company shall, and shall cause its Subsidiaries to, furnish promptly
to Parent such other information concerning the business and properties of the Company and its Subsidiaries as Parent may reasonably request
from time to time. Provided, however, that Parent and Parent’s Representatives shall not contact Company customers or employees
without coordinating this with the Company. Neither the Company nor any of its Subsidiaries shall be required to provide access to or
disclose information where such access or disclosure would jeopardize the protection of attorney-client privilege or contravene any Law
(it being agreed that the parties shall use their reasonable best efforts to cause such information to be provided in a manner that would
not result in such jeopardy or contravention). No investigation shall affect the Company’s representations, warranties, covenants,
or agreements contained herein, or limit or otherwise affect the remedies available to Parent or Merger Sub pursuant to this Agreement.


 


(b)Confidentiality. The parties hereby
agree that all information provided to the other party or the other parties’ Representatives in connection with this Agreement and
the consummation of the transactions contemplated hereby, including any information obtained pursuant to Section 5.03(a), shall be treated
in accordance with the Confidentiality Agreement, dated February 22, 2021, between Parent and the Company (the “Confidentiality
Agreement”). Parent and the Company shall comply with, and shall cause their respective Representatives to comply with, all of their
respective obligations under the Confidentiality Agreement, which shall survive the termination of this Agreement in accordance with the
terms set forth therein.


 


 






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Section 5.04No Solicitation and Exclusivity.


 


(a)Takeover Proposal. Company shall,
and each shall cause their respective Subsidiaries and its or its respective Subsidiaries’ directors, officers, employees, investment
bankers, attorneys, accountants, consultants, or other agents or advisors (with respect to any Person, the foregoing Persons are referred
to herein as such Person’s “Representatives”) not to, directly or indirectly, solicit, initiate, or knowingly take any
action to facilitate or encourage the submission of any Takeover Proposal or the making of any proposal that could reasonably be expected
to lead to any Takeover Proposal, or (i) encourage, conduct or engage in any discussions or negotiations with, disclose any non-public
information relating to the Company or Parent or any of their respective Subsidiaries to, afford access to the business, properties, assets,
books, or records of the Company or Parent or any of their respective Subsidiaries to, or knowingly assist, participate in, facilitate,
or encourage any effort by, any third party (or its potential sources of financing) that is seeking to make, or has made, any Takeover
Proposal; (ii) enter into any agreement in principle, letter of intent, term sheet, acquisition agreement, merger agreement, option agreement,
joint venture agreement, partnership agreement, or other Contract relating to any Takeover Proposal (each, an “Acquisition Agreement”),
(iii) agree to, approve or recommend an Takeover Proposal. The Company shall, and shall cause their respective Subsidiaries and their
and their Subsidiaries’ Representatives to cease immediately and cause to be terminated any and all existing activities, discussions,
or negotiations, if any, with any third party conducted prior to the date hereof with respect to any Takeover Proposal and shall use its
reasonable best efforts to cause any such third party (or its agents or advisors) in possession of non-public information in respect of
the Company or Parent, as applicable, and any of their respective Subsidiaries that was furnished by or on behalf of such party or its
respective Subsidiaries to return or destroy (and confirm destruction of) all such information. Without limiting the foregoing, it is
understood that any violation of or the taking of actions inconsistent with the restrictions set forth in this Section 5.04 by any Representative
of the Company or its Subsidiaries, whether or not such Representative is purporting to act on behalf of the applicable party or any of
its Subsidiaries, shall be deemed to be a breach of this Section 5.04 by the applicable party.


 


Section 5.05[Reserved]


 


Section 5.06Company Stockholders Meeting. The Company shall
take all action necessary to duly call, give notice of, convene, and hold the Company Stockholders Meeting as soon as reasonably practicable
and, in connection therewith, the Company shall mail a Proxy Statement to the holders of Company Capital Stock in advance of such meeting.
Subject to Section 5.04 hereof, the Company shall use reasonable best efforts to: (a) solicit from the holders of Company Capital Stock
proxies in favor of the adoption of this Agreement and approval of the Merger; and (b) take all other actions necessary or advisable to
secure the vote or consent of the holders of Company Capital Stock required by applicable Law to obtain such approval. The Company shall
keep Parent and Merger Sub updated with respect to proxy solicitation results as requested Parent or Merger Sub.


 


Section 5.07[Reserved]


 


 






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Section 5.08Notices of Certain Events. Subject to applicable
Law, the Company shall notify Parent and Merger Sub promptly of: (a) any notice or other communication from any Person alleging that the
consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; (b) any notice or other
communication from any Governmental Entity in connection with the transactions contemplated by this Agreement; and (c) any event, change,
or effect between the date of this Agreement and the Effective Time which individually or in the aggregate causes or is reasonably likely
to cause or constitute: (i) a material breach of any of its representations, warranties, or covenants contained herein, or (ii) the failure
of any of the conditions set forth in Article VI of this Agreement to be satisfied; provided that, any failure to give notice in accordance
with the foregoing with respect to any breach shall not be deemed to constitute a violation of this Section 5.08 or the failure of any
condition set forth in Article VI to be satisfied, or otherwise constitute a breach of this Agreement by the party failing to give such
notice, in each case unless the underlying breach would independently result in a failure of the conditions set forth in Article VI to
be satisfied; and provided, further, that the delivery of any notice pursuant to this Section 5.08 shall not cure any breach of, or noncompliance
with, any other provision of this Agreement or limit the remedies available to the party receiving such notice.


 


Section 5.09Employees; Benefit Plans.


 


(a)Termination of Benefit Plans. Effective
no later than the day immediately following the Closing Date, the Company shall take steps to terminate any Company Employee Plans maintained
by the Company or its Subsidiaries that Parent has requested to be terminated by providing a written notice to the Company at least 30
days prior to the Closing Date; provided, that such Company Employee Plans can be terminated in accordance with their terms and applicable
Law without any adverse consequences with respect to any Company ERISA Affiliate. No later than the day immediately following the Closing
Date, the Company shall provide Parent with evidence that it has initiated the termination of the Company Employee Plans.


 


(b)Employees Not Third-Party Beneficiaries.
This Section 5.09 shall be binding upon and inure solely to the benefit of each of the parties to this Agreement, and nothing in this
Section 5.09, express or implied, shall confer upon any Company Employee, any beneficiary, or any other Person any rights or remedies
of any nature whatsoever under or by reason of this Section 5.09. Nothing contained herein, express or implied: (i) shall be construed
to establish, amend, or modify any benefit plan, program, agreement, or arrangement; (ii) shall alter or limit the ability of the Surviving
Corporation, Parent, or any of their respective Affiliates to amend, modify, or terminate any benefit plan, program, agreement, or arrangement
at any time assumed, established, sponsored, or maintained by any of them; or (iii) shall prevent the Surviving Corporation, Parent, or
any of their respective Affiliates from terminating the employment of any Company Employee who remains employed by the Surviving Corporation
(each a “Company Continuing Employee”) following the Effective Time. The parties hereto acknowledge and agree that the terms
set forth in this Section 5.09 shall not create any right in any Company Employee or any other Person to any continued employment with
the Surviving Corporation, Parent, or any of their respective Subsidiaries or compensation or benefits of any nature or kind whatsoever,
or otherwise alters any existing at-will employment relationship between any Company Employee and the Surviving Corporation.


 


(c)Prior Written Consent. With respect
to matters described in this Section 5.09, the Company will not send any written notices or other written communication materials to Company
Employees without the prior written consent of Parent.


 


Section 5.10[Reserved]


 


 






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Section 5.11Reasonable Best Efforts.


