Execution
Copy


 


ASSET
PURCHASE AGREEMENT


among:


 


ETRANSMEDIA
TECHNOLOGY, INC.

a New York corporation,


 


FORMATIV
HEALTH MANAGEMENT, INC.

a Delaware corporation


 


ASSOCIATED
BILLING SERVICES, LLC


a
Delaware limited liability company


 


DOCTORSXL
HOLDINGS, LLC


a
Delaware limited liability company


 


HARRT
ASSOCIATES, LLC


a
Delaware limited liability company


 


MEDI
BILLING SOLUTION SERVICES, LLC


a
Delaware limited liability company


 


MEDI-CLAIM
SERVICES, LLC


a
Delaware limited liability company


 


MEDIGISTICS,
LLC


a
Florida limited liability company


 


ARCHIIVUS
LLC


a
Delaware limited liability company


 


DOCTORSXL,
LLC


a
Nevada limited liability company


 


ASSOCIATED
BILLING SERVICES, INC.


an
Arizona corporation


 


MEDI
BILLING SOLUTION SERVICES, INC.


a
Delaware corporation


 


MEDI-CLAIM
SERVICES, INC.


a
Delaware corporation


 


MEDIGISTICS,
INC.


an
Ohio corporation


 


and


MTBC-MED,
INC,

a Delaware corporation


 





 



 





Dated
on March 27, 2019


 





 



 


 




    	 	 	 



     


    

 


TABLE
OF CONTENTS


 


	 	 	Page
	1.	Sale
    of Assets; Related Transactions	2
	 	 	 
	 	1.1	Purchase
    and Sale of the Purchased Assets	2
	 	1.2	Purchase
    Price	2
	 	1.3	Closing
    Conditions	2
	 	1.4	Allocation
    of Purchase Price	5
	 	 	 	 
	2.	Representations
    and Warranties of the Seller	5
	 	 	 
	 	2.1	Entity
    Representations and Warranties	5
	 	2.2	Reserved	6
	 	2.3	Title
    to Purchased Assets	6
	 	2.4	Receivables	6
	 	2.5	Clients	7
	 	2.6	Intellectual
    Property; Privacy	7
	 	2.7	Contracts	9
	 	2.8	Liabilities	10
	 	2.9	Notices
    of Certain Events	10
	 	2.10	Compliance
    with Legal Requirements	10
	 	2.11	Governmental
    Authorizations	12
	 	2.12	Tax
    Matters	13
	 	2.13	Employee
    and Labor Matters	13
	 	2.14	Insurance	15
	 	2.15	Certain
    Payments	15
	 	2.16	Proceedings;
    Orders	15
	 	2.17	Authority;
    Binding Nature of Agreements	16
	 	2.18	Non-Contravention;
    Consents	16
	 	2.19	Brokers	17
	 	2.20	No
    Other Representations and Warranties	17
	 	 	 	 
	3.	Representations
    and Warranties of the Purchaser	17
	 	 	 
	 	3.1	Representations
    and Warranties of the Purchaser	17
	 	3.2	Authority;
    Binding Nature of Agreements	18
	 	3.3	Non-Contravention	18
	 	3.4	Brokers	18
	 	3.5	Sufficiency
    of Funds	19
	 	3.6	Investigation
    by Purchaser; Exclusivity of Representations	19
	 	 	 	 
	4.	Indemnification	19
	 	 	 
	 	4.1	Survival
    of Representations and Covenants	19
	 	4.2	Indemnification
    by the Seller	19


 




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	 	4.3	Indemnification
    by The Purchaser	21
	 	4.4	Conditions
    of Indemnification	23
	 	4.5	Exclusive
    Remedies	23
	 	 	 	 
	5.	Certain
    Post-Closing Covenants	23
	 	 	 
	 	5.1	Further
    Actions	23
	 	5.2	Confidentiality;
    Publicity	23
	 	5.3	Transition
    Services	24
	 	5.4	Accounts
    Receivable	25
	 	5.5	[Software
    License	26
	 	5.6	Non-Solicitation	26
	 	5.7	Change
    of Name	26
	 	5.8	Transfer
    Taxes	26
	 	5.9	Bulk
    Sales Laws	27
	 	5.10	Financial
    Statements	27
	 	5.11	Business
    Records	27
	 	 	 	 
	6.	Termination	28
	 	 	 
	 	6.1	Termination
    Events	28
	 	6.2	Notice	29
	 	6.3	Effects
    of Termination	29
	 	6.4	Fees
    and Expenses	29
	 	 	 	
	7.	Miscellaneous
    Provisions	29
	 	 	 
	 	7.1	Further
    Assurances	29
	 	7.2	Sole
    Representations and Warranties	29
	 	7.3	Notices	30
	 	7.4	Headings	30
	 	7.5	Counterparts	30
	 	7.6	[Unattached
    Exhibits	31
	 	7.7	Specific
    Performance	31
	 	7.8	Waiver	31
	 	7.9	Amendments	31
	 	7.10	Severability	31
	 	7.11	Entire
    Agreement	32
	 	7.12	Construction	32
	 	7.13	Choice
    of Law and Venue	32
	 	7.14	Waiver
    of Jury Trial	32
	 	7.15	No
    Third-Party Beneficiaries	33


 




    	 	ii	 



    	 	 	 



    

 


ASSET
PURCHASE AGREEMENT


 


This
Asset Purchase Agreement (“Agreement”) entered into on March 27, 2019 (the “Execution Date”), by and among
ETRANSMEDIA TECHNOLOGY, INC., a New York corporation (the “Seller”), FORMATIV HEALTH MANAGEMENT, INC., a Delaware
Corporation (“Formativ”), and ASSOCIATED BILLING SERVICES. LLC, a Delaware Limited Liability Company, DOCTORSXL HOLDINGS,
LLC, a Delaware limited liability company, HARRT ASSOCIATES, LLC, a Delaware limited liability company, MEDI BILLING SOLUTION
SERVICES, LLC, a Delaware limited liability company, MEDI-CLAIM SERVICES, LLC, a Delaware limited liability company, MEDIGISTICS,
LLC, a Florida limited liability company, ARCHIIVUS, LLC, a Delaware limited liability company, DOCTORSXL, LLC, a Nevada
limited liability company, ASSOCIATED BILLING SERVICES, INC., an Arizona corporation, MEDI BILLING SOLUTION SERVICES, INC., a
Delaware corporation, MEDI-CLAIM SERVICES, INC., a Delaware corporation, MEDIGISTICS, INC., a Ohio corporation (collectively,
the “Seller Subsidiaries), and MTBC-MED INC., a Delaware corporation (the “Purchaser”). Seller, Formativ, and
Seller Subsidiaries may hereinafter be referred to as the “Seller Parties.” Seller, Seller Parties, and Purchaser
may each be referred to herein each individually as a “Party” and/or collectively as the “Parties.” Certain
capitalized terms used in this Agreement are defined in Exhibit “A”.


 


RECITALS


 


Whereas,
the Seller and the Seller Subsidiaries (as hereinafter defined) are engaged in the business of providing medical billing, practice
management, credentialing, transcription, record retention, and request for information and related services to hospitals, group
physician practices and others in connection with medical care delivered by Part B Healthcare Providers (as hereinafter defined)
(the “Business” and the services rendered by the Business, the “Business Services” which, for the avoidance
of doubt, exclude any patient access services).


 


Whereas,
the Purchaser desires to purchase the Purchased Assets (as hereinafter defined) with respect to the Business (other than the Excluded
Assets (as hereinafter defined)) and Purchaser is willing to assume the Assumed Liabilities (as hereinafter defined) with respect
to the Business, on the terms and subject to the conditions set forth in this Agreement.


 


Whereas,
the Seller and Seller Subsidiaries, as applicable, wishes to sell the Purchased Assets to the Purchaser on the terms and subject
to the conditions set forth in this Agreement.


 


Now
Therefore, in consideration of the respective
covenants, agreements, representations, warranties and indemnities herein contained and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereby covenant and agree as follows:


 




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AGREEMENT


 


The
parties to this Agreement, intending to be legally bound, agree as follows:


 


1.       Sale
of Assets; Related Transactions.


 


1.1       Purchase
and Sale of the Purchased Assets. i) On the Closing Date, and on the terms and subject to the fulfillment of the conditions
of this Agreement, the Seller Parties agree to sell, assign, transfer and deliver to the Purchaser and cause the Seller Subsidiaries
as may be applicable to sell, assign, transfer and deliver to Purchaser, and the Purchaser agrees to purchase and accept from
the Seller and the Seller Subsidiaries all right, title and interest in and to the following assets, properties and rights of
Seller and the Seller Subsidiaries (collectively, the “Purchased Assets”), free and clear of all Liabilities and Encumbrances,
except the Permitted Encumbrances: (i) all of the Seller’s and Seller Subsidiaries’ rights and remedies, as of and
from the Closing Date, in, to and under each Acquired Contract; (ii) the Business Records; (iii) all fixed assets consisting of
furniture, computers, servers, and related equipment and related software licenses listed on Part 1.1(a)(iii) of the Disclosure
Schedule; (iv) all leasehold improvements relating to the Leases; (v) all prepayments with respect to the Seller Employee Plans
(“Benefit Plans Prepayment”) and deposits under Leases (“Lease Deposits”); (vi) all Seller IP and all
tangible embodiments of the Seller Products listed on Part 2.6 (a) of the Disclosure Schedule; (vii) all Contract rights relating
to restrictive covenants listed on Part 1.1(a)(vii) of the Disclosure Schedule; and (viii) all goodwill of Seller Parties related
to the Purchased Assets listed above.


 


(a)       Excluded
Assets. Purchaser shall not obtain any right, title or interest in or to any of Seller’s or Seller Subsidiaries’
assets other than the Purchased Assets and all of such other assets of Seller and the Seller Subsidiaries including the property,
assets or rights listed on Exhibit “B” shall be excluded from the Purchased Assets.


 


(b)       Assumed
Liabilities. The Purchaser shall assume, pay, discharge and perform when due the Assumed Liabilities. The Purchaser shall
not assume or be liable for any Liabilities of the Seller or the Seller Subsidiaries other than the Assumed Liabilities.


 


1.2       Purchase
Price.


 


(a)       The
total purchase price (the “Purchase Price”) shall be as follows: One Million Five Hundred Thousand Dollars ($1,500,000.00)
paid via bank wire transfer of immediately available funds to Seller’s bank account.


