# EDGAR Filing Document

**Accession Number:** 0001538217
**File Stem:** 0001493152-23-004126
**Filing Date:** 2023-2
**Character Count:** 181975
**Document Hash:** f01d61f6a089df0ab8dc192d5d4f75fb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-004126.hdr.sgml**: 20230209

**ACCESSION NUMBER**: 0001493152-23-004126

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20230203

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Termination of a Material Definitive Agreement

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Unregistered Sales of Equity Securities

**ITEM INFORMATION**: Material Modifications to Rights of Security Holders

**ITEM INFORMATION**: Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230209

**DATE AS OF CHANGE**: 20230209

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SRAX, Inc.
- **CENTRAL INDEX KEY:** 0001538217
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-ADVERTISING AGENCIES [7311]
- **IRS NUMBER:** 452925231
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37916
- **FILM NUMBER:** 23607338

**BUSINESS ADDRESS:**
- **STREET 1:** 2629 TOWNSGATE ROAD #215
- **CITY:** WESTLAKE VILLAGE
- **STATE:** CA
- **ZIP:** 91361
- **BUSINESS PHONE:** 323-694-9800

**MAIL ADDRESS:**
- **STREET 1:** 2629 TOWNSGATE ROAD #215
- **CITY:** WESTLAKE VILLAGE
- **STATE:** CA
- **ZIP:** 91361

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SOCIAL REALITY, Inc.
- **DATE OF NAME CHANGE:** 20131112

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SOCIAL REALITY
- **DATE OF NAME CHANGE:** 20111227

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported) **February 3, 2023** 

**SRAX, INC.**

*(Exact name of registrant as specified in its charter)*

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| | | |
|:---|:---|:---|
| **Delaware** | **001-37916** | **45-2925231** |
| *(State or other jurisdiction of incorporation or organization)* | *(Commission*<br> *File Number)* | *(I.R.S. Employer*<br> *Identification No.)* |

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| | |
|:---|:---|
| **2629 Townsgate Road #215, Westlake Village, CA** | **91361** |
| *(Address of principal executive offices)* | *(Zip Code)* |

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| | |
|:---|:---|
| Registrant's telephone number, including area code: | **(323) 205-6109** |

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**not applicable**

*(Former name or former address, if changed since last report)*

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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| | | |
|:---|:---|:---|
| **Title of Class** | **Trading Symbol** | **Name of Each Exchange on Which Registered** |
| **Class A Common stock** | **SRAX** | **The Nasdaq Global Market** |

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Indicate by check mark whether the registrant is an emerging growth company as defined in in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 1.01 Entry into a Material Definitive Agreement.**

*DNA Holdings, LLC Asset Acquisition*

 

Asset Purchase Agreement

 

On February 3, 2023 (the "Closing Date"), SRAX, Inc. (the "Company") entered into and consummated the transactions contemplated by the Asset Purchase Agreement (the "APA") and the related Bill of Sale and Assignment and Assumption Agreement (the "Assignment Agreement," and together with the Assignment Agreement, the "Transaction Documents") with DNA Holdings, LLC, a limited liability company formed under the laws of the Commonwealth of Puerto Rico (the "Seller"), pursuant to which, subject to the terms and conditions of the APA, the Seller sold certain assets from its advisory company that is engaged in the business of, among other things, advising entrepreneurs in connection with capital structuring, marketing, developing decentralized ecosystems and providing introductions to strategic investors (the "Business"). Specifically, pursuant to the Transaction Documents, the Company acquired certain assets of the Business (the "Purchased Assets"), including $1,000,000 in cash, crypto assets, equity investments into three private companies and a customer database from the Seller (the "Acquisition"). The Seller is managed by The Roundtable LLC, which is managed by Brock Pierce, a member of the Company's board of directors (the "Board"). The Acquisition was approved on February 3, 2023, by the Audit Committee of the Board and the Board. Mr. Pierce did not participate in discussions of the Board about whether to approve the Acquisition, and did not vote on the Acquisition at the Board meeting. In each case, it was considered that Mr. Pierce is an interested director of the Company. In each case, it also was determined, among other things, that, notwithstanding that Mr. Pierce is an interested director of the Company, the assets acquired in the Acquisition constitute fair and adequate consideration for the securities to be issued pursuant to the APA.

Pursuant to the terms of the APA, at the closing of the Acquisition (the "Closing"), in exchange for the Purchased Assets, which have an aggregate value of approximately $4,000,000 (excluding the value of the customer database, as the Company is finalizing the valuation of such asset), the Company issued and delivered to Seller (i) 1,313,127 shares of the Company's Class A common stock, par value $0.001 per share (the "Common Stock"), and (ii) 63,743 shares of the Company's newly designated class of Series B Non-Voting Convertible Preferred Stock (the "Series B Preferred Stock") convertible, subject to the receipt of Stockholder Approval (as defined below), into an aggregate of 3,059,664 shares of Common Stock (collectively, the "Upfront Shares"). In addition to the Upfront Shares, the Company delivered into escrow 54,908 shares of Series B Preferred Stock convertible, subject to receipt of Stockholder Approval and the Deferred Payment (as defined below), into 2,635,591 shares of Common Stock (the "Escrow Shares," together with the Upfront Shares, the "Acquisition Shares").

Pursuant to the APA, the Upfront Shares were issued and delivered at the Closing Date, subject to the terms of the Lock-Up Agreement (as defined below). The Escrow Shares were delivered to the Escrow Agent at the closing of the Acquisition, and the Seller received a book-entry confirmation in its name evidencing the Escrow Shares.

In accordance with applicable Nasdaq listing rules, the Company plans to obtain stockholder approval to issue the shares of Common Stock underlying the Series B Preferred Stock so that it may issue shares of Common Stock to the Seller in excess of 1,313,127 shares of Common Stock, the amount of shares equal to 4.99% of the issued and outstanding Common Stock on the Closing Date ("Stockholder Approval"). Within thirty (30) days, but not earlier than fifteen (15) business days after Stockholder Approval is obtained, the Seller will prepare and deliver to the Company a written determination, in the Seller's sole and absolute discretion, of an amount equal to or less than $2,000,000 to be paid to the Company, if any (such amount to be paid to the Company, the "Deferred Payment" and such amount that will not be paid to the Company, the "Uncollected Deferred Payment"). Within five (5) business days of the delivery of such written determination, subject and upon receipt of the Deferred Payment, the Company and the Seller will instruct the Escrow Agent to release to the Company such number of Escrow Shares based upon the shares of Common Stock underlying the Series B Preferred Stock multiplied by the quotient of (i) the outstanding Uncollected Deferred Payment divided by (ii) $2,000,000. The balance of the Escrow Shares will then be released to the Seller (the "Post-Closing Adjustment"). In the event Stockholder Approval is not received on or prior to the eighteen (18) month anniversary of the Closing, the Deferred Payment will lapse and the Escrow Shares will all be released to the Company.

Subject to certain limitations, the Company and the Seller have agreed to indemnify each other for losses arising from certain breaches of representations and covenants contained in the APA and certain other Assumed Liabilities, as applicable.

The APA also contains customary representations and warranties and covenants relating to the Acquisition. These representations, warranties, covenants and agreements were made only for purposes of the APA and as of the specific dates set forth therein. The representations and warranties have been qualified by disclosure schedules and are subject to the materiality standards set forth in the APA.

The foregoing descriptions of the APA and Assignment Agreement are not complete and are qualified in their entirety by reference to the full text of the APA and Assignment Agreement, copies of which are filed as Exhibits 2.1 and 10.1, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

Series B Preferred Stock Certificate of Designation

The powers, designations, preferences and other rights of the shares of Series B Preferred Stock are set forth in the Certificate of Designation establishing the Series B Preferred Stock (the "Certificate of Designations"), filed by the Company with the Delaware Secretary of State on February 3, 2023, in connection with the Closing. Each share of Series B Preferred Stock shall have an initial Stated Value of $48.00 per share.

*Conversion*. Each share of Series B Preferred Stock is convertible at any time at the option of the holder into shares of Common Stock, provided, however, that if the Company has not obtained Stockholder Approval, then the holder may not convert any shares of Series B Preferred Stock. The initial conversion price is $1.00 per share of Common Stock, subject to appropriate adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations and reclassifications, and other similar events affecting the Common Stock.

*Voting Rights*. Except as otherwise provided in the Certificate of Designation or as otherwise required by law, the Series B Preferred Stock has no voting rights.

*Fundamental Transactions*. In the event we effect certain mergers, consolidations, sales of substantially all of our assets, tender or exchange offers, reclassifications or share exchanges in which our common stock is effectively converted into or exchanged for other securities, cash or property, we consummate a business combination in which another person acquires 50% of the outstanding shares of our common stock, or any person or group becomes the beneficial owner of 50% of the aggregate ordinary voting power represented by our issued and outstanding common stock, then, upon any subsequent conversion of the Series B Preferred Stock, the holders of the Series B Preferred Stock will have the right to receive any shares of the acquiring corporation or other consideration it would have been entitled to receive if it had been a holder of the number of shares of Common Stock then issuable upon conversion in full of the Series B Preferred Stock.

*Dividends*. Holders of Series B Preferred Stock shall be entitled to receive dividends (on an as-if-converted-to-Common-Stock basis, without regard to any conversion limitations in the Certificate of Designation) in the same form as dividends actually paid on shares of the Common Stock when, as and if such dividends are paid on shares of Common Stock.

The foregoing descriptions of the Certificate of Designation does not purport to be complete and is qualified in its entirety by reference to the full text of the Certificate of Designation, a copy of which is filed as Exhibit 3.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Lock-Up Agreement

In connection with the Acquisition, the Seller entered into a lock-up agreement (the "Lock-Up Agreement"), whereby the Seller is restricted for a period of 540 days after the Closing from certain sales or dispositions (including any pledge) of all of the Series B Preferred Stock and Common Stock held by the Seller or any securities convertible into or exercisable or exchangeable for such securities, provided, however, that the Seller may sell, in one or a series of open-market transactions, one-third (1/3) of the shares of Common Stock, including the shares of Common Stock issuable upon conversion of Series B Preferred Stock, received pursuant to the APA as of February 3, 2023: (i) after 180 days, and (ii) after 360 days. The foregoing restrictions will not apply to certain other transfers customarily excepted.

The foregoing description of the Lock-Up Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Lock-Up Agreement, a copy of which is filed as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference.

*Amendment and Waiver Agreements*

 

On February 3, 2023, the Company entered into an amendment and waiver agreement (the "Amendment and Waiver Agreement") with the ATW Fund I, L.P., ATW Master Fund II, L.P. and ATW Opportunities Master Fund II, LP (each, a "Holder" and, collectively, the "Holders"), pursuant to which the parties agreed to amend or modify certain outstanding agreements to permit the consummation of the Acquisition and avoid any potential noncompliance or events of default relating to such prior agreements. Unless otherwise noted, all capitalized terms used below but not defined herein shall have the meaning ascribed to such term in the Amendment and Waiver Agreement.

The description below of the Amendment and Waiver Agreement is not complete and is qualified in its entirety by reference to the full text of the Amendment and Waiver Agreement, a copy of which is filed as Exhibit 10.3 to this Current Report on Form 8-K and is incorporated herein by reference.

Series A Warrant

Pursuant to the Amendment and Waiver Agreement, the Company and the Holder of Series A Common Stock Purchase Warrants, issued on October 27, 2017 (the "Series A Warrant"), agreed to amend the exercise price of such warrants from $3.00 per share to $1.00 per share.

The foregoing description of the Series A Warrants is qualified in its entirety by reference to the full text of the Series A Warrants, a copy of which is filed as Exhibit 4.02 of the Current Report on Form 8-K filed with the Securities and Exchange Commission ("SEC") on October 27, 2017.

Series B Warrant

On November 29, 2018, the Company issued that certain Series B Common Stock Purchase Warrant (as amended, the "Series B Warrants") to one of the Holders.

Pursuant to the Amendment and Waiver Agreement, the Company and the Holder of Series B Common Stock Purchase Warrants (as amended, the "Series B Warrants") agreed to amend the exercise price of such warrants from $3.00 per share to $1.00 per share.

The foregoing description of the Series B Warrants is qualified in its entirety by reference to the full text of the Series B Warrants, a copy of which is filed as Exhibit 4.01 of the Current Report on Form 8-K filed with the SEC on November 30, 2018.

Debentures

Pursuant to the Amendment and Waiver Agreement, the Company and the Holder of that certain Original Issue Discount Senior Secured Convertible Debenture, issued on June 30, 2020, (the "Debenture") agreed to: (a) amend and restate the definition of "Maturity Date" of the Debenture from June 30, 2023 to June 30, 2024; (b) amend and restate the definition of "Conversion Price" in Section 4(b) of the Debenture from $2.69 to $1.00, subject to adjustment as provided for in the Debenture; and (c) waive Section 8(a)(viii) of the Debenture to avoid an Event of Default, as defined in Section 8(a)(viii) of the Debenture.

The foregoing description of the Debenture is qualified in its entirety by reference to the full text of the Debenture, a copy of which is filed as Exhibit 4.01 of the Current Report on Form 8-K filed with SEC on June 30, 2020.

Purchase Warrant

Pursuant to the Amendment and Waiver Agreement, the Company and the Holder of that certain Common Stock Purchase Warrant, issued on June 30, 2020 (as amended, the "Purchase Warrant") agreed to amend the exercise price of such warrants from $2.50 per share to $1.00 per share.

The foregoing description of the Purchase Warrant is qualified in its entirety by reference to the full text of the Purchase Warrant, a copy of which is filed as Exhibit 4.02 of the Current Report on Form 8-K filed with the SEC on June 30, 2020.

Revolving Note

Pursuant to the Amendment and Waiver Agreement, the Company and the Holder of that certain Revolving Note, issued on August 8, 2022 (the "Note") agreed to change the conversion price of such notes from $15.00 to $1.00, subject to adjustments as provided for in the Note.

The foregoing description of the Note is qualified in its entirety by reference to the full text of the Note, a copy of which is filed as Exhibit 4.01 of the Current Report on Form 8-K filed with the SEC on August 12, 2022.

Credit Agreement

Pursuant to the Amendment and Waiver Agreement, the Company and the Holder of that certain Senior Secured Revolving Credit Facility Agreement, entered into on August 8, 2022 (the "Credit Agreement") agreed to amend, modify and waive certain terms and conditions of the Credit Agreement. Specifically, the Amendment and Waiver Agreement amends the Credit Agreement to, among other things, (i) remove the obligation of the lender to advance up to an additional $3,870,000; (ii) change the due date of monthly revolving loan payments from the first day of each month to the fifteenth day of each month; (iii) add the amount of interest payments made in connection with the fourth and fifth revolving loan payment date to the balance of all amounts owed under the Credit Agreement; (iv) reduce the cash proceeds amount owed in respect to the sixth monthly revolving loan payment to the Holder from the sale of any marketable securities by the Company from 15% to 7.5% during the applicable period for such payment; (v) add that in respect to each succeeding monthly revolving loan payment following the sixth monthly revolving loan payment, the Company shall deliver to Holder an amount of cash proceeds from the sale of any marketable securities at an amount equal to the greater of (1) an amount equal to 20% of the cash proceeds from any sale of marketable securities by the Company during the applicable period for such payment and (2) the outstanding principal balance owed under the Credit Agreement as of the date of such monthly revolving loan payment, divided by the number of remaining monthly payments under the Credit Agreement; (vi) add that a loan request approval pursuant to the Credit Agreement is further subject to the outstanding principal balance under the Credit Agreement being less than $3,000,000; and (vii) add that the Company failing to become current with its filing obligations with the SEC by April 30, 2023, and thereafter failing to comply with its SEC filing obligations for another sixty (60) days beyond any filing deadline will constitute an Event of Default under the Credit Agreement.

