ASSET
PURCHASE AGREEMENT


 


THIS
ASSET PURCHASE AGREEMENT (this “Agreement”) is made as of February 22, 2019 by and between COMPLETE
CUTTING & WELDING SUPPLIES, INC., a California corporation (the “Seller”), and TARONIS TECHNOLOGIES,
INC., a Delaware corporation, its successors and assigns, including its Buyer Designee (defined herein) “Buyer”)
(Buyer and Seller, together, the “Parties”).


 


R
E C I T A L S


 


WHEREAS,
Seller, among other things, is engaged in the business of owning and operating a welding and gas supply business with multiple
locations in the greater Los Angeles, California market (referred to herein as “Seller Business”);


 


WHEREAS,
the Seller Business is comprised of certain tangible and intangible assets and liabilities of Seller;


 


WHEREAS,
Seller desires to sell, transfer and assign to Buyer or a Buyer Designee (as hereinafter defined), and Buyer or a Buyer Designee
desires to purchase and assume from Seller, the Purchased Assets (as hereinafter defined), and Buyer or a Buyer Designee is willing
to assume, the Assumed Liabilities (as hereinafter defined), in each case as more fully described and upon the terms and subject
to the conditions set forth herein; and


 


WHEREAS,
Seller and Buyer or a Buyer Designee desire to each enter into an Assignment and Bill of Sale and Assumption Agreement and such
other ancillary transaction documents as are deemed necessary by the parties (each as hereinafter defined, and collectively, the
“Collateral Agreements”).


 


NOW,
THEREFORE, in consideration of the mutual agreements and covenants herein contained and intending to be legally bound hereby,
the parties hereto hereby agree as follows:


 


1.
Definitions.


 


1.1.
Defined Terms. For the purposes of this Agreement the following words and phrases shall have the following meanings:


 


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


 


“Assigned
Intellectual Property” means all of the Intellectual Property and Information owned by Seller or its Affiliates that
is used or held for use primarily in the operation or conduct of the Seller Business and is being assigned to Buyer pursuant to
this Agreement.


 


“Assignment
and Bill of Sale and Assumption Agreement” means each agreement in substantially the form set forth in Exhibit A.


 


“Assumed
Leases” means the Lease(s) identified on Schedule 3.7(a) to be assumed by Buyer or a Buyer Designee pursuant
to the “form of” Assignment, Assumption and Amendment to Lease Agreement set forth on Exhibit B and as designated
on Schedule 3.7(a).


 


“Benefit
Plan” means each Pension Plan, Welfare Plan and employment, compensation, bonus, pension, profit sharing, deferred compensation,
incentive compensation, stock ownership, stock option, stock appreciation right, stock purchase, phantom stock or other equity
compensation, performance, retirement, thrift, savings, stock bonus, excess benefit, supplemental unemployment, paid time off,
perquisite, tuition reimbursement, outplacement, fringe benefit, vacation, sabbatical, sick leave, severance, or retention, termination,
change in control, redundancy policy, workers’ compensation, retirement, cafeteria, disability, death benefit, hospitalization,
medical, dental, life insurance, accident benefit, welfare benefit or other plan, program, agreement or arrangement, in each case
maintained or contributed to, or required to be maintained or contributed to, by Seller or its Subsidiaries or any ERISA Affiliate,
in each case for the benefit of any Business Employee.


 




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“Business
Day” means a day that is not (i) a Saturday, a Sunday or a statutory or civic holiday in the State of New York, (ii)
a day on which banking institutions are required by Law to be closed in the State of New York, or (iii) a day on which the principal
offices of Seller or Buyer are closed or become closed prior to 2:00 p.m. local time.


 


“Business
Employees” means the employees of Seller who are principally engaged in performing services for the Seller Business.


 


“Business
Records” means all books, records, ledgers, tangible data, disks, tapes, other media-storing data and files or other
similar information whether in hardcopy or computer format and whether stored in network facilities or otherwise, in each case
to the extent used or held for use primarily in the operation or conduct of the Seller Business, including any advertising, promotional
and media materials, training materials, trade show materials and videos, engineering information, manuals and data, including
databases for reference designs, safety data sheets, product datasheets, sales and purchase correspondence, including price lists,
lists of present and former customers, information concerning customer contacts, purchasing history and invoices, technical characteristics
and other information reasonably required for ongoing customer relationships, lists of present and former suppliers or vendors,
mailing lists, warranty information, catalogs, sales promotion literature, advertising materials, brochures, bids, records of
operation, accounting and financial records, personnel and employment records, standard forms of documents, manuals of operations
or business procedures, designs, research materials and product testing reports, and any information relating to any Tax imposed
on any Purchased Assets or with respect to the Seller Business, but excluding portions of such items to the extent (i) they are
included in, or primarily related to, any Excluded Assets or Excluded Liabilities, or (ii) any applicable Law prohibits the transfer
of such information.


 


“Buyer
Designee” means MagneGas Welding Supply - Complete LA, LLC, a California limited liability company and wholly owned
subsidiary of Buyer.


 


“CERCLA”
means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§ 9601 et seq.
as amended.


 


“Closing”
means the closing of the transactions described in Article 7.


 


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


 


“Contracts”
means all Third-Party contracts, agreements, leases and subleases, supply contracts, commitments, purchase orders, sales orders,
binding offers and instruments, or other written or oral arrangements, used or held for use primarily in the operation or conduct
of the Seller Business, to which Seller is a party, including the contracts identified as to be assigned on Schedule 2.1(a)
and including any such contracts, agreements, leases and subleases, supply contracts, commitments, purchase orders, sales
orders and instruments (i) for the lease of machinery, equipment, motor vehicles, furniture or office equipment, (ii) for the
provision of goods or services to the Seller Business, (iii) for the sale of goods or performance of services by the Seller Business,
(iv) for the sale and distribution of the Seller Products, and (v) any such contracts, agreements, leases and subleases, supply
contracts, commitments, purchase orders, sales orders and instruments referred to in clauses (i) - (iv), inclusive, entered into
between the date hereof and the Closing Date by Seller to the extent such Contracts entered into after the date hereof are entered
into in the ordinary course of business consistent with past practice and outstanding as of the Closing Date, but not the Excluded
Contracts.


 


“Copyrights”
means rights in works of authorship, including without limitation copyrights, whether registered or unregistered and whether arising
under the laws of the United States or any other jurisdiction anywhere in the world, including moral rights, and all registrations
and applications for registration with respect thereto.


 


“Encumbrance”
means any lien, encumbrance, claim, charge, security interest, mortgage, pledge, easement, encroachment, building or use restriction,
capital lease, conditional sale or other title retention agreement, covenant or other similar restriction, adverse claims of ownership
or use, or other similar restriction or Third Party right affecting the Purchased Assets, but shall not include Permitted Encumbrances.


 




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“Environmental
Law” means any Law that governs the existence of or provides a remedy for release of Hazardous Substances, the protection
of persons, natural resources or the environment, the management of Hazardous Substances, or other activities involving Hazardous
Substances including under CERCLA, the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq., the Resource Conservation
and Recovery Act, 42 U.S.C. § 6901 et seq., the Clean Water Act, 33 U.S.C. Section § 1251 et seq., the Clean Air Act,
42 U.S.C. § 7401 et seq., the Toxic Substance Control Act, 15 U.S.C. § 2601 et seq., the Oil Pollution Act of 1990,
33 U.S.C. § 2701 et seq., and the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq., or any other similar
Law, as any such Law has been amended or supplemented, and the regulations promulgated pursuant thereto.


 


“Environmental
Liability” means any liability arising in connection with or in any way relating to Seller, any property now or previously
owned, leased or operated by such Seller (or any predecessor thereof), the Seller Business, or the Purchased Assets which (i)
arise under or relate to any Environmental Law and (ii) relate to actions occurring or conditions existing on or before the Closing
Date.


 


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


 


“ERISA
Affiliate” means any other Person that, together with Seller (or at the relevant time was) treated as a single employer
under Section 414(b), (c), (m) or (o) of the Code and the regulations thereunder.


 


“Excluded
Contracts” means those Contracts (i) identified in Schedule 2.2(d), (ii) under which performance by Seller
or an Affiliate of Seller has been completed and for which there is no remaining warranty, maintenance, or support obligation
and under which performance by the counterparty has been completed and for which there is no remaining payment obligation of such
party, (iii) that constitute a General Purchase Agreement, or (iv) primarily related to Excluded Assets or Excluded Liabilities.


 


“Excluded
Taxes” means any liability, obligation or commitment, whether or not accrued, assessed or currently due and payable,
with respect to (i) any Taxes of Seller or its Affiliates (including any liability of Seller or its Affiliates for the Taxes of
any other Person (other than Buyer or its Affiliates) under Treasury Regulation Section 1.1502-6 (or any similar provision of
state, local or foreign law)), as a transferee or successor, by contract or otherwise, (ii) any Taxes relating to, pertaining
to, or arising out of, the Seller Business or the Purchased Assets for any Pre-Closing Tax Period, including all interest, penalties
or other amounts with respect thereto accruing in Post-Closing Tax Periods, and (iii) any Taxes required by Law to be paid by
Seller (or withheld from Seller by Buyer or a Buyer Designee) as a result of their sale of Purchased Assets in any jurisdiction
(including any mandatory withholding Taxes) other than (x) any Transfer Taxes to be paid by Buyer or a Buyer Designee under Section
2.10(b) and (y) any Taxes to the extent deducted an withheld by Buyer or a Buyer Designee at Closing pursuant to Section 2.10(a).


 


“Fixtures
and Supplies” means all fixtures, improvements, furniture, furnishings, office and other supplies, vehicles, and other
tangible personal property owned by Seller and used or held for use primarily in the operation or conduct of the Seller Business
that are located on the Premises, including desks, tables, chairs, file cabinets, racks, cubicles and other storage devices and
office supplies and any additions, improvements, replacements and alterations thereto between the date hereof and the Closing
Date and all warranties and guarantees, if any, express or implied with respect to the foregoing, but excluding any such items
primarily related to Excluded Assets or Excluded Liabilities.


 


“GAAP”
means U.S. Generally Accepted Accounting Principles.


 


“General
Purchase Agreements” means Third-Party supply contracts or other agreements between Seller or an Affiliate of Seller
and a Third Party pursuant to which Seller or an Affiliate purchases products or services from such Third-Party for any of Seller’s
or an Affiliate’s businesses and not used or held for use primarily in the operation or conduct of the Seller Business.


 


“Governmental
Body” means any legislative, executive or judicial unit of any governmental entity (supranational, national, federal,
provincial, state or local) or any department, commission, board, agency, bureau, official or other regulatory, administrative
or judicial authority thereof.


 


“Governmental
Permits” means all governmental permits and licenses, certificates of inspection, approvals or other authorizations
issued to Seller with respect to the Seller Business or the Leased Premises and necessary for the operation of the Seller Business
as currently conducted under applicable Laws, including those identified on Schedule 2.1(k).


 




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“Hazardous
Substance” means (i) any hazardous, toxic or dangerous waste, substance or material defined as such pursuant to any
Environmental Law, (ii) asbestos or PCBs and (iii) any other chemical, material or substance, exposure to which is prohibited,
limited or regulated by any Governmental Body pursuant to any Environmental Law.


 


“Information”
means any and all documented and undocumented information, including any technical information, Trade Secrets and other confidential
information, data and drawings of whatever kind in whatever medium, specifications, techniques, know-how, network configurations
and architectures, APIs, subroutines, techniques, user interfaces, URLs works of authorship, algorithms, formulae, protocols,
schematics, compositions, processes, designs, bills of material, sketches, photographs, graphs, drawings, samples, non-patented
inventions, discoveries, developments and ideas, build instructions, Software code (in any form, including source code and executable
or object code), build scripts, test scripts, databases and data collections, past and current manufacturing and distribution
methods and processes, tooling requirements, current and anticipated customer requirements, price lists, part lists, customer
lists, market studies, business plans, database technologies, systems, structures, architectures, improvements, devices, concepts,
methods and information, however documented and whether or not embodied in any tangible form, and any and all notes, analysis,
compilations, studies, summaries, and other material containing or based, in whole or in part, on any information included in
the foregoing, and including all tangible embodiments of any of the foregoing.


 


“Intellectual
Property” means all intellectual property rights arising from or associated with any of the following, whether protected,
created or arising under the laws of the United States or any other jurisdiction anywhere in the world: (a) Copyrights, (b) Trademarks,
(c) Patents, (d) Trade Secrets, (e) mask work rights and other rights protecting designs, and any applications for registration
therefor, (f) rights in databases and data collections (including knowledge databases, customer lists and customer databases),
whether registered or unregistered, and any applications for registration therefor; (g) rights in URL and domain name registrations,
(h) rights in inventions (whether or not patentable) and improvements thereto, and (i) any other proprietary, intellectual or
industrial property rights of any kind or nature now known or hereafter recognized in any jurisdiction worldwide.


 


“Inventory”
means the inventory listed on Schedule 1.1(b) and all other inventory, wherever located, including raw materials, work
in process, recycled materials, demo and evaluation inventory, finished products, inventoriable supplies, and non-capital spare
parts owned by Seller or an Affiliate and used or held for use primarily in the operation or conduct of the Seller Business, and
any rights of Seller to the warranties received from suppliers and any related claims, credits, rights of recovery and set-off
with respect to such Inventory, but only to the extent such rights are assignable, but excluding any such items primarily related
to Excluded Assets or Excluded Liabilities.


 


“IRS”
means the U.S. Internal Revenue Service.


 


“knowledge
of Seller” or “to Seller’s knowledge” means the actual knowledge of the individuals specified
on Schedule 1.1(a) after reasonable investigation.


 


“Law”
means any supranational, national, federal, state, provincial or local law, statute, ordinance, rule, regulation, code, order,
judgment, injunction or decree of any country.


 


“Lease”
means the lease to be assigned or subleased, as the case may be, together with all amendments, modifications or supplements thereto,
for any of the Leased Premises.


 


“Lease
Assignment” means the “form of” Assignment, Assumption and Amendment to Lease Agreement attached hereto
as Exhibit B.


 


“Leased
Equipment” means the vehicles, computers, machinery and equipment and other similar items leased and used or held for
use by Seller primarily in the operation or conduct of the Seller Business but excluding any such items primarily related to Excluded
Assets or Excluded Liabilities.


 


“Leased
Premises” means the real property identified on Schedule 3.7(a), together with all rights, easements and
privileges appertaining or relating to such real property, and all improvements located thereon, that is leased by Seller from
Third Parties and used or held for use by Seller primarily in the operation or conduct of the Seller Business.


 




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“Licenses”
means all licenses, agreements and other arrangements identified on Schedule 2.1(i) under which Seller has the right
to use any Intellectual Property or Information of a Third Party which is used or held for use primarily in the operation or conduct
of the Seller Business but not (i) the Non-assignable Licenses, (ii) Contracts for non-customized Software that is licensed solely
in executable or object code form pursuant to a nonexclusive, internal use software license, and not incorporated into, or used
directly in, the development, manufacturing or distribution of, any of the Seller Products or services of the Seller Business
and is generally available to the public on standard, non-negotiated terms (“Standard Software”), or
(iii) any such items primarily related to Excluded Assets or Excluded Liabilities.


 


“Non-assignable
Licenses” means those Licenses of Intellectual Property or Information under which Seller or an Affiliate of Seller
is the licensee that are (i) not to be assigned as set forth on Schedule 2.1(i) or (ii) related to other businesses
of Seller or an Affiliate of Seller and not used or held for use primarily in the operation or conduct of the Seller Business,
including Contracts for Standard Software and corporate wide information technology licenses used to operate Seller’s retained
businesses.


 


“Patents”
means patents or patent applications worldwide of any kind or nature (including industrial designs and utility models that are
subject to statutory protection), and any renewals, reissues, reexaminations, extensions, continuations, continuations-in-part,
divisions and substitutions relating to any of the patents and patent applications, as well as all related counterparts to such
patents and patent applications, wheresoever issued or pending anywhere in the world.


 


“Pension
Plan” means each “employee pension benefit plan” (within the meaning of Section 3(2) of ERISA) or
similar equivalent under applicable Laws other than the United States.


 


“Permitted
Encumbrances” means any (i) statutory lien for Taxes, assessments and other governmental charges or liens of carriers,
landlords, warehouseman, mechanics and material men incurred in the ordinary course of business, in each case for sums not yet
due and payable, (ii) liens incurred or deposits made in the ordinary course of the Seller Business in connection with workers’
compensation, unemployment insurance and other types of social security or to secure the performance of tenders, statutory obligations,
surety and appeal bonds, bids, leases, government contracts, performance and return of money bonds and similar obligations, (iii)
licenses or covenants granted by Seller or an Affiliate of Seller in connection with sales of products or patent licensing activities
in the ordinary course of business, (iv) any use or other building restriction set forth in the Leases for the Leased Premises,
and (v) any Encumbrance or minor imperfection in title and minor encroachments, if any, that, individually or in the aggregate,
are not material in amount, do not materially interfere with the conduct of the Seller Business or with the use of the Purchased
Assets and do not materially affect the value of the Purchased Assets or the Seller Business.


 


“Person”
means any individual, corporation, partnership, firm, association, joint venture, joint stock company, trust, unincorporated organization
or other entity, or any government or regulatory, administrative or political subdivision or agency, department or instrumentality
thereof.


 


“Post-Closing
Tax Period” means any Tax period beginning after the Closing Date, and, in the case of any Straddle Period, the portion
of such Straddle Period beginning the day after the Closing Date.


 


“Pre-Closing
Tax Period” means any Tax period ending on or before the Closing Date and, in the case of any Straddle Period, the portion
of such Straddle Period ending on the Closing Date.


 


“Principal
Equipment” means all personal property of Seller used or held for use by Seller primarily in the operation or conduct
of the Seller Business including such personal property located (i) on the Lease Premises, at the real property which is leased
pursuant to the Assumed Leases or (ii) at any other facility owned, leased or operated by or for the Seller Business or at any
contract manufacturer or original design manufacturer and including without limitation all computers, laptops, cell phone devices,
smartphones, servers, printers, copiers, faxes, machinery, equipment (including any related replacement or spare parts, components
dies, molds, tools, and tooling), phone or conferencing equipment, network equipment, data processing equipment and peripheral
equipment and other similar items of personal property, but not (x) the Leased Equipment, (y) any such items primarily related
to Excluded Assets or Excluded Liabilities, or (z) any such item of Principal Equipment abandoned by Buyer, at its sole election,
that remains at the Premises for thirty (30) days following the Closing Date. Principal Equipment includes rights to the warranties
received from the manufacturers and distributors of such items and to any related claims, credits, rights of recovery and set-off
with respect to such items, but only to the extent that such rights are assignable.


 




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“Return”
means any return, declaration, report, claim for refund, or information return or statement, and any other document filed or required
to be filed in respect of any Tax, including any schedule or attachment thereto or amendment thereof.