 


(b)       Except
as explicitly provided otherwise herein, Seller or Seller Subsidiaries, as applicable, will be solely responsible for all expenses
and Liabilities that accrue relative to the Business and Purchased Assets through the end of the day on the day before the Closing
Date;


 


1.3       Closing
Conditions. The obligations of Seller Parties and Purchaser to consummate the Closing are subject to the satisfaction of each
of the following conditions:


 


(a)       The
closing of the sale of the Purchased Assets to the Purchaser (the “Closing”) shall be effective as of 12:01 a.m. ET
on the Closing Date or such other date and time as mutually agreed upon by the Parties;


 


(b)       No
injunction, stay, or similar Order issued by any Governmental Body shall be in effect that restrains, enjoins, stays, or prohibits
the consummation of the Transactions;


 




    	 	2	 



    	 	 	 



    

 


(c)       The
Parties shall have agreed upon the content of all closing documents, Schedules, and Exhibits thereto;


 


(d)       Purchaser
shall have successfully and to its satisfaction completed all requisite due diligence prior to Closing;


 


(e)       On
the Closing Date (or the first business day immediately following the same if the Closing Date is a weekend or National holiday)
or a date to be mutually decided upon:


 


(i)       The
Seller (and each of the Seller Subsidiaries as may be appropriate) shall execute and deliver to the Purchaser such bills of sale
(in the form attached as Exhibit “C”), endorsements, and other documents as may (in the reasonable judgment
of the Purchaser) be necessary or appropriate to convey, transfer and deliver to the Purchaser good and valid title to the tangible
assets included in the Purchased Assets free of any Encumbrances other than Permitted Encumbrances;


 


(ii)       The
Purchaser shall execute and deliver to the Seller (and each of the Seller Subsidiaries as may be appropriate) the Assumption Agreement
(in the form attached as Exhibit “D”);


 


(iii)       Except
as set forth on Exhibit “B”, subject to compliance with Legal Requirements, the Seller and the Seller Subsidiaries
shall deliver to Purchaser possession and custody of (A) the Acquired Contracts (to the extent copies can be located in the files
of the Seller and the Seller Subsidiaries) and (B) all Customer Data and other records and data related exclusively and necessarily
to the Acquired Contracts, Retained Employees and Intellectual Property (collectively, the “Business Records”);


 


(iv)       The
Seller (or one of the Seller Subsidiaries as may be appropriate) shall deliver to the Purchaser all consents, waivers, approvals
or authorizations from the appropriate parties, entities, and/or authorities set forth on Part 1.3(e)(iv) of the Disclosure Schedule;


 


(v)       The
Seller (or one of the Seller Subsidiaries as may be appropriate) and Purchaser shall each execute and deliver to the other Party
a Lease assignment for each of the offices in Charlotte NC, Phoenix AZ, and Columbus OH in form mutually acceptable to Seller
and the Purchaser;


 


(vi)       The
Purchaser shall pay the Purchase Price in accordance with Section 1.2(a);


 


(vii)       The
Purchaser shall pay the Seller by wire transfer of immediately available funds an amount equal to the sum of the Benefit Plans
Prepayment, the Lease Deposits and the April rent payment;


 




    	 	3	 



    	 	 	 



    

 


(viii)       The
Purchaser shall deliver to Seller: (A)(i) a copy of the certificate of incorporation of the Purchaser, certified as of a date
no more than ten (10) business days prior to the Closing Date by the Secretary of State of the State of Delaware, (ii) a certificate
of the Secretary of State of the State of Delaware, dated as of a date no more than ten (10) business days prior to the Closing
Date, as to the valid existence and good standing of the Purchaser in the State of Delaware, and (iii) a copy of such resolutions
of the Purchaser as are appropriate to authorize the execution, delivery and performance by it of this Agreement and each other
Transactional Agreement, with each of the items described in the foregoing clauses (i) through (iii) certified as true, correct
and complete as of the Closing Date by an authorized officer of the Purchaser; and (B) an officer’s certificate of the Purchaser
certifying that each of the conditions required to be satisfied by the Purchaser pursuant to this Section 1.3 have been satisfied;


 


(ix)       The
Seller Parties shall deliver to Purchaser: (A)(i) a copy of the certificate of incorporation or formation, as applicable, of the
Seller Parties (ii) a certificate of the Secretary of State of the state of incorporation or formation, as applicable, of each
Seller Party, dated as of a date no more than ten (10) business days prior to the Closing Date, as to the valid existence and
good standing of the Seller Parties in the state of incorporation or formation, as applicable, (iii) a copy of such resolutions
of the Seller Parties as are appropriate to authorize the execution, delivery and performance by it of this Agreement and each
other Transactional Agreement, with each of the items described in the foregoing clauses (i) through (iii) as well as the Representations
and Warranties of Seller Parties contained in Section 2 hereof are certified as true, correct and complete as of the Closing Date
by an authorized officer of the Seller Parties; and (B) an officer’s certificate of the Seller Parties certifying that each
of the conditions required to be satisfied by the Seller Parties pursuant to this Section 1.3 have been satisfied;


 


(f)       From
the Execution Date through the Closing Date, Seller and the Seller Subsidiaries shall have operated the Business as normal and
customary for Seller and Seller Subsidiaries prior to the Execution Date;


 


(g)       The
Parties hereto shall have performed and complied in all material respects with all agreements, covenants and conditions required
by this Agreement to be performed or complied with by them prior to or on the Closing Date;


 


(h)       The
representations and warranties of the Parties hereto contained in this Agreement shall be true and correct in all material respects
on and as of the Closing Date, as if made at and as of such date (or to the extent such representations and warranties speak as
of an earlier date, they shall be true and correct in all material respects as of such earlier date);


 


(i)       Each
Party shall have performed or tendered performance of such Party’s obligations to be performed hereunder at the Closing;
and


 


(j)       The
Seller (or one of the Seller Subsidiaries as may be appropriate) shall have received all consents, waivers, approvals or authorizations
from the appropriate parties, entities, and/or authorities set forth on Part 1.3(e)(iv) of the Disclosure Schedule.


 




    	 	4	 



    	 	 	 



    

 


1.4       Allocation
of the Purchase Price. The Purchase Price allocation is to be based on the fair value of the assets acquired and liabilities
assumed. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The value of the tangible assets will be based on the Seller’s closing
balance sheet. The valuation of intangible assets is performed under an income approach, such as using discounted cash flows,
which is the present value of forecasted cash flows applicable to the asset. The remainder of the purchase price is assigned to
goodwill. The Parties agree that the Purchase Price allocation will be agreed upon by Seller Parties and Purchaser upon completion
of the Audit and will be subject to approval by Purchaser’s auditor, Grant Thornton, prior to the Purchaser filing its Report
on Form 8-K. The Purchase Price allocation will be prepared in a manner consistent with Section 1060 of the Code and the regulations
promulgated thereunder. Seller and Purchaser agree to: (i) be bound by the allocation of the Purchase Price among the Purchased
Assets as reflected on the allocation mutually agreed to by Seller Parties and Purchaser (the “Purchase Price Allocation”);
(ii) act consistently with the Purchase Price Allocation in the preparation and the filing of all Tax Returns, including filing
Form 8594 with their United States federal income Tax Return(s) for the taxable year that includes the Closing Date, and in the
course of any audit, review or litigation related to their Taxes for the taxable year that includes the Closing Date; and (iii)
not take and not permit any of their Affiliates to take a position inconsistent with the Purchase Price Allocation including for
income Tax purposes, including United States federal and state income Tax and foreign income Tax, unless otherwise required pursuant
to a “determination” within the meaning of Section 1313(a) of the Code.


 


2.       Representations
and Warranties of the Seller.


 


The
Seller Parties, jointly and severally, represent and warrant to the Purchaser as follows:


 


2.1       Entity
Representations and Warranties.


 


(a)       Organization
and Existence of the Seller. Each Seller Party is a corporation or limited liability company, as applicable, organized and
validly existing under the laws of its jurisdiction of formation.


 


(b)       Entity
Power and Capacity. The Seller Parties have the entity power, authority and capacity to own or lease their assets, including
the Purchased Assets, and to carry on the Business as now being conducted by it.


 


(c)       Validity
of Agreement.


 


(i)       The
Seller Parties have all necessary entity power, authority and capacity to enter into and perform its obligations under this Agreement
and any other agreements or instruments to be delivered or given by it pursuant to this Agreement.


 


(ii)       The
execution, delivery and performance by the Seller Parties of this Agreement and the consummation of the Transactions have been
duly authorized by all necessary entity action on the part of Seller Parties.


 


(iii)       This
Agreement and any other agreements entered into pursuant to this Agreement to which the Seller or Seller Parties are a Party constitute
or will constitute legal, valid and binding obligations of the Seller enforceable against the Seller in accordance with their
respective terms, except as enforcement may be limited by bankruptcy, insolvency or other Laws affecting the rights of creditors
generally and except that equitable remedies may be granted only in the discretion of a court of competent jurisdiction.


 




    	 	5	 



    	 	 	 



    

 


(d)       Authorizations.
There is no requirement for the Seller Parties to make any filing with, give any notice to or obtain any consent or authorization
from any Governmental Body as a condition to the lawful consummation of the Transactions.


 


(e)       No
Violation. Except as set forth on Part 2.18 of the Disclosure Schedule, the execution and delivery of this Agreement by the
Seller Parties, the consummation of the Transactions by Seller Parties, and the fulfillment by the Seller Parties of the terms,
conditions and provisions hereof will not (with or without the giving of notice or lapse of time, or both):


 


(i)       contravene
or violate or result in a breach or a default under or give rise to a right of termination, amendment or cancellation or the acceleration
of any obligations of the Seller under:


 


A.       any
Legal Requirement;


 


B.       any
Order applicable to the Seller Parties;


 


C.       the
governing documents or any resolutions of the Seller Parties; or


 


(ii)       result
in the creation or imposition of any Encumbrance on any of the Purchased Assets.


 


(f)       No
Other Agreements to Purchase. Except for the Purchaser’s rights pursuant to this Agreement, no Person has any option,
warrant, right, call, commitment, conversion right, right of exchange or other Contract or any right or privilege (whether by
law, pre-emptive or contractual) capable of becoming an option, commitment, conversion right, right of exchange or other Contract
for the purchase from the Seller or Seller Subsidiaries as applicable of any of the Purchased Assets.


 


2.2       Reserved.


 


2.3       Title
to Purchased Assets. The Seller (or one of the Seller Subsidiaries as may be appropriate) owns, and has good and valid title
to, all of the Purchased Assets. The Purchased Assets will be transferred and assigned to the Purchaser free and clear of any
Encumbrances other than the Permitted Encumbrances. Part 2.3 of the Disclosure Schedule identifies all of the Purchased Assets
that are being leased or licensed to the Seller or one of the Seller Subsidiaries. Except for the Excluded Assets, the Purchased
Assets will collectively constitute, as of the Closing Date, all of the properties, rights, interests and other tangible and intangible
assets necessary to enable the Purchaser to conduct the Business in the manner in which such Business is currently being conducted.


 


2.4       Receivables.
Part 2.4 of the Disclosure Schedule provides an accurate and complete breakdown and aging of all invoiced accounts receivable,
notes receivable and other receivables of the Seller and the Seller Subsidiaries as of the Execution Date, which are Excluded
Assets.


 




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2.5 Clients.


 


(a)       Part
2.5 of the Disclosure Schedule accurately identifies, and provides an accurate and complete client-wise monthly breakdown of the
Revenues received during the period beginning January 1, 2017, through the Execution Date from each Client. Except as set forth
in Part 2.5 of the Disclosure Schedule, to the Sellers’ Knowledge, since March 1, 2019, Seller Parties have not received
any notice (and prior to March 1, 2019 Seller Parties have not received any written notice) indicating that any Closing Date Client
may cease doing business with the Seller or Seller Subsidiary (as applicable) or may otherwise reduce in any material respect
the volume of business or the fee for business transacted by such Closing Date Client with the Seller or Seller Subsidiary (as
applicable) below historical levels.


 


(b)       Part
2.5(b) of the Disclosure Schedule accurately identifies, and provides an accurate and complete Pipeline Client list with anticipated
revenue, if known.


 


2.6       Intellectual
Property; Privacy.


 


(a)       Products
and Services. Part 2.6(a) of the Disclosure Schedule accurately identifies and sets forth a general description of each Seller
Product currently being designed, developed, marketed, distributed, provided, licensed, or sold by the Seller or Seller Subsidiaries.


 


(b)       Registered
IP. Part 2.6(b) of the Disclosure Schedule accurately identifies: (a) each item of Registered IP; (b) the jurisdiction and/or
Governmental Body in which such item of Registered IP has been registered or filed and the applicable registration or serial number;
and (c) any other Person that has an ownership interest in such item of Registered IP and the nature of such ownership interest.
The Seller Parties have provided to the Purchaser complete and accurate copies of all applications, correspondence with any Governmental
Body, and other material documents related to such item of Registered IP in each instance to the extent in their possession.