In addition to the amendments and modifications described above, to avoid the potential breach of a negative covenant set forth on Section 9.3 of the Credit Agreement, the Holder also agreed to waive Section 9.3 of the Credit Agreement pursuant to the Amendment and Waiver Agreement.

The foregoing description of the Credit Agreement is qualified in its entirety by reference to the full text of the Credit Agreement, a copy of which is filed as Exhibit 10.01 of the Current Report on Form 8-K filed with the SEC on August 12, 2022.

**Item 1.02 Termination of a Material Definitive Agreement.**

On February 3, 2023, pursuant to the Amendment and Waiver Agreement, the Company and one of the Holders mutually terminated the registration rights agreement entered into on August 8, 2022.

**Item 2.01 Completion of Acquisition or Disposition of Assets.**

To the extent required, the information set forth above in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference in its entirety.

**Item 3.02 Unregistered Sale of Equity Securities.**

The information set forth above in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference in its entirety.

The issuance of the Acquisition Shares is intended to be exempt from registration pursuant to Section 4(a)(2) and/or Rule 506 of Regulation D of the Securities Act of 1933, as amended (the "Securities Act"), since the foregoing issuances will not involve a public offering, the recipient has confirmed that it is an "accredited investor", and the recipient will acquire the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof. The securities were offered without any general solicitation by us or our representatives. The securities will be subject to transfer restrictions, and the certificates evidencing the securities will contain an appropriate legend stating that such securities have not been registered under the Securities Act and may not be offered or sold absent registration or pursuant to an exemption therefrom.

As described above, the issuance of the Acquisition Shares, to the extent issued in full, the maximum number of shares of Common Stock issuable pursuant to the APA (without taking into account any Post-Closing Adjustment) will total 7,008,382 shares of Common Stock (when including 5,695,255 shares of Common Stock issuable upon conversion of the Series B Preferred Stock in accordance with the Certificate of Designation).

**Item 3.03 Material Modification to Rights of Security Holders.**

Pursuant to the APA, the Company issued 118,651 shares of Series B Preferred Stock in connection with the Closing. A summary of the rights, preferences and privileges of the Series B Preferred Stock is set forth in Item 1.01 above, which is incorporated herein by reference. Each share of Series B Preferred Stock has the powers, designations, preferences, and other rights of the Series B Preferred Stock as are set forth in the Certificate of Designation, a copy of which is filed as Exhibit 3.1 hereto and is incorporated herein by reference.

**Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.**

The information set forth in Item 1.01 and Item 3.03 above relating to the issuance of the Series B Preferred Stock and the Certificate of Designation is incorporated herein by reference. The Certificate of Designation establishes the powers, designations, preferences, and other rights of the Series B Preferred Stock and became effective upon filing with the Secretary of State of the State of Delaware on February 3, 2023.

**<u>Cautionary Statement Regarding Forward-Looking Statements</u>**

The information contained in this Current Report on Form 8-K contain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "intend," "may," "should," "would," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. As noted above, the issuance of the shares of Common Stock underlying the Series B Preferred Stock is subject to the receipt of Stockholder Approval, and there is no assurance that the Company will receive such approval. While the Company believes its plans, intentions and expectations reflected in those forward-looking statements are reasonable, these plans, intentions or expectations may not be achieved. The Company's actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. For information about the factors that could cause such differences, please refer to the Company's filings with the SEC. Given these uncertainties, you should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update any forward-looking statement.

**Item 9.01 Financial Statement and Exhibits.**

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| | |
|:---|:---|
| **Exhibit**<br> **No.** | <br> **Description** |
| 2.1\* | [Asset Purchase Agreement, dated February 3, 2023, by and between SRAX, Inc. and DNA Holdings, LLC.](ex2-1.htm) |
| 3.1 | [Certificate of Designation of the Series B Non-Voting Convertible Preferred Stock.](ex3-1.htm) |
| 10.1 | [Bill of Sale and Assignment and Assumption Agreement, dated February 3, 2023, by and between SRAX, Inc. and DNA Holdings, LLC.](ex10-1.htm) |
| 10.2 | [Lock-Up Agreement, dated February 3, 2023, by and between SRAX, Inc. and DNA Holdings, LLC.](ex10-2.htm) |
| 10.3 | [Amendment and Waiver Agreement, dated February 2, 2023, by and between: (i) SRAX, Inc. and the Signatories Thereto.](ex10-3.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

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\* The schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K and the Company agrees to furnish supplementally to the SEC a copy of any omitted schedules or exhibits upon request

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
| Date: | February 9, 2023 | SRAX, Inc. | SRAX, Inc. |
|  |  |  | */s/ Christopher Miglino* |
|  |  | By: | Christopher Miglino |
|  |  |  | Chief Executive Officer |

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## Exhibit 2.1

**Exhibit 2.1**

**ASSET PURCHASE AGREEMENT**

**by and between**

**SRAX, INC.**

**and**

**DNA HOLDINGS, LLC**

**DATED AS OF FEBRUARY 3, 2023**

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| | |
|:---|:---|
| Article 1. Purchase and Sale | 1 |
| Section 1.1 Purchased Assets | 1 |
| Section 1.2 Excluded Assets | 1 |
| Section 1.3 Assumed Liabilities | 1 |
| Section 1.4 Excluded Liabilities | 1 |
| Article 2. Purchase Price | 2 |
| Section 2.1 Purchase Price | 2 |
| Section 2.2 Payment of Purchase Price | 2 |
| Section 2.3 Post-Closing Adjustment | 2 |
| Section 2.4 Purchase Price Allocation | 3 |
| Section 2.5 Deliveries by the Buyer | 3 |
| Section 2.6 Deliveries by the Seller | 3 |
| Article 3. Closing | 4 |
| Section 3.1 Closing | 4 |
| Article 4. Representations and Warranties of the Seller | 4 |
| Section 4.1 Due Formation; Due Authorization; Enforceability. | 4 |
| Section 4.2 Approvals and Consents; No Conflicts | 4 |
| Section 4.3 Litigation; Orders | 5 |
| Section 4.4 Title to Purchased Assets | 5 |
| Section 4.5 No Broker | 5 |
| Section 4.6 Own Account | 5 |
| Section 4.7 Seller Status | 5 |
| Section 4.8 Experience of Seller | 6 |
| Section 4.9 General Solicitation | 6 |
| Section 4.10 Certain Transactions and Confidentiality | 6 |
| Section 4.11 No Other Representations | 6 |
| Article 5. Representations and Warranties of the Buyer | 6 |
| Section 5.1 Due Formation; Due Authorization; Enforceability | 7 |
| Section 5.2 Approvals and Consents; No Conflicts | 7 |
| Section 5.3 Litigation; Orders | 7 |
| Section 5.4 Capitalization | 7 |
| Section 5.5 SEC Filings; Financial Statements | 8 |
| Section 5.6 Access | 8 |

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i

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| | |
|:---|:---|
| Section 5.7 Reliance | 8 |
| Section 5.8 Own Account | 9 |
| Section 5.9 Buyer Status | 9 |
| Section 5.10 Experience of Buyer | 9 |
| Section 5.11 General Solicitation | 9 |
| Section 5.12 No Other Representations | 9 |
| Article 6. POST-CLOSING Covenants and Agreements | 9 |
| Section 6.1 Further Assurances | 9 |
| Section 6.2 Independent Contractors.. | 10 |
| Section 6.3 Confidentiality; Publicity. | 10 |
| Section 6.4 Transfer Taxes | 10 |
| Section 6.5 Fees and Expenses | 10 |
| Section 6.6 Shareholder Approval.. | 11 |
| Article 7. CLOSING CONDITIONS | 11 |
| Section 7.1 Mutual Conditions to Closing | 11 |
| Section 7.2 Conditions to Closing of the Buyer | 11 |
| Section 7.3 Conditions to Closing of the Seller | 12 |
| Article 8. Survival; Indemnification | 12 |
| Section 8.1 Survival of Representations and Covenants | 12 |
| Section 8.2 Survival of Claims | 12 |
| Section 8.3 Indemnification. | 12 |
| Section 8.4 Procedures for Indemnification. | 13 |
| Section 8.5 Limitations on Indemnification | 14 |
| Section 8.6 Remedies. | 14 |
| Section 8.7 Manner of Payment | 14 |
| Section 8.8 Indemnification Payments | 14 |
| Article 9. Definitions | 15 |
| Section 9.1 Certain Definitions | 15 |
| Section 9.2 Other Defined Terms | 20 |
| Article 10. Miscellaneous | 20 |
| Section 10.1 Governing Law | 20 |
| Section 10.2 Notices | 21 |
| Section 10.3 Entire Agreement; Assignment | 21 |
| Section 10.4 Waivers and Amendments | 22 |
| Section 10.5 Parties in Interest | 22 |
| Section 10.6 Dispute Resolution | 22 |
| Section 10.7 Acknowledgement | 23 |
| Section 10.8 Construction; Interpretation | 23 |
| Section 10.9 Severability | 23 |
| Section 10.10 Counterparts; Facsimile | 23 |

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ii

**ASSET PURCHASE AGREEMENT**

ASSET PURCHASE AGREEMENT, dated as of February 3, 2023 (this "<u>Agreement</u>"), by and between SRAX, Inc., a Delaware corporation (the "<u>Buyer</u>"), and DNA Holdings, LLC, a limited liability company formed under the laws of the Commonwealth of Puerto Rico (the "<u>Seller</u>"). The Seller and the Buyer may sometimes be referred to herein individually as a "<u>Party</u>" and collectively as the "<u>Parties</u>". Capitalized terms used but not otherwise defined herein have the meanings ascribed to such terms in <u>Article 9</u>.

WHEREAS, the Seller is an advisory company that is engaged in the business of, among other things, advising entrepreneurs in connection with capital structuring, marketing, developing decentralized ecosystems and providing introductions to strategic investors (the "<u>Business</u>");

WHEREAS, the Buyer desires to purchase from the Seller, and the Seller desires to sell to the Buyer, the Purchased Assets, and the Seller desires that the Buyer assume, and the Buyer has agreed to assume, the Assumed Liabilities, in each case upon the terms and subject to the conditions set forth in this Agreement and the other Transaction Documents; and

WHEREAS, on the date hereof the Parties are also entering into the Ancillary Agreements to be effective following Closing.

NOW, THEREFORE, in consideration of the premises and the mutual promises herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

**Article 1.<br> Purchase and Sale**

**Section 1.1 <u>Purchased Assets</u>**. Except as otherwise provided in Section 1.2, at the Closing, the Seller shall sell, assign, transfer and deliver to the Buyer, and the Buyer shall purchase from the Seller, all of the Seller's right, title and interest in and to all of its assets listed on Schedule 1.1 (collectively, the "<u>Purchased Assets</u>").

**Section 1.2 <u>Excluded Assets</u>**. Notwithstanding <u>Section 1.1</u>, any assets, properties or rights of the Seller, tangible and intangible, that are not described in <u>Schedule 1.1</u> are excluded from the Purchased Assets and shall be retained by Seller (collectively, the "<u>Excluded Assets</u>").

**Section 1.3 <u>Assumed Liabilities</u>**. The Buyer shall, subject to and except as provided in <u>Section 1.4</u>, assume, as of the Closing, in partial payment of the Purchase Price, all Liabilities described in <u>Schedule 1.3</u> (collectively, the "<u>Assumed Liabilities</u>").

**Section 1.4 <u>Excluded Liabilities</u>**. Notwithstanding anything in this Agreement to the contrary, the Buyer shall not assume, or in any way be liable or responsible for, any Liabilities that are not listed on <u>Schedule 1.3</u>, other than the Assumed Liabilities (collectively, the "<u>Excluded Liabilities</u>").

**Article 2.<br> Purchase Price**

**Section 2.1 <u>Purchase Price</u>**. Subject to the terms and conditions of this Agreement, the aggregate purchase price for the Purchased Assets shall be an amount equal to the Aggregate Buyer Stock Amount (the "<u>Purchase Price</u>"). In addition to payment of the Purchase Price, the Buyer shall assume, as of the Closing, the Assumed Liabilities.

**Section 2.2 <u>Payment of Purchase Price</u>**. The Purchase Price shall be payable in the following manner: at the Closing, the Buyer shall (i) issue and deliver to Seller the Upfront Shares, subject to the terms and conditions of the Lock-Up Agreement and (ii) deliver or cause to be delivered (A) to Seller, a book-entry confirmation in the name of Seller evidencing the Escrow Shares and (B) to Silvestre Law Group, P.C., as escrow agent (the "<u>Escrow Agent</u>"), a book-entry confirmation naming Escrow Agent as the holder of the Escrow Shares. Notwithstanding the foregoing, the Buyer shall not issue any shares of Buyer Common Stock, and the Seller shall not acquire any shares of Buyer Common Stock pursuant to this Agreement, to the extent that after giving effect thereto, the aggregate number of Upfront Shares and Escrow Shares that would be issued pursuant to this Agreement and the transactions contemplated hereby would be equal to or greater than a number of shares of Buyer Common Stock representing 4.99% of the shares of Buyer Common Stock outstanding on the date of this Agreement (the "<u>Exchange Cap</u>"), unless the Shareholder Approval (as defined below) is obtained to issue in excess of the Exchange Cap. In the event the aggregate number of shares of Buyer Common Stock constituting the Upfront Shares and Escrow Shares issued pursuant to this <u>Section 2.2</u> would result in the issuance of shares of Buyer Common Stock in an amount in excess of the Exchange Cap, the Buyer shall (i) issue and deliver to the Seller shares of Buyer Common Stock constituting the Upfront Shares up to the Exchange Cap, (ii) issue and deliver to the Seller the balance of such Upfront Shares in shares of Buyer Series B Preferred Stock, which shall be convertible into Buyer Common Stock, and (iii) issue and deliver to the Escrow Agent the Escrow Shares in shares of Buyer Series B Preferred Stock, which shall be convertible into Buyer Common Stock.

**Section 2.3 <u>Post-Closing Adjustment</u>**. Within thirty (30) days, but no earlier than fifteen (15) Business Days, after the date in which the Shareholder Approval is obtained, the Seller shall prepare and deliver to Buyer a written determination of such amount of the Deferred Payment that will be paid to the Buyer, if any (such amount that will *not* be paid to the Buyer, the "<u>Uncollected Deferred Payment</u>") as of the date the written determination is delivered (such date, the "<u>Measurement Date</u>"). Within five (5) Business Days of the Measurement Date, subject and upon receipt of any such amount of the Deferred Payment, the Parties agree to instruct Escrow Agent to release (i) *<u>first</u>*, to the Buyer, the Returned Escrow Shares (if any), and (ii) *<u>second</u>*, to the Seller, the balance of the Escrow Shares that are not Returned Escrow Shares. For the avoidance of doubt, and solely by way of example, if the Uncollected Deferred Payment on the Measurement Date is $1,000,000, the number of Returned Escrow Shares to be released to the Buyer pursuant to clause (i) of this <u>Section 2.3</u> shall be such number of shares of Buyer Series B Preferred Stock that are convertible into 1,317,795 Conversion Shares (e.g. 2,635,591 Conversion Shares \* ($1,000,000 / $2,000,000) = 1,317,795 Returned Escrow Shares (based upon Conversion Shares underlying Buyer Series B Preferred Stock)). Notwithstanding anything contained herein, in the event that Shareholder Approval is not obtained by the eighteen (18) month anniversary of the Closing, the Deferred Payment will lapse and be of no further force or consequence and the Escrow Shares will all become Returned Escrow Shares.