 


“Seller
Material Adverse Effect” means any fact, circumstance, change, condition or effect that, individually or when taken
together with all other such facts, circumstances, changes, conditions or effects that exist at the date of determination of the
occurrence of the Seller Material Adverse Effect, has or is reasonably likely to have a material adverse effect on the business,
operations, financial condition or results of operations of the Seller Business, taken as a whole, or Seller’s ability to
perform its obligations under this Agreement and the Collateral Agreements or consummate the transactions contemplated hereby
or thereby; provided, however, that no facts, circumstances, changes, conditions or effects (by themselves or when
aggregated with any other facts, circumstances, changes, conditions or effects) resulting from, relating to or arising out of
the items enumerated in sub-clauses (i) to (vi) below shall be deemed to be or constitute a Seller Material Adverse Effect, and
no facts, circumstances, changes, conditions or effects resulting from, relating to or arising out of the following (by themselves
or when aggregated with any other facts, circumstances, changes or effects) shall be taken into account when determining whether
a Seller Material Adverse Effect has occurred or may, would or could occur: (i) general economic, financial or political conditions
in the United States or any other jurisdiction in which the Seller Business has substantial business or operations, and any changes
therein (including any changes arising out of acts of terrorism, war, weather conditions or other force majeure events), to the
extent that such conditions do not have a materially disproportionate impact on the Seller Business, taken as a whole, relative
to other welding supply businesses of comparable size ; (ii) conditions in the welding supply industry, and any industry-wide
changes therein (including any changes arising out of acts of terrorism, war, weather conditions or other force majeure events),
to the extent that such conditions do not have a materially disproportionate impact on the Seller Business, taken as a whole,
relative to other welding supply businesses of comparable size; (iii) conditions in the financial markets, and any changes therein
(including any changes arising out of acts of terrorism, war, weather conditions or other force majeure events), to the extent
that such conditions do not have a materially disproportionate impact on the Seller Business, taken as a whole, relative to other
welding supply businesses of comparable size; (iv) acts of terrorism or war to the extent that such acts do not have a materially
disproportionate impact on the Seller Business, taken as a whole, relative to other welding supply businesses of comparable size;
(v) directly from the announcement or pendency of this Agreement and the transactions contemplated hereby, including negative
reactions of any OEMs or customers to the sale announcement; or (vi) directly from compliance by Seller with the express terms
of this Agreement or the failure by Seller to take any action that is prohibited by this Agreement.


 


“Seller
Product(s)” means all products and components thereof to the extent such components are owned, designed or manufactured
by, or on behalf of, Seller or its Affiliates that are used or held for use primarily in the Seller Business, including without
limitation those listed on Schedule 1.1(b).


 


“Software”
means any and all (a) computer programs, including any and all software implementations of algorithms, heuristics models and methodologies,
whether in source code or object code, (b) testing, validation, verification and quality assurance materials, (c) databases, conversion,
interpreters and compilations, including any and all data and collections of data, whether machine readable or otherwise, (d)
descriptions, schematics, flow-charts and other work product used to design, plan, organize and develop any of the foregoing,
(e) software development processes, practices, methods and policies recorded in permanent form, relating to any of the foregoing,
(f) performance metrics, sightings, bug and feature lists, build, release and change control manifests recorded in permanent form,
relating to any of the foregoing and (g) all documentation, including user manuals, web materials, and architectural and design
specifications and training materials, relating to any of the foregoing.


 


“Straddle
Period” means any Tax period that begins on or before and ends after the Closing Date.


 


“Tax”
means a tax of any kind, and all charges, fees, customs, levies, duties, imposts, required deposits or other assessments, whether
federal, state, local or foreign, including all net income, capital gains, gross income, gross receipt, property, franchise, sales,
use, excise, registration, withholding, payroll, employment, social security, worker’s compensation, unemployment, occupation,
capital stock, ad valorem, value added, transfer, gains, profits, net worth, asset, transaction, real property, personal property,
alternative, add-on minimum, escheat or estimated tax or other tax, including any interest, penalties or additions to tax with
respect thereto, whether disputed or not, imposed upon any Person by any taxing or social security authority or other Governmental
Body under applicable Law.


 




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“Third
Party” means any Person not an Affiliate of the other referenced Person or Persons.


 


“Trademarks”
means trademarks, trade names, corporate names, business names, trade styles, service marks, service names, logos, slogans, 800
numbers, or other source or business identifiers and general intangibles of like nature, together with goodwill associated therewith,
whether registered or unregistered and whether arising under the laws of the United States or any state or territory thereof or
any other jurisdiction anywhere in the world, and registrations and applications for registration with respect to any of the foregoing.


 


“Trade
Secrets” means all information of any kind or nature, in whatever form and whether or not embodied in a tangible medium,
including customer lists, concepts, ideas, methods, processes, know-how, methodologies, designs, plans, schematics, bill of materials,
drawings, formulae, technical data, specifications, research and development information, technology and product roadmaps, models,
data bases, marketing materials and other proprietary or confidential information, in each case to the extent any of the foregoing
derives economic value from not being generally known to other Persons who can obtain economic value from its disclosure or use,
excluding any Copyrights or Patents that cover or protect any of the foregoing.


 


“Welfare
Plan” means each “employee welfare benefit plan” (within the meaning of Section 3(1) of ERISA) or
similar applicable Laws of jurisdictions other than the United States.


 


1.2.
Other Definitional and Interpretive Matters.


 


a)
Calculation of Time Period. When calculating the period of time before which, within which or following which any act is
to be done or step taken pursuant to this Agreement, the date that is the starting reference date in calculating such period shall
be excluded. If the last day of such period is a non-Business Day, the period in question shall end on the next succeeding Business
Day.


 


b)
Gender and Number. Any reference in this Agreement to gender shall include all genders, and words imparting the singular
number only shall include the plural and vice versa.


 


c)
Headings. The division of this Agreement into Articles, Sections and other subdivisions and the insertion of headings are
for convenience of reference only and shall not affect or be utilized in construing or interpreting this Agreement. All references
in this Agreement to any “Section” are to the corresponding Section of this Agreement unless otherwise specified.


 


d)
Herein. The words such as “herein,” “hereinafter,” “hereof,” and
“hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless
the context otherwise requires.


 


e)
Including. The word “including” or any variation thereof means “including, without limitation”
and shall not be construed to limit any general statement that it follows to the specific or similar items or matters immediately
following it.


 


f)
Currency. All currency references included herein shall refer to United States dollars.


 


g)
Reasonable Commercial Efforts. Reasonable commercial efforts means that the obligated party is required to make a diligent,
reasonable and good faith effort to accomplish the applicable objective. Such obligation, however, does not require an expenditure
of funds or the incurrence of a liability on the part of the obligated party, nor does it require that the obligated party act
in a manner that would be contrary to normal commercial practices in order to accomplish the objective. The fact that the objective
is or is not actually accomplished is not, by itself, an indication that the obligated party did or did not in fact utilize its
reasonable commercial efforts in attempting to accomplish the objective.


 




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h)
Schedules and Exhibits. The Schedules and Exhibits attached to this Agreement shall be construed with and as an integral
part of this Agreement to the same extent as if the same had been set forth verbatim herein. Any matter disclosed by either party
on any one Schedule with respect to any representation, warranty or covenant of such party shall be deemed disclosed for purposes
of all other representations, warranties or covenants of such party to the extent that it is reasonably apparent from such disclosure
that it also relates to such other representations, warranties or covenants.


 


2.
Purchase and Sale of the Seller Business.


 


2.1.
Purchase and Sale of Assets. Upon the terms and subject to the conditions of this Agreement and in reliance on the representations
and warranties contained herein, on the Closing Date, Seller shall, grant, bargain, sell, transfer, assign, convey and deliver
to Buyer or the Buyer Designee, and Buyer or the Buyer Designee shall purchase, acquire and accept from Seller, all of the right,
title and interest in, to and under the Purchased Assets that Seller owns, leases, licenses, possesses or uses as the same shall
exist on the Closing Date, wherever located, free and clear of Encumbrances. For purposes of this Agreement, “Purchased
Assets” means all the assets, properties and rights used or held for use by Seller primarily in the operation or
conduct of the Seller Business, whether tangible or intangible, real, personal or mixed, including, but not limited to, the asset
categories set forth or described in paragraphs (a) through (p) below (except in each case for the Excluded Assets), to the extent
used or held for use primarily in the operation or conduct of the Seller Business, whether or not any of such assets, properties
or rights have any value for accounting purposes or are carried or reflected on or specifically referred to in Seller’s
books or financial statements:


 


a)
the Contracts;


 


b)
the Seller’s good and collectable receivables (i.e., those which are less than 90 days past due at the Buyer’s discretion),
cash, cash equivalents, bank deposits or similar cash items or employee receivables;


 


c)
the Seller’s trade payables (except those which have been outstanding for 90 days or more at the Buyer’s discretion);


 


d)
any insurance policies or rights of proceeds thereof;


 


e)
the Principal Equipment (including all fork lifts and trucks), Assigned Leased Equipment and Purchased Leased Equipment;


 


f)
the Fixtures and Supplies;


 


g)
the Inventory;


 


h)
the Purchased Assets;


 


i)
the Industrial Gas Fill Plants (and all equipment associated therewith, whether or not legally deemed to be fixtures to the real
estate) located at the Compton, CA and Pomona, CA branch locations;


 


j)
all Intangible Assets;


 


k)
the Assigned Intellectual Property;


 


l)
the Licenses;


 




    	 	8	 



     


    

 


m)
the Business Records;


 


n)
the Governmental Permits (but only to the extent that such Governmental Permits are assignable or transferable to Buyer);


 


o)
the registered domain names listed on Schedule 2.1(m);


 


p)
all prepaid expenses for leased and rented equipment;


 


q)
all prepaid deposits for customer orders to be completed after the Closing Date;


 


r)
all Seller’s lease deposits for the Assumed Leases;


 


s)
all rights to the claims, causes of action, rights of recovery, and rights of set-off, made or asserted against any Person on
or after the Closing Date relating to the Purchased Assets, whether arising out of actions or conditions occurring prior to, on,
or after the Closing Date, including all rights to sue for or assert claims against and seek remedies for past, present and future
infringements of any of the Assigned Intellectual Property and rights of priority and protection of interests therein and to retain
any and all damages, settlement amounts and other amounts therefrom;


 


t)
all guarantees, warranties, indemnities and similar rights in favor of Seller related to the items identified in clauses (a) through
(j) above; and


 


u)
the goodwill of the Seller Business.


 


2.2.
Excluded Assets. Notwithstanding the provisions of Section 2.1, it is hereby expressly acknowledged and agreed that the
Purchased Assets shall not include, and Seller is not granting, bargaining, selling, transferring, assigning, conveying or delivering
to Buyer or the Buyer Designee, and neither Buyer nor the Buyer Designee is purchasing, acquiring or accepting from Seller, any
of the rights, properties or assets set forth or described in paragraphs (a) through (g) below (the rights, properties and assets
expressly excluded by this Section 2.2 or otherwise excluded by the terms of Section 2.1 from the Purchased Assets being referred
to herein as the “Excluded Assets”):


 


a)
any Intellectual Property or Information of Seller or any Affiliate other than the Assigned Intellectual Property;


 


b)
any (i) confidential personnel records pertaining to any Business Employee to the extent applicable Law prohibits the transfer
of such information, or (ii) other books and records that Seller or any Affiliate of Seller is required by Law to retain; provided,
however, that Buyer shall have the right, to the extent permitted by Law and subject to reasonable restrictions, to make
copies of any portions of such retained confidential personnel records and other books and records that relate to the Seller Business,
the Purchased Assets, the Assumed Liabilities or the Transferred Employees; and (iii) any information management system of Seller
or any Affiliate of Seller other than those used or held for use primarily in the operation or conduct of the Seller Business;


 


c)
any claim, right or interest of Seller or any Affiliate of Seller in or to any refund, rebate, abatement or other recovery for
Excluded Taxes, together with any interest due thereon or penalty rebate arising therefrom;


 


d)
the Excluded Contracts, the Non-assignable Licenses and the Excluded Leased Equipment;


 




    	 	9	 



     


    

 


e)
except as specified in Section 2.1, any of Seller’s or any Affiliate’s rights, claims or causes of action against
Third Parties relating to the assets, properties or operations of the Seller Business arising out of transactions occurring prior
to, and including, the Closing Date;


 


f)
except as specifically provided in Section 5.4 or the applicable Assignment and Bill of Sale and Assumption Agreement for any
particular jurisdiction, any of the assets of the Benefits Plans; and


 


g)
all other assets, properties, interests and rights of Seller or any Affiliate not related primarily to the Seller Business or
which have been excluded on Schedule 2.2.


 


2.3.
Purchase Price. In consideration of the grant, bargain, sale, transfer, assignment, conveyance and delivery by Seller of
the Purchased Assets to Buyer or the Buyer Designee, and in addition to assuming the Assumed Liabilities, Buyer and/or the Buyer
Designee shall pay to Seller at the Closing, an aggregate amount equal to Two Million Five Hundred Thousand and 00/100 dollars
($2,500,000) (the “Purchase Price”) in cash by wire transfer of immediately available funds to an account
designated by Seller’s written instructions to Buyer on the Closing Date, less any amounts previously paid (“Deposits”).


 


a)
Deposit. The Seller acknowledges that upon execution of the letter of intent to enter into this Agreement the Buyer made
a non-refundable deposit in the amount of Two Hundred Fifty Thousand and 00/100 dollars ($250,000), which has been credited to
toward the Purchase Price.


 


b)
Final Purchase Price Payment. On the Closing Date, the Buyer shall transfer to the Seller in immediately available funds
the sum of Two Million Two Hundred Fifty Thousand and 00/100 dollars ($2,250,000).


 


2.4.
Assumed Liabilities. On the Closing Date, Buyer or the Buyer Designee shall execute and deliver to Seller each Assignment
and Bill of Sale and Assumption Agreement pursuant to which Buyer or the Buyer Designee shall accept, assume and agree to pay,
perform or otherwise discharge, in accordance with the respective terms and subject to the respective conditions thereof, the
Assumed Liabilities. For purposes of this Agreement, “Assumed Liabilities” means the liabilities and
obligations set forth or described in paragraphs (a) through (c) below, whether or not any such liability or obligation has a
value for accounting purposes or is carried or reflected on or specifically referred to in either Seller’s books or financial
statements:


 


a)
the liabilities and obligations arising after the Closing Date under the Assumed Leases and the transferred Contracts, Licenses
and Governmental Permits;


 


b)
Seller’s accounts payable on the Closing Date and arising thereafter; and


 


c)
except as provided herein, the obligations and liabilities with respect to the Transferred Employees, the Seller Business or the
Purchased Assets in any of the foregoing cases arising from, or in connection with, the operation or conduct of the Seller Business
or the ownership of the Purchased Assets by Buyer or Buyer Designee after the Closing Date.


 




    	 	10	 



     


    

 


2.5.
Excluded Liabilities. Neither Buyer nor the Buyer Designee shall assume or be obligated to pay, perform or otherwise assume
or discharge any liabilities or obligations of Seller or any of its Affiliates, whether direct or indirect, known or unknown,
absolute or contingent, except for the Assumed Liabilities (all of such liabilities and obligations not so assumed being referred
to herein as the “Excluded Liabilities”). For the avoidance of doubt, the parties agree that the Excluded
Liabilities include, but are not limited to, any and all liabilities or obligations set forth or described in paragraphs (a) through
(j) below, whether or not any such liability or obligation has a value for accounting purpose or is carried or reflected on or
specifically referred to in Seller’s books or financial statements:


 


a)
any liability or obligation that arises from, or in connection with, the operation or the conduct of the Seller Business or the
ownership of the Purchased Assets on or prior to the Closing Date (except for Seller’s accounts payable on the Closing Date,
which are included in the Assumed Liabilities as set forth above);


 


b)
any Excluded Taxes;


 


c)
any Environmental Liabilities;


 


d)
any liability or obligation arising out of or related to any Excluded Asset;


 


e)
any indebtedness for borrowed money or guarantees thereof of Seller or intercompany obligations of Seller;


 


f)
except as set forth in Section 5.4(c), any liability or obligation relating to or arising out of (i) the employment and/or any
termination of such employment by Seller of any employee or former employee of Seller on or before the Closing Date, including
any and all liability or obligation relating to wages, remuneration, compensation, unreimbursed expenses, benefits, severance,
pensions, sabbatical, vacation, personal days, floating holidays or other paid-time-off, working time related benefits, time savings
accounts, end of career indemnities, 13th month payment or similar, anniversary bonus, early retirement, reconciliation
of interests, social plans, works council negotiation procedure, social security and related costs (together, the “Employment-Related
Liabilities”) of the employees or former employees of the Seller that are accrued or in the course of accrual or
relate to periods prior to and on the Closing Date or that relate on a prorate temporis basis to the period prior and including
the Closing Date; (ii) any employee’s or former employee’s or his/her dependents’ rights or obligations under
any fringe benefit of employment with Seller, including any Benefit Plan; (iii) any retention payments owed to Business Employees
pursuant to arrangements entered into on or prior to the Closing Date by Seller; and/or (iv) the employment or the termination
of employment (whether before, on or after Closing) or the transfer by operation of Law, in each case as a result of the transaction
contemplated by this Agreement, of any person who is not a Transferred Employee but who claims or is deemed to transfer to the
Buyer or any Buyer Designee by operation of Law, including, without limitation, liabilities and obligations and Losses arising
from, or connected with, any Employment-Related Liabilities;


 


g)
any liability and obligation which arises out of or relates to any breach, default or violation by Seller or its Affiliates of
the Contracts, Licenses and Governmental Permits occurring on or prior to the Closing Date or which arises out of violation of
applicable Law, in each case by Seller or its Affiliates;


 


h)
any liability or obligation in connection with, or relating to, any actions, suits, claims or proceedings against Seller which
arise out of, accrue, or relate to (i) the operation or conduct of the Seller Business or (ii) the ownership of the Purchased
Assets in each case on or before the Closing Date;


 


i)
any benefit liability or obligation relating to or arising in connection with Section 4980B of the Code (COBRA) or otherwise by
operation of applicable Law to provide continuation of health care coverage to employees or former employees of Seller or their
dependents arising from a qualifying event occurring on or before the Closing Date; and


 


j)
except as set forth in Section 5.4(c), any liability or obligation arising from or relating to any Benefit Plan.


 


2.6.
Further Assurances; Further Conveyances and Assumptions; Consent of Third Parties.


 


a)
From time to time following the Closing to the extent permitted by applicable Law and subject to reasonable restrictions, Seller
shall, or shall cause its Affiliates to, make available to Buyer or the Buyer Designee such confidential data and information
in personnel records of Transferred Employees as is reasonably necessary for Buyer to integrate such employees into Buyer’s
or Buyer Designee’s workforce and comply with its obligations under Section 5.4.