 


(c)       Inbound
Licenses. Part 2.6(c) of the Disclosure Schedule accurately identifies each written Contract pursuant to which any Intellectual
Property Right used in the operation of the Business as currently conducted that is or has been licensed, sold, assigned, or otherwise
conveyed or provided to the Seller (other than (i) Contracts between the Seller and its employees, (ii) non-exclusive Contracts
to third-party software that is not incorporated into, or used in the development, testing, distribution, maintenance, or support
of, any Seller Product and that is not otherwise material to the Seller’s Business; and (iii) Contracts under which commercially
available “off-the-shelf” software (including software as a service and cloud offerings) is licensed to Seller pursuant
to standard commercial terms for an aggregate license fee of less than $25,000 per year).


 


(d)       Outbound
Licenses. Part 2.6(d) of the Disclosure Schedule accurately identifies each written Contract pursuant to which any Person
has been granted any license under, or otherwise has received or acquired any right (whether or not currently exercisable) or
interest in, any Seller IP. The Seller is not bound by, and no Seller IP is subject to, any written Contract containing any covenant
or other provision that in any way limits or restricts the ability of the Seller to use, exploit, assert, or enforce any Seller
IP anywhere in the world.


 




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(e)       Royalty
Obligations. Part 2.6(e) of the Disclosure Schedule contains a complete and accurate list and summary of all royalties, fees,
commissions, and other amounts payable by the Seller to any Person (other than sales commissions paid to employees according to
the Seller’s standard commissions plan) upon or for the sale, or distribution of any Seller Product or the use of any Seller
IP. In the event Seller has no such royalty obligations, same is noted in Part 2.6(e) of the Disclosure Schedule


 


(f)       Ownership
Free and Clear. The Seller exclusively owns all right, title, and interest to and in the Seller IP free and clear of any Encumbrances
(other than licenses and rights granted pursuant to the Contracts identified in Part 2.6(f) of the Disclosure Schedule), it being
understood and acknowledged that the foregoing representation and warranty does not constitute a representation and warranty of
non-infringement of Intellectual Property Rights of any third Person.


 


(g)       Protection
of Proprietary Information. The Seller has taken all reasonable steps to maintain the confidentiality of and otherwise protect
and enforce their rights in all Seller IP. To Sellers’ Knowledge, without limiting the generality of the foregoing, no portion
of the source code for any software within the Seller IP has been disclosed or licensed to any escrow agent or other Person.


 


(h)       Sufficiency.
The Seller IP constitutes all of the material Intellectual Property Rights owned by Seller that is needed to conduct the Business
as currently conducted., it being understood and acknowledged that the foregoing representation and warranty
does not constitute a representation and warranty of non-infringement of Intellectual Property Rights of any third Person


 


(i)       Harmful
Code. To the actual knowledge of and upon reasonable inquiry (which shall be limited to making inquiries of direct
reports and shall not include inquiries of third parties including any Client or Vendor), and (“Sellers’
Knowledge”) the Seller Products set forth in Part 2.6(a) of the Disclosure Schedule do not contain any
“viruses,” “worms,” “time-bombs,” “key-locks,” or any other devices that
could disrupt or interfere with the operation of such Seller Products or equipment upon which the such
Seller Products are intended to operate.


 


(j)       Valid
and Enforceable; No Infringement. All Registered IP is, subsisting, and to Sellers’ Knowledge is valid
and enforceable. To Sellers’ Knowledge no Person has infringed, misappropriated, or otherwise violated since January 1,
2017, and to Sellers’ Knowledge no Person is currently infringing, misappropriating, or otherwise violating, any Seller
IP. Part 2.6(g) of the Disclosure Schedule accurately identifies (and the Seller has provided to the Purchaser a complete and
accurate copy of) each letter or other written communication or correspondence that has been sent or otherwise delivered by or
to the Seller or any representative of the Seller regarding any actual, alleged, or suspected infringement or misappropriation
of any Seller IP since January 1, 2017.


 


(k)       No
Infringement of Third-Party IP Rights. To Sellers’ Knowledge: (i) the conduct of the Business as currently conducted
does not infringe (directly, contributorily, by inducement, or otherwise), misappropriate, or otherwise violate or make unlawful
use of any Intellectual Property Right of any other Person; (ii) no Seller Product set forth in Part 2.6(a) of the Disclosure
Schedule infringes, violates, or makes unlawful use of any Intellectual Property Right of, or contains any Intellectual Property
misappropriated from, any other Person;. The Seller has not, in the previous two years, received any written
notice alleging that the conduct of the Business infringes, misappropriates, or violates any Intellectual Property Rights of another
Person, including any letter specifically offering that the Seller obtain a license to any Intellectual Property Right of another
Person.


 




    	 	8	 



    	 	 	 



    


 


(l)       Notwithstanding
anything herein to the contrary: (i) the representations and warranties set forth in this Section 2.6 are the only representations
and warranties relating to Intellectual Property Rights; and (ii) to the extent that any representation or warranty in this Section
2.6 relates to any condition, circumstance, or event, act, or omission that existed or occurred prior to January 1, 2017 (e.g.,
the entering into a written Contract), such representation and warranty is given solely as to Sellers’ Knowledge, whether
or not a knowledge qualifier is included in such representation or warranty.


 


2.7       Contracts.


 


(a)       Exhibits
“F”, “J” and “K” hereto contain full and accurate list of the Acquired Contracts, including
any addenda thereto. In the event that a copy of any Client Contract is unable to be located by Seller Parties, such is indicated
accordingly on the Exhibit. Each Acquired Contract is in full force and effect in accordance with the terms set forth therein,
except as enforcement may be limited by bankruptcy, insolvency or other Laws affecting the rights of creditors generally and except
that equitable remedies may be granted only in the discretion of a court of competent jurisdiction.


 


(b)       Except
as set forth in Part 2.7(b) of the Disclosure Schedule: (i) neither Seller nor any Seller Subsidiary is and to the Sellers’
Knowledge no other Person is in violation of or breach or default in under any Acquired Contract; and (ii) to the Seller’s
Knowledge, since March 1, 2019, the Seller has not received any notice or other communication regarding any actual or alleged
termination (and prior to March 1, 2019 Seller Parties have not received any written notice), material violation or material breach
of, or material default under, or intention to materially reduce or limit the scope of services or materially reduce the volume
of the business under any Acquired Contract; and (iii) to the Sellers’ Knowledge, neither the Seller nor any Seller Subsidiary
has waived any right under any Acquired Contract.


 


(c)       Except
as set forth in Part 2.7(c) of the Disclosure Schedule, from January 1, 2017 until the Execution Date, neither the Seller nor
the Seller Subsidiaries have guaranteed or otherwise agreed to cause, insure or become liable for, and neither the Seller nor
Seller Subsidiaries have pledged any of its assets to secure, the performance or payment of any obligation or other Liability
of any other Person.


 


(d)       The
performance of the Acquired Contracts has not resulted in any violation of or failure to comply with any Legal Requirement.


 


(e)       Except
as set forth in Part 2.7(e) of the Disclosure Schedule, Seller Parties have made no promise to any Client, Lessor or Vendor to
amend in any material respect any amount paid or payable to any party under any Acquired Contract or any other term or provision
of any Acquired Contract.


 


(f)       Except for Contracts which Seller or Seller Subsidiary, as applicable have not been able to locate in its files after a diligent
investigation for Clients whose names are set forth in Part 2.7(b) of the Disclosure Schedule, Seller has made available to Purchaser
true, correct and complete copies of all of its Acquired Contracts.


 




    	 	9	 



    	 	 	 



    


 


2.8       Liabilities.


 


(a)       The
Seller has not, at any time, (i) made a general assignment for the benefit of creditors, (ii) filed, or had filed against it,
any bankruptcy petition or similar filing, (iii) suffered the attachment or other judicial seizure of all or a substantial portion
of its assets, (iv) admitted in writing its inability to pay its debts as they become due, (v) been convicted of, or pleaded guilty
or no contest to, any felony, or (vi) taken or been the subject of any action that may have an adverse effect on its ability to
comply with or perform any of its covenants or obligations under any of the Transactional Agreements.


 


2.9       Notices
of Certain Events. From the Execution Date until the earlier of the termination of this Agreement pursuant to Section 6, or
the Closing Date, Seller Parties shall promptly notify Purchaser in writing of:


 


(a)       any
material written communication from any Governmental Body in connection with or relating to the Transactions;


 


(b)       the
commencement or threat of any legal actions, suits, investigations, or proceedings relating to, involving, or otherwise affecting
any Seller Parties, Seller Subsidiaries or the Business;


 


(c)       any
notice or threat of a Material Client’s intention to cancel, suspend, or otherwise terminate its relationship with Seller
or a Seller Subsidiary, or to materially and adversely change the terms upon which it pays for goods or services from Seller or
any Seller Subsidiary;


 


(d)       any
material change to the employment/staffing levels for the Business;


 


(e)       any
event or development that could have a Material Adverse Effect on the Business; or


 


(f)       any
communications from counterparties to Vendor Agreements or Leases which could have a Material Adverse Effect on the Business.


 


2.10       Compliance
with Legal Requirements.


 


(a)       Except
as set forth in Part 2.10(a) of the Disclosure Schedule: (a) the Seller and each Seller Subsidiary is in compliance in all material
respects with each Legal Requirement that is applicable to it or to the conduct of its business or the ownership or use of any
of its assets, including the Purchased Assets; and (b) the Seller and the Seller Subsidiaries have not received, at any time since
January 1, 2017, any notice from any Governmental Body or any other Person regarding (i) any violation of, or failure to comply
with, any Legal Requirement, or (ii) any obligation on the part of the Seller or a Seller Subsidiary to undertake, or to bear
all or any portion of the cost of, any environmental cleanup or any environmental remedial, corrective or response action of any
nature.


 




    	 	10	 



    	 	 	 



    


 


(b)       Since
January 1, 2017, neither Seller, any Seller Subsidiary nor to Sellers’ Knowledge any officer, director, manager, or any
agent, employee or independent contractor of the Seller or any Seller Subsidiary has submitted any claims for reimbursement on
behalf of any Client that are in violation of, nor has engaged in any activity that is in violation of, the federal Medicare or
federal or state Medicaid statutes, the federal TRICARE statute (10 U.S.C. § 1071 et seq.), the civil False Claims Act of
1863 (31 U.S.C. § 3729 et seq.), criminal false claims statutes (e.g., 18 U.S.C. §§ 287 and 1001), the Federal
Health Care Program Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), the Program Fraud Civil Remedies Act of 1986 (31 U.S.C.
§ 3801 et seq.), Section 14 of Public Law 100-93, the anti-fraud and related provisions of HIPAA, or related regulations
or other related or similar federal or state laws and regulations (collectively, “Health Care Program Laws”), including,
without limitation, the following:


 


(i)       making
or causing to be made a false statement or representation in any application for any benefit or payment;


 


(ii)       making
or causing to be made a false statement or representation for use in determining rights to any benefit or payment;


 


(iii)       soliciting
or receiving any remuneration (including any kickback, bribe or rebate), directly or indirectly, overtly or covertly, in cash
or kind (A) in return for referring an individual to a Person for the furnishing or arranging for the furnishing of any item or
service for which payment may be made in whole or in part under any Federal Health Care Program, or (B) in return for purchasing,
leasing or ordering, or arranging for or recommending purchasing, leasing or ordering of any good, facility, service or item for
which payment may be made in whole or in part under any Federal Health Care Program;


 


(iv)       offering
or paying any remuneration (including any kickback, bribe or rebate), directly or indirectly, overtly or covertly, in cash or
in kind, to any person to induce such Person (A) to refer an individual to a person for the furnishing or arranging of any item
or service for which payment may be made in whole or in part under a Federal Health Care Program, or (B) to purchase, lease, order
or arrange for or recommend purchasing, leasing or ordering of any good, facility, service or item for which payment may be made
in whole or in part under a Federal Health Care Program; or


 


(v)       any
other activity that violates any state or federal Legal Requirements, permit requirements and/or Payor contractual obligations,
if any, relating to prohibiting fraudulent, abusive or unlawful practices connected in any way with the provision of health care
items or services or the billing for such items or services provided to a beneficiary of any Federal Health Care Program.