**Section 2.4 <u>Purchase Price Allocation</u>**. Within one hundred and twenty (120) calendar days after the Closing, the Buyer shall provide the Seller with an allocation setting forth the allocation of the Purchase Price (and other relevant items) for U.S. federal income tax purposes among the Purchased Assets in accordance with Section 1060 of the Code and the Treasury Regulations promulgated thereunder (the "<u>Allocation</u>"). The Seller shall have thirty (30) calendar days to object in writing to the Allocation, after which time (if no such objection is made) the allocation shall be final (the "<u>Final Allocation</u>"). If the Seller provides written notice to the Buyer prior to the end of such period that it objects to the Allocation, and the Buyer and the Seller cannot agree on the Allocation within twenty (20) calendar days of the provision of such notice, such dispute shall be settled by the Independent Accounting Firm, after which time the allocation determined by the Independent Accounting Firm shall become the Final Allocation. The costs and expenses of the Independent Accounting Firm or appraisal firm shall be shared equally between the Seller and the Buyer. The Parties agree that: (a) none of the Parties shall take a position on any Tax Return (including IRS Form 8594), before any Governmental Entity or in any Litigation that is inconsistent with the Final Allocation, except as otherwise required pursuant to a "determination" within the meaning of Section 1313(a) of the Code; (b) they shall cooperate with each other in connection with the preparation, execution and timely filing of all Tax Returns related to the Final Allocation; and (c) they shall promptly advise each other regarding the existence of any tax audit, controversy or Litigation related to any item provided in the Final Allocation. Any adjustments to the purchase price that occur following the determination of the Final Allocation, shall, subject to <u>Section 8.8</u>, be allocated among the Purchased Assets in a manner consistent with the methodology and valuations used in determining the Final Allocation.

**Section 2.5 <u>Deliveries by the Buyer</u>**. At the Closing, the Buyer shall deliver to the Seller or the Escrow Agent, as applicable, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) share certificates bearing appropriate legends representing the Purchase Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a duly executed counterpart of the Bill of Sale and the Assignment and Assumption Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a duly executed counterpart of each of the Lock-Up Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) deposit with Escrow Agent the Escrow Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) such other customary instruments of transfer, assumptions, filings or documents, in form and substance reasonably satisfactory to the Seller, as may be required to give effect to this Agreement and the other Transaction Documents.

**Section 2.6 <u>Deliveries by the Seller</u>**. At the Closing, the Seller shall deliver, or cause to be delivered, to the Buyer the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a duly executed counterpart of the Bill of Sale and the Assignment and Assumption Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a duly executed counterpart of each of the Lock-Up Agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such other customary instruments of transfer, assumptions, filings or documents, in form and substance reasonably satisfactory to the Buyer, as may be required to give effect to this Agreement and the other Transaction Documents.

**Article 3.<br> Closing**

**Section 3.1 <u>Closing</u>**. Subject to the terms and conditions of this Agreement, the purchase of the Purchased Assets contemplated by this Agreement shall take place remotely via the exchange of documents and signatures on the date of this Agreement, or at such other time or on such other date or at such other place as the Seller and the Buyer may mutually agree upon in writing (the "<u>Closing</u>"). The day on which the Closing takes place is referred to herein as the "<u>Closing Date</u>". The Parties may agree that the Closing shall take place via the exchange of facsimile or scanned final instruments and executed signature pages.

**Article 4.<br> Representations and Warranties of the Seller**

The Seller represents and warrants to the Buyer as of the date hereof and as of the Closing as follows:

**Section 4.1 <u>Due Formation; Due Authorization; Enforceability</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller is a limited liability company duly formed, validly existing and in good standing under the Laws of the Commonwealth of Puerto Rico. The Seller has all requisite corporate power and lawful authority to own, lease and operate the Purchased Assets and to carry on the Business as currently conducted. The Seller is qualified to transact business and is in good standing in each jurisdiction where the nature of the Business or location of the Purchased Assets requires such qualification, except for jurisdictions where the failure to be so qualified or in good standing would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller has the full legal power and capacity to execute and deliver this Agreement and the other Transaction Documents and to perform the Transactions. All necessary actions required to be taken by the Seller for the due authorization of the execution and delivery by the Seller of the Transaction Documents, and the performance by the Seller of the Transactions, has been duly taken. Each of the Transaction Documents will be, on or prior to the Closing Date, duly executed and delivered by the Seller and, assuming the due execution and delivery by the other party or parties thereto, when so executed and delivered, will constitute the legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors' rights generally.

**Section 4.2 <u>Approvals and Consents; No Conflicts</u>**. No Permit or Order of, or filing with or notification to, any Governmental Entity is required in connection with the execution and delivery by the Seller of the Transaction Documents or the performance by the Seller of the Transactions. The execution and delivery by the Seller of the Transaction Documents and the performance by the Seller of the Transactions will not conflict with, or result in the breach or violation of, any of the terms or conditions of, or constitute (or, with the passing of time or giving of notice or both, would constitute) a default under: (a) the Seller's certificate of incorporation or bylaws (or equivalent organizational documents), in each case, as in effect as of the date hereof; or (b) any Contracts or Permits to which the Seller is a party or by which the Seller or any of its assets or properties are bound, except, in the case of clause (b) as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The execution and delivery by the Seller of the Transaction Documents and the performance by the Seller of the Transactions will not conflict in any material respect with or materially violate applicable Law or any Orders applicable to Seller. The execution and delivery by the Seller of the Transaction Documents and the performance by the Seller of the Transactions will not result in, or require the creation or imposition of, any Lien upon or with respect to any of the Purchased Assets. Seller has provided all notices to, and received all necessary consents, waivers and approvals of, any Governmental Entity and any other third party in connection with the execution and delivery by the Seller of the Transaction Documents or the performance by the Seller of the Transactions. The Seller is, and at all times has been, in compliance in all material respects with its certificate of incorporation and bylaws (or equivalent organizational documents).

**Section 4.3 <u>Litigation; Orders</u>**. There is no Litigation pending or, to the Seller's Knowledge, threatened in writing against the Seller by or before a Governmental Entity relating to the Purchased Assets.

**Section 4.4 <u>Title to Purchased Assets</u>**. The Seller has good, valid and exclusive title to, and the valid and enforceable power and full right to use and transfer to the Buyer, the Purchased Assets, and the Purchased Assets are free and clear of all Liens of any kind or nature whatsoever. The delivery by the Seller to the Buyer of the instruments of transfer of ownership contemplated by this Agreement will vest in the Buyer good, valid and exclusive title to the Purchased Assets, free and clear of all Liens of any kind or nature whatsoever. The Purchased Assets constitute all rights, title, interests and other assets of Seller, tangible and intangible, primarily related to the Business. The Purchased Assets are in good working condition and repair and constitute all rights, title, interests and other assets that are sufficient and necessary to conduct the Business as it is currently conducted in all material respects.

**Section 4.5 <u>No Broker</u>**. The Seller has no Liability to pay any fees or commissions to any broker, finder or agent with respect to the Transactions.

**Section 4.6 <u>Own Account</u>**. Seller understands that the Buyer Securities are "restricted securities" and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Buyer Securities as principal for its own account and not with a view to or for distributing or reselling such Buyer Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Buyer Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Buyer Securities in violation of the Securities Act or any applicable state securities law.

**Section 4.7 <u>Seller Status</u>**. At the time Seller was offered the Buyer Securities, it was, and as of the date hereof it is, either: (i) an "accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a "qualified institutional buyer" as defined in Rule 144A(a) under the Securities Act.

**Section 4.8 <u>Experience of Seller</u>**. Seller, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Buyer Securities, and has so evaluated the merits and risks of such investment. Seller is able to bear the economic risk of an investment in the Buyer Securities and, at the present time, is able to afford a complete loss of such investment.

**Section 4.9 <u>General Solicitation</u>**. Seller is not purchasing the Buyer Securities as a result of any advertisement, article, notice or other communication regarding the Buyer Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

**Section 4.10 <u>Certain Transactions and Confidentiality</u>**. Other than consummating the transactions contemplated hereunder, Seller has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Seller, executed any purchases or sales, including Short Sales, of the securities of the Buyer prior to the execution hereof. Notwithstanding the foregoing, in the case Seller is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of Seller's assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Seller's assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Buyer Securities covered by this Agreement. Other than to other Persons party to this Agreement, Seller has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future.

**Section 4.11 <u>No Other Representations</u>**. Except for the representations and warranties specifically set forth in this <u>Article 4</u> and the other Transaction Documents, the Seller is not making, and has not made, any other express or implied representation or warranty.

**Article 5.<br> Representations and Warranties of the Buyer**

Except as set forth in the disclosure schedule delivered to the Seller by the Buyer on the date hereof (the "<u>Buyer Disclosure Schedule</u>") (with specific reference to the particular section or subsection of this Agreement to which the information set forth in such disclosure schedules relates; provided, however, that any information disclosed in one section of such disclosure schedules shall be deemed to be disclosed in such other sections of such disclosure schedules to which its relevance is reasonably apparent on its face), the Buyer represents and warrants to the Seller as of the date hereof and as of the Closing as follows:

**Section 5.1 <u>Due Formation; Due Authorization; Enforceability</u>**. The Buyer is a corporation duly formed, validly existing and in good standing under the Laws of the State of Delaware and has all requisite corporate power and lawful authority to own its assets and properties and to carry on its business as now conducted. The Buyer has the full legal power and capacity to execute and deliver this Agreement and the other Transaction Documents and to perform the Transactions. All necessary action required to be taken by the Buyer and its Affiliates for the due authorization of the execution and delivery by the Buyer of the Transaction Documents, and the performance by the Buyer of the Transactions, has been duly taken. Each of the Transaction Documents has been duly executed and delivered by the Buyer and, assuming the due execution and delivery by the other party or parties thereto, is the valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors' rights generally.

**Section 5.2 <u>Approvals and Consents; No Conflicts</u>**. No Permit or Order of, or filing with or notification to, any Governmental Entity is required in connection with the execution and delivery by the Buyer of the Transaction Documents or the performance by the Buyer of the Transactions. The execution and delivery by the Buyer of the Transaction Documents and the performance by the Buyer of the Transactions will not conflict with, or result in the breach or violation of, any of the terms or conditions of, or constitute (or, with the passing of time or giving of notice or both, would constitute) a default under: (a) the certificate of incorporation or bylaws (or equivalent organizational documents) of the Buyer or its Affiliates; (b) any Contracts or Permits to which the Buyer or its Affiliates is a party or by which the Buyer or its Affiliates or any of their assets or properties are bound; (c) applicable Law or (d) any Orders applicable to the Buyer except where such default or violation would not reasonably be expect to have a Material Adverse Effect.

**Section 5.3 <u>Litigation; Orders</u>**. Neither the Buyer nor its Affiliates (a) are party to, or, to the knowledge of the Buyer, threatened with, any current Litigation or (b) are subject to any Order, in each case that seeks to restrain or prohibit or to obtain damages or other relief in connection with the Transactions.

**Section 5.4 <u>Capitalization</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Closing Date, the authorized capital stock of Buyer consists of 259,000,000 shares of Buyer Common Stock (and 250,000,000 shares of Class A Common Stock and 9,000,000 shares of Class B Common Stock) and 50,000,000 shares of Buyer Preferred Stock. As of the close of business on the day immediately preceding the Closing Date, the outstanding shares of Buyer Common Stock and Buyer Preferred Stock issued and outstanding, all of which are duly authorized, validly issued, fully paid and non-assessable, is as disclosed on <u>Section 5.4(a)</u> of the Buyer Disclosure Schedule.

**Section 5.5 <u>SEC Filings; Financial Statements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as disclosed on <u>Section 5.5</u> of the Buyer Disclosure Schedule, Buyer has filed all forms, reports, statements, schedules and other documents required to be filed by it with the SEC under the Securities Act or the Exchange Act (collectively, the "<u>Buyer SEC Reports</u>"). The Buyer SEC Reports at the time they were filed and, if amended, as of the date of such amendment, complied in all material respects with all applicable requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and regulations promulgated thereunder. No subsidiary of the Buyer is required to file any form, report, statement, schedule or other document with the SEC under the Securities Act or the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the consolidated financial statements (including, in each case, any notes thereto) contained (or incorporated by reference) in the Buyer SEC Reports was prepared in accordance with GAAP applied on a consistent basis throughout the periods indicated (except as may be indicated in the notes thereto or, in the case of unaudited statements, as permitted by Form 10Q of the SEC) and each fairly presents, in all material respects, the consolidated financial position, results of operations and cash flows of Buyer and its consolidated subsidiaries as at the respective dates thereof and for the respective periods indicated therein, except as otherwise noted therein (subject, in the case of unaudited statements, to normal and recurring year-end adjustments which are not, in the aggregate, material to Buyer and its subsidiaries, taken as a whole).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As of the Closing Date, there are no outstanding or unresolved comments in comment letters received from the SEC with respect to the Buyer SEC Reports that would reasonably be expected to delay Buyer's performance of its obligations under this Agreement and the other Transaction Documents. None of the Buyer SEC Reports is the subject of ongoing SEC review that would reasonably be expected to delay the Buyer's performance of its obligations under this Agreement or the other Transaction Documents.

**Section 5.6 <u>Access</u>**. The Buyer and its representatives have been given full access to the assets, books, records, Contracts and employees of the Seller, and have been given the opportunity to meet with officers and other representatives of the Seller for the purpose of investigating and obtaining information regarding the Business.

**Section 5.7 <u>Reliance</u>**. The Buyer has not relied on and is not relying on any representations, warranties or other assurances regarding the Seller or the Purchased Assets other than those representations and warranties expressly set forth in <u>Article IV</u> of this Agreement.

**Section 5.8 <u>Own Account</u>**. Buyer understands certain of the Purchased Assets contain securities ("<u>Seller Securities</u>") that are "restricted securities" and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Seller Securities as principal for its own account and not with a view to or for distributing or reselling such Seller Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Seller Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Seller Securities in violation of the Securities Act or any applicable state securities law.

**Section 5.9 <u>Buyer Status</u>**. At the time Buyer was offered the Seller Securities, it was, and as of the date hereof it is, either: (i) an "accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a "qualified institutional buyer" as defined in Rule 144A(a) under the Securities Act.

**Section 5.10 <u>Experience of Buyer</u>**. Buyer, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Seller Securities, and has so evaluated the merits and risks of such investment. Buyer is able to bear the economic risk of an investment in the Seller Securities and, at the present time, is able to afford a complete loss of such investment.

**Section 5.11 <u>General Solicitation</u>**. Buyer is not purchasing the Seller Securities as a result of any advertisement, article, notice or other communication regarding the Seller Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

**Section 5.12 <u>No Other Representations</u>**. Except for the representations and warranties specifically set forth in this <u>Article 5</u> and the other Transaction Documents, the Buyer is not making, and has not made, any other express or implied representation or warranty.

**Article 6.<br> POST-CLOSING Covenants and Agreements**

**Section 6.1 <u>Further Assurances</u>**. From time to time until the second anniversary of the Closing, each of the Parties shall, and shall cause their respective Affiliates to, execute, acknowledge and deliver such conveyances, notices, assumptions, releases, consents, documents and other instruments and papers, and perform such further acts, as may be reasonably required to carry out the provisions hereof and the Transactions. The Parties waive compliance with the provisions of any so-called "bulk transfer law" or similar law of any jurisdiction in connection with the sale of the Purchased Assets. The Seller covenants and agrees that, until the second anniversary of the Closing, at the Buyer's request, the Seller will do (or cause its Affiliates to), execute, acknowledge and deliver any and all further acts and assurances as the Buyer may require to convey, transfer and vest in the Buyer the Purchased Assets, or to better enable the Buyer to realize upon or otherwise enjoy the Purchased Assets, or to carry into effect the intent and purposes of this Agreement, including the transfer to the Buyer on substantially the same terms as set forth in <u>Section 1.1</u>, of all of the right, title and interest in and to any asset that should have been transferred or delivered to the Buyer but, for whatever reason, was not so transferred or delivered. The Buyer covenants and agrees that, at any time and from time to time until the second anniversary of the Closing, at the Seller's request, the Buyer will do (or cause its Affiliates to), execute, acknowledge and deliver any and all further acts and assurances as the Seller may require to convey, transfer and vest in the Seller any Excluded Assets that should not have been transferred or delivered to the Buyer but, for whatever reason, were so transferred or delivered.