 




    	 	11	 



     


    

 


b)
From time to time following the Closing, Seller and Buyer shall, and shall cause their respective Affiliates to, execute, acknowledge
and deliver all such further conveyances, notices, assumptions, releases and acquittances and such other instruments, and shall
take such further actions, as may be necessary or appropriate to assure fully to Buyer and its Affiliates and each of their respective
successors or assigns, all of the properties, rights, titles, interests, estates, remedies, powers and privileges intended to
be conveyed to Buyer or a Buyer Designee under this Agreement and the Collateral Agreements and to assure fully to Seller and
its Affiliates and each of their respective successors and assigns, the assumption of the liabilities and obligations intended
to be assumed by Buyer or a Buyer Designee under this Agreement and the Collateral Agreements, and to otherwise make effective
the transactions contemplated hereby and thereby (including (i) transferring back to Seller any asset or liability not contemplated
by this Agreement to be a Purchased Asset or an Assumed Liability, respectively, which asset or liability was transferred to Buyer
or Buyer Designee at the Closing, and (ii) transferring to Buyer or Buyer Designee any asset or liability contemplated by this
Agreement to be a Purchased Asset or an Assumed Liability, respectively, which was not transferred to Buyer or Buyer Designee
at the Closing).


 


c)
Nothing in this Agreement nor the consummation of the transactions contemplated hereby shall be construed as an attempt or agreement
to assign any Purchased Asset, including any Contract, Lease, License, Governmental Permit, certificate, approval, authorization
or other right, which by its terms or by Law is non-assignable without the consent of a Third Party or a Governmental Body or
is cancelable by a Third Party in the event of an assignment (“Non-assignable Assets”) (provided that
in the event that Buyer or the Buyer Designee notifies Seller that any Purchased Asset should be transferred notwithstanding the
right of a Third Party to cancel in the event of an assignment, then such Purchased Asset that is cancelable by a Third Party
in the event of assignment shall not be included as a Non-assignable Asset for purposes of this Agreement) unless and until such
consents shall have been obtained. Seller shall use all reasonable commercial efforts to obtain such consents and deliver any
required notices prior to Closing, and Buyer shall, and shall cause its Affiliates to, cooperate with Seller to obtain such consents
promptly. To the extent permitted by applicable Law, in the event consents to the assignment thereof cannot be obtained, Seller
and Buyer shall, and shall cause their respective Affiliates to, cooperate in a mutually agreeable arrangement under which (i)
Buyer or a Buyer Designee would obtain the benefits and assume the obligations under such Non-assignable Assets in accordance
with this Agreement including by sub-contracting, sub-licensing, or sub-leasing to Buyer or Buyer Designee, or (ii) such Non-assignable
Assets would be held, as of and from the Closing Date, by Seller in trust for Buyer or Buyer Designee and the covenants and obligations
thereunder would be performed by Buyer or Buyer Designee in Seller’s name and all benefits and obligations existing thereunder
would be for Buyer’s or the Buyer Designee’s account. Seller shall, and shall cause its Affiliates to, also take or
cause to be taken at Buyer’s or the Buyer Designee’s expense such actions in its name or otherwise as Buyer may reasonably
request so as to provide Buyer or the Buyer Designee with the benefits of the Non-assignable Assets and to effect collection of
money or other consideration that becomes due and payable under the Non-assignable Assets, and Seller shall promptly pay over
to Buyer or the Buyer Designee all money or other consideration received by it in respect to all Non-assignable Assets. If after
the Closing Date any Non-assignable Asset becomes assignable (either because consent for the assignment thereof is obtained or
otherwise), Seller shall promptly notify Buyer and assign or transfer such previously Non-assignable Asset to Buyer or the Buyer
Designee.


 


d)
Buyer and Seller shall, and shall cause their respective Affiliates to, use their respective reasonable commercial efforts to
obtain, or to cause to be obtained, any consent, substitution, approval, or amendment required to transfer all rights and obligations
under any and all Contracts, Leases, Licenses, Governmental Permits, certificates, approvals, authorizations or other rights or
obligations or liabilities that constitute Assumed Liabilities.


 


e)
As of and from the Closing Date, Seller on behalf of itself and its Affiliates authorizes Buyer, to the extent permitted by applicable
Law and the terms of the Non-assignable Assets, at Buyer’s expense, to perform all the obligations and receive all the benefits
of Seller or its Affiliates under the Non-assignable Assets and appoints Buyer its attorney-in-fact to act in its name on its
behalf or in the name of the applicable Affiliate of Seller and on such Affiliate’s behalf with respect thereto.


 




    	 	12	 



     


    

 


f)
Notwithstanding anything in this Agreement to the contrary, unless and until any consent or approval with respect to any Non-assignable
Asset is obtained, such Non-assignable Asset shall not constitute a Purchased Asset and any associated liability shall not constitute
an Assumed Liability for any purpose under this Agreement.


 


g)
As reasonably requested by Buyer, Seller will identify the licenses included in the Non-assignable Assets and shall cooperate
with and assist Buyer, at Buyer’s reasonable request and expense, to obtain licenses or arrangements to replace the licenses,
services and assets provided with respect to any Non-assignable Asset.


 


2.7.
Intellectual Property and Information. Unless expressly set forth in this Agreement or in any Collateral Agreement, no
title, right or license of any kind is granted to Buyer pursuant to this Agreement with respect to the Intellectual Property or
Information of Seller or any Affiliate of Seller, either directly or indirectly, by implication, by estoppel or otherwise.


 


2.8.
Bulk Sales Law. Buyer hereby waives compliance by Seller with the requirements and provisions of any “bulk-transfer”
Laws of any jurisdiction (collectively, the “Bulk Sales Laws”), including Article 6 of the California
Uniform Commercial Code, in each case that may otherwise be applicable with respect to the sale of any or all of the Purchased
Assets to Buyer or Buyer Designee. Seller agrees that the indemnification obligations set forth in Section 9.3(b)(ii) shall apply
to Buyer’s waiver of the Bulk Sales Laws.


 


2.9.
Taxes.


 


a)
Buyer or Buyer Designee shall be entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement
to Seller such amounts as Buyer or Buyer Designee is legally required to deduct and withhold under the Code, or any Tax Law with
respect to Taxes resulting from Seller’s sale of Purchased Assets in any jurisdiction; provided that such right to
deduct and withhold shall not apply to any Transfer Taxes allocated to Buyer or Buyer Designee under Section 2.9(b). Buyer shall
provide Seller with written notice of any requirement to so deduct or withhold any amount no less than five (5) days prior to
the Closing Date, and shall provide Seller with a receipt from the applicable Governmental Body documenting the remittance of
such deduction or withholding under the Code or any such Law as soon as reasonably practicable after the date of such deduction
or withholding, but in any event not later than thirty (30) days following any such payment. To the extent that amounts are so
withheld, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect
of whom such deduction and withholding was made.


 


b)
The Party prescribed by applicable Law as primarily liable for the payment thereof shall be responsible for and timely pay any
sales, use, stamp, registration, documentary, filing, recording, transfer, value added or similar fees or Taxes (“Transfer
Taxes”) incurred in connection with the transfer of the Purchased Assets and the assumption of the Assumed Liabilities
to and by, respectively, Buyer and Buyer Designee pursuant to this Agreement. In the case and to the extent of value added and
similar Taxes incurred in connection with the transactions contemplated hereby that are recoverable by Buyer or the Buyer Designee,
such Taxes shall be invoiced by Seller to Buyer or Buyer Designee, as applicable, paid by Buyer or Buyer Designee to Seller, as
applicable, and remitted by Seller, as applicable, to the relevant Governmental Body in accordance with applicable Law, and Buyer
or Buyer Designee shall be entitled to such recovery. The Party prescribed by Law as primarily liable for the payment of such
Transfer Taxes shall prepare all necessary documents (including all Returns) with respect to all such amounts in a timely manner.
The applicable party shall file such Returns and pay such Taxes and shall provide evidence satisfactory to the other party that
such Returns have been filed and Transfer Taxes have been paid. Buyer and Seller shall cooperate to minimize the amount of Transfer
Taxes.


 




    	 	13	 



     


    

 


c)
All real property Taxes, personal property Taxes and similar ad valorem obligations (“Property Taxes”)
levied with respect to the Purchased Assets for a Straddle Period shall be apportioned between Seller and Buyer based on the number
of days of such Straddle Period, and Seller shall be liable for the proportionate amount of Property Taxes that is attributable
to the Pre-Closing Tax Period within such Straddle Period, and Buyer shall be liable for the proportionate amount of Property
Taxes that is attributable to the Post-Closing Tax Period within such Straddle Period. Any refund, rebate, abatement or other
recovery of Property Taxes attributable to the Pre-Closing Tax Period shall be for the account of Seller, and any refund, rebate,
abatement or other recovery of Property Taxes attributable to the Post-Closing Tax Period shall be for the account of Buyer. Upon
receipt of any bill (or any refund, rebate, abatement, or other recovery) for such Property Taxes, Buyer or Seller, as applicable,
shall present a statement to the other setting forth the amount of reimbursement to which each is entitled under this Section
2.9(c) together with such supporting evidence as is reasonably necessary to calculate the proration amount. The proration amount
shall be paid by the party owing it to the other within ten (10) days after delivery of such statement. In the event that Buyer
or Seller makes any payment for which it is entitled to reimbursement under this Section 2.9(c), the applicable party shall make
such reimbursement promptly, but in no event, later than ten (10) days after the presentation of a statement setting forth the
amount of reimbursement to which the presenting party is entitled along with such supporting evidence as is reasonably necessary
to calculate the amount of reimbursement.


 


d)
Following the Closing, Buyer and Seller shall cooperate as reasonably requested for the purpose of enabling the requesting party
to (i) make any election relating to Taxes, (ii) prepare Returns with respect to the Seller Business or the Purchased Assets or
(iii) to prepare for and defend audits or other Tax-related examinations by a Governmental Body with respect to the Seller Business
and the Purchased Assets. Such cooperation shall be at the expense of the requesting party.


 


2.10.
Buyer Designee. The Parties agree that Buyer may and shall assign the Purchased Assets to the Buyer Designee contemporaneously
with the Buyer’s purchase of the Purchased Assets. Notwithstanding any such assignment or execution of a collateral agreement
by the Buyer Designee or contemporaneous assignment, Buyer shall remain liable for, and any such assignment or execution shall
not relieve Buyer of, its obligations hereunder or thereunder. Any reference to Buyer in this Agreement shall to the extent applicable
also be deemed a reference to the applicable Buyer Designee, except where in context of this Agreement such use would not be appropriate.


 


3.
Representations and Warranties of Seller. Except as set forth in the Schedules attached hereto and delivered by Seller
to Buyer prior to the execution of this Agreement, Seller represents and warrants to Buyer that:


 


3.1.
Organization and Qualification. Seller is a corporation duly organized, validly existing and in good standing under the
Laws of the state of California and has all requisite corporate power and authority to carry on the Seller Business as currently
conducted by it and to own and operate the Purchased Assets and conduct the Seller Business. Seller is duly qualified to do business
and is in good standing as a foreign corporation (in any jurisdiction that recognizes such concept) in each jurisdiction where
the ownership or operation of the Purchased Assets or the operation or conduct of the Seller Business requires such qualification,
except where the failure to be so qualified or in good standing, individually or in the aggregate, has not had and could not reasonably
be expected to have a Seller Material Adverse Effect.


 


3.2.
Subsidiaries. Seller has no Subsidiaries. No other Affiliate of Seller owns any assets used or held for use primarily in
the operation or conduct of the Seller Business.


 


3.3.
Authorization; Binding Effect.


 


a)
Seller has all requisite corporate power and authority to execute, deliver and perform this Agreement and the Collateral Agreements
to which it will be a party and to effect the transactions contemplated hereby and thereby, and the execution, delivery and performance
of this Agreement and the Collateral Agreements to which it will be a party has been duly authorized by all requisite corporate
action.


 




    	 	14	 



     


    

 


b)
This Agreement has been duly executed and delivered by Seller and this Agreement is, and the Collateral Agreements to which Seller
will be a party when duly executed and delivered by Seller will be, valid and legally binding obligations of Seller, enforceable
against Seller, as applicable, in accordance with their respective terms, except to the extent that enforcement of the rights
and remedies created hereby and thereby may be affected by bankruptcy, reorganization, moratorium, insolvency and similar Laws
of general application affecting the rights and remedies of creditors and by general equity principles.


 


3.4.
Non-Contravention; Consents.


 


a)
The execution, delivery and performance of this Agreement by Seller and the Collateral Agreements by Seller and the consummation
of the transactions contemplated hereby and thereby do not and will not: (i) result in a breach or violation of, or conflict with,
any provision of Seller’s charter, by-laws or similar organizational document, (ii) violate or result in a breach of or
constitute an occurrence of default under any provision of, result in the acceleration or cancellation of any obligation under,
or give rise to a right by any party to terminate or amend its obligations under, any mortgage, deed of trust, conveyance to secure
debt, note, loan, indenture, lien, lease, agreement, license, permit, instrument, order, judgment, decree or other arrangement
or commitment to which Seller is a party or by which it is bound and which relates to the Seller Business or the Purchased Assets
or (iii) violate any applicable Law, order, judgment, decree, rule or regulation of any court or any Governmental Body having
jurisdiction over Seller, the Seller Business or the Purchased Assets, other than in the case of clauses (ii) and (iii), any such
violations, breaches, defaults, accelerations or cancellations of obligations or rights that, individually or in the aggregate,
are not and could not reasonably be expected to be material to the Seller Business, taken as a whole.


 


b)
No consent, approval, order or authorization of, or registration, declaration or filing with, any Person is required to be obtained
by Seller in connection with the execution, delivery and performance of this Agreement and the Collateral Agreements to which
Seller will be a party or for the consummation of the transactions contemplated hereby or thereby by Seller, except for (i) consents
or approvals of Governmental Bodies or other Third Parties that are required to transfer or assign to Buyer or the Buyer Designee
any Purchased Assets or assign the benefits of or delegate performance with regard thereto in any material respect, which are
set forth in Schedule 7.1(b) (the “Required Closing Consents”) and (ii) such consents,
approvals, orders, authorizations, registrations, declarations or filings the failure of which to be obtained or made, individually
or in the aggregate, are not and could not reasonably be expected to be material to the Seller Business, taken as a whole.


 


3.5.
Title to Property; Principal Equipment; Sufficiency of Assets.


 


a)
Seller has and at the Closing will have good and valid title to all tangible and intangible Purchased Assets free and clear of
any Encumbrance except for Permitted Encumbrances and all Purchased Assets material to the operation of Seller’s business
will be conveyed to the Buyer at Closing.


 


b)
Each material item of Principal Equipment is in good operating condition and repair, subject to normal wear and tear, suitable
for the purposes for which it is currently being used, but is otherwise being transferred on a “where is” and, as
to condition, “as is” basis.


 


c)
Except for (i) the assets and Business Employees not transferred to Buyer or Buyer Designee at Buyer’s written request and
(ii) the Excluded Assets; the Purchased Assets and the Transferred Employees and the other rights to be acquired or licensed under
this Agreement and the Collateral Agreements constitute (x) all property, assets, personnel and rights that are used or held for
use by Seller primarily in the operation or conduct of the Seller Business and (y) all property, assets and rights that are necessary
for the operation or conduct of the Seller Business as currently conducted. In the event this Section 3.5(c) is breached because
Seller has in good faith failed to identify and transfer any asset or property or provide any service used or held for use primarily
in the Seller Business, such breach shall be deemed cured if Seller promptly transfers such properties or assets or provides such
services to Buyer or a Buyer Designee at no additional cost to Buyer or a Buyer Designee.


 




    	 	15	 



     


    

 


3.6.
Permits; Licenses. Except as set forth in Schedule 2.1(l), there are no material Governmental Permits necessary
for or used by Seller to operate the Seller Business as now being operated or to use or occupy the Premises, which Governmental
Permits are required by currently effective Laws. Seller owns, holds or possesses in their own name, all Governmental Permits
necessary to own or lease, operate and use the Purchased Assets or own, use or occupy the Leased Premises and to carry on and
conduct the Seller Business and its operations as presently conducted, except for such Governmental Permits, the absence of which,
individually or in the aggregate, is not material to the Seller Business. The Governmental Permits held, owned or possessed by
Seller are valid and in full force and effect and no proceeding is recorded, pending or, to Seller’s knowledge, threatened
seeking the suspension, modification, limitation or revocation of any such Governmental Permit. The Seller is not in material
violation of or default under any such Governmental Permits.


 


3.7.
Real Estate; Environmental Matters.


 


a)
Schedule 3.7(a) contains a complete and accurate list of the Leased Premises and Assumed Leases. Except as set forth
in Schedule 3.7(a), the Assumed Leases are in full force and effect and the Seller has not violated, and, to Seller’s
knowledge, the landlord has not violated or waived, any of the material terms or conditions of the Assumed Leases and all the
material covenants to be performed by Seller, and to Seller’s knowledge, the landlord under the Assumed Leases prior to
the date hereof have been performed in all material respects.


 


b)
The use of the Leased Premises, as presently used by the Seller Business, does not violate in any material respect any local zoning
or similar land use or other applicable Laws. The Seller is not in violation of or in noncompliance with any covenant, condition,
restriction, order or easement affecting the Leased Premises except where such violation or noncompliance, individually or in
the aggregate, is not or could not reasonably be expected to be material to the Seller Business, taken as a whole. There is no
pending or, to Seller’s knowledge, threatened condemnation or similar proceeding affecting the Leased Premises.


 


c)
Except as set forth in Schedule 3.7(c), in respect of the Seller Business and the Premises:


 


i)
the operations of the Seller Business and the Leased Premises comply in all material respects with all applicable Environmental
Laws;


 


ii)
Seller has obtained all environmental, health and safety Governmental Permits required by or related to any Environmental Law
and necessary for its operations, and all such Governmental Permits are in good standing, and Seller is in compliance with all
terms and conditions of such permits except where the failure to obtain, maintain in good standing or be in compliance with, such
permits, individually or in the aggregate, is not or could not reasonably be expected to be material to the Seller Business, taken
as a whole;


 


iii)
since commencing business operations, none of Seller, or any of the Leased Premises or the operations of the Seller Business,
have been subject to any on-going or previous investigation by, order from or agreement with any Person respecting (A) any Environmental
Law, or (B) any remedial action arising from the release or threatened release of a Hazardous Substance into the environment;


 


iv)
the Seller is not subject to any judicial or administrative proceeding, order, judgment, decree or settlement alleging or addressing
a violation of or liability under any Environmental Law;


 


v)
Seller has filed all notices required to be filed under any Environmental Law indicating past or present treatment, storage or
disposal of a Hazardous Substance or reporting a spill or release of a Hazardous Substance into the environment except where the
failure to file any such notices, individually or in the aggregate, has not had and could not reasonably be expected to have a
Seller Material Adverse Effect;


 




    	 	16	 



     


    

 


vi)
Seller has provided or made available to Buyer all material reports, assessments, compliance reports or audits, remedial actions
plans or similar documents relating to any material environmental conditions of the Leased Premises that are in Seller’s
possession;


 


vii)
to Seller’s knowledge, there is no asbestos containing material or lead based paint containing materials in at, on, under
or within the Leased Premises;


 


viii)
the Seller has not received any written notice, or to Seller’s knowledge, other claim to the effect that it is or may be
liable to any Person as a result of the release or threatened release of a Hazardous Substance; and


 


ix)
there have been no releases or to Seller’s knowledge, threatened releases of any Hazardous Substances into, on or under
any of the Leased Premises by Seller or its Affiliates or, to Seller’s knowledge, any other Person, in any case in such
a way as to create any liability (including the costs of investigation and remediation) under any applicable Environmental Law.