 


(a)Governmental and Other Third-Party Approval;
Cooperation and Notification. Upon the terms and subject to the conditions set forth in this Agreement (including those contained
in this Section 5.11), each of the parties hereto shall, and shall cause its Subsidiaries to, use its reasonable best efforts to take,
or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things
necessary, proper, or advisable to consummate and make effective, and to satisfy all conditions to the Merger and the other transactions
contemplated by this Agreement, including: (i) the obtaining of all necessary Permits, waivers, and actions or nonactions from Governmental
Entities and the making of all necessary registrations, filings, and notifications (including filings with Governmental Entities) and
the taking of all steps as may be necessary to obtain an approval or waiver from, or to avoid an action or proceeding by, any Governmental
Entities; (ii) the obtaining of all necessary consents or waivers from third parties; and (iii) the execution and delivery of any additional
instruments necessary to consummate the Merger and to fully carry out the purposes of this Agreement. The Company and Parent shall, subject
to applicable Law, promptly: (A) cooperate and coordinate with the other in the taking of the actions contemplated by clauses (i), (ii),
and (iii) immediately above; and (B) supply the other with any information that may be reasonably required in order to effectuate the
taking of such actions. Each party hereto shall promptly inform the other party or parties hereto, as the case may be, of any communication
from any Governmental Entity regarding any of the transactions contemplated by this Agreement. If the Company receives a request for additional
information or documentary material from any Governmental Entity with respect to the transactions contemplated by this Agreement, then
it shall use reasonable best efforts to make, or cause to be made, as soon as reasonably practicable and after consultation with the other
party, an appropriate response in compliance with such request, and, if permitted by applicable Law and by any applicable Governmental
Entity, provide Parent’s counsel with advance notice and the opportunity to attend and participate in any meeting with any Governmental
Entity in respect of any filing made thereto in connection with the transactions contemplated by this Agreement.


 


(b)Actions or Proceedings. In the event
that any administrative or judicial action or proceeding is instituted (or threatened to be instituted) by a Governmental Entity or private
party challenging the Merger or any other transaction contemplated by this Agreement, or any other agreement contemplated hereby, the
Company shall cooperate in all respects with Parent and Merger Sub and shall use its reasonable best efforts to contest and resist any
such action or proceeding and to have vacated, lifted, reversed, or overturned any Order, whether temporary, preliminary, or permanent,
that is in effect and that prohibits, prevents, or restricts consummation of the transactions contemplated by this Agreement. Notwithstanding
anything in this Agreement to the contrary, none of Parent, Merger Sub, or any of their respective Affiliates shall be required to defend,
contest, or resist any action or proceeding, whether judicial or administrative, or to take any action to have vacated, lifted, reversed,
or overturned any Order, in connection with the transactions contemplated by this Agreement.


 


Section 5.12Public Announcements. The initial press release
with respect to this Agreement and the transactions contemplated hereby shall be a release mutually agreed to by the Company and Parent.
Thereafter, each of the Company and Parent agrees that no public release, statement, announcement, or other disclosure concerning the
Merger and the other transactions contemplated hereby shall be issued by any party without the prior written consent of the other party
which consent shall not be unreasonably withheld, conditioned, or delayed, except as may be required by: (a) applicable Law, (b) court
process, (c) the rules or regulations of any applicable United States securities exchange, or (d) any Governmental Entity to which the
relevant party is subject or submits; provided, in each such case, that the party making the release, statement, announcement, or other
disclosure shall use its reasonable best efforts to allow the other party reasonable time to comment on such release, statement, announcement,
or other disclosure in advance of such issuance.


 


Section 5.13Stock Exchange Matters. Parent shall use its
reasonable best efforts to cause the Parent Common Shares to be issued in connection with the Merger to be listed on Nasdaq (or such other
stock exchange as may be mutually agreed upon by the Company and Parent), subject to official notice of issuance, prior to the Effective
Time.


 


Section 5.14[Reserved]


 


 






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Section 5.15Stockholder Litigation. The Company shall promptly
advise Parent in writing after becoming aware of any Legal Action commenced, or to the Company’s Knowledge threatened, against the
Company or any of its directors by any stockholder of the Company (on their own behalf or on behalf of the Company) relating to this Agreement
or the transactions contemplated hereby (including the Merger and the other transactions contemplated hereby) and shall keep Parent reasonably
informed regarding any such Legal Action. The Company shall: (a) give Parent the opportunity to participate in the defense and settlement
of any such stockholder litigation, (b) keep Parent reasonably apprised on a prompt basis of proposed strategy and other significant decisions
with respect to any such stockholder litigation, and provide Parent with the opportunity to consult with the Company regarding the defense
of any such litigation, which advice the Company shall consider in good faith, and (c) not settle any such stockholder litigation without
the prior written consent of Parent (which consent shall not be unreasonably withheld, delayed, or conditioned).


 


Section 5.16Obligations of Merger Sub. Parent will take
all action necessary to cause Merger Sub to perform its obligations under this Agreement and to consummate the Merger on the terms and
conditions set forth in this Agreement.


 


Section 5.17Resignations. At the written request of Parent,
the Company shall cause each director of the Company or any director of any of the Company’s Subsidiaries to resign in such capacity,
with such resignations to be effective as of the Effective Time.


 


Section 5.18Working Capital Funding. Following the Closing,
subject to customary conditions and non- breach of any terms of this Agreement or any other agreement between Parent and Company or Surviving
Corporation (“Related Agreements”), Parent will make available to the Surviving Corporation, up to a maximum of $2,500,000,
in the form of a line of credit, or a contribution of debt, equity or a combination thereof, to be used as general working capital with
monthly draws (“Working Capital Funding”) by Surviving Corporation, which shall not exceed operational expenses. The total
amount available for draw under the Working Capital Funding will be reduced by all amounts drawn by the Company and/or Surviving Corporation
under that certain secured bridge line of credit in the amount of up to $499,880.


.


Section 5.19Post-Closing Operations. From
the Closing Date to the Milepost Deadline, unless restricted or prohibited by Law or there is a material breach of this Agreement or Related
Agreements by Company or Surviving Corporation, the Parent and Surviving Corporation will use its reasonable efforts to provide Surviving
Corporation a reasonable opportunity to achieve its stated business objectives, as set forth in the “Indieflix Business Model current
2021-02 CTG V1” and delivered in connection with the Letter of Intent dated May 6, 2021 (“Business Objectives”). In
addition, so long as there is no material breach under this Agreement by Surviving Corporation, and Surviving Corporation is operating
in accordance with its Business Objectives, Parent agrees that it will not dispose of or reorganize Surviving Corporation in a manner
that would, materially adverse change its business operations from the Business Objectives, or otherwise take action that would, or would
be likely to, materially impair or circumvent the ability to earn the full amount of the Earn-Out Shares without cause or in bad faith.
In the event that for any reason, Parent takes any action that materially impairs or circumvents the ability to earn the full amount of
the Earn-Out Shares, this shall be deemed an Acceleration Event, subject to Section 2.07(c).


 


Section 5.20Further Assurances. At and after
the Effective Time, the officers and directors of the Surviving Corporation shall be authorized to execute and deliver, in the name and
on behalf of the Company or Merger Sub, any deeds, bills of sale, assignments, or assurances and to take and do, in the name and on behalf
of the Company or Merger Sub, any other actions and things to vest, perfect, or confirm of record or otherwise in the Surviving Corporation
any and all right, title, and interest in, to and under any of the rights, properties, or assets of the Company acquired or to be acquired
by the Surviving Corporation as a result of, or in connection with, the Merger.


 


 






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ARTICLE VI


CONDITIONS


 


Section 6.01Conditions to Each Party’s Obligation to Effect
the Merger. The respective obligations of each party to this Agreement to effect the Merger is subject to the satisfaction or waiver
(where permissible pursuant to applicable Law) on or prior to the Closing of each of the following conditions:


 


(a)               
Consent and Approval. All required approvals and consents for this Agreement and the transactions contemplated by this Agreement
(the “Transactions”), including without limitation: (i) the approval of the Company Board of Directors, (ii) the Requisite
Company Vote, and (iii) the consent and/or approval of any required third party for Company to enter into this Agreement and to consummate
the Transactions shall have been obtained.