 




    	 	11	 



    	 	 	 



    


 


(c)       The
Seller and Seller Subsidiaries, as applicable (i) are, and have at all times been, in all material respects in compliance with
HIPAA and Subtitle D of the Health Information Technology for Economic and Clinical Health Act (including all rules and regulations
thereunder) (the “HITECH Act”) and comparable state privacy and data security laws and regulations applicable to the
Seller and Seller Subsidiaries; and (ii) the Seller and Seller Subsidiaries, as applicable, have used and disclosed, and uses
and discloses, Protected Health Information (as defined in 45 C.F.R. § 160.103) (i) to the extent applicable, in accordance
with any limitations set forth in its Closing Date Client or Payor agreements; and (ii) to perform functions, activities or services
in accordance with the limitations set forth in HIPAA, the HITECH Act, and applicable state privacy and data security laws and
regulations (to the extent not preempted by federal law). The Seller and Seller Subsidiaries have not received, at any time, any
written notice from any Governmental Body or any other Person regarding any actual or suspected violation of, or failure to comply
with, HIPAA, the HITECH Act or applicable state privacy and data security laws and regulations. No breach has occurred with respect
to any unsecured Protected Health Information maintained by the Seller Parties that are subject to the notification requirements
of 45 C.F.R. part 164, Subpart D, and no information security or privacy breach event has occurred that would require notification
under any comparable state laws applicable to the Seller and/or Seller Subsidiaries, as applicable. With regard to compliance
with HIPAA, the HITECH Act, or applicable state privacy and data security laws and regulations, the Seller and all applicable
Seller Subsidiaries have no obligation to undertake, or to bear all or any portion of the cost of, any mitigation, notifications
or any remedial, corrective or response action of any nature. The Seller Products comply with HIPAA, the HITECH Act and applicable
state privacy and data security laws and regulations.


 


2.11       Governmental
Authorizations. Part 2.11 of the Disclosure Schedule identifies: (a) each Governmental Authorization that is held by the Seller
or a Seller Subsidiary; and (b) each other Governmental Authorization that is held by any employee of the Seller and relates to
or is used in connection with the Business. The Seller Parties have delivered to the Purchaser accurate and complete copies of
all of the Governmental Authorizations identified in Part 2.11 of the Disclosure Schedule, including all renewals thereof and
all amendments thereto. Each Governmental Authorization identified or required to be identified in Part 2.11 of the Disclosure
Schedule is valid and in full force and effect. Except as set forth in Part 2.11 of the Disclosure Schedule: (i) the Seller and
Seller Subsidiaries are and have at all times since January 1, 2017 been in compliance in all material respects with all of the
terms and requirements of each Governmental Authorization identified or required to be identified in Part 2.11 of the Disclosure
Schedule; (ii) since January 1, 2017, the Seller and Seller Subsidiaries have not received any notice from any Governmental Body
or any other Person regarding (A) any actual, alleged, possible or potential violation of or failure to comply with any term or
requirement of any Governmental Authorization, or (B) any actual, alleged, possible or potential revocation, withdrawal, suspension,
cancellation, termination or material modification of any Governmental Authorization; and (iii) since January 1, 2017, all applications
required to have been filed for the renewal of the Governmental Authorizations required to be identified in Part 2.11 of the Disclosure
Schedule have been duly filed on a timely basis with the appropriate Governmental Bodies, and each other notice or filing required
to have been given or made with respect to such Governmental Authorizations has been duly given or made on a timely basis with
the appropriate Governmental Body. The Governmental Authorizations identified in Part 2.11 of the Disclosure Schedule constitute
all of the Governmental Authorizations necessary (i) to enable the Seller and Seller Subsidiaries to conduct the Business in the
manner in which the Business is currently being conducted, and (ii) to permit the Seller and Seller Subsidiaries to own and use
the Purchased Assets in the manner in which they are currently owned and used.


 




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2.12       Tax
Matters. Except as set forth in Part 2.12 of the Disclosure Schedule:


 


(a)       The
Seller and Seller Subsidiaries, as applicable have filed all Tax Returns or will file Tax Returns under applicable Legal Requirements.
Seller and Seller Subsidiaries, as applicable represent that all such Tax Returns were correct and complete in all material respects.
All Taxes due and owing by the Seller and Seller Subsidiaries, as applicable (whether or not shown on any Tax Return) have been
paid. There are no Encumbrances for Taxes (other than Taxes not yet due and payable) upon any of the assets of the Seller and
Seller Subsidiaries, as applicable.


 


(b)       The
Seller and Seller Subsidiaries, as applicable have withheld and paid all Taxes required to have been withheld and paid in connection
with any amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third Party.


 


(c)       No
Proceedings with respect to any Tax is pending or being conducted with respect to the Seller and Seller Subsidiaries, as applicable.
The Seller and Seller Subsidiaries, as applicable have not received from any Governmental Body any (i) written (A) notice indicating
an intent to open an audit or other review for any Tax Return, (B) request for information related to a Tax matter, or (C) notice
of deficiency or proposed adjustment of or any amount of Tax proposed, asserted, or assessed by any Governmental Body against
the Seller and Seller Subsidiaries, as applicable or (ii) other notice since March 1, 2019 relating to any of the items referenced
in Section 2.12(c)(i).


 


(d)       Seller
Parties shall, at their own cost and expense, file any and all of Seller Parties’ past-due tax returns and pay any taxes
due under such past-due tax returns. Seller Parties represent and warrant that they shall bear full responsibility for the filing
of such tax returns and shall indemnify Purchaser against any and all claims, proceedings, or otherwise related to such filings.


 


(e)       Within
a reasonable period of time following the Closing Date, Seller Parties shall provide to Purchaser municipal, state and county
tax clearance certificates or letters demonstrating the payment of all tax liabilities with respect to the Business which, if
unpaid, could impose successor or continuing liability.


 


(f)       The
Seller Parties have not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect
to a Tax assessment or deficiency.


 


2.13       Employee
and Labor Matters.


 


(a)       Part
2.13(a) of the Disclosure Schedule accurately sets forth, with respect to each employee of the Seller (including any employee
of the Seller who is on a leave of absence or on layoff status):


 


(i)       the
name of such employee and the date as of which such employee was originally hired by the Seller;


 


(ii)       such
employee’s title, primary work location, and a description of such employee’s duties and responsibilities;


 




    	 	13	 



    	 	 	 



    


 


(iii)       the
aggregate dollar amount of the compensation (including wages, salary, commissions, director’s fees, fringe benefits, bonuses,
profit-sharing payments and other payments or benefits of any type) received by such employee from the Seller with respect to
services performed in 2018;


 


(iv)       such
employee’s annualized compensation as of the date of this Agreement;


 


(v)       each
Seller Employee Plan in which such employee participates or is eligible to participate; and


 


(vi)       any
Governmental Authorization that is held by such employee and that relates to or is useful in connection with the Seller’s
business.


 


(b)       The
employment of each of the Seller’s employees is terminable by the Seller at will. The Seller has delivered to the Purchaser
accurate and complete copies of all employee manuals and handbooks, disclosure materials, policy statements and other materials
relating to the employment of the current and former employees of the Seller.


 


(c)       Part
2.13(c) of the Disclosure Schedule accurately sets forth, with respect to each independent contractor of the Seller (exclusive
of attorneys, accountants, insurance agents and other professionals who have provided services to Seller):


 


(i)       the
name of such independent contractor and the date as of which such independent contractor was originally hired by the Seller;


 


(ii)       a
description of such independent contractor duties and responsibilities;


 


(iii)       the
aggregate dollar amount of the compensation (including all payments or benefits of any type) received by such independent contractor
from the Seller with respect to services performed in 2018 and for the period of 2019 prior to the Closing Date;


 


(iv)       the
terms of compensation of such independent contractor; and


 


(v)       any
Governmental Authorization that is held by such independent contractor and that relates to or is useful in connection with the
Seller’s business.


 


(d)       Except
as set forth in Part 2.13(d) of the Disclosure Schedule, the Seller is not a Party to or bound by any employment agreement or
any union contract, collective bargaining agreement or similar Contract.


 


(e)       None
of the current or former independent contractors of the Seller could be reclassified as an employee. Since January 1, 2017, the
Seller has not had any temporary or leased employees. No independent contractor of the Seller is eligible to participate in any
Seller Employee Plan.


 




    	 	14	 



    	 	 	 



    


 


2.14       Insurance.
Seller and the Seller Subsidiaries maintain insurance coverage of a character and in such amounts as are customarily insured against
by similarly situated companies in the same or similar businesses. No insurer under any such insurance policy has canceled or
disclaimed Liability under any such policy and no notice of cancellation or termination has been received by Seller or any Seller
Subsidiary since January 1, 2017. Part 2.14 of the Disclosure Schedule accurately sets forth with respect to each such insurance
policy maintained by the Seller and the Seller Subsidiaries: (i) the name of the insurance carrier that issued such policy and
the policy number of such policy; and (ii) a description of any claims pending, and any claims that have been asserted in the
past 24 months, with respect to such policy or any predecessor insurance policy. Seller Parties shall maintain their Errors and
Omissions insurance policy for a period of eighteen (18) months following the Closing Date at the same level of coverage for pre-Closing
incident as it exists on the Closing Date. 


 


2.15       Certain
Payments. The Seller has not, and to Sellers’ Knowledge, no officer, employee, agent or other Person associated with
or acting for or on behalf of the Seller or Seller Subsidiaries has, at any time, directly or indirectly: (a) used any corporate
funds (i) to make any unlawful political contribution or gift or for any other unlawful purpose relating to any political activity,
(ii) to make any unlawful payment to any governmental official or employee, or (iii) to establish or maintain any unlawful or
unrecorded fund or account of any nature; (b) made any false or fictitious entry, or failed to make any entry that should have
been made, in any of the books of account or other records of the Seller or Seller Subsidiaries, as applicable; (c) made any payoff,
influence payment, bribe, rebate, kickback or unlawful payment to any Person; or (d) made any payment to any Person, or provided
any favor or anything of value (whether in the form of property or services, or in any other form) to any Person, in either case
in violation of applicable Legal Requirements for the purpose of obtaining or paying for (i) favorable treatment in securing business,
or (ii) any other special concession.