 


3.8.
Compliance with Laws.


 


a)
Except as set forth on Schedule 3.8, with respect to the Purchased Assets, the Seller Business and Seller is in
compliance in all material respects with all applicable Laws and all decrees, orders, judgments, writs, injunctions, permits and
licenses of or from Governmental Bodies by which the Seller Business or the Purchased Assets are bound or affected.


 


b)
Without limiting the generality of the foregoing, the Seller, nor, to Seller’s knowledge, any agent, employee or other Person
associated with or acting on behalf of Seller, has, directly or indirectly, used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expense relating to political activity, made any unlawful payment to any foreign or domestic
government official or employee or to any foreign or domestic political party or campaign from corporate funds, violated any provision
of the Foreign Corrupt Practices Act of 1977, as amended or any money laundering laws, or similar legislation in applicable jurisdictions
or made any bribe, rebate, payoff, influence payment, kickback or other similar unlawful payment.


 


3.9.
Litigation. Except as set forth on Schedule 3.9, there is no action, suit, consent decree, proceeding, arbitration
or governmental investigation pending or, to Seller’s knowledge, threatened by, against or involving Seller, the Seller
Business, the Purchased Assets, the Assumed Liabilities or the Transferred Employees (i) which seeks to restrain or enjoin the
consummation of the transactions contemplated hereby or (ii) with respect to the Seller Business, the Purchased Assets, the Assumed
Liabilities or the Transferred Employees that, individually or in the aggregate, has been or could reasonably be expected to be
material to the Seller Business, taken as a whole. To Seller’s knowledge, there is no basis for any such action, suit, decree,
proceeding, arbitration or investigation not disclosed on Schedule 3.9.


 


3.10.
Business Employees.


 


a)
Schedule 3.10(a)(i) contains a complete and accurate list of all the Seller Business Employees as of Closing, showing
for each Business Employee, the name, title, location, service date, leave status (active or inactive), annual base salary or
wages, annual incentive/bonus or commission opportunity and any recent salary increase, as applicable. Except as set forth on
Schedule 3.10(a)(ii), (i) no Business Employee is covered by any union, collective bargaining agreement or other
similar labor agreement; (ii) to Seller’s knowledge, are there no pending union, works council or similar labor organizing
activities or arrangements; and (iii) in the three years prior to the date hereof, there has been no labor dispute, other than
routine individual grievances, or any activity or proceeding by a labor union or representative thereof to organize the Business
Employees, or any lockouts, strikes, slowdowns, work stoppages or threats thereof by or with respect to Business Employees. No
unfair labor practice, labor dispute or labor charge or complaint is pending or, to the knowledge of Seller, threatened with respect
to any Business Employee.


 




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b)
Except as set forth in Schedule 3.10(b), Seller does not currently maintain, contribute to or have any liability
under any Benefit Plan. With respect to each of the Benefit Plans identified on Schedule 3.10(b), Seller has made
available to Buyer true and complete copies of the most recent plan or summary or other written description describing all material
terms thereof.


 


c)
Seller does not currently maintain, contribute to or have any liability under any Benefit Plan that is intended to be qualified
under Section 401(a) of the Code.


 


d)
Other than as set forth in Schedule 3.10(b), no Benefit Plan is, and Seller or any ERISA Affiliate does not sponsor
or maintain or has previously sponsored, maintained, contributed to, incurred an obligation to contribute to, or is or was required
to contribute to: (i) any “multiemployer plan” as defined in Section 3(37) or 4011(a)(3) of ERISA, or (ii)
any pension plan subject to Title IV of ERISA, Part 3 of Title I of ERISA or Section 412 of the Code.


 


e)
No Benefit Plan provides for retiree or post-employment health, disability or life benefits to any Business Employee, and Seller
or any ERISA Affiliate has not promised to or contracted with any Business Employee (either individually or to Business Employees
as a group) with retiree health or other retiree employee welfare benefits.


 


f)
Neither the execution nor the delivery of this Agreement or the Collateral Agreements or the consummation of the transactions
contemplated hereby, either alone or in combination with another event, will (i) entitle any Business Employee to any payment
from Seller; (ii) increase the amount of compensation or benefits due from Seller to any such employee; (iii) accelerate the vesting,
funding or time of payment of any compensation, equity award or other benefits from Seller; or (iv) result in the payment of any
“excess parachute payment” within the meaning of Section 280G of the Code or any similar provisions of foreign,
state or local Law.


 


g)
The Seller does not maintain or sponsor any “nonqualified deferred compensation plan” within the meaning of
Section 409A(d)(1) of the Code in which a Business Employee participates and may incur an additional tax under Section 409A of
the Code.


 


h)
With respect to the Seller Business, there is not presently pending or existing, and to Seller’s knowledge there is not
threatened, (i) any strike, slowdown, picketing, or work stoppage, (ii) any application for certification of a collective bargaining
agent, (iii) any controversies or disputes pending, or to Seller’s knowledge, threatened between Seller and any of its employees,
or (iv) any claims, litigation or disputes by a works council or other applicable Government Body, which controversies, claims,
litigation or disputes, individually or in the aggregate, are or could reasonably be expected to be material to the Seller Business,
taken as a whole.


 


i)
No Business Employee has a contractual right to any defined benefit pension or rights under an occupational pension plan.


 


3.11.
Contracts. 


 


a)
Schedule 3.11(a) contains a complete and accurate list of all existing Material Contracts of Seller that:


 


i)
involve or could reasonably be expected to involve payments by or to Seller either of more than $25,000 per year or more than
$50,000 in the aggregate over the full term thereof;


 




    	 	18	 



     


    

 


ii)
contain any provision or covenant prohibiting or limiting the ability of Seller to (A) engage in any activity relating to or involving
the Seller Business (including geographical restrictions), (B) to compete in any line of business, directly or indirectly, with
any Person as to the Seller Business;


 


iii)
provide for “most favored nation” terms, including such terms for pricing, and that is material to the Seller Business;


 


iv)
create or obligate Seller to participate in any joint venture or similar arrangement with respect to or affecting the Seller Business
or the Purchased Assets;


 


v)
contain material maintenance, warranty, support or similar obligations, other than as set forth on the standard terms and conditions
of sale included in Schedule 3.15(a);


 


vi)
for any distributor, original equipment manufacturer, reseller, value added reseller, sales, agency or manufacturer’s representative
relationships that is material to the Seller Business; and


 


vii)
constitute any other agreement, commitment, arrangement or plan not made in the ordinary course of business that is material to
the Seller Business (clauses (i) through (vi) collectively, the “Material Contracts”).


 


b)
Schedule 3.11(b) contains a complete and accurate list of all contracts, agreements, commitments, purchase orders,
and instruments that are material to the Seller Business but are not included in the Purchased Assets.


 


c)
Each Material Contract is valid, binding and enforceable against Seller and, to Seller’s knowledge, the other parties thereto
in accordance with its terms and is in full force and effect. The Seller is not in default under or in breach of or is otherwise
delinquent in performance under any Material Contract (and Seller has not received any notice alleging any such default, breach
or delinquency). To Seller’s knowledge, each of the other parties thereto has performed in all material respects all obligations
required to be performed by it under, and is not in material default under, any Material Contract and no event has occurred that,
with notice or lapse of time, or both, would constitute such a material default. Seller has made available to Buyer true and complete
copies of all Material Contracts.


 


3.12.
Financial Information; Absence of Certain Changes.


 


a)
Schedule 3.12(a) contains true and complete copies of the following unaudited financial statements of the Seller
Business (the “Unaudited Business Financials”):


 


i)
Unaudited balance sheet or financial statements of the Seller Business as of December 31, 2018 (the “Balance Sheet”).


 


b)
The Unaudited Business Financials were prepared on the basis of the books and records (which are accurate and complete in all
material respects) of the Seller Business (in each case, as of the date of such Unaudited Business Financials). The Unaudited
Business Financials present fairly, in all material respects, the financial position of the Seller Business as of the dates thereof
and the results of its operations and cash flows for each of the periods then ended. The Unaudited Business Financials were prepared
substantially in accordance with GAAP, except that depreciation is shown on a tax reporting basis.


 




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c)
Except as set forth in Schedule 3.12(c), since the date of the Balance Sheet, the Seller Business has been conducted
by Seller in the ordinary course consistent with past practices and there has not been:


 


i)
any event, occurrence, development or state of circumstances or facts which, individually or in the aggregate, has had or could
reasonably be expected to have a Seller Material Adverse Effect;


 


ii)
any creation or other incurrence of any Encumbrance on any Purchased Asset other than in the ordinary course of business consistent
with past practices;


 


iii)
failure to timely pay when due any material obligation related to the Seller Business;


 


iv)
any material damage, destruction or other casualty loss (whether or not covered by insurance) affecting the Seller Business or
any Purchased Asset;


 


v)
any transaction or commitment made, or any contract or agreement entered into, by Seller relating to the Seller Business or any
Purchased Asset (including the acquisition or disposition of any assets) or any relinquishment by Seller of any contract or other
right, in either case, material to the Seller Business, other than transactions and commitments other than in the ordinary course
of business consistent with past practices and those contemplated by this Agreement and the Collateral Agreements;


 


vi)
any change in any method of accounting or accounting practice by Seller with respect to the Seller Business;


 


vii)
any (i) employment, retention, bonus, deferred compensation, severance, retirement or other similar agreement entered into with
any Business Employee (or any amendment to any such existing agreement), (ii) change in compensation or other benefits payable
to any Business Employee pursuant to any severance or retirement plans or policies thereof, or (iii) grant of any severance or
termination pay to any Business Employee;


 


viii)
any labor dispute, other than routine individual grievances, or any activity or proceeding by a labor union or representative
thereof to organize the Business Employees, or any lockouts, strikes, slowdowns, work stoppages or threats thereof by or with
respect to Business Employees; or


 


ix)
any shipments or sales of quantities of Seller Products to customers, including distributors, other than in the ordinary course
consistent with their past requirements.


 


d)
Except as set forth in Schedule 3.12(d), Seller has not received or booked any prepaid revenues for the Seller Business
applicable to performance due after the Closing Date.


 


3.13.
Intellectual Property. 


 


a)
Seller or one of its Affiliates owns exclusively all right, title and interest in and to the Assigned Intellectual Property, free
and clear of all Encumbrances other than Permitted Encumbrances. Seller and its Affiliates have not received any notice or claim
challenging Seller’s or any of its Affiliates’ ownership of any Assigned Intellectual Property or suggesting that
any other Person has any claim of legal or beneficial ownership or exclusive rights with respect thereto, nor to Seller’s
knowledge is there a reasonable basis for any claim that Seller or its Affiliates, as applicable, does not so own any of such
Assigned Intellectual Property. Schedule 3.13(a) contains a complete and accurate list of all Trademarks and/or
Copyrights that are to be assigned to Buyer or a Buyer Designee (the “Assigned Intellectual Property”).
There are no other trademarks, patents or copyrights, registered or pending applications for registration, being assigned to Buyer
of a Buyer Designee. Seller has not received any notice or claim challenging the validity or enforceability of any of the Assigned
Trademarks or indicating an intention on the part of any Person to bring a claim that any of the Assigned Trademarks is invalid
or unenforceable, nor to Seller’s knowledge is there a reasonable basis for any claim that any of the Assigned Trademarks
is either invalid or unenforceable.


 




    	 	20	 



     


    

 


b)
Except as set forth in Schedule 3.13(b), in connection with the operation of the Seller Business:


 


i)
To Seller’s knowledge, none of Seller or any of its Affiliates has infringed, misappropriated or otherwise violated any
Intellectual Property rights of any Third Party;


 


ii)
There is no suit, or proceeding pending against or, to Seller’s knowledge, threatened against or a written or, to Seller’s
knowledge, oral claim affecting, the Seller Business (x) based upon, or challenging or seeking to deny or restrict, the rights
of Seller or any of its Affiliates in any of the Assigned Intellectual Property (y) alleging that the use of the Assigned Intellectual
Property or any services provided, processes used, or products manufactured, used, imported, offered for sale or sold with respect
to the Seller Business conflict with, misappropriate, infringe or otherwise violate any Intellectual Property of any Third Party,
or (z) alleging that Seller or any of its Affiliates infringed, misappropriated, or otherwise violated any Intellectual Property
of any Third Party in connection with the operation of the Seller Business; and


 


iii)
(A) the Assigned Intellectual Property constitutes all the Intellectual Property and Information owned by or licensed (to
the extent Seller has a right to license or sublicense Buyer thereunder without payment of a fee) to Seller or one of its
Affiliates that is used or held for use primarily in the operation or conduct of the Seller Business; (B) there exist no
restrictions on the disclosure, use, license or transfer of the Assigned Intellectual Property (other than the restrictions
imposed by applicable Law); (C) the consummation of the transactions contemplated by this Agreement will not alter, impair or
extinguish any of the Assigned Intellectual Property; and (D) the Assigned Intellectual Property constitutes all of the
Intellectual Property and Information owned by Seller that are necessary for the operation or conduct of the Seller Business
as currently conducted (provided that this subsection (D) shall not be interpreted as a representation regarding
non-infringement, which is addressed in subsection (b)(i) above). No loss or expiration of Seller’s rights to use any
Intellectual Property or Information licensed to Seller under any is pending or to the knowledge of Seller,
threatened.


 


c)
The Seller has not entered into any Contracts containing any covenant or other provision that in any way limits or restricts the
ability of Seller to use, assert, enforce, or otherwise exploit any Assigned Intellectual Property anywhere in the world. The
Seller has not (i) transferred ownership of (whether a whole or partial interest), or granted any exclusive right to use, any
Assigned Intellectual Property to any Person; (ii) transferred ownership of (whether a whole or partial interest) or granted any
exclusive right to use any improvements to or derivative works of any Assigned Intellectual Property; or (iii) granted rights
to any Person to create improvements to or derivative works of any material Assigned Intellectual Property that is or would be
owned by such Person or exclusively licensed to such Person.


 


d)
At the Closing, Seller will assign to Buyer free and clear of any Encumbrance the Assigned Intellectual Property.


 


e)
None of the Assigned Intellectual Property has been adjudged invalid or unenforceable in whole or part and, to Seller’s
knowledge, all Assigned Intellectual Property is valid and enforceable.


 


f)
Seller and its Affiliates have taken reasonable actions to maintain and protect the Assigned Intellectual Property, including
payment of applicable maintenance fees and filing of applicable statements of use other than certain foreign applications which
Seller or an Affiliate thereof, in its reasonable business judgment, has abandoned in the ordinary course of business.


 




    	 	21	 



     


    

 


g)
Seller and its Affiliates have taken reasonable steps to maintain the confidentiality of all Trade Secrets relating to the Seller
Business (“Seller Trade Secrets”) and other information that at any time constituted a Trade Secret
relating to the Seller Business, including taking steps to ensure that any Seller Trade Secrets disclosed by Seller or any of
its Affiliates to a Third Party are subject to the confidentiality undertakings set forth in an applicable non-disclosure agreement.
To Seller’s knowledge, there has been no misappropriation of any material Seller Trade Secrets. Seller and its Affiliates
have not disclosed, nor is Seller or any of its Affiliates under any contractual or other obligation to disclose, to another Person
any Seller Trade Secrets, except pursuant to an enforceable confidentiality agreement or undertaking, and, to Seller’s knowledge,
no Person has materially breached any such agreement or undertaking. Without limiting the generality of the foregoing, Seller
has and enforces in a commercially reasonable manner a policy requiring each Business Employee and independent contractor who
has participated in the creation of any Assigned Intellectual Property or have had access to any Seller Trade Secrets to enter
into non-disclosure and invention assignment agreements substantially in Seller’s standard forms (which have previously
been provided to Buyer).


 


h)
To Seller’s knowledge, no Business Employee or independent contractor of Seller or any of its Affiliates who is employed
in connection with the Seller Business is obligated under any agreement or subject to any judgment, decree or order of any court
or Governmental Body, or any other restriction that could reasonably be expected to materially interfere with such Business Employee
or independent contractor carrying out his or her duties for Seller or such Affiliate, as applicable, or that could reasonably
be expected to materially conflict with the Assigned Intellectual Property or the Seller Business as presently conducted.


 


i)
Neither the execution, delivery, or performance of this Agreement nor the consummation of any of the transactions or agreements
contemplated by this Agreement will, with or without notice or the lapse of time, result in, or give any other Person the right
or option to cause or declare, (i) a loss of, or Encumbrance on, any material Assigned Intellectual Property; (ii) the material
release, disclosure, or delivery of any Information, by or to any escrow agent or other Person; or (iii) the grant, assignment,
or transfer by Seller to any other Person of any license or other right or interest under, to, or in any material Assigned Intellectual
Property.


 


3.14.
Product Liability.


 


a)
Each Product produced or sold by Seller in connection with the Seller Business is, and at all times up to and including the sale
thereof has been, in compliance in all material respects with all applicable Laws. To Seller’s knowledge, there is no material
design or manufacturing defect that has been established or is being investigated with respect to any such Product.


 


b)
Except as set forth in Schedule 3.14(b), since commencement of business operations, there has been no action, suit,
claim, inquiry, proceeding or investigation in any case by or before any court or Governmental Body pending or, to Seller’s
knowledge, threatened against or involving the Seller Business relating to any Product alleged to have been designed, manufactured
or sold by the Seller Business and alleged to have been defective or improperly designed or manufactured, nor, to Seller’s
knowledge, has there been any pattern of product failure relating to any Product designed, manufactured or sold by the Seller
Business.


 


c)
Since commencement of business operations, there has been no pending, or to Seller’s knowledge, threatened recall or investigation
of any Product sold by Seller in connection with the Seller Business.


 


3.15.
Product Warranty.


 


a)
Schedule 3.15(a) includes copies of the standard terms and conditions of sale for the Seller Products (containing
applicable guaranty, warranty and indemnity provisions and support obligations). Except as set forth in Schedule 3.15(a),
the products manufactured by the Seller Business have been sold by the Seller Business in accordance with the standard terms and
conditions of sale.


 


b)
Schedule 3.15(b) sets forth a complete and accurate listing of any Seller Products for which one percent (1%) or
more have either been returned to Seller by customers or for which Seller has received return requests from customers, since commencement
of business operations.