 


(b)       Listing.
The shares of Parent Common Shares issuable as Exchange Consideration and Earn-Out Shares pursuant to this Agreement shall have been approved
for listing on the Nasdaq, subject to official notice of issuance.


 


(c)       No Injunctions,
Restraints, or Illegality. No Governmental Entity having jurisdiction over any party hereto shall have enacted, issued, promulgated,
enforced, or entered any Laws or Orders, whether temporary, preliminary, or permanent, that make illegal, enjoin, or otherwise prohibit
consummation of the Merger, the Parent Stock Issuance, or the other transactions contemplated by this Agreement.


 


(d)       Governmental
Consents. All consents, approvals and other authorizations of any Governmental Entity set forth in Section 6.01 of the Company Disclosure
Schedule and Section 6.01 of the Parent Disclosure Schedule and required to consummate the Merger, the Parent Stock Issuance, and the
other transactions contemplated by this Agreement (other than the filing of the Certificate of Merger with the Secretary of State of the
State of Delaware) shall have been obtained, free of any condition that would reasonably be expected to have a Company Material Adverse
Effect or Parent Material Adverse Effect.


 


 






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Section 6.02Conditions to Obligations of Parent and Merger Sub.
The obligations of Parent and Merger Sub to effect the Merger are also subject to the satisfaction or waiver (where permissible pursuant
to applicable Law) by Parent and Merger Sub on or prior to the Closing of the following conditions:


 


(a)       Representations
and Warranties. (i) The representations and warranties of the Company (other than in Section 3.01(a), Section 3.02, Section 3.03(a),
Section 3.03(b)(i), Section 3.03(d), Section 3.03(e), Section 3.05(a), and Section 3.10)) set forth in Article III of this Agreement shall
be true and correct in all respects (without giving effect to any limitation indicated by the words “Company Material Adverse Effect,”
“in all material respects,” “in any material respect,” “material,” or “materially”) as
of the date of this Agreement and as of the Closing Date, as if made on and as of such date (except those representations and warranties
that address matters only as of a particular date, which shall be true and correct in all respects as of that date), except where the
failure of such representations and warranties to be so true and correct would not reasonably be expected to have, individually or in
the aggregate, a Company Material Adverse Effect; (ii) the representations and warranties of the Company contained in Section 3.02 shall
be true and correct (other than de minimis inaccuracies) as of the date of this Agreement and as of the Closing Date, as if made on and
as of such date (except those representations and warranties that address matters only as of a particular date, which shall be true and
correct in all material respects as of that date); and (iii) the representations and warranties contained in Section 3.01(a), Section
3.03(a), Section 3.03(b)(i), Section 3.03(d), Section 3.03(e), Section 3.05(a), and Section 3.10 shall be true and correct in all respects
as of the date of this Agreement and as of the Closing Date, as if made on and as of such date (except those representations and warranties
that address matters only as of a particular date, which shall be true and correct in all respects as of that date).


 


(b)       Performance
of Covenants. The Company shall have performed in all material respects all obligations, and complied in all material respects with
the agreements and covenants, in this Agreement required to be performed by or complied with by it at or prior to the Closing.


 


(c)       Company
Material Adverse Effect. Since the date of this Agreement, there shall not have been any Company Material Adverse Effect or any event,
change, or effect that would, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.


 


(d)       Officers
Certificate. Parent will have received a certificate, signed by the chief executive officer or chief financial officer of the Company,
certifying as to the matters set forth in Section 6.02(a), Section 6.02(b), and Section 6.02(c) hereof.


 


(e)        Convertible
Securities and Notes. There will be no outstanding shares of Company Series A and B Preferred Stock nor options, warrants or Company
Securities or Notes convertible into shares of Company Common Stock as of the Closing Date.


 


(f)       No Dissenters
Rights. No Company shareholder shall have exercised its dissenters’ rights, and to the Knowledge of the Company there is no
Company shareholder who intends to exercise dissenters’ rights.


 


(g)       Management.
Resolutions to appoint the officers and directors of the Surviving Corporation as of the Closing Date, pursuant to Section 1.06 shall
have been obtained, as required by corporate law.


 


(h)       Employment
Contracts. Scilla Andreen shall have entered into an employment agreement, in substantially the form attached hereto as Exhibit
B (“Employment Agreement”) as of the Closing Date with the Surviving Corporation.


 


(i)                
Due Diligence. There shall have been a satisfactory completion of due diligence by
Parent, its counsel and other representatives on the business, assets, financial condition, and corporate records of Company.


 


 






    36


     


    

 


(j)                
Related Party Transactions. There shall be no debts or amounts owing to Company by
any of its officers, former officers, directors, former directors, shareholders, employees or former employees or any family member thereof,
or any person with whom Company does not deal at arm’s length.


 


(k)              
Legal Proceeding. There shall be no legal proceeding or regulatory actions or proceedings
commenced, pending or threatened, against Company at the Closing Date which may, if determined against the interest of Company, have a
Company Material Adverse Effect.


 


(l)                
Inquiry or Investigation. There shall be no inquiry or investigation (whether formal
or informal) in relation to Company or any of its respective directors or officers, shall have been commenced or threatened by any stock
exchange, relevant securities commission or similar regulatory body having jurisdiction, such that the outcome of such inquiry or investigation
could have a material adverse effect on Company after giving effect to the Transaction.


 


(m)            
Release. Parent will have received the Release executed by each of the Noteholders.


 


Section 6.03Conditions to Obligation of the Company. The
obligation of the Company to effect the Merger is also subject to the satisfaction or waiver by the Company on or prior to the Closing
of the following conditions:


 


(a)       Representations
and Warranties. (i) The representations and warranties of Parent and Merger Sub (other than in Section 4.01(a), Section 4.02, Section
4.03(a), Section 4.03(b)(i), Section 4.03(d), Section 4.05, Section 4.08, and Section 4.10) set forth in Article IV of this Agreement
shall be true and correct (other than de minimis inaccuracies) (without giving effect to any limitation indicated by the words “Parent
Material Adverse Effect,” “in all material respects,” “in any material respect,” “material,”
or “materially”) as of the date of this Agreement and as of the Closing Date, as if made on and as of such date (except those
representations and warranties that address matters only as of a particular date, which shall be true and correct in all respects as of
that date), except where the failure of such representations and warranties to be so true and correct would not reasonably be expected
to have, individually or in the aggregate, a Parent Material Adverse Effect; (ii) the representations and warranties of Parent and Merger
Sub contained in Section 4.02 will be true and correct (other than de minimis inaccuracies) as of the date of this Agreement and as of
the Closing Date, as if made on and as of such date (except those representations and warranties that address matters only as of a particular
date, which shall be true and correct in all material respects as of that date); and (iii) the representations and warranties contained
in Section 4.01(a), Section 4.02, Section 4.03(a), Section 4.03(b)(i), Section 4.03(d), Section 4.05, Section 4.08, and Section 4.10 shall
be true and correct in all respects as of the date of this Agreement and as of immediately prior to the Closing Date, as if made on and
as of such date (except those representations and warranties that address matters only as of a particular date, which shall be true and
correct in all respects as of that date).


 


(b)       Performance
of Covenants. Parent and Merger Sub shall have performed in all material respects all obligations, and complied in all material respects
with the agreements and covenants, of this Agreement required to be performed by or complied with by them at or prior to the Closing.


 


(c)       Parent
Material Adverse Effect. Since the date of this Agreement, there shall not have been any Parent Material Adverse Effect or any event,
change, or effect that would, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect.


 


(d)       Officers
Certificate. The Company will have received a certificate, signed by an officer of Parent, certifying as to the matters set forth
in Section 6.03(a), Section 6.03(b), and Section 6.03(c).


 


(e)        Employment
Contracts. The Key Employees and Officers shall have entered into an employment agreement, as of the Closing Date, with the Surviving
Corporation.


 


 






    37


     


    

 


(f)       Management.
Resolutions to appoint the officers and directors of the Surviving Corporation as of the Closing Date, pursuant to Section 1.06 shall
have been obtained, as required by corporate law.