**Section 6.2 <u>Independent Contractors</u>**. Following the Closing, the Seller shall use commercially reasonable efforts to assist and enable the Buyer to engage a minimum of ten (10) independent contractors currently engaged by the Seller for the purpose of providing support in connection with business development opportunities of the Purchaser.

**Section 6.3 <u>Confidentiality; Publicity</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For a period of three (3) years following the Closing Date, each Party shall maintain in confidence the terms and provisions of the Transaction Documents, and any non-public or proprietary information regarding the other Party or the Business, and, except as reasonably necessary in connection with the Transactions, including disclosure to the attorneys, accountants or financial advisors of the Seller, shall not and shall cause its respective Affiliates, advisors, agents and representatives not to divulge such information to any other Person. This <u>Section 6.4</u> shall not apply to any information that (i) through no fault of the Party bound by such obligation of confidentiality is or becomes generally known to the public, (ii) is disclosed to such party by a Third Party having a bona fide right to disclose the information or (iii) is required by Law or any securities exchange to be disclosed. Notwithstanding anything to the contrary in this Agreement, in no event will the Seller use the Business Records to compete with the Business, <u>provided</u>, <u>however</u>, that this sentence shall not prohibit the use by the Seller or its Affiliates in their respective businesses of Residual Information. Notwithstanding the foregoing, the Parties hereto agree that such Transaction Documents (excluding exhibits and schedules, except as required by applicable Law) will need to be filed on the Securities and Exchange Commission's Electronic Data Gathering and Retrieval System (EDGAR) pursuant to applicable rules for the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as may be required by Law, no press or publicity release or other public notice concerning the Transaction Documents or the Transactions shall be issued without advance written approval (which shall not be unreasonably withheld) of the form and substance thereof by the Buyer. Each of the Buyer and the Seller agrees to consult with one another as to the content of any communication to any Governmental Entity relating to the Transactions. Notwithstanding, Buyer may disseminate a press release announcing the closing of the material terms of the transactions contemplated hereby, consistent with its past practices; <u>provided</u>, <u>that</u>, prior to making such announcement, Buyer shall have delivered a draft of such press release to the Seller and shall have given the Seller reasonable opportunity to comment thereon.

**Section 6.4 <u>Transfer Taxes</u>**. Notwithstanding anything to the contrary in this Agreement, the Seller and the Buyer each shall bear one half of any Transfer Taxes incurred in connection with the transactions contemplated by this Agreement. To the maximum extent possible, the Buyer and the Seller shall reasonably cooperate so that Seller may deliver the Purchased Assets to the Buyer in a manner which minimizes the amount of Transfer Taxes imposed.

**Section 6.5 <u>Fees and Expenses</u>**. Except as otherwise set forth in this Agreement, whether or not the Transactions are consummated, all fees and expenses incurred in connection with the Transactions and this Agreement, including the fees and disbursements of counsel, financial advisors, accountants and any broker, finder or similar agent retained by a Party who would be entitled to a commission or fee in respect of the Transactions, shall be paid by the Party incurring such fees or expenses.

**Section 6.6 <u>Shareholder Approval</u>**. The Company agrees to hold a special meeting of shareholders (which may also be at the annual meeting of shareholders) within six (6) months of the Closing for the purpose of obtaining Shareholder Approval, with the recommendation of the Buyer's Board of Directors that such proposal be approved, and the Buyer shall solicit proxies from its shareholders in connection therewith in the same manner as all other management proposals in such proxy statement and all management-appointed proxyholders shall vote their proxies in favor of such proposal. The Buyer shall use its reasonable best efforts to obtain such Shareholder Approval. If the Company does not obtain Shareholder Approval at the first meeting, the Company shall call a meeting every four (4) months thereafter to seek Shareholder Approval until the Shareholder Approval is obtained.

**Article 7.<br> CLOSING CONDITIONS**

**Section 7.1 <u>Mutual Conditions to Closing</u>**. The obligations of the Seller and the Buyer to consummate the Transactions are subject to the fulfilment, on or prior to the Closing Date, of each of the following conditions (any or all of which may be waived by the applicable Party in whole or in part to the extent permitted by applicable Law):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Prohibition</u>. There shall not be in effect any injunction, order or decree of a Governmental Entity that prohibits the transactions contemplated by this Agreement by the Buyer or the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Litigation</u>. No Litigation has been initiated that challenges or seeks damages or other relief in connection with the Transaction or that has the effect of preventing or making illegal the Transactions.

**Section 7.2 <u>Conditions to Closing of the Buyer</u>**. The obligations of the Buyer to consummate the Transactions is subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions (any or all of which may be waived by the Buyer in whole or in part to the extent permitted by applicable Law):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties</u>. The representations and warranties of the Seller set forth in this Agreement (other than those qualified by "materiality" or "Material Adverse Effect" which shall be true and correct in all respects as of the Closing Date) shall be true and correct in all material respects as of the Closing Date (or if such representations and warranties expressly relate to a specific date, such representations and warranties shall be true and correct as of such date); and the Buyer shall have received a certificate signed on behalf of the Seller by the President of the Seller and to such effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Covenants</u>. The Seller shall have performed and complied in all material respects with all obligations and agreements required by this Agreement to be performed or complied with by it on or prior to the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Ancillary Agreements</u>. The Seller shall have executed and delivered or cause to be executed and delivered each of the Ancillary Agreements.

**Section 7.3 <u>Conditions to Closing of the Seller</u>**. The obligations of the Seller to consummate the Transactions is subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions (any or all of which may be waived by the Seller in whole or in part to the extent permitted by applicable Law):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties</u>. The representations and warranties of the Buyer set forth in this Agreement (other than those qualified by "materiality" or "Material Adverse Effect" which shall be true and correct in all respects as of the Closing Date) shall be true and correct in all material respects as of the Closing Date (or if such representations and warranties expressly relate to a specific date, such representations and warranties shall be true and correct as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Covenants</u>. The Buyer shall have performed and complied in all material respects with all obligations and agreements required by this Agreement to be performed or complied with by Buyer on or prior to the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Ancillary Agreements</u>. The Buyer shall have executed and delivered each of the Ancillary Agreements.

**Article 8.<br> Survival; Indemnification**

**Section 8.1 <u>Survival of Representations and Covenants</u>**. All representations and warranties of the Seller and the Buyer in this Agreement or any other Transaction Document shall survive the Closing until the 12-month anniversary of the Closing Date (the "<u>Survival Date</u>"); <u>provided</u>, <u>however</u>, that all representations and warranties contained in <u>Sections 4.1</u>, <u>4.4</u>, <u>4.5</u>, <u>5.1</u> and <u>5.2</u> (the "<u>Fundamental Representations</u>") shall survive for three (3) years after the Closing. All covenants and agreements set forth herein shall survive the Closing in accordance with their respective terms (and shall survive until fully performed or fulfilled if no term is specified).

**Section 8.2 <u>Survival of Claims</u>**. Any claim for indemnification based upon a breach of any representation or warranty and asserted in writing prior to the Survival Date by written notice in accordance with <u>Section 8.4</u> shall survive until the final non-appealable resolution of such claim.

**Section 8.3 <u>Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>By the Seller</u>. Subject to the limitations set forth in this <u>Article 8</u>, the Seller shall indemnify, defend and hold harmless the Buyer and its Affiliates, directors, officers, partners, stockholders, agents, representatives, employees, owners, successors and assigns (collectively, the "<u>Buyer Indemnified Parties</u>") from and against any and all Damages, whether or not involving a third party claim (collectively, the "<u>Buyer Damages</u>"), directly or indirectly arising out of, relating to or resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any inaccuracy in or breach of any representation or warranty of the Seller contained in this Agreement or in any other Transaction Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any breach of any covenant or agreement of the Seller contained in this Agreement or in any other Transaction Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Excluded Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>By the Buyer</u>. Subject to the limitations set forth in this <u>Article 8</u>, the Buyer shall indemnify, defend and hold harmless the Seller and its Affiliates, directors, officers, partners, stockholders, agents, representatives, employees, owners, successors and assigns (collectively, the "<u>Seller Indemnified Parties</u>") from and against any and all Damages, whether or not involving a third party claim, directly or indirectly arising out of, relating to or resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any inaccuracy in or breach of any representation or warranty of the Buyer contained in this Agreement or in any other Transaction Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any breach of any covenant or agreement of the Buyer contained in this Agreement or in any other Transaction Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Assumed Liability.

**Section 8.4 <u>Procedures for Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Promptly after receipt by a Party entitled to indemnification hereunder (the "<u>Indemnitee</u>") of written notice of the assertion or the commencement of any Litigation by a third party with respect to any matter referred to in <u>Sections 8.3(a)</u> or <u>8.3(b)</u>, the Indemnitee shall give written notice thereof to the Party obligated to indemnify the Indemnitee (the "<u>Indemnitor</u>"), which notice shall include a description of the claim or Litigation, the amount thereof (if known and quantifiable) and the basis for the claim or Litigation, and thereafter shall keep the Indemnitor reasonably informed with respect thereto; <u>provided</u>, <u>however</u>, that failure of the Indemnitee to give the Indemnitor notice as provided herein shall not relieve the Indemnitor of its obligations hereunder except to the extent that the Indemnitor is actually prejudiced thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Indemnitor shall be entitled to participate in the defense of such claim or Litigation giving rise to an Indemnitee's claim for indemnification at such Indemnitor's expense, and at its option (subject to the limitations set forth below) shall be entitled to assume the defense thereof by appointing a reputable counsel reasonably acceptable to the Indemnitee to be the lead counsel in connection with such defense; <u>provided</u>, <u>however</u>, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Indemnitee shall be entitled to participate in the defense of such claim or Litigation and to employ counsel of its choice for such purpose, so long as the fees and expenses of such separate counsel are borne by the Indemnitee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Indemnitor elects to control the defense of any such claim or Litigation, then the Indemnitor shall obtain the prior written consent of the Indemnitee before entering into any settlement of a claim or Litigation or ceasing to defend such claim or Litigation if, pursuant to or as a result of such settlement or cessation, injunctive or other equitable relief will be imposed against the Indemnitee or if such settlement does not expressly and unconditionally release the Indemnitee from all Liabilities with respect to such claim or Litigation, without prejudice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the Indemnitor does not elect to control the defense of any such claim or Litigation, then the Indemnitee shall obtain the prior written consent of the Indemnitor before entering into any settlement of a claim or Litigation or ceasing to defend such claim or Litigation if, pursuant to or as a result of such settlement or cessation, injunctive or other equitable relief will be imposed against the Indemnitor or if such settlement does not expressly and unconditionally release the Indemnitor from all Liabilities with respect to such claim or Litigation, without prejudice.

**Section 8.5 <u>Limitations on Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Other than with respect to Damages related to breaches of Fundamental Representations, breaches of covenants and Damages relating to any Excluded or Assumed Liability, neither Party shall be obligated to indemnify the Buyer Indemnified Parties or Seller Indemnified Parties with respect to any claim for indemnification made under <u>Section 8.3(a)(i)</u> or <u>Section 8.3(b)(i)</u>, as the case may be, (x) unless the aggregate amount of all Damages of the Party seeking indemnification exceeds $50,000, in which case the Buyer Indemnified Parties or Seller Indemnified Parties, as the case may be, shall be entitled to recover the aggregate amount of all Damages incurred by such Party from the first dollar of such Damages; or (y) to the extent that the aggregate amount of all Damages of the Party seeking indemnification exceeds a dollar amount equal to $800,000. For all other Damages, the maximum aggregate amount that is potentially recoverable by the Buyer Indemnified Parties or the Seller Indemnified Parties, as the case may be, shall not exceed the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as set forth in <u>Section 8.3</u>, no Party shall be liable for any punitive or exemplary damages or Damages based thereon (other than those required to be paid to a third party as part of a third party claim).

**Section 8.6 <u>Remedies</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except (i) in the case of fraud or intentional misrepresentation, (ii) with respect to the matters covered by <u>Article 2</u> and (iii) in the case where a Party seeks to obtain specific performance pursuant to <u>Section 8.6(b)</u>, from and after the Closing the rights of the Parties to indemnification pursuant to the provisions of this <u>Article 8</u> shall be the sole and exclusive remedy for the Parties with respect to any matter relating to this Agreement or its subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is specifically understood and agreed that in addition to any other remedy it may have, any Party hereto shall be entitled to enforce the specific performance of this Agreement or any other Transaction Document through both temporary and permanent injunctive relief without the necessity of posting a bond or proving actual damages, but without limitation of their right to damages and any and all other remedies available to them.

**Section 8.7 <u>Manner of Payment</u>**. Any indemnification of the Buyer Indemnified Parties or the Seller Indemnified Parties pursuant to this <u>Article 8</u> shall be effected by wire transfer of immediately available funds from the applicable Persons to an account designated in writing by the applicable Buyer Indemnified Parties or the Seller Indemnified Parties, as the case may be, promptly after the determination thereof.

**Section 8.8 <u>Indemnification Payments</u>**. Except as otherwise required by Law, each of the Parties agree to treat any indemnification payment made pursuant to this Agreement as an adjustment to the purchase price (as determined for tax purposes), and to treat such indemnification payment as an adjustment to the consideration allocated to a specific asset, if any, to the extent such asset gives rise to the adjustment.

**Article 9.<br> Definitions**

**Section 9.1 <u>Certain Definitions</u>**. As used in this Agreement, the following terms have the following meanings unless the context otherwise requires:

"<u>Affiliate</u>" means, with respect to any Person: (i) who is an individual, the spouse, parent, sibling or lineal descendant of such Person; (ii) that is an entity, the officers, managers, directors, stockholders, members, general partners, limited partners or any affiliate of the foregoing; and (iii) any other Person that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, another Person. For purposes of this definition, the terms "control," "controlling," "controlled by" and "under common control with," as used with respect to any Person, means the possession, directly or indirectly, of the power to direct the management, policies and/or investment decisions of a Person, whether through the ownership of voting securities, by Contract or otherwise.

"<u>Aggregate Buyer Stock Amount</u>" or "<u>Buyer Securities</u>" means the Escrow Shares *<u>plus</u>* the Upfront Shares.

"<u>Ancillary Agreements</u>" shall mean the following agreements to be entered into at the Closing: (i) the Bill of Sale and Assignment and Assumption Agreement, by and between the Buyer and the Seller, in substantially the form attached hereto as <u>Exhibit A</u> (the "<u>Bill of Sale and Assignment and Assumption Agreement</u>") and (ii) the Lock-Up Agreement, by and between the Buyer and each Seller Member, in substantially the form attached hereto as <u>Exhibit B</u> (the "<u>Lock-Up Agreement</u>").

"<u>Business Day</u>" means any day, other than a Saturday, Sunday or a day on which all banking institutions in New York, New York are authorized or obligated by applicable Law or executive order to close.