 




    	 	22	 



     


    

 


3.16.
Inventory. The Inventory is, and as of the Closing Date will be, valued in accordance with GAAP of quality and quantity
usable and saleable in the ordinary course of the Seller Business consistent with past practice, except in each case for excess,
obsolete items and items of below-standard quality that have been reserved for or written down to estimated net realizable value
in accordance with GAAP applied on a basis consistent with past practices as set forth in the Balance Sheet.


 


3.17.
Customer and Suppliers. Schedule 3.17 contains a list setting forth the largest customers of the Seller Business
those in excess of $50,000 per year, by dollar amount, over the twelve (12) months ended December 31, 2018 (and the amount of
sales with respect to each such customer during such twelve month period), and the largest suppliers of the Seller Business, by
dollar amount, over the twelve (12) months ended December 31, 2017 (and the amounts paid to each such supplier during such twelve
month period). Seller has no knowledge of, and has not received written notice of the intention of any of such customers or suppliers
to cease doing business with Seller. All purchase and sale orders and other commitments for purchases and sales made by Seller
in connection with the Seller Business have been made in the ordinary course of business in accordance with past practices, and
no payments have been made to any supplier or customers or any of their respective representatives other than payments to such
suppliers or their representatives for the payment of the invoiced price of supplies purchased or goods sold in the ordinary course
of business.


 


3.18.
Restrictions on the Seller Business. Except for this Agreement, there is no agreement, judgment, injunction, order or decree
materially affecting (i) Seller’s conduct of the Seller Business as currently conducted, or (ii) to Seller’s knowledge,
Buyer’s ability to conduct the Seller Business after the Closing as currently conducted by Seller.


 


3.19.
Taxes. There are no liens for Taxes upon any of the Purchased Assets other than Permitted Encumbrances. No action, proceeding
or, to Seller’s knowledge, investigation has been instituted against Seller. Seller has duly and timely filed all Returns
that it was required to file; all such Returns were correct and complete in all material respects; and all Taxes of Seller owed
or shown as due on any Return have been paid. Seller (to the extent related to the Seller Business or the Purchased Assets) have
withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing by them to any employee,
independent contractor, creditor, stockholder or other third party except where the failure to make such payment, individually
or in the aggregate, is not or could not reasonably be expected to be material to the Seller Business, taken as a whole. Seller
has not received any claim in writing in the last two (2) years from a Governmental Body or social security administration in
a jurisdiction where any Seller does not file Returns that the Seller is or may be subject to taxation by that jurisdiction. None
of the Purchased Assets (a) is property required to be treated as owned by another person pursuant to the provisions of Section
168(f)(8) of the U.S. Internal Revenue Code of 1954 and in effect immediately before the enactment of the Tax Reform Act of 1986,
(b) constitutes “tax-exempt use property” or “tax-exempt bond financed property” within the meaning of
Section 168 of the Code, (c) secures any debt the interest of which is tax-exempt under Section 103(a) of the Code, or (d) is
subject to a 467 rental agreement as defined in Section 467 of the Code. Seller (and not any of Seller’s Affiliates) is
the beneficial owner of the Assigned Intellectual Property.


 


3.20.
Brokers. No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s,
financial advisor’s or other similar fee or commission in connection with the transactions contemplated by this Agreement
based upon arrangements made by or on behalf of Seller or any Affiliate of Seller.


 


4.
Representations and Warranties of Buyer. Except as set forth in Schedules attached hereto and delivered by Buyer to Seller
prior to the execution of this Agreement, Buyer represents and warrants to Seller that:


 


4.1.
Organization and Qualification. The Buyer and the Buyer Designee is a corporation and limited liability company, respectively,
duly organized, validly existing and in good standing (in any jurisdiction in which such concept exists) under the Laws of the
jurisdiction of their incorporation or organization and each of Buyer and the Buyer Designee have all requisite legal power and
authority to carry on business as currently conducted and to own or lease and operate its properties. The Buyer and the Buyer
Designee are duly qualified to do business and are in good standing as foreign entities (in any jurisdiction that recognizes such
concept) in each jurisdiction where the ownership or operation of its assets or the conduct of its business requires such qualification,
except where the failure to be so qualified or in good standing, individually or in the aggregate, has not had and could not reasonably
be expected to have a material adverse effect on Buyer or the Buyer Designee’s ability to consummate the transactions under
this Agreement and the Collateral Agreements.


 




    	 	23	 



     


    

 


4.2.
Authorization; Binding Effect.


 


a)
The Buyer and the Buyer Designee have all requisite corporate power and authority to execute, deliver and perform this Agreement
and the Collateral Agreements to which they will be a party, as the case may be, and to effect the transactions contemplated hereby
and thereby and the execution, delivery and performance of this Agreement and the Collateral Agreements by Buyer has been duly
authorized by all requisite corporate action and, to the extent not completed on the date hereof by a Buyer Designee, will be
duly authorized by all requisite corporate action.


 


b)
This Agreement has been duly executed and delivered by Buyer and this Agreement is, and the Collateral Agreements to which Buyer
or the Buyer Designee will be a party when duly executed and delivered by Buyer or Buyer Designee will be, valid and legally binding
obligations of Buyer or Buyer Designee enforceable against Buyer or Buyer Designee in accordance with their respective terms,
except to the extent that enforcement of the rights and remedies created hereby and thereby may be affected by bankruptcy, reorganization,
moratorium, insolvency and similar Laws of general application affecting the rights and remedies of creditors and by general equity
principles.


 


4.3.
Non-Contravention; Consents. 


 


a)
Assuming that the consents specified in Section 4.3(b) below have been obtained, the execution, delivery and performance of this
Agreement and the Collateral Agreements by Buyer and the Buyer Designee and the consummation of the transactions contemplated
hereby and thereby do not and will not: (i) result in a breach or violation of any provision of Buyer’s or the Buyer Designee’s
charter or by-laws or similar organizational document, (ii) violate or result in a breach of or constitute an occurrence of default
under any provision of, result in the acceleration or cancellation of any obligation under, or give rise to a right by any party
to terminate or amend its obligations under, any mortgage, deed of trust, conveyance to secure debt, note, loan, indenture, lien,
lease, agreement, instrument, order, judgment, decree or other arrangement or commitment to which Buyer or the Buyer Designee
is a party or by which it or its assets or properties are bound, or (iii) violate any applicable Law, order, judgment, injunction,
decree, rule or regulation of any court or any Governmental Body having jurisdiction over Buyer or Buyer Designee or any of their
respective properties, other than in the case of clauses (ii) and (iii), any such violations, breaches, defaults, accelerations
or cancellations of obligations or rights that, individually or in the aggregate, have not had and could not be reasonably expected
to have a material adverse effect on Buyer or Buyer Designee’s ability to consummate the transactions under this Agreement
and the Collateral Agreements.


 


b)
No consent, approval, order or authorization of, or registration, declaration or filing with, any Person is required to be obtained
by Buyer or the Buyer Designee in connection with the execution, delivery and performance of this Agreement or the Collateral
Agreements or for the consummation of the transactions contemplated hereby or thereby, except for such consents, approvals, orders,
authorizations, registrations, declarations or filings the failure of which to be obtained or made, individually or in the aggregate,
have not had and could not reasonably be expected to have a material adverse effect on Buyer or Buyer Designee’s ability
to consummate the transactions under this Agreement and the Collateral Agreements.


 


4.4.
Brokers. Other than Christopher DuPont, as to which the Buyer shall have full responsibility and Seller shall not have
any liability, no broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s,
financial advisor’s or other similar fee or commission in connection with the transactions contemplated by this Agreement
based upon arrangements made by or on behalf of Buyer or any Affiliate of Buyer.


 




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4.5.
Sufficiency of Funds. Except as otherwise stated herein, Buyer: (i) has or will have at Closing, sufficient funds available
to pay the Purchase Price and any expenses incurred by Buyer in connection with the transactions contemplated by this Agreement
or the Collateral Agreements; (ii) has the resources and capabilities (financial or otherwise) to perform its obligations hereunder
and under the Collateral Agreements; and (iii) has not incurred any obligation, commitment, restriction or liability of any kind,
absolute or contingent, present or future, which would impair or adversely affect its ability to perform its obligations hereunder
and under the Collateral Agreements.


 


5.
Certain Covenants.


 


5.1.
Access and Information.


 


a)
Seller shall give to Buyer and its Affiliates, and their respective officers, employees, accountants, counsel and other representatives
reasonable access during Seller’s normal business hours throughout the period prior to the Closing to all of Seller’s
properties, books, contracts, commitments, reports of examination and records relating to the Seller Business, the Transferred
Employees, the Purchased Assets and the Assumed Liabilities (subject to any limitations that are reasonably required to preserve
any applicable attorney-client privilege or legal or contractual Third-Party confidentiality obligation). Seller shall assist,
Buyer and its Affiliates in making such investigation and shall cause its counsel, accountants, engineers, consultants and other
non-employee representatives to be reasonably available to any of them for such purposes.


 


b)
After the Closing Date, Seller and Buyer shall provide, and shall cause their respective Affiliates to provide, to each other
and to their respective officers, employees, accountants, counsel and other representatives, upon request (subject to any limitations
that are reasonably required to preserve any applicable attorney-client privilege or legal or contractual Third-Party confidentiality
obligation), reasonable access for inspection and copying of all Business Records, Governmental Permits, Licenses, Contracts and
any other information existing as of the Closing Date and relating to the Seller Business, the Purchased Assets, the Assumed Liabilities
or the Transferred Employees and shall make their respective personnel reasonably available for interviews, depositions and testimony
in any legal matter concerning transactions contemplated by this Agreement, the operations or activities relating to the Seller
Business, the Purchased Assets, the Assumed Liabilities or the Transferred Employees and as otherwise may be necessary or desirable
to enable the party requesting such assistance to: (i) comply with any reporting, filing or other requirements imposed by any
Governmental Body; (ii) assert or defend any claims or allegations in any litigation or arbitration or in any administrative or
legal proceeding other than claims or allegations that one party to this Agreement has asserted against the other; or (iii) subject
to clause (ii) above, perform its obligations under this Agreement. The party requesting such information or assistance shall
reimburse the other party for all reasonable and necessary out-of-pocket costs and expenses, if any, incurred by such party in
providing such information and in rendering such assistance. The access to files, books and records contemplated by this Section
5.1(b) shall be during normal business hours and upon reasonable prior notice and shall be subject to such reasonable limitations
as the party having custody or control thereof may impose to preserve the confidentiality of information contained therein.


 


c)
Buyer agrees to preserve all Business Records, Licenses and Governmental Permits in accordance with its corporate policies related
to preservation of records. Buyer further agrees that, to the extent Business Records, Licenses or Governmental Permits are placed
in storage, they will be kept in such a manner as to make individual document retrieval possible in a reasonably expeditious manner.


 




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5.2.
Conduct of the Seller Business. From and after the date of this Agreement and until the Closing Date, except as otherwise
contemplated by this Agreement or as set forth in the Schedules hereto or as Buyer shall otherwise consent to in writing, Seller,
with respect to the Seller Business:


 


a)
will carry on the Seller Business in the ordinary course consistent with past practice and consistent therewith use its reasonable
commercial efforts to keep intact the Seller Business, keep available the services of the Business Employees and preserve the
relationships of the Seller Business with customers, suppliers, licensors, licensees, distributors and others that have a business
relationship with the Seller Business;


 


b)
in the ordinary course consistent with past practice maintain the Purchased Assets in good operating condition and repair or restore
such assets as necessary for the operation of the Seller Business in the ordinary course of business;


 


c)
will not permit, other than as may be required by Law or a Governmental Body, all or any of the Purchased Assets (real or personal,
tangible or intangible) presently and actively used or held for use primarily in the operation or conduct of the Seller Business
to be transferred, sold, licensed, disposed of, or subjected to any Encumbrance, other than sales of Inventory in the ordinary
course of business consistent with past practice and Section 5.2(c);


 


d)
will not sell Inventory outside of the ordinary course of business consistent with past practice, including with respect to pricing,
discounting practices, bundling, sales volume and services levels, and will maintain Inventory sufficient to meet expected customer
requirements, consistent with past practice, including sufficient raw materials, capacity and work in process in light of anticipated
demand and customary cycle times and sufficient finished goods Inventory for satisfaction of customer orders on hand at Closing
and Inventory will be in an amount that at the Closing shall have a value of no less than $500,000 in the aggregate as calculated
in accordance with the Balance Sheet (unless otherwise waived by the Buyer);


 


e)
will not acquire any asset that will be a Purchased Asset except in the ordinary course of business consistent with past practice;


 


f)
will not fail to pay when due any material obligation related to the Seller Business;


 


g)
will not enter into, terminate or materially extend, amend, modify or waive any right with respect to any Material Contract except
for purchase orders entered in the ordinary course of business consistent with past practice;


 


h)
will not sell, lease, license, abandon, permit to lapse, or otherwise transfer, or create or incur any Encumbrance on, any of
the assets, securities, properties, or interests of the Seller Business;


 


i)
will not incur or assume any liabilities, obligations or indebtedness for borrowed money, other than in the ordinary course of
business consistent with past practice or that will constitute Excluded Liabilities;


 


j)
will not increase the salaries, wage rates, other compensation or fringe benefits of, or grant any severance or termination payment
(other than as required by Law) to, any Business Employee;


 


k)
fail to comply in any material respect with all Laws applicable to the Seller Business or the Purchased Assets;


 


l)
will not make, change or revoke any Tax election; file any amended Return; enter into any closing agreement; settle or compromise
any Tax claim or assessment; or consent to any extension or waiver of the limitation period applicable to any claim or assessment
with respect to Taxes, in each case to the extent such action could reasonably be expected to adversely affect the Purchased Assets
or the Seller Business;


 


m)
will not do any other act which would cause any representation or warranty of Seller in this Agreement to be or become untrue
in any material respect or intentionally omit to take any action necessary to prevent any such representation or warranty from
being untrue in any material respect; and


 




    	 	26	 



     


    

 


n)
will not enter into any agreement or commitment with respect to any of the foregoing.


 


5.3.
Taxes.


 


a)
Seller and Buyer acknowledge and agree that (i) Seller will be responsible for and will perform all Tax withholding, payment and
reporting duties with respect to any wages and other compensation paid by Seller to any Business Employee in connection with the
operation or conduct of the Seller Business for any Pre-Closing Tax Period, and (ii) Buyer will be responsible for and will perform
all Tax withholding, payment and reporting duties with respect to any wages and other compensation paid by Buyer or the Buyer
Designee to any Transferred Employee with respect any Post-Closing Tax Period. For the avoidance of doubt, nothing in this paragraph
is intended to modify or adjust the substantive liability of Buyer and Seller under this Agreement with respect to the Taxes described
in this paragraph.


 


b)
Seller shall promptly notify Buyer in writing upon receipt by Seller of notice of any pending or threatened Tax audits or assessments
relating to the income, properties or operations of Seller that reasonably may be expected to relate to or give rise to a lien
on the Purchased Assets or the Seller Business. Each of Buyer and Seller shall promptly notify the other in writing upon receipt
of notice of any pending or threatened Tax audit or assessment challenging the Allocation.


 


c)
Seller, at the request of Buyer, shall deliver to Buyer at the Closing a properly executed affidavit prepared in accordance with
Treasury Regulations section 1.1445-2(b) certifying Seller’s non-foreign status.


 


5.4.
Business Employees.


 


a)
Prior to the Closing, Seller shall update the information provided in Schedule 3.10(a)(i) as of the Closing Date.


 


b)
As of the Closing Date, Buyer shall make offers of employment to at least the number of Business Employees of Seller set forth
on Schedule 5.4(b) whom shall be specifically identified by Buyer prior to the Closing. The initial term of employment
shall be for a period no less than three (3) months, subject to termination for cause, which cause shall be determined by the
Buyer or Buyer Designee in its sole discretion. At the end of the initial three (3) month term, the Buyer or Buyer Designee shall
have the option to extend employment to those Business Employees as it determines in its sole discretion. To the extent permitted
by applicable Law, including data privacy and data protection Laws, Seller agrees to provide Buyer with such information reasonably
requested by Buyer to assist it with complying with the terms of this Section 5.4 and to assist Buyer with determining the wages
paid to the Transferred Employees (as defined below) after Closing. Without limiting the foregoing, each Party shall comply with
all applicable Laws in connection with the transfer of the employees to Buyer or Buyer Designee, including with respect to notice
and other procedural requirements. Any offered Employee who accepts Buyer’s offer of employment and commences employment
with Buyer or Buyer Designee shall be referred to as a “Transferred Employee”. Employment of the Transferred
Employees with Buyer or Buyer Designee shall be effective as of the day following the close of business on the Closing Date.


 


c)
Where terms are not dictated by applicable Law, Buyer or Buyer Designee shall provide, or shall cause to be provided, to Transferred
Employees, during their employment with Buyer or Buyer Designee, at a minimum, the same base salaries or, as applicable, base
wage rates, offered by Seller immediately prior to the Closing Date as set forth on Schedule 3.10(a)(i). Except
as expressly set forth in this Section 5.4, no Benefit Plans or assets of any Benefit Plan shall be transferred to Buyer or any
Affiliate of Buyer.


 


d)
Seller and Buyer intend that the transactions contemplated by this Agreement shall not constitute a severance of employment, under
the terms of any Benefit Plan of Seller, of any Transferred Employee prior to or upon the consummation of the transactions contemplated
hereby and that such employees will have continuous and uninterrupted employment immediately before and immediately after the
Closing Date.


 




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e)
Notwithstanding anything herein to the contrary, nothing in this Agreement shall require Buyer or Buyer Designee to employ any
Business Employees, or to employ any Transferred Employee on anything other than an at-will basis, terminable at any time with
or without cause unless required otherwise under applicable Law. Nothing in this Section 5.4, expressed or implied, shall confer
upon any employee or former employee of Seller or related entities (including, without limitation, the Transferred Employees)
any rights or remedies (including, without limitation, any right to employment or continued employment for any specified period)
of any nature or kind whatsoever, under or by reason of this Section 5.4. It is expressly agreed that the provisions of this Section
5.4 are not intended to be for the benefit of or otherwise be enforceable by, any third party, including, without limitation,
any Transferred Employees. No provision of this Section 5.4 shall create any rights in any such persons in respect of any benefits
that may be provided under any Benefit Plan or any plan or arrangement which may be established or maintained by Buyer, shall
be construed to establish, amend, or modify an Benefit Plan or any other benefit plan, program, agreement or arrangement nor shall
require Seller, Buyer or any Affiliate of Seller or Buyer to continue or amend any particular benefit plan and any such plan may
be amended or terminated in accordance with its terms and applicable Law


 


5.5.
Collateral Agreements; Leased Equipment; Premises.


 


a)
On or prior to the Closing Date, Buyer or Buyer Designee shall execute and deliver to Seller, and Seller shall execute and deliver
to Buyer or Buyer Designee, the Collateral Agreements.