 


(g)       Due Diligence.
There shall have been a satisfactory completion of due diligence by Company, its counsel and other representatives on the business, assets,
financial condition, and corporate records of Parent.


 


(h)       Legal
Proceeding. There shall be no legal proceeding or regulatory actions or proceedings commenced, pending or threatened, against Parent
at the Closing Date which may, if determined against the interest of Parent, have a Parent Material Adverse Effect.


 


(i)       Inquiry
or Investigation. There shall be no inquiry or investigation (whether formal or informal) in relation to Parent or any of its respective
directors or officers, shall have been commenced or threatened by any stock exchange, relevant securities commission or similar regulatory
body having jurisdiction, such that the outcome of such inquiry or investigation could have a material adverse effect on Parent after
giving effect to the Transaction.


 


Section 6.04Frustration of Closing Conditions. Neither the
Company, Parent, or Merger Sub may rely, as a basis for not consummating the Merger or the other transactions contemplated by this Agreement,
on the failure of any condition set forth in Section 6.01, Section 6.02, or Section 6.03, as the case may be, to be satisfied if such
failure was caused by such party’s breach in any material respect of any provision of this Agreement.


 


ARTICLE VII


TERMINATION, AMENDMENT, AND WAIVER


 


Section 7.01Termination by Mutual Consent. This Agreement
may be terminated at any time prior to the Closing (whether before or after the receipt of the Requisite Company Vote) by the mutual written
consent of Parent and the Company.


 


Section 7.02Termination by Either Parent or the Company.
This Agreement may be terminated by either Parent or the Company at any time prior to the Closing (whether before or after the receipt
of the Requisite Company Vote):


 


(a)if the Merger has not been consummated on
or before September 15, 2021 (the “End Date”); provided, however, that the right to terminate this Agreement pursuant to this
Section 7.02(a) shall not be available to any party whose material breach of any representation, warranty, covenant, or agreement set
forth in this Agreement has been a contributing cause of, or primarily factor that resulted in, the failure of the Merger to be consummated
on or before the End Date;


 


(b)if any Governmental Entity of competent
jurisdiction shall have enacted, issued, promulgated, enforced, or entered any Law or Order making illegal, permanently enjoining, or
otherwise permanently prohibiting the consummation of the Merger, the Parent Stock Issuance, or the other transactions contemplated by
this Agreement, and such Law or Order shall have become final and nonappealable; provided, however, that the right to terminate this Agreement
pursuant to this Section 7.02(b) shall not be available to any party whose material breach of any representation, warranty, covenant,
or agreement set forth in this Agreement has been a contributing cause of, or resulted in, the issuance, promulgation, enforcement, or
entry of any such Law or Order; or


 


 






    38


     


    

 


(c)if this Agreement has been submitted to
the stockholders of the Company for adoption at a duly convened Company Stockholders Meeting and the Requisite Company Vote shall not
have been obtained at such meeting (unless such Company Stockholders Meeting has been adjourned or postponed, in which case at the final
adjournment or postponement thereof).


 


Section 7.03Termination by Parent. This Agreement may be
terminated by Parent at any time prior to the Closing:


 


(a)if there shall have been a breach of any
representation, warranty, covenant, or agreement on the part of the Company set forth in this Agreement such that the conditions to the
Closing of the Merger set forth in Section 6.02(a) or Section 6.02(b), as applicable, would not be satisfied and, in either such case,
such breach is incapable of being cured by the End Date; provided, that Parent shall have given the Company at least 20 days written notice
prior to such termination stating Parent’s intention to terminate this Agreement pursuant to this Section 7.03(a); provided further,
that Parent shall not have the right to terminate this Agreement pursuant to this Section 7.03(a) if Parent or Merger Sub is then in material
breach of any representation, warranty, covenant, or obligation hereunder that would cause any condition set forth in Section 6.03(a)
or Section 6.03(b) not to be satisfied.


 


Section 7.04Termination by the Company. This Agreement may
be terminated by the Company at any time prior to the Closing:


 


(a)if there shall have been a breach of any
representation, warranty, covenant, or agreement on the part of Parent or Merger Sub set forth in this Agreement such that the conditions
to the Closing of the Merger set forth in Section 6.03(a) or Section 6.03(b), as applicable, would not be satisfied and, in either such
case, such breach is incapable of being cured by the End Date; provided, that the Company shall have given Parent at least 20 days written
notice prior to such termination stating the Company’s intention to terminate this Agreement pursuant to this Section 7.04(a); provided
further, that the Company shall not have the right to terminate this Agreement pursuant to this Section 7.04(a) if the Company is then
in material breach of any representation, warranty, covenant, or obligation hereunder that would cause any condition set forth in Section
6.02(a) or Section 6.02(b) not to be satisfied.


 


Section 7.05Notice of Termination; Effect of Termination.
The party desiring to terminate this Agreement pursuant to this Article VII (other than pursuant to Section 7.01) shall deliver written
notice of such termination to each other party hereto specifying with particularity the reason for such termination, and any such termination
in accordance with this Section 7.05 shall be effective immediately upon delivery of such written notice to the other party. If this Agreement
is terminated pursuant to this Article VII, it will become void and of no further force and effect, with no liability on the part of any
party to this Agreement (or any stockholder, director, officer, employee, agent, or Representative of such party) to any other party hereto,
except: (a) with respect to Section 5.03(b), Section 7.03, Section 7.04, Section 7.05, Section 7.06, and Article VIII (and any related
definitions contained in any such Sections or Article), which shall remain in full force and effect; and (b) with respect to any liabilities
or damages incurred or suffered by a party, to the extent such liabilities or damages were the result of fraud or the breach by another
party of any of its representations, warranties, covenants, or other agreements set forth in this Agreement.


 


Section 7.06Fees and Expenses Following Termination.


 


(a)If this Agreement is terminated by: (i)
Parent pursuant to Section 7.03(a), or by the Company pursuant to Section 7.04(a), then the non-breaching party shall have all rights
and remedies against the breaching party for reasonable costs and expenses (including its reasonable attorneys’ fees and expenses
incurred or accrued in connection with such suit).


 


 






    39


     


    

 


(b)Except as expressly set forth in this Section
7.06, all Expenses incurred in connection with this Agreement and the transactions contemplated hereby will be paid by the party incurring
such Expenses.


 


Section 7.07Amendment. At any time prior to the Effective
Time, this Agreement may be amended or supplemented in any and all respects, whether before or after receipt of the Requisite Company
Vote, by written agreement signed by each of the parties hereto; provided, however, that: (a) following the receipt of the Requisite Company
Vote, there shall be no amendment or supplement to the provisions of this Agreement which by Law would require further approval by the
holders of Company Capital Stock without such approval.


 


Section 7.08Extension; Waiver. At any time prior to the
Effective Time, Parent or Merger Sub, on the one hand, or the Company, on the other hand, may: (a) extend the time for the performance
of any of the obligations of the other party(ies); (b) waive any inaccuracies in the representations and warranties of the other party(ies)
contained in this Agreement or in any document delivered under this Agreement; or (c) unless prohibited by applicable Law, waive compliance
with any of the covenants, agreements, or conditions contained in this Agreement. Any agreement on the part of a party to any extension
or waiver will be valid only if set forth in an instrument in writing signed by such party. The failure of any party to assert any of
its rights under this Agreement or otherwise will not constitute a waiver of such rights.


 


ARTICLE VIII


MISCELLANEOUS


 


Section 8.01Definitions. For purposes of this Agreement,
the following terms will have the following meanings when used herein with initial capital letters:


 


“Acquisition Agreement” has the meaning
set forth in Section 5.04(a).


 


“Affiliate” means, with respect to
any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such first Person.
For the purposes of this definition, “control” (including, the terms “controlling,” “controlled by,”
and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities, by Contract,
or otherwise.


 


“Affordable Care Act” means the Patient
Protection and Affordable Care Act (PPACA), as amended by the Health Care and Education Reconciliation Act (HCERA).