"<u>Business Records</u>" means all books, records, ledgers and files or other similar information (whether in paper, electronic or other form) of the Business, including (a) customer lists (including pricing information, credit information and historical sales information for each such customer), vendor lists, customer relationship databases, lists of prospects, and lists of other purchasers of goods and services from the Business, (b) all market research, marketing and promotional plans and materials and sales and marketing information primarily related to the Business, (c) advertising and publicity materials and brochures, (d) records of operation, standard forms of documents, and manuals of operations or business procedures, and (e) product plans and roadmaps.

"<u>Buyer Common Stock</u>" shall mean shares of Class A common stock of the Buyer, par value $0.001 per share.

"<u>Buyer Preferred Stock</u>" shall mean shares of preferred stock of the Buyer, par value $0.001 per share.

"<u>Buyer Series B Preferred Stock</u>" shall mean the Series B Convertible Preferred Stock of the Buyer, par value $0.001 per share, having a stated value of $48.00 per share, and a conversion price of $1.00.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

"<u>Contract</u>" means any written or oral contract, license, agreement, commitment, lease, instrument, undertaking or other legally binding obligation or arrangement to which a Person is a party, by which a Person is bound or by which any of the assets or properties of a Person is bound.

"<u>Conversion Shares</u>" means the shares of Buyer Common Stock underlying the Buyer Series B Preferred Stock, subject to adjustment pursuant to the terms of the Buyer Series B Preferred Stock. No Conversion Shares will be issued until the receipt of Shareholder Approval.

"<u>Damages</u>" means and includes any loss, damage, injury, liability, claim, demand, settlement, judgment, award, fine, penalty, interest (whether incurred in connection with an indemnification payment or otherwise, and including penalties and interest thereon), fee (including any reasonable legal fee, accounting fee, expert fee, consulting fee or advisory fee), charge, cost (including any cost of investigation) or expense, in each case of any nature.

"<u>Deferred Payment</u>" means an amount of cash equaling Two Million Dollars ($2,000,000) which may be paid or caused to be paid by the Seller (or its Affiliates) on or before the Measurement Date in its sole and absolute discretion.

"<u>Dollars</u>" or "<u>$</u>" means United States Dollars.

"<u>Escrow Shares</u>" means 54,908 shares of Buyer Series B Preferred Stock which shall be convertible at the Closing into 2,635,591 Conversion Shares.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

"<u>GAAP</u>" means generally accepted accounting principles in the United States of America consistently applied.

"<u>Governmental Entity</u>" means any United States (federal, state or local) or foreign government, or any governmental, regulatory, judicial or administrative authority, agency or commission, as well as any arbitral body.

"<u>Indebtedness</u>" means, as of any time, without duplication, the outstanding principal amount of, accrued and unpaid interest on, and other payment obligations (including any prepayment penalties, premiums, costs, breakage or other amounts payable upon the discharge thereof at the Closing) arising under, any obligations of the Seller primarily relating to the Business consisting of (i) indebtedness for borrowed money, (ii) any obligations in respect of any note, bond, debenture or other debt security, (iii) any Liability with respect to interest rate swaps, collars, caps and similar hedging obligations (provided that for purposes hereof, such Liabilities shall be valued as the amount of any termination payment, breakage, costs or other amounts payable upon termination thereof on the Closing Date), (iv) Liabilities for deferred and unpaid purchase price of property (but excluding any trade payables and accrued expenses arising in the ordinary course of business), (v) obligations required to be recorded as capitalized leases under GAAP, (vi) any other fees, expense reimbursements, indemnity payments or other amounts, in each case payable by the Seller pursuant to the terms of the foregoing, and (vii) guarantees of, or agreements to insure, become liable for, or pledge any assets to secure, any indebtedness of a third party of the type described in the foregoing clauses (i) and (ii).

"<u>Independent Accounting Firm</u>" means an independent accounting firm selected by and mutually acceptable to the Buyer and the Seller.

"<u>Knowledge</u>" means the current, actual knowledge of, or the knowledge that would reasonably be expected to be gained by: (i) each of Scott Walker and Brock Pierce with respect to the Seller and (ii) Chris Miglino with respect to the Buyer, following inquiries of their respective reports.

"<u>Law</u>" means any and all domestic (federal, state or local) or foreign laws, rules, regulations, or promulgated by any Governmental Entity, as well as any Orders.

"<u>Liabilities</u>" means any and all direct or indirect Indebtedness, liabilities, obligations, costs, expenses, claims, losses, damages, deficiencies or responsibilities, whether known or unknown, accrued or fixed, absolute or contingent, liquidated or unliquidated, choate or inchoate, subordinated or unsubordinated, matured or unmatured, secured or unsecured or determined or determinable, whether or not of a kind required by GAAP to be set forth on a financial statement, including those arising under any Law or Order, other governmental, regulatory or administrative charges or lawsuit brought, under any Contract or otherwise.

"<u>Lien</u>" means any mortgage, pledge, security interest, lien (statutory or otherwise), charge, claim, option, right of first refusal, right of first offer, attachment, title imperfection or defect, easement, covenant or other right, restriction or encumbrance of any kind, including any collateral security arrangement, conditional or installment sales agreement or other restriction of any kind (other than those created under applicable securities Laws). For purposes of this Agreement, Lien does not include a nonexclusive license to Intellectual Property.

"<u>Litigation</u>" means any claim, action, suit, complaint, charge, demand, litigation, prosecution, contest, hearing, inquiry, inquest, audit or other judicial, administrative or arbitration proceeding.

"<u>Material Adverse Effect</u>" means any change, effect or circumstance or group of any of the foregoing that has a material adverse effect on the business, results of operations or financial condition of the Business taken as a whole, other than any of the following or any effect attributable to any of the following: (i) changes in general economic or political conditions or financial, credit or securities markets in general (including changes in interest or exchange rates) in any country or region in which the Seller conducts business; (ii) any events, circumstances, changes or effects that affect the industries in which the Business operates; (iii) any changes in Laws applicable to the Business or any of its properties or assets or changes in GAAP; (iv) acts of war, armed hostilities, sabotage or terrorism, or any escalation or worsening of any acts of war, armed hostilities, sabotage or terrorism; (v) any action taken that is required, expressly contemplated by, this Agreement (including the impact thereon on relationships (contractual or otherwise) with customers, vendors, lenders, employees or other business partners, or the identity of the Buyer or any action taken at the request of the Buyer; (vi) any failure by the Business to meet internal or published projections, forecasts, estimates or revenue or earnings predictions or expectations for any period, it being understood that any underlying event causing such changes or failures in whole or in part may be taken into account in determining whether a Material Adverse Effect has occurred; or (vii) earthquakes, hurricanes, tsunamis, tornadoes, floods, mudslides, wildfires or other natural disasters, weather conditions, pandemics, manmade disasters and other force majeure events in any region in the world; in each case of clauses (i), (ii), (iii), (iv) or (vii) to the extent such changes, events, circumstances, effects, acts, escalation or worsening do not have a materially disproportionate impact on the Business relative to other businesses in similar industries to those in which Business operates.

"<u>Orders</u>" means any order, judgment, injunction, award, decision, decree, stipulation, determination, writ or other ruling issued by any Governmental Entity.

"<u>Permits</u>" means any and all licenses, registrations, franchises, qualifications, permits, variances, exemptions, consents, certificates, Orders, approvals and authorizations issued by any Governmental Entity.

"<u>Person</u>" means an individual, partnership, corporation, limited liability company, joint stock company, unincorporated organization or association, trust, joint venture, association or other similar entity, whether or not a legal entity.

"<u>Residual Information</u>" means the general ideas, know-how and techniques that would be retained in the unaided memory of an ordinary person, as a result of such person's access to, use, review, evaluation, or testing of such information of the Business during the time that the Seller owned and operated the Business.

"<u>Returned Escrow Shares</u>" means such number of Escrow Shares multiplied by the Uncollected Deferred Payment Percentage.

"<u>SEC</u>" means the U.S. Securities and Exchange Commission.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

"<u>Securities Purchase Agreement</u>" means that certain Securities Purchase Agreement, dated as of even date herewith, by and between the Buyer and the Seller.

"<u>Seller Members</u>" means, collectively, Scott Walker and Brock Pierce.

"<u>Shareholder Approval</u>" means such approval as may be required by the applicable rules and regulations of the Nasdaq Stock Market (or any successor entity) from the shareholders of the Buyer with respect to the transactions contemplated by the Transaction Documents, including the issuance of all of the Conversion Shares underlying the Buyer Series B Preferred Stock and the to the extent the Deferred Payment expires as described in Section 2.3, further Shareholder Approval will be modified to exclude the Escrow Shares.

"<u>Short Sales</u>" means all "short sales" as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Buyer Common Stock).

"<u>Tax</u>" or "<u>Taxes</u>" means: (a) all federal, state, local, foreign and other taxes, duties government fees, or other assessments or charges of any kind whatsoever, including net income, alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profits, customs or other taxes and unclaimed property liabilities, together with any interest, penalties or additions to tax imposed with respect thereto; (b) any Liability for payment of amounts described in clause (a) whether as a result of transferee liability, of being a member of an Affiliated, consolidated, combined or unitary group for any period, by Contract or otherwise.

"<u>Tax Return</u>" means all returns, declarations, reports, forms, estimates, information returns and statements required to be filed in respect of the determination, assessment, collection or payment of any Taxes or to be supplied to a Taxing Authority in connection with the administration, implementation or enforcement of or compliance with any Law related to any Tax (including any amendments or schedules, attachments or other supporting documentation with respect thereto).

"<u>Taxing Authority</u>" shall mean any Governmental Entity having jurisdiction over the assessment, determination, collection or other imposition of any Tax.

"<u>Transactions</u>" means the transactions contemplated by this Agreement and the other Transaction Documents.

"<u>Transaction Documents</u>" means this Agreement and all other agreements, certificates, instruments, documents and writings delivered in connection with this Agreement including the Ancillary Agreements and the Securities Purchase Agreement.

"<u>Transfer Taxes</u>" means any sale or use, transfer, documentary, gross receipts, sales and use, value added, real property gains, excise, stamp or other similar Taxes imposed by reason of the Transactions or resulting, directly or indirectly, from the sale, assignment, transfer and delivery of the Purchased Assets.

"<u>Uncollected Deferred Payment Percentage</u>" means the quotient of the outstanding Uncollected Deferred Payment on the Measurement Date divided by the Deferred Payment.

"<u>Upfront Shares</u>" means 1,313,127 shares of Buyer Common Stock and 63,743 shares of Buyer Series B Preferred Stock.

**Section 9.2 <u>Other Defined Terms</u>**. The following terms are defined in the following Sections of this Agreement:

---

| | |
|:---|:---|
| **Term** | **Section** |
| Agreement | Preamble |
| Allocation | 2.4 |
| Assumed Liabilities | 1.3 |
| Business | Recitals |
| Buyer | Preamble |
| Buyer Damages | 8.3(a) |
| Buyer Disclosure Schedule | Article 5 |
| Buyer Indemnified Parties | 8.3(a) |
| Buyer SEC Reports | 5.5(a) |
| Claimant | 10.6(b) |
| Closing | 3.1 |
| Closing Date | 3.1 |
| Escrow Agent | 2.2 |
| Exchange Cap | 2.2 |
| Excluded Assets | 1.2 |
| Excluded Liabilities | 1.4 |
| Final Allocation | 2.4 |
| Fundamental Representations | 8.1 |
| Indemnitee | 8.4(a) |
| Indemnitor | 8.4(a) |
| Measurement Date | 2.3 |
| Parties | Preamble |
| Purchase Price | 2.1 |
| Purchased Assets | 1.1 |
| Request | 10.6(b) |
| Respondent | 10.6(b) |
| Seller | Preamble |
| Seller Indemnified Parties | 8.3(b) |
| Seller Securities | 5.9 |
| Shareholder Approval | 6.6 |
| Survival Date | 8.1 |
| Uncollected Deferred Payment | 2.3 |

---

**Article 10.<br> Miscellaneous**

**Section 10.1 <u>Governing Law</u>**. This Agreement shall be governed by, and construed in accordance with the laws of the State of Delaware, without giving effect to any choice or conflict of laws provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Delaware.

**Section 10.2 <u>Notices</u>**. Any notice required to be given hereunder shall be sufficient if in writing, and sent by facsimile transmission or e-mail of a .pdf attachment (provided that any notice received by facsimile or e-mail transmission or otherwise at the addressee's location on any Business Day after 5:00 p.m. (addressee's local time) shall be deemed to have been received at 9:00 a.m. (addressee's local time) on the next Business Day and any notice by email shall also be delivered by another permitted means of giving notice), by reliable overnight delivery service (with proof of service), hand delivery or certified or registered mail (return receipt requested and first-class postage prepaid), addressed as follows (or at such other address for a party as shall be specified in a notice given in accordance with this <u>Section 10.2</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Seller, to:

DNA Holdings, LLC

151 San Francisco Street

Suite 200

San Juan, PR 00901

Attention: Scott Walker <br> E-mail:

with a copy to (which will not constitute notice):

O'Melveny & Myers, LLP

400 South Hope Street

18<sup>th</sup> Floor

Los Angeles, CA 90071

Attention: Scott Sugino; David Kirman <br> Telephone: <br> E-mail:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Buyer, to:

SRAX, Inc.

2629 Townsgate Road, Suite 215

Westlake Village, CA 91361

Attention: Chris Miglino, Chief Executive Officer <br> E-mail:

with a copy to (which will not constitute notice):

Silvestre Law Group, P.C.

2629 Townsgate Road, Suite 215

Westlake Village, CA 91361

Attention: Raul Silvestre <br> Telephone: <br> E-mail:

**Section 10.3 <u>Entire Agreement; Assignment</u>**. This Agreement and the other Transaction Documents (a) constitute the entire agreement among the Parties with respect to the subject matter hereof and supersedes all other prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof and (b) shall not be assigned by any Party (whether by operation of Law or otherwise), without the prior written consent of the Parties; <u>provided</u>, the Buyer may assign its rights and obligations hereunder to any Affiliate of the Buyer, to any lender of Buyer or its Affiliates for collateral security purposes or to any subsequent purchaser of the Business; <u>provided</u>, <u>however</u>, the Buyer shall remain liable hereunder following any such assignment. Any attempted assignment of this Agreement not in accordance with the terms of this <u>Section 10.3</u> shall be void.

**Section 10.4 <u>Waivers and Amendments</u>**. This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by all the Parties or, in the case of a waiver, by the Party waiving compliance. No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any such right, power or privilege, nor any single or partial exercise of any such right, power or privilege, preclude any further exercise thereof or the exercise of any other right, power or privilege.

**Section 10.5 <u>Parties in Interest</u>**. This Agreement shall be binding upon and inure solely to the benefit of each Party and its successors and permitted assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement.