 


b)
Prior to the Closing, Seller shall provide Buyer with the costs and other terms applicable to the Leased Equipment and Buyer shall
decide whether such Leased Equipment will (a) transfer to Buyer or Buyer Designee as of the Closing Date by Buyer or Buyer Designee
assuming the leases for such equipment, (b) become the property of Buyer or Buyer Designee as of the Closing Date by Buyer or
Buyer Designee paying for the costs of purchasing such equipment pursuant to the leases (the “Purchased Leased Equipment”),
or (c) remain the property of Seller as of the Closing Date (the “Excluded Leased Equipment”).


 


5.6.
Regulatory Compliance; Post-Closing Cooperation.


 


a)
Subject to Section 5.6(b), upon the terms and subject to the conditions set forth in this Agreement, each of the parties agrees
to use its reasonable commercial efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist
and cooperate with the other parties in doing, all things necessary, proper or advisable to consummate and make effective, in
the most expeditious manner practicable, the transactions contemplated by this Agreement, including using reasonable commercial
efforts to accomplish the following: (i) the taking of all acts necessary to cause the conditions to Closing to be satisfied as
promptly as practicable; (ii) the obtaining of all necessary actions or non-actions, waivers, consents and approvals from Governmental
Bodies and the making of all necessary registrations and filings (including filings with Governmental Bodies, if any) and the
taking of all steps as may be necessary to obtain an approval or waiver from, or to avoid an action or proceeding by any Governmental
Body; (iii) the obtaining of all necessary consents, approvals or waivers from Third Parties; (iv) the defending of any lawsuits
or other legal proceedings, whether judicial or administrative, challenging this Agreement or the Collateral Agreements or the
consummation of the transactions contemplated hereby or thereby, including seeking to have any stay or temporary restraining order
entered by any court or other Governmental Body vacated or reversed; and (v) the execution and delivery of any additional instruments
necessary to consummate the transactions contemplated by, and to fully carry out the purposes of, this Agreement and the Collateral
Agreements.


 


5.7.
Contacts with Suppliers and Customers. Prior to the Closing, Seller and Buyer agree to cooperate to prepare a communications
plan for business partners of the Seller Business, and in contacting any suppliers to, or customers of, the Seller Business in
connection with or pertaining to any subject matter of this Agreement or the Collateral Agreements and to facilitate the transition
of the Seller Business, including the preparation of letters to all customers, suppliers, distributors and other business partners
of the Seller Business to notify them of the Closing and provide information regarding the transition of the Seller Business to
Buyer or Buyer Designee. The Seller will be responsible for contacting parties to any Contracts for which consent is required
in connection with their assignment pursuant to this Agreement. Notwithstanding anything to the contrary contained herein, this
Agreement shall not affect Seller’s continuing right to contact customers and suppliers in connection with the operation
or conduct of the Seller Business nor Buyer’s continuing right to contact customers and suppliers in connection with the
operation or conduct of its business.


 




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5.8.
Non-Solicitation or Hiring of Transferred Employees. None of Seller, any of its representatives or any of its Affiliates
will at any time prior to the date that is one (1) year after the date hereof, directly or indirectly, solicit the employment
of or hire any Transferred Employee without Buyer’s prior written consent. The term “solicit the employment”
shall not be deemed to include generalized searches for employees through media advertisements, employment firms or otherwise
that are not focused on or directed to Transferred Employees. This restriction shall not apply to any employee whose employment
was involuntarily terminated other than for cause by Buyer, the Buyer Designee, or their respective successors, after the Closing.


 


5.9.
No Negotiation or Solicitation. Prior to the Closing Date, Seller and its Affiliates will not (and Seller will cause each
of its employees, officers, representatives and agents or advisors not to and shall cause its Affiliates to cause employees, officers,
representatives and agents or advisors not to) directly or indirectly (a) solicit, initiate, entertain, encourage or accept the
submission of any proposal, offer or any discussions relating to or that might reasonably be expected to lead to or result in
any proposal or offer from any Person relating to the direct or indirect acquisition of the Seller Business or any portion of
the Purchased Assets (other than purchases of Seller Products or services from the Seller Business in the ordinary course of business
consistent with past practice), or (b) participate in any discussions or negotiations regarding the Seller Business, furnish any
information with respect thereto, or assist or participate in, or facilitate or encourage in any other manner any effort or attempt
by any Person to do or seek any of the foregoing. Seller will notify Buyer if any Person makes any proposal, offer, inquiry or
contact with respect to any of the foregoing within two (2) Business Days after receipt of any such offer or proposal, including
the identity of the Person making such proposal, offer, inquiry or contact and all material terms thereof.


 


5.10.
Non-Competition.


 


a)
Seller agrees that, as part of the consideration for the payment of the Purchase Price, for a period of five (5) years immediately
following the Closing Date, neither Seller nor any of its Affiliates will, directly or indirectly, as a principal, stockholder,
joint venturer or otherwise, operate, perform or have any ownership interest in any business that designs, develops, manufactures,
markets, sells, installs or distributes products in competition with the Seller Business starting at the border of Mexico, San
Ysidro crossing and extending into the United States three hundred fifty (350) miles, except that Seller may purchase or otherwise
acquire by merger, purchase of assets, stock (including investing as a minority shareholder), controlling interest or otherwise
any Person or business or engage in any similar merger and acquisition activity with any Person the primary business of which
is not in competition with the Seller Business, provided that Seller may not provide any such business access or license to any
of the Assigned Intellectual Property for use in any business that competes with the Seller Business. For the purposes of this
Section 5.10(a), ownership of securities of a company whose securities are publicly traded under a recognized securities exchange
not in excess of five percent (5%) of any class of such securities shall not be considered to be competition with the Seller Business,
and a Person shall not be considered to be in the “primary business” of competing with the Seller Business
if such Person derives less than twenty percent (20%) of its revenues from products that compete with the Seller Business. For
the avoidance of doubt, the parties agree that the agreements and limitations set forth in this Section 5.10(a) shall not apply
to any entity that acquires all or part of Seller in any transaction.


 


b)
Seller acknowledges that the restrictions set forth in Section 5.10(a) constitute a material inducement to Buyer’s entering
into and performing this Agreement. Seller further acknowledges, stipulates and agrees that a breach of such obligation could
result in irreparable harm and continuing damage to Buyer for which there may be no adequate remedy at Law and further agrees
that in the event of any breach of said obligation, Buyer may be entitled to injunctive relief and to such other relief as is
proper under the circumstances.


 




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c)
If any provision contained in this Section 5.10 shall for any reason be held invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provisions of this Section 5.10, but this Section 5.10
shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. It is the intention
of the parties that if any of the restrictions or covenants contained herein is held to cover a geographic area or to be for a
length of time which is not permitted by applicable Law, or in any way construed to be too broad or to any extent invalid, such
provision shall not be construed to be null, void and of no effect, but to the extent such provision would be valid or enforceable
under applicable Law, a court of competent jurisdiction shall construe and interpret or reform this Section 5.10 to provide for
a covenant having the maximum enforceable geographic area, time period and other provisions (not greater than those contained
herein) as shall be valid and enforceable under such applicable Law.


 


5.11.
Post-Closing Remittances. If on or after the Closing Date, either Party receives a payment from a Third Party (including
a customer of the Seller Business) that, pursuant to the terms hereof, should have been paid to the other Party, the Party who
receives the payment agrees to hold in trust and remit such payment to the Party entitled thereto within five (5) Business Days
of such receipt.


 


5.12.
Pro-rations and Adjustments.


 


a)
Except as otherwise expressly provided herein, all ordinary course expenses for (i) rents and other charges or amounts payable
included in the Purchased Assets and transferred to Buyer hereunder and (ii) gas, electricity, water, sewer, rent and telephone
charges at the Leased Premises, in each case, for the period prior to the Closing Date, will be for the account of Seller and
for the period on and after the Closing Date shall be for the account of Buyer. If any Party actually makes any payments that
are, in whole or in part, designated as payments for the period allocated to the other Party under this Section 5.12, such other
Party shall promptly reimburse such amounts to the Party so making such payments.


 


b)
For purposes of calculating pro-rations, Buyer shall be deemed to own the Purchased Assets, and, therefore be responsible for
the expense thereof, as of 12:01 a.m. local time on the day after the Closing Date. All pro-rations shall be made on the basis
of the actual number of days of the month that shall have elapsed as of the Closing Date and based upon a 365-day year. The amount
of the pro-rations shall be subject to adjustment after the Closing, as and when complete and accurate information becomes available,
and the Parties agree to cooperate and use their good faith efforts to make such adjustments.


 


5.13.
Notification of Certain Matters. Seller shall give prompt written notice to Buyer of (a) the occurrence or non-occurrence
of any event, the occurrence or non-occurrence of which could reasonably be expected to cause any representation or warranty of
Seller in this Agreement to be untrue or inaccurate at or prior to the Closing in any material respect and (b) any failure of
Seller in any material respect to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied
by it hereunder, and Buyer shall give prompt written notice to Seller of (x) the occurrence or non-occurrence of any event, the
occurrence or non-occurrence of which is could reasonably be expected to cause any representation or warranty of Buyer in this
Agreement to be untrue or inaccurate at or prior to the Closing in any material respect and (y) any failure of Buyer in any material
respect to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder.


 


5.14.
Closing Statement. Within ten (10) Business Days after the Closing Date, Seller shall deliver to Buyer a schedule calculated
as of the Closing Date of those line items of the Purchased Assets and Assumed Liabilities that are being transferred or assumed,
as applicable, pursuant to this Agreement and that would be required to be set forth on a balance sheet prepared in accordance
with GAAP (the “Closing Statement”). At least five (5) Business Days prior to the Closing Date, Seller
shall deliver a good faith estimate of the amounts to be set forth on the Closing Statement. Buyer shall have the option to waive
the Closing Statement delivery requirement.


 




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6.
Confidential Nature of Information.


 


6.1.
Confidentiality Agreement. Buyer agrees that any Confidentiality Agreement entered into between the parties shall apply
to (a) all documents, materials and other information that it shall have obtained regarding Seller or its Affiliates during the
course of the negotiations leading to the consummation of the transactions contemplated hereby (whether obtained before or after
the date of this Agreement), any investigations made in connection therewith and the preparation of this Agreement and related
documents and (b) all analyses, reports, compilations, evaluations and other materials prepared by Buyer or its counsel, accountants
or financial advisors that contain or otherwise reflect or are based upon, in whole or in part, any of the provided information;
provided, however, that subject to Section 6.2(a), the Confidentiality Agreement shall terminate as of the Closing
and shall be of no further force and effect thereafter with respect to information of Seller or its Affiliates the ownership of
which is transferred to Buyer or the Buyer Designee.


 


6.2.
Buyer’s Proprietary Information.


 


a)
Except as provided in Section 6.2(b), after the Closing Date and for a period of three (3) years thereafter, Seller agrees that
it will keep confidential all of Buyer’s and its Affiliates’ Information that is received from, or made available
by, Buyer in the course of the transactions contemplated hereby and marked or identified at the time of disclosure as the proprietary
or confidential information of Buyer, or the ownership of which or exclusive use of which is transferred to Buyer as part of the
Purchased Assets (collectively, “Buyer Proprietary Information”), including, for purposes of this Section
6.2, information about the Seller Business’s business plans and strategies, marketing ideas and concepts, especially with
respect to unannounced products and services, present and future product plans, pricing, volume estimates, financial data, product
enhancement information, business plans, marketing plans, sales strategies, customer information (including customers’ applications
and environments), market testing information, development plans, specifications, customer requirements, configurations, designs,
plans, drawings, apparatus, sketches, software, hardware, data, prototypes, connecting requirements, other technical and business
information and information regarding Business Employees.


 


b)
Notwithstanding the foregoing, such Buyer Proprietary Information regarding the Seller Business shall not be deemed confidential
and Seller shall have no obligation with respect to any such Buyer Proprietary Information that:


 


i)
is or becomes publicly known through publication, inspection of a product, or otherwise, and through no negligence or other wrongful
act of Seller;


 


ii)
is received by Seller after the Closing Date from a Third Party without similar restriction and without breach of any agreement;
or


 


iii)
is, subject to Section 6.2(c), required to be disclosed under applicable Law or judicial process.


 


c)
If Seller (or any of its Affiliates) is requested or required (by oral question, interrogatory, request for information or documents,
subpoena, civil investigative demand or similar process) to disclose any Buyer Proprietary Information regarding the Seller Business,
Seller will promptly notify Buyer of such request or requirement and will cooperate with Buyer such that Buyer may seek an appropriate
protective order or other appropriate remedy. If, in the absence of a protective order or the receipt of a waiver hereunder, Seller
(or any of its Affiliates) is in the opinion of Seller’s counsel compelled to disclose the Buyer Proprietary Information
or else stand liable for contempt or suffer other censure or penalty, Seller (or its Affiliate) may disclose only so much of the
Buyer Proprietary Information to the party compelling disclosure as is required by Law. Seller will exercise its (and will cause
its Affiliates to exercise their) reasonable commercial efforts to obtain a protective order or other reliable assurance that
confidential treatment will be accorded to such Buyer Proprietary Information.


 




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6.3.
Confidential Nature of Agreements. Except to the extent that disclosure thereof is required under accounting, stock exchange
or federal securities or labor relations Laws disclosure obligations or pursuant to legal process, both parties agree that the
terms and conditions of this Agreement, the Collateral Agreements and all Schedules, attachments and amendments hereto and thereto
shall be considered confidential or proprietary information protected under this Article 6. Notwithstanding anything in this Article
6 to the contrary, in the event that any such Information is also subject to a limitation on disclosure or use contained in another
written agreement between Buyer and Seller or either of their respective Affiliates that is more restrictive than the limitation
contained in this Article 6, then the limitation in such agreement shall supersede this Article 6.


 


7.
Closing.


 


At
the Closing, the following transactions shall take place:


 


7.1.
Deliveries by Seller. On the Closing Date, Seller shall, execute and deliver to Buyer or the Buyer Designee the following:


 


a)
the Collateral Agreements;


 


b)
the consents, waivers or approvals identified by Buyer on Schedule 7.1(b) (the “Required Closing Consents”);


 


c)
a certificate of an appropriate officer of Seller, dated the Closing Date, certifying to the fulfillment of the conditions set
forth in Sections 8.2(a) and (b), and an incumbency certificate of the Secretary of Seller, dated the Closing Date, in customary
form; and


 


d)
all such other bills of sale, assignments and other instruments of assignment, transfer or conveyance as Buyer or a Buyer Designee
may reasonably request or as may be otherwise necessary to evidence and effect the sale, transfer, assignment, conveyance and
delivery of the Purchased Assets and Assumed Liabilities to Buyer or the Buyer Designee or to put Buyer or the Buyer Designee
in actual possession or control of the Purchased Assets and Assumed Liabilities; provided that all information (including documents)
capable of electronic transmission will be transmitted to Buyer or the Buyer Designee in such manner, in which case such information
shall not be transferred in any tangible form, and any inadvertent transfer of a tangible manifestation of such information shall
promptly be returned to Seller upon discovery of Buyer’s or the Buyer Designee’s receipt thereof.


 


7.2.
Deliveries by Buyer or the Buyer Designee.


 


On
the Closing Date, Buyer shall, or shall cause the Buyer Designee to, execute and deliver to Seller the following:


a)
the balance of the Purchase Price;


 


b)
the Collateral Agreements;


 


c)
a certificate of an appropriate officer of Buyer, dated the Closing Date, certifying to the fulfillment of the conditions set
forth in Sections 8.3(a) and (b), and an incumbency certificate of the Secretary of Seller of Buyer, dated the Closing Date, in
customary form; and


 


d)
all such other documents and instruments as Seller may reasonably request or as may be otherwise necessary or desirable to evidence
and effect the assumption by Buyer or the Buyer Designee of the Assumed Liabilities.


 


7.3.
Closing Date. The Closing shall take place on or around February 22, 2019, subject to the last of the conditions specified
in Article 8 being satisfied or waived (other than conditions which can only be satisfied on the Closing Date, but subject to
the satisfaction or waiver of such conditions), or at such other place or time or on such other date as Seller and Buyer may agree
upon in writing (such date and time being referred to herein as the “Closing Date”).


 




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7.4.
Contemporaneous Effectiveness. All acts and deliveries prescribed by this Article 7, regardless of chronological sequence,
will be deemed to occur contemporaneously and simultaneously on the occurrence of the last act or delivery, and none of such acts
or deliveries will be effective until the last of the same has occurred.


 


8.
Conditions Precedent to Closing.


 


8.1.
General Conditions. The respective obligations of Buyer and Seller to effect the Closing of the transactions contemplated
hereby are subject to the fulfillment, prior to or at the Closing, of each of the following conditions:


 


a)
Legal Proceedings. No Governmental Body shall have enacted, issued, promulgated, enforced or entered any statute, rule,
regulation, non-appealable judgment, decree, injunction or other order which is in effect on the Closing Date and which prohibits,
restricts or delays consummation of the transactions contemplated by this Agreement or the Collateral Agreements and there shall
be no pending lawsuit, claim or legal action relating to the transactions contemplated by this Agreement or any of the Collateral
Agreements which seeks to prohibit or restrict the transactions contemplated by this Agreement.


 


8.2.
Conditions Precedent to Buyer’s Obligations. The obligations of Buyer to effect the Closing of the transactions contemplated
hereby are subject to the fulfillment, prior to or at the Closing, of each of the following conditions, any of which may be waived
in writing by Buyer:


 


a)
Representations and Warranties of Seller True and Correct at Closing. The representations and warranties of Seller contained
in this Agreement or in any certificate delivered pursuant to the provisions of this Agreement that are qualified by the words
“material,” “Seller Material Adverse Effect” and similar phrases shall be true and correct in all respects
at and as of date of this Agreement and at and as of the Closing Date, except to the extent that such representations and warranties
are made as of a specified date, in which case such representations and warranties shall be true and correct in all respects as
of the specified date, and the representations and warranties of Seller contained in this Agreement or in any Schedule, certificate
or document delivered pursuant to the provisions hereof that are not so qualified shall be true and correct in all material respects
at and as of date of this Agreement and at and as of the Closing Date, except to the extent that such representations and warranties
are made as of a specified date, in which case such representations and warranties shall be true and correct in all material respects
as of the specified date.


 


b)
Performance by Seller. Seller shall have delivered all of the documents required under Section 7.1 and shall have otherwise
performed in all material respects all obligations and agreements and complied in all material respects with all covenants required
by this Agreement to be performed or complied with by it prior to or at the Closing, including executing the Collateral Agreements.


 


c)
Seller Material Adverse Effect. There shall not have occurred a Seller Material Adverse Effect from the date hereof to
the Closing Date.