 


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


 


“Associate” has the meaning set forth
in Section 203(c)(2) of the DGCL.


 


“Book-Entry Share” has the meaning
set forth in Section 2.01(e).


 


“Business Day” means any day, other
than Saturday, Sunday, or any day on which banking institutions located in New York, NY are authorized or required by Law or other governmental
action to close.


 


“Cancelled Shares” has the meaning
set forth in Section 2.01(a).


 


“Certificate” has the meaning set forth
in Section 2.01(e).


 


 






    40


     


    

 


“Certificate of Merger” has the meaning
set forth in Section 1.03.


 


“Charter Documents” means: (a) with
respect to a corporation, the charter, articles or certificate of incorporation, as applicable, and bylaws thereof; (b) with respect to
a limited liability company, the certificate of formation or organization, as applicable, and the operating or limited liability company
agreement, as applicable, thereof; (c) with respect to a partnership, the certificate of formation and the partnership agreement; and
(d) with respect to any other Person the organizational, constituent and/or governing documents and/or instruments of such Person.


 


“Closing” has the meaning set forth
in Section 1.02.


 


“Closing Date” has the meaning set
forth in Section 1.02.


 


“COBRA” means the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended, and as codified in Section 4980B of the Code and Section 601 et. seq. of ERISA.


 


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


 


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


 


“Company Balance Sheet” has the meaning
set forth in Section 3.04(e).


 


“Company Board” has the meaning set
forth in the Recitals.


 


“Company Board Recommendation” has
the meaning set forth in Section 3.03(d).


 


“Company Capital Stock” shall mean,
collectively, the Company’s Common Stock, Series A Preferred Stock and Series B Preferred Stock.


 


“Company Continuing Employees” has
the meaning set forth in Section 5.09(b).


 


“Company Disclosure Schedule” means
the Disclosure Schedule, dated as of the date of this Agreement and delivered by the Company to Parent concurrently with the execution
of this Agreement.


 


“Company Employee” has the meaning
set forth in Section 3.12(a).


 


“Company Employee Plans” has the meaning
set forth in Section 3.12(a).


 


“Company Equity Award” means a Company
Stock Option or a Company Restricted Share granted under one of the Company Stock Plans, as the case may be.


 


“Company ERISA Affiliate” means all
employers, trades, or businesses (whether or not incorporated) that would be treated together with the Company or any of its Affiliates
as a “single employer” within the meaning of Section 414 of the Code.


 


“Company IP” has the meaning set forth
in Section 3.07(b).


 


“Company IP Agreements” means all licenses,
sublicenses, consent to use agreements, settlements, coexistence agreements, covenants not to sue, waivers, releases, permissions, and
other Contracts, whether written or oral, relating to Intellectual Property and to which the Company or any of its Subsidiaries is a party,
beneficiary, or otherwise bound.


 


 






    41


     


    

 


“Company IT Systems” means all software,
computer hardware, servers, networks, platforms, peripherals, and similar or related items of automated, computerized, or other information
technology networks and systems (including telecommunications networks and systems for voice, data, and video) owned, leased, licensed,
or used (including through cloud-based or other third-party service providers) by the Company or any of its Subsidiaries.


 


“Company Material Adverse Effect” means
any event, circumstance, development, occurrence, fact, condition, effect, or change (each, an “Effect”) that is, or would
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 Company and its Subsidiaries, taken as a whole; or (b) the ability of the Company to consummate
the transactions contemplated hereby on a timely basis; provided, however, that a Company Material Adverse Effect shall not be deemed
to include any Effect (alone or in combination) arising out of, relating to, or resulting from: (i) changes generally affecting the economy,
financial or securities markets, or political conditions; (ii) the execution and delivery, announcement or pendency of the transactions
contemplated by this Agreement (it being understood and agreed that this clause shall not apply with respect to any representation or
warranty that is intended to address the consequences of the announcement or the pendency of this Agreement); (iii) any changes in applicable
Law, GAAP, or IFRS or other applicable accounting standards (iv) acts of war or terrorism, or military actions, or the escalation thereof;
(v) natural disasters, epidemics, pandemics, or disease outbreaks (including the COVID-19 virus)/public health emergencies (as declared
by the World Health Organization or the Health and Human Services Secretary of the United States); (vi) general conditions in the industry
in which the Company and its Subsidiaries operate; and (vii) any failure, in and of itself, by the Company to meet any internal or published
projections, forecasts, estimates, or predictions in respect of revenues, earnings, or other financial or operating metrics for any period
(it being understood that any Effect underlying such failure may be deemed to constitute, or be taken into account in determining whether
there has been or would reasonably be expected to become, a Company Material Adverse Effect, to the extent permitted by this definition
and not otherwise excepted by another clause of this proviso); or (viii) actions taken as required or specifically permitted by the Agreement
or actions or omissions taken with Parent’s consent; provided further, however, that any Effect referred to in clauses (i), (iii),
(iv), (v), or (vi) immediately above shall be taken into account in determining whether a Company Material Adverse Effect has occurred
or would reasonably be expected to occur if it has a disproportionate effect on the Company and its Subsidiaries, taken as a whole, compared
to other participants in the industries in which the Company and its Subsidiaries conduct their businesses (in which case, only the incremental
disproportionate adverse effect may be taken into account in determining whether a Company Material Adverse Effect has occurred).


 


“Company Material Contract” has the
meaning set forth in Section 3.15(a).


 


“Company-Owned IP” means all Intellectual
Property owned by the Company or any of its Subsidiaries.


 


“Company Preferred Stock” has the meaning
set forth in Section 3.02(a).


 


“Company Restricted Share” has the
meaning set forth in Section 2.06(b).


 


“Company Securities” has the meaning
set forth in Section 3.02(b)(ii).


 


“Company Stock Option” has the meaning
set forth in Section 2.06(a).


 


 






    42


     


    

 


“Company Stock Plans” means the 2014
Equity Incentive Plan.


 


“Company Stockholders Meeting” means
the special meeting of the stockholders of the Company to be held to consider the adoption of this Agreement.


 


“Company Subsidiary Securities” has
the meaning set forth in Section 3.02(d).


 


“Convertible Promissory Note” means
the convertible promissory note issued by the Company to each of the individuals set forth on Schedule 2.


 


“Confidentiality Agreement” has the
meaning set forth in Section 5.03(b).


 


“Consent” has the meaning set forth
in Section 3.03(c).


 


“Contracts” means any contracts, agreements,
licenses, notes, bonds, mortgages, indentures, leases, or other binding instruments or binding commitments, whether written or oral.


 


“DGCL” has the meaning set forth in the
Recitals.


 


“Earn-Out Shares has the meaning set forth in Section 2.07(a).


 


“EDGAR” has the meaning set forth in
Section 4.04(a).


 


“Effect” has the meaning set forth
in the definition of “Company Material Adverse Effect.”


 


“Effective Time” has the meaning set
forth in Section 1.03.


 


“End Date” has the meaning set forth
in Section 7.02(a).


 


“Environmental Laws” means any applicable
Law, and any Order or binding agreement with any Governmental Entity: (a) relating to pollution (or the cleanup thereof) or the protection
of natural resources, endangered or threatened species, human health or safety, or the environment (including 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.


 


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


 


“Exchange Act” has the meaning set
forth in Section 3.03(c).


 


 






    43


     


    

 


“Exchange Agent” has the meaning set
forth in Section 2.02(a).


 


“Exchange Consideration” has the meaning
set forth in Section 2.01(d).


 


“Exchange Fund” has the meaning set
forth in Section 2.02(a).


 


“Expenses” means, with respect to any
Person, all reasonable and documented out-of-pocket fees and expenses (including all fees and expenses of counsel, accountants, financial
advisors, and investment bankers of such Person and its Affiliates), incurred by such Person or on its behalf in connection with or related
to the authorization, preparation, negotiation, execution, and performance of this Agreement and all other matters related to the Merger,
the Parent Stock Issuance, and the other transactions contemplated by this Agreement.