 


2.16       Proceedings;
Orders. Except as set forth in Part 2.16 of the Disclosure Schedule, there is no pending Proceeding that involves the Seller
Parties that has had or would reasonably be expected to have a Material Adverse Effect and to Sellers’ Knowledge no Person
has threatened Seller or any Seller Subsidiary in writing during the 24 months preceding the date of this Agreement to commence
any such Proceeding: (i) that involves the Seller and/or any applicable Seller Subsidiaries or that otherwise relates to or might
affect the Business or any of the Purchased Assets (whether or not the Seller Parties are named as a party thereto); or (ii) that
challenges, or that may have the effect of preventing, delaying, making illegal or otherwise interfering with, any of the Transactions.
Except as set forth in Part 2.16 of the Disclosure Schedule, no Proceeding has been commenced by or against the Seller Parties
during the 24 months preceding the date of this Agreement. The Seller Parties have delivered to the Purchaser accurate and complete
copies of all pleadings, correspondence and other written materials (to which the Seller Parties have access) that relate to the
Proceedings identified in Part 2.16 of the Disclosure Schedule. There is no Order to which the Seller Parties, any Seller Subsidiary
or any of the assets owned or used by the Seller or any Seller Subsidiary, is subject. No employee of the Seller is subject to
any Order that may prohibit employee from engaging in or continuing any conduct, activity or practice relating to the Business.
To Seller’s Knowledge, there is no proposed Order that, if issued or otherwise put into effect, (i) may have a material
adverse effect on the Business, or on the ability of Seller Parties to comply with or perform any covenant or obligation under
any of the Transactional Agreements, or (ii) may have the effect of preventing, delaying, making illegal or otherwise interfering
with any of the Transactions


 




    	 	15	 



    	 	 	 



    


 


2.17       Authority;
Binding Nature of Agreements.


 


(a)       The
Seller Parties have the absolute and unrestricted right, power and authority to enter into and to perform its obligations under
each of the Transactional Agreements to which it is or may become a Party. This Agreement constitutes the legal, valid and binding
obligation of the Seller Parties, enforceable against the Seller Parties in accordance with its terms. Upon the execution of each
of the other Transactional Agreements at the Closing, each of such other Transactional Agreements to which the Seller Parties
are a Party will constitute the legal, valid and binding obligation of the Seller Parties and will be enforceable against the
Seller Parties in accordance with its terms.


 


2.18       Non-Contravention;
Consents. Except as set forth in Part 2.18 of the Disclosure Schedule, neither the execution and delivery of any of the Transactional
Agreements by the Seller Parties, nor the consummation or performance by the Seller Parties of any of the Transactions, or the
sale and assignment of the Purchased Assets to Purchaser, will directly or indirectly (with or without notice or lapse of time):


 


(a)       contravene,
conflict with or result in a violation of, the certificate of formation, operating agreement or other organizational documents
of Seller Parties;


 


(b)       contravene,
conflict with or result in a violation of, or give any Governmental Body or other Person the right to challenge any of the Transactions
or to exercise any remedy or obtain any relief under, any Legal Requirement or any Order to which the Seller Parties, or any of
the assets of the Seller Parties, is subject;


 


(c)       contravene,
conflict with or result in a violation of any of the terms or requirements of, or give any Governmental Body the right to revoke,
withdraw, suspend, cancel, terminate or modify, any Governmental Authorization that is to be included in the Purchased Assets
or is held by the Seller Parties or any employee of the Seller Parties;


 


(d)       contravene
or conflict with or result in a violation or breach of, or result in a default under, any provision of any of the Acquired Contracts;


 


(e)       give
any Person the right to (i) accelerate the maturity or performance of any Acquired Contract, or (ii) cancel, terminate or modify
any Acquired Contract; or


 


(f)       result
in the imposition or creation of any Encumbrance upon or with respect to any of the Purchased Assets.


 


Except
as set forth in Part 2.18 of the Disclosure Schedule, neither the Seller Parties nor the Seller Subsidiaries will be required
to make any filing with or give any notice to, or to obtain any Consent from, any Person in connection with the execution and
delivery of any of the Transactional Agreements or the consummation or performance of any of the Transactions.


 




    	 	16	 



    	 	 	 



    


 


2.19       Brokers.
Seller has not engaged any broker in respect of the Transactions. Seller shall indemnify and hold the Purchaser harmless from
and against any and all claims, demands, causes of action, debts or liabilities arising out of or on account of a claim by any
broker, finder, investment banker or agent that he, she or it is entitled to a commission or fees as a result of being retained
or used by the Seller.


 


2.20       No
Other Representations and Warranties. Except for the representations and warranties contained in this Section 2, neither the
Seller Parties nor any other Person on behalf of any Seller Parties makes any other express or implied representation or warranty
with respect to Seller, the Seller Subsidiaries or the Business or with respect to any other information provided to Purchaser,
and Seller Parties disclaim any other representations or warranties, whether made by the Seller Parties, the Seller Subsidiaries
or any of their respective Affiliates, or any of the Seller’s officers, directors, employees, agents or representatives.


 


3.       Representations
and Warranties of the Purchaser. 


 


The
Purchaser represents and warrants, to and for the benefit of the Seller, as follows:


 


3.1       Representations
and Warranties of the Purchaser.


 


The
Purchaser represents and warrants to the Seller Parties as of the date of this Agreement as follows:


 


(a)       Incorporation
and Existence of the Purchaser. The Purchaser is a corporation duly formed and validly existing under the Laws of State of
Delaware.


 


(b)       Validity
of Agreement.


 


(i)       The
Purchaser has all necessary corporate power to enter into and perform its obligations under this Agreement and any other agreements
or instruments to be delivered or given by it pursuant to this Agreement.


 


(ii)       The
execution, delivery and performance by the Purchaser of this Agreement and the consummation of the Transactions have been duly
authorized by all necessary corporate action on the part of the Purchaser.


 


(iii)       This
Agreement and any other agreements entered into pursuant to this Agreement to which the Purchaser is a Party constitute or will
constitute legal, valid and binding obligations of the Purchaser, enforceable against the Purchaser in accordance with their respective
terms, except as enforcement may be limited by bankruptcy, insolvency or other Laws affecting the rights of creditors generally
and except that equitable remedies may be granted only in the discretion of a court of competent jurisdiction.


 


(c)       Authorizations.
There is no requirement for the Purchaser to make any filing with, give any notice to or obtain any consent or Authorization from
any Governmental Body or any other third Party as a condition to the lawful consummation of the Transactions.


 




    	 	17	 



    	 	 	 



    

 


(d)       No
Violation. The execution and delivery of this Agreement by the Purchaser, the consummation of the Transactions and the fulfillment
by the Purchaser of the terms, conditions and provisions hereof will not (with or without the giving of notice or lapse of time,
or both) contravene or violate or result in a breach or a default under or give rise to a right of termination, amendment or cancellation
or the acceleration of any obligations of the Purchaser under:


 


(i)       any
Legal Requirement;


 


(ii)       any
judgment, Order, writ, injunction or decree of any Governmental Body having jurisdiction over the Purchaser;


 


(iii)       the
governing documents or any resolutions of the board of directors of the Purchaser; or


 


(iv)       the
provisions of any Contract to which the Purchaser is a Party or by which it is, or any of its properties or assets are, bound.


 


3.2       Authority;
Binding Nature of Agreements. The Purchaser has the absolute and unrestricted right, power and authority to enter into and
perform its obligations under this Agreement, and the execution and delivery of this Agreement by the Purchaser have been duly
authorized by all necessary action on the part of the Purchaser and its board of directors. The Purchaser has the absolute and
unrestricted right, power and authority to enter into and perform its obligations under the Transactional Agreements to which
it is or may become a Party, and the execution, delivery and performance of the Transactional Agreements by the Purchaser have
been duly authorized by all necessary action on the part of the Purchaser and its board of directors. This Agreement constitutes
the legal, valid and binding obligation of the Purchaser, enforceable against it in accordance with its terms. Upon the execution
and delivery of the Transactional Agreements at the Closing, the Transactional Agreements will constitute the legal, valid and
binding obligations of the Purchaser, enforceable against the Purchaser in accordance with their terms.


 


3.3       Non-Contravention.
Neither the execution and delivery by Purchaser of any of the Transactional Agreements nor the consummation or performance by
the Purchaser of the Transactions will directly or indirectly (with or without notice or lapse of time): (i) contravene, conflict
with or result in a violation of, the certificate of incorporation or by-laws of Purchaser; (ii) contravene, conflict with or
result in a violation of, or give any Governmental Body or other Person the right to challenge any of the Transactions or to exercise
any remedy or obtain any relief under, any Legal Requirement or any Order to which the Purchaser is subject; or (iii) contravene,
conflict with or result in a violation or breach of, or result in a default under, any provision of any material Contract to which
the Purchaser is a Party.


 


3.4       Brokers.
Purchaser shall be liable for brokerage fees and expenses due to their having retained in connection with the Transactions.
Purchaser shall indemnify and hold the Seller Parties harmless from and against any and all claims, demands, causes of
action, debts or liabilities arising out of or on account of a claim by any other broker, finder, investment banker or agent
that he, she or it is entitled to a commission or fees as a result of being retained or used by the Purchaser.


 




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3.5       Sufficiency
of Funds. Purchaser will have available at Closing immediately available funds sufficient to enable Purchaser to make payment
of the Purchase Price and consummate the Transactions.


 


3.6       Investigation
by Purchaser; Exclusivity of Representations. PURCHASER FURTHER ACKNOWLEDGES THAT PURCHASER HAS CONDUCTED AN INDEPENDENT INSPECTION
AND INVESTIGATION OF THE BUSINESS AND THE PURCHASED ASSETS AND THAT IN PROCEEDING WITH ITS ACQUISITION OF THE PURCHASED ASSETS,
EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN SECTION 2 OF THIS AGREEMENT, PURCHASER IS ACQUIRING THE PURCHASED
ASSETS BASED SOLELY UPON SUCH INDEPENDENT INSPECTIONS AND INVESTIGATIONS. ACCORDINGLY, PURCHASER ACKNOWLEDGES THAT THE TANGIBLE
PURCHASED ASSETS ARE BEING PURCHASED “AS IS, WHERE IS AND WITH ALL FAULTS”. PURCHASER AGREES THAT (i) SELLER PARTIES
MAKE NO EXPRESS WARRANTIES EXCEPT THE REPRESENTATIONS AND WARRANTIES IN SECTION 2 OF THIS AGREEMENT.


 


4.       Indemnification.


 


4.1       Survival
of Representations and Covenants. Subject to the limitations and other provisions of this Agreement, the representations and
warranties contained in Section 2 herein shall survive the Closing and shall remain in full force and effect until the date that
is twelve (12) months from the Closing Date, with the exception of the representations and warranties contained in Sections 2.1
and 2.17 herein, (the “Seller Fundamental Representations”), which shall survive the Closing and shall remain in full
force and effect for the statute of limitations, and the representation and warranties in Section 2.12 herein which shall survive
the Closing and remain in full force and effect until the date that is six (6) months from the applicable statute(s) of limitations.
The representations and warranties contained in Section 3 shall survive the Closing and shall remain in full force and effect
until the date that is twelve (12) months from the Closing Date, with the exception of the representations and warranties contained
in Section 3.1 and 3.2 herein, which shall survive the Closing and remain in full force and effect for the statute of limitations.
None of the covenants or other agreements contained in this Agreement shall survive the Closing Date other than those which by
their terms contemplate performance after the Closing Date, and each such surviving covenant and agreement shall survive the Closing
for the period contemplated by its terms. Notwithstanding the foregoing, any Claim Notice (as defined in Exhibit “G”)
delivered by the non-breaching Party to the breaching Party prior to the expiration date of the applicable survival period shall
not thereafter be barred by the expiration of such survival period and such claims shall survive until finally resolved.