**Section 10.6 <u>Dispute Resolution</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 10.6(d)</u>, any and all disputes, controversies or claims arising out of or relating to this Agreement or any provision hereof or to the Transactions, whether in contract, tort or otherwise, at law or in equity, for damages or any other relief, shall be finally settled by confidential arbitration administered by the American Arbitration Association in accordance with its then-prevailing commercial arbitration rules, except as they may be modified herein or by mutual written agreement of the parties. For the avoidance of doubt, the authority of the arbitrator(s) shall include the right to grant injunctive and other equitable relief (including specific performance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any such arbitration proceeding shall be conducted in Los Angeles, California, and, except as otherwise provided below, shall be conducted by an arbitration tribunal composed of three (3) arbitrators. The party initiating arbitration (the "<u>Claimant</u>") shall appoint a single arbitrator in its request for arbitration (a "<u>Request</u>"). The other party (the "<u>Respondent</u>") shall appoint its arbitrator within thirty (30) days of receipt of the Request and shall notify the Claimant of such appointment in writing. If the Respondent fails to appoint an arbitrator within such thirty (30) day period, the arbitrator named in the Request shall decide the dispute as an arbitration tribunal composed of a sole arbitrator. Otherwise, the two arbitrators appointed by the parties shall appoint a third arbitrator within thirty (30) days after the Respondent has notified the Claimant of the appointment of the Respondent's arbitrator. When the arbitrators appointed by the parties have appointed a third arbitrator and the third arbitrator has accepted the appointment, the two arbitrators shall promptly notify the parties of such appointment. If the two arbitrators appointed by the parties fail or are unable to appoint a third arbitrator or to notify the parties of such appointment, then the third arbitrator shall be appointed by or on behalf of the President of the American Arbitration Association which shall promptly notify the parties of the appointment of the third arbitrator. The third arbitrator shall act as chairperson of the tribunal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The arbitration decision and award shall be in writing and shall be final, nonappealable and binding on the parties. The award may include an award of costs, including reasonable attorneys' fees and disbursements. Judgment upon the award may be entered by any court having jurisdiction thereof or having jurisdiction over the applicable parties or their assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary herein, nothing herein shall preclude any party from pursuing injunctive or other equitable relief from a court of competent jurisdiction to enforce its rights under <u>Section 6.1</u> hereof.

**Section 10.7 <u>Acknowledgement</u>**. Each of the Parties has reviewed and understands the terms of this Agreement and the other Transaction Documents to which such Party is a party, and has had the opportunity to discuss with such Party's financial, tax and legal advisors, the representations, warranties and agreements being made by such Party herein and therein, including the available remedies against such Party for any breach, inaccuracy or violation of such representations, warranties and agreements.

**Section 10.8 <u>Construction; Interpretation</u>**. The term "this Agreement" means this Agreement together with all Schedules and Exhibits hereto, as the same may from time to time be amended, modified, supplemented or restated in accordance with the terms hereof. The headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. No Party, nor its respective counsel, shall be deemed the drafter of this Agreement for purposes of construing the provisions hereof, and all provisions of this Agreement shall be construed according to their fair meaning and not strictly for or against any Party. Unless otherwise indicated to the contrary herein by the context or use thereof: (i) the words, "herein," "hereto," "hereof" and words of similar import refer to this Agreement as a whole, including the Schedules and Exhibits, and not to any particular section, subsection paragraph, subparagraph or clause contained in this Agreement; (ii) masculine gender shall also include the feminine and neutral genders, and vice versa; (iii) words importing the singular shall also include the plural, and vice versa; (iv) the words "include," "includes," "including" and "inclusive of" shall be deemed to be followed by the words "without limitation"; (v) the word "will" shall be construed to have the same meaning as the word "shall"; (vi) the phrase "to the extent" shall mean the extent or degree to which a subject or thing extends, and shall not simply be construed to mean the word "if"; and (vii) the word "or" is used in the inclusive sense of "and/or".

**Section 10.9 <u>Severability</u>**. If any term or other provision of this Agreement is invalid, illegal or unenforceable, all other provisions of this Agreement shall remain in full force and effect so long as the economic or legal substance of the Transactions is not affected in any manner materially adverse to any Party.

**Section 10.10 <u>Counterparts; Facsimile</u>**. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or scanned pages shall be effective as delivery of a manually executed counterpart to this Agreement.

[Signature Page Follows]

IN WITNESS WHEREOF, the Parties have executed this Asset Purchase Agreement as of the date first above written.

---

| | |
|:---|:---|
| **BUYER:** | **BUYER:** |
| **SRAX, INC.** | **SRAX, INC.** |
| By: | */s/ Christopher Miglino* |
| Name: | Christopher Miglino |
| Title: | Chief Executive Officer |
| **SELLER:** | **SELLER:** |
| **DNA HOLDINGS, LLC<br>**  | **DNA HOLDINGS, LLC<br>**  |
| By: | The Roundtable LLC |
| Its: | Manager |
| By: | */s/ Brock Pierce*<br>|
| Name: | Brock Pierce |
| Title: | Manager |

---

[Signature Page to Asset Purchase Agreement]

**<u>Exhibit A</u>**

Form of Bill of Sale and Assignment and Assumption Agreement

[\[See Exhibit 10.1 to the Current Report on Form 8-K that this exhibit is attached to\]](ex10-1.htm)

**<u>Exhibit B</u>**

Form of Lock-Up Agreement

[\[See Exhibit 10.2 to the Current Report on Form 8-K that this exhibit is attached to\]](ex10-2.htm)

## Exhibit 3.1

**Exhibit 3.1**

**SRAX, inc.**

**CERTIFICATE OF DESIGNATION OF PREFERENCES,** 

**RIGHTS AND LIMITATIONS**

**OF**

**SERIES B NON-VOTING CONVERTIBLE PREFERRED STOCK**

PURSUANT TO SECTION 151(g) OF THE

Delaware GENERAL CORPORATION LAW

The undersigned, Christopher Miglino, does hereby certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. He is the President and Secretary, respectively, of SRAX, Inc., a Delaware corporation (the "<u>Corporation</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Corporation is authorized to issue 50,000,000 shares of preferred stock, 36,462,417 shares of which have been issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The following resolutions were duly adopted by the board of directors of the Corporation (the "<u>Board of Directors</u>"):

WHEREAS, the certificate of incorporation of the Corporation provides for a class of its authorized stock known as preferred stock, consisting of 30,000,000 shares, $0.001 par value per share, issuable from time to time in one or more series;

WHEREAS, the Board of Directors is authorized to fix the dividend rights, dividend rate, voting rights, conversion rights, rights and terms of redemption and liquidation preferences of any wholly unissued series of preferred stock and the number of shares constituting any series and the designation thereof, of any of them; and

WHEREAS, it is the desire of the Board of Directors, pursuant to its authority as aforesaid, to fix the rights, preferences, restrictions and other matters relating to a series of the preferred stock, which shall consist of, except as otherwise set forth in the Purchase Agreement, up to 118,651 shares of the preferred stock which the Corporation has the authority to issue, as follows:

NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for the issuance of a series of preferred stock for cash or exchange of other securities, rights or property and does hereby fix and determine the rights, preferences, restrictions and other matters relating to such series of preferred stock as follows:

**TERMS OF PREFERRED STOCK**

<u>Section 1</u>. <u>Definitions</u>. For the purposes hereof, the following terms shall have the following meanings:

"<u>Affiliate</u>" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 of the Securities Act.

"<u>Alternate Consideration</u>" shall have the meaning set forth in Section 7(b).

"<u>Beneficial Ownership Limitation</u>" shall have the meaning set forth in Section 6(d).

"<u>Business Day</u>" means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

"<u>Commission</u>" means the United States Securities and Exchange Commission.

"<u>Common Stock</u>" means the Corporation's Class A common stock, par value $0.001 per share, and stock of any other class of securities into which such securities may hereafter be reclassified or changed.

"<u>Common Stock Equivalents</u>" means any securities of the Corporation or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

"<u>Conversion Date</u>" shall have the meaning set forth in Section 6(a).

"<u>Conversion Price</u>" shall have the meaning set forth in Section 6(b).

"<u>Conversion Shares</u>" means, collectively, the shares of Common Stock issuable upon conversion of the shares of Preferred Stock in accordance with the terms hereof.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>Fundamental Transaction</u>" shall have the meaning set forth in Section 7(b).

"<u>Holder</u>" shall have the meaning given such term in Section 2.

"<u>Notice of Conversion</u>" shall have the meaning set forth in Section 6(a).

"<u>Original Issue Date</u>" means the date of the first issuance of any shares of the Preferred Stock regardless of the number of transfers of any particular shares of Preferred Stock and regardless of the number of certificates which may be issued to evidence such Preferred Stock.

"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"<u>Preferred Stock</u>" shall have the meaning set forth in Section 2.

"<u>Purchase Agreement</u>" means the Asset Purchase Agreement, dated as of the Original Issue Date, among the Corporation and the original Holders, as amended, modified or supplemented from time to time in accordance with its terms.

"<u>Securities</u>" means the Preferred Stock and the Underlying Shares.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Share Delivery Date</u>" shall have the meaning set forth in Section 6(c).

"<u>Shareholder Approval</u>" means such approval as may be required by the applicable rules and regulations of the Nasdaq Stock Market (or any successor entity) from the shareholders of the Corporation with respect to the transactions contemplated by the Transaction Documents, including the issuance of all of the Underlying Shares in excess of 4.99% of the issued and outstanding Common Stock on the Original Issue Date.

"<u>Stated Value</u>" shall have the meaning set forth in Section 2.

"<u>Subsidiary</u>" means any subsidiary of the Corporation on the Original Issue Date and will also include any direct or indirect subsidiary of the Corporation formed or acquired after the Original Issue Date.

"<u>Successor Entity</u>" shall have the meaning set forth in Section 7(b).

"<u>Trading Day</u>" means a day on which the principal Trading Market is open for business.

"<u>Trading Market</u>" means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, or any inter-dealer quotation system (or any successors to any of the foregoing).

"<u>Transaction Documents</u>" shall have the meaning set forth in Section 7(b).

"<u>Transfer Agent</u>" means Transfer Online, Inc., the current transfer agent of the Corporation with a mailing address of 512 SE Salmon Street, Portland OR 97214 and a phone number of (503) 227-2950, and any successor transfer agent of the Corporation.

"<u>Underlying Shares</u>" means the shares of Common Stock issued and issuable upon conversion of the Preferred Stock.

<u>Section 2</u>. <u>Designation, Amount and Par Value</u>. The series of preferred stock shall be designated as its Series B Non-Voting Convertible Preferred Stock (the "<u>Preferred Stock</u>") and the number of shares so designated shall be up to 118,651 (which shall be subject to increase only with the consent of a majority of the holders of outstanding shares of Preferred Stock (each a "<u>Holder</u>" and collectively, the "<u>Holders</u>")). Each share of Preferred Stock shall have a par value of $0.001 per share and a stated value equal to $48.00 (the "<u>Stated Value</u>").

<u>Section 3</u>. <u>Dividends.</u> Except for stock dividends or distributions for which adjustments are to be made pursuant to Section 7, Holders shall be entitled to receive, and the Corporation shall pay, dividends on shares of Preferred Stock equal (on an as-if-converted-to-Common-Stock basis, without regard to any conversion limitations herein) to and in the same form as dividends actually paid on shares of the Common Stock when, as and if such dividends are paid on shares of the Common Stock. No other dividends shall be paid on shares of Preferred Stock.

<u>Section 4</u>. <u>Voting Rights</u>. Except as otherwise provided herein or as otherwise required by law, the Preferred Stock shall have no voting rights. However, as long as any shares of Preferred Stock are outstanding, the Corporation shall not, without the affirmative vote of the Holders of a majority of the then outstanding shares of the Preferred Stock, alter or change adversely the powers, preferences or rights given to the Preferred Stock or alter or amend this Certificate of Designation, other than to authorize and issue additional shares of Preferred Stock.

<u>Section 5</u>. <u>Intentionally Omitted</u>.

<u>Section 6</u>. <u>Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Conversions at Option of Holder</u>. Each share of Preferred Stock shall be convertible, at any time and from time to time from and after the Original Issue Date at the option of the Holder thereof, into that number of shares of Common Stock (subject to the limitations set forth in Section 6(d)) determined by dividing the Stated Value of such share of Preferred Stock by the Conversion Price. Holders shall effect conversions by providing the Corporation with the form of conversion notice attached hereto as <u>Annex A</u> (a "<u>Notice of Conversion</u>"). Each Notice of Conversion shall specify the number of shares of Preferred Stock to be converted, the number of shares of Preferred Stock owned prior to the conversion at issue, the number of shares of Preferred Stock owned subsequent to the conversion at issue and the date on which such conversion is to be effected, which date may not be prior to the date the applicable Holder delivers by facsimile or electronic mail, such Notice of Conversion to the Corporation (such date, the "<u>Conversion Date</u>"). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion to the Corporation is deemed delivered hereunder. No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. The calculations and entries set forth in the Notice of Conversion shall control in the absence of manifest or mathematical error. To effect conversions of shares of Preferred Stock, a Holder shall not be required to surrender the certificate(s) representing the shares of Preferred Stock to the Corporation unless all of the shares of Preferred Stock represented thereby are so converted, in which case such Holder shall deliver the certificate representing such shares of Preferred Stock promptly following the Conversion Date at issue. Shares of Preferred Stock converted into Common Stock or redeemed in accordance with the terms hereof shall be canceled and shall not be reissued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Conversion Price</u>. The conversion price for the Preferred Stock shall equal **$1.00**, subject to adjustment herein (the "<u>Conversion Price</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Mechanics of Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Delivery of Conversion Shares Upon Conversion</u>. Not later than five (5) Trading Days after each Conversion Date (the "<u>Share Delivery Date</u>"), the Corporation shall deliver, or cause to be delivered, to the converting Holder (A) the number of Conversion Shares being acquired upon the conversion of the Preferred Stock, and (B) a bank check in the amount of accrued and unpaid dividends, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Failure to Deliver Conversion Shares</u>. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Corporation at any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the Corporation shall promptly return to the Holder any original Preferred Stock certificate delivered to the Corporation and the Holder shall promptly return to the Corporation the Conversion Shares issued to such Holder pursuant to the rescinded Conversion Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Reservation of Shares Issuable Upon Conversion</u>. The Corporation covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of the Preferred Stock as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders of the Preferred Stock), not less than such aggregate number of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking into account the adjustments and restrictions of Section 7) upon the conversion of the then outstanding shares of Preferred Stock. The Corporation covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Fractional Shares</u>. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Preferred Stock. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Corporation shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>Transfer Taxes and Expenses</u>. The issuance of Conversion Shares on conversion of this Preferred Stock shall be made without charge to any Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such Conversion Shares, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such Conversion Shares upon conversion in a name other than that of the Holders of such shares of Preferred Stock and the Corporation shall not be required to issue or deliver such Conversion Shares unless or until the Person or Persons requesting the issuance thereof shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid. The Corporation shall pay all Transfer Agent fees required for same-day processing of any Notice of Conversion and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Conversion Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Issuance Limitations</u>. Notwithstanding anything herein to the contrary, if the Corporation has not obtained Shareholder Approval, then the Corporation may not issue, upon conversion of the Preferred Stock, any shares of Common Stock after the Original Issue Date and Holder may not request any such conversion until Shareholder Approval has been obtained.