 


8.3.
Conditions Precedent to Seller’s Obligations. The obligations of Seller to effect the Closing of the transactions
contemplated hereby are subject to the fulfillment, prior to or at the Closing, of each of the following conditions, any of which
may be waived in writing by Seller:


 


a)
Representations and Warranties of Buyer True and Correct at Closing. The representations and warranties of Buyer contained
in this Agreement or in any certificate delivered pursuant to the provisions of this Agreement that are qualified by the words
“material,” “material adverse effect” and similar phrases shall be true and correct in all respects at
and as of the date of this Agreement and at and as of the Closing Date as though such representations and warranties were made
at and as of the Closing Date, except to the extent that such representations and warranties are made as of a specified date,
in which case such representations and warranties shall be true and correct in all respects as of the specified date, and the
representations and warranties of Buyer contained in this Agreement or in any Schedule, certificate or document delivered pursuant
to the provisions hereof or in connection with the transactions contemplated hereby that are not so qualified shall be true and
correct in all material respects at and as of the date of this Agreement and at and as of the Closing Date as though such representations
and warranties were made at and as of the Closing Date, except to the extent that such representations and warranties are made
as of a specified date, in which case such representations and warranties shall be true and correct in all material respects as
of the specified date.


 




    	 	33	 



     


    

 


b)
Performance by Buyer. Buyer and/or the Buyer Designee shall have delivered all of the documents required under Section
7.2 and shall have otherwise performed in all material respects all obligations and agreements and complied in all material respects
with all covenants required by this Agreement to be performed or complied with by it prior to or at the Closing, including executing
the Collateral Agreements.


 


9.
Indemnification. The rights and obligations of Buyer and Seller under this Agreement shall be subject to the following
terms and conditions:


 


9.1.
Effect of Investigation. The right to indemnification or other remedy of Buyer or its Affiliates hereunder based on the
representations, warranties, covenants and agreements herein will not be affected by any investigation conducted with respect
to, or any knowledge acquired (or capable of being acquired) at any time, by the Buyer or its Affiliates, whether before or after
the execution and delivery of this Agreement or the Closing, with respect to the accuracy or inaccuracy of or compliance with,
any such representation, warranty, covenant or agreement.


 


9.2.
Survival of Representations and Warranties. The representations and warranties of Buyer and Seller contained in this Agreement
shall survive the Closing solely for purposes of this Article 9 and such representations and warranties shall terminate at the
close of business on the date that is eighteen (18) months after the Closing Date; provided, however, that (i) the
representations and warranties in Section 3.7(d) with respect to environmental matters and the representations and warranties
relating to Tax and ERISA matters shall survive the Closing and shall terminate at the close of business on the 120th day
following the expiration of the applicable statute of limitations with respect to the environmental, Tax or ERISA liabilities
in question (giving effect to any waiver, mitigation or extension thereof), (ii) the representations and warranties in Section
3.13 shall terminate at the close of business on the date that is twenty-four (24) months after the Closing Date and (iii) the
representations and warranties in Section 3.3 with respect to authorization and Section 3.5(a) with respect to title shall survive
indefinitely. Neither Seller nor Buyer shall have any liability whatsoever with respect to any such representations or warranties
after the applicable expiration date; provided, however, that, notwithstanding anything herein to the contrary,
the obligations of Buyer or Seller to indemnify and hold harmless any Indemnified Party shall not terminate with respect to any
claim or right to indemnification as to which such Indemnified Party shall have made in good faith and with reasonable specificity
under the circumstances before the applicable expiration date, provided notice to the Indemnifying Party in accordance with this
Article 9 and, in such case, such claim or right to indemnification shall survive indefinitely until such claim has been finally
resolved.


 


9.3.
General Agreement to Indemnify.


 


a)
Seller and Buyer shall indemnify, defend and hold harmless the other party hereto, and Affiliates thereof, and any director, officer,
employee or agent of such other party or Affiliates thereof (each an “Indemnified Party”) from and against
any and all claims, actions, suits, proceedings, liabilities, obligations, losses, and damages, amounts paid in settlement, interest,
costs and expenses (including reasonable attorney’s fees, court costs and other out-of-pocket expenses incurred in investigating,
preparing or defending the foregoing) (collectively, “Losses”) incurred or suffered by any Indemnified
Party to the extent that the Losses arise by reason of, or result from (i) subject to Section 9.2, any breach or any failure of
any representation or warranty of such party contained in this Agreement or any certificate delivered in connection with this
Agreement to have been true when made and at and as of the Closing Date, or (ii) the breach by such party of any covenant or agreement
of such party contained in this Agreement to the extent not waived by the other party.


 




    	 	34	 



     


    

 


b)
Seller further agrees to indemnify and hold harmless Buyer and Affiliates thereof, and any director, officer, employee or agent
of Buyer or Affiliates thereof (each a “Buyer Indemnified Party”) from and against any Losses incurred
by Buyer or any Buyer Indemnified Party arising out of, resulting from, or relating to: (i) the Excluded Liabilities; (ii) Buyer’s
waiver of, or noncompliance with, any applicable Bulk Sales Laws; and (iii) any claim, demand or liability for Taxes relating
to, pertaining to, or arising out of the Seller Business or the Purchased Assets for any Pre-Closing Tax Period.


 


c)
Buyer further agrees to indemnify and hold harmless Seller and Affiliates thereof, and any director, officer, employee or agent
of Seller or Affiliates thereof (each a “Seller Indemnified Party”) from and against any Losses incurred
by Seller or any Seller Indemnified Party arising out of, resulting from, or relating to: (i) any failure of Buyer to discharge
any of the Assumed Liabilities; and (ii) any claim, demand or liability for Taxes relating to, pertaining to, or arising out of
the Seller Business or the Purchased Assets for any Post-Closing Tax Period.


 


d)
Amounts payable in respect of the parties’ indemnification obligations shall be treated as an adjustment to the Purchase
Price for Tax purposes and shall be treated as such by Buyer and Seller on their Returns to the extent permitted by law. Whether
or not the Indemnifying Party (as defined below) chooses to defend or prosecute any Third-Party Claim (as defined below), both
parties hereto shall cooperate in the defense or prosecution thereof and shall furnish such records, information and testimony,
and attend such conferences, discovery proceedings, hearings, trials and appeals, as may be reasonably requested in connection
therewith or as provided in Section 5.1.


 


e)
The indemnification obligations of each party hereto under this Article 9 shall inure to the benefit of the directors, officers
and Affiliates of the other party hereto on the same terms as are applicable to such other party.


 


f)
The Indemnifying Party’s liability for all claims made under Section 9.3(a)(i) shall be subject to the following limitations:
(i) the Indemnifying Party shall have no liability for such claims until the aggregate amount of the Losses incurred shall exceed
one percent (1%) of the Purchase Price (the “Threshold Amount”) in which case the Indemnifying Party
shall be liable for the entire amount of such Losses (subject to the limit set forth in clause (ii)) and not just the amount of
the Losses that exceeds the Threshold Amount, and (ii) the Indemnifying Party’s aggregate liability for all such claims
shall not exceed the Purchase Price (the “Cap Amount”); provided, however, in no event
shall the limitations in clauses (i) and (ii) of this Section 9.3(f) apply to (a) Losses resulting from fraud or intentional misrepresentation
or (b) Losses arising out of breaches of the representations and warranties set forth in Sections 3.3, 3.5(a) and 3.20. The Indemnified
Party may not make a claim for indemnification under Section 9.3(a)(i) after the expiration of the applicable survival period
specified in Section 9.2; provided, however, that, notwithstanding anything herein to the contrary, so long as such
Indemnified Party shall have, before the applicable expiration date, provided notice of a claim (made in good faith and with reasonable
specificity under the circumstances) before the applicable expiration date to the Indemnifying Party in accordance with this Article
9, then, in such case, such claim or right to indemnification shall survive indefinitely until such claim has been finally resolved.
Notwithstanding anything herein to the contrary, for purposes of this Article 9, all “materiality”, “Seller
Material Adverse Effect” and similar qualifications in the representations and warranties contained in this Agreement (or
contained, incorporated or referenced in any certificate delivered pursuant to this Agreement) shall be disregarded for purposes
of calculating the amount of such Losses, but shall not be disregarded for purposes of determining whether a breach of any such
representation or warranty contained in this Agreement (or contained, incorporated or referenced in any certificate delivered
pursuant to this Agreement) has occurred.


 


g)
The indemnification provided in this Article 9 shall be the sole and exclusive remedy after the Closing Date for damages available
to the parties to this Agreement for breach of any of the terms, conditions, covenants, representations or warranties contained
herein or any right, claim or action arising from the transactions contemplated by this Agreement; provided, however,
this exclusive remedy for damages does not preclude a party from bringing an action for (i) specific performance or other equitable
remedy to require a party to perform its obligations under this Agreement or any Collateral Agreement or (ii) fraud or intentional
misrepresentation.


 




    	 	35	 



     


    

 


h)
Notwithstanding anything contained in this Agreement to the contrary, no party shall be liable to the other party for indirect,
special, punitive, exemplary or consequential loss or damage arising out of this Agreement, provided, however, the
foregoing shall not be construed to preclude recovery by the Indemnified Party in respect of Losses directly incurred from Third
Party Claims. Both parties shall mitigate their damages.


 


i)
The rights to indemnification under this Section 9.3 shall not be subject to set-off for any claim by the Indemnifying Party against
any Indemnified Party, whether or not arising from the same event giving rise to such Indemnified Party’s claim for indemnification.


 


9.4.
General Procedures for Indemnification.


 


a)
The Indemnified Party seeking indemnification under this Agreement shall promptly notify the party against whom indemnification
is sought (the “Indemnifying Party”) of the assertion of any claim, or the commencement of any action,
suit or proceeding by any Third Party, in respect of which indemnity may be sought hereunder and shall give the Indemnifying Party
such information with respect thereto as the Indemnifying Party may reasonably request, but failure to give such notice shall
not relieve the Indemnifying Party of any liability hereunder (unless and to the extent that the Indemnifying Party has suffered
material prejudice by such failure). If the Indemnifying Party acknowledges in writing its obligation to indemnify the Indemnified
Party, then the Indemnifying Party shall have the right, but not the obligation, exercisable by written notice to the Indemnified
Party within twenty (20) days of receipt of notice from the Indemnified Party of the commencement of or assertion of any claim,
action, suit or proceeding by a Third Party in respect of which indemnity may be sought hereunder (a “Third-Party
Claim”), to assume the defense of such Third-Party Claim only if such Third-Party Claim (i) involves (and continues
to involve) solely money damages or (ii) involves (and continues to involve) claims for both money damages and equitable relief
against the Indemnified Party that cannot be severed, where the claims for money damages are the primary claims asserted by the
Third Party and the claims for equitable relief are incidental to the claims for money damages; provided further, that
in the case where Seller is the Indemnifying Party, as additional requirements in addition to the foregoing, the Seller shall
only be permitted to assume the defense of such Third-Party Claim in the event that the monetary damages that are sought (or that
would reasonably be expected to be sought) in connection with such Third-Party Claim do not exceed the Cap Amount or such lesser
remaining amount after deducting therefrom the amount of all other previously paid and outstanding unpaid and/or unresolved claims
pursuant to this Article 9. If the Indemnifying Party has not acknowledged in writing its obligation to indemnify the Indemnified
Party, then the Indemnified Party shall have the right to assume and control the defense against such Third-Party Claim. In the
event that any party exercises its right to undertake any such defense against any Third Party Claim as provided above, then the
other parties shall cooperate in such defense and make available at such cooperating party expense all witnesses, pertinent records,
materials and information in such party’s possession and control relating thereto as is reasonably required to by the party
conducting the defense.


 


b)
The Indemnifying Party or the Indemnified Party, as the case may be, shall have the right to participate in (but not control),
at its own expense, the defense of any Third-Party Claim that the other is defending, as provided in this Agreement.


 


c)
The Indemnifying Party, if it has assumed the defense of any Third-Party Claim as provided in this Agreement, shall not consent
to a settlement of, or the entry of any judgment arising from, any such Third-Party Claim without the Indemnified Party’s
prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed) unless such settlement or judgment
relates solely to monetary damages and, in addition, in the case where Seller is the Indemnifying Party, such monetary damages
do not exceed the Cap Amount or such lesser remaining amount after deducting therefrom the amount of all other previously paid
and outstanding unpaid and/or unresolved claims pursuant to this Article 9. The Indemnifying Party shall not, without the Indemnified
Party’s prior written consent, enter into any compromise or settlement that (i) commits the Indemnified Party to take, or
to forbear to take, any action, or (ii) does not provide for a complete release by such Third Party of the Indemnified Party.
The Indemnified Party shall have the sole and exclusive right to settle any Third-Party Claim, on such terms and conditions as
it deems reasonably appropriate, to the extent such Third-Party Claim involves equitable or other non-monetary relief against
the Indemnified Party, and shall have the right to settle any Third-Party Claim involving money damages for which the Indemnifying
Party has not assumed the defense pursuant to this Section 9.4 with the written consent of the Indemnifying Party, which consent
shall not be unreasonably withheld, conditioned or delayed.


 




    	 	36	 



     


    

 


d)
In the event an Indemnified Party shall claim a right to payment pursuant to this Agreement, such Indemnified Party shall send
written notice of such claim to the Indemnifying Party; but failure to give such notice shall not relieve the Indemnifying Party
of any liability hereunder (unless and to the extent that the Indemnifying Party has suffered material prejudice by such failure).
Such notice shall specify the basis for such claim, the amount thereof, if known, and the method of computation thereof, all with
reasonable particularity and shall contain a reference to the provisions of this Agreement in respect of which such a claim shall
be incurred. Such notice shall be given promptly after the Indemnified Party becomes aware of the basis for each such a claim.
The Indemnifying Party shall, within thirty (30) days after receipt of such notice of an indemnified Loss, and subject to the
limitations set forth in Section 9.3, (i) pay or cause to be paid to the Indemnified Party the amount of such Loss specified in
such notice which the Indemnifying Party does not contest, or (ii) notify the Indemnified Party if it wishes to contest the existence
or amount of part or all of such a Loss by stating with particularity the basis upon which it contests the existence or amount
thereof.


 


10.
Miscellaneous Provisions.


 


10.1.
Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given
upon receipt if (i) mailed by certified or registered mail, return receipt requested, (ii) sent by Federal Express or other express
carrier, fee prepaid, (iii) sent via electronic mail with receipt confirmed, or (iv) delivered personally, addressed as follows
or to such other address or addresses of which the respective party shall have notified the other.


 


	 	If
    to Seller, to:	 	Complete
                                         Cutting & Welding Supplies, Inc.

        Attn:
        Guillermo Gallardo

        806
        E Holt Ave

        Pomona,
        CA 91767

	 	 	 	United
    States of America
	 	 	 	E-mail:
    guillermo@completewelding.com
	 	 	 	 
	 	If
    to Buyer, to:	 	Taronis
                                         Technologies, Inc.

        Attention:
        General Counsel

        11885
        44th Street North

	 	 	 	Clearwater,
    FL 33762
	 	 	 	United
    States of America
	 	 	 	E-mail:
    tylerwilson@taronistech.com


 


10.2.
Expenses. Except as otherwise provided herein, each party to this Agreement will bear all of the fees, costs and expenses
incurred by it in connection with the transactions contemplated hereby, whether or not such transactions are consummated.


 


10.3.
Entire Agreement; Modification. The agreement of the parties, which consists of this Agreement, the Schedules and Exhibits
hereto and the documents referred to herein, sets forth the entire agreement and understanding between the parties and supersedes
any prior agreement or understanding, written or oral, relating to the subject matter of this Agreement, including the Confidentiality
Agreement. No amendment, supplement, modification or waiver of this Agreement shall be binding unless executed in writing by the
party to be bound thereby, and in accordance with Section 10.3.


 




    	 	37	 



     


    

 


10.4.
Assignment; Binding Effect; Severability. This Agreement may not be assigned by any party hereto without the other party’s
written consent; provided, that Buyer may transfer or assign in whole or in part to a Buyer Designee its right to purchase all
or a portion of the Purchased Assets, but no such transfer or assignment will relieve Buyer of its obligations hereunder. This
Agreement shall be binding upon and inure to the benefit of and be enforceable by the successors, legal representatives and permitted
assigns of each party hereto. The provisions of this Agreement are severable, and in the event that any one or more provisions
are deemed illegal or unenforceable the remaining provisions shall remain in full force and effect unless the deletion of such
provision shall cause this Agreement to become materially adverse to either party, in which event the parties shall use reasonable
commercial efforts to arrive at an accommodation that best preserves for the parties the benefits and obligations of the offending
provision.


 


10.5.
Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF DELAWARE APPLICABLE TO CONTRACTS PERFORMED ENTIRELY WITHIN THAT STATE, IRRESPECTIVE OF THE CHOICE OF LAWS PRINCIPLES OF THE
STATE OF DELAWARE, AS TO ALL MATTERS, INCLUDING MATTERS OF VALIDITY, CONSTRUCTION, EFFECT, ENFORCEABILITY, PERFORMANCE AND REMEDIES.


 


10.6.
Consent to Jurisdiction. Each of Buyer and Seller irrevocably submits to the exclusive jurisdiction of (i) the Supreme
Court of the State of California, Los Angeles County and (ii) the United States District Court for the Central District of California,
Western Division, for the purposes of any suit, action or other proceeding arising out of this Agreement or any transaction contemplated
hereby (and each agrees that no such action, suit or proceeding relating to this Agreement or any transaction contemplated hereby
shall be brought by it or any of its Affiliates except in such courts). Buyer further agrees, and Seller further agrees, that
service of any process, summons, notice or document by U.S. registered mail to such Person’s respective address set forth
in Section 10.1 above shall be effective service of process for any action, suit or proceeding in California with respect to any
matters to which it has submitted to jurisdiction as set forth above in the immediately preceding sentence. Each of Buyer and
Seller irrevocably and unconditionally waives (and agrees not to plead or claim), any objection to the laying of venue of any
action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in (i) the Supreme Court of the
State of California or (ii) the United States District Court for the Central District of California or that any such action, suit
or proceeding brought in any such court has been brought in an inconvenient forum.


 


10.7.
Waiver of Jury Trial. Each party hereby waives, and agrees to cause each of its Affiliates to waive, to the fullest extent
permitted by applicable Law, any right it may have to a trial by jury in respect of any litigation directly or indirectly arising
out of, under or in connection with this Agreement. Each party (i) certifies that no representative of any other party has represented,
expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and
(ii) acknowledges that it and the other parties hereto have been induced to enter into this Agreement by, among other things,
the mutual waivers and certifications in this Section 10.7.


 


10.8.
Execution in Counterparts. This Agreement may be executed in any number of counterparts, including by electronic signature,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.