 


4.2       Indemnification
by the Seller Parties.


 


(a)       The
Seller Parties shall hold harmless and indemnify each of the Purchaser Indemnitees from and against, and shall compensate and
reimburse each of the Purchaser Indemnitees for, any Damages that are proximately suffered or incurred by any of the Purchaser
Indemnitees (regardless of whether or not such Damages relate to any third-party claim) and that arise directly or indirectly
from or as a direct or indirect result of, or are directly or indirectly connected with:


 


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


 




    	 	19	 



    	 	 	 



    

 


(ii)       any
Breach of any of the Seller Fundamental Representations, as of the date such representation or warranty was made;


 


(iii)       any
Breach or non-fulfillment of any covenant, agreement or obligation to be performed by any of the Seller Parties pursuant to this
Agreement, the other Transactional Agreements or any certificate or instrument delivered by or on behalf of Seller Parties pursuant
to this Agreement;


 


(iv)       any
claim against the Purchaser or any other Purchaser Indemnitee involving an Excluded Asset, other than the Assumed Liabilities
and the Transitional Costs; or


 


(v)       the
proceedings relating to the case referred to as the North Carolina Class Action and customer disputes between the Seller Parties
and each of 3M, KSOSN, Scripps, and South Florida Foot and Ankle, together with all related claims and Proceedings (collectively,
the “Known Claims”); or


 


(vi)       any
claim or Proceeding accruing or existing on or prior to the Closing Date, other than the Transitional Costs, against the Purchaser
or any other Purchaser Indemnitee by any third party based upon, resulting from or arising out of the Business, operations, properties,
Purchased Assets, actions, inactions, acts, omissions, or obligations of any of the Seller Parties, their Representatives or Affiliates
conducted or existing on or prior to the Closing Date, other than the Transitional Costs.


 


(vii)       Any
claim or Proceeding against any of the Purchaser Indemnitees by any Person based upon, resulting from or arising out of the employment
of the Person by the Seller Parties, excluding any claims based on or arising out of or as a result of acts or omissions of the
Purchaser in connection with the Transaction.


 


(b)       Subject
to Section 4.2(d), the Seller Parties shall not be required to make any indemnification payment pursuant to Section 4,2(a) for
any complaint by a Client relating to Business Services performed prior to the Closing Date unless the Damages exceed $50,000
in which event the Purchaser Indemnitees shall be entitled to be indemnified against and compensated and reimbursed for the amount
of Damages in excess of $25,000.


 


(c)       Subject
to Section 4.2(d), without duplication of any Damages relating to a Client complaint referenced in Section 4.2(b), the Seller
Parties shall not be required to make any indemnification payment pursuant to Section 4.2(a) for any Breach as set forth in Section
4.2(a) until such time as the total amount of all Damages (including the Damages arising from such Breach and all other Damages
arising from any other Breaches of any representations or warranties) that have been directly or indirectly suffered or incurred
by any one or more of the Purchaser Indemnitees, or to which any one or more of the Purchaser Indemnitees has or have otherwise
become subject, exceeds $25,000. If the total amount of Damages exceeds $25,000, the Purchaser Indemnitees shall be entitled to
be indemnified against and compensated and reimbursed for the amount of Damages in excess of $25,000. This Section 4.2(c) shall
not be applicable to claims under Sections 4.2(a)(iii), 4.2(a)(iv), 4.2(a)(v) or 5.6 herein.


 




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(d)       Notwithstanding
the foregoing, or any other clause in this Agreement, the Seller Parties’ maximum liability under this Agreement for indemnification
will be the Purchase Price, except for claims relating to unpaid worker’s compensation premium, unpaid unemployment insurance
premium payments, pre-Closing accrued personnel costs, the Known Claims, and amounts due and owing to Governmental Bodies.


 


(e)       The
amount of any Damages for which indemnification is provided by Seller Parties shall be net of any amounts actually recovered by
the Purchaser Indemnitees under insurance policies, indemnification agreements with any third parties or other sources of reimbursement
in effect and applicable to such Damages (together, “Collateral Sources”). If the Purchaser Indemnitee receives an
amount from any Collateral Source subsequent to any indemnification provided by the Seller Parties, the Purchaser Indemnitee shall
promptly reimburse the Seller Party for any payment made or expense incurred by the Purchaser Indemnitee in connection with providing
such indemnification up to such amount received by the Purchaser Indemnitee. The Purchaser Indemnitees shall use their Best Efforts
to pursue and collect on any recovery available under any insurance policies.


 


(f)       Notwithstanding
anything in this Agreement to the contrary, no Purchaser Indemnitee shall be indemnified or reimbursed for any (i) exemplary or
punitive damages, lost profits or diminution in value damages or (ii) Damages that are not the probable and reasonably foreseeable
result of the relevant breach or nonfulfillment, suffered or incurred by a Purchaser Indemnitee.


 


(g)       Each
Purchaser Indemnitee claiming indemnification under this Section 4.2 shall take, and cause its Affiliates to take, all reasonable
steps to mitigate any claim for indemnification hereunder upon becoming aware of any event or circumstance that would be reasonably
expected to, or does, give rise thereto, including incurring costs only to the minimum extent necessary to remedy the breach that
gives rise to such claim for indemnification hereunder (which costs shall be subject to recovery as additional indemnified Damages
of the Purchaser Indemnitee.


 


4.3       Indemnification
by the Purchaser.


 


(a)       The
Purchaser shall hold harmless and indemnify each of the Seller Indemnitees from and against, and shall compensate and reimburse
the Seller Indemnitees for, any Damages that are proximately suffered or incurred by the Seller Indemnitees (regardless of whether
or not such Damages relate to any third-party claim) and that arise directly or indirectly from or as a direct or indirect result
of, or are directly or indirectly connected with:


 


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


 




    	 	21	 



    	 	 	 



    

 


(ii)       any
Breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Purchaser pursuant to this Agreement,
the other Transactional Agreements or any certificate or instrument delivered by or on behalf of the Purchaser pursuant to this
Agreement;


 


(iii)       any
claim or Proceeding accruing or arising on or after the Closing Date against any of the Seller Indemnitees by any Person based
upon, resulting from or arising out of the employment of the Retained Employees by the Purchaser, excluding any claims based on
or arising out of or as a result of acts or omissions of the Seller Parties in connection with the Transaction;


 


(iv)       any
claim or Proceeding against any of the Seller Indemnitees by any third-party based upon, resulting from or arising out of the
Business, operations, properties, Purchased Assets or obligations of Purchaser or any of its Affiliates conducted, or accruing
on or after the Closing Date; and


 


(v)       the
Assumed Liabilities or the Transitional Costs.


 


(b)       Subject
to Section 4.3(c), and except for the obligations specified in Section 4.3(a)(iii) and Section 4.3(a)(iv), the Purchaser shall
not be required to make any indemnification payment pursuant to Section 4.3(a) for any Breach of any of its representations and
warranties until such time as the total amount of all Damages (including the Damages arising from such Breach and all other Damages
arising from any other Breaches of its representations or warranties) that have been directly or indirectly suffered or incurred
by the Seller Indemnitees, or to which the Seller Indemnitees have otherwise become subject, exceeds $50,000 in the aggregate.
If the total amount of such Damages exceeds $25,000 in the aggregate, the Seller Indemnitees shall be entitled to be indemnified
against and compensated and reimbursed for the amount of such Damages in excess of $25,000.


 


(c)       Notwithstanding
the foregoing, or any other clause in this Agreement, the Purchaser’s maximum liability under this Agreement for indemnification
or otherwise will be an amount equal to the Purchase Price.


 


(d)       Each
Seller Indemnitee claiming indemnification under this Section 4.3 shall take, and cause its Affiliates to take, all reasonable
steps to mitigate any claim for indemnification hereunder upon becoming aware of any event or circumstance that would be reasonably
expected to, or does, give rise thereto, including incurring costs only to the minimum extent necessary to remedy the breach that
gives rise to such claim for indemnification hereunder (which costs shall be subject to recovery as additional indemnified Damages
of the Seller Indemnitee).


 




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(e)       The
amount of any Damages for which indemnification is provided by Purchaser shall be net of any amounts actually recovered by the
Seller Indemnitees under insurance policies, indemnification agreements with any third parties or other sources of reimbursement
in effect and applicable to such Damages (together, “Collateral Sources”). If the Seller Indemnitee receives an amount
from any Collateral Source subsequent to any indemnification provided by the Purchaser, the Seller Indemnitee shall promptly reimburse
the Purchaser for any payment made or expense incurred by the Seller Parties in connection with providing such indemnification
up to such amount received by the Seller Indemnitee. The Seller Indemnitees shall use their Best Efforts to pursue and collect
on any recovery available under any insurance policies.


 


4.4       Conditions
of Indemnification. The obligations and liabilities of the Purchaser and Seller Parties under Section 4.2 and 4.3, respectively,
shall be subject to the procedures set forth on Exhibit “G”.


 


4.5       Exclusive
Remedies. The Parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims (for any
breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject
matter of this Agreement), shall be pursuant to the indemnification provisions set forth in Section 4.2 and Section 4.3. In furtherance
of the foregoing, each Party hereby waives, to the fullest extent permitted under law, any and all rights, claims and causes of
action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating
to the subject matter of this Agreement it may have against the other parties hereto and their Affiliates and each of their respective
representatives arising under or based upon any law, except pursuant to the indemnification provisions set forth in Section 4.2
and Section 4.3. Nothing in this Section 4.5 shall limit any Person’s right to seek and obtain any equitable relief to which
any Person shall be entitled.


 


4.6       Adjustment
to Purchase Price. Unless otherwise required by Law, any payment by Purchaser or the Seller Parties under this Section 4 shall
be treated by the Parties as an adjustment to the Purchase Price.


 


5.       Certain
Post-Closing Covenants.


 


5.1       Further
Actions. From and after the Closing Date, the Seller Parties and Purchaser shall reasonably cooperate with the other Party
and the other Party’s Affiliates and Representatives, and shall execute and deliver such documents and take such other actions
as the Seller Parties or Purchaser, as applicable, may reasonably request, for the purpose of consummating the Transactions.


 


5.2       Confidentiality;
Publicity.


 


(a)       Seller
Parties acknowledge that Purchaser is subject to the reporting requirements of the Securities and Exchange Commission and its
preferred and common stock are quoted on NASDAQ. Seller Parties agree not to use any Confidential Information to purchase, sell,
make any short sale of, loan, grant any option for the purchase of, or otherwise transfer or dispose of Purchaser’s preferred
or common stock (or other securities, warrants, or other forms of convertible securities outstanding or rights to acquire such
securities). Seller Parties acknowledge that a purpose of this Agreement relating to confidentiality is so that Purchaser will
be in compliance with Regulation FD promulgated by the Securities and Exchange Commission. Subject to Section 5.12, Seller Parties
further acknowledges that Purchaser may be required to make certain public disclosures and filings with the Securities and Exchange
Commission that relate to the Transactions with or without advance notice to Seller Parties.


 




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5.3       Transition
Services. 


 


(a)       To
the extent such employees remain in the employ of Seller, for a period of up to and including ninety (90) days after the Closing
Date, Seller shall make available to Purchaser the Transition Services Employees to assist with the orderly transition of the
Business to Purchaser. Purchaser shall reimburse Seller within ten (10) days after receipt of an invoice from Seller for a pro-rata
share (based on time spent working on matters relating to the transition of the Business as compared to time spent working on
other matters) of Seller’s reasonable and documented out-of-pocket costs associated with the provision of the Transition
Services Employees including, without limitation, all salary and wages, accrued sick days and vacation, employer taxes and health,
dental, life insurance and other benefits, and specifically excluding bonuses, severance and other payments not made on a regular
bi-weekly basis. Seller shall provide such transitional services to Purchaser in a manner consistent in all material respects
with the manner in which such services were provided to the Business while it was operated by Seller. Seller makes no warranties,
express or implied, with respect to the transitional services to be provided by the Transition Services Employees to Purchaser
hereunder. At the end of each bi-weekly pay period, the Seller Parties shall evaluate the time spent by the Transition Services
Employees on transition services and other services for the Seller Parties and, if they are not fully engaged in such services,
may in their reasonable good faith discretion terminate the employment of the Transition Services Employees and cease providing
their transition services; provided that prior to such termination the Seller Parties shall consult with the Purchaser regarding
the termination and if Purchaser agrees in writing to reimburse the Seller Parties for all the Seller Parties’ out-of-pockets
costs of continuing to hire any of the Transition Services Employees who the Seller Parties intend to terminate, the Seller Parties
will continue to employ such Transition Services Employee and provide the transition services contemplated by this Section 5.3(a)
for the period that the Purchaser has agreed to reimburse the Seller Parties for (which shall not extend beyond ninety (90) days
after the Closing Date).