<u>Section 7</u>. <u>Certain Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Stock Dividends and Stock Splits</u>. If the Corporation, at any time while this Preferred Stock is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any other Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation upon conversion of, or payment of a dividend on, this Preferred Stock), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Corporation, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Corporation) outstanding immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section 7(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Fundamental Transaction</u>. If, at any time while this Preferred Stock is outstanding, (i) the Corporation, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Corporation with or into another Person, (ii) the Corporation, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Corporation or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding shares of Common Stock, (iv) the Corporation, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Corporation, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a "<u>Fundamental Transaction</u>"), then, upon any subsequent conversion of this Preferred Stock, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 6(d) on the conversion of this Preferred Stock), the number of shares of Common Stock of the successor or acquiring corporation or of the Corporation, if it is the surviving entity, and any additional consideration (the "<u>Alternate Consideration</u>") receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Preferred Stock is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 6(d) on the conversion of this Preferred Stock). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Corporation shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Preferred Stock following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Corporation or surviving entity in such Fundamental Transaction shall file a new Certificate of Designation with the same terms and conditions and issue to the Holders new preferred stock consistent with the foregoing provisions and evidencing the Holders' right to convert such preferred stock into Alternate Consideration. The Corporation shall cause any successor entity in a Fundamental Transaction in which the Corporation is not the survivor entity (the "<u>Successor Entity</u>") to assume in writing all of the obligations of the Corporation under this Certificate of Designation and the other Transaction Documents (as defined in the Purchase Agreement) in accordance with the provisions of this Section 7(b) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Preferred Stock a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Preferred Stock which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Preferred Stock (without regard to any limitations on the conversion of this Preferred Stock) prior to such Fundamental Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of this Preferred Stock immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate of Designation and the other Transaction Documents referring to the "Corporation" shall refer instead to the Successor Entity), and may exercise every right and power of the Corporation and shall assume all of the obligations of the Corporation under this Certificate of Designation and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Corporation herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Calculations</u>. All calculations under this Section 7 shall be made to the nearest cent or the nearest share, as the case may be. For purposes of this Section 7, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Corporation) issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Notice to the Holders Regarding Adjustment to Conversion Price.</u> Whenever the Conversion Price is adjusted pursuant to any provision of this Section 7, the Corporation shall promptly deliver to each Holder by facsimile or email a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

<u>Section 8</u>. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Notices</u>. Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service, addressed to the Corporation, at the address set forth above Attention: Corporate Secretary; email address chris@srax.com, or such other facsimile number or address as the Corporation may specify for such purposes by notice to the Holders delivered in accordance with this Section 8. Any and all notices or other communications or deliveries to be provided by the Corporation hereunder shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number or address of such Holder appearing on the books of the Corporation, or if no such facsimile number or address appears on the books of the Corporation, at the principal place of business of such Holder, as set forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Lost or Mutilated Preferred Stock Certificate</u>. If a Holder's Preferred Stock certificate shall be mutilated, lost, stolen or destroyed, the Corporation shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the shares of Preferred Stock so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such certificate, and of the ownership hereof reasonably satisfactory to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Governing Law</u>. All questions concerning the construction, validity, enforcement and interpretation of this Certificate of Designation shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflict of laws thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Waiver</u>. Any waiver by the Corporation or a Holder of a breach of any provision of this Certificate of Designation shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Certificate of Designation or a waiver by any other Holders. The failure of the Corporation or a Holder to insist upon strict adherence to any term of this Certificate of Designation on one or more occasions shall not be considered a waiver or deprive that party (or any other Holder) of the right thereafter to insist upon strict adherence to that term or any other term of this Certificate of Designation on any other occasion. Any waiver by the Corporation or a Holder must be in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Severability</u>. If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of this Certificate of Designation shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Next Business Day</u>. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Headings</u>. The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designation and shall not be deemed to limit or affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>Status of Converted or Redeemed Preferred Stock</u>. Shares of Preferred Stock may only be issued pursuant to the Purchase Agreement. If any shares of Preferred Stock shall be converted, redeemed or reacquired by the Corporation, such shares shall resume the status of authorized but unissued shares of preferred stock and shall no longer be designated as Series B Non-Voting Convertible Preferred Stock.

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

RESOLVED, FURTHER, that the Chairman, the president or any vice-president, and the secretary or any assistant secretary, of the Corporation be and they hereby are authorized and directed to prepare and file this Certificate of Designation of Preferences, Rights and Limitations in accordance with the foregoing resolution and the provisions of Delaware law.

IN WITNESS WHEREOF, the undersigned have executed this Certificate this 3<sup>rd</sup> day of February, 2023.

---

| | | | |
|:---|:---|:---|:---|
|  | */s/ Christopher Miglino* |  | */s/ Christopher Miglino* |
| Name: | Christopher Miglino | Name: | Christopher Miglino |
| Title: | President | Title: | Secretary |

---

**ANNEX A**

NOTICE OF CONVERSION

(To be Executed by the Registered Holder in order to Convert Shares of Preferred Stock)

The undersigned hereby elects to convert the number of shares of Series B Non-Voting Convertible Preferred Stock indicated below into shares of common stock, par value $0.001 per share (the "<u>Common Stock</u>"), of SRAX, Inc., a Delaware corporation (the "<u>Corporation</u>"), according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a Person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as may be required by the Corporation in accordance with the Purchase Agreement. No fee will be charged to the Holders for any conversion, except for any such transfer taxes.

Conversion calculations:

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date to Effect Conversion: _____________________________________________<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of shares of Preferred Stock owned prior to Conversion: _________________<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of shares of Preferred Stock to be Converted: _________________________<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stated Value of shares of Preferred Stock to be Converted: ______________________<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of shares of Common Stock to be Issued: ____________________________<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Applicable Conversion Price:____________________________________________<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of shares of Preferred Stock to remain subsequent to Conversion: __________<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Address for Delivery: _______________________<br>_______________________<br>_______________________<br>|

---

---

| |
|:---|
| [HOLDER] |
| By: |
| Name: |
| Title: |

---

## Exhibit 10.1

**Exhibit 10.1**

**BILL OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT**

**THIS BILL OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT**, dated as of February 3, 2023 (this "<u>Agreement</u>"), is entered into by and between SRAX, Inc., a Delaware corporation (the "<u>Buyer</u>"), and DNA Holdings, LLC, a limited liability company formed under the laws of the Commonwealth of Puerto Rico (the "<u>Seller</u>").

Reference is made to that certain Asset Purchase Agreement dated as of even date herewith (the "<u>Purchase Agreement</u>"), by and between the Buyer and the Seller. Capitalized terms used and not otherwise defined herein shall have the meanings given to them in the Purchase Agreement.

W I T N E S S E T H:

**WHEREAS**, in connection with the transactions contemplated by the Purchase Agreement, the Seller has agreed to sell, assign, transfer and deliver the Purchased Assets to the Buyer; and

**WHEREAS**, in connection with the transactions contemplated by the Purchase Agreement, the Buyer has agreed to assume the Assumed Liabilities.

**NOW**, **THEREFORE**, in consideration of the above premises and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

Section 1. <u>Assignment and Acceptance of Purchased Assets</u>. Effective as of the date hereof, the Seller hereby transfer, convey, assign and deliver to the Buyer the Purchased Assets in accordance with the terms of the Purchase Agreement.

Section 2. <u>Assignment and Assumption of Assumed Liabilities</u>. The Seller hereby transfers to the Buyer, and the Buyer hereby accepts and assumes from the Seller, the Assumed Liabilities in accordance with the terms of the Purchase Agreement. For the avoidance of doubt, the Buyer does not assume, and the Seller shall retain the Excluded Liabilities.

Section 3. <u>Further Assurances</u>. The Seller hereby agrees to take any and all additional actions and to execute, acknowledge and deliver any and all documents which the Buyer may reasonably request to more effectively consummate the assignments and assumptions contemplated by this Agreement.

Section 4. <u>Amendment and Modification; Waiver</u>. No provision of this Agreement may be waived, amended, supplemented or modified by either party, unless such waiver, amendment, supplement or modification is explicitly set forth in writing and executed by the authorized representative of the party against whom it is sought to enforce such waiver, amendment, supplement or modification. The waiver by any party hereto of a breach of any provisions of this Agreement shall not operate or be construed as a waiver of any other or subsequent breach.

Section 5. <u>No Third Party Beneficiaries</u>. This Agreement is for the sole and exclusive benefit of the parties hereto and their respective successors and permitted assigns and nothing herein is intended or shall be construed to confer upon any person other than the parties hereto and their respective successors and permitted assigns any rights, remedies or claims under, or by any reason of, this Agreement or any term, covenant or condition hereof.

Section 6. <u>GOVERNING LAW</u>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO THE PRINCIPLES OF THE CONFLICTS OF LAWS THEREOF.

Section 7. <u>Headings</u>. The headings of this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

Section 8. <u>Purchase Agreement</u>. This Agreement is subject in all respects to the terms and conditions of the Purchase Agreement. To the extent of any conflict between the terms of the Purchase Agreement, on the one hand, and this Agreement or any other agreement to which the parties hereto are party relating to the assignment of the Purchased Assets or assumption of the Assumed Liabilities, on the other hand, the Purchase Agreement shall govern and control. Nothing contained in this Agreement or in any other agreement to which the parties hereto are party relating to the assignment of the Purchased Assets or assumption of the Assumed Liabilities shall be deemed to supersede any of the covenants, agreements, representations or warranties of the applicable parties contained in the Purchase Agreement.

Section 9. <u>Severability</u>. Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or other provisions of this Agreement in any other jurisdiction.

[remainder of page intentionally blank]

**IN WITNESS WHEREOF**, the parties have executed this Bill of Sale and Assignment and Assumption Agreement as of the date first above written.

---

| | |
|:---|:---|
| **<u>BUYER:</u>** | **<u>BUYER:</u>** |
| **SRAX, INC.** | **SRAX, INC.** |
| By: | */s/ Christopher Miglino* |
| Name: | Christopher Miglino |
| Title: | Chief Executive Officer |
| **<u>SELLER</u>:** | **<u>SELLER</u>:** |
| **DNA HOLDINGS, LLC** | **DNA HOLDINGS, LLC** |
| By: | The Roundtable LLC |
| Its: | Manager |
| By: | */s/ Brock Pierce* |
| Name: | Brock Pierce |
| Title: | Member-Manager |

---

## Exhibit 10.2

**Exhibit 10.2**

**Lock-Up Agreement** 

**February 3, 2023**

Ladies and Gentlemen:

On February 3, 2023 (the "***Effective Date***"), **SRAX, Inc.**, a Delaware corporation ("***SRAX***") entered into an Asset Purchase Agreement (the "***APA***") with DNA Holdings, LLC, a limited liability company formed under the laws of the Commonwealth of Puerto Rico ("***DNA***", together with SRAX, the "***Parties***"). In connection with the transactions contemplated by the Transaction Documents (as defined in the APA), DNA will receive shares of Buyer Common Stock and Buyer Preferred Stock (collectively, the "***Buyer Securities***"). Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the APA.

As a material inducement to the willingness of each of the Parties to enter into the Transaction Documents, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, DNA hereby agrees that it will not, subject to the exceptions set forth in this letter agreement, during the period commencing on the Effective Date and ending on the date that is 540 days after the Effective Time (the "***Restricted Period***"), (a) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Buyer Securities or any securities convertible into or exercisable or exchangeable for Buyer Securities, including without limitation, Buyer Common Stock or such other securities which may be deemed to be beneficially owned by DNA in accordance with the rules and regulations of the SEC and securities of SRAX which may be issued upon exercise of a stock option or warrant (collectively, the "***DNA Shares***"), (b) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the DNA Shares, regardless of whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Buyer Securities or such other securities, in cash or otherwise or (c) make any demand for or exercise any right with respect to the registration of any shares of Buyer Securities or any security convertible into or exercisable or exchangeable for Buyer Common Stock, in each case other than (i) transfers of the DNA Shares as *bona fide* charitable contributions, gifts or donations, (ii) transfers or dispositions of the DNA Shares to any trust for the direct or indirect benefit of DNA, (iii) transfers of the DNA Shares to stockholders, direct or indirect affiliates (within the meaning set forth in Rule 405 under the Securities Act), current or former partners (general or limited), members or managers of DNA, as applicable, or to the estates of any such stockholders, affiliates, partners, members or managers, or to another corporation, partnership, limited liability company or other business entity that controls, is controlled by or is under common control with the DNA; *<u>provided</u>* that, in each case, the transferee agrees in writing to be bound by the terms and conditions of this letter agreement and either DNA or the transferee provides SRAX with a copy of such agreement promptly upon consummation of any such transfer, (iv) transfers pursuant to a bona fide third party tender offer, merger, consolidation or other similar transaction made to all holders of SRAX's capital stock involving a change of control of SRAX, provided that in the event that such tender offer, merger, consolidation or other such transaction is not completed, the DNA Shares shall remain subject to the restrictions contained in this letter agreement, and (v); and *<u>provided</u>*, *<u>further</u>*, that in each case of clauses (i)-(iv), no filing by any party (donor, donee, transferor or transferee) under the Exchange Act or other public announcement shall be required or shall be made voluntarily in connection with such transfer or distribution (other than filings made in respect of involuntary transfers or dispositions or a filing on a Form 5 made after the expiration of the Restricted Period) and any such transfer or distribution shall not involve a disposition for value. For purposes of this letter agreement, "immediate family" shall mean any relationship by blood, marriage or adoption, not more remote than first cousin.

Notwithstanding the restrictions imposed by this letter agreement, DNA may sell in one or a series of open market transactions, one-third of the shares of Buyer Common Stock (including shares of Buyer Common Stock issuable upon conversion of the Buyer Preferred Stock) it received pursuant to the APA outstanding as of the Effective Date: (i) after 180 days, and (ii) after 360 days.

Any attempted transfer in violation of this letter agreement will be of no effect and null and void, regardless of whether the purported transferee has any actual or constructive knowledge of the transfer restrictions set forth in this letter agreement, and will not be recorded on the stock transfer books of SRAX. In order to ensure compliance with the restrictions referred to herein, DNA agrees that SRAX may issue appropriate "stop transfer" certificates or instructions. SRAX may cause the legend set forth below, or a legend substantially equivalent thereto, to be placed upon any certificate(s) or other documents or instruments evidencing ownership of the DNA Shares:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AND MAY ONLY BE TRANSFERRED IN COMPLIANCE WITH A LOCK-UP AGREEMENT, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.

DNA hereby represents and warrants that DNA has full power and authority to enter into this letter agreement. All authority conferred or agreed to be conferred and any obligations of DNA under this letter agreement will be binding upon the successors, assigns, heirs or personal representatives of the DNA.

In the event of a release of any of the DNA Shares from this letter agreement, SRAX will cooperate with DNA to facilitate the timely preparation and delivery of certificates representing the DNA Shares without the restrictive legend above or the withdrawal of any stop transfer instructions.

DNA understands that SRAX is relying upon this letter agreement in proceeding toward consummation of the transactions contemplated by the Transaction Documents. DNA further understands that this letter agreement is irrevocable and is binding upon the DNA, legal representatives, successors and assigns.

This letter agreement and any claim, controversy or dispute arising under or related to this letter agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflict of laws principles thereof.

This letter agreement may be executed by electronic (i.e., PDF) transmission, which is deemed an original.

[*Signature Page Follows*]

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **SRAX, Inc.** | **SRAX, Inc.** |
| By: | */s/ Christopher Miglino* |
| Name: | Christopher Miglino |
| Title: | Chief Executive Officer |
| **DNA Holdings, LLC** | **DNA Holdings, LLC** |
| By: | The Roundtable LLC |
| Its: | Manager |
| By: | */s/ Brock Pierce* |
| Name: | Brock Pierce |
| Title: | Member-Manager |

---

[Signature Page to Lock-up Agreement]

## Exhibit 10.3

**Exhibit 10.3**

**Amendment and WAIVER Agreement**

This AMENDMENT AND WAIVER AGREEMENT (the "<u>Agreement</u>") dated as of February 2, 2023 is entered into by and between SRAX, Inc., a Delaware Corporation (the "<u>Company</u>") and the entities identified on the signature pages hereto (each, a "<u>Holder</u>" and, collectively, the "<u>Holders</u>").

**WHEREAS,** the Company issued that certain Original Issue Discount Senior Secured Convertible Debenture, dated June 30, 2020 (the "<u>Debenture</u>") to ATW MASTER FUND II, L.P ("<u>ATW MASTER</u>").