 


“GAAP” has the meaning set forth in
Section 3.04(b).


 


“Governmental Entity” has the meaning
set forth in Section 3.03(c).


 


“Hazardous Substance” means: (a) any
material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid, mineral, or gas, in each case, whether naturally
occurring or man-made, that is hazardous, acutely hazardous, toxic, or words of similar import or regulatory effect under Environmental
Laws; and (b) any petroleum or petroleum-derived products, radon, radioactive materials or wastes, asbestos in any form, lead or lead-containing
materials, urea formaldehyde foam insulation, and polychlorinated biphenyls.


 


“HIPAA” means the Health Insurance
Portability and Accountability Act of 1996, as amended.


 


“Intellectual Property” means any and
all of the following arising pursuant to the Laws of any jurisdiction throughout the world: (a) trademarks, service marks, trade names,
and similar indicia of source or origin, all registrations and applications for registration thereof, and the goodwill connected with
the use of and symbolized by the foregoing; (b) copyrights and all registrations and applications for registration thereof; (c) trade
secrets and know-how; (d) patents and patent applications; (e) internet domain name registrations; and (f) other intellectual property
and related proprietary rights.


 


“IFRS” means the International Financial
Reporting Standards, as set forth by the International Accounting Standards Board.


 


“IRS” means the United States Internal
Revenue Service.


 


“Knowledge” means: (a) with respect
to the Company and its Subsidiaries, the actual knowledge of Scilla Andreen; and (b) with respect to Parent and its Subsidiaries, the
actual knowledge of Ronald W. Thomson and B. Andrus Wilson; in each case, after due inquiry.


 


“Laws” means any federal, state, local,
municipal, foreign, multi-national or other laws, common law, statutes, constitutions, ordinances, rules, regulations, codes, Orders,
or legally enforceable requirements enacted, issued, adopted, promulgated, enforced, ordered, or applied by any Governmental Entity.


 


“Lease” means all leases, subleases,
licenses, concessions, and other agreements (written or oral) under which the Company or any of its Subsidiaries holds any Leased Real
Estate, including the right to all security deposits and other amounts and instruments deposited by or on behalf of the Company or any
of its Subsidiaries thereunder.


 


 






    44


     


    

 


“Leased Real Estate” means all leasehold
or subleasehold estates and other rights to use or occupy any land, buildings, structures, improvements, fixtures, or other interest in
real property held by the Company or any of its Subsidiaries.


 


“Legal Action” means any legal, administrative,
arbitral, or other proceedings, suits, actions, investigations, examinations, claims, audits, hearings, charges, complaints, indictments,
litigations, or examinations.


 


“Liability” means any liability, indebtedness,
or obligation of any kind (whether accrued, absolute, contingent, matured, unmatured, determined, determinable, or otherwise, and whether
or not required to be recorded or reflected on a balance sheet under GAAP).


 


“Liens” means, with respect to any
property or asset, all pledges, liens, mortgages, charges, encumbrances, hypothecations, options, rights of first refusal, rights of first
offer, and security interests of any kind or nature whatsoever.


 


“Merger” has the meaning set forth
in Section 1.01.


 


“Merger Sub” has the meaning set forth
in the Preamble.


 


“Merger Sub Board” has the meaning
set forth in the Recitals.


 


“Nasdaq” has the meaning set forth
in Section 2.01(f).


 


“Noteholder Representative” has the
meaning set forth in the Preamble.


 


“Noteholders” means (a) with
respect to any time before the Closing, collectively, the holders of record of Notes outstanding as of such time, and (b) with
respect to any time at or after the Closing, collectively, the holders of record of Notes outstanding as of immediately prior to the
Effective Time, as set forth on Schedule 2.


 


“Notes” means each Convertible Promissory
Note by and between the Company and the Noteholders


 


“Order” has the meaning set forth in Section 3.09.


 


“Other Governmental Approvals” has
the meaning set forth in Section 3.03(c).


 


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


 


“Parent Balance Sheet” has the meaning
set forth in Section 4.04(c).


 


“Parent Benefit Plans” has the meaning
set forth in Section 5.09(b).


 


“Parent Board” has the meaning set
forth in the Recitals.


 


“Parent Board Recommendation” has the
meaning set forth in Section 4.03(d)(i).


 


 






    45


     


    

 


“Parent Common Shares” means restricted
common shares of the Parent, no par value.


 


“Parent Disclosure Schedule” means
the Disclosure Schedule, dated as of the date of this Agreement and delivered by Parent and Merger Sub to the Company concurrently with
the execution of this Agreement.


 


“Parent Equity Award” means a Parent
Stock Option or a Parent Restricted Share, as the case may be.


 


“Parent Material Adverse Effect” means
any Effect that is, or would 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 Parent and its Subsidiaries, taken as a whole; or (b) the ability
of Parent to consummate the transactions contemplated hereby on a timely basis; provided, however, that a Parent Material Adverse Effect
shall not be deemed to include any Effect (alone or in combination) arising out of, relating to, or resulting from: (i) changes generally
affecting the economy, financial or securities markets, or political conditions; (ii) the execution and delivery, announcement, or pendency
of the transactions contemplated by this Agreement (it being understood and agreed that this clause shall not apply with respect to any
representation or warranty that is intended to address the consequences of the execution and delivery of this Agreement or the announcement
or the pendency of this Agreement); (iii) any changes in applicable Law, GAAP, IFRS or other applicable accounting standards; (iv) acts
of war or terrorism, or the escalation thereof; (v) natural disasters, epidemics, pandemics, or disease outbreaks (including the COVID-19
virus)/public health emergencies (as declared by the World Health Organization or the Health and Human Services Secretary of the United
States); (vi) general conditions in the industry in which Parent and its Subsidiaries operate; (vii) any failure, in and of itself, by
Parent to meet any internal or published projections, forecasts, estimates, or predictions in respect of revenues, earnings, or other
financial or operating metrics for any period (it being understood that any Effect underlying such failure may be deemed to constitute,
or be taken into account in determining whether there has been or would reasonably be expected to become, a Parent Material Adverse Effect,
to the extent permitted by this definition and not otherwise excepted by another clause of this proviso); (viii) any change, in and of
itself, in the market price or trading volume of Parent’s securities (it being understood that any Effect underlying such change
may be deemed to constitute, or be taken into account in determining whether there has been or would reasonably be expected to become,
a Parent Material Adverse Effect, to the extent permitted by this definition and not otherwise excepted by another clause of this proviso);
or (ix) actions taken as required or specifically permitted by the Agreement or actions or omissions taken with the Company’s consent;
provided further, however, that any Effect referred to in clauses (i), (iii), (iv), (v), or (vi) immediately above shall be taken into
account in determining whether a Parent Material Adverse Effect has occurred or would reasonably be expected to occur if it has a disproportionate
effect on Parent and its Subsidiaries, taken as a whole, compared to other participants in the industries in which Parent and its Subsidiaries
conduct their businesses (in which case, only the incremental disproportionate adverse effect may be taken into account in determining
whether a Parent Material Adverse Effect has occurred).


 


“Parent Preferred Stock” has the meaning
set forth in Section 4.02(a).


 


“Parent Restricted Share” means any
Parent Common Shares subject to vesting, repurchase, or other lapse of restrictions.


 


“Parent SEC Documents” has the meaning
set forth in Section 4.04(a).


 


“Parent Securities” has the meaning
set forth in Section 4.02(b)(ii).


 


“Parent Stock Issuance” has the meaning
set forth in the Recitals.


 


 






    46


     


    

 


“Parent Stock Option” means any option
to purchase Parent Common Shares.


 


“Parent Subsidiary Securities” has
the meaning set forth in Section 4.02(d).


 


“PBGC” has the meaning set forth in
Section 3.12(d).


 


“Per Share Cash-Out Consideration”
means the quotient of (a) $500 divided by (b) the aggregate number of shares of Company Capital Stock issued and outstanding
(on a one for one basis regardless of class), rounded to the nearest cent.