 


(i)       Purchaser
may, at its sole discretion, elect to offer employment to any, all, or none of the Transition Services Employees during the ninety
(90) post-closing transition period. Seller Parties shall be solely responsible for any and all severance payments to any Transition
Services Employee not offered employment by the Purchaser.


 


(b)       For
a period of up to and including ninety (90) days after the Closing Date, Seller Parties shall employ their reasonable efforts
to assist Purchaser, at Purchaser’s sole expense, to assist Purchaser to transition the operations of the Business to Purchaser.
The transition services will be limited to the following: human capital, financial records, computer hardware and software, migration
of all Business Records that has not yet been transferred, utilization of submitter identifications in use at the Closing Date,
Purchaser’s use of vendor equipment not included in Exhibit “K” at Purchaser’s sole cost and expense as
is necessary to continue the Business, and a coordinated plan for appropriately handling client communications that come to Seller
Parties. In connection with such transition services, Seller Parties shall not be required to interact with Clients or continue
to employ any personnel except the Transition Services Employees in accordance with Section 5.3(a). Purchaser shall reimburse
Seller within ten (10) days after receipt of an invoice from Seller for such services. Seller Parties make no warranties, express
or implied, with respect to the transitional services to be provided by the Seller Parties to Purchaser hereunder.


 




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(c)       On
the Closing Date, Purchaser shall offer employment to at least eighty-percent (80%) of the In-Scope Employees engaged in the Business
at the Closing Date (the “Retained Employees”). The selection of the Retained Employees shall be mutually agreeable
to Purchaser and Seller. Each Retained Employee shall be offered employment with Purchaser at a salary equivalent to the salary
paid to that employee by Seller at the time of Closing, and will be entitled to benefits consistent with the benefits provided
to employees of Purchaser in similar positions at the time of Closing. With respect to any employee benefit plan maintained by
Purchaser for the benefit of the Retained Employees who accept employment with the Purchaser, Purchaser shall recognize all service
of such Retained Employees with Seller, as if such service were with Purchaser, for vesting, eligibility and accrual purposes
consistent with the provisions of such benefit plans.


 


(i)       Seller
Parties shall make any and all severance payments to Seller’s In-Scope Employees engaged in the Business at the time of
the Closing who are not offered employment by Purchaser. The amount of severance per employee shall not exceed the lesser of one
(1) week’s compensation per full year of service, or four (4) weeks’ compensation. Purchaser shall reimburse Seller
Parties in an amount equal to fifty-percent (50%) of the severance payments made by Seller to each In-Scope Employee not offered
employment by Purchaser, subject to each In-Scope Employee’s execution of a mutually agreed upon severance agreement and
release.


 


5.4       Accounts
Receivable. Seller Parties shall retain all accounts receivable invoiced prior to the Closing Date (the “Retained Receivables”).
At Closing, Seller Parties will deliver to Purchaser a schedule of all Retained Receivables. During the 180-day period following
the Closing Date, the Purchaser will diligently attempt to collect for the benefit of Seller Parties the Retained Receivables.
Purchaser will not discount any of the Retained Receivables without the consent of Seller Parties, which shall not be unreasonably
withheld. The Purchaser shall hold and pay to Seller Parties any and all proceeds of Retained Receivables received by Purchaser
within ten (10) calendar days of receipt. The Purchaser acknowledges that all of the Retained Receivables remain the property
of Seller Parties and Purchaser shall not acquire any beneficial right or interest therein. In the event Purchaser receives payment
from a Client who has more than one invoice outstanding at the time of payment, the payment shall be applied to the invoice which
such payment shall be reasonably inferred to apply to and, in the event that no such reasonable inference can be made, the payment
shall be applied to the oldest outstanding invoice. Seller Parties may continue to collect any unpaid Retained Receivables after
the end of such 180-day period. Seller Parties represent that the Retained Receivables reflect amounts that were invoiced by Seller
in the Ordinary Course of Business and remain due and owing. After the Closing Date, Seller Parties shall promptly forward to
Purchaser any Client payments that result from services invoiced by the Purchaser after the Closing Date.


 




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5.5       Assignment
of Leases. If the consent of the landlord to the assignment of any Lease intended to be assigned to Purchaser hereunder is
not obtained prior to the Closing, the Seller Parties shall use their Best Efforts to cooperate to obtain the necessary consent
to assign such Lease and in the interim, shall use Best Efforts to provide Purchaser with the economic and non-economic benefits
of such Lease, including, without limitation, enforcing any rights under such Lease or permitting Purchaser to enforce any rights
as if such Lease had been assigned or transferred to Purchaser. Purchaser shall reimburse Seller Parties promptly upon receipt
of an invoice for all of the Seller Parties’ out-of-pocket expenses incurred in connection with such Lease until assigned
to the Purchaser.


 


5.6       Vendor
Payments. The Seller Parties shall remain fully and finally responsible for any and all payments to any and all vendors for services
provided on or before the Closing Date.


 


5.7       Non-Solicitation.


 


(a)       For
a period from the Closing until the third (3rd) anniversary of the Closing Date, Seller Parties shall not directly
or indirectly, own, manage, operate, control or participate in the ownership, management, operation or control of any business,
whether in corporate, proprietorship or partnership form or otherwise, engaged in the Business (a “Restricted Business”).


 


(b)       For
a period from the Closing to the third (3rd) anniversary of the Closing Date, Seller Parties shall not: (i) cause, solicit, induce
or encourage any Current Employee(s) of any Seller Parties who are or become employees of Purchaser or any Affiliate of Purchaser
to leave such employment or (ii) cause, induce or encourage any material actual client, customer, supplier, or licensor of the
Business (including any Closing Date Clients and Former Clients and any Person that becomes a client or customer of the Business
after the Closing) or any other Person who has a material business relationship with the Business, to terminate or modify in any
material adverse respect any such actual relationship with the Purchaser.


 


(c)       Seller
Parties acknowledges that the restrictive period contained in Section 5.6(a) and (b) is reasonable under the circumstances. Moreover,
it is the desire and intent of the parties that the provisions of Section 5.6(a) and (b) be enforceable to the fullest extent
permissible under the legal requirements and public policies applied in each jurisdiction in which enforcement is sought. Seller
Parties specifically agrees that, in the event of a breach or threatened breach of Section 5.6(a) and (b), the Purchaser would
suffer irreparable injury and damages at law would be an insufficient remedy, and the Purchaser shall be entitled to seek equitable
relief by way of temporary or permanent injunction (or any other equitable remedies), without proof of actual damages and without
the need to post bond or other security.


 


(d)       Notwithstanding
anything in this Section 5.7 to the contrary, the Seller Parties shall not be restricted from providing any Business Services
to its Affiliates, affiliated hospitals and other Persons that have clinical or strategic affiliations with


 


5.8       Change
of Name.


 


Immediately
after the Closing, the Seller shall change its name to a name that is reasonably satisfactory to Purchaser and Seller Parties;
provided that the Seller shall be allowed to use such name in connection with collection of the Retained Receivables.


 




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5.9       Transfer
Taxes. The Seller Parties shall duly and timely file all Tax Returns relating to Transfer Taxes and all Transfer Taxes shall
be borne equally between Seller Parties and Purchaser, and timely paid by Seller Parties. The Seller shall provide the Purchaser
with a copy of each Tax Return relating to a Transfer Tax promptly after filing, together with proof of payment of any Transfer
Tax shown thereon to be due.


 


5.10       Bulk
Sales Laws. The Seller Parties and the Purchaser each hereby waive compliance with any bulk sales laws that may be applicable
in connection with the Transactions.


 


5.11       Financial
Statements.


 


(a)       Not
later than April 1, 2019, Seller Parties shall engage Wojeski & Company (the “Accounting Firm”) to conduct an
audit (“Audit”) of the separate balance sheets of the Seller and Seller Subsidiaries as of December 31, 2017 and 2018
and related separate statements of income and cash flows for the years then ended (the “Annual Financial Statements”)
and a review (“Review”) of the separate balance sheet of Seller and Seller Subsidiaries as of March 31, 2019 and the
related separate statements of income and cash flows for the quarter then ended (the “2019 Quarterly Financial Statements”).
Seller Parties will provide full cooperation and access to work papers and support materials as requested by the Accounting Firm
in connection with the work required to complete the Audit and Review, which is to be completed on or before May 31, 2019. The
Purchaser shall bear all of the fees and expenses of the Accounting Firm in connection with the Audit and Review. At the conclusion
of the Audit, and Review Seller Parties will execute a management representation letter reasonably acceptable to the Accounting
Firm and such other documents and representations reasonably requested by the Purchaser, accountants and legal advisors in furtherance
of timely complying with Purchaser’s SEC requirements. The Seller Parties will use their Best Efforts so that the Financial
Statements are prepared in accordance with GAAP applied on a consistent basis throughout the periods covered and present fairly
in all material respects the financial position of the Seller Parties as of the respective dates thereof and the results of operations
and cash flows of the Seller for the periods covered thereby. The Seller Parties will not bear any Liability to the Purchaser
if the Annual Financial Statements and 2019 Quarterly Financial Statements cannot be completed in a timely manner through no fault
of the Seller Parties.


 


(b)       Upon
execution of this Agreement, Seller Parties shall provide Purchaser the unaudited statements of operations of the Seller Parties
for the years ended December 31, 2017 and December 31, 2018. Except as set forth on Part 5.11(a) of the Disclosure Schedule, Seller
Parties represent that these statements of operations are fairly presented in all material respects.


 


5.12       Business
Records. Purchaser shall maintain the Business Records in compliance with all applicable Legal Requirements. After Closing,
Seller Parties shall have full access, upon reasonable advance notice to Purchaser, to the Business Records, as is reasonably
necessary and subject to all applicable Legal Requirements. Prior to the destruction of any Business Records delivered to Purchaser,
Purchaser shall notify Seller Parties of such proposed destruction and shall offer Seller Parties the option, exercisable within
30 days after Seller’s receipt of such notice, to retake possession and ownership of any such Business Records.


 




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5.13       Public
Announcement. Each Party shall (a) consult with each other Party before issuing any press release or otherwise making any
written public statement with respect to the Transactions, (b) provide to the other Parties for review a copy of any such press
release or written public statement and (c) not issue any such press release or make any such written public statement prior to
such consultation and review and the receipt of the prior consent of the other Parties, which consent is not to be unreasonably
withheld; provided, however, that in the case of each of clauses (a) through (c), if such Party is required by Legal Requirements
applicable to such Party or its Affiliates including regulations of any stock exchange applicable to such Party or its Affiliates,
the Party required to issue the press release or make written the public statement shall, prior to issuing such press release
or making such written public statement, use its Best Efforts to allow the other Parties reasonable time to comment on such release
or written statement to the extent practicable. Notwithstanding anything in this Agreement to the contrary, the Purchaser shall
not make any reference to or otherwise use the Name in any press release or other public statement.