**WHEREAS**, the Debenture has a maturity date of June 30, 2023;

**WHEREAS**, the Company wishes to amend and restate the definition of "Maturity Date" of the Debenture to June 30, 2024;

**WHEREAS**, the Debenture has a "Conversion Price" of $2.69, subject to adjustment as provided for the in the Debenture;

**WHEREAS**, the Company wishes to amend and restate the definition of "Conversion Price" in Section 4(b) of the Debenture to the Adjusted Price;

**WHEREAS**, on the date hereof, the Company intends to enter into an asset purchase agreement with DNA Holdings, LLC ("<u>DNA</u>"), pursuant to which the Company is purchasing assets of DNA, in exchange for certain consideration (the "<u>Transaction</u>");

**WHEREAS**, the Company believes the Transaction is or may be an Event of Default as defined in Section 8(a)(viii) of the Debenture (the "<u>Debenture Default</u>");

**WHEREAS**, in connection with the Transaction, ATW MASTER wishes to waive Section 8(a)(viii) of the Debenture;

**WHEREAS,** the Company issued that certain Amended and Restated Series A Common Stock Purchase Warrant (the "<u>Series A Warrant</u>") on October 27, 2017 to ATW MASTER;

**WHERAS**, the Series A Warrant has an "Exercise Price" of $3.00, subject to adjustment as provided for the in the Series A Warrant;

**WHEREAS**, the Company wishes to amend and restate the definition of "Exercise Price" in Section 2(b) of the Series A Warrant to the Adjusted Price;

**WHEREAS,** the Company issued that certain Amended and Restated Series B Common Stock Purchase Warrant (the "<u>Series B-1 Warrant</u>") on November 29, 2018 to ATW MASTER;

**WHERAS**, the Series B-1 Warrant has an "Exercise Price" of $3.00, subject to adjustment as provided for the in the Series B Warrant;

**WHEREAS**, the Company wishes to amend and restate the definition of "Exercise Price" in Section 2(b) of the Series B-1 Warrant to the Adjusted Price;

**WHEREAS,** the Company issued that certain Amended and Restated Series B Common Stock Purchase Warrant (the "<u>Series B-2 Warrant</u>") on November 29, 2018 to ATW FUND I, L.P. ("<u>ATW FUND</u>");

**WHERAS**, the Series B-2 Warrant has an "Exercise Price" of $3.00, subject to adjustment as provided for the in the Series B-2 Warrant;

**WHEREAS**, the Company wishes to amend and restate the definition of "Exercise Price" in Section 2(b) of the Series B-2 Warrant to the Adjusted Price;

**WHEREAS,** the Company issued that certain Amended and Restated Common Stock Purchase Warrant (the "<u>Warrant</u>") on June 30, 2020 to ATW MASTER;

**WHERAS**, the Warrant has an "Exercise Price" of $2.50, subject to adjustment as provided for the in the Warrant;

**WHEREAS**, the Company wishes to amend and restate the definition of "Exercise Price" in Section 2(b) of the Warrant to the Adjusted Price;

**WHEREAS**, the Company issued that certain Revolving Note (the "<u>Note</u>") on August 8, 2022 to ATW OPPORTUNITIES MASTER FUND II, LP ("<u>ATW OPPORTUNITIES</u>");

**WHEREAS**, the Note has a "Conversion Price" of $15.00, subject to adjustment as provided for the in the Note;

**WHEREAS**, the Company wishes to amend and restate the definition of "Conversion Price" in Section (a) of the Note to the Adjusted Price;

**WHEREAS**, in connection with the Note, the Company and ATW OPPORTUNITIES entered into that certain Senior Secured Revolving Credit Facility Agreement (the "<u>Credit Agreement</u>") on August 8, 2022;

**WHEREAS**, the Company wishes to amend and restate Section 2.1(d)(i)(2) and Section 2.1(d)(i)(3) of the Credit Agreement;

**WHEREAS**, the Company wishes to include a Section 2.1(d)(i)(4) to the Credit Agreement;

**WHEREAS**, the ATW OPPORTUNITIES wishes to amend and restate Section 1.1(bbbb) of the Credit Agreement;

**WHEREAS**, ATW OPPORTUNITIES wishes to amend and restate Section 2.1(d)(i) of the Credit Agreement;

**WHEREAS**, ATW OPPORTUNITIES wishes to amend and restate Section 5.1 of the Credit Agreement;

**WHEREAS**, the Company believes the Transaction will or may be a breach of the negative covenant set forth in Section 9.3 of the Credit Agreement (the "<u>Credit Default</u>");

**WHEREAS**, in connection with the Transaction, ATW MASTER wishes to waive Section 9.3 of the Credit Agreement; and

**WHEREAS**, on August 8, 2022 the company entered into a registration rights agreement ("<u>Registration Rights Agreement</u>") and the parties desire to terminate such agreement.

**NOW, THEREFORE, IN CONSIDERATION** of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Holder agree as follows:

SECTION 1

<u>Agreement</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **Amendments to Transaction Documents.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The definition of "Maturity Date" set forth in the second paragraph of the first page of the Debenture is hereby amended and restated as follows: "*June 30, 2024 (the "<u>Maturity Date</u>")*". For purposes of clarity, the references to "June 30, 2023" in the bolded title and in the first paragraph of the first page of the Debenture shall also be amended and restated as follows: "*June 30, 2024*"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section 4(b) of the Debenture is hereby amended and restated as follows: *"<u>Conversion Price</u>. The conversion price in effect on any Conversion Date shall be equal to the Adjusted Price (as defined in that certain Waiver and Amendment Agreement dated January _, 2023)**,** subject to adjustment herein (the "<u>Conversion Price</u>")."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section 2(b) of the Series A Warrant is hereby amended and restated as follows: *"<u>Exercise Price</u>. The exercise price per share of Common Stock under this Warrant shall be the Adjusted Price (as defined in that certain Waiver and Amendment Agreement dated January _, 2023)**,** subject to adjustment herein (the "<u>Exercise Price</u>")."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Section 2(b) of the Series B-1 Warrant is hereby amended and restated as follows: *"<u>Exercise Price</u>. The exercise price per share of Common Stock under this Warrant shall be the Adjusted Price (as defined in that certain Waiver and Amendment Agreement dated January _, 2023)**,** subject to adjustment herein (the "<u>Exercise Price</u>")."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Section 2(b) of the Series B-2 Warrant is hereby amended and restated as follows: *"<u>Exercise Price</u>. The exercise price per share of Common Stock under this Warrant shall be the Adjusted Price (as defined in that certain Waiver and Amendment Agreement dated January _, 2023)**,** subject to adjustment herein (the "<u>Exercise Price</u>")."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Section 2(b) of the Warrant is hereby amended and restated as follows: *"<u>Exercise Price</u>. The exercise price per share of Common Stock under this Warrant shall be the Adjusted Price (as defined in that certain Waiver and Amendment Agreement dated January _, 2023)**,** subject to adjustment herein (the "<u>Exercise Price</u>")."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Section (a) of the Note is hereby amended and restated as follows: "*<u>Voluntary Conversion.</u> At any time while this Note is outstanding, the Lender may convert all or any portion of the outstanding principal, accrued and unpaid interest, and any other sums due and payable hereunder or under the Credit Agreement (such total amount, the "**Conversion Amount**") into shares of Common Stock of the Borrower (the "**Conversion Shares**") at price equal to the Adjusted Price (as defined in that certain Waiver and Amendment Agreement dated January _, 2023) per share, subject to adjustment as provided herein (the "**Conversion Price**"). The Lender shall submit a conversion notice (in the form attached hereto as Exhibit A, the "**Conversion Notice**") indicating the Conversion Amount, the number of Conversion Shares issuable upon such conversion, and where the Conversion Shares should be delivered."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(h)* Section (d)(3) of the Note is hereby amended and restated as follows: *If, at any time when any Notes are issued and outstanding, the Borrower issues or sells, or in accordance with this Section (d) hereof is deemed to have issued or sold, any shares of Common Stock for a consideration per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances in connection therewith) less than the lower of (i) $5.00 and (ii) the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common Stock (a "Dilutive Issuance"), then immediately upon the Dilutive Issuance, the Conversion Price will be reduced to the amount of the consideration per share received by the Borrower in such Dilutive Issuance. For purposes of clarity, the foregoing proviso shall not apply to the earlier of: (y) up to 1,500,000 shares of Common Stock (as adjusted for forward and reverse stock splits, recapitalizations or other similar transactions) being issued to officers, directors, consultants or vendors prior to the Revolving Loan Maturity Date, and (z) up to $2,000,000 of shares of Common Stock being issued to officers, directors, consultants or vendors prior to the Revolving Loan Maturity Date, with each such issuance being valued at the product of the number of shares issued and the closing bid price of the Common Stock on each such issuance date.*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* Section 1.1(bbbb) of the Credit Agreement is hereby amended and restated as follows: *"<u>Revolving Loan Commitment</u>" shall mean, on the Effective Date, Five Million Five Hundred Eighty Thousand and No/100 United States Dollars (US$5,580,000.00), as applicable pursuant to <u>Section 2.1(b)</u>; which for the avoidance of doubt shall not include the original issue discount owing in respect of each advance.*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(j)* Section 2.1(d)(i) of the Credit Agreement is hereby amended and restated as follows: "*<u>Revolving Loan Principal Repayment and Interest Payments</u>. The principal balance of all Revolving Loans outstanding from time to time, accrued and unpaid interest thereon, and other fees and charges due hereunder, shall be paid by the Borrower on a monthly basis on the fifteenth day of each month, or such other date as Lender and Borrower may agree upon, commencing on the first such date to occur after the Effective Date (each a "**<u>Payment Date</u>**") until the Obligations have been satisfied in full, as follows:"*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Section 2.1(d)(i)(2) of the Credit Agreement is hereby amended and restated as follows: "*In respect of the fourth Payment Date and the fifth Payment Date, an amount equal to fifteen percent (15%) of the Monthly Collections for the Collections Period preceding the applicable Payment Date. The foregoing interest payments shall be added to the balance of all amounts owed under this Agreement."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Section 2.1(d)(i)(3) of the Credit Agreement is hereby amended and restated as follows: "*In respect of the sixth Payment Date, an amount equal to seven and one half percent (7.5%) of the Monthly Collections for the Collections Period preceding the applicable Payment Date and in respect of each of the seventh and eighth Payment Date, ten percent (10%) of the Monthly Collections for the Collections Period preceding the applicable Payment Date."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Section 2.1(d)(i)(4) is hereby inserted into Section 2.1(d)(i) of the Credit Agreement and shall read as follows: "*In respect of each succeeding Payment Date, an amount equal to the greater of (x) twenty percent (20%) of the Monthly Collections for the Collections Period preceding the applicable Payment Date, and (y) the outstanding principal balance of the Revolving Loans as of such Payment divided by the number of remaining Payment Dates including such Payment Date."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(n)* Section 5.1 of the Credit Agreement is hereby amended and restated as follows: *"5.1 <u>Loan Requests</u>. Subject to <u>Section 2.1(a)</u> and <u>Article 3</u> hereof, the Loans shall be made available to Borrower in accordance with the terms and provisions of this Agreement, up to the then applicable Revolving Loan Availability; <u>provided</u>, <u>however</u>, that, notwithstanding anything contained in this Agreement or any other Loan Documents to the contrary, each Revolving Loan requested by Borrower under this Agreement shall be subject to Lender's approval, which approval shall not be withheld provided the following conditions are met: (i) no Event of Default shall have occurred or be continuing, and other event shall have occurred that, with the passage of time, the giving of notice, or both, would constitute an Event of Default under this Agreement or the other Loan Documents; (ii) the Company's preparation of a Borrowing Base Certificate, showing that there is borrowing availability under the Revolving Loan Availability and pursuant to a calculation of the Borrowing Base Amount; and (iii) the outstanding principal balance pursuant to this Agreement shall be less than $3,000,000. Notwithstanding the foregoing no Revolving Loan shall be in an amount of less than $100,000 and following any request for a Revolving Loan, the Lender shall have seven (7) Business Days to fund the Revolving Loan from the date that all conditions to the making of such Revolving Loan are met."*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Section 12.12 of the Credit Agreement is hereby amended and restated as follows: "*The Borrower shall fail to become current with its filing obligations with the SEC by April 30, 2023 and thereafter a failure by the Borrower to comply with its reporting and filing obligations with the SEC for a period of sixty (60) days beyond the applicable filing deadline, regardless of whether or not Lender shall have provided notice of such failure*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Registration Rights Agreement is hereby terminated as of the effectiveness date as described in Section 1.2 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. **Effectiveness**. This Agreement shall become effective as of the date first mentioned in this Agreement.

SECTION 2

<u>Waiver</u>

2.1 **Waiver.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the Transaction, ATW MASTER hereby agrees to waive its right to exercise its rights and remedies solely with respect to the Debenture Default and such Debenture Default is deemed to have not occurred under the terms of the Debenture; provided that this waiver is solely limited to the Debenture Default and does not waive a ATW MASTER's rights and remedies with respect to any other existing or future Events of Default that may exist or may occur in the future or future obligations that the Company has to ATW MASTER pursuant to the Debenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with the Transaction, ATW OPPORTUNITIES hereby agrees to waive its right to exercise its rights and remedies solely with respect to the Credit Default and such Credit Default is deemed to have not occurred under the terms of the Credit Facility and will not affect the Company's ability to request future drawdowns or increases of the credit facility pursuant to Section 2.1 of the Credit Agreement; provided that this waiver is solely limited to the Credit Default and does not waive a ATW OPPORTUNITIES' rights and remedies with respect to any other existing or future Events of Default that may exist or may occur in the future or future obligations that the Company has to ATW OPPORTUNITIES pursuant to the Credit Facility.

SECTION 3

<u>Representations and Warranties of the Holders</u>

3.1 **Power and Authorization.** Each Holder represents and warrants that this Agreement constitutes such Holder's valid and legally binding obligation, enforceable in accordance with its term. The Purchaser has full power and authority to enter into this Agreement.

SECTION 4

<u>Miscellaneous</u>

4.1 **Governing Law; Consent to Jurisdiction.** This Agreement shall be governed by and construed under the internal laws of the State of New York as applied to agreements among New York residents entered into and to be performed entirely within New York, without reference to principles of conflict of laws or choice of laws. The parties to this Agreement hereby consent to the exclusive jurisdiction and venue of the state and federal courts located in New York, New York, for purposes of any action arising out of or relating to this Agreement.

4.2 **Definitions.** As used in this Agreement, the term "Adjusted Price" shall mean $1.00.

4.3 **Entire Agreement.** This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof.

4.4 **Counterparts.** This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

[*Signature Pages to Follow*]

 

The Undersigned have caused this Agreement to be executed as of the date first written above.

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| | |
|:---|:---|
| **SRAX, INC.** | **SRAX, INC.** |
| Signed: | */s/ Christopher Miglino* |
| By: | Christopher Miglino |
| Its: | Chief Executive Officer |

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**SRAX AMENDMENT AND WAIVER HOLDER SIGNATURE PAGE**

**I HEREBY AGREE TO THE FOREGOING AMENDMENT AND WAIVER**:

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| | |
|:---|:---|
| **ATW FUND I, L.P.** | **ATW FUND I, L.P.** |
| Signed: | */s/ Antonio Ruiz-Gimenez Jr* |
| By: | Antonio Ruiz-Gimenez Jr |
| Its: | Authorized Signatory |
| **ATW MASTER FUND II, L.P.** | **ATW MASTER FUND II, L.P.** |
| Signed: | */s/ Antonio Ruiz-Gimenez Jr* |
| By: | Antonio Ruiz-Gimenez Jr |
| Its: | Authorized Signatory |
| **ATW OPPORTUNITIES MASTER FUND II, LP** | **ATW OPPORTUNITIES MASTER FUND II, LP** |
| Signed: | */s/ Antonio Ruiz-Gimenez Jr* |
| By: | Antonio Ruiz-Gimenez Jr |
| Its: | Authorized Signatory |

---