 


“Permits” has the meaning set forth
in Section 3.08(b).


 


“Permitted Liens” means: (a) statutory
Liens for current Taxes or other governmental charges not yet due and payable or the amount or validity of which is being contested in
good faith (provided appropriate reserves required pursuant to GAAP have been made in respect thereof); (b) mechanics’, carriers’,
workers’, repairers’, and similar statutory Liens arising or incurred in the ordinary course of business for amounts which
are not delinquent or which are being contested by appropriate proceedings (provided appropriate reserves required pursuant to GAAP have
been made in respect thereof); (c) zoning, entitlement, building, and other land use regulations imposed by Governmental Entities having
jurisdiction over such Person’s owned or leased real property, which are not violated by the current use and operation of such real
property; (d) covenants, conditions, restrictions, easements, and other similar non-monetary matters of record affecting title to such
Person’s owned or leased real property, which do not materially impair the occupancy or use of such real property for the purposes
for which it is currently used in connection with such Person’s businesses; (e) any right of way or easement related to public roads
and highways, which do not materially impair the occupancy or use of such real property for the purposes for which it is currently used
in connection with such Person’s businesses; and (f) Liens arising under workers’ compensation, unemployment insurance, social
security, retirement, and similar legislation.


 


“Person” means any individual, corporation,
limited or general partnership, limited liability company, limited liability partnership, trust, association, joint venture, Governmental
Entity, or other entity or group (which term will include a “group” as such term is defined in Section 13(d)(3) of the Exchange
Act).


 


“Real Estate” means the Leased Real
Estate.


 


“Related Agreements” has the
meaning set forth in Section 5.18.


 


“Release” has the meaning set
forth in Section 2.01(d).


 


“Representatives” has the meaning
set forth in Section 5.04(a).


 


“Requisite Company Vote” has the meaning
set forth in Section 3.03(a).


 


“SEC” has the meaning set forth in
Section 3.03(c).


 


“Securities Act” has the meaning set forth
in Section 3.03(c).


 


“Subsidiary” of a Person means a corporation,
partnership, limited liability company, or other business entity of which a majority of the shares of voting securities is at the time
beneficially owned, or the management of which is otherwise controlled, directly or indirectly, through one or more intermediaries, or
both, by such Person.


 


 






    47


     


    

 


“Surviving Corporation” has the meaning
set forth in Section 1.01.


 


“Takeover Proposal” means with respect
to the Company, an inquiry, proposal, or offer from, or indication of interest in making a proposal or offer by, any Person or group relating
to any transaction or series of related transactions (other than the transactions contemplated by this Agreement), involving any: (a)
direct or indirect acquisition of assets of such party hereto or its Subsidiaries (including any voting equity interests of Subsidiaries,
but excluding sales of assets in the ordinary course of business) equal to 15% or more of the fair market value of such party and its
Subsidiaries’ consolidated assets or to which 15% or more of such party’s and its Subsidiaries’ net revenues or net
income on a consolidated basis are attributable; (b) direct or indirect acquisition of 15% or more of the voting equity interests of such
party hereto or any of its Subsidiaries whose business constitutes 15% or more of the consolidated net revenues, net income, or assets
of such party and its Subsidiaries, taken as a whole; (c) tender offer or exchange offer that if consummated would result in any Person
or group (as defined in Section 13(d) of the Exchange Act) beneficially owning (within the meaning of Section 13(d) of the Exchange Act)
15% or more of the voting power of such party hereto; (d) merger, consolidation, other business combination, or similar transaction involving
such party hereto or any of its Subsidiaries, pursuant to which such Person or group (as defined in Section 13(d) of the Exchange Act)
would own 15% or more of the consolidated net revenues, net income, or assets of such party and its Subsidiaries, taken as a whole; (e)
liquidation, dissolution (or the adoption of a plan of liquidation or dissolution), or recapitalization or other significant corporate
reorganization of such party hereto or one or more of its Subsidiaries which, individually or in the aggregate, generate or constitute
15% or more of the consolidated net revenues, net income, or assets of such party and its Subsidiaries, taken as a whole; or (f) any combination
of the foregoing.


 


“Taxes” means all federal, state, local,
foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration, profits, license, lease,
service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental, stamp, occupation,
premium, property (real or personal), real property gains, windfall profits, customs, duties or other taxes, fees, assessments, or charges
of any kind whatsoever, together with any interest, additions or penalties with respect thereto and any interest in respect of such additions
or penalties.


 


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


 


“Treasury Regulations” means
the Treasury regulations promulgated under the Code.


 


“Unvested Options” means (a) with respect
to any time before the Closing, Options that are unexpired, unexercised, unvested and outstanding as of such time and (b) with respect
to any time at or after the Closing, Options that are unexpired, unexercised, unvested and outstanding as of immediately prior to the
Effective Time.


 


“Vested Options” means (a) with respect to
any time before the Closing, Options that are unexpired, unexercised, vested and outstanding as of such time and (b) with respect to any
time at or after the Closing, Options that are unexpired, unexercised, vested and outstanding as of immediately prior to the Effective
Time.


 


“Voting Debt” has the meaning set forth
in Section 3.02(c).


 


 






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Section 8.02Interpretation; Construction.


 


(a)The table of contents and headings herein
are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect any
of the provisions hereof. Where a reference in this Agreement is made to a Section, Exhibit, Article, or Schedule, such reference shall
be to a Section of, Exhibit to, Article of, or Schedule of this Agreement unless otherwise indicated. Unless the context otherwise requires,
references herein: (i) to an agreement, instrument, or other document means such agreement, instrument, or other document as amended,
supplemented, and modified from time to time to the extent permitted by the provisions thereof; and (ii) to a statute means such statute
as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. Whenever the words
“include,” “includes,” or “including” are used in this Agreement, they shall be deemed to be followed
by the words “without limitation,” and the word “or” is not exclusive. The word “extent” in the phrase
“to the extent” means the degree to which a subject or other thing extends, and does not simply mean “if.” A reference
in this Agreement to $ or dollars is to U.S. dollars. The definitions of terms herein shall apply equally to the singular and plural forms
of the terms defined. The words “hereof,” “herein,” “hereby,” “hereto,” and “hereunder”
and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of
this Agreement. References to “this Agreement” shall include the Company Disclosure Schedule and Parent Disclosure Schedule.


 


(b)The parties have participated jointly in
negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement
shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any
party by virtue of the authorship of any provision of this Agreement.


 


Section 8.03Survival. 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 until the date that is two (2) years from the Closing Date; provided, that the representations and warranties in Section 3.01(a),
Section 3.02(a), Section 3.03, Section 3.10, Section 4.01(a), Section 4.02(a), Section 4.03 and Section 4.08 shall survive indefinitely.
This Section 8.03 does not limit any covenant or agreement of the parties contained in this Agreement which, by its terms, contemplates
performance after the Effective Time. The Confidentiality Agreement will survive termination of this Agreement in accordance with its
terms.


 


Section 8.04Governing Law. This Agreement and all Legal
Actions (whether based on contract, tort, or statute) arising out of, relating to, or in connection with this Agreement or the actions
of any of the parties hereto in the negotiation, administration, performance, or enforcement hereof, shall be governed by and construed
in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction) that would cause the application of Laws of any jurisdiction other than those
of the State Delaware.