 


6.       Termination.


 


6.1       Termination
Events. This Agreement may be terminated prior to the Closing Date:


 


(a)       by
mutual consent of the Purchaser and Seller Parties;


 


(b)       by
either Purchaser or any Seller Parties if:


 


(i)       the
Transactions contemplated by this Agreement have not been consummated on or before April 30, 2019 (the “End Date”);
provided that the right to terminate this Agreement pursuant to this Section 6.1(b)(i) shall not be available to any Party whose
failure to fulfill in any material respect any of its obligations under this Agreement has been the primary cause of, or the primary
factor that resulted in the failure of the Transactions contemplated by this Agreement to be consummated by such time; or


 


(ii)       there
shall be any applicable Legal Requirement that (a) makes the consummation of this Transaction and other Transaction contemplated
by this Agreement illegal or otherwise prohibited; or (b) enjoins a Party from consummating the acquisition and the other Transactions
contemplated by this Agreement and such enjoinment shall have become final and non-appealable.


 


(c)       by
any Seller Parties, if:


 


(i)       there
has been a material breach by the Purchaser of any representation, warranty, covenant or agreement contained in this Agreement
that has prevented or would prevent the satisfaction of any condition to the obligations of Seller Parties at the Closing, and
such breach has not been waived by Seller Parties in writing or, to the extent curable, cured by the Purchaser within ten (10)
business days after receipt by the Purchaser of written notice thereof from Seller; and


 


(ii)       No
Seller Party is in breach of any representation, warranty, covenant or agreement contained in this Agreement.


 




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(d)       by
Purchaser, if:


 


(i)       Purchaser
shall have served notice on the Seller Parties of a Diligence Termination; or


 


(ii)       there
has been a material breach by any Seller Parties of any representation, warranty, covenant or agreement contained in this Agreement
that has prevented or would prevent the satisfaction of any condition to the obligations of the Purchaser at the Closing and such
breach has not been waived by the Purchaser or, to the extent curable, cured by the respective Seller Parties within ten (10)
business days after receipt by Seller Parties of written notice thereof by the Purchaser, provided Purchaser is not in breach
of any representation, warranty, covenant or agreement contained in this Agreement.


 


6.2       Notice.
The Party desiring to terminate this Agreement pursuant to Section 6.1 shall give written notice to the other Party.


 


6.3       Effects
of Termination. In the event of termination pursuant to Section 6.1, this Agreement shall become void and of no effect without
further obligation or liability of any Party (or any subsidiaries, directors, officers, employees, agents or representatives of
any Party) to the other Parties hereto (except for obligations of confidentiality and non-use with respect to the other Party’s
Confidential Information pursuant to the Mutual Nondisclosure Agreement, which is incorporated herein by reference) and no Party
shall be entitled to any monetary damages or injunctive relief (including specific performance) as a result of such termination,
or any indemnification under ‎Section 4; provided, that no such termination shall relieve any Party from any liability or
losses resulting from a knowing and/or intentional breach of any of its representations, warranties, covenants or agreements set
forth in this Agreement or any other Transaction document prior to the date of termination. Notwithstanding anything to the contrary
contained herein, the obligations in the Mutual Nondisclosure Agreement and Sections 5.2 (Confidentiality), 6.3 (Effects of Termination),
6.4 (Fees and Expenses) and 7 (Miscellaneous) hereof shall remain in full force and effect.


 


6.4       Fees
and Expenses. Except as otherwise specifically provided in the Agreement, all fees and expenses incurred in connection with
this Agreement, the Transactions and the other transactions contemplated hereby shall be paid by the Party incurring such fees
or expenses, whether or not the Transactions are consummated.


 


7.       Miscellaneous
Provisions.


 


7.1       Further
Assurances. Each Party hereto shall execute and/or cause to be delivered to each other Party hereto such instruments and other
documents, and shall take such other actions, as such other Party may reasonably request (prior to, at or after the Closing) for
the purpose of carrying out or evidencing any of the Transactions.


 


7.2       Sole
Representations and Warranties. The Parties make no representations or warranties of any kind or nature, express or implied,
at law or in equity, except as expressly set forth in this Agreement or in any certificate executed and delivered pursuant to
this Agreement. Each Party hereby expressly negates and disclaims, and will not be liable for, any and all representations or
warranties which may have been made or alleged to have been made in any other document or instrument or in any statement or information
made or communicated to any other Party in any manner that is not expressly set forth in this Agreement or any a certificate executed
and delivered pursuant to this Agreement.


 




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7.3       Notices.
Any notice or other communication required or permitted to be delivered to any Party under this Agreement shall be in writing
and shall be deemed properly delivered, given and received when delivered (by hand, by registered mail, by courier or express
delivery service or by electronic mail) to the address set forth beneath the name of such Party below (or to such other address
as such Party shall have specified in a written notice given to the other parties hereto):


 


if
to any Seller Party:


 


Formativ
Health Management, Inc.

Attn: Chief Executive Officer

130 East 59th Street

15th Floor

New York, NY 10022

Email:


 


With
a copy to:


 


if
to the Purchaser:


 


MTBC-Med,
Inc.

7 Clyde Road

Somerset, NJ 08873

Attn: Shruti Patel, General Counsel

Facsimile: 732-227-8575

Email: spatel@MTBC.com


 


7.4       Headings.
The underlined headings contained in this Agreement are for convenience of reference only, shall not be deemed to be a part of
this Agreement and shall not be referred to in connection with the construction or interpretation of this Agreement.


 


7.5       Counterparts.
This Agreement may be executed in several counterparts, each of which shall constitute an original and all of which, when taken
together, shall constitute one agreement. Exchange of a signed emailed copy of the Agreement shall be deemed sufficient for the
purposes of binding the parties to its constituents.


 




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7.6       Unattached
Exhibits. The Parties acknowledge that certain Exhibits and Schedules to this Agreement to be prepared by Seller Parties or
Purchaser have not been prepared or are incomplete at the time of execution of this Agreement. Seller Parties and Purchaser shall
proceed with diligence and in good faith to prepare said exhibits and schedules and shall present same to the other Party for
its review and approval. All Exhibits and Schedules so approved shall be initialed and dated by each Party and attached to this
Agreement prior to the Closing


 


7.7       Specific
Performance. The Parties agree that: (a) in the event of any Breach or threatened Breach by any Party of any covenant, obligation
or other provision set forth in this Agreement, the other Party shall be entitled to (i) a decree or order of specific performance
or mandamus to enforce the observance and performance of such covenant, obligation or other provision, and (ii) an injunction
restraining such Breach or threatened Breach; and (b) neither the non-breaching Party nor any other Indemnitee shall be required
to provide any bond or other security in connection with any such decree, order or injunction or in connection with any related
action or Proceeding.


 


7.8       Waiver.


 


(a)       No
failure on the part of any Person to exercise any power, right, privilege or remedy under this Agreement, and no delay on the
part of any Person in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such
power, right, privilege or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude
any other or further exercise thereof or of any other power, right, privilege or remedy.


 


(b)       No
Person shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy under
this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument
duly executed and delivered on behalf of such Person; and any such waiver shall not be applicable or have any effect except in
the specific instance in which it is given.


 


7.9       Amendments.
This Agreement may not be amended, modified, altered or supplemented other than by means of a written instrument duly executed
and delivered on behalf of the Purchaser and the Seller Parties.


 


7.10       Severability.
Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction. If the final judgment of a court of competent jurisdiction
declares that any term or provision hereof is invalid or unenforceable, the parties hereto agree that the court making such determination
shall have the power to limit the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable
term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of
the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified. In the event such court
does not exercise the power granted to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable
term or provision with a valid and enforceable term or provision that will achieve, to the extent possible, the economic, business
and other purposes of such invalid or unenforceable term.


 




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7.11       Entire
Agreement. The Transactional Agreements set forth the entire understanding of the parties relating to the subject matter thereof
and supersede all prior agreements and understandings among or between any of the Parties relating to the subject matter thereof.


 


7.12       Construction.


 


(a)       For
purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice versa; the masculine
gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and
the neuter gender shall include the masculine and feminine genders.


 


(b)       The
Parties hereto agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party
shall not be applied in the construction or interpretation of this Agreement.


 


(c)       As
used in this Agreement, the words “include” and “including,” and variations thereof, shall not be deemed
to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.”


 


(d)       Except
as otherwise indicated, all references in this Agreement to “Sections” and “Exhibits” are intended to
refer to Sections of this Agreement and Exhibits to this Agreement.


 


(e)       Unless
otherwise specified, any reference to any agreement (including this Agreement), instrument, or other document includes all schedules,
exhibits, or other attachments referred to therein, and any reference to a statute or other law includes any rule, regulation,
ordinance, or the like promulgated thereunder, in each case, as amended, from time to time.


 


(f)       The
word “amend” means amend, modify, supplement, or restate, and “amendment” has a correlative meaning; “any”
means any one, more than one, or all; “or” means “and/or;” and, unless otherwise specified, any financial
or accounting term has the meaning of the term under GAAP.


 


7.13       Choice
of Law and Venue. This Agreement shall be interpreted, construed and enforced in all respects in accordance with the laws
of the State of New York, with the exception of its conflict of laws rules. Any action to enforce the provisions of this Agreement
or arising under or by reason of this Agreement shall be brought exclusively in the courts of the State of New York.


 


7.14       Waiver
of Jury Trial. ALL PARTIES HERETO EACH HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS.


 




    	 	32	 



    	 	 	 



    

 


7.15       No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the Parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.


 


7.16       Non-Recourse.
This Agreement may only be enforced against, and any claim, action, suit or other legal proceeding based upon, arising out of,
or related to this Agreement, or the negotiation, execution or performance of this Agreement, may only be brought against the
entities that are expressly named as parties hereto and then only with respect to the specific obligations set forth herein with
respect to such Party. No past, present or future director, officer, employee, incorporator, manager, member, partner, stockholder,
Affiliate, agent, attorney or other Representative of any Party hereto or of any Affiliate of any party hereto, or any of their
successors or permitted assigns, shall have any liability for any obligations or liabilities of any party hereto under this Agreement
or for any claim, action, suit or other legal proceeding based on, in respect of or by reason of the transactions contemplated
hereby


 


IN
WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be duly executed and delivered in its name and on its
behalf, all as of the day and year first above written.


 





	 	ETRANSMEDIA TECHNOLOGY, INC.
	 	a New York corporation
	 	 	 
	 	By:	/s/
    Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	FORMATIV HEALTH MANAGEMENT, INC.
	 	a Delaware corporation
	 	 	 
	 	By:	/s/
    Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	ASSOCIATED BILLING SERVICES, LLC.
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/
    Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel




 




    	 	33	 



    	 	 	 



    

 





	 	DOCTORSXL HOLDINGS, LLC.
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	HARRT ASSOCIATES, LLC.
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	MEDI BILLING SOLUTION SERVICES, LLC.
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	MEDI-CLAIM SERVICES, LLC.
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	MEDIGISTICS, LLC.
	 	a Florida limited liability company
	 	 	 
	 	By:	/s/ Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel







 




    	 	34	 



    	 	 	 



    

 





	 	ARCHIIVUS, LLC.
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/
    Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	DOCTORSXL, LLC.
	 	a Nevada limited liability
    company
	 	 	 
	 	By:	/s/
    Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	ASSOCIATED BILLING SERVICES, INC.
	 	an Arizona corporation
	 	 	 
	 	By:	/s/
    Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	MEDI BILLING SOLUTION SERVICES,
    INC.
	 	a Delaware corporation
	 	 	 
	 	By:	/s/
    Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	MEDI-CLAIM SERVICES, INC.
	 	a Delaware corporation
	 	 	 
	 	By:	/s/
    Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	MEDIGISTICS, INC.
	 	a Ohio corporation
	 	 	 
	 	By:	/s/
    Laurence Kraemer
	 	Name:	Laurence Kraemer
	 	Title:	General Counsel
	 	 	 
	 	MTBC-MED, INC.,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/
    Shruti Patel
	 	Name:	Shruti Patel
	 	Title:	General Counsel







 






    	 	35