 


10.9.
Public Announcement. Seller and Buyer shall prepare a release announcing the transaction contemplated hereby. Except for
such press release, neither Seller nor Buyer shall, without the approval of the other, make any press release or other announcement
concerning the existence of this Agreement or the terms of the transactions contemplated by this Agreement, except as and to the
extent that any such party shall be so obligated by Law, in which case the other party shall be advised and the parties shall
use their reasonable commercial efforts to cause a mutually agreeable release or announcement to be issued; provided, however,
that the foregoing shall not preclude, or require notification to the other Party of, communications or disclosures necessary
to comply with accounting, stock exchange or federal securities or labor relations Law disclosure obligations.


 




    	 	38	 



     


    

 


10.10.
No Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall (a) confer on any
Person other than the Parties and their respective successors or assigns (other than the right to indemnification of Indemnified
Parties hereunder) any rights (including Third Party beneficiary rights), remedies, obligations or liabilities under or by reason
of this Agreement or (b) constitute the parties hereto as partners or as participants in a joint venture. This Agreement shall
not provide Third Parties with any remedy, claim, liability, reimbursement, cause of action or other right in excess of those
existing without reference to the terms of this Agreement. Nothing in this Agreement shall be construed as giving to any Business
Employee, or any other individual, any right or entitlement to employment or continued employment or any right or entitlement
under any Benefit Plan, policy or procedure maintained by Seller, except as expressly provided in such Benefit Plan, policy or
procedure. No Third Party shall have any rights under Section 502, 503 or 504 of ERISA, any comparable applicable Law of any other
jurisdiction, or any regulations thereunder because of this Agreement that would not otherwise exist without reference to this
Agreement. No Third Party shall have any right, independent of any right that exists irrespective of this Agreement, under or
granted by this Agreement, to bring any suit at Law or equity for any matter governed by or subject to the provisions of this
Agreement.


 


11.
Amendment and Waiver.


 


11.1.
Reserved.


 


11.2.
Amendment and Waiver. The Agreement may be amended with respect to any provision contained herein, but such amendment or
waiver shall be evidenced by a written instrument duly executed on behalf of each of the parties hereto by their duly authorized
officer or employee. The failure of either party to enforce at any time any provision of this Agreement shall not be construed
to be a waiver of such provision nor shall it in any way affect the validity of this Agreement or the right of such party thereafter
to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any
other or subsequent breach.


 


11.3.
Attorney Review. The Seller and Buyer acknowledge that this Agreement will have important legal consequences and imposes
significant requirement on each party. Accordingly, the Buyer and Seller acknowledge that they have considered retaining or have
retained legal counsel to review this Agreement and that each party has been provided with adequate time to obtain such review.


 


[Signature
Page Follows]


 


[The
Remainder of This Page is Intentionally Blank]


 




    	 	39	 



     


    

 





IN
WITNESS WHEREOF, each party has caused this Agreement to be duly executed on its behalf by its duly authorized officer as
of the date first written above.


 


	 	“SELLER”
    
	 	 
	 	COMPLETE
    CUTTING & WELDING SUPPLIES, INC.
	 	 	 
	 	By:
     	/s/
    Guillermo Gallardo
	 	Name:
	Guillermo
    Gallardo
	 	Title:	President
    


 




    	 	40	 



     


    

 


[Seller
Signature Page to Asset Purchase Agreement]


 


IN
WITNESS WHEREOF, each party has caused this Agreement to be duly executed on its behalf by its duly authorized officer as
of the date first written above.


 


	 	“BUYER”
	 	 
	 	TARONIS
    TECHNOLOGIES, INC.
	 	 	 
	 	By:
     	/s/
    Scott Mahoney
	 	Name:
    	Scott
    Mahoney
	 	Title:	Chief
    Executive Officer


 




    	 	41	 



     


    

 


[Buyer
Signature Page to Asset Purchase Agreement]


 


EXHIBIT
A


 


ASSIGNMENT
AND BILL OF SALE AND ASSUMPTION AGREEMENT


 


THIS
ASSIGNMENT AND BILL OF SALE AND ASSUMPTION AGREEMENT (this “Bill of Sale”) is made as of February 22, 2019
by and between COMPLETE CUTTING & WELDING SUPPLIES, INC., a California corporation (the “Seller”)
and TARONIS TECHNOLOGIES, INC., a Delaware corporation and MAGNEGAS WELDING SUPPLY – COMPLETE LA, LLC, a California
limited liability company as its Buyer Designee (collectively, “Buyer”).


 


1.
Definitions. Except as otherwise defined herein, capitalized terms used herein shall have the meanings as set forth in
that certain Asset Purchase Agreement dated as of February 22, 2019 (the “Asset Purchase Agreement”), by and
among Seller and Buyer.


 


2.
Sale of Assets. Subject to the terms, conditions and limitations set forth in the Asset Purchase Agreement, Seller, as
of the Closing Date, for valuable consideration, the receipt of which is hereby acknowledged, hereby sells, assigns, grants and
conveys all of Seller’s right, title and interest in and to all of the Purchased Assets, excluding the Excluded Assets and
Excluded Liabilities, to Buyer’s Designee, its successors and assigns, to its and their own use and benefit, forever.


 


3.
Assumption. Subject to the terms, conditions and limitations set forth in the Asset Purchase Agreement, Seller hereby assigns
the Assumed Liabilities to Buyer’s Designee, and Buyer’s Designee hereby accepts such assignment and assumes and agrees
to observe and perform all of the duties, obligations, terms, provisions and covenants of, and to pay and discharge all of, the
Assumed Liabilities.


 


4.
Miscellaneous.


 


4.1.
Seller and Buyer hereby agree that they will, from time to time, execute and deliver such further instruments of conveyance and
transfer as may be reasonably required to implement and effect (i) the sale of the Purchased Assets pursuant to the Asset Purchase
Agreement, and (ii) the assumption of the Assumed Liabilities pursuant to the Asset Purchase Agreement.


 


4.2.
This Bill of Sale has been executed to implement the Asset Purchase Agreement and nothing contained herein shall be deemed or
construed to impair or alter any of the provisions of the Asset Purchase Agreement.


 


4.3.
This Bill of Sale is executed and delivered in, and shall be construed and enforced in accordance with the laws of the State of
Delaware, without reference to conflict of law provisions, and shall be binding upon and shall inure to the benefit of the respective
successors and assigns of the parties to this Bill of Sale.


 


[Signature
Page Follows]


 


[The
Remainder of This Page is Intentionally Blank]


 




    	 	42	 



     


    

 


IN
WITNESS WHEREOF, each party has caused this Bill of Sale to be duly executed on its behalf by its duly authorized officer
as of the date first written above.


 


	 	“SELLER”
	 	COMPLETE
    CUTTING & WELDING SUPPLIES, INC.
	 	 	 
	 	By:
     	/s/
    Guillermo Gallardo
	 	Name:
    	Guillermo
    Gallardo 
	 	Title:
	President 



 


	 	“BUYER”
    
	 	TARONIS
    TECHNOLOGIES, INC.
	 	 	 
	 	By:
     	/s/
    Scott Mahoney
	 	Name:
    	Scott
    Mahoney       
	 	Title:	Chief
    Executive Officer


 


	 	“BUYER
DESIGNEE”
	 	MAGNEGAS
    WELDING SUPPLY – COMPLETE LA, LLC
	 	 	 
	 	By:
     	/s/
Scott Mahoney
	 	Name:
    	Scott
    Mahoney
	 	Title:
    	Authorized
    Signatory 


 






    	 	43	 



     


    

 


EXHIBIT
B


 


ASSIGNMENT,
ASSUMPTION AND AMENDMENT OF LEASE


 


THIS
ASSIGNMENT, ASSUMPTION AND AMENDMENT OF LEASE (this “Agreement”) is made and as of [            ],
2019 (the “Effective Date”), by and between COMPLETE CUTTING & WELDING SUPPLIES, INC., a California
corporation (“Assignor”), and TARONIS TECHNOLOGIES, INC., a Delaware corporation, MAGNEGAS REAL ESTATE
HOLDING, LLC, a Delaware limited liability company (collectively, “Assignee”).


 


RECITALS:


 


WHEREAS,
Assignor leases Suite No. [            ], consisting of approximately
[            ] rentable square feet, in the building known as [address],
pursuant to that certain Lease Agreement dated as of [            ],
as (the “Lease”) between [            ], a [            ]
[entity type] (“Landlord”), as landlord, and Assignor, as tenant (sometimes herein “Tenant”);
and


 


WHEREAS,
Assignor has agreed to assign its interest in the Lease to the Assignee and Assignee has agreed to assume and perform all of the
obligations and liabilities of Assignor prior to, on or after the Effective Date with respect to the Lease.


 


WHEREAS,
the Assignor and Landlord acknowledge and consents to the Assignee designating its wholly owned subsidiary MagneGas Real Estate
Holdings, LLC, a Delaware limited liability company (“Assignee Designee”) as the party assuming the Lease on
behalf of the Assignee. Taronis Technologies, Inc. will serve as a corporate guarantor as needed.


 


NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound, the parties hereby agree as follows:


 


1.
Assignor hereby assigns to Assignee Designee all of Assignor’s right, title and interest in, to and under the Lease, including
without limitation, Assignor’s interest in any security deposit being held by Landlord. Assignee hereby accepts such assignment
and assumes all of the Assignor’s obligations under the Lease arising prior to, on or after the Effective Date and agrees
to attorn to Landlord from and after the Effective Date (“Assigned Interest”). Landlord agrees that Assignor
shall be released from the obligation to perform obligations of Tenant under the Lease first arising after the Effective Date.
In no event will Assignor be released from any Tenant obligations or liability under the Lease that arose or accrued on or before
the Effective Date.


 


2.
Assignee and Assignee Designee agree to indemnify Assignor and hold Assignor harmless from and against any and all claims, liens,
damages, demands, causes of action, liabilities, lawsuits, judgments, losses, costs and expenses (including, but not limited to,
reasonable attorneys’ fees and expenses) asserted against or incurred by Assignor by reason of or arising out of any failure
by Assignee or Assignee Designee to perform or observe the obligations, covenants, terms and conditions of tenant under the Lease
from and after the Effective Date.


 




    	 	44	 



     


    

 


3.
Assignor agrees to indemnify Assignee and Assignee Designee and hold Assignee and Assignee Designee harmless from and against
any and all claims, liens, damages, demands, causes of action, liabilities, lawsuits, judgments, losses, costs and expenses (including,
but not limited to, reasonable attorneys’ fees and expenses) asserted against or incurred by Assignee by reason of or arising
out of any failure by Assignor to perform or observe the obligations, covenants, terms and conditions of tenant under the Lease
prior to the Effective Date.


 


4.
Assignee acknowledges that it has inspected the Premises prior to the date hereof, and hereby agrees to take the Premises in the
condition existing as of the date hereof, and that, to the extent that Assignee is able to determine from a walk-through inspection,
such condition is suitable and fit for its intended usage.


 


5.
Assignor and Assignee acknowledge and agree that Landlord shall continue to hold the Security Deposit in the sum of [$                 ]
(“Security Deposit Amount”) now held by Landlord pursuant to Section [ ] of the Lease to secure the faithful
performance of the Lease by both Assignor and Assignee and Assignee Designee. Upon termination or expiration of the Lease, provided
Landlord is not otherwise entitled to retain the Security Deposit, Assignor and Assignee and Assignee Designee agree that the
Security Deposit shall be refunded to Assignee or Assignee Designee.


 


6.
Assignee shall promptly provide Landlord with evidence of insurance as required under the Lease.


 


7.
Legal notices given to Assignee Designee pursuant to the Lease shall be addressed as follows:


 


MagneGas
Real Estate Holdings, LLC


Attn:
General Counsel


11885
44th Street North


Clearwater,
FL 33762


 


8.
Assignor and Assignee and Assignee Designee hereby represent, warrant and agree that: (1) to the knowledge of Assignor and Assignee
and Assignee Designee, there exists no breach, default or event of default by Landlord under the Lease, as amended hereby, or
any event or condition which, with notice or passage of time or both, would constitute a breach, default or event of default by
Landlord under the Lease, as amended hereby; (2) the Lease continues to be a legal, valid and binding agreement and obligation
of Assignor and Assignee and Assignee Designee; and (3) to the knowledge of Assignor and Assignee and Assignee Designee, neither
Assignor or Assignee or Assignee Designee has any current offset or defense to its performance or obligations under the Lease.
Assignor and Assignee and Assignee Designee hereby waive and release all known demands, charges, claims, accounts or causes of
action of any nature against Landlord or Landlord’s employees or agents that have arisen out of or in connection with the
Lease on or before the Effective Date.


 


9.
Landlord represents to its actual knowledge as of the Effective Date that there exists no breach, default or event of default
by Assignor under the Lease, as amended hereby, or any event or condition which, with notice or passage of time or both, would
constitute a breach, default or event of default by Assignor under the Lease, as amended hereby.


 


10.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
This Agreement shall be governed by and construed in accordance with the laws of the State of California. This Agreement may be
executed in any number of counterparts and by each party on separate counterparts, and all such counterparts shall constitute
one and the same instrument. The above recitals are true and correct and constitute part of this Agreement. Capitalized terms
utilized herein shall have the same meaning ascribed to them in the Lease, except as otherwise provided in this Agreement.


 


[Signature
Page Follows]


 


[The
Remainder of This Page is Intentionally Blank]


 




    	 	45	 



     


    

 


IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first written above.


 


	 	ASSIGNOR:
	 	 
	 	COMPLETE
    CUTTING & WELDING SUPPLY, INC.
	 	 	 
	 	By:
     	 
	 	Name:
    	Guillermo
    Gallardo 
	 	Title:
	President
    


 


	 	ASSIGNEE:
	 	 
	 	TARONIS
    TECHNOLOGIES 
	 	 	 
	 	By:
     	 
	 	Name:
    	Scott
    Mahoney     
	 	Title:	Chief
    Executive Officer 


 


	 	ASSIGNEE
    DESIGNEE:
	 	 
	 	MAGNEGAS
    REAL ESTATE HOLDINGS, LLC 
	 	 	 
	 	By:
     	 
	 	Name:
    	Scott
    Mahoney 
	 	Title:
     	Authorized
    Signatory


 




    	 	46	 



     


    

 


CONSENT
AND AGREEMENT OF LANDLORD


 


[to
Assignment, Assumption and Amendment of Lease pertaining to Premises known as [         ]demised
pursuant to that certain Lease Agreement dated as of [         ].]


 


Without
prejudice to its rights under the Lease, and simultaneously with execution and delivery of this Agreement, the Landlord hereby
consents to the Assignment by the Assignor to the Assignee Designee of the Assigned Interest on the terms set forth hereinabove.
This consent shall not be construed as a consent to any future assignment or sublease of all or any portion of the Premises by
Assignor or Assignee or Assignee Designee.


 


	 	LANDLORD:
	 	 
	 	[Entity]
    
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Date:
    	[  ],
    2019


 




    	 	47	 



     


    

 


EXHIBIT
C


 


ASSIGNMENT
AND ASSUMPTION OF CONTRACT


 


THIS
ASSIGNMENT AND ASSUMPTION OF CONTRACT AGREEMENT (this “Agreement”) is made and as of February 22, 2019
(the “Effective Date”), by and between [                ]
(“Assignor”), and MAGNEGAS WELDING SUPPLY – COMLETE LA, LLC, a California limited liability company
(“Assignee”) and [                ]
(“_____________”).


RECITALS:


 


WHEREAS,
Assignor and [                  ] are
parties to that certain [Agreement] dated [                  ]
and amended from time to time (“Contract”). The original Contract is attached hereto as Exhibit
A, along with the most recent amendment thereto.


 


WHEREAS,
Assignor has agreed to assign its interest, rights, responsibilities and obligations under the Contract to the Assignee and Assignee
has agreed to assume and perform all of the obligations under the Contract, on or after the Effective Date hereof.


 


WHEREAS,
[                  ] has consented to
the assignment in accordance with provisions set forth in the Contract.


 


NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound, the parties hereby agree as follows:


 


11.
Assignor hereby assigns to Assignee all of Assignor’s right, title and interest in, to and under the Contract, including
without limitation, Assignor’s interest in any deposits being held by [                  ].
Assignee hereby accepts such assignment and assumes all of the Assignor’s obligations under the Contract arising prior to,
on or after the Effective Date and agrees to attorn to [                  ]
from and after the Effective Date (“Assigned Contract”). [                  ]
agrees that Assignor shall be released from the obligations under the Assigned Contract first arising after the Effective Date.
In no event will Assignor be released from any Contract obligations or liability under the Contract that arose or accrued on or
before the Effective Date.


 




    	 	48	 



     


    

 


12.
Assignee agrees to indemnify Assignor and hold Assignor harmless from and against any and all claims, liens, damages, demands,
causes of action, liabilities, lawsuits, judgments, losses, costs and expenses (including, but not limited to, reasonable attorneys’
fees and expenses) asserted against or incurred by Assignor by reason of or arising out of any failure by Assignee to perform
or observe the obligations, covenants, terms and conditions under the Contract from and after the Effective Date.


 


13.
Assignor agrees to indemnify Assignee and hold Assignee harmless from and against any and all claims, liens, damages, demands,
causes of action, liabilities, lawsuits, judgments, losses, costs and expenses (including, but not limited to, reasonable attorneys’
fees and expenses) asserted against or incurred by Assignee by reason of or arising out of any failure by Assignor to perform
or observe the obligations, covenants, terms and conditions under the Contract prior to the Effective Date.


 


14.
Assignor hereby represents, warrants and agrees that to the knowledge of Assignor, there exists no breach, default or event of
default by Assignor under the Contract, as amended hereby, or any event or condition which, with notice or passage of time or
both, would constitute a breach, default or event of default by Assignor under the Contract.


 


15.
[                  ] represents to its
actual knowledge as of the Effective Date that there exists no breach, default or event of default by Assignor under the Contract,
as amended hereby, or any event or condition which, with notice or passage of time or both, would constitute a breach, default
or event of default by Assignor under the Contract.


 


16.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
This Agreement shall be governed by and construed in accordance with the laws of the State of [                  ].
This Agreement may be executed in any number of counterparts and by each party on separate counterparts, and all such counterparts
shall constitute one and the same instrument. The above recitals are true and correct and constitute part of this Agreement.


 




    	 	49	 



     


    

 


IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first written above.


 


	 	ASSIGNOR:
	 	 
	 	COMPLETE
    CUTTING & WELDING SUPPLY, INC.
	 	 	 
	 	By:
     	 
	 	Name:
    	Guillermo
    Gallardo 
	 	Title:
     	Authorized
    Signatory 


 


	 	ASSIGNEE:
	 	 
	 	MAGNEGAS
    WELDING SUPPLY – COMPLETE LA, LLC 
	 	 	 
	 	By:
     	 
	 	Name:
    	Scott
    Mahoney
	 	Title:	Authorized
    Signatory 


 


	 	[                  ]:
	 	 
	 	[                  ],
    INC. 
	 	 
	 	By:
     	 
	 	Name:
    	 
	 	Title:
     	Authorized
    Signatory


 




    	 	50