 


 






    49


     


    

 


Section 8.05Submission to Jurisdiction. Each of the parties
hereto irrevocably agrees that any Legal Action with respect to this Agreement and the rights and obligations arising hereunder, or for
recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by any
other party hereto or its successors or assigns shall be brought and determined exclusively in Washington State Court, or in the event
(but only in the event) that such court does not have subject matter jurisdiction over such Legal Action, in the Federal Court in the
State of Washington. Each of the parties hereto agrees that mailing of process or other papers in connection with any such Legal Action
in the manner provided in Section 8.07 or in such other manner as may be permitted by applicable Laws, will be valid and sufficient service
thereof. Each of the parties hereto hereby irrevocably submits with regard to any such Legal Action for itself and in respect of its property,
generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any Legal Action
relating to this Agreement or any of the transactions contemplated by this Agreement in any court or tribunal other than the aforesaid
courts. Each of the parties hereto hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim,
or otherwise, in any Legal Action with respect to this Agreement and the rights and obligations arising hereunder, or for recognition
and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder: (a) any claim that it is
not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve process in accordance
with this Section 8.05; (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal
process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise); and (c) to the fullest extent permitted by the applicable Law, any claim that (i) the suit, action,
or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action, or proceeding is improper, or (iii)
this Agreement, or the subject matter hereof, may not be enforced in or by such courts.


 


Section 8.06Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES
AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE,
EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES
THAT: (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE
THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION; (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (C) SUCH PARTY MAKES
THIS WAIVER VOLUNTARILY; AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 8.06.


 


Section 8.07Notices. All notices, requests, consents, claims,
demands, waivers, and other communications hereunder shall be in writing and shall be deemed to have been given upon the earlier of actual
receipt or (a) when delivered by hand providing proof of delivery; (b) when received by the addressee if sent by a nationally recognized
overnight courier (receipt requested); or (c) on the date sent by email if sent during normal business hours of the recipient, and on
the next Business Day if sent after normal business hours of the recipient. Such communications must be sent to the respective parties
at the following addresses (or to such other Persons or at such other address for a party as shall be specified in a notice given in accordance
with this Section 8.07):


 


	If to Parent or Merger Sub, to: Liquid Media Group Ltd.
	#202, 5626 Larch Street,
	Vancouver, BC V6M 4E1
	Canada
	Attention: Ronald Thomson
	Email:  
	 
	with a copy (which will not constitute notice to Parent or Merger Sub) to: 
	 
	Lewis Brisbois Bisggard & Smith
	333 Bush Street, Suite 1100
	San Francisco, CA 94104
	Attention: Daniel Eng
	Email:



 









    50


     


    










	If to the Company, to: IndieFlix Group, Inc.
	4111 E. Madison St., Suite 310
	Attention: Scilla Andreen
	Email:  
	 
	with a copy (which will not constitute notice to the Company) to:  
	 
	Carney Badley Spellman, P.S.
	701 5th Ave #3600
	Seattle, WA 98104
	Attention: Daniel Neuman
	Email:  



 





Section 8.08Entire Agreement. This Agreement (including
all exhibits, annexes, and schedules referred to herein), the Company Disclosure Schedule, the Parent Disclosure Schedule, and the Confidentiality
Agreement constitute the entire agreement among the parties with respect to the subject matter of this Agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties to this Agreement with respect to the subject matter of
this Agreement. In the event of any inconsistency between the statements in the body of this Agreement, the Confidentiality Agreement,
the Parent Disclosure Schedule, and the Company Disclosure Schedule (other than an exception expressly set forth as such in the Parent
Disclosure Schedule or Company Disclosure Schedule), the statements in the body of this Agreement will control.


 


Section 8.09No Third-Party Beneficiaries. This Agreement
is for the sole benefit of the parties hereto and their permitted assigns and respective successors 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 8.10Severability. 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.
Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable
manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.


 


Section 8.11Assignment. This Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither Parent or Merger
Sub, on the one hand, nor the Company on the other hand, may assign its rights or obligations hereunder without the prior written consent
of the other party (Parent in the case of Parent and Merger Sub). No assignment shall relieve the assigning party of any of its obligations
hereunder.


 


Section 8.12Remedies Cumulative. Except as otherwise provided
in this Agreement, any and all remedies expressly conferred upon a party to this Agreement will be cumulative with, and not exclusive
of, any other remedy contained in this Agreement, at Law, or in equity. The exercise by a party to this Agreement of any one remedy will
not preclude the exercise by it of any other remedy.


 


 






    51


     


    

 


Section 8.13Specific Performance.


 


(a)The parties hereto 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 an injunction or injunctions to prevent breaches or threatened breaches of this Agreement or to enforce specifically the
performance of the terms and provisions hereof in any federal court located in the State of Delaware or any Delaware state court, in addition
to any other remedy to which they are entitled at Law or in equity.


 


(b)Each party further agrees that: (i) no such
party will oppose the granting of an injunction or specific performance as provided herein on the basis that the other party has an adequate
remedy at law or that an award of specific performance is not an appropriate remedy for any reason at law or equity; (ii) no such party
will oppose the specific performance of the terms and provisions of this Agreement; and (iii) no other party or any other Person shall
be required to obtain, furnish, or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred
to in this Section 8.13, and each party irrevocably waives any right it may have to require the obtaining, furnishing, or posting of any
such bond or similar instrument.


 


Section 8.14Counterparts; Effectiveness. This Agreement
may be executed in any number of counterparts, all of which will be one and the same agreement. This Agreement will become effective when
each party to this Agreement will have received counterparts signed by all of the other parties.


 


 


Section 8.15Noteholder Representative.
By virtue of the execution and delivery of the Release, “Noteholder Representative” means Scilla Andreen, not as an officer,
manager or member of the Company, but as an individual representing the Noteholder pursuant to a power of attorney granted by the Noteholder
to the Noteholder Representative. Any amendment, consent or approval required or action by the Noteholder pursuant to this Agreement will
be effected by the Noteholder Representative.





 


ARTICLE IX


INDEMNIFICATION


 


9.1       Obligation of the Noteholders
to Indemnify and Reimburse. From and after the Closing, each Noteholder and its respective successors and assigns, severally only
and not jointly and severally, shall indemnify, reimburse, defend and hold harmless Parent and its Affiliates, officers, directors employees
and agents, from and against any losses imposed upon, incurred or suffered by any of them, directly or indirectly, based upon, arising
out of or otherwise resulting from (i) any inaccuracy in or any breach of any representation or warranty of the Company; and (ii) any
breach on the part of the Company of any covenant or agreement set forth in this Agreement.


 


9.2       Obligation of Parent and
Surviving Corporation to Indemnify and Reimburse. From and after the Closing, Parent and Surviving Corporation and their successors
and assigns, jointly and severally, shall indemnify, defend and hold harmless the Noteholders and their respective Affiliates, officers,
directors employees, and agents and its successors and assigns from and against any losses imposed upon, incurred or suffered by any of
them, directly or indirectly, based upon, arising out of or otherwise resulting from (i) any inaccuracy in or breach of any representation
or warranty of Parent or Merger Sub; (ii) any breach on the part of Parent or Merger Sub of any covenant or agreement set forth in this
Agreement; and (iii) the business operations of the Surviving Corporation following the Closing.


 






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9.3       Limitations.
Notwithstanding anything to the contrary contained in this Agreement, the maximum amount of indemnifiable losses which may be recovered
from any Noteholder arising out of or resulting from the causes set forth in Section 9.1shall not exceed the aggregate of Exchange
Consideration, the Earn-Out Shares and the cash in lieu of fractional shares of Parent Common Shares actually received by such Noteholder.





 


[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.


 





	 	IndieFlix Group, Inc.	 
	 	 	 	 
	 	By:	 /s/ Scilla Andreen	 
	 	Name: 	Scilla Andreen	 
	 	Title: 	Chief Executive Officer	 









 


	 	Liquid Media Group Ltd.	 
	 	 	 	 
	 	By: 	/s/ Ronald Thomson	 
	 	Name: 	Ronald Thomson	 
	 	Title: 	Chief Executive Officer	 



 


	 	Liquid Media Merger Sub	 
	 	 	 	 
	 	By: 	/s/ Ronald Thomson	 
	 	Name: 	Ronald Thomson	 
	 	Title: 	Chief Executive Officer	 






 


 


	 	Scilla Andreen,	 
	 	as representative of the Noteholders	 
	 	 	 	 
	 	By:	/s/ Scilla Andreen	 
	 	Name: 	Scilla Andreen	 


















 


 


 





[Signature page to Agreement and Plan of Merger]